OAR Chapter 732 — Department of Transportation, Public Transportation Division

Division 35 STANDARDS TO DETERMINE PROJECT ELIGIBILITY AND APPLICATION PROCEDURES FOR GRANTS UNDER THE OREGON STREETCAR PROJECT FUND PROGRAM

Or. Admin. R. 732-035-0010 Purpose

Chapter 746, Oregon Laws 2007 created the Oregon Streetcar Project Fund, allowing for the issuance of lottery bonds for the purpose of financing grants through ODOT to municipalities to provide for the purchase of streetcars used in public transit systems. The purpose of division 35 rules is to establish the Oregon Streetcar Project Fund Program.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24 (2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0020 Definitions

For the purposes of division 35 rules, the following terms have the following definitions, unless the context clearly indicates otherwise:

(1) “Grant Agreement” means a legally binding contract between the Department and Recipient that contains the terms and conditions under which the Department is providing funds from the Oregon Streetcar Project Fund for an Approved Project.

(2) “Applicant” means a municipality and operator of a rail fixed guideway system that applies for funds from the Oregon Streetcar Project Fund.

(3) “Approved Project” means a Project that the Department has selected to receive funding through a grant from the Oregon Streetcar Project Fund.

(4) “Commission” means the Oregon Transportation Commission.

(5) “Department” means the Oregon Department of Transportation.

(6) “Director” means the Director of the Oregon Department of Transportation.

(7) “Municipality” as defined in ORS 285B.410b means an Oregon city or county, the Port of Portland created by 778.010, a county service district organized under ORS Chapter 451, a district as defined in ORS 198.010, a tribal council of a federally recognized Indian tribe in this state or an airport district organized under ORS Chapter 838.

(8) “Oregon-based Manufacturer” means, for the purposes of the Oregon Streetcar Fund Program, an entity whose manufacturing facilities are physically located in Oregon, and which is organized or authorized to do business under Oregon law.

(9) “Oregon-owned Manufacturer” means a sole proprietorship owned by an Oregon resident paying taxes in Oregon, or an entity 51 percent of which is owned by an Oregon resident or residents residing and paying taxes in Oregon.

(10) “Oregon Streetcar Project Fund” is defined in Chapter 746, OL 2007 as a fund consisting of lottery bond proceeds deposited in the fund, interest earnings on the fund and any other moneys appropriated to the fund by the Legislative Assembly.

(11) “Program” means the Oregon Streetcar Project Fund Program established by division 35 rules to administer the Oregon Streetcar Project Fund.

(12) "Program Funds" means the money in the Oregon Streetcar Project Fund that may be used as grants for eligible projects.

(13) “Project” means a proposal to purchase Oregon Manufactured Streetcars from an Oregon-based and Oregon-owned manufacturer, to be used as part of a public transit system.

(14) "Recipient" means an Applicant that enters into a Grant Agreement with the Department to receive funds from the Oregon Streetcar Project Fund.

(15) “Streetcar” means a transit vehicle designed for local transportation operated on a rail fixed guideway, powered by electricity usually received from an overhead electric wire.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24 (2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0030 Program Purpose and Requirements

(1) Purpose. Sections 22 and 23, Chapter 746, OL 2007 establish the Oregon Streetcar Project Fund. The fund is to consist of lottery bond proceeds, interest on the Fund and any other money appropriated to the Fund from the legislature. The moneys are continuously appropriated to the Department for:

(a) Grants to municipalities to provide streetcars for public transit systems.

(b) ODOT costs to administer the grant program described in these rules.

(2) Program Requirements

(a) An Applicant must be a Municipality as defined in ORS 285B.410;

(b) An Applicant must use the streetcars as part of a public transit system operated by the Applicant and available to the public;

(c) Grant funds are to be used only for the purchase of newly constructed Streetcars from an Oregon-based and Oregon-owned Manufacturer;

(d) Applicant must comply with any other provisions the Department determines necessary to manage the Oregon Streetcar Project Fund Program;

(e) For each Project, the Director shall make a finding that the purchase of Streetcars as contemplated in the grant will result in the creation or maintenance of jobs with Oregon Manufacturers of Streetcars;

(3) If the Director determines that there are no Oregon-based and Oregon-owned Manufacturers of Streetcars, the Director may decline to request the issuance of bonds, or may authorize Grant Agreements that include the purchase of Streetcars from out-of-state manufacturers.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24 (2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0040 Program Development

The Department shall:

(1) Study the effects of grants authorized under this program on the creation or maintenance of jobs in Oregon.

(2) File semiannual reports with the Commission on the findings of the studies.

(3) Adopt rules and develop policies and grant application procedures necessary to achieve the goals of the Program.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24 (2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0050 Submitting Applications

(1) Submission Periods. The Department will announce periods for submitting applications for funding from the Oregon Streetcar Project Fund.

(2) Application Requirements. Applicants interested in receiving funds from the Oregon Streetcar Project Fund must submit a written application to the Department. The application must be in a format prescribed by the Department and contain or be accompanied by such information as the Department may require.

(3) Applications not funded may be resubmitted during subsequent application submission periods announced by the Department.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24 (2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0060 Application Review

(1) Project applications will be reviewed for compliance with the requirements in OAR 731-035-0030 and 732-035-0060.

(2) The Department will review applications received to determine whether the Applicant and the Project are eligible for Program Funds.

(3) Applicants that meet all of the following criteria are eligible:

(a) The Applicant is a Municipality within the state of Oregon.

(b) The Applicant operates a public transit system that includes Streetcars that are available to the public.

(d) Whether the Applicant is in compliance with State Safety Oversight requirements and plans. Streetcar operators must be compliant with 49CFR Part 659 and OAR 741-060-0010 through 741-060-0110.

(4) Projects that meet the following requirements are eligible:

(a) Projects that propose to purchase newly constructed Streetcars from an Oregon-based and Oregon-owned Manufacturer.

(b) If the director determines that there are no Oregon-based and Oregon-owned Manufacturers of Streetcars, then Projects that include the purchase of Streetcars from out-of-state manufacturers may be determined eligible at the Director’s sole discretion.

(5) If an Applicant or Project is not eligible for Program Funds, the Department shall:

(a) Specify the additional information the Applicant must provide to establish eligibility; or

(b) Notify the Applicant that the application is ineligible.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24(2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0070 Project Selection

(1) The Department will select Projects to be funded through a grant with moneys from the Oregon Streetcar Project Fund.

(2) In addition to the criteria in 732-035-0060, the Department will consider the following in its determination of eligible Projects to approve for receipt of funds from the Oregon Streetcar Project Fund:

(a) Whether the purchase of Streetcars as contemplated in the project will result in the creation or maintenance of jobs with Oregon-based and Oregon-owned Manufacturers of Streetcars.

(b) Whether the proposed Streetcars are accessible. Facilities and vehicles used in the provision of public transportation services must be in compliance with 42 U.S.C. Sections 12101 et seq. and DOT regulations, “Transportation Services for Individuals with Disabilities (ADA),” 49 CFR Part 37; and Joint Architectural and Transportation Barriers Compliance Board (ATBCB)/DOT regulations, “Americans with Disabilities (ADA) Accessibility Specifications for Transportation Vehicles,” 36 CFR Part 1192 and 49 CFR Part 38.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24(2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Or. Admin. R. 732-035-0080 Project Administration

(1) The Department will track expenditures, performance and compliance for all Projects.

(2) The Department and an Applicant for an Approved Project will execute a Grant Agreement prior to the disbursal of Program Funds for an Approved Project. The Grant Agreement is effective on the date all required signatures are obtained or at such later date as specified in the Grant Agreement.

(3) The Grant Agreement will contain provisions and requirements, including without limitation:

(a) Documentation of the projected costs for an Approved Project;

(b) Certification by Recipient to terms and conditions of grant award for ongoing responsibility to manage the Streetcar assets to required federal safety oversight standards and maintain Streetcars and related equipment to manufacturer’s requirements;

(c) Description of how Program Funds for grants will be paid, either on a reimbursement basis or as negotiated with the recipient;.

(d) Requirement that Recipients provide the Department upon request with a copy of any documents, studies, reports and materials developed during the Project, including a written report on the activities or results of the Project and any other information that may be reasonably requested by the Department;

(e) Requirement that Recipients separately account for all moneys received from the Oregon Streetcar Project Fund in Project accounts in accordance with Generally Accepted Accounting Principles.

(f) Requirement that Program Funds disbursed but not used for an Approved Project must be returned to the Department;

(g) Provision that written amendments to Grant Agreements are required to change an Approved Project's cost, scope, objectives or timeframe.

(h) Covenant of Recipient to use Project funds in a manner that will not adversely affect the tax-exempt status of any bonds issued pursuant to the authority of Chapter 816, Oregon Laws 2005.

(4) The Department may invoke sanctions against a Recipient that fails to comply with the requirements governing the Program. The Department will not impose sanctions until the Recipient has been notified in writing of such failure to comply with the Program requirements as specified in this chapter and has been given a reasonable time to respond and correct the deficiencies noted. The following circumstances may warrant sanctions:

(a) State statutory and/or administrative rule requirements have not been met;

(b) There is a default in the Grant Agreement; or

(c) The Department finds that significant corrective actions are necessary to protect the integrity of the Program Funds for the Project and those corrective actions are not, or will not be, made within a reasonable time.

(5) The Department may impose one or more of the following sanctions:

(a) Terminate an existing Grant Agreement.

(b) Withhold unexpended Program Funds.

(d) Refuse to accept applications from the Applicant for future grants.

(e) Other remedies that may be incorporated into Grant Agreements.

(6) The remedies set forth in this rule are cumulative, are not exclusive, and are in addition to any other rights and remedies provided by law or under the Grant Agreement.

(7) The Director shall consider protests of the funding and Project administration decisions for the Program. Only the Applicant or Recipient may protest. Protests must be submitted in writing to the Director within 30 days of the event or action that is being protested. The Director's decision is final. Jurisdiction for review of the Director's decision is in the circuit court for Marion County pursuant to ORS 183.484.

(8) The Director may waive non-statutory requirements of this Program if it is demonstrated such a waiver would serve to further the goals and objectives of the Program.

(9) The Department shall compile information on projects funded through the Oregon Streetcar Fund Program as described in OAR 732-035-0040 and report the resulting effect on creation and maintenance of Oregon jobs in a periodic report to the Commission for the duration of the Program.

History

Statutory/Other Authority: ORS 184.616, 184.619, Sec. 24(2), Ch. 746 & OL 2007
Statutes/Other Implemented: ORS 184.670, 184.685, Ch. 746 & OL 2007
PTD 1-2008, f. & cert. ef. 4-24-08

Division 40 STATEWIDE TRANSPORTATION IMPROVEMENT FUND - GENERAL INFORMATION

Or. Admin. R. 732-040-0000 Purpose of Rules

The rules in Chapter 732, Divisions 40, 42, and 44 establish the procedures and requirements for the administration of the Statewide Transportation Improvement Fund (STIF) to improve public transportation service in Oregon.

History

Statutory/Other Authority: ORS 184.758, ORS 184.619 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0005 Definitions

The following definitions apply to rules in Chapter 732, Divisions 40, 42, and 44:

(1) “Advisory Committee” means either a committee formed by a Qualified Entity to assist the Qualified Entity in carrying out the purposes of the STIF Formula Fund and the Advisory Committee requirements specified in ORS 184.761(1) or a joint committee formed by two or more Qualified Entities for the same purposes, pursuant to ORS 184.761(5).

(2) “Agency” means Oregon Department of Transportation (“ODOT”).

(3) “Americans with Disabilities Act” (“ADA”) means section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990 as amended by the ADA Amendments Act of 2008.

(4) “Area Commission on Transportation” (“ACT”) means an advisory body chartered under the authority of the Commission, and subject to the Commission’s oversight and final decision-making authority.

(5) “Area of Responsibility” means the geographic area for which each Qualified Entity is responsible to provide STIF Formula Fund moneys.

(a) For a Qualified Entity that is a county, the Area of Responsibility is the geographic area within the county’s jurisdictional boundaries.

(b) For a Qualified Entity that is a Mass Transit or Transportation District that shares continuous jurisdictional boundaries with a county, the Area of Responsibility is the geographic area within the District’s jurisdictional boundaries.

(c) For a Qualified Entity that is a Mass Transit or Transportation District that does not share continuous jurisdictional boundaries with a county, the Area of Responsibility is the geographic area within the jurisdictional boundaries of the county or counties in which any part of the District is located.

(d) For a Qualified Entity that is an Indian Tribe, the Area of Responsibility is the geographic area on which the Indian Tribe’s Tribal Enterprises are located.

