# Presentation: 865529

## Improvements to Project Development and Program Management of New Starts ProjectsFY 2008

- Proposed
- Effective April 30, 2006

## SAFETEA-LU Says......

- Section 3011(d)(6) requires that FTA publish, for comment and response, Policy Guidance
- 180 days after enactment of SAFETEA-LU
- Each time significant changes are made to the process/criteria
-  At least every two years
- FTA’s Response........
- January 11, 2005 Guidance
- Improvements to Project Development and Program Management of New Starts Projects
- Issues Regarding the Future New Starts Regulation

## Changes Implemented for FY 07 Evaluation Cycle 

- Cost Effectiveness breakpoints adjusted for inflation
- Use of 2030 forecast year for estimating benefits and operating costs
- Replacement of *Highly Recommended*, *Recommended*, and *Not Recommended* with *High*, *Medium*, and *Low*
- Elimination of “60 percent” decision rule

## Changes Proposed beginning April 30, 2006

- To be disseminated in *FY 08 New Starts Reporting Instructions*
- For FY 08 Budget; PE/FD Evaluations; and NEPA milestones
- All FY 07 Changes plus......
- NEPA/New Starts Interfaces
- Before and After Study Documentation
- Expanded Certification of Methods and Assumptions
- Costs and Ridership Forecasts
- Project Development Agreements
- FFGA New Starts Level Set at Final Design Approval
- Consideration of Rules for Use of Mode-Specific Constants

## NEPA Interfaces

- NEPA Scoping
- New Starts Information in NEPA Documents
- Acceptable New Starts Rating for Issuance of NEPA Final Doc/Decision

## NEPA Scoping 

- “Require a project to have progressed beyond the NEPA scoping phase before entering preliminary engineering”
- Rationale
- Confirmation of the LPA / “PE project”
- Strengthens linkage between NEPA and New Starts

## NEPA Scoping 

- Proposed Implementation
- “Option 1”
- AA -> LPA -> NOI -> **NEPA Scoping -> LPA Confirmation -> PE Approval** -> DEIS -> FEIS
- “Option 2”
- NOI -> **NEPA Scoping -> AA/DEIS -> LPA -> PE Approval**  -> FEIS
- “Option 1 1⁄2”
- AA -> NOI -> **NEPA Scoping -> LPA -> PE Approval** -> DEIS - > FEIS

## New Starts Information in NEPA Documents

- “Require the Final EIS to present the New Starts evaluation of the preferred alternative, in addition to NEPA evaluation of the alternatives”
- Rationale
- Supports CEQ regulations 40 CFR 1502.23
- Provides public and stakeholders with information on the likelihood of receiving New Starts funding
- Enhances information available for decisionmaking
- Proposed Implementation
- Formalize current practice

## Acceptable New Starts Rating for Issuance of NEPA Final Doc/Decision

- “Require a New Starts project to achieve an acceptable New Starts rating before the FEIS, ROD, or FONSI is signed”
- Rationale
- Low rating = no New Starts funding recommendation = no Federal action
- Scope changes should be addressed within the NEPA process
- Final NEPA document must present a project that FTA can fund.
- FTA cannot issue a final NEPA document knowing that its supplementation or reevaluation of scope change is mandatory
- Proposed Implementation
- Formalize current practice
- Exceptions in some cases for poor but correctible financial rating

## Before and After Study Documentation 

- “Require project sponsors to provide documentation of the information produced during alternatives analysis that will be needed for the required B and A study, when they apply to begin PE, as well as updated information and analyses at the time of the request to enter into final design and before executing an FFGA”
- Rationale
- Ensures the availability of data for subsequent B and A study
- Consistent with FTA objectives for review of AA technical information
- “Real time” rather than retrospective analysis
- Consistent with Congressional intent

## Before and After Study Documentation 

- Proposed Implementation
- Information and analyses supporting 5 key project characteristics submitted to FTA at each milestone
- Project scope
- Transit service levels
- Capital costs
- O/M costs
- Ridership patterns and revenues

## Certification of Methods and Assumptions

- “Require that the individuals identified on Template 1 as the person responsible for developing these tools and techniques, in addition to the CEO, certify that they have been properly developed and applied according to professional standards and conventions and FTA guidelines”
- Rationale
- Improve the reliability of technical information used to support decisionmaking and justification for New Starts projects
- Better ensure “level playing field” for FTA’s evaluation of candidate projects
- Consistent with Congressional intent
- Proposed Implementation
- Revised and expanded certification submitted to FTA prior to PE/FD request, FY 08 evaluation materials

## Costs and Ridership Forecasts

- “Require forecasts of costs and benefits to include an analysis of uncertainties”
- Rationale
- Responds to SAFETEA-LU emphasis on reliability of estimates of costs and benefits
- Supports requirement for Contractor Performance Assessment reporting
- Acknowledges elements of uncertainties for strengthening decisionmaking and focusing project development activities
- Proposed Implementation
- Submitted analysis of uncertainties at time of PE/FD request

## Project Development Agreements

- “At FTA’s discretion, selectively require project development agreements (at time of PE and/or FD approval)”
- Rationale
- Provides mutually agreed upon yardstick for measuring progress in project development
- Focuses project sponsors effort/FTA oversight upon principal issues
- Provides basis for FTA rescission of PE/FD approval

## Project Development Agreements

- Proposed Implementation
- Negotiation of PDA at time of PE (or FD) request
- Will typically address:
- Principal issues to be resolved in project development
- Steps and schedule for NEPA compliance and completion
- Steps and schedule to complete PE or FD including the development of firm project scope and reliable cost estimates
- Steps and schedule to ensure funding commitments
- FTA commitments to technical assistance

## New Starts Funding Level Set at Final Design Approval

- “Place a cap on the FFGA New Starts funding amount at the point of approval to enter final design”
- Rationale
- Consistent with Congressional intent
- Clarifies FTA participation in project costs
- Supports decisionmaking
- Proposed Implementation
- Formalize current practice

## Possible Rules for Mode-Specific Constants

- “Require all project sponsors to use pre-established mode-specific constants for each of the included attributes (reliability, span of service, and passenger amenities) that appear to be prominent in a specific fixed-guideway proposal”
- Rationale
- Acknowledges and captures heretofore ignored non-transportation (time and cost) attributes of fixed guideway projects for areas considering new guideway modes
- Enhances consistent treatment of projects nationally
- Improves reliability of travel forecasts by mitigating against poorly-estimated constants (“correction factors”)

## Possible Rules for Mode-Specific Constants

- Proposed Implementation
- Single “guideway” value
- Values for each guideway mode
- “Line item” values for unmeasured attributes
- Values and application of values to travel forecasts to be presented in FY 08 *New Starts Reporting Instructions*