RAIL

MOVING AMERICA FORWARD

Darren Timothy, Chief Economist

Department of Transportation 

Preparing a Benefit-Cost Analysis
2

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3

Today’s presenters:

Darren Timothy, Chief Economist, Department of Transportation (DOT)

Jordan Riesenberg, Economist, Office of the Secretary of Transportation (OST)

Michael Johnson, Industry Economist, Federal Railroad Administration (FRA)
4

Calendar of Upcoming FRA Publications

June 2022

FY22 Railroad 

Crossing 

Elimination 

Program NOFO 

Announced

October 2022 

FY22 Federal-state 

Partnership 

(National) NOFO 

Announced

* Targeted selection period, subject to change

Stakeholder Engagement 

NOFO† Selections

NOFO Announcement 

Document Publication

April 2022 

Railroad Crossing 

Elimination 

Program

Listening Sessions

April/May 2022 

Benefit Cost 

Analysis 

Educational 

Webinar Held

May/ 

June 2022* 

FY21 CRISI

Selections 

Announced

May 2022

Corridor 

Identification and 

Development 

Program 

Framework 

Document 

Published

August 2022 

FY22 CRISI 

NOFO

Announced

November 2022 

Northeast Corridor 

Project Inventory 

Published

August/ 

September 

2022*

FY21 Federalstate Partnership 

Selections 

Announced

December 2022 

FY22 Federal-state 

Partnership 

(Northeast Corridor) 

NOFO Announced

June 2022

Northeast Corridor 

Project Inventory Notice 

for Comment Published

† NOFO – Notice of Funding 

Opportunity
5

BCA and FRA Grant Programs

Programs Purpose Funds Available in FY22 Upcoming Key Milestones BCA Required?

Consolidated Rail Infrastructure 

and Safety Improvements (CRISI)

To fund projects that improve the safety, 

efficiency, or reliability of intercity passenger and 

freight rail.

$1.6 Billion Notice of Funding Opportunity 

expected in August 2022 Yes

Railroad Crossing 

Elimination (New)

To promote highway rail or pathway-rail grade crossing 

improvement projects that focus on improving the 

safety and mobility of people and goods.

$600 Million Notice of Funding Opportunity 

expected in expected in June 

2022

No

Federal-State 

Partnership for 

Intercity Passenger Rail

(Significantly Changed)

To fund capital projects that reduce the state of good 

repair backlog, improve performance, or expand or 

establish new intercity passenger rail service, including 

privately operated intercity passenger rail service if an 

eligible applicant is involved.

$7.2 billion

National Fed State- Notice of 

Funding Opportunity expected 

in expected in October 2022

Northeast Corridor Fed StateNotice of Funding Opportunity 

expected in expected in 

December 2022

National Fed State 

- Economic 

Analysis Required

Northeast 

Corridor Fed 

State - No 

Restoration & Enhancement To provide operating assistance to initiate, restore, or 

enhance intercity passenger rail service. $50 million

Notice of Funding Opportunity 

expected later this year Yes

Interstate Rail Compacts (New)

This program will provide funding for interstate rail 

compacts' administrative costs and to conduct railroad 

systems planning, promotion of intercity passenger rail 

operations, and the preparation of grant applications.

$15 million

($3 million annually)

Notice of Funding Opportunity 

expected later this year No
6

What is a BCA?

Benefit-cost analysis (BCA) is a 

systematic process for 

identifying, quantifying, and 

comparing expected economic 

benefits and costs of a 

proposed infrastructure project.
7

Why do we do a BCA?

• Provides a useful benchmark from 

which to evaluate and compare 

potential transportation 

investments 

• Adds a degree of rigor to the 

project evaluation process
8

What do I need to do a BCA?

• Clear understanding of the problem the project is intended to solve (baseline 

conditions) and how the project addresses the problem (measures of 

effectiveness).

• Well-defined project scope and cost estimate.

• Monetization factors for key project benefits.
9

What do I need to do a BCA?

• Sources of information may include:

o Project planning and engineering documents.

o Industry technical references and analytical tools.

o DOT BCA Guidance.
10

USDOT BCA Review

USDOT economists will review the applicant’s BCA:

o Examine key assumptions

o Correct for any technical errors

o Perform sensitivity analysis on key inputs

o Consider any unquantified benefits
11

USDOT BCA Guidance

• Covers all USDOT discretionary grant 

programs

• Updated March 2022

• Available at 

https://www.transportation.gov/office

-policy/transportation-policy/benefitcost-analysis-guidance-discretionarygrant-programs-0
12

What’s New?

