# Presentation: 436468

## SAFETEA-LU 

- Major Public Transportation Provisions of the
**Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users**
- Federal Transit Administration

## Reauthorization Status

- Passed by Congress July 29, 2005
- Signed by President August 10, 2005
- Most provisions start in FY 2006; some started immediately
- New and revised program guidance and  regulations (approximately 15 rulemakings) will be needed to implement changes
- Stakeholder input will be needed before guidance and regulations are finalized

## Major Program Features

- Covers FY 2005 through FY 2009
- Total authorization $45.3 billion for FY05 - FY09 [$52.6 billion FY04 – FY09]
- FY 2005 authorized at appropriations level ($7.65 billion)
- All funds “guaranteed”
- Approximately 80 percent from the Mass Transit Account
- New Starts, Research and FTA Administration from the General Fund
- Three new programs start in FY 2006
- New Freedom ($78 million in FY06)
- Transit in the Parks ($22 million in FY06)
- Alternatives Analysis ($25 million in FY 06)

## Basic Program Structure

- Major Capital Related Programs
- Planning - $95 million (vs. $72 million in FY 2005)
- Urbanized - $3.8 billion (vs. $3.6 billion)
- Clean Fuels - $21.5 million (not funded in FY 2005)
- Capital Grant Programs
- New Starts/Small Starts - $1.50 billion (vs. $1.43 billion)
- Fixed Guideway Modernization - $1.35 billion (vs. $1.2 billion)
- Bus - $843 million (vs. $719 million)
- Alternatives Analysis - $25 million (New)
- Other Statutory Programs
- Other Than Urbanized including Indian Tribes - $446 million (vs. $250 million)
- Specialized Programs
- Elderly and Disabled - $112 million (vs. $95 million)
- JARC - $138 million (vs. $124 million)
- New Freedom - $78 million (New)
- Parks - $22 million (New)
- Research - $75 million (vs. $60 million)
- FTA Administration - $80 million (vs. $77 million)

## Planning Requirements	

- Identical language in both highway and transit law
- Metropolitan Planning (Section 5303)
- Statewide Planning (Section 5304)
- Separate TIP (4-year) and Transportation Plan (20-year) continued
- 4-year update and certification cycles for all plans
- 5-year certification cycle in attainment areas

## Planning Requirements

- Public participation plan (new requirement)
- Expanded publication requirements
- Additional detail on environmental consideration required
- Security added as planning factor

## Planning Grants (Section 5305)

- Planning grants to States
- For Statewide planning; and
- For allocation to MPOs for Metropolitan planning grants
- Same split Between MPO and Statewide as in current law
- No change in formula based on population
- Planning funds grow from 0.95% of total authorization level to 1.1% ($95 million in FY06)

## Urbanized Area Formula Program (Section 5307)

- Grants for Urbanized Areas for public transportation capital investments (and operating expenses in areas under 200,000 pop.)
- Operating Assistance for certain “grandfathered” UZA’s (primarily those which grew to over 200,000 as a result definitional changes in the 2000 Census) phases down (50% in FY06, 25% in FY07)
- Basic formula augmented by two new formula features
- Same Basic formula ($3.467 billion in FY06)
- New Small Transit Intensive Cities formula ($35 million in FY06)
- New Growing States and High Density States formula ($329 million in FY06)
- Program Requirements Generally Unchanged
- Transit enhancements now certification rather than set-aside
- Expanded matching funds (non-DOT Federal funds can be use as match)

## Clean Fuels Program (Section 5308)	

- Capital grants for clean fuel buses (up to 25 percent “Clean Diesel”)
- Discretionary program (was formula program under TEA-21)
- $43 million authorized in FY06; $21.5 million appropriated (remainder transferred to Bus Program)
- Only available to non-attainment or maintenance areas
- Section 5307 (Urbanized Area) rules apply

## Capital Investment Program (Section 5309)	

- New Starts ($1.5 billion in FY06)
- Small Starts set-aside begins in FY07
- Fixed Guideway Modernization ($1.4 billion in FY06)
- Bus and Bus Facilities ($822 million authorized in FY06; $843 million appropriated including funds from Clean Fuels Program)

## New Starts

- Capital Grants for New Fixed Guideway Systems or Extensions
- Continues multi-year Full Funding Grant Agreements
- Alternatives Analysis funding provided under a new discretionary grant program (Section 5339)
- $25 million in FY 06
- State Safety Oversight starts during project development
- Public Private Partnership Pilot Program
- No separate funding

## New Starts

- Project Evaluation Criteria and Rating
- Summary Ratings now five levels instead of three
- High, Medium-High, Medium, Medium-Low, Low
- Eliminate Highly Recommended, Recommended, Not Recommended summary ratings
- Evaluation Criteria
- Project Justification
- Continues to include cost-effectiveness, land use, operating efficiencies, environmental benefits, and mobility improvements
- New “economic development” criteria
- New consideration of reliability of ridership and cost forecasts
- Local Financial Commitment
- Continues to include local share, capital finance plan, operating finance plan
- More explicit requirement that project will not degrade local bus service

