[Federal Register Volume 88, Number 89 (Tuesday, May 9, 2023)]
[Notices]
[Pages 29964-29972]
[FR Doc No: 2023-09863]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Notice of Funding Opportunity for Interstate Rail Compacts

AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).

ACTION: Notice of funding opportunity (NOFO or notice).

-----------------------------------------------------------------------

SUMMARY: This notice details the application requirements and
procedures to obtain grant funding for eligible projects under the
Interstate Rail Compacts Grant Program. The opportunities described in
this notice are made available under Assistance Listings Number 20.328.

DATES: Applications for funding under this solicitation are due no
later than 5 p.m. ET, July 10, 2023. Applications that are incomplete
or received after 5 p.m. ET on July 10, 2023 will not be considered for
funding. See Section D of this notice for additional information on the
application process.

ADDRESSES: Applications must be submitted via www.Grants.gov. Only
applicants who comply with all submission requirements described in
this notice and submit applications through www.Grants.gov will be
eligible for award. For any supporting application materials that an
applicant is unable to submit via www.Grants.gov, an applicant may
submit an original and two (2) copies to Mr. Marc Dixon, Office of Rail
Program Development, Federal Railroad Administration, 1200 New Jersey
Avenue SE, Mail Stop 20, Washington, DC 20590. However, due to delays
caused by enhanced screening of mail delivered via the U.S. Postal
Service, applicants are advised to use other means of conveyance (such
as courier service) to assure timely receipt of materials before the
application deadline.

FOR FURTHER INFORMATION CONTACT: For further project or program-related
information in this notice, please contact the FRA NOFO Support program
staff via email at [email protected]. If additional assistance
is needed you may contact Mr. Marc Dixon, Office of Rail Program
Development, Federal Railroad Administration; email:
[email protected]; phone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    Notice to applicants: FRA recommends that applicants read this
notice in its entirety prior to preparing application materials.
Definitions of key terms used throughout the NOFO are provided in
Section A.2. These key terms are capitalized throughout the NOFO. There
are several administrative prerequisites and specific eligibility
requirements described herein with which applicants must comply.
Additionally, applicants should note that the required Project
Narrative component of the application package may not exceed 15 pages
in length.

Table of Contents

A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration Information
G. Federal Awarding Agency Contacts
H. Other Information

A. Program Description

1. Overview

    The Interstate Rail Compacts grant program (Program) is a new
competitive program that will provide financial assistance to entities
implementing Interstate Rail Compacts pursuant to section 410 of the
Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24101). The
purpose of the Program is to improve, promote, and develop intercity
passenger rail service, including activities related to the financing
of such service, and to encourage multi-state grant applications.
Grants under the Program are authorized for costs of administration;
systems planning, including studying the impacts on freight rail
operations and ridership; promotion of intercity passenger rail
operation; preparation of applications for competitive Federal grant
programs; and operations coordination.
    The Program is authorized in section 22306 of the Infrastructure
Investment and Jobs Act, 2021, Div B, Tit. II, Public Law 117-58
(IIJA); codified at 49 U.S.C. 22910. This NOFO is funded by the
advanced appropriations provided under Division J of IIJA. The
opportunity described in this NOFO is made available under Assistance
Listings Number 20.328, ``Interstate Rail Compacts.''
    In August 2022, FRA published a Request for Information (RFI) in
the Federal Register to solicit input from stakeholders about
implementing the Program (Docket No. FRA-2022-0064). FRA received nine
comments in response to the RFI. FRA considered the comments received
in preparing this NOFO. Specifically, FRA incorporated feedback from
commenters in providing examples of eligible activities. In addition,
the RFI solicited input from stakeholders about technical support or
other types of assistance FRA may be able to offer to States interested
in establishing IRCs. FRA is continuing to review this feedback as it
considers how to provide technical support for such endeavors.
    While the discretionary grant awards funded through the Program
will not directly fund rail capital projects, the activities supported
by the Program will help prepare entities implementing Interstate Rail
Compacts to develop rail capital projects that advance safety, economic
strength and global competitiveness, equity, climate and
sustainability, and transformation, consistent with the U.S. Department
of Transportation's (DOT) strategic goals.\1\
---------------------------------------------------------------------------

    \1\ DOT Strategic Goals are identified in the DOT Strategic Plan
FY 2022-2026 (March 2022) at https://www.transportation.gov/sites/dot.gov/files/2022-04/US_DOT_FY2022-26_Strategic_Plan.pdf.
---------------------------------------------------------------------------

    Section E of this NOFO, which outlines the grant selection
criteria, describes the process for selecting grant projects that
further these goals. Section F.3 describes progress and performance
reporting requirements for selected grant projects. This NOFO uses the
term project to describe the set of activities proposed for funding in
the application.

2. Definitions of Key Terms

    Terms defined in this section are capitalized throughout this NOFO.
    a. ``Intercity Rail Passenger Transportation'' means rail passenger
transportation, except commuter rail passenger transportation. See 49
U.S.C. 22901(3). In this notice, ``Intercity Passenger Rail Service''
and ``Intercity Passenger Rail Transportation'' are equivalent terms to
``Intercity Rail Passenger Transportation.''
    b. ``Interstate Rail Compact'' for the purposes of this program,
means legislatively enacted agreement or compact that establishes a
formal, legally binding relationship between two or more States to
prepare for and provide Intercity Passenger Rail Service.

B. Federal Award Information

1. Available Award Amount

    The total funding available for awards under this NOFO is
$5,815,800. Should additional funds become available after the release
of this NOFO, FRA may elect to award such additional funds to
applications received under this NOFO.

2. Award Size

    The maximum award for each railroad Interstate Rail Compact grant
will be capped at $1,000,000 per year, and subsequent funding
opportunities will be made available in future years. FRA anticipates
making multiple awards with the available funding but may not award
grants under this program for more than 10 Interstate Rail Compacts in
any fiscal year. FRA may not be able to award grants to all eligible
applications even if they meet or exceed the stated evaluation criteria
(see Section E, Application Review Information). Projects may require
more funding than is available.

3. Award Type

    FRA will make awards for projects selected under this notice
through grant agreements and/or cooperative agreements. Grant
agreements are used when FRA does not expect to have substantial
Federal involvement in carrying out the funded activity. Cooperative
agreements allow for substantial Federal involvement in carrying out
the agreed upon investment, including technical assistance, review of
interim work products, and increased program oversight. The funding
provided under this NOFO will be made available to grant recipients on
a reimbursable basis. Applicants must certify that their expenditures
are allowable, allocable, reasonable, and necessary to the approved
project before seeking reimbursement from FRA. Additionally, the grant
recipient is expected to expend matching funds at the required
percentage concurrent with Federal funds throughout the life of the
project. See an example of standard terms and conditions for FRA grant
awards at: https://www.fra.dot.gov/eLib/Details/L19057. This template
is subject to revision.

4. Concurrent Applications

    DOT and FRA may be concurrently soliciting applications for several
financial assistance programs. Applicants may submit applications
requesting funding for a particular project to one or more of these
programs. In the application for funding under this NOFO, applicants
must indicate the other programs and NOFOs to which they submitted or
plan to submit an application for funding for the entire project or
certain project components, as well as highlight new or revised
information in the application responsive to this NOFO that differs
from the previously submitted application(s). In addition, applicants
should identify, to the extent possible, any anticipated applications
for future rounds of FRA financial assistance for the project or
project components.

C. Eligibility Information

    This section of the notice explains applicant eligibility, cost
sharing and matching requirements, and grant project eligibility.
Applications that do not meet the requirements in this section will be
ineligible for funding. Instructions for submitting eligibility
information to FRA are detailed in Section D of this NOFO.