New and updated monetization values.

Additional guidance and new examples on:

o Valuing pedestrian, cycling, and transit infrastructure improvements

o Valuing the benefits of improved health from active transportation and 

reduced crowding on transit

Additional guidance on benefits from reduction in stormwater runoff and 

wildlife impacts.
13

Transparent & Reproducible Analysis

BCAs should provide enough information for a reviewer to follow the logic and 

reproduce the results.

o Spreadsheet or database files showing the calculations.

o Technical memos describing the analysis and documenting sources of 

information used (assumptions and inputs).

o Present annual benefit and cost streams by type (not just summary output).
14

Baselines

Should measure costs and benefits of a proposed project against a baseline 

alternative (“base” or “no build”):

• “Do’s”

o Factor in any projected changes (e.g., increased freight or passenger volumes) 

that would occur even in the absence of the requested project.

o Factor in ongoing routine maintenance.

o Consider the full long-term impacts of the no build (e.g. facility closure, weight 

restrictions).

o Explain and provide support for the chosen baseline.

• “Don’t’s”

o Assume that the same (or similar) improvement will be implemented later.

o Use unrealistic assumptions about alternative traffic flows.
15

Demand Forecasts

• Most benefit estimates depend on ridership or usage estimates.

• Provide supporting info on forecasts.

o Geographic scope, assumptions, data sources, methodology.

• Provide forecasts for intermediate years.

o Or at least interpolate; don’t apply forecast year impacts to interim years.

• Exercise caution about long-term growth assumptions.

o Consider underlying capacity limits of the facility.
16

Analysis Period

• Should cover both initial development and construction and a subsequent 

operational period.

• Generally tied to the expected service life of the improvement or asset.

o Such as the number of years until you would anticipate having to take the 

same action again.

o Lesser improvements should have shorter service lives.

o Recommend 20 years maximum for capacity expansion or other operational 

improvements.

• Avoid excessively long analysis periods (more than 30 years of operations).

o Use residual value to cover out-years of remaining service life for long-lived 

improvements.
17

Inflation and Discounting

• Inflation Adjustments:

o Recommend using a 2020 base year for all 

cost and benefit data.

o Index values for the GDP Deflator included 

in the BCA Guidance.

• Discounting:

o Use a 7 percent discount rate for all 

benefits and costs (except CO2).

o Recommend using a 2020 base year for 

discounting.
18

Scope of the Analysis

• Project scope included in estimated costs and benefits must match.

o Don’t claim benefits from an entire project. Only count costs from the grantfunded portion.

• Scope should cover a project that has independent utility.

o May need to incorporate costs for related investments necessary to achieve 

the projected benefits.

• Project elements with independent utility should be individually evaluated in 

the BCA.

o BCA evaluation will cover both independent elements and the submitted 

project as a whole.
19

Benefits

• Should be presented on an annual basis

o Don’t assume constant annual benefits 

without a good reason to do so.

• Negative outcomes should be counted as 

“disbenefits.”

o E.g., work zone impacts.

• Avoid double-counting benefits.
20

Safety Benefits

• Typically associated with reducing fatalities, injuries, and property damage.

• Projected improvements in safety outcomes should be explained and 

documented.

o Justify assumptions about expected reductions in crashes, injuries, and/or 

fatalities (and document any CMF used).

o Show clear linkage between project and improved outcomes. 

o Use facility-specific data history for baseline where possible.

• Crash-related injury and fatality data may be available in different forms.

o KABCO injury scales.

o Fatal/Injury crashes vs. fatalities/injuries.

o BCA Guidance provides values covering all of these.
21

Travel Time Savings

• Recommended values found in BCA Guidance.

o See footnotes for discussion of non-vehicle time, 

long-distance travel, business travel.

• Consider vehicle occupancy where appropriate.

o Local/facility-specific values preferred.

o National-level values provided in BCA Guidance.

• If valuing travel time reliability:

o Carefully document methodology and tools 

used.

o Show how valuation parameters are distinct 

from general travel time savings.
22

Operating Cost Savings

• Avoid double counting operating savings and other impacts.

o E.g., truck travel time savings, fuel consumption reductions.

