NPRM Overview, Subpart A and Discussion Items for Comment New/Small Starts Outreach Session Charlotte, NC October 9, 2007 Rich Steinmann Assistant to the.

NPRM Overview, Subpart A NPRM Overview, Subpart A and Discussion Items for and Discussion Items for CommentComment

New/Small Starts Outreach SessionNew/Small Starts Outreach SessionCharlotte, NCCharlotte, NCOctober 9, 2007October 9, 2007

Rich SteinmannRich SteinmannAssistant to the AdministratorAssistant to the Administrator

22

Outline for the SessionOutline for the Session Overview, Discussion Items, Subpart Overview, Discussion Items, Subpart

A - Brigid Hynes-CherinA - Brigid Hynes-Cherin Subpart B, New Starts – Rich Subpart B, New Starts – Rich

SteinmannSteinmann Subparts C and D, Small Starts - Subparts C and D, Small Starts -

Sean LibbertonSean Libberton Policy Guidance, Measures – Ron Policy Guidance, Measures – Ron

FisherFisher

33

Overall Purpose of the Overall Purpose of the SessionSession Describe the key provisions of the Describe the key provisions of the

NPRM and the policy guidance on NPRM and the policy guidance on measures measures

Highlight proposed changes from the Highlight proposed changes from the existing regulation and policyexisting regulation and policy

Answer questions to clarify provisions Answer questions to clarify provisions and provide the underlying rationaleand provide the underlying rationale

Encourage substantive comments to Encourage substantive comments to the docketthe docket – – comments made at this session are not comments made at this session are not officialofficial

– – comments due November 1, 2007comments due November 1, 2007

44

Tips for Submitting Tips for Submitting Effective CommentsEffective Comments Demonstrate an understanding of the Demonstrate an understanding of the

FTA rationale for the proposed provisionFTA rationale for the proposed provision Provide coherent discussion of reasons Provide coherent discussion of reasons

for supporting/opposing the provisionfor supporting/opposing the provision Provide cogent description of any Provide cogent description of any

proposed changes to provisionproposed changes to provision OR suggest a different alternativeOR suggest a different alternative

55

Underlying Principles Underlying Principles Used to Develop the Used to Develop the NPRM and Policy NPRM and Policy Guidance Guidance Projects admitted into PE have Projects admitted into PE have

resolved all planning issues and resolved all planning issues and have realistic and reliable forecasts have realistic and reliable forecasts of costs, benefits and impactsof costs, benefits and impacts

Measures are objective, based on Measures are objective, based on established research, and respond to established research, and respond to statutory criteriastatutory criteria

Project sponsors have the capability Project sponsors have the capability to generate information for to generate information for measuresmeasures

66

Difference in Effect of Difference in Effect of NPRM versus Policy NPRM versus Policy GuidanceGuidance NPRMNPRM

– Describes eligibility, criteria and key weights, Describes eligibility, criteria and key weights, ratings and project development processratings and project development process

– Changes require an amendment to the ruleChanges require an amendment to the rule Policy Guidance on Evaluation MeasuresPolicy Guidance on Evaluation Measures

– Describes weights and measures not Describes weights and measures not referenced in NPRM and how they will be referenced in NPRM and how they will be applied for ratingsapplied for ratings

– Changes require notice and comment before Changes require notice and comment before issuing revised policy guidanceissuing revised policy guidance

77

NPRM ContentsNPRM Contents Guidance on New Starts Policies and Guidance on New Starts Policies and

Procedures (issued Jan ‘06)Procedures (issued Jan ‘06)– 38 questions with comments, FTA 38 questions with comments, FTA

responses and proposalsresponses and proposals ANPRM for Small Starts (issued Jan ‘06)ANPRM for Small Starts (issued Jan ‘06)

– 20 questions with comments, FTA 20 questions with comments, FTA responses and proposalsresponses and proposals

Section-by-Section AnalysisSection-by-Section Analysis Additional Discussion Items for Additional Discussion Items for

CommentsComments NPRM ContentNPRM Content

88

NPRM OrganizationNPRM Organization

Subpart A – General ProvisionsSubpart A – General Provisions

- - Purpose and contentsPurpose and contents

- Applicability- Applicability

- Definitions- Definitions

- Measures of reliability in the Section - Measures of reliability in the Section 5309 capital investment evaluation 5309 capital investment evaluation and rating processand rating process

99

NPRM OrganizationNPRM Organization

Subpart B/C/D – New Starts/Small Subpart B/C/D – New Starts/Small Starts/Very Small StartsStarts/Very Small Starts

- - Eligibility Eligibility

- Project justification criteria- Project justification criteria

- Local financial commitment criteria- Local financial commitment criteria

- Overall project ratings - Overall project ratings

- Project development process- Project development process

1010

Discussion Item 1. Expand Discussion Item 1. Expand the definition of fixed the definition of fixed guideway guideway In addition to SAFETEA-LU changes, include In addition to SAFETEA-LU changes, include

facilities that achieve free-flow conditions facilities that achieve free-flow conditions through pricing, such as HOT lanesthrough pricing, such as HOT lanes– If transit uses a barrier-separated ROW ANDIf transit uses a barrier-separated ROW AND– 95% of the transit vehicles using the facility will 95% of the transit vehicles using the facility will

maintain an average speed of not less than 5 maintain an average speed of not less than 5 MPH below posted speed limitMPH below posted speed limit

Funds could only be used to construct that Funds could only be used to construct that portion of the facility that benefits transit portion of the facility that benefits transit and only if it meets New Starts criteriaand only if it meets New Starts criteria

Definition does not alter “fixed guideway Definition does not alter “fixed guideway mile” for purposes of calculating mile” for purposes of calculating distribution of funds under the formula distribution of funds under the formula program program

1111

Discussion Item 2. Cost Discussion Item 2. Cost effectiveness must include effectiveness must include all “essential project all “essential project elements”elements” If all elements needed to generate If all elements needed to generate

forecast year demand are not forecast year demand are not included, FTA will not rate project, included, FTA will not rate project, howeverhowever– What constitutes a “betterment” which is What constitutes a “betterment” which is

appropriately funded with local fundsappropriately funded with local funds– Can improvements needed beyond the Can improvements needed beyond the

planning time frame be included in the planning time frame be included in the financial plan and CE calculation but not financial plan and CE calculation but not the FFGA application (“rightsizing”)the FFGA application (“rightsizing”)

