## Proposed Funding Commitments 

In addition to the funding recommendations for the existing and pending
Federal commitments discussed above, five proposed projects are expected
to be ready for commitments before the end of FY 2005 (i.e., September
30, 2005). In anticipation of these new commitments, FTA recommends that
a total of \$295.00 million be provided for these projects in FY 2005.
These projects have been rated as "Recommended" or "Highly Recommended"
under the criteria and processes specified by TEA-21. All of these
projects have been authorized by TEA-21. The funding recommendations
described below are based on the anticipated funding needs of each
project in FY 2005.

### Cleveland/Euclid Corridor Transportation Project

The Greater Cleveland Regional Transit Authority (GCRTA) is proposing a
9.4-mile, 35 station, bus rapid transit (BRT) line along Euclid Avenue
from Public Square in downtown Cleveland to the Stokes-Windermere Rapid
Transit Station (Red Line) in East Cleveland. The new BRT line would
connect the region's two largest employment areas and serve a number of
large hospitals and educational and research facilities, including
Cleveland State University and Case Western University. Current transit
ridership in the corridor is high, with nearly 122,000 bus riders
traveling Euclid Avenue between the corridor's west and east termini via
a number of bus routes each weekday. However, Euclid Avenue's
configuration, antiquated traffic signal system, frequent bus stops, and
long dwell times result in bus "bunching" and irregularity of service
frequencies. Consequently, bus operations along Euclid Avenue currently
average less than six miles per hour.

The Euclid Corridor Transportation Project (ECTP) would redistribute
east-west bus routes through the central business district to University
Circle via a fixed guideway BRT facility, resulting in up to 2,500
weekday hours of travel time benefits in 2025, as compared to
conventional bus service in the corridor. These benefits accrue to
patrons taking advantage of improved travel times and enhanced
reliability, comfort, and other improvements associated with BRT
service. GCRTA estimates that the project will carry 39,000 average
weekday riders, including 6,200 new riders, by the year 2025. Based upon
the 2000 Census Data, nearly 17,000 low-income households are
representing 73 percent of the total number of households located within
a ½-mile radius of proposed station areas. Approximately 195,350 jobs
are located within a ½-mile radius of proposed station areas. The
project is one component of a comprehensive, multi-agency effort to
redevelop Euclid Avenue and attract new jobs and residents to the
corridor.

FTA approved GCRTA's request to enter into preliminary engineering in
September 1996. GCRTA completed the NEPA process, with FTA's issuance of
a Finding of No Significant Impact, in September 2001. FTA approved
GCRTA's request for the ECTP to enter final design in July 2002. Revenue
operations are scheduled to commence in 2007.

In last year's *Annual Report on New Starts,* the Euclid Corridor BRT
project received a *"Low"* rating for cost effectiveness, due to the
high cost of the project compared to its estimated transportation
benefits. Since that time, GCRTA, in cooperation with state and local
stakeholders and the FTA, identified a number of potential cost
reduction strategies. These efforts yielded cost savings of over \$77
million. FTA further worked with GCRTA to improve its estimates of the
benefits of the project. Taken together, the two efforts resulted in a
41 percent improvement of the project's cost effectiveness.

Section 3030(a)(17) of TEA-21 authorized the ECTP for final design and
construction. The capital cost for the 9.4-mile line is estimated to be
\$168.4 million, of which GCRTA is seeking \$82.2 million or 49 percent,
in New Starts funding. Through FY 2003, Congress appropriated \$30.01
million in Section 5309 New Starts funding for this project. In the FY
2004 Conference Report, \$10.83 million is allocated to this project.
FTA is recommending \$25.00 million in FY 2005 New Starts funding for
this project.

### Las Vegas/Resort Corridor Fixed Guideway

The Las Vegas Regional Transportation Commission of Southern Nevada
(RTC) is proposing a 2.3-mile Resort Corridor Automated Guideway Transit
(elevated monorail) project. This project is an extension to a four-mile
monorail that is expected to be completed by the Las Vegas Monorail
Company by January 2004, without the use of New Starts funds. The
proposed New Starts project is currently in preliminary engineering and
is expected to move into final design in 2004. The monorail extension
will serve the Las Vegas central business district and the northern part
of the resort corridor along the Las Vegas "Strip" from Fremont Street
to Sahara Avenue. The Resort Corridor represents the region's largest
employment center, with about 50 percent of regional jobs (235,000)
located within the area.

