TITLE 43. TRANSPORTATION
PART 1. TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 2. ENVIRONMENTAL REVIEW OF TRANSPORTATION PROJECTS
SUBCHAPTER
I.
The Texas Department of Transportation (department) adopts amendments to §§2.302 - 2.306, and 2.308 concerning Memorandum Of Understanding With The Texas Commission On Environmental Quality. The amendments to §§2.302 - 2.306, and 2.308 are adopted without changes to the proposed text as published in the July 10, 2026 issue of the Texas Register (51 TexReg 4537) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS
Transportation Code, §201.607, requires the department to adopt a memorandum of understanding (MOU) with each state agency that has responsibilities for the protection of the natural environment or for the preservation of historic or archeological resources. Transportation Code, §201.607, also requires the department to adopt the MOU and all revisions to it by rule and to periodically evaluate and revise the MOU. The department has evaluated its MOU with the Texas Commission on Environmental Quality (TCEQ) adopted in 2019 and finds it necessary to make various changes to Chapter 2, Subchapter I, of the department's rules.
Amendments to §2.302, Authority, consist of some minor grammatical revisions.
Amendments to §2.303, Definitions, remove an outdated and unnecessary definition of "transportation enhancement." They also make some minor grammatical revisions.
Amendments to §2.304, Responsibilities, consist of a minor grammatical revision.
Amendments to §2.305, Coordination during Environmental Review Process, clarify that certain water quality-related information is required to be included in an environmental impact statement or environmental assessment only if a project is within five miles and drains to an impaired assessment unit. They also remove outdated language regarding a "Tier II 401 certification," which is no longer used by TCEQ. They also clarify the existing language regarding TxDOT's consideration of comments made by TCEQ after the comment deadline. They also make some minor grammatical revisions.
Amendments to §2.306, Exchange of Air Quality Information, clarify the existing language regarding air quality information to be provided by TCEQ to TxDOT upon TxDOT's request. The proposed rule language refers to "the counties included in any of the state's non-attainment areas, including nonattainment classifications and current design values for these areas." This is more accurate than the existing rule language, which refers to "the location and severity of conditions in non-attainment areas."
Amendments to §2.308, Review of MOU, revise the existing rule language regarding future reviews of the MOU every five years to specify that there would be no need for a rule revision if, at the end of a five-year interval, TxDOT and TCEQ were to agree that no changes to the MOU are needed.
COMMENTS
The General Land Office provided its determination that the rule amendments are consistent with Coastal Management Program goals and enforceable priorities. No other comments on the proposed amendments were received.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, §201.607, requiring the department to have an MOU with TCEQ and to adopt it by rulemaking.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Transportation Code, §§201.604, 201.607, and 201.752.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604155
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 416-3001
CHAPTER 9. CONTRACT AND GRANT MANAGEMENT
SUBCHAPTER
C.
The Texas Department of Transportation (department) adopts the amendments to §9.32 concerning Selection Processes, Contract Types, Selection Types, and Projected Contracts. The amendments to §9.32 are adopted without changes to the proposed text as published in the July 10, 2026 issue of the Texas Register (51 TexReg 4541) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS
The department's rules currently limit the terms of indefinite deliverable contracts procured for architectural, engineering, or surveying services using the federal selection process (federal ID contracts) to not more than five years, in accordance with 23 CFR §172.9(a)(3)(i). In practice, the Federal Highway Administration (FHWA) allows the department to extend certain federal ID contracts past a five-year term, after formal FHWA concurrence, which is currently requested by letter. FHWA has recommended that the department transition to a documented notification process instead of individual letters. The process will be defined in the department's manual, PEPS Contracting: Project Management for the Project Manager, which has been approved by the FHWA, as required by 23 CFR §172.5(c).
This rule change allows certain federally procured contracts to extend past five years, therefore, providing the department with more flexibility to complete projects.
