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U.S. Department of Transportation Federal Transit Administration Update on New Starts/Small Starts

U.S. Department of Transportation Federal Transit Administration Update on New Starts/Small Starts Northeast Association of State Transportation Officials Wilmington, DE June 17, 2010. New and Small Starts Program Overview. What is a New or Small Start?

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U.S. Department of Transportation Federal Transit Administration Update on New Starts/Small Starts

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  1. U.S. Department of Transportation Federal Transit Administration Update on New Starts/Small Starts Northeast Association of State Transportation Officials Wilmington, DE June 17, 2010

  2. New and Small Starts Program Overview What is a New or Small Start? New “fixed guideways” and extensions to existing systems Corridor based bus systems Includes light rail, heavy rail, commuter rail, bus rapid transit A Discretionary & Competitive Federal Grant Program $1.99 billion appropriated in Fiscal Year 2010 Demand for funds exceeds supply Historical average federal New Starts share = 50% Largest discretionary Obama Administration Livability program Evaluation – As directed in law, FTA evaluates and rates projects: Annually in a Report to Congress (due First Monday in February) For entry into Preliminary Engineering For entry into Final Design Prior to Full Funding Grant Agreement (FFGA) and construction Record – Over 100 major projects over 35 years 2

  3. New Starts/Small Starts Funding: Supply and Demand • Demand: • 25 New Starts projects in PE and Final Design • 10 Small Starts projects in Project Development • Total cost of pipeline: ~$35 billion, ~$15 billion in New/Small Starts funding • FTA tracking >100 corridor focused planning studies considering major transit capital investments • Supply: $1.8+ billion annually

  4. Minimum Project Development Requirements: Metropolitan Planning and Programming Requirements Project Management Technical Capability NEPA Approvals Other Considerations New Starts Rating Framework Summary Rating Project Justification Rating Financial Rating Other Factors Environmental Benefits (10%) Operating Efficiencies (10%) Cost Effectiveness (20%) Non-Section 5309 Share (20%) Capital Finances (50%) Economic Development (20%) Mobility Improvements (20%) Land Use (20%) Operating Finances (30%)

  5. Summary Rating Project Justification Rating Financial Rating Other Factors Land Use (33%) Cost Effectiveness (33%) Non-New Starts Share (20%) Capital Finances (50%) Economic Development (33%) Operating Finances (30%) Minimum Project Development Requirements: Metropolitan Planning and Programming Requirements Project Management Technical Capability Federal environmental Approvals (NEPA ) Other Considerations StatutorySmall Starts Project Rating Framework

  6. New Starts Budget Decision-Making • March 2005 - Budget Formulation Directive instituted • Created a threshold test: • March 2005 – Dear Colleague Letter: “the Administration will target its funding recommendations in FY 2006 and beyond to those proposed New Starts projects able to achieve a "medium" or higher rating for cost-effectiveness.”

  7. Summary Rating Project Justification Rating Financial Rating Other Factors Environmental Benefits (10%) Operating Efficiencies (10%) Cost Effectiveness (20%) Non-Section 5309 Share (20%) Capital Finances (50%) Economic Development (20%) Mobility Improvements (20%) Land Use (20%) Operating Finances (30%) New Starts Budget Decision-Making (continued) X _100 % X X X X X 2005 directive based the President’s Budget decision solely on cost-effectiveness

  8. Recent News New Starts Budget Policy Change • On January 13, Secretary LaHood announced the Obama Administration is restoring the statutorily prescribed process • March 2005 Dear Colleague letter is no longer in effect • In order to be recommended for funding in the budget, a project must receive an overall rating of at least “Medium”

  9. New New and Small StartsANPRM • On June 3, 2010 FTA published an Advanced Notice of Proposed Rulemaking (ANPRM) for Major Capital Investments • Seeking input on better ways to measure the wide range of benefits major transit investments provide • Targeted on three project justification criteria: • Cost effectiveness • Economic development • Environmental benefits

  10. Multiple outreach sessions to be held around the country • Public comment period ends August 2, 2010 • Submit comments to the docket at www.regulations.gov, docket number FTA–2010–0009

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