RTC currently operates a high level of bus service along this highly
congested corridor.

The proposed monorail system is expected to provide improved travel
times and more convenient service to transit riders, the majority of
which are visitors traveling to entertainment destinations along the
"Strip." The project is anticipated to result in approximately 6,500
daily hours of travel time benefits to transit riders in 2020. The RTC
further estimates the proposed system will carry approximately 40,100
daily riders, including 15,000 daily new riders, in 2020.

The Las Vegas metropolitan area is designated by the Environmental
Protection Agency as a serious non-attainment area for both carbon
monoxide and particulate matter. Revenue operations of the 2.3-mile
monorail extension is scheduled to begin in October 2007. The capital
cost for the project is estimated to be \$453.90 million, of which the
RTC is seeking \$159.70 million, or 35 percent, in New Starts funding.
Through FY 2003, Congress appropriated \$20.76 million in New Starts
funding for this project. In the FY 2004 Conference Report, \$19.68
million is allocated to continue development on this project. FTA
expects this project to be sufficiently developed for an FFGA before the
end of FY 2005, and is requesting \$40.00 million in FY 2005 New Starts
funding for the project.

### New York/Long Island Rail Road East Side Access 

The New York Metropolitan Transit Authority (MTA) is designing a direct
access transit link for Long Island Rail Road (LIRR) passengers to a new
passenger concourse in Grand Central Terminal in east Midtown Manhattan.
The 3.5-mile, two-station East Side Access (ESA) project, using an
existing rail tunnel under the East River, will increase LIRR tunnel
capacity and facilitate the overall growth of the nation's largest
commuter rail system. The project will provide access to the eastern
part of midtown Manhattan for users of the LIRR who must currently
transfer to other transit lines or walk to get to east midtown from Penn
Station. Furthermore, by providing direct access for LIRR passengers to
Grand Central Terminal, the project will free up capacity at Penn
Station for New Jersey Transit and Amtrak commuter trains.

This ESA project will serve the strongest transit market in the country.
There currently exists nearly 700,000 jobs within a one-half mile radius
of two station areas. By 2025, it is projected that the project will
carry 167,300 average weekday riders, including 26,100 daily new riders.
By reducing travel time to Manhattan and relieving overcrowding
conditions on existing LIRR service to Penn Station, the ESA project is
expected to result in 139,600 hours of travel-time benefits each
weekday.

Construction began on the tunnels in both Manhattan and Queens in 2002.
The project is scheduled for completion by December 2011, at a projected
cost of \$5.26 billion. Although MTA is requesting a total of \$2.63
billion of Section 5309 New Starts funding, the amount of the Federal
share of the LIRR East Side Access project is still being negotiated. In
addition, given the size of this project and the difficulty of dividing
it into more than one operable segment, alternative funding mechanisms
in lieu of a traditional FFGA are being investigated. FTA and MTA are
working to identify an appropriate first phase of a funding commitment,
anticipated to be ready by early FY 2004. The final amount of the
funding commitment for this authorization period is still under
consideration. Through FY 2003, Congress appropriated \$81.51 million in
New Starts funding for the continued development of the East Side Access
project. To continue progress on this project, the FY 2004 Conference
Report allocated \$73.81 million to this project. FTA is recommending
\$100.00 million in FY 2005 New Starts funding for this project.

### Phoenix/Central Phoenix East Valley LRT Corridor

The Valley Metro Rail is proposing a 25-mile, light rail transit (LRT)
system that will connect the cities of Phoenix, Tempe, and Mesa. As a
first step, the agency is developing a 20.3-mile segment that will
travel in a southeast direction from the Chris-Town Mall in Phoenix,
through downtown Phoenix and Tempe, and ending in Mesa. The Phoenix
metropolitan area is one of the fastest growing areas in the United
States. The proposed project is intended to provide a transit
alternative to increasingly congested roads in the region and to serve
as a focal point for new development along the Central Avenue corridor
and in areas east of the Phoenix CBD including Sky Harbor Airport,
Tempe, and Mesa. The project is notable for the number of major activity
centers it is intended to serve, including downtown Phoenix and Tempe,
Arizona State University, Sky Harbor Airport, Papago Park Center, the
Civic Plaza Convention Center, Bank One Ballpark, America West Arena,
and Sun Devil Stadium.