1. Eligible Applicants

    Entities implementing Interstate Rail Compacts pursuant to section
410 of the Amtrak Reform and Accountability Reform Act of 1997 (49
U.S.C. 24101 note) are eligible applicants under this notice. Under
section 410, Congress granted advance consent to States to enter into
Interstate Rail Compacts in order to promote intercity passenger rail
service. Entities implementing Interstate Rail Compacts means an
existing entity, such as a commission, that has been established by
member states to implement the Interstate Rail Compact.
    Applications must identify an eligible applicant as the lead
applicant. The lead applicant serves as the primary point of contact
for the application, and if selected, as the grant recipient. Eligible
applicants may reference entities that are not eligible applicants in
an application as a project partner.

2. Cost Sharing or Matching

    The Federal share of total costs for Interstate Rail Compacts
projects funded under this notice will not exceed 50 percent, though
FRA will provide selection preference to applications where the
proposed Federal share of eligible expenses under the grant is less
than 50 percent. The estimated expenses must be based on the best
available information and supported within the application.
    The minimum 50 percent non-Federal match for Interstate Rail
Compacts-funded projects may be composed of public sector (e.g., state
or local) and/or private sector funding. FRA will not consider any
Federal financial assistance \2\ nor any non-Federal funds already
expended (or otherwise encumbered) toward the matching requirement,
unless compliant with 2 CFR part 200. In-kind contributions, including
the donation of services, materials, and equipment, may be credited as
a project cost, in a uniform manner consistent with 2 CFR 200.306.
---------------------------------------------------------------------------

    \2\ See Section D(2)(a)(iii) for supporting information required
to demonstrate eligibility of Federal funds for use as match.
---------------------------------------------------------------------------

    Before applying, applicants should carefully review the principles
for cost sharing or matching in 2 CFR 200.306. See Section D(2)(a)(iii)
for required application information on non-Federal match and Section E
for further discussion of FRA's consideration of matching funds in the
review and selection process. FRA will approve pre-award costs
consistent with 2 CFR 200.458, as applicable. See Section D(6).
    Cost sharing or matching may be used only for authorized Federal
award purposes.

3. Other

Project Eligibility
    Eligible expenses must be related to intercity passenger rail
service to be operated by Amtrak. IRC projects consisting of the
following activities are eligible for funding under 49 U.S.C. 22910 and
this NOFO.
    a. Costs of Administration, which include staffing costs for
administrative, professional, or technical staff, or contractors
serving administrative functions or providing technical oversight.
Costs of administration also include the cost of activities or work
products that facilitate Interstate Rail Compacts carrying out their
duties effectively and timely, such as information technology,
accounting, human resources, and procurement.
    b. Systems Planning, consistent with FRA's Guidance on Development
and Implementation of Railroad Capital Projects (January 11, 2023), is
a high-level planning process that considers creating new
transportation services as well as enhancing existing transportation
systems. This planning process promotes a safe, efficient, and
comprehensive rail system within the multi-modal national
transportation system. Systems planning examines broad needs,
challenges, and opportunities that can be addressed with a
transportation-related solution, including capital projects.
Comprehensive systems planning for a regional passenger rail network
considers links with other transportation modes for seamless,
integrated transportation to carry

travelers from origin to destination within and between megaregions.
    c. Promotion of intercity passenger rail operation, including
marketing and advertising intercity passenger rail services.
Promotional activities include website development, social media
management, print materials, direct advertising, collecting customer
feedback, and stakeholder outreach.
    d. Preparation of applications for competitive federal grant
programs, including technical staff or contractor support to prepare
applications and documentation associated with preparing an application
for financial assistance, such as preparing operating plans, funding
plans, benefit-cost analysis, and any other documentation that is
required to be provided as part of an application for a federal grant.
    e. Operations Coordination, including coordinating interstate
passenger rail services among states and with shared freight
operations. Examples include, syncing schedules to facilitate better
connections between overlapping services, identifying opportunities for
creating operational efficiencies through optimizing the use of shared
Amtrak resources, coordinating corridor utilization by other
stakeholders such as freight rail, right of way coordination, shared
maintenance, and joint procurement of services or equipment.

D. Application and Submission Information

    Required documents for the application are outlined in the
following paragraphs. Applicants must complete and submit all
components of the application. See Section D(2) for the application
checklist. FRA welcomes the submission of additional relevant
supporting documentation, such as planning, engineering and design
documentation, and letters of support from partnering organizations,
all of which will not count against the Project Narrative 15-page
limit.

1. Address To Request Application Package

    Applicants may access the application through www.grants.gov.
Applicants must submit all application materials in their entirety
through www.Grants.gov no later than 5 p.m. ET, on July 10, 2023. FRA
reserves the right to modify this deadline. General information for
submitting applications through Grants.gov can be found at: https://www.fra.dot.gov/Page/P0270. FRA is committed to ensuring that
information is available in appropriate alternative formats to meet the
requirements of persons who have a disability. If you require an
alternative version of files provided, please contact Laura Mahoney,
Office of the Chief Financial Officer, Federal Railroad Administration,
1200 New Jersey Avenue SE, Washington, DC 20590; email:
[email protected]; phone:<PHONE_NUMBER>.

2. Content and Form of Application Submission

    FRA strongly advises applicants to read this section carefully.
Applicants must submit all required information and components of the
application package to be considered for funding.
    Project budgets should show how different funding sources will
share in each activity and present those data in dollars and
percentages. The budget should identify other Federal funds the
applicant is applying for or has been awarded, if any, that the
applicant intends to use. Funding sources should be grouped into three
categories: non-Federal, funding requested through the IRC program, and
other Federal with specific amounts from each funding source. The
Department may share application information within the Department or
with other Federal agencies if the Department determines that sharing
is relevant to the respective program's objectives. Required documents
for an application package are outlined in the checklist below.

i. Project Narrative (see D.2.a)
ii. Statement of Work (see D.2.b.i)
iii. SF424--Application for Federal Assistance
iv. Either: SF 424A--Budget Information for Non-Construction
v. Either: SF 424B--Assurances for Non-Construction projects
vi. FRA's Additional Assurances and Certifications
vii. SF LLL--Disclosure of Lobbying Activities
a. Project Narrative
    This section describes the minimum content required in the Project
Narrative of the grant application. The Project Narrative must follow
the basic outline below to address the program requirements and assist
evaluators in locating relevant information.

------------------------------------------------------------------------

------------------------------------------------------------------------
I. Cover Page.............................  See D.2.a.i.
II. Project Summary.......................  See D.2.a.ii.
III. Project Funding......................  See D.2.a.iii.
IV. Applicant Eligibility.................  See D.2.a.iv.
V. Project Eligibility....................  See D.2.a.v.
VI. Detailed Project Description..........  See D.2.a.vi.
VII. Project Location.....................  See D.2.a.vii.
VIII. Evaluation and Selection Criteria     See D.2.a.viii.
 and DOT Strategic Goals.
IX. Project Implementation and Management.  See D.2.a.ix.
------------------------------------------------------------------------

    The above content must be provided in a narrative statement
submitted by the applicant. The Project Narrative may not exceed 15
pages in length (excluding cover pages, table of contents, and
supporting documentation). FRA will not review or consider Project
Narratives beyond the 15-page limitation. If possible, applicants
should submit supporting documents via website links rather than hard
copies. If supporting documents are submitted, applicants must clearly
identify the page number(s) of the relevant portion in the Project
Narrative supporting documentation. The Project Narrative must adhere
to the following outline.
    i. Cover Page: Include a cover page that lists the following
elements in a table:

------------------------------------------------------------------------

------------------------------------------------------------------------
Project Title
Applicant
Amount of Federal Funding Requested in this  $.
 Application.
Proposed Non-Federal Match.................  $.
Was a Federal grant application previously   Yes/No.
 submitted for this project?
If yes, state the name of the Federal grant  Federal Grant Program:
 program and title of the activities in the  Activity Title:
 previous application.

