The third category is for “force account” work related to hurricane response and recovery for which the local transit agencies have documentation that they budgeted for the expense by Jan. 29.

In the Federal Register notice, FTA says certain capital and operating costs are eligible for reimbursement. On the capital side, it says reimbursable expenses include “costs to repair, reconstruct or replace equipment and facilities of a public transportation system that has suffered serious damage as a result of Hurricane Sandy.”

On the operations side, FTA says eligible items are “emergency operating costs incurred for evacuations; rescue operations; moving rolling stock to higher ground to protect it from storm surges; temporary public transportation service; and reestablishing, expanding or relocating public transportation service before, during or after Hurricane Sandy.”

Some items are not eligible, the agency says, including estimated lost revenue; heavy maintenance; costs for which other federal agencies have provided reimbursement; costs covered by insurance; projects “that change the function of the original infrastructure”; projects for which funds were obligated before Sandy; and costs to replace certain material, such as items that were stockpiled.                                                                                                              

FTA will reimburse 100% of transit agencies’ emergency-operations expenses incurred between Oct. 30 and Nov. 14 in all New Jersey counties, 13 New York counties, seven Connecticut counties and two Indian tribal nations in that state’s New London County—unless the Federal Emergency Management Agency already has provided that reimbursement.

For capital expenses and post-Nov. 14 operating costs, FTA will reimburse local transit agencies for 90% of a project's total price tag.

FTA also says that “projects related to reducing the risk of future disasters” in Sandy-affected areas are not eligible for the initial $2 billion. Such longer-range projects would be eligible for some of the remaining $8.9 billion that FTA received in the Sandy funding law.

Before FTA obligates the $8.9 billion, it must draft interim regulations for a new federal transit emergency-relief program, which was established in last year’s Moving Ahead for Progress in the 21^st Century Act (MAP-21). FTA says it is working on those interim rules.