(6) “Biennium” (plural, “Biennia”) means a two-year period which runs from July 1 of an odd-numbered year to June 30 of the next odd-numbered year.

(7) “Calendar Year” means the year which begins on January 1 and ends on December 31.

(8) “Capital Asset” means real property or tangible items purchased or leased with STIF moneys, including without limitation vehicles and structures, with a purchase price of $5,000 or more and a useful life of at least one year.

(9) “Client-Only Project” means a project where the underlying transportation service is offered to a limited group of people and not made available to the general public.

(10) “Commission” means the Oregon Transportation Commission (“OTC”) established under ORS 184.612.

(11) “Community with a high percentage of low-income households” means either:

(a) A group of people living in geographic proximity to each other who have a higher percentage of low-income households than the state average; or

(b) A group of people sharing a common characteristic, such as enrollment in Medicaid, the Supplemental Nutrition Assistance Program (SNAP), or another income-eligible program, who have a higher percentage of low-income households than the state average, regardless of where any person within the group is located.

(12) “Discretionary Fund” means up to five percent of STIF funds to be disbursed to Public Transportation Service Providers, which includes Qualified Entities, through a competitive grant funding process, pursuant to ORS 184.758(2)(b).

(13) “Fiscal Year” means the Agency’s fiscal year which begins on July 1 and ends on June 30.

(14) “Governing Body” means the decision-making body or board of a Qualified Entity.

(15) “Indexed Minimum” means the smallest amount to be distributed under the Population-Based Formula and Payroll-Based Formula to any one Qualified Entity. This amount is tied to the minimum distribution of the STIF Formula program in the 2023-2025 Biennium, adjusted biennially by the rate of growth in the overall STIF Fund.

(16) “Indian Tribe” means a federally recognized Indian Tribe in Oregon that has members residing on a reservation or in tribal trust lands in Oregon.

(17) “Intercommunity Discretionary Fund” means up to four percent of STIF funds to be disbursed to Public Transportation Service Providers through a competitive grant funding process, pursuant to ORS 184.758(2)(c).

(18) “Intergovernmental Entity” means entities organized under ORS 190.010.

(19) “Local Plan” means a local or regional public transportation plan(s), which may include adopted policy(ies) that is developed and approved by the Governing Body of a Qualified Entity, Public Transportation Service Provider, or Metropolitan Planning Organization and which includes, at a minimum:

(a) A planning horizon of at least four years;

(b) An existing and future conditions analysis that includes:

(A) Current and forecast population and demographics, including locations of people who are often transit dependent, including low-income households, individuals of age 65 or older, youth, and individuals who are racially and ethnically diverse;

(B) Locations of existing housing, employment centers, medical and social and human services centers, major destinations, and other locations with needs for public transportation services and programs;

(C) Inventories of current Public Transportation Services located within, adjacent to, or with the reasonable potential to connect to the local or regional public transportation services, as applicable;

(d) Identified opportunities to coordinate public transportation services within and outside the county, district, or tribal area and with other agencies and areas to improve efficiency and effectiveness of service and reduce gaps in service.

(e) Local Plans include, but are not limited to: Coordinated Public Transit Human Services Transportation Plans, Transportation System Plans, Transit Development Plans, and Transit Master Plans.

(20) “Low-Income Household” means a household the total income of which does not exceed 200% of the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2) for the 48 Contiguous States and the District of Columbia.

(21) “Mass Transit District” means a district organized under ORS 267.010 to 267.390.

(22) “Operations Reserve Project funds" refer to funds set aside for a use as described in OAR 732-042-0015(4).

(23) “Payroll-Based Formula” means the portion of STIF Formula Funds disbursed per ORS 184.758(5).

(24) “Plan Contingency Project funds" refer to funds set aside for contingency use as described in OAR 732-042-0015(5).

(25) “Planned Carry Forward Project funds" refer to funds set aside for use in a future STIF Plan as described in OAR 732-042-0015(6).

(26) “Population-Based Formula” means the portion of STIF Formula Funds disbursed per ORS 184.758(3).

(27) “Prior STIF Plan Period funds" refer to Planned Carry Forward Project funds, Plan Contingency Project funds, Operation Reserve Project funds and Unused Project funds disbursed to a Qualified Entity that were not spent during the STIF Plan Period in which they were disbursed. For STIF Plans with an effective date prior to July 1, 2027, Prior STIF Plan Period funds also refer to any STIF Formula Fund moneys budgeted for a task categorized in the STIF Plan as a "Program Reserve/Contingency" and any STIF Formula Fund moneys budgeted for a Project described in the STIF Plan as a "Project using planned carry forward funding" that were not spent during the STIF Plan Period in which they were disbursed.

(28) “Project” means a public transportation improvement or maintenance activity or group of activities eligible for STIF moneys and a plan or proposal for which is included in a STIF Plan or in a grant application to a Qualified Entity or the Agency. Examples of project types include, but are not limited to: discrete activities, such as purchasing transit vehicles, planning, or operations; and groups of activities for a particular geographic area or new service, such as a new route that includes purchase of a transit vehicle, and maintenance and operations on the new route.

(29) “Public Corporation” means an independent legal entity that was formed by legislative action, serves a public purpose, and is under exclusive public management or control.

(30) “Public Transportation Advisory Committee” (“PTAC”) means the ODOT Public Transportation Advisory Committee established by the Commission in 2000.

(31) “Public Transportation Service Provider” means a Qualified Entity or a city, county, Special District, Intergovernmental Entity or any other political subdivision or municipal or Public Corporation that provides Public Transportation Services.

(32) “Public Transportation Services” means any form of passenger transportation by car, bus, or other conveyance, either publicly or privately owned, which provides service to the general public (not including charter, sightseeing, or exclusive school bus service) on a regular and continuing basis. Such transportation may include services designed to meet the needs of a specific user group, including for older adults and individuals with disabilities, for purposes such as health care, shopping, education, employment, public services, personal business, or recreation. Public Transportation Services must be designed and advertised as Shared-Ride Service.

(33) “Qualified Entity” means, a county in which no part of a Mass Transit District or Transportation District exists, a Mass Transit District, a Transportation District or an Indian Tribe.

(34) “Recipient” means a Qualified Entity that has a STIF Plan approved by the Commission and enters into an agreement with the Agency or a Public Transportation Service Provider that enters into an agreement directly with the Agency to receive STIF funds.

(35) “Satisfactory Continuing Control” means the legal assurance that a Capital Asset will remain available to be used for its originally authorized purpose throughout its useful life or until disposition.

(36) “Shared-Ride Service” means a service where neither the operator nor any passenger may refuse to permit additional passengers that are otherwise complying with the operator’s rules and policies.

(37) “Special District” means a service district organized under ORS 451.010(1)(h).

(38) “Statewide Transit Network” means the collection of all transit service that operates in Oregon.

(39) “STIF Formula Fund” means up to 90 percent of the Statewide Transportation Improvement funds to be disbursed to Qualified Entities conditioned upon the Commission’s approval of a STIF Plan, pursuant to ORS 184.758(2)(a).

(40) “STIF” or “Statewide Transportation Improvement Fund” means the fund established under ORS 184.751.

(41) “STIF Plan” means a public transportation improvement plan that is approved by a Governing Body and submitted to the Agency for review and approval by the Commission in order for the Qualified Entity to receive a share of the STIF Formula Fund.

(42) “STIF Plan Maximum” means the total amount of funding sought in a Qualified Entity’s Commission-approved STIF Plan. It does not include any Prior STIF Plan Period funds.

(43) “STIF Plan Period” means the effective date specified in a Commission-approved STIF Plan through the end date of the STIF Plan.

(44) “Student Transit Services” means Public Transportation Services within the Qualified Entity's area of responsibility that can feasibly and efficiently be used by students in grades 9 through 12.

(45) “Sub-Recipient” means any entity, including but not limited to a Public Transportation Service Provider, that has entered into an agreement with a Recipient in order to complete one or more tasks specified in the agreement between the Agency and the Recipient. A Sub-Recipient does not include an entity or person that a Recipient has identified as a contractor pursuant to OAR 732-042-0055.

(46) “These Rules” means OAR Chapter 732 Divisions 40, 42, and 44.

(47) “Transportation District” means a district organized under ORS 267.510 to 267.650.

(48) “Tribal Enterprise” means a commercial activity or business managed or controlled by an Indian Tribe.

(49) “Unused Project funds” are STIF Formula Fund moneys that a Qualified Entity included in the budget for a Project during a STIF Plan Period but did not spend during that STIF Plan Period. Unused Project funds do not include Planned Carry Forward Project funds, Plan Contingency Project funds or Operations Reserve Project funds. For STIF Plans with an effective date prior to July 1, 2027, Unused Project funds also do not include any STIF Formula Fund moneys budgeted for a task categorized in the Plan as a "Program Reserve/Contingency" and any STIF Formula Fund moneys budgeted for a Project described in the STIF Plan as a "Project using planned carry forward funding" that a Qualified Entity did not spend during the STIF Plan Period in which they were disbursed.

(50) “Work Group” means a subcommittee formed by a Qualified Entity's Governing Body or Advisory Committee for the purpose of providing additional input on STIF Formula Fund projects.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0010 Purpose and Use of STIF

(1) Moneys in the STIF are continuously appropriated to the Agency to finance investments and improvements in public transportation services, except that the moneys may not be used for light rail capital expenses, but may be used for light rail operations expenses. Moneys may be used to support Client-Only Projects where those projects are included in a planned and coordinated community transportation program.

(2) STIF moneys may be used for public transportation purposes that support the effective planning, deployment, operation, and administration of STIF-funded public transportation programs, including, but not limited to:

(a) Creation of new systems and services with origins, destinations or stops in Oregon;

(b) Maintenance or continuation of systems and services; and

(3) STIF moneys may be used as the local match for state and federal funds which also provide Public Transportation Service.

(4) The Agency shall conduct activities necessary to manage the STIF funds and grants, including but not limited to: development of policy; distribution of funds; developing and implementing application and review processes and agreement and protest procedures; conducting program oversight, statewide planning, research, training, and technical assistance; and reporting to the legislature.

(5) On or before December 31 of odd numbered years, the Commission shall submit a report in the manner provided by ORS 192.245 to the Joint Committee on Transportation established under ORS 171.585(1) on the implementation and outcomes of the STIF. The Agency shall prepare reports for the purposes of:

(a) Ensuring that STIF moneys are being used for the purpose of funding and improving Public Transportation Services in Oregon consistent with law, these rules, and the terms of agreements;

(b) Measuring the outcomes of the STIF; and

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0015 Audit and Compliance Review Requirements

(1) Recipients shall conduct an annual financial audit of the STIF moneys received using the document entitled “Agreed Upon Procedures” made available by the Agency on the Public Transportation Division Website. A Recipient that is a Qualified Entity shall ensure any Sub-Recipient conducts an annual financial audit of STIF moneys received using the Agreed Upon Procedures.

(2) Recipients shall submit the report of the annual financial audit of STIF moneys received to the Agency within 30 calendar days after the auditee receives of the auditor’s final report(s) or nine months after the end of the Recipient’s audit period, whichever is earlier.

(3) Recipients shall be subject to periodic on-site compliance reviews by the Agency. The purpose of the compliance site review is to ensure that Recipients have appropriate, adequate internal controls and management procedures to meet the terms and conditions of agreements governing the disbursement of STIF moneys. Compliance reviews may cover the following topics, as applicable: program management; financial management; operations management, procurement, use and maintenance of equipment; records retention; compliance with state and federal civil rights laws; compliance with FTA drug and alcohol regulations; and compliance with the ADA.

(4) Recipients shall permit the Agency, the Secretary of State of the State of Oregon, or their authorized representatives, upon reasonable notice, access to all data and records relating to STIF moneys received or disbursed and to inspect the STIF Plans and Projects financed with STIF moneys including, but not limited to, the financial records, physical premises and Capital Assets used to deliver public transportation services.

(5) Recipients shall ensure that their agreements or contracts with Sub-Recipients or contractors, as identified by the Recipient pursuant to OAR 732-042-0055, include provisions which permit the Agency, the Secretary of State of Oregon, or their authorized representative, access to data and records held by the Sub-Recipient or contractor as described in section (4) of this rule.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 1-2025, temporary amend filed 05/12/2025, effective 07/01/2025 through 12/27/2025
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0020 Accounting Requirements

(1) The Agency shall account separately for moneys in the STIF Formula Fund, Discretionary Fund, and Intercommunity Discretionary Fund.

(2) Recipients shall manage STIF moneys in separate governmental accounts for each of the applicable STIF funds: STIF Formula Fund, STIF Discretionary Fund, and STIF Intercommunity Discretionary Fund. Any interest accrued must be added to the moneys and must be reported to the Agency 60 days after the end of the Fiscal Year in which it was earned.