Amendments to §9.32, Selection Processes, Contract Types, Selection Types, and Projected Contracts, add an exception to the five-year contracting period limit, which would permit the department to grant an extension more than five years with concurrence of the FHWA. Additionally, it delegates the approval to extend the four-year period to issue work authorizations to the executive director.
COMMENTS
No comments on the proposed amendments were received.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Government Code, Chapter 2254, Subchapter A and Transportation Code, §223.041.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604156
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 416-2037
CHAPTER 25. TRAFFIC OPERATIONS
SUBCHAPTER
A.
The Texas Department of Transportation (department) adopts the repeal of §25.3, concerning the installation of pay telephones. The repeal of §25.3 is adopted without changes to the proposed text as published in the July 10, 2026 issue of the Texas Register (51 TexReg 4545) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS
Section 25.3, Installation of Pay Telephones, was adopted in 1976 and has not been amended. With the widespread use of cell phones, pay telephone usage has all but disappeared. All pay phones that were installed under this section have been removed. The department and the Texas Regulatory Efficiency Office have agreed that this section should be repealed because it is no longer necessary.
COMMENTS
No comments on the proposed repeal were received.
STATUTORY AUTHORITY
The repeal is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department.
CROSS REFERENCE TO STATUTE
None.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604157
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 416-3200
CHAPTER 31. PUBLIC TRANSPORTATION
The Texas Department of Transportation (department) adopts the repeal of §§31.3, 31.16, and 31.57; new §31.3 and §31.57; and amendments to §§31.30, 31.31, 31.36, 31.40, and 31.43 - 31.50, all concerning the policies and procedures followed by the department in the administration of state and federal public transportation grant funds. The repeal of §§31.3, 31.16, and 31.57; new §31.57; and amendments to §§31.30, 31.31, 31.36, 31.40, and 31.43 - 31.49 are adopted without changes to the proposed text as published in the July 10, 2026 issue of the Texas Register (51 TexReg 4546) and will not be republished. New §31.3 and amendments to §31.50 are adopted with changes to the proposed text as published in the July 10, 2026 issue of the Texas Register (51 TexReg 4546) and will be republished.
EXPLANATION OF ADOPTED AMENDMENTS, REPEALS, AND ENACTMENTS
This rulemaking is necessary to respond to recent changes to federal public transportation program requirements and state grant management standards. Additionally, the Texas Regulatory Efficiency Office (TREO), in its Regulatory Efficiency Review of the department, recommended several changes to the definitions in §31.3; this rulemaking updates and streamlines the department's rules, addresses TREO's recommendations, removes obsolete program references, and amends language governing the allocation of funding for federal 5310 and 5339 grant programs.
Repeal of §31.3, Definitions, and enactment of new §31.3, Definitions, is necessary due to extensive amendments to align with federal definitions, to streamline and clarify language, and to remove outdated definitions.
Repeal of §31.16, Section 5309 Grant Program, is necessary because the department is no longer responsible for administering the Section 5309 program beginning with the Moving Ahead for Progress in the 21st Century (MAP-21) Act. Section 5309 program funds received prior to MAP-21 have been expended and all federal grants the department administers are closed.
Amendments to §31.30, Section 5339 Grant Program, update Federal Transit Administrations (FTA) Circular references and clarify that funds remaining, unobligated, or returned after the initial distribution of program funds through the established formula may be used by the department in accordance with federal requirements.
Amendments to §31.31, Section 5310 Grant Program, include clarifications, reorganization, and an update to the award process. Subsection (c) is amended to clarify the department's role and oversight responsibilities as the designated recipient for all §5310 funds. Subsection (d) is amended to update terminology and streamline the definitions of eligible subrecipients and alternate eligible subrecipients. Subsection (e) is amended to specify that the department will determine eligible expenses for federal reimbursement and match ratios in accordance with the applicable FTA Circular and that all expenses require department concurrence. Subsection (f) is amended to remove outdated language concerning local funding requirements. It is replaced with language establishing how the department will distribute §5310 program funds in a fair and equitable manner within the state in accordance with federal requirements. To maximize efficient use of available funds and streamline the award process, the department is moving to a competitive process for awarding funds rather than a formula allocation, as permitted by FTA program guidance. With this change, the language in subsection (g) regarding the allocation formula is no longer needed and is replaced with language moved from subsection (i) regarding public outreach. Subsection (h) is amended to update and clarify application requirements. Subsections (i), (j), and (k) are deleted as the language is no longer needed under the new competitive award process.
