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EXHIBIT "D" Eligibility Requirements (080) Applicant Eligibility (081): Only designated State agencies and Indian Tribes may apply directly to FTA for grants. Eligible sub -recipients may include State agencies, local public bodies and agencies thereof, nonprofit organizations, Indian tribes, and operators of public transportation services, including intercity bus service, in rural and small urban areas. Private for-profit operators of transit or paratransit services may participate in the program only through contracts with eligible recipients. Private intercity bus operators may participate as subrecipients or through contracts. Urbanized areas, as defined by the Bureau of the Census, are not eligible. Beneficiary Eligibility (082): The general public, both users and nonusers, and private and public providers of public transportation in nonurbanized areas. Credentials/Documentation (083): The State agency must be designated by the Governor to administer the program. Projects must be included in the State Transportation Improvement Program (STIP) approved by FTA and FHWA. The state and subrecipients must agree to the standard labor protection warranty for the program. Environmental assessments may be required. Compliance with FTA's annual list of Certifications and Assurances is required. Eligible coast must be in accordance with OMB Circular A-87. The state must submit a program of projects listing all subrecipients and projects in accordance with FTA Circular 9040.1 F issued April 4, 2007. FTA annually issues a Federal Register Notice of apportionments, allocations and program information. For fiscal year 07, the publication date was March 23, 2007. Prior year notices can be found on the FTA website at www.fta.dot.gov or by contacting the appropriate FTA regional office to obtain copies or publication dates. OMB Circular No. A-87 applies to this program. Formula and Matching Requirements (101): Statutory Formula: Title 49, Part 18. Matching Requirements: Program funds are apportioned annually to the states according to a statutory formula. Twenty percent of the funds are allocated by the ratio of nonurbanized land area of each State to the nonurbanized land area of all the States with no State receiving more than five percent of these funds. Eighty percent are allocated by the ratio of nonurbainzed population of each State to the nonurbanized population of all of the states. In addition to the funds made available to States under section 5311, approximately 16 percent of the funds authorized for the new section 5340 Growing States and High Density States formula factors will be apportioned to States for use in nonurbanized areas. Rural Transit Assistance Program (RTAP) is funded as a two percent takedown from the amount authorized and appropriated for Section 5311 and can be used for technical assistance, training. Research and related support activities. From the amounts made available for RTAP, up to 15 percent may be used by the Secretary to carry -our projects of f national scope with the remaining balance to the states. Funds are allocated annually based on an administrative formula that provides a base amount to each state and allocates the balance according to the nonurbanized area population. The maximum Federal share eligible capital and project administration costs is 80 percent, except for three categories of projects that can be funded at 90 percent share: projects designed specifically to increase the accessibility of public transportation to bicycles and vehicle related equipment required to comply with the ADA or the Clean Air Act. The maximum FTA share for operating assistance is 50 percent of the net operating deficit. Other Federal funds may be used for half of the local match requirement. Income from purchase of service contracts with human service agencies may be used for the entire local share for operating assistance. There is no matching requirement for RTAP or for state administration. This program has MOE requirements, see funding agency for further details STATE RESOURCES State Agency Compliance Requirements Catalog of State Assistance (Number & Title) Amount 71 Page 2 of 3