(3) Recipients shall document the expenditure of all STIF funds disbursed by the Agency. Recipients shall create and maintain all expenditure records in accordance with generally accepted accounting principles and in sufficient detail to permit the Agency to verify how the STIF funds were expended.

(4) Record Retention:

(a) Recipients shall maintain all financial records for at least three years after the Agency’s final disbursement under the STIF Plan or grant agreement; and

(b) Recipients shall maintain all records relating to Capital Assets for three years after disposition.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0025 Qualified Entity Reporting Requirements

In addition to any other reporting required by these rules, Qualified Entities that receive STIF moneys, or Sub-Recipients as relevant to section (3) of this rule, shall submit the following documentation to the Agency:

(1) A report on any actions taken by any Public Transportation Service Provider located within the area of the Qualified Entity to mitigate the impact of the STIF tax on passengers who reside in low-income communities. The report must explain how it defines and identifies passengers in low-income communities. This report must be submitted no later than 60 days after the end of each Fiscal Year in which the Qualified Entity receives STIF moneys.

(2) The Qualified Entity’s adopted annual budget for the upcoming Fiscal Year must be submitted no later than 30 days after adoption.

(3) The results of any relevant financial audits of the Qualified Entity or any Sub-Recipient located within the area of the Qualified Entity, as required by a local, state or federal oversight agency for the purposes of statewide reporting including, but not limited to:

(a) The state financial report required under ORS 291.040;

(b) The results of any comprehensive review completed by the Federal Transit Administration or the Agency; and

(c) Any information submitted by the Qualified Entity as part of the requirements of a statewide audit in accordance with the federal Single Audit Act of 1984 (31 U.S.C. 7501 to 7507), as amended by the Single Audit Act Amendments of 1996 (P.L. 104-156).

(4) Results of audits described in section (3) of this rule must be submitted to the Agency no later than 30 days after receipt of the final results. A copy of information submitted under section (3)(c) of this rule must be sent to the Agency no later than 30 days after submittal to the requesting agency.

(5) The Agency may withhold future distributions of STIF moneys from a Qualified Entity which fails to submit an annual report required under rule.

(6) A Qualified Entity may appeal the Agency’s decision to withhold STIF Formula Fund moneys as described in OAR 732-040-0050.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0030 Advisory Committees

(1) The Governing Body of each Qualified Entity shall appoint an Advisory Committee for the purpose of advising and assisting the Qualified Entity in carrying out the purposes of the STIF and prioritizing Projects to be funded by STIF moneys received by the Qualified Entity.

(2) A Qualified Entity's Governing Body or Advisory Committee may appoint a Work Group to provide additional input on STIF Formula projects. A Work Group may or may not be composed of members of the Qualified Entity's Advisory Committee. Input from the Work Group shall be considered and documented in the Qualified Entity's Advisory Committee's meeting minutes in the completion of its duties as described in OAR 732-040-0030(1).

(3) Two or more Governing Bodies may appoint a joint Advisory Committee for the purpose of advising and assisting their respective Qualified Entities in carrying out the purposes of the STIF for the Qualified Entities’ areas of responsibility.

(a) When the Governing Boards of two or more Qualified Entities appoint a joint Advisory Committee, they shall designate their respective roles and responsibilities pertaining to the management of the joint Advisory Committee in a written agreement pursuant to ORS chapter 190. At a minimum, the written agreement must specifically identify how the Qualified Entities’ obligations under section (4) of this rule will be allocated between or among the participating Qualified Entities and must describe the selection and appointment processes for joint Advisory Committee members, consistent with OAR 732-040-0035.

(b) The Qualified Entities shall send a copy of the executed agreement to the Agency within 30 days of execution.

(c) The joint Advisory Committee agreement may be included as part of the agreement required to fulfill the requirements of OAR 732-040-0040, if applicable; however, Qualified Entities may form a joint Advisory Committee without agreeing to jointly manage STIF moneys.

(d) Each Qualified Entity that is party to a joint Advisory Committee agreement remains independently responsible to submit its own STIF Plan pursuant to OAR 732-042-0015 and these rules.

(4) An Advisory Committee may also advise the Qualified Entity regarding the opportunities to Coordinate STIF funded Projects with other local or regional transportation programs and services to improve transportation service delivery and reduce gaps in service.

(5) The Qualified Entity shall ensure that:

(a) The Advisory Committee is guided by written bylaws that include, at a minimum: the Committee’s name and purpose; the number of Committee members; Committee membership criteria; the appointment process; the terms of office for the committee members; the Committee’s meeting schedule; Committee procedures and member duties, including procedures to provide public notice of meetings, to foster public engagement, and to comply with Oregon public meeting and public records laws; and the Committee’s process to review Sub-Recipient proposals for Projects funded in whole or part by the STIF Formula Fund, the STIF Discretionary Fund and the Intercommunity Discretionary Fund, and the decision-making criteria identified in these rules. The Qualified Entity shall prepare the written bylaws described in this section and set the terms of office for the Advisory Committee members. The Qualified Entity may seek input on the bylaws from the Advisory Committee.

(b) Copies of Advisory Committee bylaws, meeting minutes and meeting notices are published by the Qualified Entity and made available for public review in a reasonable and timely manner and are maintained for the period prescribed under Chapter 166, Division 150 of the Oregon Administrative Rules.

(c) The Agency is notified of changes in the Advisory Committee membership when the Qualified Entity submits its STIF Plan or grant application.

(6) A Qualified Entity may use another standing advisory committee or combine committees to meet the requirements of these rules as long as that committee also meets all of the committee requirements contained herein.

(7) The Qualified Entity shall appoint an Advisory Committee composed of members that represent diverse interests, perspectives, geography, and the population demographics of the area, as described in OAR 732-040-0035.

(8) In addition to any other duties, the Advisory Committee may also propose any changes to the policies or practices of the Governing Body of the Qualified Entity that the Advisory Committee considers necessary to ensure that:

(a) A Sub-Recipient that has received STIF funds has applied the moneys received in accordance with and for the purposes described in the Project proposal; and

(b) A Project proposal submitted by a Sub-Recipient does not fragment the provision of public transportation services.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0035 Advisory Committee Composition

(1) If the Qualified Entity is an Indian Tribe, then the Advisory Committee must be composed of at least three members, each of whom must be able to represent the public transportation needs of individuals served by the Indian Tribe. The Governing Body may authorize a larger Advisory Committee.

(2) If the Qualified Entity is a Transportation District or county, then the Advisory Committee must be composed of at least five members. The Governing Body may authorize a larger Advisory Committee.

(3) If the Qualified Entity is a Mass Transit District, then the Advisory Committee must be composed of at least seven members. The Governing Body may authorize a larger Advisory Committee.

(4) If the Advisory Committee is a joint Advisory Committee formed by two or more Qualified Entities, then the minimum number of Advisory Committee members will be determined based on the types of Qualified Entities participating in the joint Advisory Committee. The minimum number of members of the joint Advisory Committee must be equal to the highest minimum number that would be required for each type of Qualified Entity participating in the joint Advisory Committee.

(5) To be qualified to serve on the Advisory Committee for a Qualified Entity that is a Transportation or Mass Transit District or county, or on a joint Advisory Committee in which a Transportation or Mass Transit District or county participates, an individual must:

(a) Be knowledgeable about the public transportation needs of residents or employees located within or traveling to and or from the Transportation or Mass Transit District or county; and

(b) Be a person who is a member of or represents one or more of the following:

(A) Local governments, including land use planners;

(B) People with disabilities;

(D) Low-income individuals;

(E) Social equity advocates;

(F) Environmental advocates;

(G) Black, indigenous, and people of color;

(H) Bicycle and pedestrian advocates;

(I) People with limited English proficiency;

(J) Public health, social and human service providers;

(K) Transit users who depend on transit for accomplishing daily activities;

(L) Individuals age 65 or older;

(M) educational institutions;

(N) Public Transportation Service Providers;

(O) Non-profit entities which provide public transportation services;

(P) Neighboring Public Transportation Service Providers;

(Q) Employers; or

(R) Major destinations for users of public transit.

(6) Notwithstanding other provisions of this rule, if a Qualified Entity is a Mass Transit District, a Transportation District or a county with a population of 50,000 persons or more, then its Advisory Committee, or the joint Advisory Committee in which it participates, must include at least four members who, separately, are members of or represent each of the following four groups:

(a) Low-income individuals;

(b) Individuals age 65 or older;

(d) Public Transportation Service Providers or non-profit entities which provide public transportation services.

(7) If a Qualified Entity is a county with a population fewer than 50,000 persons, then its Advisory Committee, or the joint Advisory Committee in which it participates, must include at least three members who collectively represent each of the groups listed in 732-040-0035(6)(a-d).

(8) A Qualified Entity that is a Mass Transit District or a Transportation District shall include Advisory Committee members from the district’s area of responsibility, both within and outside district boundaries. If a Mass Transit District or a Transportation District is party to a joint Advisory Committee agreement, the joint Advisory Committee must also include at least one member from outside the district’s boundary but within the district’s area of responsibility.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0040 Qualified Entity Management and Joint Management of STIF Funds

(1) Two or more Qualified Entities may jointly manage the STIF moneys disbursed to them. The Qualified Entities shall enter into a written agreement pursuant to ORS chapter 190.

(2) When two or more Qualified Entities jointly manage their STIF Formula Fund moneys, they shall designate their respective roles and responsibilities in the written agreement and shall send a copy of the executed agreement to the Agency within 30 days of execution.

(3) Qualified Entities intending to jointly manager STIF moneys under this rule may, but are not required to, establish a joint Advisory Committee as described in OAR 732-040-0030(2).

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0050 Appeal Procedures

(1) Appeals are allowed only in the following instances:

(a) A Qualified Entity may appeal the Commission’s rejection of its STIF Plan.

(b) A Qualified Entity may appeal the Agency’s decision to withhold STIF Formula Fund moneys.

(c) A Qualified Entity may appeal the Agency’s decision to take action with respect to a Capital Asset as described in OAR 732-042-0040(10).

(2) Appeals must be filed in writing within 15 days of the date the notice of appealable action was emailed by the Agency. A Qualified Entity that fails to file timely shall be deemed to have waived its appeal rights. Appeals must be addressed to the Commission and a copy must be sent to the Agency’s Division Administrator.

(3) Appeals must identify the appellant, the appellant’s designated contact person, and the decision under appeal. In addition, appeals must include the following information:

(a) For appeal of a Commission decision, the requested remedy and any arguments why the decision should be reconsidered.

(b) For appeal of an Agency decision, the requested remedy, any arguments pertaining to the appeal and any other material the appellant considers relevant to the appeal.

(4) Upon review or reconsideration, the Commission may make a decision to grant the requested remedy, deny the appeal, or, in the case of Agency decisions under appeal, remand the decision to the Agency with instructions to reconsider.

(5) The Commission shall review the appeal and make its decision within 90 days of receipt.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-040-0055 Creation of New Mass Transit District or Transportation District

(1) In the event that a Mass Transit District or Transportation District comes to exist in any part of a county or counties in which it did not previously exist, the Mass Transit District or Transportation District replaces the county(ies) in which it exists as Qualified Entity for the Area(s) of Responsibility previously attributed to that county(ies). Upon its existence, the Mass Transit District or Transportation District shall assume the Qualified Entity role previously held by the county(ies) in which any part of it exists with respect to all aspects of STIF Formula Fund administration for its Area(s) of Responsibility and for all purposes under These Rules.

(2) It is the goal of the Agency and the STIF Formula Fund program that such a transition between Qualified Entities be accomplished smoothly, efficiently and without disruption of Public Transportation Services. For that reason, a county which is a Qualified Entity shall provide notice to the Agency when it publishes notice of the first public meeting at which it will consider creating or establishing a Mass Transit District or Transportation District.

(3) Upon establishment of a Mass Transit District or Transportation District in any county or counties, Commission and Agency hereby recognize the Mass Transit District or Transportation District as the new Qualified Entity for the Area(s) of Responsibility formerly attributed to the county(ies) in which any part of the Mass Transit District or Transportation District exists.

(a) Within ten business days of coming into existence, the Mass Transit District or Transportation District must send Agency notice of the effective date of its existence, the name(s) of its designated contact person(s), and a copy of the legal documentation of its creation. Agency may reasonably delay any pending STIF Formula Fund disbursement under OAR 732-042-0010(5) until the Mass Transit District or Transportation District establishes a financial account.