## New Starts

- Permissible New Starts Share Remains at 80/20
- FTA cannot withhold approval of Preliminary Engineering or Final Design based on proposed Federal Share
- Ridership and Cost Estimate Incentive – Higher federal match permitted for projects whose cost and ridership estimates are both within 10% of forecasts when entering PE
- Cost Control Incentive – Grantees may keep portion of savings when underruns occur (at discretion of Secretary)

## New Starts 

- Reporting Requirements
- “Before and After” Studies
- Required by statute
- FTA annual report summarizing results
- Contractor Performance Assessment Report (CPAR)
- FTA annual report on consistency and accuracy of cost and ridership estimates
- Grantees must consult CPAR in selecting contractors
- Annual New Starts Report
- Supplemental Report eliminated

## “Small Starts”

- Capital Grants for New Fixed Guideway Systems and Extension and Bus Corridor Improvements
- For projects requesting less than $75 million in New Starts Funds
- Total project cost must be less than $250 million
- Non-fixed guideway corridor improvements (e.g., Bus Rapid Transit) allowed under “Small Starts”
- Streamlined criteria and process
- Separate funding category beginning in FY 07
- ($200 million authorized in FY 07)
- Rulemaking required
- Exemption for projects requesting less than $25 Million in New Starts funds eliminated once “Small Starts” regulation is final; all projects receiving funding to be evaluated and rated

## “Small Starts”

- Summary Ratings have five levels
- High, Medium-High, Medium, Medium-Low, Low
- Simplified Evaluation Criteria
- Project Justification (only 3 criteria)
- Cost Effectiveness calculated based on estimates at initiation of revenue service
- Land Use
- Local Economic Development
- Local Financial Commitment over project development timeframe only
- Same factors as New Starts: Local Share, Capital Finance Plan, Operating Finance Plan

## “Small Starts”

- Simplified Development Process
- Planning and Alternatives Analysis
- Project Development
- Eliminates separate approval into PE and FD
- Construction
- Multi-year Project Construction Grant Agreement
- Simplified Project Construction Grant Agreement
- Project Scope
- Cost
- Schedule
- Federal Funding Maximum Amount and Schedule
- Local Funding Sources

## Fixed Guideway Modernization

- Formula Grants for Capital Costs of Modernization of Existing Fixed Guideway Systems
- $1.4 billion authorized in FY 06; $1.35 billion appropriated (remainder transferred to New Starts Program)
- No change in formula
- No change in eligibility

## Bus and Bus Facilities	

- Discretionary Capital Grants for Buses, Bus-related Equipment and Bus Facilities
- $822 million authorized in FY 06; $843 million appropriated, including funds transferred from Clean Fuels Program
- Projects listed use half of authorized funds for FY06 through FY09
- Allows “Programs of Bus Projects” without further competition among subrecipients
- No other changes in program requirements

## Other-Than-Urbanized Program (Section 5311)

- Grants to States for Rural Public Transportation Capital and Operating Costs ($388 million in FY 06)
- Set Asides
- Indian Tribes ($8 million in FY 06)
- Rural Transit Assistance Program (RTAP) ($7.8 million in FY 06); used to be set-aside under research
- Formula
- Basic formula: 20 percent based on land area; 80 percent based on non-urbanized population
- Basic formula augmented by funds from Growing States Formula monies (Section 5340)

## Other-Than-Urbanized Program

- Eligibility
- States must consult with intercity operators before not using entire 15 percent for intercity service
- Matching Requirements
- 80/20 capital; 50/50 operating
- “Sliding Scale” matching permitted for States with large amounts of Public Lands
- Operating share is 5/8 of capital share in these States
- Expanded sources for matching funds (non-DOT Federal funds can be use as match)

## Elderly Persons and Persons with Disabilities (Section 5310)

- Grants to States for Capital Costs for Services for Elderly Persons and Persons with Disabilities ($112 million in FY 06)
- Formula
- No change in formula based on number of elderly persons and persons with disabilities
- Eligibility
- Operating costs of contracted service remain eligible
- Beginning in FY 2007 projects be included in a locally developed human service transportation coordinated plan
- Seven State Pilot Program allowing operating assistance (includes AK, WI, MN, OR)
- Matching requirements
- Expanded matching funds (non-DOT Federal funds can be use as match)
- “Sliding Scale” matching requirement for States with large amounts of Public Lands

## Job Access and Reverse Commute (Section 5316)

- Grants for Capital and Operating Costs of Services to Improve Access to Jobs and Provide Reverse Commute Service ($138 million in FY 06)
- Now formula program instead of discretionary program
- Formula allocations based on number of low-income persons to:
- Designated recipients in areas over 200,000 pop (60%);
- States for areas under 200,000 (20%); and
- States for non-urbanized areas (20%)
- States may transfer funds to urbanized or non-urbanized area programs
- Eligibility
- States and UZA’s must select recipients competitively
- Projects must be included in a locally-developed human service transportation coordinated plan beginning in FY 2007
- 10 percent of funds may be used for planning, administration and technical assistance
- Matching Requirements
- Expanded sources for matching funds (non-DOT Federal funds can be use as match)