Relative to comparable bus service in the corridor, the proposed light
rail system is anticipated to generate approximately 15,300 hours of
travel time benefits each weekday in 2020. Over 40 percent of these
benefits are attributable to work trips to downtown Phoenix and Sky
Harbor Airport. In addition, the project results in significant travel
time benefits for non-work trips between Mesa, Tempe, and downtown
Phoenix, and for students traveling by transit to Arizona State
University. Valley Metro Rail estimates that the project will carry
approximately 49,900 average weekday riders, including 28,300 daily new
riders, by the year 2020. Based upon 2000 Census Data, there are an
estimated 7,330 low-income households within a ½ mile radius of the
transit stations. The Phoenix metropolitan region is a serious
non-attainment area for ozone, carbon monoxide, and particulates.

Valley Metro completed the NEPA process and received a Record of
Decision on the Central Phoenix/East Valley Light Rail project in
February 2003. FTA approved Valley Metro Rail's request to enter into
final design in July 2003. Revenue operations are scheduled to commence
in August 2007.

The capital cost for the 20.3-mile segment of the Central Phoenix East
Valley LRT is estimated to be \$1,376.80 million, of which the Valley
Metro Rail is seeking \$587.00 million or 43%, in New Starts funding.
Through FY 2003, Congress appropriated \$45.46 million in New Starts
funding for this project. The FY 2004 Conference Report allocated
\$12.79 million for this project. FTA recommends providing \$75.00
million in New Starts funds to the project in FY 2005.

### Pittsburgh/North Shore LRT Connector 

The Port Authority of Allegheny County is proposing a 1.5-mile, four
station light rail transit (LRT) extension of its existing 25-mile LRT
system. The first segment of this project consists of a 1.2-mile LRT
spur connecting Pittsburgh's Golden Triangle with the North Shore. The
other segment of the project is a 0.3-mile Convention Center Connection,
linking the Center with the existing Steel Plaza LRT Station. The LRT
extension would connect Pittsburgh's central business district with the
North Shore area, the city's focal point for new development. Separated
by the Allegheny River, the four existing highway bridges traversing
this physical barrier are inadequate to serve local travel needs. By
improving transportation access to and within the North Shore, the
project is anticipated to carry 16,100 trips each weekday and result in
over 4,200 hours of travel time benefits by 2030. The project is further
intended to enhance accessibility to major sports, cultural, and civic
facilities; to improve the linkage between North Shore fringe parking
and Golden Triangle employment centers, and facilitate economic
development in the Pittsburgh North Shore.

In last year's *Annual Report on New Starts*, the North Shore LRT
Connector received a *"Low"* rating for cost effectiveness. Since then,
the Port Authority, in cooperation with FTA, has undertaken a number of
efforts to maximize the value of the project at the lowest possible
capital and operating cost. Design and engineering modifications
resulted in a \$27 million reduction in escalated capital costs. In
addition, an intensive analysis of regional travel demand and economic
forecasts yielded some significant improvements to the project's
estimated travel time benefits. These efforts resulted in a 46 percent
improvement in the project's cost effectiveness.

FTA approved project entry into preliminary engineering in January 2001.
FTA issued the NEPA Record of Decision on the North Shore project in
July 2002 and approved it into final design in April 2003. The project
is planned to begin revenue operations in 2008.

Section 3030(a)(97) of TEA-21 authorized the "Pittsburgh North Shore --
Central Business District Corridor." The capital cost for the 9.4-mile
line is estimated to be \$362.80 million, of which the Port Authority of
Allegheny County is seeking \$217.70 million or 60% in New Starts funds
for the project. Through FY 2003, Congress appropriated \$30.59 million.
The FY 2004 Conference Report allocated \$9.84 million to this project.
The Administration is recommending \$55.00 million in FY 2005 New Starts
funding for continued progress on this project.

# Other Projects

The FTA has identified two meritorious projects that are worthy of
funding in FY 2005. These projects are the Charlotte South Corridor LRT
Project and the Raleigh Regional Rail Project. The projects are located
in areas that are highly congested or rapidly growing, and that have
demonstrated a high level of local financial commitment and strong
support from local citizens, businesses, and elected officials. Thus,
FTA recommends that New Starts funding be allocated to undertake Final
Design activities. In FY 2005, a total of \$50.00 million is recommended
for these projects. The status of these projects and the individual
funding recommendations for FY 2005 are described below.