(b) Agency and Commission shall consider all STIF Formula Fund program documents previously submitted to Agency or Commission by the county(ies) to have been assigned to and assumed by the Mass Transit District or Transportation District. Agency and Commission shall consider all responses or approvals previously made to the county(ies) to have been made to the Mass Transit District or Transportation District.

(c) Notwithstanding subsection (b) of this section, at its first public meeting, the Mass Transit District or Transportation District, consistent with its procedural requirements, may decide not to assume any or all STIF Formula Fund program documents previously submitted to Agency or Commission by the county(ies). If the Mass Transit District or Transportation District does not reject assumption of the STIF Formula Fund program documents by official act at its first public meeting, such documents and any responses or approvals previously made to them by Agency or Commission shall be irrevocably assumed by the Mass Transit District or Transportation District for the duration of the current STIF Formula Fund Cycle.

(d) If the Mass Transit District or Transportation District decides not to assume the STIF Plan(s) previously prepared by the county(ies) pursuant to OAR 732-042-0015 and approved by the Commission pursuant to OAR 732-042-0025:

(A) Agency shall accumulate STIF Formula Fund monies for the Mass Transit District or Transportation District as described in OAR 732-042-0030(1); and

(B) The Mass Transit District or Transportation District may submit a new STIF Plan to the Commission at any time during the current STIF Formula Fund Cycle.

(4) In coordination with the county, relevant Recipients or Sub-Recipients, and other parties as necessary, the Mass Transit District or Transportation District shall undertake all necessary tasks to carry out the Projects of the relevant STIF Plan(s), establish or transition Advisory Committee(s), and otherwise ensure a smooth transition of all Qualified Entity responsibilities from the county(ies) to the Mass Transit District or Transportation District. The Agency shall provide reasonable assistance and guidance to the new Qualified Entity to facilitate the transition, consistent with the respective roles of the Qualified Entity and the Agency.

(5) Following the establishment of a Mass Transit District or Transportation District, the county(ies) or other entity that was previously the Qualified Entity shall complete any remaining obligations under the STIF Plan(s) that have not been assumed by the new Qualified Entity, which includes any pending reporting requirements and disbursal of funds to PTSPs as identified in the STIF Plan(s) or transferring those funds to the Mass Transit District or Transportation District now serving as the Qualified Entity.

History

Statutory/Other Authority: ORS 184.619 & 184.758(3)(e)
Statutes/Other Implemented: ORS 184.752(2)(a) & 184.758(1)(a)
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 2-2020, adopt filed 01/24/2020, effective 01/24/2020

Division 42 STATEWIDE TRANSPORTATION IMPROVEMENT FUND - FORMULA

Or. Admin. R. 732-042-0000 Purpose

These rules establish procedures and requirements necessary for the administration of the Statewide Transportation Improvement Fund (STIF) Formula Fund, pursuant to ORS 184.758(1)(a). The STIF Formula Fund is intended to improve public transportation services for current and potential future Oregon transit users by distributing moneys to Qualified Entities.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0005 STIF Formula Fund Cycle

(1) The STIF Formula Fund cycle will be structured around a Biennium, with key dates and exceptions identified in these rules.

(2) After the first disbursement of STIF moneys following the enactment of Oregon Laws 2017, chapter 750, the Agency shall make disbursements quarterly beginning at the beginning of the first quarter of each Biennium, subject to the provisions of OAR 732-042-0010.

(3) No later than December 31 of each year, the Agency shall provide written notice to each Qualified Entity of the estimated allocation of STIF Formula Fund moneys for which it is eligible in the coming calendar year.

(4) As determined by the Agency, but at least four months prior to the beginning of a Biennium, Qualified Entities shall submit their STIF Plans to the Agency.

(5) Qualified Entities may prepare their STIF Plans for a period of one or two Biennia. The Commission may approve a STIF Plan for one or two Biennia.

(6) The Commission shall decide to accept or reject STIF Plans no later than July 1 of the coming Biennium.

(7) The Agency shall email notice of the Commission’s decision to affected Qualified Entities within seven days of the issuance of the Commission’s decision. A Qualified Entity may appeal a rejection of its STIF Plan as described in OAR 732-040-0050.

(8) During the first STIF Formula Fund Cycle after the enactment of Oregon Laws 2017, chapter 750, a Qualified Entity may submit its STIF Plan either three months or nine months after the effective date of OAR Chapter 732, Division 042. A Qualified Entity that submits a STIF Plan under this section shall submit a STIF Plan for a period that ends at the end of the 2019-2021 Biennium. The Commission shall decide to accept or reject a STIF Plan submitted under this section no later than four months after it is received by the Agency, following the approval procedures described in OAR 732-042-0025.

History

Statutory/Other Authority: ORS 184.619, 184.658 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 3-2024, amend filed 10/10/2024, effective 10/10/2024
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0010 STIF Formula Fund Calculation and Disbursement

(1) STIF Plan Agreements

(a) The Agency may not disburse STIF Formula Fund moneys to a Qualified Entity until the Commission has approved the Qualified Entity’s STIF Plan and the Legislative Fiscal Office and the State’s Chief Financial Officer have determined that there is sufficient revenue in the Statewide Transportation Improvement Fund to fund the STIF Formula Fund disbursements.

(b) Upon Commission approval of the Qualified Entity's STIF Plan, the Agency will enter into a STIF Plan Agreement with the Qualified Entity.

(c) The STIF Plan Agreement shall contain a remedy provision. For STIF Plans with an effective date on or after July 1, 2027, that remedy provision shall provide for escalating corrective actions for violations of the STIF Plan Agreement.

(2) The Statewide Transportation Improvement Fund Formula program shall be distributed pursuant to ORS 184.758 to a Qualified Entity with an approved STIF Plan and an executed STIF Plan Agreement as follows:

(a) First, the portion of the fund fixed to the 2019-2021 Biennium Statewide Transportation Fund disbursement, as adjusted by the growth of the overall fund pursuant to ORS 184.758(3), will be distributed to Qualified Entities by a population-based formula described in subsection (5)(a) of this rule to support transit services for older adults and individuals with disabilities.

(b) The remainder of the funds shall be distributed to Qualified Entities by the proportion of the taxes collected under ORS 320.550.

(3) Estimated Distributions:

(a) For distributions under subsection (2)(a) of this rule, the Agency shall distribute the Indexed Minimum to each Qualified Entity unless the Qualified Entity is entitled to a larger distribution based on the population calculation described in section (5) of this rule.

(b) For distributions under subsection (2)(b) of this rule, the Agency shall distribute the Indexed Minimum to each Qualified Entity unless the Qualified Entity is entitled to a larger distribution based on the wages calculation described in section (5) of this rule.

(4) Estimation of STIF Formula Fund Disbursements:

(a) The Agency shall estimate STIF Formula Fund disbursements based on the Agency’s projections of the amount of revenue appropriated to the fund, transit payroll tax to be collected, the Agency’s projections of minimum distributions as described under section (3) of this rule, and the proportionate share calculated for each Qualified Entity in section (5) of this rule.

(b) The Agency shall estimate the proportionate share annually.

(c) Estimated disbursements are not guaranteed. If revenues in the Statewide Transportation Improvement Fund are less than the Agency’s projections, the Agency may proportionately reduce quarterly payments to Qualified Entities from its estimated disbursements.

(5) Calculation of STIF Formula Fund Disbursements:

(a) The Agency shall calculate the proportionate share for each Qualified Entity under subsection (2)(a) of this rule by dividing the count of the population located within the boundary of the Qualified Entities’ areas of responsibility, by the total population of the state.

(A) The Agency shall use the population estimates calculated by Portland State University pursuant to ORS 190.520 for the basis of the population counts of Qualified Entities, except as to Indian Tribes.

(B) Each Indian Tribe that is a Qualified Entity will receive STIF moneys as a share of their tribal population residing in Oregon:

(i) Tribal population is defined as the members of each Tribe residing in Oregon;

(ii) Each Indian Tribe will provide to the Agency its population residing in Oregon by county of residence; and

(iii) The tribal populations will be subtracted from county populations before calculating the population of the Districts and counties.

(C) The Agency shall exclude from the calculation of proportionate shares any Qualified Entity that is entitled to the Indexed Minimum under subsection (3)(a) of this rule.

(b) The Agency shall calculate the proportionate share for each Qualified Entity under subsection (2)(b) of this rule by dividing the amount of wages paid by employers located within the boundary of the Qualified Entities’ areas of responsibility, by the total amount of the wages paid by employers statewide.

(A) The Agency shall use the final wage data collected by the Oregon Employment Department for the prior Calendar Year and reported to the Agency.

(B) The Agency shall exclude from the calculation of proportionate shares any Qualified Entity that is entitled to the Indexed Minimum under subsection (3)(b) of this rule.

(A) For the Population-Based Formula:

(i) The product of the amount of revenue collected in the preceding fiscal quarter attributed to the STIF Formula Fund for the portion described in section (2)(a), as reduced by the Indexed Minimum distributions required under subsection (3)(a) of this rule and funds held under OAR 732-042-0030, multiplied by the Qualified Entity’s proportionate share calculated in subsection (5)(a) of this rule; or

(ii) The Indexed Minimum as determined under subsection (3)(a) of this rule.

(B) For the Payroll-Based Formula:

(i) The product of the amount of revenue collected in the preceding fiscal quarter attributed to the STIF Formula Fund for the portion described in section (2)(b), as reduced by the Indexed Minimum distributions required under subsection (3)(b) of this rule and funds held under OAR 732-042-0030, multiplied by the Qualified Entity’s proportionate share calculated in subsection (5)(b) of this rule; or

(ii) The Indexed Minimum as determined under subsection (3)(b) of this rule.

(6) Distribution of STIF Formula Funds to Qualified Entities:

(a) The Agency shall disburse STIF Formula Funds to Qualified Entities in quarterly distributions.

(b) If more than one Mass Transit District or Transportation District is located within a single county, the Agency shall distribute the moneys to the larger district.

(c) A Qualified Entity’s STIF Plan Maximum is the total amount of STIF Formula Fund moneys that the Agency is authorized to disburse to the Qualified Entity during the STIF Plan Period.

(d) If there is a significant unexpected shortfall in revenues in the Statewide Transportation Improvement Fund, or if there has been an overpayment in a prior quarter, the Agency may proportionately reduce quarterly payments to Qualified Entities.

(e) Qualified Entities are not responsible for satisfying Sub-Recipients’ budgetary shortfalls or remedying delays in funding to Sub-Recipients for any reason beyond the Qualified Entities’ direct control.

(f) If a Qualified Entity’s proportionate share of STIF Formula funds calculated under section (5) of this rule is more than the Qualified Entity’s STIF Plan Maximum, the Agency will retain and hold excess moneys for distribution to the Qualified Entity at the beginning of the next STIF Plan period for which the Qualified Entity has a STIF Plan approved by the Commission, unless:

(A) The Qualified Entity amends its STIF Plan in accordance with the procedures described in OAR 732-042-0045; or

(B) The Qualified Entity does not have an approved STIF Plan for two consecutive biennia because the Qualified Entity did not submit a STIF Plan or the Commission rejected its STIF Plan. In either case, the Agency shall release any excess STIF Formula Funds in the manner described in OAR 732-042-0030(2) and (3).

(7) Distribution of STIF Funds from Qualified Entity to Sub-Recipient.

(a) For the portion of funds described in subsection (2)(a) of this rule:

(A) The Qualified Entity will determine the purposes for which the STIF Formula Fund moneys will be used, in accordance with its STIF Plan;

(B) The Qualified Entity may use procedures of its choice to distribute STIF Formula Fund moneys;

(C) The Qualified Entity that is a Mass Transit or Transportation District is responsible for funding Projects benefiting older adults and individuals with disabilities both within its boundaries and outside them in the surrounding county(ies);

(D) Projects outside the Mass Transit District or Transportation District will receive a proportionate amount of the STIF Formula Fund moneys based on the population outside the Mass Transit District or Transportation District;

(E) The proportion is based on population estimates calculated by Portland State University; and

(F) The Mass Transit District and Transportation District will report the distribution of STIF Formula Fund moneys in its application to the Agency.

(b) For the portion of funds described in subsection (2)(b) of this rule:

(A) Qualified Entities shall work collaboratively with Public Transportation Service Providers and other potential Sub-Recipients, as relevant, to develop a method for sub-allocating STIF Formula Fund moneys to Public Transportation Service Providers. The Qualified Entity and Public Transportation Service Providers may collaboratively develop factors used to formulate the sub-allocation method.

(B) If the Qualified Entity and Public Transportation Service Providers do not collaboratively develop factors used to formulate the sub-allocation method, the sub-allocation method shall be based solely on the proportionate amount of payroll tax revenue generated within the geographic territory of each Public Transportation Service Provider based on data provided by the Agency.