City(ies), State(s) where the activities
 are located.
Has the applicant engaged in any prior       Yes/No.
 corridor or service planning activities     (If yes, please specify).
 such as: Service Development Plans, State
 rail plans, etc.?
------------------------------------------------------------------------

    ii. Project Summary: Provide a brief 4-6 sentence summary of the
project proposed under the IRC grant and what that project will entail.
Include challenges the proposed project aims to address and summarize
the intended outcomes and anticipated benefits that will result from
the proposed project.
    iii. Project Funding: Indicate in table format the amount of
Federal funding requested, the proposed non-Federal match, identifying
contributions from the private sector if applicable, and total project
cost. Describe the non-Federal funding arrangement, including multiple
sources of non-Federal funding if applicable. Include funding
commitment letters outlining funding agreements, as attachments or in
an appendix. If Federal funding is proposed as match, provide the
applicant's determination of eligibility for such use and the legal
basis for that determination. Identify any specific project components
that the applicant proposes for partial project funding. Identify any
previously incurred costs, as well as other sources of Federal funds
committed to the project and any pending Federal requests. If the
requested Federal funding under this NOFO or other programs must be
obligated or spent by a certain date due to dependencies or
relationships with other Federal or non-Federal funding sources,
related projects, law, or other factors. Finally, if Federal funding
for the project has previously been sought, and if applicable, explain
how the new scope proposed to be funded under this NOFO relates to the
previous scope. If applicable, provide the description and estimated
value of any proposed in-kind contributions, and demonstrate how the
in-kind contributions meet the requirements in 2 CFR 200.306.
    Example Project Funding Table:

----------------------------------------------------------------------------------------------------------------
                                          Task name/project                                Percentage of total
                Task #                        component                   Cost                     cost
----------------------------------------------------------------------------------------------------------------
1.
----------------------------------------------------------------------------------------------------------------
2.
----------------------------------------------------------------------------------------------------------------
Total Activity Cost.
----------------------------------------------------------------------------------------------------------------
Federal Funds Received from Previous Grant.
----------------------------------------------------------------------------------------------------------------
Federal Funding Under this NOFO Request.
----------------------------------------------------------------------------------------------------------------
Non-Federal Funding/Match.                                      Cash:
                                                                In-Kind:...............
----------------------------------------------------------------------------------------------------------------
Portion of Non-Federal Funding from the Private Sector.
----------------------------------------------------------------------------------------------------------------
Portion of Total Activity Costs Spent in a Rural Area.
----------------------------------------------------------------------------------------------------------------
Pending Federal Funding Requests.
----------------------------------------------------------------------------------------------------------------

    iv. Applicant Eligibility: Explain how the applicant meets the
applicant eligibility as outlined in Section C of this notice. The
explanation must include citations to the applicable enabling
legislation.
    v. Project Eligibility: Identify which project eligibility category
or categories the project is eligible under in Section C(3) of this
notice, and explain how the project meets the project eligibility
criteria. Describe how the eligible expenses of the project are related
to intercity passenger rail service to be operated by Amtrak and
provide any supporting documentation.
    vi. Detailed Project Description: Include a detailed project
description that expands upon the brief project summary. This detailed
description should provide, at a minimum, background on the challenges
the project aims to support; the expected users and beneficiaries of
the project, including all railroad operators and states; the specific
components and elements of the project; and any other information the
applicant deems necessary to justify the proposed project. For all
projects, applicants must provide information about proposed
performance measures, as discussed in Section F(3)(c) and required in 2
CFR 200.301.
    vii. Project Location: If applicable, include geospatial
information, such as latitude and longitude, of the project's location
that includes the Congressional districts in which the project will
take place, if applicable.
    viii. Evaluation and Selection Criteria and DOT Strategic Goals:
Include a thorough discussion of how the proposed project meets all the
evaluation criteria and selection criteria and DOT Strategic Goals, as
outlined in Section E of this notice. If an application does not
sufficiently address the evaluation and selection criteria and DOT
Strategic Goals, it is unlikely to be a competitive application.
    ix. Project Implementation and Management: Describe proposed
project implementation and project management arrangements. Include
descriptions of the expected arrangements for contracting, contract
oversight and control, change-order management, risk management, and
conformance to Federal requirements for progress reporting (see https://www.fra.dot.gov/Page/P0274). Describe past experience in managing and
overseeing similar grant awards.
    b. Additional Application Elements
    Applicants must submit:
    i. A Statement of Work (SOW) addressing the scope, schedule, and
budget for the proposed project if it were selected for award. The SOW
must contain sufficient detail so FRA and the applicant can understand
the expected outcomes of the proposed work to be performed and monitor
progress toward completing project tasks and deliverables during a
prospective grant's period of performance. Applicants must use FRA's
standard SOW, schedule, and budget templates to be considered for

award. The templates are located at https://www.fra.dot.gov/Page/P0325.
    ii. SF 424--Application for Federal Assistance;
    iii. SF 424A--Budget Information for Non-Construction or SF 424C--
Budget Information for Construction;
    iv. SF 424B--Assurances for Non-Construction or SF 424D--Assurances
for Construction;
    v. FRA's Additional Assurances and Certifications; and
    vi. SF LLL--Disclosure of Lobbying Activities.
    vii. A statement that the lead applicant has a system for procuring
property and services under a Federal award under this NOFO that
supports the provisions in 2 CFR 200 Subpart D--Procurement Standards
at 2 CFR 200.317-326 and 2 CFR 1201.317.
    viii. A statement indicating whether the applicant or any of its
principals:
    (A) is presently suspended, debarred, voluntarily excluded, or
disqualified;
    (B) has been convicted within the preceding three years of any of
the offenses listed in 2 CFR 180.800(a); or had a civil judgment
rendered against the organization or the individual for one of those
offenses within that time period;
    (C) is presently indicted for, or otherwise criminally or civilly
charged by a governmental entity (Federal, state or local) with,
commission of any of the offenses listed in 2 CFR 180.800(a); or,
    (D) has had one or more public transactions (Federal, state, or
local) terminated within the preceding three years for cause or default
(including material failure to comply).
    ix. FRA F 251, Applicant Financial Capability Questionnaire Forms
needed for the electronic application process are at www.Grants.gov.

3. Unique Entity Identifier, and System for Award Management (SAM)

    To apply for funding through Grants.gov, applicants must be
properly registered in SAM before submitting an application, provide a
valid unique entity identifier, and continue to maintain an active SAM
registration all as described in detail below. Complete instructions on
how to register and submit an application can be found at
www.Grants.gov. Registering with Grants.gov is a one-time process;
however, it can take up to several weeks for first-time registrants to
receive confirmation and a user password. FRA recommends that
applicants start the registration process as early as possible to
prevent delays that may preclude submitting an application package by
the application deadline. Applications will not be accepted after the
due date. Delayed registration is not an acceptable justification for
an application extension. FRA may not make a grant award to an
applicant until the applicant has complied with all applicable SAM
requirements. If an applicant has not fully complied with these
requirements by the time the Federal awarding agency is ready to make a
Federal award, the Federal awarding agency may determine that the
applicant is not qualified to receive a Federal award and use that
determination as a basis for making a Federal award to another
applicant. Late applications that are the result of a failure to
register or comply with Grants.gov applicant requirements in a timely
manner will not be considered. If an applicant has not fully complied
with the requirements by the submission deadline, the application will
not be considered. To submit an application through Grants.gov,
applicants must:
a. Register With the SAM at www.SAM.gov
    All applicants for Federal financial assistance must maintain
current registrations in the SAM database. An applicant must be
registered in SAM to successfully register in Grants.gov. The SAM
database is the repository for standard information about Federal
financial assistance applicants, recipients, and subrecipients.
Organizations that have previously submitted applications via
Grants.gov are already registered with SAM, as it is a requirement for
Grants.gov registration. Please note, however, that applicants must
update or renew their SAM registration at least once per year to
maintain an active status. Therefore, it is critical to check
registration status well in advance of the application deadline. If an
applicant is selected for an award, the applicant must maintain an
active SAM registration with current information throughout the period
of the award, including information on a recipient's immediate and
highest level owner and subsidiaries, as well as on all predecessors
that have been awarded a Federal contract or grant within the last
three years, if applicable. Information about SAM registration
procedures is available at www.sam.gov.
b. Obtain a Unique Entity Identifier
    On April 4, 2022, the federal government discontinued using DUNS
numbers. The DUNS Number was replaced by a new, non-proprietary
identifier that is provided by the System for Award Management
(SAM.gov). This new identifier is called the Unique Entity Identifier
(UEI), or the Entity ID. To find or request a Unique Entity Identifier,
please visit www.sam.gov.
c. Create a Grants.gov Username and Password
    Applicants must complete an Authorized Organization Representative
(AOR) profile on www.Grants.gov and create a username and password.
Applicants must use the organization's UEI to complete this step.
Additional information about the registration process is available at:
https://www.grants.gov/web/grants/applicants/organization-registration.html.
d. Acquire Authorization for Your AOR From the E-Business Point of
Contact (E-Biz POC)
    The E-Biz POC at the applicant's organization must respond to the
registration email from Grants.gov and login at www.Grants.gov to
authorize the applicant as the AOR. Please note there can be more than
one AOR for an organization.
e. Submit an Application Addressing All Requirements Outlined in This
NOFO
    If an applicant experiences difficulties at any point during this
process, please call the Grants.gov Customer Center Hotline at 1-800-
518-4726, 24 hours a day, 7 days a week (closed on Federal holidays).
For information and instructions on each of these processes, please see
instructions at: http://www.grants.gov/web/grants/applicants/apply-for-grants.html.