1212

Discussion Item 3. Use an Discussion Item 3. Use an extremely simplified extremely simplified evaluation framework for evaluation framework for Small StartsSmall Starts Use financial commitment as a readiness Use financial commitment as a readiness

condition, not a rating factorcondition, not a rating factor Rate projects as high, medium or low for Rate projects as high, medium or low for

project justification (PJ)project justification (PJ) Assess both CE and economic development Assess both CE and economic development

/land use as either “pass” or “fail”/land use as either “pass” or “fail” Two “pass” ratings yield high PJ rating, CE Two “pass” ratings yield high PJ rating, CE

“pass” yields medium, CE “fail” or two “fails” “pass” yields medium, CE “fail” or two “fails” yield low yield low

PJ rating modified by reliability rating to get PJ rating modified by reliability rating to get five tier overall ratingfive tier overall rating

Less able to distinguish between projects Less able to distinguish between projects although identifies projects with most although identifies projects with most potential potential

1313

Discussion Item 4. Federal Discussion Item 4. Federal investments should investments should contribute to reducing contribute to reducing congestioncongestion Ratings will take into account whether Ratings will take into account whether

– the project is supported by a variable pricing the project is supported by a variable pricing strategystrategy

– there are any measurable highway travel time there are any measurable highway travel time savings savings

– there is improved mobility (reduction in highway there is improved mobility (reduction in highway VMT weighted by a factor for highway congestion)VMT weighted by a factor for highway congestion)

Need input onNeed input on– Implications for transit of measuring congestion Implications for transit of measuring congestion

reduction benefitsreduction benefits– Ways to measure highway benefits and improved Ways to measure highway benefits and improved

mobility mobility – Improving current travel models to produce better Improving current travel models to produce better

results and more consistent estimatesresults and more consistent estimates

1414

Discussion Item 5. Discussion Item 5. Incentives to increase the Incentives to increase the use of PPPsuse of PPPs Ratings take into accountRatings take into account

– Innovative contractual arrangements to reduce Innovative contractual arrangements to reduce operating costsoperating costs

Need input onNeed input on– Assuming an otherwise acceptable cost Assuming an otherwise acceptable cost

effectiveness rating, should “betterments” effectiveness rating, should “betterments” funded by private sector (not “in kind funded by private sector (not “in kind contribution” but private equity) be excluded contribution” but private equity) be excluded from cost effectiveness measure? from cost effectiveness measure?

– Examples includeExamples include additional station entrances additional station entrances improvements to station design beyond standardsimprovements to station design beyond standards changes in vertical or horizontal alignmentchanges in vertical or horizontal alignment

– Alternatively, should all private capital be Alternatively, should all private capital be excluded from the cost effectiveness measure?excluded from the cost effectiveness measure?

1515

Discussion Item 6. Include Discussion Item 6. Include measures in the final rulemeasures in the final rule If measures are included in the rule If measures are included in the rule

instead of a separate policy guidance instead of a separate policy guidance than any change in measures would than any change in measures would require an amendment to the rule in require an amendment to the rule in order to change the measuresorder to change the measures– Can we develop better measures over Can we develop better measures over

time that should be implemented in a time that should be implemented in a timely manner?timely manner?

– Are we better served by stability in the Are we better served by stability in the measures?measures?

1616

Discussion Item 7. Better Discussion Item 7. Better quantify project benefitsquantify project benefits

What methodology would forecast the What methodology would forecast the benefits that accrue from the benefits that accrue from the interaction of the proposed project and interaction of the proposed project and road pricing?road pricing?

What methodology could be deployed What methodology could be deployed to quantify any additional economic to quantify any additional economic development/land benefits resulting development/land benefits resulting from the project, that are not already from the project, that are not already included in the user benefits, and what included in the user benefits, and what would it measure? would it measure?

1717

Discussion Item 7. Discussion Item 7. (continued)(continued)

Current Land Use (LU) measuresCurrent Land Use (LU) measures– Likelihood of additional development Likelihood of additional development – Likelihood of project achieving ridership Likelihood of project achieving ridership

forecasts forecasts – Magnitude of local support as reflected in Magnitude of local support as reflected in

plans, policies and past performanceplans, policies and past performance Combined EconDev/LU MeasuresCombined EconDev/LU Measures

– Extent current land use is ripe for developmentExtent current land use is ripe for development– Transit-oriented plans and policiesTransit-oriented plans and policies– Economic development climate in the corridorEconomic development climate in the corridor– Increased transit accessibility of the projectIncreased transit accessibility of the project– Economic lifespan of the projectEconomic lifespan of the project

1818

Discussion Item 7 Discussion Item 7 (continued)(continued)

Benefits not currently measured Benefits not currently measured – Forecast of projected developmentForecast of projected development– The trip not taken and/or shorter tripsThe trip not taken and/or shorter trips– Economic/Social effects of TOD Economic/Social effects of TOD – Reduction in the cost of delivery of other Reduction in the cost of delivery of other

public services, e.g. more compact utility public services, e.g. more compact utility location location

How to quantify measuresHow to quantify measures– Ability to include in cost effectivenessAbility to include in cost effectiveness

1919

Subpart A: General Subpart A: General ProvisionsProvisions Purpose and content on Part 611 Purpose and content on Part 611 Applicability of Part 611Applicability of Part 611 Definition of terms Definition of terms Consideration of measures of Consideration of measures of

reliability reliability

2020

Subpart A: ApplicabilitySubpart A: Applicability

Part 611 applies to all projects seeking Part 611 applies to all projects seeking New Starts/Small Starts funds unless New Starts/Small Starts funds unless at the time the final rule is issued :at the time the final rule is issued :– The project has been approved into FD, The project has been approved into FD,

and there are no major project changes and there are no major project changes – The project was an exempt project ($25M The project was an exempt project ($25M

or less) and requests funds appropriated or less) and requests funds appropriated prior to the final rule, as long as all other prior to the final rule, as long as all other grant requirements are met grant requirements are met