(C) A Qualified Entity shall share all data used to develop the sub-allocation method with each Public Transportation Service Provider and other potential Sub-Recipients, as relevant, included in its STIF Plan.

(D) A Qualified Entity that is a Mass Transit or Transportation District which does not share contiguous jurisdictional boundaries with a county shall work collaboratively with Public Transportation Service Providers and other potential Sub-Recipients to develop an estimate of STIF Formula Fund disbursements for those areas of the county(ies) in which the District is located that are outside the District’s own jurisdictional boundaries.

(c) The sub-allocation method is not an entitlement to the Public Transportation Service Provider and decision criteria may affect the prioritization of Projects.

(8) Qualified Entities shall notify the Agency in writing of any adjustment to the geographic boundaries of their areas of responsibility within thirty days of the effective date of the adjustment.

(9) A Qualified Entity shall carry forward all Prior STIF Plan Period funds either by an amendment to a STIF Plan made pursuant to OAR 734-042-0045 or by identifying the funds in a future STIF Plan in a manner consistent with OAR 734-042-0015.

(10) Each Qualified Entity is required to spend at least one percent of STIF Formula Fund moneys received each year on Student Transit Services for students in grades 9 through 12, if practicable.

History

Statutory/Other Authority: ORS 184.619, 184.758, 184.761 & 184.766
Statutes/Other Implemented: ORS 184.642, 184.751-184.766 & 323.457
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 1-2025, temporary amend filed 05/12/2025, effective 07/01/2025 through 12/27/2025
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0015 STIF Plan Contents

(1) A Qualified Entity shall adopt a written STIF Plan to establish a list of Projects for public transportation located within the Qualified Entity’s area of responsibility to guide STIF Formula Fund investments.

(a) A STIF Plan must cover at least a Biennium, but it may include up to two Biennia subject to Commission approval.

(b) A STIF Plan must address the transportation needs of people residing in or traveling into and out of the Qualified Entity’s area of responsibility.

(c) A Qualified Entity that is a Mass Transit District or Transportation District with jurisdictional boundaries within a county or counties which are not Qualified Entities shall adopt a STIF Plan that considers the Public Transportation Services for the area outside of district boundaries but within the remainder of the county or counties.

(d) A STIF Plan may be included in a Qualified Entity’s Local Plan or it may be a stand-alone plan.

(e) A STIF Plan must include a description of the Qualified Entity’s method to sub-allocate STIF Formula Fund moneys to Public Transportation Service Providers and other potential Sub-Recipients and the process for developing the method.

(f) A STIF Plan with an effective date prior to July 1, 2027 must contain an explanation of how the plan defines and identifies communities with a high percentage of Low-Income Households. A STIF Plan with an effective date on or after July 1, 2027 shall use the definition of “community with a high percentage of low-income households” in OAR 732-040-0005(11).

(2) A Qualified Entity’s STIF Plan must contain the following sections:

(a) Descriptions of Proposed Projects: For each proposed Project, the STIF Plan must include the factors listed in section (3) of this rule.

(b) Summary of Planned Expenditures: The STIF Plan must include a summary listing:

(A) The total funding sought in the STIF Plan;

(B) The total funding sought for each Recipient or Sub-Recipient; and,

(C) For Qualified Entities that are Mass Transit Districts or Transportation Districts which do not share contiguous jurisdictional boundaries with a single county, the total funding sought by geographic area inside and outside the district’s jurisdictional boundary but within its area of responsibility.

(c) Summary of Prior Expenditures on Specific Improvements: If the Qualified Entity received STIF Formula Funds in the preceding two Fiscal Years, the STIF Plan must include a summary of the amount of moneys allocated to fund each of the following:

(A) Increased frequency of bus service schedules in communities with a high percentage of Low-Income Households;

(B) The expansion of bus routes and bus services to reach communities with a high percentage of Low-Income Households;

(C) Fund the implementation of programs to reduce fares for public transportation in communities with a high percentage of Low-Income Households;

(D) The procurement of buses that are powered by natural gas, electricity or other low or no emission propulsion for use in areas with populations of 200,000 or more;

(E) The improvement in the frequency and reliability of service connections between communities inside and outside of the Qualified Entity’s service area;

(F) Coordination between Public Transportation Service Providers to reduce fragmentation in the provision of transportation services;

(G) Implementation of programs to provide Student Transit Services for students in grades 9 through 12;

(H) Implementation of programs that enhance services for older adults and people with disabilities; and

(I) Support for the operation of existing service.

(d) Summary of Current Projects: The STIF Plan must include a summary of Projects recommended by the Qualified Entity’s Advisory Committee for the duration of the STIF Plan, identified by Fiscal Year.

(e) Advisory Committee Information: The STIF Plan must include a list of the Qualified Entity’s current Advisory Committee and the online or other location(s) where Advisory Committee materials may be reviewed as described in OAR 732-040-0030(4)(b). In addition, the STIF Plan must include a statement that the Qualified Entity consulted with its Advisory Committee as required by these rules and, if applicable, an explanation of why the Advisory Committee’s recommendation was not adopted by the Governing Body.

(f) Recipient Accountability Methods: The STIF Plan must include a description of the methods the Qualified Entity will use to ensure that it complies with these rules and achieves the goals identified in the STIF Plan.

(g) Sub-Recipient Accountability Methods: The STIF Plan must include a description of the methods and agreement or contract language that the Qualified Entity will use to oversee its Sub-Recipients, address deficiencies in Sub-Recipient performance, and to ensure that the Qualified Entity can accomplish the applicable requirements of these rules, including but not limited to audit and compliance requirements, accounting requirements, capital asset requirements and reporting requirements.

(h) Remediation Strategies: If the Qualified Entity has submitted three or more Quarterly Reports within the past two years which indicate that it failed to substantially comply with its approved STIF Plan, the STIF Plan must include a description of the Qualified Entity’s strategies to ensure that it will substantially comply with the proposed STIF Plan.

(i) Governing Body Adoption: The STIF Plan must include documentation that the Governing Body approved the STIF Plan prior to its submittal to the Agency. If STIF Formula funds will be jointly managed by two or more Qualified Entities, the STIF Plan must include documentation demonstrating each Governing Body’s commitment to joint management.

(3) The STIF Plan must include descriptions of each proposed Project as described below. A Qualified Entity shall include in its STIF Plan only Projects which appear in a Local Plan. For proposed Projects, the STIF Plan must describe:

(a) Proposed funding level for each Project and a description of what the Qualified Entity intends to do with the STIF Formula Fund moneys it receives for the individual Project.

(b) Whether the Project would improve or expand public transportation or maintain an existing service. For Projects that would maintain an existing public transportation service, the STIF Plan must specify the amount and percentage of each Project budget for this purpose.

(c) Any anticipated benefits and discrete measurable outcomes associated with the Project and whether the Project advances each of the criteria listed at 732-042-0015(2)(c).

(d) Identification of the Local Plan(s) from which each Project was derived and identification of the board, council, commission, or other governing body which approved the Local Plan.

(e) The proposed Recipient or Sub-Recipient of the STIF Formula Fund moneys for that Project.

(f) A full budget including fund sources and for yet-to-be obligated fund sources, the timing for funding decisions, if known.

(g) For proposed Projects which are part of a larger multi-phase Project, the phasing plan including schedule and budget with known and potential funding sources identified.

(h) The amount of moneys from the STIF Formula Fund distribution that would be allocated to fund each of the criteria listed at 732-042-0015(2)(c).

(i) Identification of the extent to which the Project is consistent with Oregon Public Transportation Plan goals, policies, and implementation plans.

(j) At least one Project described in the STIF Plan must implement a program(s) to provide Student Transit Services for students in grades 9 through 12, if practicable, and allocate at least one percent of the Qualified Entity’s estimated STIF Formula Fund disbursement to that program(s) each year. In this instance, a program(s) is considered practicable when Public Transit Services within the Qualified Entity's area of responsibility can be feasibly and efficiently used by students in grades 9 through 12. If the Qualified Entity determines that it is not Practicable to identify such a Project or to allocate funding for this purpose, it shall specify in its STIF Plan the reason(s) for its determination.

(4) A STIF Plan may include an Operations Reserve Project or projects consisting of STIF Formula Fund moneys that may be transferred to any operations Project in the STIF Plan in the event of significant, unexpected declines in transit operations revenue, subject to the following provisions:

(a) A STIF Plan may include one Operations Reserve Project for the Qualified Entity and one for each Sub-Recipient that has a project in the STIF Plan. An Operations Reserve Project may also be shared between a Qualified Entity and one or more Sub-Recipients.

(b) If a STIF Plan includes an Operations Reserve Project for the Qualified Entity and one for each Sub-Recipient, then each Operations Reserve Project shall not exceed 12.5% of each entity’s operations expenses budgeted for use in the STIF Plan Period.

(c) If an Operations Reserve Project is to be shared between a Qualified Entity and one or more Sub-Recipients, it shall not exceed 12.5% of the total operations expenses budgeted for use in the STIF Plan period.

(5) A STIF Plan may include one or more Plan Contingency Projects consisting of STIF Formula Fund moneys that may be used for Project costs that were not foreseen at the time the Qualified Entity submitted a STIF Plan to the Commission for approval, subject to the following provisions:

(a) The total amount of funding included in all Plan Contingency Projects may not exceed 15% of the total expenditures budgeted for the STIF Plan period or an amount set by the QE's governing body, whichever is lower. For purposes of this subsection, total expenditures do not include STIF Formula fund moneys budgeted for Planned Carry Forward Projects and Operations Reserve Projects described in this rule.

(b) Plan Contingency Project moneys may not be used for an Operations Reserve Project or a Planned Carry Forward Project.

(6) A STIF Plan may include one or more Planned Carry Forward Projects for capital improvements that cannot be funded in a single STIF Formula Fund funding cycle or for bond payments on the acquisition of a Capital Asset. A Qualified Entity must specify in its STIF Plan the reason for the Planned Carry Forward Project and the deadline by which the Qualified Entity intends to expend all Planned Carry Forward Project funds. The Qualified Entity may not carry forward Planned Carry Forward Project funds beyond the deadline without Agency approval.

(7) If during a STIF Plan period the rate of the payroll tax imposed under ORS 320.550 is increased or decreased by more than 50%, the Agency may:

(a) Temporarily increase the percentage caps on the amount of funding that a Qualified Entity is allowed to include in its STIF Plan for Operations Reserve Projects and Plan Contingency Projects; or

(b) Temporarily increase the percentage of Unused Project funds that trigger the requirement for a Qualified Entity to provide the Agency with a written report of the reason the funds were not spent under OAR 732-042-0035(4).

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0020 Advisory Committee Review of Proposed Projects

(1) Sub-Recipients seeking STIF funding from a Qualified Entity through the Qualified Entity’s STIF Plan shall submit a Project proposal to the Qualified Entity’s Advisory Committee for review and approval. The Project proposal must include the contents described in OAR 732-042-0015(3).

(2) The Advisory Committee shall conduct its reviews and activities in compliance with its written bylaws, as described in these rules.

(3) The Advisory Committee shall meet as often as needed to advise the Qualified Entity and review Project proposals but no less than two times per year.

(4) The Advisory Committee shall:

(a) Hold public meetings, as applicable, to review every Project proposed for inclusion in the Qualified Entity’s STIF Plan;

(b) Recommend approval or rejection of proposed Projects and recommend prioritization of approved Projects within the geographic boundary for which the Qualified Entity receives STIF Formula funding to the Governing Body.

(5) When reviewing STIF Formula Fund Projects, the Advisory Committee shall consider:

(a) The extent to which a Project using Population-Based Formula funds would advance the considerations described in 732-042-0010(7)(a);

(b) The extent to which a Project using Payroll-Based Formula funds reflects the sub-allocation method created pursuant to 732-042-0010(7)(b), including any factors that the Qualified Entity and Public Transportation Service Providers have developed collaboratively pursuant to OAR 732-042-0010(7)(b)(A).

(6) The Advisory Committee may consider the following factors when reviewing STIF Formula Fund Projects, including but not limited to:

(a) The extent to which the Project would advance each of the criteria listed at 732-042-0015(2)(c).

(b) Whether the Project would maintain an existing service;

(d) The extent to which the Project might benefit or burden historically- or currently-marginalized communities both now and in the long term;

(e) The extent to which the Project would improve first- and last-mile connections to public transit and support multimodal integration;

(f) The extent to which the Project achieves geographic equity; and

(g) Other factors to be determined by the Advisory Committee.