4. Submission Dates and Times

    Applicants must submit complete applications to www.Grants.gov no
later than 5 p.m. ET, July 10, 2023. In order to apply for funding
under this announcement, all applicants are expected to be registered
as an organization with Grants.gov. FRA reviews www.Grants.gov
information on the dates and times of applications submitted to
determine timeliness of submissions. Late applications will be neither
reviewed nor considered. Applicants are strongly encouraged to apply
early to ensure all materials are received before this deadline.
    To ensure a fair competition of limited discretionary funds, the
following conditions are not valid reasons to permit late submissions:
(1) failure to complete the Grants.gov registration process before the
deadline; (2) failure to follow Grants.gov instructions on how to
register and apply as posted on its website; (3) failure to follow all
instructions in this NOFO; and (4) technical issues experienced with
the applicant's

computer or information technology environment.

5. Intergovernmental Review

    If Intergovernmental Review is required for this program,
applicants must contact their State Single Point of Contact to comply
with their State's process under Executive Order 12372.

6. Funding Restrictions

    FRA is prohibited under 49 U.S.C. 22905(f) from providing
Interstate Rail Compacts grants for commuter rail passenger
transportation (as defined in 49 U.S.C. 24102(3)).
    Consistent with 2 CFR 200.458, as applicable, FRA will only approve
pre-award costs if such costs are incurred pursuant to the negotiation
and in anticipation of the grant agreement and if such costs are
necessary for efficient and timely performance of the scope of work.
Under 2 CFR 200.458, grant recipients must seek written approval from
FRA for pre-award activities to be eligible for reimbursement under the
grant. Activities initiated prior to the execution of a grant or
without FRA's written approval may be ineligible for reimbursement or
matching contribution. Cost sharing or matching may be used only for
authorized Federal award purposes.

7. Other Submission Requirements

    For any supporting application materials that an applicant cannot
submit via Grants.gov, such as oversized engineering drawings, an
applicant may submit an original and two (2) copies to Mr. Marc Dixon,
Office of Rail Program Development, Federal Railroad Administration,
1200 New Jersey Avenue SE, Mail Stop 20, Washington, DC 20590. Due to
delays caused by enhanced screening of mail delivered via the U.S.
Postal Service, FRA advises applicants to use other means of conveyance
(such as courier service) to assure timely receipt of materials before
the application deadline. Additionally, if documents can be obtained
online, providing instructions to FRA on how to access files on a
referenced website may also be sufficient.
    Applicants should use generally accepted formats such as .pdf,
.doc, .docx, .xls, .xlsx and .ppt, when uploading attachments. While
applicants may embed picture files, such as .jpg, .gif, and .bmp, in
document files, applicants should not submit attachments in these
formats. Additionally, the following formats will not be accepted:
.com, .bat, .exe, .vbs, .cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora,
.sys, and .zip.
    If an applicant experiences difficulties at any point during this
process, please call the Grants.gov Customer Center Hotline at 1-800-
518-4726, 24 hours a day, 7 days a week (closed on Federal holidays).
For information and instructions on each of these processes, please see
instructions at: http://www.grants.gov/web/grants/applicants/apply-for-grants.html.

E. Application Review Information

1. Criteria

a. Eligibility, Completeness and Applicant Risk Review
    FRA will first screen each application for applicant and project
eligibility (eligibility requirements are outlined in Section C of this
notice), completeness (application documentation and submission
requirements are outlined in Section D of this notice), applicant risk
and the minimum match.
    FRA will then consider applicant risk, including the applicant's
past performance in developing and delivering other Federal grants and
previous financial contributions, and if applicable, previous
competitive grant technical evaluation ratings that the proposed
project received under previous competitive grant programs administered
by DOT.
b. Evaluation Criteria
    FRA will evaluate all eligible and complete applications using the
evaluation criteria outlined in this section to determine project
benefits and technical merit.
i. Project Benefits
    FRA will evaluate the summary of benefits provided in response to
Section D(2)(a)(ii) including--
    (A) Effects on system and service performance along an interstate
passenger rail route;
    (B) Effects on the promotion of intercity passenger rail service;
    (C) Efficiencies from improved coordination of interstate passenger
rail services with shared freight operations; and
    (D) Ability to incorporate community and stakeholder engagement in
transportation planning.
ii. Technical Merit
    FRA will evaluate application information for the degree to which--
    (A) The tasks and subtasks outlined in the SOW are appropriate to
achieve the expected outcomes of the proposed project.
    (B) Applications indicate ongoing commitment from each member state
to achieving the proposed project.
    (C) The applicant has, or will have the legal, financial, and
technical capacity to carry out the proposed project. The technical
qualifications and experience of key personnel proposed to lead and
perform the technical efforts, and the qualifications of the primary
and supporting organizations to fully and successfully execute the
proposed project within the proposed timeframe and budget are
demonstrated.
    (D) The proposed project is consistent with planning guidance and
documents set forth by DOT, including those required by law or State
rail plans developed under Title 49, United State Code, chapter 227, as
appropriate.
c. Selection Criteria
    In addition to the eligibility and completeness review and the
evaluation criteria outlined in this subsection, the FRA will apply the
following selection criteria:
    i. The amount of funding received (including funding from a rail
carrier (as defined in section 24102)) or other participation by State,
local, and regional governments and the private sector;
    ii. The applicant's work to foster economic development through
rail service, particularly in rural communities;
    iii. Whether the applicant seeks to restore service over routes
formerly operated by Amtrak, including routes described in section
11304(a) of the Passenger Rail Reform and Investment Act of 2015 (title
XI of division A of Pub. L. 114-94);
    iv. The applicant's dedication to providing intercity passenger
rail service to regions and communities that are underserved or not
served by other intercity public transportation;
    v. Whether the applicant is enhancing connectivity and geographic
coverage of the existing national network of intercity passenger rail
service;
    vi. Whether the applicant has prepared regional rail or corridor
service development plans and corresponding environmental analysis; and
    vii. Whether the applicant has engaged with appropriate government
entities and transportation providers to identify projects necessary to
enhance multimodal connections or facilitate service integration
between rail service and other modes, including between intercity
passenger rail service and intercity bus service or commercial air
service.
d. DOT Strategic Goals
    After the eligibility and completeness review and the evaluation
and selection criteria outlined in this section, FRA