2121

Subpart A: Key Subpart A: Key Definitions Definitions Fixed Guideway System:Fixed Guideway System:– – facility in separate ROW or rail for or rail for

exclusive use by public transportation or exclusive use by public transportation or high occupancy vehicles for at least high occupancy vehicles for at least 50% of its length NEW! OR50% of its length NEW! OR

– – uses ROW usable by other forms of uses ROW usable by other forms of transportation but has a fixed catenary transportation but has a fixed catenary system ORsystem OR

– – is a corridor based bus (for Small Starts), is a corridor based bus (for Small Starts), having at least 50% of its length as having at least 50% of its length as fixed guideway during peak periods ORfixed guideway during peak periods OR

2222

Subpart A: Key Subpart A: Key DefinitionsDefinitionsFixed Guideway SystemFixed Guideway System (con’t) (con’t)– – represents a substantial investment in a represents a substantial investment in a

defined corridor ORdefined corridor OR– – uses a barrier-separated ROW and 95% of uses a barrier-separated ROW and 95% of

the transit vehicles using the facility will the transit vehicles using the facility will maintain an average speed of not less maintain an average speed of not less than 5 MPH below posted speed limit. than 5 MPH below posted speed limit. (definition does not alter that for “fixed (definition does not alter that for “fixed guideway mile” for the formula program) guideway mile” for the formula program) NEW!NEW!

2323

Subpart A: Key Subpart A: Key Definitions Definitions TSM alternativeTSM alternative::

– …” – …”At a minimum it must be more cost At a minimum it must be more cost effective as compared to the no build effective as compared to the no build alternative than the New or Small Start alternative than the New or Small Start project compared to the no build project compared to the no build alternative”…. NEW!alternative”…. NEW!

– –

2424

Subpart A: Measures of Subpart A: Measures of reliability in the evaluation reliability in the evaluation and rating processand rating process

Measures and their ratings will be Measures and their ratings will be applied to each project justification applied to each project justification and local financial commitment and local financial commitment criterion rating increasing or criterion rating increasing or decreasing the criterion ratingdecreasing the criterion rating

Reliability measures are identified Reliability measures are identified in the policy guidancein the policy guidance

Notice of Proposed Notice of Proposed Rulemaking – New StartsRulemaking – New Starts

Ron FisherRon Fisher

Director, Office of Project Director, Office of Project PlanningPlanning

Office of Planning and Office of Planning and EnvironmentEnvironment

2626

NPRM Topics To Be NPRM Topics To Be Covered Covered EligibilityEligibility Project justificationProject justification Local financial commitmentLocal financial commitment Overall project ratingOverall project rating Project development Project development

2727

New Starts EligibilityNew Starts Eligibility Project is based on the results of an Project is based on the results of an

alternatives analysisalternatives analysis Total project cost Total project cost ≥ ≥ $250M OR New $250M OR New

Starts Funding Starts Funding ≥ $75M≥ $75M At least 50% of the project length At least 50% of the project length

operating on a fixed guideway in the operating on a fixed guideway in the peak period NEW!peak period NEW!

May not be subdivided into Small or May not be subdivided into Small or Very Small Starts NEW!Very Small Starts NEW!

2828

New StartsNew StartsProject Justification Project Justification RatingRating

Cost Effectiveness (50%) Effectiveness (50%)

Mobility

40%

Transit Dep. Mobility

10%

Env. Benefits

10%

Econ Dev / Land Use

40%

Project Justification Other Factors•MTC•Cong. Pricing

2929

New StartsNew StartsProject Justification Project Justification RatingRatingCost Effectiveness (CE)Cost Effectiveness (CE) DefinitionDefinition

Annualized Capital and Operating CostsAnnualized Capital and Operating Costs

Transportation System User BenefitsTransportation System User Benefits Breakpoints for ratings adjusted annually Breakpoints for ratings adjusted annually in the Reporting Instructionsin the Reporting Instructions Operating efficiencies no longer explicit Operating efficiencies no longer explicit evaluation criteria; inherent in CEevaluation criteria; inherent in CE

3030

New StartsNew StartsProject Justification Project Justification RatingRatingEffectiveness – Mobility (40%) NEW!Effectiveness – Mobility (40%) NEW! Mobility for general population, including Mobility for general population, including congestion reliefcongestion relief Congestion relief based on degree to which Congestion relief based on degree to which project reduces highway travel demand and project reduces highway travel demand and the relative level of congestion in the the relative level of congestion in the corridor based on estimated delaycorridor based on estimated delay

3131

New StartsNew StartsProject Justification Project Justification RatingRatingEffectiveness – Econ. DevEffectiveness – Econ. Dev / Land Use / Land Use (40%)(40%) NEW! NEW! Extent to which current land use is ripe for Extent to which current land use is ripe for developmentdevelopment Transit-oriented plans and policiesTransit-oriented plans and policies Economic development climate in the Economic development climate in the project corridorproject corridor Increase in transit accessibility offered by Increase in transit accessibility offered by the projectthe project Economic lifespan of the projectEconomic lifespan of the project

3232

New StartsNew StartsProject Justification Project Justification RatingRatingOther FactorsOther Factors Make the Case always ratedMake the Case always rated Project is a principle element in a Project is a principle element in a congestion management/pricing strategy congestion management/pricing strategy Additional FactorsAdditional Factors

– Any factor the project sponsor believes not Any factor the project sponsor believes not captured elsewhere in project justification captured elsewhere in project justification criteriacriteria

– Any factors the Secretary decides importantAny factors the Secretary decides important

3333

New Starts Local Financial New Starts Local Financial Commitment RatingCommitment Rating

Capital Finance Plan (50%) Operating Finance Plan (50%)

Local Financial Commitment

3434

5 Level Rating Scale: High, Medium-High, 5 Level Rating Scale: High, Medium-High, Medium, Medium-Low, and LowMedium, Medium-Low, and Low

Ratings will be given:Ratings will be given:– When the project moves from one step to the next –OR–When the project moves from one step to the next –OR–– If the project has experienced significant changes for the If the project has experienced significant changes for the

Annual report –OR–Annual report –OR–– If the project is being considered for a funding If the project is being considered for a funding

recommendationrecommendation Must receive at least a “medium” to move from Must receive at least a “medium” to move from

one step to the next or to receive a funding one step to the next or to receive a funding recommendationrecommendation

Both the project justification and local financial Both the project justification and local financial commitment rating must be a “high, medium-commitment rating must be a “high, medium-high, or medium” in order to achieve an overall high, or medium” in order to achieve an overall project rating of a “high, medium-high, or project rating of a “high, medium-high, or medium” NEW!medium” NEW!