Amendments to §31.36, Section 5311 Grant Program, update FTA Circular references.
Amendments to §31.40, Public Involvement, remove references to obsolete federal programs under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA LU).
Amendments to §31.43, Contracting Requirements, streamline language by referencing the Texas Grant Management Standards.
Amendments to §31.44, Procurement Requirements, streamline language by referencing the Texas Grant Management Standards and update regulatory references. New subsection (b)(1)(C) adds a reference to the micro-purchase requirements in the Texas Grant Management Standards. New subsection (b)(1)(D) clarifies that formal solicitations must be conducted when procuring services requiring a professional license. New subsection (c)(1)(D) requires the subrecipient to provide to the department the determination that a winning bidder is a responsible entity. Existing subsection (c)(1)(D) is redesignated as (c)(1)(E).
Throughout §§31.45, Accounting and Financial Recordkeeping Requirements, 31.46, Reimbursement Procedures, 31.47, Audit and Project Close-Out Standards, and 31.49, Transportation Needs of Clients of Health and Human Service Agencies and Coordination of Services, "contractor" is replaced with "subrecipient" to clarify requirements.
Amendments to §31.48, Project Oversight, streamline language regarding the collection of transit data from subrecipients and strike references to obsolete federal programs.
Amendments to §31.50, Record Keeping and Inventory Requirements, clarify that an accurate inventory is required to be maintained for all capital assets funded in whole or in part by state or federal funding, not just vehicles.
Repeal of §31.57, Disposition, and enactment of new §31.57, Disposition, is necessary because of extensive amendments and reorganization. The section is significantly streamlined by referencing existing federal requirements for disposition of property and ensuring consistency between state and federal requirements.
COMMENTS
No comments on the proposed amendments, new sections, or repeal were received.
SUBCHAPTER
A.
STATUTORY AUTHORITY
The repeal is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604158
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 486-5977
43 TAC §31.3
STATUTORY AUTHORITY
The new section is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
§31.3.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:
(1) Allocation--A preliminary distribution of grant funds representing the maximum amount to be made available to an entity during the fiscal year, subject to the entity's completion of and compliance with all application requirements, rules, and regulations applicable to the specific funding program.
(2) Authority--A metropolitan transit or regional transportation authority created under Transportation Code, Chapter 451 or 452; a city transit department created under Transportation Code, Chapter 453, by a municipality having a population of not less than 200,000 at the time of its creation; or a coordinated county authority created under Transportation Code, Chapter 460.
(3) Commission--The Texas Transportation Commission.
(4) Department--The Texas Department of Transportation.
(5) Designated recipient--Has the meaning assigned by 49 U.S.C. §5302.
(6) Director--The director of the Public Transportation Division.
(7) Equipment--Has the meaning assigned by 49 CFR §625.5.
(8) Executive director--The executive director of the department.
(9) FTA--The Federal Transit Administration of the United States Department of Transportation.
(10) Fiscal year--The State's fiscal year.
(11) Large urban transit district--A local governmental entity or political subdivision of the state that provides and coordinates public transportation within an urbanized area with a population greater than or equal to 200,000 in accordance with Transportation Code, Chapter 458. The term includes urban transportation providers under Transportation Code, Chapter 456, that received state money through the department on September 1, 1994. The term does not include an authority.
(12) Metropolitan Planning Organization (MPO)--Has the meaning assigned by 23 U.S.C. §134.
(13) Nonprofit organization--Has the meaning assigned by the latest edition of FTA Circular 5010.1.