will then consider the extent to which the projects address the
following DOT Strategic Goals:
i. Safety
    FRA will assess the project's ability to foster a safe
transportation system for the movement of goods and people, consistent
with the Department's strategic goal to reduce transportation-related
fatalities and serious injuries across the transportation system. Such
sounds considerations will include, but are not limited to, the extent
to which the project improves safety at highway-rail grade crossings,
reduces incidences of rail-related trespassing, and upgrades
infrastructure to achieve a higher level of safety.
ii. Economic Strength and Global Competitiveness
    FRA will assess the project's ability to contribute to economic
progress stemming from infrastructure investment and associated job
creation in the industry. Such considerations will include, but are not
limited to, the extent to which the project results in high-quality job
creation by supporting good-paying jobs with a free and fair choice to
join a union, and in on-going operations and maintenance, and
incorporates strong labor standards, such as through the use of project
labor agreements or union neutrality agreements; includes comprehensive
planning and policies to promote hiring of underrepresented populations
including local and economic hiring preferences and investments in
high-quality workforce development programs with supportive services,
including labor-management programs, to help train, place, and retain
people in good-paying jobs or registered apprenticeship, and invests in
vital infrastructure assets.
iii. Equity
    FRA will assess the project's ability to address equity and
barriers to opportunity, to the extent possible within the program and
consistent with law. Such considerations will include, but are not
limited to, the applicant's plan for using small businesses to complete
its project, the extent to which the project improves or expands
transportation options, the extent to which the project improve or
expands access to jobs and services and mitigates the safety risks and
detrimental quality of life effects that rail lines can have on
communities. This will also include community engagement efforts
already taken or planned, the extent to which engagement efforts are
designed to reach impacted communities, whether engagement is
accessible for persons with disabilities or limited English proficient
persons within the impacted communities, and how community feedback is
taken into account in decision-making.
    In determining the allocation of program funds, FRA may also
consider geographic diversity and the applicant's receipt of other
competitive awards.

2. Review and Selection Process

    FRA will conduct a four-part application review process, as
follows:
    a. Screen applications for applicant and project eligibility,
completeness, the minimum match and applicant risk including past
performance in developing and delivering similar projects;
    b. Apply evaluation criteria to remaining applications (completed
by technical panels);
    c. Apply selection criteria and DOT Strategic Goals and recommend
initial selection of projects for the FRA Administrator's review
(completed by a Senior Review Team, which includes senior leadership
from the Office of the Secretary and FRA); and
    d. Select recommended awards for the Secretary's or his designee
review and approval (completed by the FRA Administrator).

3. Reporting Matters Related to Integrity and Performance

    a. Before making a Federal award with a total amount of Federal
share greater than the simplified acquisition threshold of $250,000
(see 2 CFR 200.88 Simplified Acquisition Threshold), FRA will review
and consider any information about the applicant that is in the
designated integrity and performance system accessible through SAM
(currently the Federal Awardee Performance and Integrity Information
System (FAPIIS)). See 41 U.S.C. 2313.
    b. An applicant, at its option, may review information in the
designated integrity and performance systems accessible through SAM and
comment on any information about itself that a Federal awarding agency
previously entered and is currently in the designated integrity and
performance system accessible through SAM.
    c. FRA will consider any comments by the applicant, in addition to
the other information in the designated integrity and performance
system, in making a judgment about the applicant's integrity, business
ethics, and record of performance under Federal awards when completing
the review of risk posed by applicants as described in 2 CFR 200.205.

F. Federal Award Administration Information

1. Federal Award Notices

    FRA will announce applications selected for funding in a press
release and on FRA's website after the application review period. This
announcement is FRA's notification to successful and unsuccessful
applicants alike. FRA will contact applicants with successful
applications after announcement with information and instructions about
the award process. This notification is not an authorization to begin
proposed project activities. FRA requires satisfaction of applicable
requirements by the applicant and a formal agreement signed by both the
grant recipient and the FRA, including an approved scope, schedule, and
budget, before obligating the grant. See an example of standard terms
and conditions for FRA grant awards at https://railroads.dot.gov/elibrary/award-administration-and-grant-conditions. This template is
subject to revision.

2. Administrative and National Policy Requirements

    Performance under this Program will be governed by and in
compliance with the following requirements as applicable to the type of
organization of the recipient and any applicable sub-recipients.
    It is the policy of DOT to reflect Administration priorities and
incorporate criteria for selection considerations related to racial
equity including environmental justice, Title VI and other federal
Civil Rights laws, and barriers to opportunity, labor, and workforce in
its grant programs, to the extent possible and consistent with law.
    All awards will be administered pursuant to the Uniform
Administrative Requirements, Cost Principles and Audit Requirements for
Federal Awards found in 2 CFR part 200, as adopted by DOT at 2 CFR part
1201.
    In connection with any program or activity conducted with or
benefiting from funds awarded under this notice, recipients of funds
must comply with all applicable requirements of Federal law, including,
without limitation, the Constitution of the United States statutory,
regulatory, and public policy requirements, including without
limitation, those protecting free speech, religious liberty, public
welfare, the environment, and prohibiting discrimination; the
conditions of performance, non-discrimination requirements, and other
assurances made applicable to the award of funds in accordance with
regulations of the Department of Transportation; and

applicable Federal financial assistance and contracting principles
promulgated by the Office of Management and Budget. In complying with
these requirements, recipients must ensure that no concession
agreements are denied, or other contracting decisions made on the basis
of speech or other activities protected by the First Amendment. If FRA
determines that a recipient has failed to comply with applicable
Federal requirements, FRA may terminate the award of funds and disallow
previously incurred costs, requiring the recipient to reimburse any
expended award funds

3. Reporting

a. Progress Reporting on Grant Activity
    Each applicant selected for a grant will be required to comply with
all standard FRA reporting requirements, including quarterly progress
reports, quarterly Federal financial reports, and interim and final
performance reports, as well as all applicable auditing, monitoring and
close out requirements. Reports may be submitted electronically.
Pursuant to 2 CFR 170.210, non-Federal entities applying under this
NOFO must have the necessary processes and systems in place to comply
with the reporting requirements should they receive Federal funding.
b. Additional Reporting
    Applicants selected for funding are required to comply with all
reporting requirements in the standard terms and conditions for FRA
grant awards including 2 CFR 180.335 and 2 CFR 180.350.
    If the Federal share of any Federal award under this NOFO may
include more than $500,000 over the period of performance, applicants
are informed of the post award reporting requirements reflected in 2
CFR part 200, appendix XII--Award Term and Condition for Recipient
Integrity and Performance Matters.
c. Performance and Program Evaluation
    Program Evaluation As a condition of grant award, grant recipients
may be required to participate in an evaluation undertaken by DOT, or
another agency or partner. The evaluation may take different forms such
as an implementation assessment across grant recipients, an impact and/
or outcomes analysis of all or selected sites within or across grant
recipients, or a benefit/cost analysis or assessment of return on
investment. The Department may require applicants to collect data
elements to aid the evaluation. As a part of the evaluation, as a
condition of award, grant recipients must agree to: (1) make records
available to the evaluation contractor; (2) provide access to program
records, and any other relevant documents to calculate costs and
benefits; (3) in the case of an impact analysis, facilitate the access
to relevant information as requested; and (4) follow evaluation
procedures as specified by the evaluation contractor or DOT staff.
    Recipients and sub-recipients are also encouraged to incorporate
program evaluation including associated data collection activities from
the outset of their program design and implementation to meaningfully
document and measure the effectiveness of their projects and
strategies. Title I of the Foundations for Evidence-Based Policymaking
Act of 2018 (Evidence Act), Public Law 115-435 (2019) urges Federal
awarding agencies and Federal assistance recipients and sub-recipients
to use program evaluation as a critical tool to learn, to improve
equitable delivery, and to elevate program service and delivery across
the program lifecycle. Evaluation means ``an assessment using
systematic data collection and analysis of one or more programs,
policies, and organizations intended to assess their effectiveness and
efficiency'' (codified at 5 U.S.C. 311). For grant recipients,
evaluation expenses are allowable costs (either as direct or indirect),
unless prohibited by statute or regulation, and such expenses may
include the personnel and equipment needed for data infrastructure and
expertise in data analysis, performance, and evaluation (2 CFR 200).
d. Performance Reporting
    Each applicant selected for funding must report on the project's
performance using measures mutually agreed upon by FRA and the grant
recipient to assess progress in achieving the DOT strategic goals and
objectives.
    Examples of some rail performance measures for Program funding are
listed in the table below. The applicable measure(s) will depend upon
the type of project.