• Localized, specific data preferred.

o Standard per-mile values for light duty vehicles and commercial trucks 

provided in DOT BCA Guidance.
23

Emissions Reduction Benefits

• For infrastructure improvements, emissions reductions will typically be a 

function of reduced fuel consumption.

• Recommended year by year unit values for CO2, SOx, NOx, and PM2.5 found in 

BCA guidance.

o Be careful about the measurement units being applied.

• Reductions in CO2 emissions should be discounted at 3 percent, while all 

others should be discounted at 7 percent.
24

Amenity Benefits

• Pedestrian, cycling, and transit facility/vehicle improvements can improve 

the quality or comfort of journeys.

• Recommended values for different types of improvements found in BCA 

Guidance.

o Pay attention to whether value is on a “per-trip” or “per-person-mile” 

basis.

• Carefully document baseline amenities, as well as specifically how the 

proposed project will add any amenity benefit category being claimed.
25

Health Benefits

• Trips diverted to active transportation (walking and 

cycling) from other modes may yield health benefits 

to users.

• Recommended monetization values, on a per trip 

basis, are found in the BCA Guidance.

• Absent local data on existing mode share and 

estimates age profiles of users, applicants may apply 

national averages included in the BCA Guidance.
26

Benefits to Existing and Additional Users

• Primary benefits typically experienced directly by users of the improved facility.

• Includes both “existing” users (under baseline) and “additional” users attracted 

to the facility as a result of the improvement.

o Standard practice in BCA would value benefits to additional users less than 

those for existing users (see BCA guidance).
27

Modal Diversion

• Projected magnitude.

o Should be based on careful analysis of the market 

and potential for diversion from other modes that 

might be attributable to the project.

• Benefits estimates should not be based on 

comparing user costs of “old” and “new” mode.

o Would be reflected in benefits to additional users.

• Reductions in external costs would be relevant.

o E.g., emissions costs, pavement damage.

o Values for noise and congestion costs included in 

the BCA Guidance.
28

Other Benefits

• Agglomeration Economies.

• Noise, Stormwater Runoff, and Wildlife Impact Reduction.

• Emergency Response.

• State of Good Repair.

• Resilience.

o Consider expected frequency of events and their consequences.

• Property Value Increases.

o Is a measure rather than a benefit—avoid double-counting.
29

Unquantified Benefits

• Should quantify magnitudes/timing of the impacts wherever possible.

• Should clearly link specific project outcomes to any claimed unquantified 

benefits.
30

Capital Costs

• Include all costs of implementing the project:

o E.g., design, ROW acquisition, construction.

o Regardless of funding source.

o Include previously incurred costs.

• Three forms of capital costs:

o Nominal dollars (project budget).

o Real dollars (base year).

o Discounted Real dollars (use in the BCA).
31

Maintenance Costs

• Net maintenance costs may be positive or negative:

o New facilities would incur ongoing maintenance costs over the life of the 

project. 

o Rehabilitated/reconstructed facilities may result in net savings in maintenance 

costs between the build/no-build.
32

Residual Value

• For assets with remaining service life at the end of the analysis period, may 

calculate a “residual value” for the project.

o Recall that service life does not necessarily match the physical life of the asset.

• Simple approach: assume linear depreciation.

• Be sure to properly apply discounting.
33

Comparing Benefits to Costs

• Net Present Value (Benefits – Costs).

• Benefit-Cost Ratio (Benefits / Costs).

o Denominator should only include 

capital costs (i.e., net 

maintenance costs and residual 

value should be in the 

numerator).
34

Other Types of Economic Analysis

• Examples:

o Economic Impact Analysis.

o Financial Impacts.

o Distributional Effects.

• Issues:

o Use different approaches and answer different questions than does BCA.

o Do not represent additional benefits to include in BCA.
35

Hypothetical BCA Example #1

Proposed Project: Improve track class and 

state of good repair on two miles of track 

and grade-separate one highway-rail at-

grade crossing.

Project Cost: $50.0 million

2022

AADT: 1,000 Cars Delayed per Day

Avg. Delay: Two minutes

Source: Observed at Crossing

Average Annual Fatalities: Seven Fatalities 

in Previous 10 Years

Source: FRA Crossing Inventory
36

Hypothetical BCA Example #1

No-Build Scenario: 

Current track and grade 

crossing remains as is. 

