1. (a) Purpose. Transportation Code, Chapter 456, allows the commission to allocate any funds not obligated in accordance with the terms of §31.11 of this title (relating to Formula Program) on a discretionary basis. This section sets out the policies, procedures, and requirements for that discretionary allocation.

2. (b) Discretionary allocation. The commission will allocate funds to a local governmental entity, except an authority as that term is defined in §31.3 of this title (relating to Definitions), or a private nonprofit organization which has the power to operate or maintain a public transportation system. Funds may be used for:

   1. (1) the same purposes as described in §31.11(b)(2) of this title (relating to Formula Program); and
   2. (2) for 80% of the cost of capital expenditures associated with ridesharing activities.

3. (c) Application. To receive funds under this section, applicants must first submit an application, in the form prescribed by the department, to the director. The application must include:

   1. (1) a description of the project, including estimates of the population that would benefit from the project and the anticipated date of project completion;
   2. (2) a statement of the estimated cost of the project, including estimates of the federally financed portions of the project costs; and

   3. (3) certifications that:

      1. (A) local funds are available for local share requirements if required under §31.11(b)(2) of this title (relating to Formula Program) and subsection (b)(2) of this title and that the proposed project is consistent with comprehensive regional transportation plans (federal approval of a proposed public transportation project shall be accepted as a determination that all federal planning requirements have been met);
      2. (B) federal funds are not available as described under §31.11(b)(2)(C) of this title;
      3. (C) equipment furnished by the applicant in connection with ridesharing activities will be used primarily for commuting purposes;
      4. (D) ridesharing activities will be operated on a nonprofit basis without state subsidies and with accountability in operating the van pool equipment; and
      5. (E) any funding available through the United States Department of Transportation to participate in the capitalized portion of state and locally supported ridesharing activities may be applied for and utilized to supplement the availability of local resources for the recapitalization of van pool equipment.
4. (d) Project evaluation. In evaluating a project under this section, the department shall consider the need for fast, safe, efficient, and economical public transportation and the approval of the federal FTA, or its successor.

Source Note:The provisions of this §31.13 adopted to be effective November 23, 1989, 14 TexReg 5938; amended to be effective January 10, 1992, 17 TexReg 47; amended to be effective March 22, 1996, 21 TexReg 2096; amended to be effective March 26, 1998, 23 TexReg 3044.