----------------------------------------------------------------------------------------------------------------
       Programmatic measures               Unit measured               Temporal               Description
----------------------------------------------------------------------------------------------------------------
Administrative Support Provided...  Additional staff capacity.  Annual...............  The hours of staff,
                                                                                administrative
                                                                                professional and/or
                                                                                technical personnel, in
                                                                                absence of the
                                                                                programmatic funding,
                                                                                that have been added to
                                                                                support the activities
                                                                                or work products that
                                                                                facilitate Interstate
                                                                                Rail Compacts carrying
                                                                                out their duties
                                                                                effectively and timely,
                                                                                including information
                                                                                technology, accounting,
                                                                                human resources, and
                                                                                procurement.
Creation of new or updates to       Number of reports.........  Annual...............  The development of a high-
 existing regional rail planning                                                        level planning study
 studies.                                                                               that considers new
                                                                                transportation services
                                                                                or enhancing existing
                                                                                transportation systems
                                                                                by examining broad
                                                                                needs, challenges, and
                                                                                opportunities, including
                                                                                studying the impacts of
                                                                                freight rail operations
                                                                                on system performance
                                                                                and ridership.
Promotion of Intercity Passenger    Number of marketing and     Annual...............  Promotional activities
 Rail Operations.                    advertising campaigns or                           include website
                                     outreach efforts.                                  development, social
                                                                                media management, print
                                                                                materials, direct
                                                                                advertising, collecting
                                                                                customer feedback, and
                                                                                stakeholder outreach.

Preparation of applications for     Number of grant programs    Annual...............  The development and
 Federal grant program.              applied to or time/                                support needed,
                                     resources spent on                                 including, technical
                                     applying.                                          staff or contractor
                                                                                support to prepare
                                                                                applications and
                                                                                documentation associated
                                                                                with preparing an
                                                                                application for
                                                                                financial assistance.
                                                                                These activities include
                                                                                preparing operating
                                                                                plans, funding plans,
                                                                                benefit-cost analysis,
                                                                                and any other
                                                                                documentation that is
                                                                                required to be provided
                                                                                as part of an
                                                                                application for a
                                                                                federal grant.
----------------------------------------------------------------------------------------------------------------

G. Federal Awarding Agency Contacts

    For further information regarding this notice and the grants
program, please contact the FRA NOFO Support program staff via email at
[email protected]. If additional assistance is needed, you may
contact Mr. Marc Dixon, Office of Rail Program Development, Federal
Railroad Administration; email: [email protected] phone:<PHONE_NUMBER>.

H. Other Information

    All information submitted as part of or in support of any
application shall use publicly available data or data that can be made
public and methodologies that are accepted by industry practice and
standards, to the extent possible. If the application includes
information the applicant considers to be a trade secret or
confidential commercial or financial information, the applicant should
do the following: (1) Note on the front cover that the submission
``Contains Confidential Business Information (CBI)''; (2) mark each
affected page ``CBI''; and (3) highlight or otherwise denote the CBI
portions.
    The DOT regulations implementing the Freedom of Information Act
(FOIA) are found at 49 CFR part 7 subpart C--Availability of Reasonably
Described Records under the Freedom of Information Act which sets forth
rules for FRA to make requested materials, information and, records
publicly available under FOIA. Unless prohibited by law and to the
extent permitted under the FOIA, contents of application and proposals
submitted by successful applicants may be released in response to FOIA
requests.

    Issued in Washington, DC.
Amitabha Bose,
Administrator.
[FR Doc. 2023-09863 Filed 5-8-23; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Notices]
[Pages 60387-60388]
[FR Doc No: 2017-27372]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2778-077]

Idaho Power Company; Notice of Application for Amendment of
License and Soliciting Comments, Motions To Intervene, and Protests

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection:
    a. Application Type: Amendment of license to reduce approved
capacity upgrade.
    b. Project Number: 2778-077.
    c. Date Filed: April 14, 2017.
    d. Applicant: Idaho Power Company (licensee).
    e. Name of Project: Shoshone Falls Hydroelectric Project.
    f. Location: The project is located on the Snake River in Jerome
and Twin Falls Counties, Idaho. Part of the project occupies lands
owned by the Bureau of Land Management.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact: L. Lewis Wardle, FERC Lands and Licensing
Coordinator, Idaho Power Company, P.O. Box 70, 1221 W Idaho St., Boise,
Idaho 83702; telephone<PHONE_NUMBER>; email address:
[email protected]. Also, Jerrod Vaughn, Idaho Power Company, P.O.
Box 70, 1221 W Idaho St., Boise, Idaho 83702; telephone<PHONE_NUMBER>:
email address: [email protected].
    i. FERC Contact: Kurt Powers; telephone<PHONE_NUMBER>; email
address: [email protected].
    j. Deadline for filing comments, motions to intervene and protests
is 30 days from the issuance date of this notice by the Commission. The
Commission strongly encourages electronic filing. Please file motions
to intervene, protests and comments using the Commission's eFiling
system at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can
submit brief comments up to 6,000 characters, without prior
registration, using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information
at the end of your comments. For assistance,

please contact FERC Online Support at [email protected], (866)
208-3676 (toll free), or<PHONE_NUMBER> (TTY). In lieu of electronic
filing, please send a paper copy to: Secretary, Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426. The
first page of any filing should include docket number P-2778-077.
Comments emailed to Commission staff are not considered part of the
Commission record.
    k. Description of Filing: Idaho Power Company (IPC) requests
amendment of the Commission's July 1, 2010 Order that authorized IPC to
upgrade the Shoshone Falls Hydroelectric Project's installed capacity.
Specifically, IPC no longer wants to build a new powerhouse with a
single 50 megawatt (MW) unit. Instead, IPC proposes to remove the
project's two existing turbines and install a single 3.2 MW unit in the
project's existing powerhouse. The project's total installed capacity
would then be 3.2 MW. IPC also proposes to delete Article 402 to remove
the supplemental aesthetic flow release requirement and proposes to
delete Article 420 which requires a Visitor Use Survey and Monitoring
Plan. Both of these requirements were added to the license in response
to the 50 MW upgrade. Finally, IPC proposes to accelerate its license
expiration date so the license expires on July 31, 2040 instead of its
current expiration date of July 31, 2044. This proposal would
coordinate the license expiration date of the Shoshone Falls Project
with the Twin Falls Project (FERC Project No. 18), which is located one
mile upstream on the Snake River and has a license expiration date of
December 31, 2040. IPC says coordination would allow the licensee,
resource agencies, and the Commission to more effectively relicense the
two projects and would allow the Commission to better assess cumulative
effects.
    l. Locations of Applications: A copy of the application is
available for inspection and reproduction at the Commission's Public
Reference Room, located at 888 First Street NE, Room 2A, Washington, DC
20426, or by calling<PHONE_NUMBER>. This filing may also be viewed on
the Commission's website at http://www.ferc.gov/docs-filing/elibrary.asp. Enter the docket number excluding the last three digits
in the docket number field to access the document. You may also
register online at http://www.ferc.gov/docs-filing/esubscription.asp to
be notified via email of new filings and issuances related to this or
other pending projects. For assistance, call 1-866-208-3676 or email
[email protected], for TTY, call<PHONE_NUMBER>. A copy is
also available for inspection and reproduction at the address in item
(h) above.
    m. Individuals desiring to be included on the Commission's mailing
list should do so by writing to the Secretary of the Commission.
    n. Comments, Protests, or Motions to Intervene: Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211,
.214. In determining the appropriate action to take, the Commission
will consider all protests or other comments filed, but only those who
file a motion to intervene in accordance with the Commission's Rules
may become a party to the proceeding. Any comments, protests, or
motions to intervene must be received on or before the specified
comment date for the particular application.
    o. Filing and Service of Responsive Documents: All filings must (1)
bear in all capital letters the title PROTEST, MOTION TO INTERVENE, or
COMMENTS; (2) set forth in the heading the name of the applicant and
the project number of the application to which the filing responds; (3)
furnish the name, address, and telephone number of the person
protesting or intervening; and (4) otherwise comply with the
requirements of 18 CFR 385.2001 through 385.2005. All comments, motions
to intervene or protests must set forth their evidentiary basis and
otherwise comply with the requirements of 18 CFR 4.24(b). All comments,
motions to intervene, or protests should relate to project works which
are subject of the non-project use application. A copy of any protest
or motion to intervene must be served upon each representative of the
applicant specified in the particular application. If an intervener
files comments or documents with the Commission relating to the merits
of an issue that may affect the responsibilities of a particular
resource agency, they must also serve a copy of the document on that
resource agency. A copy of all other filings in reference to this
application must be accompanied by proof of service on all persons
listed in the service list prepared by the Commission in this
proceeding, in accordance with 18 CFR 4.34(b) and 385.2010.