(7) Prior to adopting a STIF Plan, the Governing Body shall consult its Advisory Committee regarding the Projects proposed in the STIF Plan and seek a recommendation on the prioritization of those Projects from the Advisory Committee. The purpose of this consultation is to ensure that the STIF Plans reflect a Coordinated regional approach to Public Transportation Service that considers the public transportation needs of people residing and traveling into and out of the geographic territory of a Qualified Entity as well as larger regional population centers and to ensure that interested parties have the opportunity to review and comment on the proposed STIF Plan.

(8) A Governing Body may accept the Advisory Committee’s recommendation to approve or reject a Project proposal, may return it to the Advisory Committee for modifications, or may modify it prior to inclusion in the STIF Plan for submittal to the Agency. If the Governing Body modifies the Advisory Committee’s recommendation, it shall inform any affected Public Transportation Service Provider of all modifications and the explanation for such changes.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0025 Commission Approval of STIF Plan

(1) The Agency shall review the STIF Plan submitted by a Qualified Entity for completeness and may ask the Qualified Entity to supply missing information or to provide clarification about the meaning or intent of any portion of the STIF Plan.

(2) The Agency shall submit each complete STIF Plan to the Public Transportation Advisory Committee (PTAC) for review.

(3) The PTAC shall timely determine whether it proposes to recommend that the Commission approve or reject all or a portion of the STIF Plan.

(a) If the PTAC determines that it will recommend rejection of all or a portion of the STIF Plan, it shall timely prepare a brief written statement of the reasons for its recommendation. Within three days of its receipt of the statement prepared by PTAC, the Agency shall provide notice of the PTAC’s intended recommendation and a copy of the statement of reasons to the Qualified Entity.

(b) The PTAC shall timely communicate its recommendation to the Commission.

(c) The PTAC, when making its recommendation and the Commission when making its decision on a STIF Plan shall consider the extent to which the STIF Plan meets the requirements described in OAR 732-042-0015(1), (2) and (3).

(4) A Qualified Entity that receives notice that the PTAC intends to recommend rejection of all or a portion of a STIF Plan under subsection (3)(a) of this rule may attach additional information and a revised STIF Plan for the Commission’s consideration to the STIF Plan originally submitted. The Qualified Entity shall provide the additional information to the Agency pursuant to a deadline established by the Agency. That deadline shall be no less than 10 days after the Agency has sent the Qualified Entity a notice of PTAC’s recommended rejection and a copy of the statement of reasons

(5) The Commission shall consider the PTAC’s recommendation and determine whether to approve or reject the STIF Plan originally submitted by the Qualified Entity or a revised STIF Plan submitted by the Qualified Entity under section (4) of this rule. If the Commission rejects a proposed STIF Plan, the Commission shall identify the reasons for the rejection and the Agency shall provide the reasons to the Qualified Entity in writing. Reasons for Commission rejection include, but are not limited to:

(a) The Qualified Entity did not establish an Advisory Committee or established one inconsistent with membership requirements in these rules;

(b) The Qualified Entity failed to confer with its Advisory Committee;

(c) The STIF Plan is incomplete or does not adequately explain how the Qualified Entity will accomplish the goals of the Projects in the STIF Plan, including Recipient Accountability Methods, Sub-Recipient Accountability Methods, or Remediation Strategies, if applicable;

(d) The STIF Plan does not contain the sections and elements listed in OAR 732-042-0015(1), (2) and (3); and

(e) Whether the Qualified Entity failed to expend STIF Formula funds in a manner that substantially complied with a prior approved STIF Plan.

(6) A Qualified Entity may file one appeal as described in OAR 732-040-0050 if its STIF Plan is rejected by the Commission.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0030 Qualified Entity Failure to Apply or Withdrawal from the STIF Formula Fund

(1) Unless a Qualified Entity has an approved STIF Plan and is receiving quarterly distributions, the Agency shall accumulate STIF Formula Fund moneys for which a Qualified Entity is eligible, as calculated by the Agency pursuant to OAR 732-042-0010, for a period of one Biennium.

(2) If a Qualified Entity fails to submit timely a STIF Plan for two consecutive STIF Formula Fund Cycles, as described in OAR 732-042-0005, the Agency shall release any STIF Formula Fund moneys accumulated for the Qualified Entity to the STIF Formula Fund generally for redistribution to other Qualified Entities.

(3) If a Qualified Entity timely submits a STIF Plan but the STIF Plan is rejected by the Commission for two consecutive STIF Formula Fund Cycles, as described in OAR 732-042-0005, and neither rejection is overcome by an appeal or reconsideration, the Agency shall release any STIF Formula Fund moneys accumulated for the Qualified Entity to the STIF Formula Fund generally for redistribution to other Qualified Entities.

(4) Qualified Entities eligible to receive STIF Formula Fund moneys may voluntarily withdraw from eligibility. A Qualified Entity intending to withdraw its eligibility shall notify the Agency of the decision to withdraw and the time period during which it wishes to withdraw its eligibility (such as the remainder of the current Biennium, all future Biennia, etc.). Upon the Qualified Entity’s withdrawal, the Agency shall release any STIF Formula Fund moneys accumulated or designated for the Qualified Entity to the STIF Formula Fund for redistribution to other Qualified Entities. During the period of withdrawal, the withdrawn Qualified Entity must be excluded from the Agency’s calculations under OAR 732-042-0010. A Qualified Entity may rescind its withdrawal at any time by written notice to the Agency. If a Qualified Entity rescinds its withdrawal, it will be eligible to receive STIF Formula Fund disbursements in the next STIF Formula Fund Cycle, contingent upon Commission approval of its STIF Plan under these rules.

(5) Any interest accrued on STIF Formula Fund moneys accumulated by the Agency under this rule must be credited to the STIF Formula Fund generally.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0035 Reporting Requirements

(1) Quarterly Reports: Using a form provided by the Agency, each Qualified Entity shall prepare a quarterly report to the Agency which details Project progress, outcomes achieved, and expenditures of STIF Formula Fund moneys by itself and its Sub-Recipients. In these quarterly reports, Qualified Entities shall provide information confirming that the funds disbursed under OAR 732-042-0010(2)(a) have been used to support transit services for older adults and individuals with disabilities. For STIF Plans with an effective date prior to July 1, 2027, the quarterly report must be submitted no later than 45 days following the end of the quarter. For STIF Plans with an effective date on or after July 1, 2027, the quarterly report must be submitted no later than 60 days following the end of a quarter. The fourth and eighth quarter reports may be preliminary reports, subject to adjustment after completion of the Qualified Entity’s audit.

(2) STIF Plan Period Reconciliation: Within 120 days of the end of an approved STIF Plan Period, the Agency shall reconcile disbursements made to the Qualified Entity during the previous STIF Plan period against the Qualified Entity’s reported expenditures. The Agency will provide written notice to the Qualified Entity of any Prior STIF Plan Period funds, the amount of Prior STIF Plan Period funds and the Qualified Entity’s option to amend its STIF Plan to incorporate the Prior STIF Plan Period funds. The Qualified Entity may amend its STIF Plan only in accordance with OAR 732-042-0045.

(3) Capital Asset Reports: Qualified Entities that have acquired, purchased or leased Capital Assets using STIF Formula Fund moneys shall provide the Agency with a report of the Capital Asset inventory, described in OAR 732-042-0040(2), including an identification of any sale, transfer or other disposition of the Capital Asset as described in OAR 732-042-0040. Capital Asset Reports must be submitted to the Agency on a schedule to be specified by the Agency, but must be submitted at least annually within 30 days of the end of each Fiscal Year.

(4) Unused Project funds report: A Qualified Entity shall provide a report to the Agency if:

(a) At the end of the STIF Plan period, the Qualified Entity has Unused Project Funds; and

(b) The amount of Unused Project funds exceeds 10% of the total amount of STIF Formula Fund moneys budgeted in the Qualified Entity’s prior STIF Plan, excluding the amount of STIF Formula Fund moneys budgeted for Planned Carry Forward Projects, Plan Contingency Projects, and Operations Reserve Project funds. For a prior STIF Plan with an effective date prior to July 1, 2027, the total amount of STIF Formula Fund moneys budgeted in the STIF Plan also excludes the amount of STIF Formula fund moneys budgeted for tasks categorized in the STIF Plan as a "Program Reserve/Contingency" and Projects described in the STIF Plan as a "Project using planned carry forward funding."

(c) The Unused Project funds report shall provide a written explanation of the reason that the Unused Project funds were not spent and shall be due 90 days after the receipt of the notice of the STIF Plan reconciliation by the Qualified Entity.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0040 Capital Asset Requirements

(1) Recipients shall ensure Satisfactory Continuing Control of a Capital Asset purchased or leased in whole or part with STIF funding throughout its useful life or until disposition.

(2) Recipients shall inventory Capital Assets purchased or leased in whole or part with STIF moneys. The inventory will include a description of the Capital Asset, date of purchase or lease, purchase price, amount of STIF moneys contributed to the purchase or lease, the source of other funds, the authorized use, the Recipient or Sub-Recipient using the Capital Asset, and the condition of the asset.

(a) If Capital Asset is a vehicle, the inventory must include the size of vehicle, the total number of passenger seats, the total number of ADA stations, the total number of seats when all ADA stations are deployed, the current mileage, and its current condition.

(b) If Capital Asset is an improvement to real property, such as a facility, building, or transit shelter, the inventory must include the location of the Capital Asset and its current condition.

(3) Vehicles may be replaced using STIF funding if:

(a) Public Transportation Service Provider holds clear title to the vehicle(s) being replaced. Salvage titles will not be accepted.

(b) The vehicle(s) has met the useful life guidelines established by Agency.

(4) To be eligible to receive STIF Formula Fund moneys to acquire revenue vehicle(s) for the expansion of transit service, a Qualified Entity shall demonstrate in its STIF Plan that the Recipient or Sub-Recipient who will acquire the Capital Asset has committed to continually use the vehicle for the approved purpose for the useful life of the vehicle(s).

(5) To be eligible to receive STIF moneys for a real property Capital Asset, such as a transit facility, bus barn, maintenance facility, land, or administration building, a Qualified Entity shall demonstrate in its STIF Plan one or more of the following:

(a) Recipient or Sub-Recipient ownership of the property upon which the Capital Asset will be located;

(b) Recipient or Sub-Recipient possession of an executed lease agreement for the property location that will be in place for the useful life of the Capital Asset;

(d) In the case of a Project which will utilize property owned by a local city, county or government, an executed intergovernmental agreement with the property owner guaranteeing ongoing use for the duration of the useful life of the Capital Asset; or

(e) In the case of a Project to purchase land, an option to purchase the land identified in the Project.

(6) Qualified Entities shall:

(a) Establish useful life standards for Capital Assets acquired pursuant to their STIF Plans which meet or exceed the duration of those established by the Agency.

(b) Use the Agency's published procedures or substantially similar procedures and ensure that Sub-Recipients use the same procedures for the disposition of Capital Assets acquired with STIF Formula Fund moneys.

(c) Retain the net proceeds from a sale or other disposition of a Capital Asset to reinvest in a future STIF Plan capital Project or return the net proceeds to the Agency. Net proceeds are the asset's original value less disposal proceeds, depreciation, and disposal costs. If non-STIF funds were used in the original purchase, then only the proportion representing STIF Formula Fund contribution to the purchase are subject to this rule.

(d) Establish written procedures to ensure that a Capital Asset is maintained in safe operating condition.

(e) Maintain insurance coverage, or require Sub-Recipients to maintain insurance coverage, that meets or exceeds the standards in ORS 806.070.

(f) Ensure that vehicles purchased in whole or in part with STIF Formula Fund moneys are titled with the Oregon Department of Transportation Driver and Motor Vehicle Services Division pursuant to ORS 803.045 and supporting rules, with the Agency listed as the primary security interest holder, subject to the following additional requirements:

(A) If the vehicle is registered in the name of a Sub-Recipient receiving the vehicle, and the Sub-Recipient is not a Qualified Entity or Public Transportation Service Provider, then the Qualified Entity or Public Transportation Service Provider must be listed on the vehicle title as the secondary security interest holder.

(B) If the vehicle was purchased with federal funds in addition to STIF Formula Fund moneys, and the federal funding source requires the vehicle to be titled otherwise than provided in this rule, then the federal titling requirements prevail.

(7) A Recipient shall notify the Agency of the sale, transfer or other disposition of a Capital Asset purchased with STIF Formula Fund moneys and shall report the use of proceeds, if any, from the sale to the Agency.

(8) A Recipient may transfer its interest in a Capital Asset to an asset of equal or greater value if the transfer is proposed in a STIF Plan which is approved by the Commission.

