1. (a) Purpose. Title 49 U.S.C. §5339 authorizes the Secretary of the U.S. DOT to make grants for bus and bus facilities.
2. (b) Eligible recipients. Section 5339 funds are available to states and local public entities.

3. (c) Department role. The department acts as the designated recipient for §5339 grants to §5307 transit agencies in urbanized areas with less than 200,000 population and §5311 rural transit agencies. As the administering agency, the department will:

   1. (1) allocate the available program funds so that each eligible subrecipient will receive a proportional share of available funding based on the remaining useful life of its public transportation fleet and the cost of replacing that fleet using the department's information system containing transit fleet data;
   2. (2) develop application materials and disseminate information to eligible subrecipients;
   3. (3) prepare the state's funding application and submit the application to the FTA for approval;
   4. (4) negotiate and execute contracts with subrecipients;
   5. (5) prepare requests for federal reimbursement and process payment requests from subrecipients;
   6. (6) monitor and evaluate the progress of local projects, including compliance with federal regulations; and
   7. (7) provide technical assistance to subrecipients as necessary.
4. (d) Eligible assistance categories. Eligible projects are those listed in FTA Circular 9300.1B or its latest version. While fleet condition will determine each agency's allocation, §5339 funds can be used for any eligible activity in FTA Circular 9300.1B or its latest version.
5. (e) Link to asset management plan. At such time as the department implements the requirement of a transit asset management plan, subrecipient projects must be linked to the asset management plan required by §31.51 of this chapter (relating to Asset Management) and 49 U.S.C. §5326.

6. (f) Reimbursement rates. For reimbursement:

   1. (1) federal funds may be used to defray up to 80 percent of the cost of eligible capital expenditures;
   2. (2) the federal share may increase to up to 85 percent of the net project cost for a project that involves acquiring vehicles for the purpose of complying with the Americans with Disabilities Act or the Clean Air Act; and
   3. (3) the federal share may increase to up to 90 percent for incremental costs related to compliance with the Clean Air Act in areas of air quality non-attainment or with the Americans with Disabilities Act.

7. (g) Local share requirements. The non-federal share may be provided by:

   1. (1) cash from state or local governments;
   2. (2) cash from non-government sources other than revenues from providing public transportation services;
   3. (3) revenues from the sale of advertising and concessions;
   4. (4) an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital;
   5. (5) service agreements with a state, local, or private social service organization; or
   6. (6) transportation development credits.

Source Note:The provisions of this §31.30 adopted to be effective November 21, 2013, 38 TexReg 8253.