New Starts/Small Starts and BRT:An Update

APTA Bus ConferenceAPTA Bus ConferenceSeattle, WASeattle, WAMay 5, 2009May 5, 2009

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Topics

• Overview of the New Starts/Small Starts Program • Small Starts Project Planning & Development• Small Starts Evaluation and Funding• BRT in Small Starts (and New Starts)

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New Starts/Small Starts Funding: Supply and Demand

• Demand:– 14 New Starts projects in PE and Final Design– 21 Small Starts projects in PD– Total cost of pipeline: ~$25 billion, $10 billion in New

Starts funding– FTA tracking >100 planning studies considering major

transit capital investments

• Annual funding– New Starts: $1.6+ billion – Small Starts: $200 million

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Eligibility: Small Starts

• Cost criteria– Total cost <$250 million– Small Starts share < $75 million

• Scope criteria– Project has a fixed guideway for 50 percent or more of its

length during peak periods, or– Non-fixed guideway project in a corridor including at least

three of the following:- Significant transit stations- Traffic signal priority or pre-emption- Low floor buses or level boarding- Premium service branding

– No longer require all four project elements

“Exempt” projects exist only until a new rule is published

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Eligibility: Very Small Starts

• Small Starts criteria for cost and scope• Plus additional eligibility criteria:

– Total cost under $50 million– Cost per mile < $3 million per mile, excluding rolling

stock– (Existing weekday riders over 3,000)

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Small Starts/Very Small StartsEligible Applicants

• Any public body is eligible to apply for Small Starts funds

• If the applicant is not the operator:– The small starts application must demonstrate how the

project will be operated and maintained– Project sponsor must provide an executed operating

agreement before a PCGA can be finalized

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Small Starts/Very Small StartsProject Development

• Alternatives Analysis– Simplified– Project Justification based on Warrants for Very Small

Starts

• Project Development• Project Construction Grant Agreement

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What is a Project Construction Grant Agreement (PCGA)?

• Formal Agreement signed by FTA and Grantee following detailed review by DOT, OMB and Congress

• Agreement on Project Scope, Budget, and Schedule

• Terms and Conditions of Federal Participation• Multi-year Funding Commitment (subject to

Congressional Appropriations)• Caps Federal Section 5309 Small Starts funds

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Project Construction Grant Agreement

• To receive a PCGA a project must:– Be Authorized in Law– Complete the Planning, Project Development, and NEPA

Processes– Meet Project Readiness Requirements (technical capacity, firm

and final cost estimate and funding)– Receive a “Medium” or higher overall rating– Receive a “Medium” or higher cost effectiveness rating– Meet all other Federal requirements

• Execution of the PCGA will be subject to a 60 day congressional review

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FTA Ratings: Small Starts

Summary Rating

Project Justification Rating

Financial Rating

Non-Section5309 Share

Capital Finances

Operating Finances

Other Factors

Cost Effectiveness

Land Use

Minimum Project Development Requirements:

Capital Cost

O&MCost

User Benefits

Metropolitan Planning and Programming Requirements

Project Management Technical Capability

Other Considerations

NEPA Approvals

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FTA Ratings: Small Starts

• Existing New Starts framework• Simplifications

– Fewer criteria– Simpler evaluation measures for land use criterion– Opening year forecasts only– Simpler travel forecasting procedures possible– Simpler financial documentation possible

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FTA Ratings: Small Starts (continued)

• Simpler financial documentation possible– Rating of “medium” for local financial commitment if:

- Reasonable plan to secure local share (all non-New Starts funding committed for PCGA)

- Project O&M under 5 percent of agency operating budget- Agency in solid financial condition

– Projects that cannot meet these conditions submit a financial plan- According to FTA guidance- Covering period up to and including opening year- Evaluated based on criteria used for New Starts

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FTA Ratings: Very Small Starts

Summary Rating

Project Justification Rating

Financial Rating

Non-Section5309 Share

Capital Finances

Operating Finances

Other Factors

Cost Effectiveness

Land Use

Minimum Project Development Requirements:

Capital Cost

Benefiting Riders

Metropolitan Planning and Programming Requirements

Project Management Technical Capability

Other Considerations

NEPA Approvals

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FTA Ratings: Very Small Starts

• Existing New Starts framework• Simplifications

– Fewer criteria– “Warrants” approach for project justification

- Benefiting riders > 3,000/day- Capital cost (excl. vehicles) < $3M/mi.- Total capital cost < $50M

– Simpler financial documentation possible (as with Small Starts)

Demonstrate consistency with characteristics of “justified” projects

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Summary Ratings

• Rating categories:– High– Medium-high– Medium– Medium-low– Low

• Decision Rule:– Must have at least “Medium” on both

justification and finance to receive “Medium” overall

Summary Rating

Project Justification Rating (50%)

Local Financial Commitment Rating

(50%)

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BRT’s in New Starts and Small Starts

• One PCGA (Eugene)• One in NS Final Design (Hartford)• One in NS PE (Boston Silver Line)• 18 in Project Development

– Austin– Federal Way/Seattle, WA– Flagstaff– Fort Collins– Grand Rapids– Kansas City Troost– King County/Belleview-Redmond– Livermore/Amador Valley– Los Angeles Gap Closure– Los Angeles Wilshire– Monterey, CA– New York Nostrand Avenue– Oakland, CA East Bay– Roaring Fork Valley, CO– San Bernardino Omnitrans– San Diego Mid City Rapid– San Francisco Van Ness– Stockton, CA Metro Express Airport Way Connector

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Project Ratings and Decisionmaking

• Ratings guide FTA approvals of PE/PD, Final Design, and FFGA/PCGAs

• “Medium” or better overall rating required to advance

• Once in PE/PD, rating reported each year in Annual Report on Funding Recommendations

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Conclusion

QUESTIONS?