    Dated: December 14, 2017.
Kimberly D. Bose,
Secretary.
[FR Doc. 2017-27372 Filed 12-19-17; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 57 (Tuesday, March 24, 2020)]
[Notices]
[Pages 16720-16723]
[FR Doc No: 2020-06118]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88421; File No. SR-IEX-2020-04]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
IEX Rule 11.280 Concerning the Resumption of Trading Following a Level
3 Market-Wide Circuit Breaker Halt

March 18, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on March 18, 2020, the Investors Exchange LLC (``IEX'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposed rule change to amend IEX Rule 11.280 concerning the resumption
of trading following a Level 3 market-wide circuit breaker halt. IEX
has designated this rule change as ``non-controversial'' under Section
19(b)(3)(A) of the Act \6\ and provided the Commission with the notice
required by Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's
website at www.iextrading.com, at the principal office of the Exchange,
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statement may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend IEX Rule 11.280(b) \8\ concerning
the resumption of trading following a Level 3 market-wide circuit
breaker halt. The Exchange is proposing this rule change in conjunction
with other national securities exchanges and the Financial Industry
Regulatory Authority (``FINRA'').
---------------------------------------------------------------------------

    \8\ See IEX Rule 11.280(b).
---------------------------------------------------------------------------

    IEX Rule 11.280 provides a methodology for determining when to halt
trading in all stocks due to extraordinary market volatility (i.e.,
market-wide circuit breakers).\9\ The market-wide circuit breaker
mechanism (``MWCB'') under IEX Rule 11.280 was approved by the
Commission to operate on a pilot basis, the term of which was to
coincide with the pilot period for the Plan to Address Extraordinary
Market Volatility Pursuant to Rule 608 of Regulation NMS (the ``LULD
Plan''), including any extensions to the pilot period for the LULD
Plan.\10\ The Commission recently approved an amendment to the LULD
Plan for it to operate on a permanent, rather than pilot, basis.\11\ In
light of the proposal to make the LULD Plan permanent, the Exchange
amended IEX Rule 11.280 to untie the pilot's effectiveness from that of
the LULD Plan and to extend the pilot's effectiveness to the close of

business on October 18, 2019.\12\ The Exchange then filed to extend the
pilot for an additional year to the close of business on October 18,
2020.\13\
---------------------------------------------------------------------------

    \9\ See IEX Rule 11.280(a)-(d) and (f).
    \10\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012). An amendment to the LULD Plan
adding IEX as a Participant was filed with the Commission on August
11, 2016 and became effective upon filing pursuant to Rule
608(b)(3)(iii) of the Act. See Securities Exchange Act Release No.
78703 (August 26, 2016), 81 FR 60397 (September 1, 2016) (File No.
4-631).
    \11\ See Securities Exchange Act Release No. 85623 (April 11,
2019), 84 FR 16086 (April 17, 2019).
    \12\ See Securities Exchange Act Release No. 85576 (April 9,
2019), 84 FR 15237 (April 15, 2019) (SR-IEX-2019-04).
    \13\ See Securities Exchange Act Release No. 87298 (October 15,
2019), 84 FR 56255 (October 21, 2019) (SR-IEX-2019-11).
---------------------------------------------------------------------------

    The market-wide circuit breaker under IEX Rule 11.280 provides an
important, automatic mechanism that is invoked to promote stability and
investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. All U.S.
equity exchanges and FINRA adopted uniform rules on a pilot basis
relating to market-wide circuit breakers in 2012 (``MWCB Rules''),
which are designed to slow the effects of extreme price movement
through coordinated trading halts across securities markets when severe
price declines reach levels that may exhaust market liquidity.\14\
Market-wide circuit breakers provide for trading halts in all equities
and options markets during a severe market decline as measured by a
single-day decline in the S&P 500 Index.
---------------------------------------------------------------------------

    \14\ See supra note 10.
---------------------------------------------------------------------------

    Pursuant to IEX Rule 11.280, a market-wide trading halt will be
triggered if the S&P 500 Index declines in price by specified
percentages from the prior day's closing price of that index.
Currently, the triggers are set at three circuit breaker thresholds: 7%
(Level 1), 13% (Level 2), and 20% (Level 3).\15\ A market decline that
triggers a Level 1 or Level 2 halt after 9:30 a.m. ET and before 3:25
p.m. ET would halt market-wide trading for 15 minutes, while a similar
market decline at or after 3:25 p.m. ET would not halt market-wide
trading.\16\ A market decline that triggers a Level 3 halt at any time
during the trading day would halt market-wide trading until the primary
listing market opens the next trading day.\17\
---------------------------------------------------------------------------

    \15\ See IEX Rule 11.280(a).
    \16\ See IEX Rule 11.280(b)(1).
    \17\ See IEX Rule 11.280(b)(2).
---------------------------------------------------------------------------

    Today, in the event that a Level 3 market decline occurs, the
Exchange would halt trading for the remainder of the trading day and
would not resume until the primary listing market opens the next
trading day. Thus, if the primary listing market is the New York Stock
Exchange, Inc. (``NYSE''), IEX would not resume trading in NYSE-listed
securities until NYSE opens at 9:30 a.m. ET on the next trading
day.\18\ But if the primary listing market is the Nasdaq Stock Market
LLC (``Nasdaq''), IEX would resume trading in Nasdaq-listed securities
at 8:00 a.m. ET on the next trading day, when IEX commences its Pre-
Market Session.\19\ Effectively, Nasdaq would open its listed
securities for trading following a Level 3 halt the same as a regular
trading day under the current MWCB Level 3 re-opening procedures.\20\
For non-Nasdaq listed securities, however, IEX would resume trading
once the primary listing market has re-opened the security for trading,
which time may currently vary depending on the primary listing
market.\21\
---------------------------------------------------------------------------

    \18\ See NYSE Rule 1.1.
    \19\ Nasdaq's pre-market session begins at 4:00 a.m. ET and
continues until 9:30 a.m. ET. See Nasdaq Rule 4120(b)(4). IEX's Pre-
Market Session begins at 8:00 a.m. ET and continues until 9:30 a.m.
ET. See IEX Rule 1.160(aa).
    \20\ The Nasdaq system begins accepting and processing eligible
orders in time priority at 4:00 a.m. ET. See Nasdaq Rule 4752(b) for
further description of trading in the Pre-Market Session.
    \21\ Furthermore, there may be cross-market differences in how
each exchange currently opens the next day after a Level 3 MWCB
halt. As discussed above, while Nasdaq currently resumes trading in
its listed securities no differently from a regular trading day,
other exchanges may, for instance, conduct a halt auction process
instead of opening in the normal course under their respective
rules. As discussed later in this filing, the proposed changes will
allow each exchange to resume trading in all securities the next
trading day following a Level 3 halt no differently from a regular
trading day.
---------------------------------------------------------------------------