New Starts Overall New Starts Overall Project RatingProject Rating

3535

Application Evaluation / Review Application Evaluation / Review TimeTime

Upon receipt of a Upon receipt of a completecomplete formal request… formal request… PEPE

– FTA will complete an application evaluation within 30 FTA will complete an application evaluation within 30 daysdays

FDFD– FTA will complete an application evaluation within 120 FTA will complete an application evaluation within 120

daysdays

New Starts Project New Starts Project Development ProcessDevelopment Process

3636

Definition of Preliminary Engineering:Definition of Preliminary Engineering:Finalization of project scope, cost and financial Finalization of project scope, cost and financial

plan so that:plan so that: NEPA is concluded NEPA is concluded Design is sufficient to obviate significant Design is sufficient to obviate significant

unknown costsunknown costs Cost estimate supports financial planCost estimate supports financial plan Credible, relevant, identifiable and cost Credible, relevant, identifiable and cost

effective industry practices can be applied in effective industry practices can be applied in FDFD


3737

Preliminary Engineering Entry Requirements:Preliminary Engineering Entry Requirements: AA is completeAA is complete FTA has approved the baseline alternativeFTA has approved the baseline alternative Project sponsors must demonstrate adequate technical capacity to Project sponsors must demonstrate adequate technical capacity to

carry out PEcarry out PE NEPA scoping complete NEPA scoping complete Proposed project adopted into regional transportation planProposed project adopted into regional transportation plan

Before and After Study Requirements:Before and After Study Requirements: Develop preliminary plan to conduct Before and After Study Develop preliminary plan to conduct Before and After Study AA data and an analysis of uncertainties required for Before and AA data and an analysis of uncertainties required for Before and

After Study must be submittedAfter Study must be submitted Identify entity responsible for each forecast or estimateIdentify entity responsible for each forecast or estimate

Note: Note: Funding for collection and analysis of data related to the Funding for collection and analysis of data related to the Before and After Study may be included (up to 80%) in the Before and After Study may be included (up to 80%) in the project’s eligible funding expenses.project’s eligible funding expenses.


3838

NEW! Preliminary Engineering Entry NEW! Preliminary Engineering Entry Requirements:Requirements:

Independent endorsement received from Independent endorsement received from potential funding partners potential funding partners

Travel demand models validated against a Travel demand models validated against a survey of transit riders not more than 5 years survey of transit riders not more than 5 years old old

Execute project development agreement (PDA) Execute project development agreement (PDA) with FTAwith FTA


3939

Final Design Entry Requirements:Final Design Entry Requirements: NEPA process completeNEPA process complete All conditions for completion of PE metAll conditions for completion of PE met If significant changes to project definition or cost have If significant changes to project definition or cost have

occurred in PE, the project must be reaffirmed in the occurred in PE, the project must be reaffirmed in the regional plan NEW!regional plan NEW!

FTA and project sponsor have agreed on exact amount of FTA and project sponsor have agreed on exact amount of funding sought NEW!funding sought NEW!

Before and After Study Requirements:Before and After Study Requirements: Project data through end of PE must be submitted to FTA Project data through end of PE must be submitted to FTA Finalize plan to conduct Before and After Study NEW!Finalize plan to conduct Before and After Study NEW! Any changes in scope, costs, service levels, or ridership Any changes in scope, costs, service levels, or ridership

from AA estimates should be analyzed and documented in from AA estimates should be analyzed and documented in a memo.a memo.

Identify entity responsible for each forecast or estimateIdentify entity responsible for each forecast or estimate


4040

Full Funding Grant Agreement:Full Funding Grant Agreement: Projects that meet or exceed requirements are Projects that meet or exceed requirements are

eligible but not guaranteed to receive a funding eligible but not guaranteed to receive a funding recommendationrecommendation

Incentive Clause NEW! – FTA will process an Incentive Clause NEW! – FTA will process an amendment for incentive funds AFTER project is amendment for incentive funds AFTER project is complete and operating IF:complete and operating IF:– Actual opening year ridership no less than 90% of Actual opening year ridership no less than 90% of

forecast AND actual capital costs are not more than forecast AND actual capital costs are not more than 110% of that estimated upon entry into PE110% of that estimated upon entry into PE

No outstanding issues exist that may interfere No outstanding issues exist that may interfere with successful implementation of the projectwith successful implementation of the project

At least medium cost effectiveness rating to be At least medium cost effectiveness rating to be recommended for fundingrecommended for funding


4141

Full Funding Grant Agreement (Con’t):Full Funding Grant Agreement (Con’t):Before and After Study Requirements:Before and After Study Requirements: Prior to construction activities, collect Prior to construction activities, collect beforebefore

data if not collected as part of final designdata if not collected as part of final design Two years after project opens for revenue Two years after project opens for revenue

service, collect service, collect after after datadata Submit report analyzing findings and include Submit report analyzing findings and include

supporting data no later than 30 months supporting data no later than 30 months after project opened for revenue service after project opened for revenue service NEW!NEW!