Regular planned 

maintenance continues.
37

Hypothetical BCA Example #1

No-Build Scenario: 

Current track and grade 

crossing remains as is. 

Regular planned 

maintenance continues.

Build Scenario: 

Track class and state of good repair 

improved; grade-separation 

completed.
38

Approach

• We want to compare the state of the world with and without the proposed 

project improvement.

o No-Build Scenario: Current track and grade crossing remains as is and regular 

planned maintenance continues.

o Build Scenario: Track class and state of good repair improved; gradeseparation completed.

• Two expected major benefit categories in this case would be travel time savings 

and safety benefits from the grade-separation component.

• There are more potential benefits of this project, to be discussed later.
39

Travel Time Savings

• For simplicity, let’s assume no heavy trucks and no traffic growth:

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

*Undiscounted.
40

Travel Time Savings

• For simplicity, let’s assume no heavy trucks and no traffic growth:

=

*Undiscounted.

Annual Vehicle 

Travel Time 

Savings*

2 mins

60 x

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

Observed train gate downtime is four 

minutes, thus delay time for an automobile 

that must stop is two minutes, on average.
41

2 mins

60 x

Travel Time Savings

= 1,000 x

• For simplicity, let’s assume no heavy trucks and no traffic growth:

*Undiscounted.

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

Annual Vehicle 

Travel Time 

Savings*

Recent traffic 

observations.
42

USDOT BCA Guidance

(Appendix A)

Travel Time Savings

2 mins

60 x 1,000 x $17.80 x

• For simplicity, let’s assume no heavy trucks and no traffic growth:

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

*Undiscounted.

=

Annual Vehicle 

Travel Time 

Savings*
43

Travel Time Savings

2 mins

60 x 1,000 x $17.80 x 1.67 x

• For simplicity, let’s assume no heavy trucks and no traffic growth:

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

*Undiscounted.

USDOT BCA Guidance

(Appendix A)

=

Annual Vehicle 

Travel Time 

Savings*
44

Travel Time Savings

2 mins

60 x 1,000 x $17.80 x 1.67 x 365

*Undiscounted.

• For simplicity, let’s assume no heavy trucks and no traffic growth:

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

We expect this project to have an impact 

each day (not just weekdays, for example).

=

Annual Vehicle 

Travel Time 

Savings*
45

Travel Time Savings

2 mins

60 x 1,000 x $17.80 x 1.67 x 365

= $361,666 Per Year

*Undiscounted.

• For simplicity, let’s assume no heavy trucks and no traffic growth:

Avg. 

Delay 

Time

AADT

Delayed

Hourly 

Value of 

Time

Annualization 

Factor

= x x x x

Vehicle 

Occupancy

Annual Vehicle 

Travel Time 

Savings*

=

Annual Vehicle 

Travel Time 

Savings*
46

Safety Benefits

Average 

Annual 

Fatalities

Value of 

Statistical 

Life

= x

Annual Safety 

Benefits*

*Undiscounted.

• Assume the grade separation project mitigates all future fatalities at the 

crossing:
47

Safety Benefits

Average 

Annual 

Fatalities

Value of 

Statistical 

Life

= x

7 Fatalities

10 Years

=

Annual Safety 

Benefits*

Annual Safety 

Benefits* x

*Undiscounted.

• Assume the grade separation project mitigates all future fatalities at the 

crossing:

FRA Grade Crossing 

Accident Database
48

Safety Benefits

Average 

Annual 

Fatalities

Value of 

Statistical 

Life

= x

7 Fatalities

10 Years

= x $11,600,000

Annual Safety 

Benefits*

Annual Safety 

Benefits*

*Undiscounted.

• Assume the grade separation project mitigates all future fatalities at the 

crossing:

USDOT BCA Guidance

(Appendix A)
49

Safety Benefits

Average 

Annual 

Fatalities

Value of 

Statistical 

Life

= x

7 Fatalities

10 Years

= x $11,600,000

= $8,120,000 Per Year

Annual Safety 

Benefits*

Annual Safety 

Benefits*

*Undiscounted.

