***Small Starts***

FTA is requesting \$100.00 million in the FY 2008 President's Budget for
projects which qualify under the Small Starts program, which is defined
in SAFETEA-LU as transit capital investment projects with a total
capital cost of less than \$250 million and a Section 5309 Small Starts
share of less than \$75 million. FTA expects to issue a joint Small
Starts/New Starts *Notice of Proposed Rulemaking* (NPRM) in April 2007,
with a *Final Rule* to be published in Early 2008. As a first step, FTA
published an *Advance Notice of Proposed Rulemaking* (ANPRM) on the
Small Starts subprogram in early 2006. The ANPRM acted as a testing
document to raise pertinent issues for discussion with stakeholders. In
July 2006, FTA issued *Interim Guidance and Instructions for Small
Starts*, which presented the simplified Small Starts evaluation process
that FTA will follow for the FY 2008 evaluation cycle, and which will be
in effect until the aforementioned *Final Rule* is issued. The *Interim
Guidance* further established the eligibility parameters for "Very Small
Starts" projects, a subset of the lowest-cost Small Starts which may
follow an even more simplified project development and evaluation
process.

The publication of these guidance documents (as well as the forthcoming
NPRM) was preceded by extensive outreach to stakeholders from around the
country through both formal and informal listening sessions and a formal
public comment period. Shortly after publication of the *Interim
Guidance and Instructions for Small Starts*, FTA received requests for
"project development" approval from several candidate Small Starts
project sponsors. Of the requests received, the following four projects
demonstrated eligibility and provided sufficient information for FTA to
find that they were both ready for project development and could be
evaluated against the Small Starts criteria per the rating process
specified in the *Interim Guidance*: the Metro Rapid Bus System Gap
Closure project in Los Angeles, California; the Troost Corridor BRT
project in Kansas City, Missouri; the Pioneer Parkway EmX BRT project in
Springfield, Oregon; and the Pacific Highway South BRT project in King
County, Washington. Each of these projects were rated *Medium* against
the Small Starts project justification and local financial commitment
criteria. FTA notified Congress of its intent to approve these projects
into project development in November 2006, with formal approval
anticipated in December 2006.

The FY 2008 President's Budget recommends \$51.82 million in Small
Starts funding, to be obligated through the PCGA instrument, for these
four projects. This level of funding fulfills the Small Starts requests
of the two projects -- the Los Angeles Gap Closure project and the King
County Pacific Highway South BRT - which have proposed to overmatch the
statutory 20 percent local share of capital costs. It also provides the
remaining two projects which proposed an 80 percent Small Starts share
of project costs -- the Kansas City Troost Corridor and Springfield
Pioneer Parkway EmX BRT projects -- with one-half of the requested Small
Starts funding amount. The remaining Small Starts funding for these
projects would be provided in FY 2009.

FTA notes that the Los Angeles and King County projects have not yet
received a statutory authorization for construction, as required by
Section 5309(e)(8) of Title 49 USC.  Such an authorization must be in
place before a PCGA for either of these projects can be executed.

FTA further proposes to reserve the remaining \$48.18 million in FY 2008
Small Starts funding for other Small Starts projects that are expected
to request entry into project development in the next few months and
which further demonstrate readiness for a PCGA by the end of FY 2008.
Given that Small Starts - and in particular, Very Small Starts - are
expected to be less complex, exhibit less risk, and be more quickly
implemented than traditional New Starts projects, FTA believes with a
high level of confidence that emerging demand for Small Starts funding
will be more than sufficient to consume this reserved but not yet
committed FY 2008 Small Starts funding. Just as with the "other
projects" funding category for New Starts described earlier in this
report, FTA intends to monitor emerging Small Starts very carefully over
the coming months and make project-specific funding recommendations -
and execute PCGAs - as such projects advance.

The following summarizes each of the Small Starts projects recommended
for a PCGA in the FY 2008 President's Budget.

***California: Los Angeles/Metro Rapid Bus System Gap Closure***

The Los Angeles County Metropolitan Transportation Authority (LACMTA) is
proposing to construct and operate eight street-running BRT lines that
would connect existing Metro Rapid Bus routes, effectively completing a
regional arterial BRT network. The proposed lines have been identified
for their potential to reduce end-to-end travel times throughout the
existing Metro Rapid Bus system. The project includes eight BRT routes
with a total of 247 new stations spread over 120 miles. The proposed
service would operate at-grade with ten-minute headways during the peak
period.

Each of the eight project corridors contain high population density, and
nearly 20 percent of residents that live within one-half mile of the
proposed corridors do not have access to an automobile. The project will
supplement existing local bus service with BRT featuring fewer stops and
traffic signal priority, resulting in significantly faster transit
travel times.

In 1999, LACMTA initiated its Metro Rapid Bus Demonstration Program,
which included the construction and implementation of Rapid Bus routes
in two heavily used transit corridors. The Demonstration Program was
successful and LACMTA approved the implementation of 22 additional Metro
Rapid Bus lines in September 2002. Fourteen of the proposed 22 routes
have been implemented and are currently operating. The remaining eight
Metro Rapid Bus routes are the topic of this proposal. Four of these
routes are scheduled to open by December 2007, with the remaining four
lines opening in June 2008.