Notice of Proposed Notice of Proposed Rulemaking – Small and Very Rulemaking – Small and Very Small StartsSmall Starts

Sean LibbertonSean Libberton

Chief, Analysis DivisionChief, Analysis Division


4343

FTA’s Proposed Approach to FTA’s Proposed Approach to

Small and Very Small StartsSmall and Very Small Starts

Adopt a Simplified Version of Adopt a Simplified Version of existing New Starts process for existing New Starts process for Small StartsSmall Starts

Implement a “Warrants” system Implement a “Warrants” system for Very Small Startsfor Very Small Starts

4444

FTA’s Proposed Approach to FTA’s Proposed Approach to Small and Very Small StartsSmall and Very Small StartsHow Small and Very Small Starts differ from How Small and Very Small Starts differ from

New Starts:New Starts: AA could contain few alternatives, use forecasts AA could contain few alternatives, use forecasts

of transportation benefits with simplified of transportation benefits with simplified methods and address project opening, not 20-methods and address project opening, not 20-year forecasts (Small Starts only)year forecasts (Small Starts only)

Land use submission reduced for project Land use submission reduced for project justification (Small Starts only)justification (Small Starts only)

No final design approvalNo final design approval Simplified PMP and cost reviewsSimplified PMP and cost reviews Simplified PCGA Simplified PCGA

4545

NPRM Topics To Be NPRM Topics To Be Covered Covered EligibilityEligibility Project justificationProject justification Local financial commitmentLocal financial commitment Overall project ratingOverall project rating Project development Project development

4646

Small Starts EligibilitySmall Starts Eligibility Project is based on the results of an Project is based on the results of an

alternatives analysisalternatives analysis Total cost Total cost < < $250M AND request for Small $250M AND request for Small

Starts funding Starts funding < < $75M $75M May not be part of a larger New Starts May not be part of a larger New Starts

project; all potential Small Starts project; all potential Small Starts envisioned for a corridor will be envisioned for a corridor will be considered as a single project. considered as a single project.

4747

Small Starts EligibilitySmall Starts Eligibility At least 50% of the project length At least 50% of the project length

operating on a fixed guideway in the peak operating on a fixed guideway in the peak period –OR–period –OR–

Be a corridor based bus project with the Be a corridor based bus project with the following elements:following elements:– Substantial transit stationsSubstantial transit stations– Traffic signal priority / pre-emptionTraffic signal priority / pre-emption– Low floor buses or level boardingLow floor buses or level boarding– Branding of the proposed serviceBranding of the proposed service– 10 min peak / 15 min off-peak headways for at 10 min peak / 15 min off-peak headways for at

least 14 hours a dayleast 14 hours a day

4848

Very Small Starts Very Small Starts EligibilityEligibilityMust Meet All of the Preceding Must Meet All of the Preceding

Requirements Plus:Requirements Plus: Total cost of less than $50 millionTotal cost of less than $50 million Less than $3 million/mile (exclusive of Less than $3 million/mile (exclusive of

rolling stock)rolling stock) Ridership of 3,000 or more on an Ridership of 3,000 or more on an

average weekdayaverage weekday May not be part of a larger New Starts May not be part of a larger New Starts

project; all potential Very Small Starts in project; all potential Very Small Starts in a corridor will be considered as a single a corridor will be considered as a single project.project.

4949

Small StartsSmall StartsProject Justification Project Justification RatingRating


Mobility

40%

Econ dev/LU

60%

Other Factors:1. MTC2. Cong Pricing

Project Justification

5050

Small StartsSmall StartsProject Justification Project Justification RatingRatingCost Effectiveness (CE)Cost Effectiveness (CE) DefinitionDefinition

Annualized Capital and Operating CostsAnnualized Capital and Operating Costs

Transportation System User BenefitsTransportation System User Benefits Breakpoints for ratings adjusted annually Breakpoints for ratings adjusted annually in the Reporting Instructionsin the Reporting Instructions

5151

Small StartsSmall StartsProject Justification Project Justification RatingRatingEffectiveness – Effectiveness – Mobility (40%) NEW!Mobility (40%) NEW! Mobility for general population, including Mobility for general population, including congestion relief congestion relief Congestion relief based on degree to which Congestion relief based on degree to which project reduces highway travel demand and project reduces highway travel demand and the relative level of congestion in the the relative level of congestion in the corridor based on estimated delaycorridor based on estimated delay

5252

Small StartsSmall StartsProject Justification Project Justification RatingRatingEffectiveness – Econ. DevEffectiveness – Econ. Dev / Land Use / Land Use (60%) NEW!(60%) NEW! Extent to which current land use is ripe for Extent to which current land use is ripe for developmentdevelopment Transit-oriented plans and policiesTransit-oriented plans and policies Economic development climate in the Economic development climate in the project corridorproject corridor Increase in transit accessibility offered by Increase in transit accessibility offered by the projectthe project Economic lifespan of the projectEconomic lifespan of the project

5353

Small StartsSmall StartsProject Justification Project Justification RatingRatingOther FactorsOther Factors Make the Case always ratedMake the Case always rated Project is a principle element in a Project is a principle element in a

congestion management plan with pricing congestion management plan with pricing as a strategyas a strategy

Any factor the project sponsor believes not Any factor the project sponsor believes not captured elsewhere in project justification captured elsewhere in project justification criteriacriteria

Any factors the Secretary decides importantAny factors the Secretary decides important

5454

Small and Very Small Starts Small and Very Small Starts Local Financial Commitment Local Financial Commitment RatingRating


Local Financial Commitment

5555

Small Starts Overall Small Starts Overall Project RatingProject Rating

Overall Project Rating:Overall Project Rating:– Project Justification Rating (50%)Project Justification Rating (50%)– Local Financial Commitment (50%)Local Financial Commitment (50%)

5 Level Rating Scale: High, Medium-High, 5 Level Rating Scale: High, Medium-High, Medium, Medium-Low, and LowMedium, Medium-Low, and Low

Both the project justification and local Both the project justification and local financial commitment rating must be a financial commitment rating must be a “high, medium-high, or medium” in order “high, medium-high, or medium” in order to achieve an overall project rating of a to achieve an overall project rating of a “high, medium-high, or medium” “high, medium-high, or medium”

5656

Small Starts Overall Small Starts Overall Project RatingProject RatingOPTION 2 FRAMEWORKOPTION 2 FRAMEWORK