• Assume the grade separation project mitigates all future fatalities at the 

crossing:
50

Hypothetical BCA Example #1

Year Capital Cost Discounted Costs Safety Benefits Vehicle Travel Time 

Savings Discounted Benefits

2022 $50,000,000 $0 $0

2023 $0 $8,120,000 $361,666

2024 $0 $8,120,000 $361,666

2025 $0 $8,120,000 $361,666

2026 $0 $8,120,000 $361,666

2027 $0 $8,120,000 $361,666

2028 $0 $8,120,000 $361,666

2029 $0 $8,120,000 $361,666

2030 $0 $8,120,000 $361,666

2031 $0 $8,120,000 $361,666

2032 $0 $8,120,000 $361,666

• Assume construction in 2022, 10 years of project operations and no change in 

net maintenance costs between the scenarios:
51

Hypothetical BCA Example #1

• Next, we discount costs and benefits using a 7 percent discount rate:

Year Capital Cost Discounted Costs Safety Benefits Vehicle Travel Time 

Savings Discounted Benefits

2022 $50,000,000 $43,671,936 $0 $0 $0

2023 $0 $0 $8,120,000 $361,666 $6,923,566

2024 $0 $0 $8,120,000 $361,666 $6,470,623

2025 $0 $0 $8,120,000 $361,666 $6,047,311

2026 $0 $0 $8,120,000 $361,666 $5,651,692

2027 $0 $0 $8,120,000 $361,666 $5,281,956

2028 $0 $0 $8,120,000 $361,666 $4,936,407

2029 $0 $0 $8,120,000 $361,666 $4,613,465

2030 $0 $0 $8,120,000 $361,666 $4,311,649

2031 $0 $0 $8,120,000 $361,666 $4,029,579

2032 $0 $0 $8,120,000 $361,666 $3,765,961

Discounted Value = Future Year Value / (1+Discount Rate)^(Future Year - Base Discounting Year) 

Note: Totals may differ slightly due to rounding

$50,000,000 / (1+0.07)^(2022-2020)

(8,120,000+361,666) / (1+0.07)^(2023-2020)

(8,120,000+361,666) / (1+0.07)^(2032-2020)
52

Hypothetical BCA Example #1

• Next, we sum the discounted benefits and costs to get total discounted benefits 

and total discounted costs:

Year Capital Cost Discounted Costs Safety Benefits Vehicle Travel Time 

Savings

Discounted Benefits

2022 $50,000,000 $43,671,936 $0 $0 $0

2023 $0 $0 $8,120,000 $361,666 $6,923,566

2024 $0 $0 $8,120,000 $361,666 $6,470,623

2025 $0 $0 $8,120,000 $361,666 $6,047,311

2026 $0 $0 $8,120,000 $361,666 $5,651,692

2027 $0 $0 $8,120,000 $361,666 $5,281,956

2028 $0 $0 $8,120,000 $361,666 $4,936,407

2029 $0 $0 $8,120,000 $361,666 $4,613,465

2030 $0 $0 $8,120,000 $361,666 $4,311,649

2031 $0 $0 $8,120,000 $361,666 $4,029,579

2032 $0 $0 $8,120,000 $361,666 $3,765,961

TOTAL $43,671,936 $52,032,208

Note: Totals may differ slightly due to rounding
53

Results – The NPV and BCR

• Lastly, we calculate the project’s net present value (NPV) and benefit-cost ratio 

(BCR).

Note: Totals may differ slightly due to rounding

Net Present Value 

(NPV)

Benefit-Cost Ratio 

(BCR)

=

=

Total 

Discounted 

Benefits

Total 

Discounted 

Costs

Total Discounted Benefits

Total Discounted Costs

-

=

=

$52,032,208 - $43,671,936

= $8,360,272

$52,032,208

$43,671,936

= 1.2
54

Hypothetical BCA Example #1

Other potential benefits such a project might have:

o Net maintenance cost savings from improved state of good repair.

 Though these may be partially or fully offset by new maintenance costs for the 

new crossing.

o Reduced risk of derailment from improved state of good repair.

o Reduced emergency response delays.

o Reduced freight rail operating costs if track class upgrade allows for faster train 

movements or heavier trains .

 Same freight movements with fewer train-car miles or fewer crew-hours.

 Remember to cite sources and document assumptions such as crew per train and 

cost-per hour.