(9) When the Agency is a security interest holder in a Capital Asset, the Agency may exercise all of the rights provided to a secured lien holder under Oregon law, including without limitation, the ability to take control or possession of the Capital Asset if it determines either:

(a) That the asset is not being used for the purpose described in a STIF Plan under which it was funded in whole or part by STIF Formula Fund moneys; or

(b) If, during a compliance audit conducted pursuant to OAR 732-040-0015, the Agency determines the asset is not being maintained in a state of good operational repair.

(10) A Qualified Entity may file an appeal as described in OAR 732-040-0050 if the Agency takes action under section (9) of this rule with respect to a Capital Asset funded in whole or part by STIF Formula Fund moneys originally distributed to the Qualified Entity.

History

Statutory/Other Authority: ORS 184.619, 184.658 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-042-0045 Agency Amendment of STIF Plan

(1) No later than 90 days prior July 1 annually, a Qualified Entity with an approved STIF Plan for the current Biennium (an “Original STIF Plan”) may submit a proposed amended STIF Plan for the current Biennium (an “Amended STIF Plan”) to the Agency.

(2) The Amended STIF Plan must include documentation that the Governing Body approved the Amended STIF Plan prior to its submittal to the Agency. If STIF Formula funds will be jointly managed by two or more Qualified Entities, the Amended STIF Plan must include documentation demonstrating each Governing Body’s commitment to joint management.

(3) An Amended STIF Plan submitted under section (1) of this rule may amend one or both of the following elements of the Qualified Entity’s Original STIF Plan:

(a) The amount of Prior STIF Plan Period funds carried forward from the previous STIF Plan Period and the identification of the Projects to which those moneys will be allocated in the current Biennium; or

(b) Based upon the latest estimate of STIF Formula Fund distributions for the current Biennium provided by the Agency, the total funding sought in the STIF Plan and Identification of the projects to which those moneys will be allocated in the current Biennium.

(4) An Amended STIF Plan submitted under section (1) of this rule may:

(a) Neither add any new Projects to the Original STIF Plan nor

(b) Modify the description of Projects included in the Original STIF Plan, except that the description may be modified to reflect any changes to the anticipated benefits and discrete measurable outcomes associated with each Project with specific reference to whether the Project advances each of the criteria listed at 732-042-0015(2)(c).

(5) The Agency shall review all timely received proposed Amended STIF Plans. The Agency shall submit each completed Amended STIF Plan to PTAC for review and recommendation to the Commission. The Commission shall thereafter review and either approve or reject each proposed Amended STIF Plan.

(6) If an Amended STIF Plan is approved by the Commission, the Amended STIF Plan supersedes the Qualified Entity’s Original STIF Plan for the remainder of the current Biennium.

(7) If an Amended STIF Plan is rejected by the Commission, a Qualified Entity may file one appeal as described in OAR 732-040-0050.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.755-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2024, adopt filed 10/10/2024, effective 10/10/2024
PTD 2-2024, temporary adopt filed 05/09/2024, effective 05/09/2024 through 11/04/2024

Or. Admin. R. 732-042-0055 Contractor Compliance

(1) A Qualified Entity shall determine whether an entity with which it enters into an agreement to pass through STIF funds is a Sub-Recipient or a contractor according to the criteria set forth in this rule.

(2) A person or entity that receives STIF Formula funds from the Qualified Entity is a contractor if the person or entity's relationship with the Qualified Entity possesses characteristics of a procurement relationship. Characteristics of a procurement relationship may include, but are not limited to, that the person or entity:

(a) Provides the goods and services within normal business operations;

(b) Provides similar goods or services to many different purchasers;

(d) Provides goods or services that are ancillary to the implementation of the STIF program;

(e) Is not subject to compliance requirements of a state program as a result of the agreement. However, similar requirements may apply for other reasons;

(f) Is expected to deliver a limited service in conformity with the terms of its contract with the Recipient.

(3) The Agency may review a Qualified Entity’s determination that an entity is a contractor during the Agency's compliance site review of the Qualified Entity. If the Agency determines that an entity should have been classified as a Sub-Recipient rather than a contractor, the Qualified Entity shall alter its determination.

(a) If the entity that should have been classified as a Sub-Recipient has an agreement to receive STIF funds for a Project in a STIF Plan with an effective date on or after July 1, 2027, then the Qualified Entity must conduct a review of the entity pursuant to OAR 732-042-0050. The Agency may also issue a compliance finding or exercise remedies under the STIF Plan agreement with the Qualified Entity if necessary.

(b) If the entity that should have been classified as a Sub-Recipient has an agreement to receive STIF funds for a Project in a STIF Plan with an effective date prior to July 1, 2027, then the Qualified Entity must follow the Sub-Recipient Accountability procedures included in its STIF Plan pursuant to OAR 732-042-0015(2)(h) for the entity. The Agency may also issue a compliance finding or exercise remedies under the STIF Plan agreement with the Qualified Entity if necessary.

(4) A Qualified Entity is responsible for ensuring that a contractor’s use of STIF funds conforms with all relevant rules, statutes, and the terms of its agreement with the contractor.

(5) A Qualified Entity shall include provisions in its contract requiring that a contractor permit the Qualified Entity, Agency, the Secretary of State of the State of Oregon, or their authorized representatives, upon reasonable notice, access to all data and records relating to STIF moneys received and to inspect the Projects financed with STIF moneys including, but not limited to, the financial records, physical premises and Capital Assets used to deliver public transportation services.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, adopt filed 01/22/2026, effective 01/22/2026

Division 44 STATEWIDE TRANSPORTATION IMPROVEMENT FUND - DISCRETIONARY FUNDS

Or. Admin. R. 732-044-0000 Purposes of the Funds

(1) The Discretionary Fund is intended to provide a flexible funding source to improve public transportation in Oregon. It is not a source of ongoing operations funding.

(2) The Intercommunity Discretionary Fund is for improving connections between communities and between communities and other key destinations important for a connected Statewide Transit Network. As a competitive funding source, ongoing operations Projects are subject to risk of not receiving continuous funding.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2026, temporary amend filed 01/22/2026, effective 02/15/2026 through 08/13/2026
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0005 Project Eligibility and Match

(1) Projects eligible to receive grants under the Discretionary Fund include, but are not limited to: capital projects such as vehicles, facilities, equipment, and technology, as well as mobility management, planning, and research. Pilot operations projects may be considered for funding if the application includes a feasible financial plan for ongoing operations beyond the initial pilot period.

(2) Projects eligible to receive grants under the Intercommunity Discretionary Fund include, but are not limited to: capital Projects such as vehicles, facilities, equipment, and technology as well as mobility management, planning, research, and operations. Pilot and ongoing operations projects may be considered for funding under the Intercommunity Discretionary Fund if the application includes a feasible financial plan for ongoing operations beyond the initial pilot period.

(3) Projects eligible to receive grants under the Discretionary and Intercommunity Discretionary Funds must appear in a Local Plan, as defined in OAR 732-040-0005(17), or be a Project that meets one or more of the characteristics in sections (4)(a)(C)-(D) of this rule.

(4) Match Requirements:

(a) An applicant shall demonstrate the ability to provide a match of at least 20 percent of the total Project’s cost, unless any of the following characteristics exist in which case the applicant shall demonstrate the ability to provide a 10 percent match:

(A) The Project will predominantly serve or provide access to and from rural communities (communities outside of urbanized areas with populations of 50,000 people or less);

(B) The Project will serve an area located outside of a Public Transportation Service Provider’s geographic jurisdiction;

(D) The Project will provide statewide benefits to multiple Public Transportation Service Providers. The applicant shall identify the benefits to areas outside the jurisdiction where the Project will be located.

(b) After determining whether an applicant meets one or more of the characteristics listed in 732-044-0005(4)(a)(A-D), the Agency shall propose a match requirement of 20 percent or 10 percent of the total project cost for each Project recommended for award, considering both individual applicant needs and overall fund availability.

(c) Eligible Project match sources may include federal funds and certain state funds (STIF Formula or Special Transportation Funds) for public transportation purposes, local funds, private contributions, and in-kind labor or contributions. Match contributions, including Capital Assets such as property, shall be used only once as match on a single Project and may not be used again as a match. Fare box revenues are not eligible match.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0010 Solicitation and Application Submission Periods

(1) The Agency shall announce time periods and dates for submitting applications for funding.

(2) Applications that are rejected may be resubmitted during subsequent application submission periods.

(3) The Agency may combine Discretionary Fund and Intercommunity Discretionary Fund solicitations with each other or with other state or federal fund solicitations and offer them in a single grant solicitation cycle.

History

Statutory/Other Authority: ORS 184.619, ORS 184-658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0015 Application Requirements

(1) Public Transportation Service Providers interested in receiving discretionary STIF moneys shall submit a written application to the Agency.

(2) The Agency will prescribe the application format and content. At a minimum, for each Project proposed, the grant application must include:

(a) A description of the Project scope, schedule, budget, deliverables and expected quantifiable outcomes;

(b) A phasing plan for multi-phase Projects that is planned to be completed after the funding period specified in the solicitation;

(c) A description of how the Project will support the purpose, as applicable, of either the Discretionary Fund or the Intercommunity Discretionary Fund, as described in OAR 732-044-0000;

(d) A budget that specifies amounts by source, including match and any other funds that may be leveraged to complete the proposed Project;

(e) A list of any Sub-Recipients of the grant funds, if applicable;

(f) For capital construction Projects, documentation to validate the Project schedule and costs and documentation of control of any real property, as applicable;

(g) A description of the dollar amount and source of the applicant’s matching funds as described in OAR 732-044-0005(4); and

(h) A written explanation of how the applicant meets the Recipient Qualifications described in OAR 732-044-0020.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0020 Recipient Qualifications

(1) Only Public Transportation Service Providers are eligible to be Recipients of Discretionary Fund and Intercommunity Discretionary Fund moneys.

(2) Recipients shall meet, or demonstrate the capacity to meet, the following qualifications, as applicable to the type of Project being funded.

(a) Be an entity eligible to enter into agreements;

(b) Have the legal, managerial and operational capacity to perform the Project within the agreed schedule;

(d) Maintain compliance with federal, state and local laws and regulations including, and not limited to, those pertaining to passenger transportation, civil rights, labor, insurance, safety and health, as applicable;

(e) Comply with applicable laws, these rules, and the policies of the applicable grant fund;

(f) Properly use STIF moneys; and

(g) Perform the Project in a safe, prudent and timely manner.

(3) A Recipient may require additional eligibility qualifications of Sub-Recipients.

(4) The Recipient shall confirm the eligibility of a Sub-Recipient prior to distributing STIF moneys and entering into an agreement with the Sub-Recipient.

(5) The Recipient shall ensure that Sub-Recipients maintain eligibility while receiving STIF moneys.

(6) If the Agency determines that a Sub-Recipient has been ineligible for any period during which it receives STIF moneys, the Agency shall require the Recipient to repay moneys received by the Sub-Recipient during the period of ineligibility. If a Recipient determines that a Sub-Recipient becomes ineligible at any time when it was receiving STIF funds, the Recipient shall promptly notify the Agency’s STIF Administrator in writing.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0025 Advisory Committee Review of Projects Under the Discretionary STIF Funds

(1) The Agency shall provide a copy of any grant application it receives to the appropriate Qualified Entity.

(2) Each Qualified Entity that receives a copy of a grant application from the Agency shall review the application and provide a written funding recommendation on the Project to the Agency following consultation with its Advisory Committee or the joint Advisory Committee in which it participates.

(3) An Advisory Committee shall conduct its review and activities in compliance with its written bylaws, as described in OAR 732-040-0030.

(4) Each Qualified Entity shall submit its funding recommendation to the Agency within the timelines specified in the grant solicitation cycle.

(5) Each Qualified Entity may recommend a prioritized list of Projects that concern the Qualified Entity’s(ies’) area(s) of responsibility. Each Qualified Entity shall provide the prioritized list of Projects, if any, to the Agency within the timelines specified in the grant solicitation cycle.

(6) When reviewing a Project proposal for acceptance, rejection or prioritization, a Qualified Entity shall consider the extent to which the Project:

(a) Supports the Purpose, as applicable, of the Discretionary Fund or the Intercommunity Discretionary Fund, as described in OAR 732-044-0000;

(b) Meets the criteria established under OAR 732-044-0030(1); and

History

Statutory/Other Authority: ORS 184.619, 184.658, 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0030 Project Selection

(1) The Commission shall determine its investment priorities with input from the Public Transportation Advisory Committee prior to Agency public notice of grant solicitation for discretionary STIF moneys. The Commission’s investment priorities are:

(a) Improvement of Public Transportation Service to Low-Income Households;

(b) Improved Coordination between Public Transportation Service Providers and reduced fragmentation of Public Transportation Services;

(A) Integrated public transportation planning where affected communities planned or partnered to develop proposed Projects.