INITIAL RATINGEVALUATIONREADINESS FINAL RATINGFILTER

Financial Plan,Technical and Legal Capacity, Status in LRTP

Cost Effectiveness

Ec Dev / Land Use

BOTH PASS

BOTH FAIL

High Rating

Medium Rating

Low Rating

ReliabilityOvermatchProblem or Opportunity

High Rating

High-Med Rating

Medium Rating

Med-Low Rating

Low Rating

ONLY COST - EFFECTIVENESS

PASSES

5757

Ratings given for:Ratings given for:– Requests to enter project development–OR–Requests to enter project development–OR–– Annual Report if project has experienced Annual Report if project has experienced

significant changes –OR–significant changes –OR–– Project considered for a funding Project considered for a funding

recommendationrecommendation

Must receive at least a “medium” to Must receive at least a “medium” to advance into project development advance into project development or receive a funding or receive a funding recommendationrecommendation

Small Starts Overall Small Starts Overall Project RatingProject Rating

5858

Alternatives Analysis (AA)Alternatives Analysis (AA) An AA must develop information on a project’s:An AA must develop information on a project’s:

– BenefitsBenefits– CostsCosts– How well it addresses a transportation problem or opportunity How well it addresses a transportation problem or opportunity

in a corridorin a corridor Must include a no-build, at least one TSM, and as many build Must include a no-build, at least one TSM, and as many build

options as appropriateoptions as appropriate– The no-build can serve as the baseline alternative if LPA fits the The no-build can serve as the baseline alternative if LPA fits the

definition of TSMdefinition of TSM– If LPA is a fixed guideway, TSM is the Small Starts baselineIf LPA is a fixed guideway, TSM is the Small Starts baseline

The LPA must be selected from the evaluated alternatives The LPA must be selected from the evaluated alternatives and formally adopted and included in the metropolitan and formally adopted and included in the metropolitan transportation plantransportation plan

Small and Very Small Starts Small and Very Small Starts Project Development Project Development ProcessProcess

5959

Project Development Entry Project Development Entry Requirements:Requirements:

AA is completeAA is complete FTA has approved the baseline alternativeFTA has approved the baseline alternative Project sponsors must demonstrate adequate technical Project sponsors must demonstrate adequate technical

capacity to design and construct the projectcapacity to design and construct the project NEPA scoping complete NEPA scoping complete Proposed project adopted into regional transportation planProposed project adopted into regional transportation plan Overall rating at least “medium” Overall rating at least “medium”

NOTE: Project Development is the only phase NOTE: Project Development is the only phase requiring FTA approvalrequiring FTA approval

Small and Very Small Starts Small and Very Small Starts Project Development ProcessProject Development Process

6060

NEW! Project Development (PD) Entry NEW! Project Development (PD) Entry Requirements:Requirements:

Independent endorsement has been received Independent endorsement has been received from potential funding partners from potential funding partners

Travel demand models validated against a Travel demand models validated against a survey of transit riders (Not applicable to Very survey of transit riders (Not applicable to Very Small Starts)Small Starts)


6161

PD Entry Requirements for Before/After Study:PD Entry Requirements for Before/After Study: Develop preliminary plan to conduct Before and After Study Develop preliminary plan to conduct Before and After Study Submit initial information on project scope, service levels, Submit initial information on project scope, service levels,

capital costs, O&M costs, and ridership projected during AA capital costs, O&M costs, and ridership projected during AA and discussion of uncertaintiesand discussion of uncertainties

Identify entity responsible for each forecast or estimate of Identify entity responsible for each forecast or estimate of aboveabove

Note:Note: Funding for collection and analysis of data Funding for collection and analysis of data related to the Before and After Study may be related to the Before and After Study may be included (up to 80%) in the project’s eligible included (up to 80%) in the project’s eligible funding expenses.funding expenses.


6262

Definition of Project Development:Definition of Project Development:

Finalization of project scope, cost and financial plan Finalization of project scope, cost and financial plan so that:so that:

NEPA is concluded NEPA is concluded Design sufficient obviating significant unknown costsDesign sufficient obviating significant unknown costs Cost estimate supports financial planCost estimate supports financial plan Credible, relevant, identifiable and cost effective Credible, relevant, identifiable and cost effective

industry practices FDindustry practices FD


6363

Project Construction Grant Agreement Project Construction Grant Agreement (PCGA):(PCGA):

NEPA process is completeNEPA process is complete Project reaffirmed in metropolitan plan if Project reaffirmed in metropolitan plan if

significant changes to scope or costs occurred significant changes to scope or costs occurred since AA since AA

No outstanding issues exist that may interfere No outstanding issues exist that may interfere with successful implementation of the projectwith successful implementation of the project

Overall project rating at least a “medium”Overall project rating at least a “medium” Cost effectiveness rating at least “medium”Cost effectiveness rating at least “medium”


6464

PCGA Requirements for Before/After Study:PCGA Requirements for Before/After Study: Complete Before and After Study plan Complete Before and After Study plan Changes from AA should be analyzed and documented in a Changes from AA should be analyzed and documented in a

memomemo Project data through end of PD must be submitted to FTA Project data through end of PD must be submitted to FTA Identify entity responsible for forecasts and estimatesIdentify entity responsible for forecasts and estimates Prior to construction, collect Prior to construction, collect beforebefore data if not collected as data if not collected as

part of project developmentpart of project development Collect After DataCollect After Data

– Small Starts: Two years after project opens for revenue serviceSmall Starts: Two years after project opens for revenue service– Very Small Starts: One year after project opens for revenue Very Small Starts: One year after project opens for revenue

serviceservice Submit report analyzing findings and include supporting data Submit report analyzing findings and include supporting data

– Small Starts: 30 months after project opens for revenue serviceSmall Starts: 30 months after project opens for revenue service– Very Small Starts: 18 months after project opens for revenue Very Small Starts: 18 months after project opens for revenue

serviceservice


Proposed Policy Guidance on Proposed Policy Guidance on Evaluation Measures for Evaluation Measures for New/Small StartsNew/Small Starts

Ron FisherRon Fisher

Director, Office of Project Director, Office of Project PlanningPlanning


6666

Approach to Approach to DocumentsDocuments NPRMNPRM

– Includes information on eligibility, criteria Includes information on eligibility, criteria and key weights, ratings and project and key weights, ratings and project developmentdevelopment