The capital cost for the eight street-running BRT corridors which make
up the Gap Closure project is estimated to be \$25.66 million, of which
LACMTA is seeking \$16.68 million, or 65.0 percent, in Small Starts
funding. FTA recommends this amount in Small Starts funding for the
project in FY 2008.

***Missouri: Kansas City/Troost Corridor BRT***

The Kansas City Area Transportation Authority (KCATA) is proposing to
construct and operate an approximately nine-mile long, street-running
BRT line along Troost Avenue, terminating in downtown Kansas City,
Missouri. The Troost Corridor BRT project includes 25 new stations with
a real-time passenger information system, signal prioritization, and the
purchase of 15 low-floor, branded vehicles. The proposed service would
operate with ten-minute headways during the peak period. The project
qualifies as a Very Small Start, as defined in the *Interim Guidance and
Instructions for Small Starts.*

The Troost Avenue corridor contains the greatest population density in
the Kansas City region, as well as major employment and entertainment
centers such as the CBD, the Hospital Hill Medical Complex, Stower's
Medical Institute, the University of Missouri at Kansas City, Rockhurst
University, and the Federal/Honeywell complex.

In 2001, KCATA and the City of Kansas City, Missouri, completed planning
activities and identified two main corridors in need of transit
improvement. The first corridor ran north-south along Main Street, and
the second along Troost Avenue. LRT was proposed as a transportation
solution for each of these corridors, while identifying BRT as an
alternative improvement strategy should light rail prove to be
financially infeasible. Light rail was rejected by area voters in 2001
as too costly; subsequently, BRT was selected as the preferred
alternative for each corridor.

SAFETEA-LU Section 3043(b)(11) authorized the Southtown BRT project for
final design and construction. The capital cost for the nine-mile,
street-running BRT line along Troost Avenue is estimated to be \$30.73
million, of which KCATA is seeking \$24.58 million, or 80.0 percent, in
Small Starts funding. Congress has appropriated \$12.06 million for the
project through FY 2006. FTA recommends \$6.26 million in Small Starts
funding for the project in FY 2008.

***Oregon: Springfield/Pioneer Parkway EmX BRT***

The Lane Transit District (LTD) is proposing to construct and operate a
7.8-mile extension of the Franklin corridor Emerald Express (EmX) BRT
currently under construction in Eugene, Oregon. The proposed project
would extend service from the eastern terminus of the Franklin corridor
route north along the Pioneer Parkway to existing and new residential
and employment areas in Springfield. The project includes 14 new
stations, traffic signal priority, and the purchase of four low-floor,
branded, hybrid-electric vehicles. The proposed service would operate
at-grade with ten-minute headways during the weekday peak and off-peak
period.

Major employment centers along the Pioneer Parkway BRT route include
Symantec, Royal Caribbean, PeaceHealth, and the North Gateway Mall.
Total employment within one-half mile of the BRT route is expected to be
15,500 jobs by 2010, over 10 percent of the metropolitan area's total
forecasted employment.

In 2001, BRT was identified as a strategy to combat congestion in the
adopted Eugene-Springfield Regional Transportation Plan. LTD completed
an environmental assessment on the Pioneer Parkway EmX BRT project in
November 2006.

SAFETEA-LU Section 3043(c)(98) authorizes the Lane County Bus Rapid
Transit Phase 2 project for alternatives analysis and preliminary
engineering. Section 3043(e)(3)(A) of SAFETEA-LU further makes all
projects in subsection 3043(c) eligible for final design and
construction effective October 1, 2007. The capital cost for the
7.8-mile extension Pioneer Parkway EmX BRT line is estimated to be
\$36.99 million, of which LTD is seeking \$29.59 million, or 80.0
percent, in Small Starts funding. FTA recommends \$14.80 million in
Small Starts funding for the project in FY 2008.

***Washington: King County/Pacific Highway South BRT***

The King County (Washington) Department of Transportation, Metro Transit
Division (King County Metro) is proposing to construct and operate a
10.9-mile BRT route extending from the City of Tukwila to the City of
Federal Way, south of Seattle. The project includes 14 new stations,
traffic signal priority, and the purchase of 16 low-floor, branded,
diesel-hybrid vehicles. The proposed service would operate at-grade with
ten-minute headways during the peak period. The project qualifies as a
Very Small Start, as defined in the *Interim Guidance and Instructions
for Small Starts.*

The project corridor contains significant employment and residential
nodes in the region such as the Duwamish Manufacturing/Industrial
Center, as well as major attractions such as SeaTac International
Airport. Current bus service in the corridor makes frequent stops to
accommodate passenger demand. The project would provide improved transit
service and amenities for a large number of existing transit riders, as
well as attract new riders.

In 2002, King County Metro identified three potential BRT corridors in
its 2002 *Six-Year Transit Development Plan*. After local commitments
were made to provide basic operational and physical improvements in the
corridor to support BRT service, the Pacific Highway South project was
selected as the first BRT line in the county for implementation.

The capital cost for the 10.9-mile BRT route is estimated to be \$25.07
million, of which King County Metro is seeking \$14.08 million, or 56.2
percent, in Small Starts funding. FTA recommends this amount of Small
Starts funding for the project in FY 2008.