    Upon feedback from industry participants, the Exchange has been
working with other national securities exchanges and FINRA to establish
a standardized approach for resuming trading in all NMS Stocks
following a Level 3 halt. The proposed approach would allow for the
opening of all securities the next trading day after a Level 3 halt as
a regular trading day and is designed to ensure that Level 3 MWCB
events are handled in a more consistent manner that is transparent for
market participants.\22\
---------------------------------------------------------------------------

    \22\ Of note, the U.S. futures markets, which have similar rules
for coordinated MWCB halts, normally begin their ``next day''
trading session at 6:00 p.m. ET (for CFE and CME) or at 8:00 p.m. ET
(for ICE). If the U.S. futures markets amend their MWCB rules, as
needed, to allow for normal course trading following a Level 3 halt,
the futures markets would resume trading in their normal course at
6:00 p.m. ET (CFE and CME) or 8:00 p.m. ET (ICE) the same day as the
Level 3 halt.
---------------------------------------------------------------------------

    As proposed, a Level 3 halt would end at the end of the trading day
on which it is declared. This proposed change would allow for next-day
trading to resume in all NMS Stocks no differently from any other
trading day. In other words, an exchange could resume trading in any
security when it first begins trading under its rules and would not
need to wait for the primary listing market to re-open trading in a
security before it could start trading such security.\23\ Accordingly,
under the proposal, the Exchange could begin trading all securities at
the beginning of the Exchange's Pre-Market Session, just as it
currently does for Nasdaq-listed securities.
---------------------------------------------------------------------------

    \23\ The Exchange anticipates that the other national securities
exchanges and FINRA will also file similar proposals to amend their
MWCB rules on the resumption of trading following Level 3 halts, and
amend their rules, where required, to have their Level 3 next-day
openings happen normally. See e.g., Securities Exchange Act Release
No. 88004 (January 17, 2020), 85 FR 3992 (January 23, 2020) (SR-
NASDAQ-2020-003).
---------------------------------------------------------------------------

    To effect this change, the Exchange proposes to delete the language
in IEX Rule 11.280(b)(2) requiring the Exchange to wait until the
primary listing exchange opens the next trading day following a Level 3
market decline, and specify that the Exchange will halt trading for the
remainder of the same trading day.\24\ The proposed rule change would
therefore allow each exchange to resume trading in all securities the
next trading day following a Level 3 halt at whatever time such
exchange normally begins trading under its rules, which for IEX would
be at the beginning of the Pre-Market Session at 8:00 a.m. ET under its
current rules.\25\ The Exchange also expects that the primary listing
exchanges will facilitate this change by sending resume messages to the
applicable securities information processor (``SIP'') to lift the Level
3 trading halt message in all securities. The resumption messages will
be disseminated after the SIP has started on the next trading day and
before the start of the earliest pre-market trading session of all
exchanges. If a security is separately subject to a regulatory halt
that has not ended, the primary listing exchange would replace the
Level 3 halt message with the applicable regulatory halt message.
---------------------------------------------------------------------------

    \24\ Presently, the Exchange's equities trading day ends at 5:00
p.m. ET. See IEX Rule 1.160(aa).
    \25\ See supra note 19.
---------------------------------------------------------------------------

    Having a consistent approach for all securities will make the
opening process the day after a Level 3 halt more uniform and reduce
complexity, which the Exchange believes is important after a
significant market event. Based on industry feedback, the Exchange
believes that opening in the normal course in all equity securities as
opposed to, for instance, having a normal opening for Nasdaq-listed
securities only or waiting for the primary listing exchange to conduct
a halt auction prior to resuming trading, will be more beneficial to
the marketplace. By allowing trading to resume after a Level 3 halt in
all securities no differently from any normal trading day under the
respective

rules of each exchange, the proposed rule change would provide greater
certainty to the marketplace by ensuring a familiar experience for all
market participants that trade NMS Stocks and balances out potential
concerns around volatility. While the Exchange recognizes that the
impact of this proposal is to permit all securities to be traded in the
Pre-Market Session, which does not have certain price protections for
volatility such as LULD Bands or MWCB protections, the Exchange
nonetheless believes that this outcome is outweighed by the benefits
provided by opening in the Pre-Market Session in a manner that is more
familiar to the marketplace. Moreover, allowing the resumption of
trading to occur on the Exchange at the beginning of the Pre-Market
Session in all NMS Stocks will allow for price formation to occur
earlier in the trading day, which in turn allows market participants to
react to news that has developed. As such, trading at the beginning of
regular hours may be more orderly.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of Sections 6(b) \26\ and 6(b)(5) of the Act,\27\ in
particular, in that it is designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in general
to protect investors and the public interest. The market-wide circuit
breaker mechanism under IEX Rule 11.280 is an important, automatic
mechanism that is invoked to promote stability and investor confidence
during a period of significant stress when securities markets
experience extreme broad-based declines. The Exchange believes that the
proposed rule change promotes just and equitable principles of trade in
that it promotes transparency and uniformity across markets concerning
when and how to halt trading in all stocks as a result of extraordinary
market volatility, and how the markets will resume trading following a
Level 3 market decline. As described above, the Exchange, together with
other national securities exchanges and FINRA, is seeking to adopt a
standardized approach related to resuming trading in NMS Stocks after a
Level 3 MWCB halt. In this regard, the Exchange believes that the
proposal to resume trading in all securities following a Level 3 halt
in the same manner that securities would open trading on a regular
trading day (i.e., the beginning of the Pre-Market Session at 8 a.m. ET
on IEX) will benefit investors, the national market system, Exchange
Members, and the Exchange market by promoting a fair and orderly market
and reducing confusion during a significant cross-market event. By
allowing trading to resume after a Level 3 halt in all securities no
differently from any normal trading day under the respective rules of
each exchange, the proposed rule change would provide greater certainty
to the marketplace by ensuring a familiar experience for all market
participants that trade NMS Stocks.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Based on the foregoing, the Exchange believes the benefits to
market participants from the MWCB under IEX Rule 11.280 with the
proposed standardized process for resuming trading in all securities
following a Level 3 halt will promote fair and orderly markets and
protect investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    IEX does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act because the proposed Level 3 rule change
described above would standardize the opening process for all
securities on the Exchange, which would make the opening process the
day after a Level 3 halt more uniform and reduce complexity. Further
the Exchange understands that FINRA and the other national securities
exchanges will file similar proposals to adopt the proposed Level 3
rule change.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \28\ and Rule 19b-4(f)(6) thereunder.\29\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\30\
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \29\ 17 CFR 240.19b-4(f)(6).
    \30\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Commission has waived the pre-filing requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \31\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\32\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission notes
that it approved a substantively similarly proposed rule change
submitted by Nasdaq.\33\ Waiver of the operative delay will ensure
consistency across the market centers and the timely implementation of
the proposed rule change. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\34\
---------------------------------------------------------------------------

    \31\ 17 CFR 240.19b-4(f)(6).
    \32\ 17 CFR 240.19b-4(f)(6)(iii).
    \33\ See Securities Exchange Act Release No. 88360 (March 11,
2020) (SR-NASDAQ-2020-003).
    \34\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \35\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \35\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing,

including whether the proposed rule change is consistent with the Act.
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-IEX-2020-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-IEX-2020-04. This file
number should be included in the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Section, 100 F Street NE, Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing will also be available for inspection
and copying at the IEX's principal office and on its internet website
at www.iextrading.com. All comments received will be posted without
change. Persons submitting comments are cautioned that we do not redact
or edit personal identifying information from comment submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-IEX-2020-04
and should be submitted on or before April 14, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06118 Filed 3-23-20; 8:45 am]
BILLING CODE 8011-01-P