Policy Guidance on Evaluation Measures Policy Guidance on Evaluation Measures for New/Small Startsfor New/Small Starts– Describes measures not referenced in NPRM Describes measures not referenced in NPRM

and how they will be applied for ratingsand how they will be applied for ratings

6767

New StartsNew StartsProject Justification Project Justification MeasuresMeasures


Mobility

40%

Transit Dep. Mobility

10%

Env. Benefits

10%

Econ Dev / Land Use

40%

Project Justification Other Factors•MTC•Cong. Pricing

Reliability

6868

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresEffectivenessEffectiveness Addresses the magnitude of various Addresses the magnitude of various

benefits of a project without regard to cost benefits of a project without regard to cost Benefit measures should be scaled to the Benefit measures should be scaled to the

project so they don’t always favor large project so they don’t always favor large projects projects

Projects can be effective but rate poorly Projects can be effective but rate poorly on cost effectiveness and vice versaon cost effectiveness and vice versa

Cost EffectivenessCost Effectiveness Addresses the question of how project Addresses the question of how project

benefits compare to costs benefits compare to costs

6969

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresEffectivenessEffectivenessGeneral Mobility General Mobility Average project weekday ridershipAverage project weekday ridership User benefits per passenger mile on the projectUser benefits per passenger mile on the project Severity of the current congestion in the project Severity of the current congestion in the project

corridorcorridor- percent average deviation in peak period - percent average deviation in peak period average speeds vs free flowaverage speeds vs free flow- person hours of delay- person hours of delay- level of service in corridor- level of service in corridor- ratio of daily miles to lane miles- ratio of daily miles to lane miles

7070

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresEffectiveness (con’t)Effectiveness (con’t) Economic Development / Land Use Economic Development / Land Use

– The extent to which proposed station areas The extent to which proposed station areas can be further developedcan be further developed

– The extent to which plans and policies The extent to which plans and policies encourage transit-oriented developmentencourage transit-oriented development

– Local economic conditionsLocal economic conditions– Increased accessibility of the projectIncreased accessibility of the project– Permanence of the projectPermanence of the project

7171

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresEffectiveness (con’t)Effectiveness (con’t) Mobility for Transit Dependents Mobility for Transit Dependents

– Share of the project’s user benefits for Share of the project’s user benefits for transit dependents, normalized by the transit dependents, normalized by the share of the metropolitan area’s share of the metropolitan area’s population found in the lowest population found in the lowest income/auto-ownership stratumincome/auto-ownership stratum

– Number of transit dependent riders on Number of transit dependent riders on the projectthe project

– User benefits of transit dependents per User benefits of transit dependents per project passenger-mileproject passenger-mile

7272

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresEffectiveness (con’t)Effectiveness (con’t) Environmental Benefits Environmental Benefits

– ISO 14001 CertificationISO 14001 Certification– EPA ratings for the most recent NEPA EPA ratings for the most recent NEPA

documentdocument– Person-days of exposure to “bad air” within Person-days of exposure to “bad air” within

the service areathe service area

7373

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresCost Effectiveness Cost Effectiveness Mobility-Focused measureMobility-Focused measure

7474

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresReliabilityReliability Transit-orientation of existing and future land use plans Transit-orientation of existing and future land use plans

and policiesand policies Project sponsor experience with implementing previous Project sponsor experience with implementing previous

projectsprojects Industry experience with the proposed project type in Industry experience with the proposed project type in

similar settingssimilar settings Reliability of forecasting methodsReliability of forecasting methods The degree to which future ridership projections depend The degree to which future ridership projections depend

on substantial population and employment growth on substantial population and employment growth beyond the opening yearbeyond the opening year

Use of innovative contractual agreements for operationsUse of innovative contractual agreements for operations Mitigation actions taken by project sponsorMitigation actions taken by project sponsor

NOTE: The reliability measure will be used to raise or lower the NOTE: The reliability measure will be used to raise or lower the rating for the criteria affected by reliabilityrating for the criteria affected by reliability

7575

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresOther Factors:Other Factors: If a proposed project is a principle element of a If a proposed project is a principle element of a

congestion management strategy, in general, and a congestion management strategy, in general, and a pricing strategy, in particularpricing strategy, in particular

The degree to which a New Starts project addresses The degree to which a New Starts project addresses significant problems or opportunities in a corridor and significant problems or opportunities in a corridor and the appropriateness of the preferred alternative as a the appropriateness of the preferred alternative as a response by reviewing the “make-the-case” response by reviewing the “make-the-case” document document

NOTE: Other factors could increase the project justification NOTE: Other factors could increase the project justification rating one level if near a breakpointrating one level if near a breakpoint

7676

New StartsNew StartsProject Justification Project Justification MeasuresMeasuresOther Factors: Make-the-Case Other Factors: Make-the-Case Identification of nature, extent and timing of problem Identification of nature, extent and timing of problem

including:including:– Roadway congestion including travel markets affectedRoadway congestion including travel markets affected– Effects of congestion on transit performanceEffects of congestion on transit performance– Impacts of congestion and other accessibility problems Impacts of congestion and other accessibility problems

on economic development planson economic development plans– Extent to which problems are current vs forecastExtent to which problems are current vs forecast

Effectiveness of project in addressing problems including:Effectiveness of project in addressing problems including:– Improvements in quality of transit service in terms of Improvements in quality of transit service in terms of

reduced travel and wait times, improved reliabilityreduced travel and wait times, improved reliability– Ridership response and economic development Ridership response and economic development

impactsimpacts

7777

New Starts Local Financial New Starts Local Financial Commitment RatingCommitment Rating


Capacity / Estimates / Assumptions – 50%Condition – 25%

Commitment – 25%

Local Financial Commitment Other Factors•Overmatch•Innovative Contract. Agreements

7878

New Starts Local New Starts Local Financial Commitment Financial Commitment RatingRatingOther Factors:Other Factors: OvermatchOvermatch Requested New Starts share is less than 50% of the total Requested New Starts share is less than 50% of the total

project cost –AND–project cost –AND– Overall local financial commitment rating is “medium” or Overall local financial commitment rating is “medium” or

“medium-high”, –THEN– “medium-high”, –THEN– Overall local financial commitment rating will be raised one Overall local financial commitment rating will be raised one

level.level.