## New Freedom Program (Section 5317)

- New grant program for Capital and Operating Costs of Services and Facility Improvements in excess of those required by the Americans with Disabilities Act ($78 million in FY 06)
- Formula program
- Formula allocations based on number of persons with disabilities to:
- Designated recipients in areas over 200,000 pop (60%);
- States for areas under 200,000 (20%); and
- States for non-urbanized areas (20%)
- States may transfer funds to urbanized or non-urbanized area programs
- Eligibility
- States and UZA’s must select recipients competitively
- Projects must be included in a locally-developed human service transportation coordinated plan beginning in FY 2007
- 10 percent of funds may be used for planning, administration and technical assistance
- Matching Requirements
- Expanded sources for matching funds (non-DOT Federal funds can be use as match)
- Labor Protection [5333(b)] only applied at discretion of the Secretary

## Transit in Parks and Public Lands(Section 5320)

- New Program for Planning and Capital Costs of Public Transportation in National Parks and Other Federal Public Lands ($22 million in FY 06)
- Discretionary program
- Cooperative between DOT and Department of the Interior
- DOI establishes an annual program of projects
- Major projects (over $25 million) carried out through Full Funding Grant Agreements
- Eligibility
- Alternative Transportation (in addition to, not in lieu of access by automobile)
- Planning Requirements Apply
- Can be carried out through grants, interagency agreements, or other agreements with DOI or other grantees
- Matching requirements
- Depend on project characteristics
- Labor Protection [5333(b)] only applied at discretion of the Secretary

## Research Programs

- Grants and Contracts for Research, Development, Deployment, Training, and Technical Assistance
- Continued Unchanged
- National Research Program ($38 million authorized in FY 06; $53 million appropriated)
- Transit Cooperative Research Program ($9 million in FY 06)
- National Transit Institute ($4.3 million in FY 06)
- Project Action ($3 million in FY 06)
- University Centers Program requires new competition
- 		($7 million in FY 06)
- New National Technical Assistance Center for Services for Seniors ($1 million in FY 06)

## Other Important Changes Primarily Affecting Grantees

- Program-wide definition of capital costs expanded to include
- Security Planning, Training, and Drills
- Intercity Bus portions of Intermodal Terminals
- Mobility Management
- Program-wide changes in grant features
- Revenue Bonds can be used as local match
- Grants funds may be used to set up debt service reserve
- National Transit Database reporting now required from rural public transportation operators
- Procurement Requirements (Section 5325)
- Codified in a single section
- Pre-Award/Post-Delivery Audits streamlined for purchases of less than 20 vehicles in areas under 200,000

## Other Important Changes Primarily Affecting FTA

- Project Management Takedown
- 0.5% from Planning, Elderly & Disabled, Rural, and Parks Programs;
- 0.75% from Urbanized Area Program;
- 1% from Capital Program
- Security Requirements
- FTA Annex to DOT/DHS Memo of Understanding
- Joint regulation on Transit Security Grants
- FTA must provide notice and comment on any guidance, circular, etc. that establishes a “binding obligation” on any grantee

## Additional Significant Changes and Rulemaking Required

- Buy America
- Changes effective immediately upon enactment: definitions, waivers, waiver procedures
- Additional rulemaking still required
- Charter Bus
- Negotiated rulemaking required
- Labor Protection
- Department of Labor may issue regulations

## Implementation	

- Continued Outreach on Program Changes
- Federal Register Notice (November 30, 2005)
- Program Changes
- Initial Guidance
- Program Guidance (Circulars, etc.)
- Public notice and comment required for “binding requirements”
- Regulations (about 15 anticipated)
- Public notice and comment required

## Implementation Status

- Complete (through February 2006)
- Safety and Security MOU Annex with DHS (September 8, 2005)
- Buy America NPRM (November 23, 2005)
- New Start Draft Policy Guidance (January 19, 2006)
- Small Starts Non-Fixed Guideway Impacts Report (January 23, 2006)
- Small Starts ANPRM (January 30, 2005)
- Joint Development Draft Guidance (January 30, 2005)
- Charter Bus Solicitation of Interest (January 30, 2006)
- Final Apportionments Notice; Selection of Elderly Individuals and Individuals with Disabilities Program Operating Assistance Pilot States (February 3, 2006)
- New Starts Report; Initial Parks Program Report (February 6, 2006)

## Implementation Status

- Complete (March)
- Public Private Partnership Pilot Program Notice
- Buy America (Partial) FR
- Notice for Comments on E&D, JARC, NF
- Tribal Transit Program Notice
- Parks Program Notice
- Joint Development Supplemental Guidance

## Implementation Status	

- Forthcoming (April – June)
- Charter Bus FACA Notice
- Drug/Alcohol Testing NPRM
- 4(f) NPRM
- Metropolitan and Statewide Planning NPRM
- 5310 Draft Circular
- Tribal Transit Solicitation
- 5311 Draft Circular
- 5316 (JARC) Draft Circular
- 5317 (NF) Draft Circular
- Parks Program Solicitation
- Draft Title VI Circular
- Draft EEO Circular
- National Fuel Cell Bus Technology Program Solicitation
- Buy America SNPRM