This is not meant to be an exhaustive list.
55

Hypothetical BCA Example #2

Proposed Project: Improve existing rail 

station by adding second track, level 

boarding, seating, and platform weather 

protection.

2022

Average Daily Station Users: 1,000 

Passengers
56

Approach

• We want to compare the state of the world with and without the proposed 

project improvement:

o No-Build Scenario: Current track configuration remains, no station seating, no 

level boarding, and no platform weather protection.

o Build Scenario: The rail station is expanded to two tracks, and level boarding, 

seating, and platform weather protection are added.

• Amenity benefits are the major expected benefit of this project.

• There could also be operation improvements for train traffic, to be discussed later.
57

Hypothetical BCA Example #2

• The project contains the following major amenity additions distinct from the nobuild scenario:

o Step-free Access to Train: $0.07 per Station User

o Platform Seating Availability: $0.12 per Station User

o Platform Weather Protection: $0.12 per Station User

o Total: $0.31 per Station User

• Be sure to document that the claimed build-scenario amenities are not available 

under the no-build scenario.

USDOT BCA Guidance

(Appendix A)
58

Amenity Benefits

• Calculations for the claimed amenity addition benefits would be as follows:

Benefit per 

Station 

User

Daily Station 

Users

Annualization 

Factor

= x x Annual Amenity 

Benefits*

*Undiscounted.
59

Amenity Benefits

• Calculations for the claimed amenity addition benefits would be as follows:

Benefit per 

Station 

User

Daily Station 

Users

Annualization 

Factor

= x x

= $0.31 x

Annual Amenity 

Benefits*

Annual Amenity 

Benefits*

*Undiscounted.

USDOT BCA Guidance

(Appendix A)
60

Amenity Benefits

• Calculations for the claimed amenity addition benefits would be as follows:

Benefit per 

Station 

User

Daily Station 

Users

Annualization 

Factor

= x x

= $0.31 x 1,000 x

Annual Amenity 

Benefits*

Annual Amenity 

Benefits*

*Undiscounted.

From ticketing records.
61

Amenity Benefits

• Calculations for the claimed amenity addition benefits would be as follows:

Benefit per 

Station 

User

Daily Station 

Users

Annualization 

Factor

= x x

= $0.31 x 1,000 x 365

Annual Amenity 

Benefits*

Annual Amenity 

Benefits*

*Undiscounted.

Trains come each day of the week here.
62

Amenity Benefits

• Calculations for the claimed amenity addition benefits would be as follows:

Benefit per 

Station 

User

Daily Station 

Users

Annualization 

Factor

= x x

= $0.31 x 1,000 x 365

Annual Amenity 

Benefits*

Annual Amenity 

Benefits*

= $113,150 Per Year

*Undiscounted.
63

Hypothetical BCA Example #2

• We would then put this annual value into the table and apply discounting just 

like in the previous example:

Year Capital Cost Discounted Costs Station Amenity 

Benefits Discounted Benefits

2022 $X,XXX,XXX $0 $0

2023 $0 $113,150 $92,364

2024 $0 $113,150 $86,322

2025 $0 $113,150 $80,674

2026 $0 $113,150 $75,397

2027 $0 $113,150 $70,464

2028 $0 $113,150 $65,854

2029 $0 $113,150 $61,546

2030 $0 $113,150 $57,520

2031 $0 $113,150 $53,757

2032 $0 $113,150 $50,240

Note: Totals may differ slightly due to rounding

113,150 / (1+0.07)^(2032-2020)
64

Hypothetical BCA Example #2

Additionally, the second track and platform component of the project may 

improve operations for freight and passenger trains:

o Freight trains can now pass while one passenger train stops at the station

 Freight train operating and crew-cost savings.

o Fewer delays to passenger trains if they arrive at the same time, as both can 

stop at the station simultaneously.

 Passenger train operating and crew-cost savings.

 Travel time savings for passengers on trains.

 Refer to BCA Guidance Appendix A for local (e.g., commuter rail) and longdistance (e.g., Amtrak) values of travel time.

o Remember to document assumptions and sources for crew per train and cost 

per train-hour or crew-hour.
65

Hypothetical BCA Example #3

Proposed Project: Expand track capacity 

from two to four tracks to separate 

passengers and freight services
66

Approach

• We want to compare the state of the world with and without the proposed 

project improvement:

o No-Build Scenario: Freight trains and passenger trains share two tracks, 

leading to significant delays and slowdowns.

o Build Scenario: Passenger trains use two dedicated tracks, while freight trains 

use two other dedicated tracks, minimizing delays and conflicts between the 

two.