### Charlotte/South Corridor LRT 

The Charlotte Area Transit System (CATS), in cooperation with the City
of Charlotte, is proposing a 9.6-mile, 15 station light rail transit
(LRT) system extending from Uptown Charlotte to Interstate 485 in south
Mecklenburg County. The South Corridor generally parallels Interstate 77
and South Boulevard, the primary roadway options used by commuters
traveling north-south in the corridor. Both roadways are heavily
congested in the morning and evening peak hours, with no expansion of
capacity programmed for either facility due to physical constraints that
make such improvements very expensive. The proposed project would
provide a transit alternative to these congested roads. In addition, the
City of Charlotte is actively involved in a number of transit-oriented
development and urban redevelopment activities in the corridor and
throughout the region, and the South Corridor LRT project is intended to
serve as a focal point for such development.

The project is estimated to generate approximately 3,900 hours of
weekday travel time benefits in 2025 as compared to bus improvements in
the corridor, with the majority of these benefits accruing to work trips
attracted to the central business district. There are 72,515 existing
jobs located within ½ mile of the proposed stations, while over 107,000
jobs are forecast within ½ mile of the stations by 2025, a 48 percent
increase. CATS estimates that the project will carry 17,900 average
weekday riders, including 7,000 new riders, by the year 2025.

FTA approved CATS' request for the South Corridor LRT to advance to
preliminary engineering in August 2000. CATS issued a Draft
Environmental Impact Statement in October 2002. The Final Environmental
Impact Statement was published in April 2003, and a Record of Decision
was issued in May 2003. FTA approved the advancement of this project to
final design in August 2003.

Section 3030(a)(8) of TEA-21 authorized the Charlotte North-South
Transitway for Final Design and construction. The capital cost for the
9.6-mile line is estimated to be \$385.90 million, of which CATS is
seeking \$193.00 million, or 50 percent, in New Starts funding. Through
FY 2003, Congress appropriated \$30.60 million in New Starts funding for
this project. The FY 2004 Conference Report allocated \$11.81 million to
this project. FTA is recommending \$30.00 million in FY 2005 New Starts
funding for continued project development.

### Raleigh/Regional Rail System

The Triangle Transit Authority (TTA) is proposing a 35.2-mile,
16-station rail project that would provide service from Durham to
downtown Raleigh and from downtown Raleigh to North Raleigh. This
project, known as the Regional Rail System, would use existing North
Carolina Railroad and CSX rail corridors to connect Duke University,
downtown Durham, Research Triangle Park, Raleigh-Durham International
Airport, Cary, North Carolina State University, downtown Raleigh, and
North Raleigh. The proposed project would provide a transportation
alternative to one of the regions most congested travel corridors
between Raleigh, Research Triangle Park, and Durham.

The project is estimated to provide 6,900 weekday hours of travel-time
benefits in 2025 as compared to conventional bus service improvements.
TTA further estimates that the project will carry 25,200 average weekday
riders, including 8,300 new riders, by the year 2025. Based on 2000
Census data, there are an estimated 2,334 low-income households and
81,612 jobs within ½ mile of the proposed stations.

FTA approved TTA's request to enter preliminary engineering in January
1998. TTA submitted a Draft Environmental Impact Statement (EIS) on the
project in May 2001. The Final EIS was published in December 2002 and a
Record of Decision was issued in January 2003. The project was approved
for entry into final design in February 2003.

TTA submitted revised travel forecasts for the FY 2005 *Annual Report on
New Starts*. These new forecasts reflect a more accurate portrayal of
the project's benefits and result in improved cost-effectiveness.

Section 3030 (a)(68) of TEA-21 authorized the "Raleigh-Durham Regional
Transit Plan," for final design and construction. The capital cost for
this project is expected to be \$843.8 million, of which TTA is seeking
\$413.5 million or 49 percent in New Starts funding. Through FY 2003,
Congress appropriated \$59.39 million in New Starts funding for this
project. An additional \$5.41 million is provided in the FY 2004
Conference Report. The Administration is requesting \$20.00 million in
FY 2005 to continue project development.