(B) Technological innovations that improve efficiencies and promote a seamless and easy to use Statewide Transit Network.

(D) Support or improvement of a useful and well-connected Statewide Transit Network;

(E) Elimination of first- and last-mile barriers to public transportation;

(F) Improving or maintaining connections to and between services and travel modes.

(d) Operations Projects that do not substantially rely on discretionary state funding beyond a pilot phase;

(e) Geographic equity or an ability to leverage other funds (these factors apply when all other priorities are held equal); and

(f) Other factors as determined by the Commission.

(2) The Agency shall review applications for compliance with the Application Requirements described in OAR 732-044-0015. The Agency may ask the applicants to supply missing information or to provide clarification about the meaning or intent of any portion of an application. Applicants shall respond to Agency inquiries within the time frame described in the solicitation documents.

(3) The Agency shall make Project applications available to ACTs for review and comment to the Public Transportation Advisory Committee.

(4) The Agency shall prepare a recommendation to Public Transportation Advisory Committee with a prioritized list of applications to be accepted and applications to be rejected considering input from the Advisory Committees and ACTs.

(5) The Public Transportation Advisory Committee shall review and recommend a list of prioritized Projects for funding to the Commission, considering input from the Agency, Advisory Committees, and ACTs.

(6) The Commission shall determine the acceptance or rejection of grant applications for discretionary STIF moneys.

(7) The Agency shall email notice of the Commission’s determination to applicants within seven days of the Commission’s determination.

History

Statutory/Other Authority: ORS 184.619, 184.758 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0035 Agreements

(1) The Agency and a Recipient shall enter into a written agreement after approval of the Recipient’s application for STIF moneys and prior to the disbursement of the approved funds. At a minimum, the agreement must include:

(a) A statement of work, describing the use of the STIF moneys;

(b) A beginning and termination date;

(c) Provisions which allow termination of the agreement, suspension of disbursement of funds, and which obligate the Recipient to repayment of funds, in accordance with these rules;

(d) Provisions to accomplish other applicable requirements of these rules, including but not limited to audit and compliance requirements, accounting requirements, capital asset requirements and reporting requirements;

(e) Provisions which permit withholding or require repayment of funds if the Recipient fails to comply with the requirements of the agreement or these Rules; and

(f) Provisions which recognize that the Recipient is responsible for the performance, oversight, and legal or regulatory requirements described in the agreement, and for management and repayment of STIF funds, regardless of any agreement which contains an assignment or delegation to a Sub-Recipient or any other party, and that any such agreement must be in writing.

(2) Project activities described on the grant application must be reflected in the Project descriptions as set forth in the grant agreement.

(3) The Recipient shall enter into written agreements with Sub-Recipients for projects funded with discretionary STIF moneys within 90 days of the Commission’s decision to award funding. Such agreements must include provisions obligating Sub-Recipients to carry out or assist Recipients to carry out, the obligations imposed by these rules, including but not limited to audit and compliance requirements, accounting requirements, reporting requirements, repayment of funds, and capital asset requirements.

(4) The Recipient shall submit copies of its agreements with Sub-Recipients to the Agency within 30 days of execution.

(5) The Recipient shall be responsible for performance, oversight, and legal or regulatory requirements described in its agreement with the Agency, and for management and repayment of STIF moneys, regardless of any agreement which contains an assignment or delegation to a Sub-Recipient or any other party. If a Recipient determines that a Sub-Recipient has failed to meet a term or condition of the agreement, the Recipient shall promptly notify the Agency in writing, identifying the Sub-Recipient and describing the nature of its failure.

(6) The Agency may terminate or suspend an agreement between itself and a Recipient, and may require repayment of funds by the Recipient to the Agency, if the Recipient fails to take appropriate action against a Sub-Recipient failing to comply with the written agreement between the Recipient and Sub-Recipient.

(7) Any unused discretionary STIF moneys will be de-obligated at the end of the agreement period and redistributed as part of the next Discretionary Fund or Intercommunity Discretionary Fund solicitation cycle, as applicable.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0040 Reporting Requirements

(1) Quarterly Reports:

(a) Using a form or web-based system provided by the Agency, each Recipient shall prepare a quarterly report to the Agency which details Project progress, outcomes achieved, and expenditures of discretionary STIF moneys by itself and its Sub-Recipients.

(b) The Agency may require additional documentation or deliverables appropriate to the type of Project specified in the grant agreement with the Recipient. Recipients may require additional reporting from its Sub-Recipient.

(c) The Quarterly report must be submitted no later than 45 days following the end of each quarter. The fourth and eighth quarter reports may be preliminary reports, subject to adjustment after the completion of the Recipient’s audit.

(2) Capital Assets: Recipients that have acquired, purchased or leased Capital Assets using STIF discretionary funds shall provide the Agency with a report of the Capital Asset inventory, described in OAR 732-044-0050. Recipients of Capital Assets will report regularly as specified by the Agency, during the period of useful life or exceeding useful life while still in use for public transportation of the Capital Asset.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0045 Withholding or Repayment of Funds

(1) The Agency may withhold payment of discretionary STIF moneys to, or seek reimbursement from, a Recipient if:

(a) The Recipient or its Sub-Recipient is not using STIF moneys in accordance with applicable laws, these rules or the terms of the agreement under which the funds were distributed;

(b) The Recipient or its Sub-Recipient has not submitted required reporting;

(d) The Agency determines that there is any unresolved compliance review finding relating to the use of STIF moneys.

(2) If an audit or a review of a Recipient or a Sub-Recipient’s implementation of an agreement under which STIF moneys were distributed determines that the Recipient or a Sub-Recipient used STIF moneys inconsistently with the agreement, the Recipient shall repay the STIF portion used improperly to the Agency.

History

Statutory/Other Authority: ORS 184.619, ORS 184.658 & ORS 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

Or. Admin. R. 732-044-0050 Capital Asset Requirements

(1) Recipients shall ensure Satisfactory Continuing Control of a Capital Asset purchased or leased in whole or part with STIF funding throughout its useful life or until disposition.

(b) If Capital Asset is an improvement to real property, such as a facility, building, or transit shelter, the inventory must include the location of the Capital Asset and its current condition.

(3) Vehicles may be replaced using STIF funding only if:

(a) Recipient holds clear title to the vehicle(s) being replaced. Salvage titles will not be accepted.

(b) The vehicle(s) has met the useful life guidelines established by Agency.

(4) To be eligible to receive discretionary STIF moneys to acquire vehicle(s), a Public Transportation Service Provider shall demonstrate in its grant application and grant agreement that the Recipient or Sub-Recipient who will acquire the Capital Asset has committed to continually use the vehicle for the approved purpose for the useful life of the vehicle(s).

(5) To be eligible to receive discretionary STIF moneys for a real property Capital Asset, such as a transit facility, bus barn, maintenance facility, land, or administration building, a Public Transportation Service Provider shall demonstrate in its grant application one or more of the following:

(a) Recipient or Sub-Recipient ownership of the property upon which the Capital Asset will be located;

(b) Recipient or Sub-Recipient possession of an executed lease agreement for the property location that will be in place for the useful life of the Capital Asset;

(e) In the case of a Project to purchase land, an option to purchase the land identified in the Project.

(6) Recipients shall:

(a) Establish useful life standards for Capital Assets acquired pursuant to their discretionary grant agreements which meet or exceed the duration of those established by the Agency.

(b) Use the Agency's published procedures or substantially similar procedures and ensure that Sub-Recipients use the same procedures for the disposition of Capital Assets acquired with STIF moneys.

(c) Retain the net proceeds from a sale or other disposition of a Capital Asset to reinvest in a future STIF capital Project or return the net proceeds to the Agency. Net proceeds are the asset's original value less disposal proceeds, depreciation, and disposal costs. If non-STIF funds were used in the original purchase, then only the proportion representing STIF contribution to the purchase is subject to this rule.

(d) Establish written procedures to ensure that a Capital Asset is maintained in safe operating condition.

(e) Maintain insurance coverage, or require Sub-Recipients to maintain insurance coverage, that meets or exceeds the standards in ORS 806.070.

(f) Ensure that vehicles purchased in whole or in part with STIF moneys are titled with the Oregon Department of Transportation Driver and Motor Vehicle Services Division pursuant to ORS 803.045 and supporting rules, with the Agency listed as the primary security interest holder, subject to the following additional requirements:

(B) If the vehicle was purchased with federal funds in addition to STIF moneys, and the federal funding source requires the vehicle to be titled otherwise than provided in this rule, then the federal titling requirements prevail.

(7) A Recipient shall notify the Agency of the sale, transfer or other disposition of a Capital Asset purchased with discretionary STIF moneys and shall report the use of proceeds, if any, from the sale to the Agency.

(8) Capital Assets purchased in whole or part with STIF discretionary moneys must be managed as described in this rule, unless otherwise specified in a written grant agreement approved by the Agency.

History

Statutory/Other Authority: ORS 184.619, 184.658 & 184.761
Statutes/Other Implemented: ORS 184.751-184.766
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018

OAR Chapter 732 — Department of Transportation, Public Transportation Division

Division 35 STANDARDS TO DETERMINE PROJECT ELIGIBILITY AND APPLICATION PROCEDURES FOR GRANTS UNDER THE OREGON STREETCAR PROJECT FUND PROGRAM

Or. Admin. R. 732-035-0010 Purpose

Or. Admin. R. 732-035-0020 Definitions

Or. Admin. R. 732-035-0030 Program Purpose and Requirements

Or. Admin. R. 732-035-0040 Program Development

Or. Admin. R. 732-035-0050 Submitting Applications

Or. Admin. R. 732-035-0060 Application Review

Or. Admin. R. 732-035-0070 Project Selection

Or. Admin. R. 732-035-0080 Project Administration

Division 40 STATEWIDE TRANSPORTATION IMPROVEMENT FUND - GENERAL INFORMATION

Or. Admin. R. 732-040-0000 Purpose of Rules

Or. Admin. R. 732-040-0005 Definitions

Or. Admin. R. 732-040-0010 Purpose and Use of STIF

Or. Admin. R. 732-040-0015 Audit and Compliance Review Requirements

Or. Admin. R. 732-040-0020 Accounting Requirements

Or. Admin. R. 732-040-0025 Qualified Entity Reporting Requirements

Or. Admin. R. 732-040-0030 Advisory Committees

Or. Admin. R. 732-040-0035 Advisory Committee Composition

Or. Admin. R. 732-040-0040 Qualified Entity Management and Joint Management of STIF Funds

Or. Admin. R. 732-040-0050 Appeal Procedures

Or. Admin. R. 732-040-0055 Creation of New Mass Transit District or Transportation District

Division 42 STATEWIDE TRANSPORTATION IMPROVEMENT FUND - FORMULA

Or. Admin. R. 732-042-0000 Purpose

Or. Admin. R. 732-042-0005 STIF Formula Fund Cycle

Or. Admin. R. 732-042-0010 STIF Formula Fund Calculation and Disbursement

Or. Admin. R. 732-042-0015 STIF Plan Contents

Or. Admin. R. 732-042-0020 Advisory Committee Review of Proposed Projects

Or. Admin. R. 732-042-0025 Commission Approval of STIF Plan

Or. Admin. R. 732-042-0030 Qualified Entity Failure to Apply or Withdrawal from the STIF Formula Fund

Or. Admin. R. 732-042-0035 Reporting Requirements

Or. Admin. R. 732-042-0040 Capital Asset Requirements

Or. Admin. R. 732-042-0045 Agency Amendment of STIF Plan

Or. Admin. R. 732-042-0055 Contractor Compliance

Division 44 STATEWIDE TRANSPORTATION IMPROVEMENT FUND - DISCRETIONARY FUNDS

Or. Admin. R. 732-044-0000 Purposes of the Funds

Or. Admin. R. 732-044-0005 Project Eligibility and Match

Or. Admin. R. 732-044-0010 Solicitation and Application Submission Periods

Or. Admin. R. 732-044-0015 Application Requirements

Or. Admin. R. 732-044-0020 Recipient Qualifications

Or. Admin. R. 732-044-0025 Advisory Committee Review of Projects Under the Discretionary STIF Funds

Or. Admin. R. 732-044-0030 Project Selection

Or. Admin. R. 732-044-0035 Agreements

Or. Admin. R. 732-044-0040 Reporting Requirements

Or. Admin. R. 732-044-0045 Withholding or Repayment of Funds

Or. Admin. R. 732-044-0050 Capital Asset Requirements

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