Innovative Contractual AgreementsInnovative Contractual Agreements If the project sponsor can demonstrate that they have If the project sponsor can demonstrate that they have

provided the opportunity for the operation and maintenance provided the opportunity for the operation and maintenance of the project to be contracted out –AND–of the project to be contracted out –AND–

Overall local financial commitment rating is “medium” or Overall local financial commitment rating is “medium” or “medium-high”, –THEN– “medium-high”, –THEN–

Overall local financial commitment rating will be raised one Overall local financial commitment rating will be raised one level.level.

7979

New Starts Local New Starts Local Financial Commitment Financial Commitment RatingRatingOther Factors (continued):Other Factors (continued):Additional Considerations…Additional Considerations…

If either of a proposed project’s capital or If either of a proposed project’s capital or operating finance plans receives a operating finance plans receives a Medium‑Low or Low rating, the overall local Medium‑Low or Low rating, the overall local financial commitment rating cannot be higher financial commitment rating cannot be higher than a Medium-Lowthan a Medium-Low

To receive an overall local financial To receive an overall local financial commitment rating of Medium-High, both the commitment rating of Medium-High, both the capital and operating finance plans must be capital and operating finance plans must be rated at least Medium-Highrated at least Medium-High

8080

Small StartsSmall StartsProject Justification Project Justification RatingRating


Mobility

40%

Land Use

60%

Other Factors(Econ Development)

Project JustificationReliability

8181

Small StartsSmall StartsProject Justification Project Justification MeasuresMeasuresEffectivenessEffectiveness General Mobility General Mobility

– Number of average weekday riders on the Number of average weekday riders on the projectproject

– User benefits per passenger mile on the User benefits per passenger mile on the projectproject

– Severity of the current congestion in the Severity of the current congestion in the project corridorproject corridor

8282

Small StartsSmall StartsProject Justification Project Justification MeasuresMeasuresEffectiveness (continued)Effectiveness (continued) Economic Development / Land Use Economic Development / Land Use

– The extent to which proposed station areas The extent to which proposed station areas can be further developedcan be further developed

– The extent to which plans and policies The extent to which plans and policies encourage transit-oriented developmentencourage transit-oriented development

– Local economic conditionsLocal economic conditions– Increased accessibility of the projectIncreased accessibility of the project– Permanence of the projectPermanence of the project

8383

Small StartsSmall StartsProject Justification Project Justification MeasuresMeasuresCost Effectiveness Cost Effectiveness Mobility-Focused measureMobility-Focused measure

8484

Small StartsSmall StartsProject Justification Project Justification MeasuresMeasuresReliabilityReliability Transit-orientation of existing and future land use plans Transit-orientation of existing and future land use plans

and policiesand policies Project sponsor experience with implementing previous Project sponsor experience with implementing previous

projectsprojects Industry experience with the proposed project type in Industry experience with the proposed project type in

similar settingssimilar settings Reliability of forecasting methodsReliability of forecasting methods The degree to which future ridership projections depend The degree to which future ridership projections depend

on substantial population and employment growth on substantial population and employment growth beyond the opening yearbeyond the opening year

Use of innovative contractual agreements for operationsUse of innovative contractual agreements for operations Mitigation actions taken by project sponsorMitigation actions taken by project sponsor

NOTE: The reliability measure will be used to raise or lower the NOTE: The reliability measure will be used to raise or lower the rating for the criteria affected by reliabilityrating for the criteria affected by reliability

8585

Small StartsSmall StartsProject Justification Project Justification MeasuresMeasuresOther Factors:Other Factors: If a proposed project is a principle element of a If a proposed project is a principle element of a

congestion management strategy, in general, and a congestion management strategy, in general, and a pricing strategy, in particularpricing strategy, in particular

FTA proposes to rate the degree to which a Small FTA proposes to rate the degree to which a Small Starts project addresses significant problems or Starts project addresses significant problems or opportunities in a corridor and the appropriateness of opportunities in a corridor and the appropriateness of the preferred alternative as a response by reviewing the preferred alternative as a response by reviewing the “make-the-case” documentthe “make-the-case” document

NOTE: Other factors will increase the project justification NOTE: Other factors will increase the project justification rating one level if near a breakpointrating one level if near a breakpoint

8686

Small Starts Local Small Starts Local Financial Commitment Financial Commitment RatingRating


Capacity / Estimates / Assumptions – 50%Condition – 25%

Commitment – 25%

Local Financial Commitment Other Factors•Overmatch•Innovative Contract. Agreements

8787

Small Starts Local Small Starts Local Financial Commitment Financial Commitment RatingRatingOther Factors:Other Factors: OvermatchOvermatch Requested Small Starts share is less than 50% of the total Requested Small Starts share is less than 50% of the total

project cost –AND–project cost –AND– Overall local financial commitment rating is “medium” or Overall local financial commitment rating is “medium” or

“medium-high”, –THEN– “medium-high”, –THEN– Overall local financial commitment rating will be raised one Overall local financial commitment rating will be raised one

level.level.

Innovative Contractual AgreementsInnovative Contractual Agreements If the project sponsor can demonstrate that they have If the project sponsor can demonstrate that they have

provided the opportunity for the operation and maintenance provided the opportunity for the operation and maintenance of the project to be contracted out –AND–of the project to be contracted out –AND–

Overall local financial commitment rating is “medium” or Overall local financial commitment rating is “medium” or “medium-high”, –THEN– “medium-high”, –THEN–

Overall local financial commitment rating will be raised one Overall local financial commitment rating will be raised one level.level.

8888

Small Starts Local Small Starts Local Financial Commitment Financial Commitment RatingRatingOther Factors (continued):Other Factors (continued):Additional Considerations…Additional Considerations…

If either of a proposed project’s capital or If either of a proposed project’s capital or operating finance plans receives a operating finance plans receives a Medium‑LowMedium‑Low or or LowLow rating, the overall local rating, the overall local financial commitment rating cannot be financial commitment rating cannot be higher than a higher than a Medium-LowMedium-Low

To receive an overall local financial To receive an overall local financial commitment rating of commitment rating of Medium-HighMedium-High, both the , both the capital and operating finance plans must be capital and operating finance plans must be rated at least rated at least Medium-HighMedium-High