(14) Public transportation--Has the meaning assigned by the latest edition of FTA Circular 5010.1.
(15) Real property--Has the meaning assigned by the latest edition of FTA Circular 5010.1.
(16) Ridership--The number of passengers who board public transportation vehicles. A passenger is counted each time the passenger boards a vehicle even though the passenger might be on the same journey.
(17) Rural area--Has the meaning assigned by the latest edition of FTA Circular 5010.1.
(18) Rural transit district--Has the meaning assigned by Transportation Code, §458.001.
(19) Senior--Has the meaning assigned by 49 U.S.C. §5302.
(20) Small urban transit district--A local governmental entity or political subdivision of the state that provides and coordinates public transportation within an urbanized area with a population less than 200,000 in accordance with Transportation Code, Chapter 458. The term includes urban transportation providers under Transportation Code, Chapter 456, that received state money through the department on September 1, 1994. The term does not include an authority.
(21) Subrecipient--An entity that receives state or federal transportation funding from or through the department, rather than directly from FTA or another funding source.
(22) Urban transit district--A local governmental entity or political subdivision of the state that provides and coordinates public transportation within an urbanized area in accordance with Transportation Code, Chapter 458. An urban transit district is either small or large, as defined in this Section.
(23) Urbanized area--Has the meaning assigned by 49 CFR §673.5.
(24) U.S. DOT--United States Department of Transportation.
(25) Vehicle miles--The miles a vehicle travels while in revenue service, plus deadhead miles. This definition excludes miles a vehicle travels for charter service, school bus service, operator training, or maintenance testing.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604159
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 486-5977
SUBCHAPTER
C.
STATUTORY AUTHORITY
The repeal is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604160
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 486-5977
43 TAC §§31.30, 31.31, 31.36
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604161
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 486-5977
SUBCHAPTER
D.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604162
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 7, 2026
For further information, please call: (512) 486-5977
SUBCHAPTER
E.
STATUTORY AUTHORITY
The amendment and new rule are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
§31.50.
(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or federal public transportation funds administered by the department, subrecipients shall comply with the standards described in this section.
(b) Property records. The subrecipient shall maintain records that include:
(1) a description of the property;
(2) a serial number or other identification number; Passages with "Accountable executive";
(3) the source of the property;
(4) who holds title;
(5) the acquisition date and cost of the property;
(6) the percentage of state and the percentage of federal participation in the cost of the property;
(7) the location, use, and condition of the property; and
(8) any ultimate disposition data, including the date of disposal and sale price of the property.
(c) Inventory. The subrecipient shall cooperate with department representatives in performing at least once every two years a physical inventory of all real property and equipment, as defined in §31.3 of this chapter, purchased in whole or in part with state or federal capital funds administered by the department. However, during the time period between these physical inventories, the subrecipient shall promptly notify the department in writing of all changes in the status of that real property and equipment in order that department records may be kept current. On or before November 1 of each year the subrecipient shall provide the department with an accurate inventory of capital assets funded in whole or in part by state or federal funds administered by the department. Property shall remain on the department's and subrecipient's inventories until such time as the property is formally disposed of in accordance with the requirements outlined in §31.57 of this subchapter. Notwithstanding the foregoing, the subrecipient shall, where applicable, be bound by, and shall comply with, the inventory requirements specified in 2 C.F.R Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
(d) Control system. The subrecipient must develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property. The subrecipient shall investigate any loss, damage, or theft.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604163
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 486-5977
43 TAC §31.57
STATUTORY AUTHORITY
The repeal is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §456.022, which authorizes the commission to adopt rules necessary to allocate state funding among eligible public transportation providers and §455.002, authorizing the department to receive grants from a governmental source for use in performing the department's public transportation functions.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Texas Transportation Code, Chapters 455 and 456
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 24, 2026.
TRD-202604164
James Kirk
Deputy General Counsel
Texas Department of Transportation
Effective date: October 14, 2026
Proposal publication date: July 10, 2026
For further information, please call: (512) 486-5977