• Two expected major benefit categories in this case would be travel time savings 

for train passengers and operating cost savings for freight and passenger 

railroads.
67

Hypothetical BCA Example #3

• Carefully document baseline delay data:

o How often are trains delayed?

o How long are the delays on average?

o How many passengers are on delayed trains, 

on average?

• Carefully analyze what proportion of these 

delays would be mitigated by the proposed 

project improvements:

o Not all types of delays will likely be 

mitigated.

o Carefully explain assumptions used.
68

Hypothetical BCA Example #3

• Travel time savings for train passengers:

o See BCA Guidance Appendix A for values to monetize travel time savings for 

local (e.g., commuter rail), long-distance (e.g. Amtrak), and high-speed rail 

(e.g. +125 mph).

• Operating cost savings for freight and passenger railroads:

o Sources may include financial documents or other information from the 

railroads.

o Carefully document sources and assumptions used.
69

Hypothetical BCA Example #3

• Projects that improve the speed or reliability of train movements may also 

create induced demand and modal shift to rail:

o Remember to apply the rule-of-half to benefits to any users induced to the 

mode being improved, see the BCA Guidance for details and examples.

• To the extent there are reductions in externalities due to modal shift, they 

should be quantified and monetized:

o Examples include emissions, congestion, noise, and the portion of pavement 

damage not covered by fuel taxes paid.

o Be mindful of rural versus urban values for noise and congestion reduction.

o See the BCA Guidance Appendix A for monetization values.
70

Avoiding Common Mistakes

• Make sure inputs and assumptions in the 

BCA are sourced and documented.

• Make sure the submitted BCA and claimed 

benefits match the project being proposed 

for grant funding.

• Show individual utility of different 

separable project components.

• Provide an unlocked BCA spreadsheet 

(rather than a PDF of a spreadsheet).
71

BCA and FRA Grant Programs

Programs Purpose Funds Available in FY22 Upcoming Key Milestones BCA Required?

Consolidated Rail Infrastructure 

and Safety Improvements (CRISI)

To fund projects that improve the safety, 

efficiency, or reliability of intercity passenger and 

freight rail.

$1.6 Billion Notice of Funding Opportunity 

expected in August 2022 Yes

Railroad Crossing 

Elimination (New)

To promote highway rail or pathway-rail grade crossing 

improvement projects that focus on improving the 

safety and mobility of people and goods.

$600 Million Notice of Funding Opportunity 

expected in expected in June 

2022

No

Federal-State 

Partnership for 

Intercity Passenger Rail

(Significantly Changed)

To fund capital projects that reduce the state of good 

repair backlog, improve performance, or expand or 

establish new intercity passenger rail service, including 

privately operated intercity passenger rail service if an 

eligible applicant is involved.

$7.2 billion

National Fed State- Notice of 

Funding Opportunity expected 

in expected in October 2022

Northeast Corridor Fed StateNotice of Funding Opportunity 

expected in expected in 

December 2022

National Fed State 

- Economic 

Analysis Required

Northeast 

Corridor Fed 

State - No 

Restoration & Enhancement To provide operating assistance to initiate, restore, or 

enhance intercity passenger rail service. $50 million

Notice of Funding Opportunity 

expected later this year Yes

Interstate Rail Compacts (New)

This program will provide funding for interstate rail 

compacts' administrative costs and to conduct railroad 

systems planning, promotion of intercity passenger rail 

operations, and the preparation of grant applications.

$15 million

($3 million annually)

Notice of Funding Opportunity 

expected later this year No
72

Calendar of Upcoming FRA Publications

June 2022

FY22 Railroad 

Crossing 

Elimination 

Program NOFO 

Announced

October 2022 

FY22 Federal-state 

Partnership 

(National) NOFO 

Announced

* Targeted selection period, subject to change

Stakeholder Engagement 

NOFO† Selections

NOFO Announcement 

Document Publication

April 2022 

Railroad Crossing 

Elimination 

Program

Listening Sessions

April/May 2022 

Benefit Cost 

Analysis 

Educational 

Webinar Held

May/ 

June 2022* 

FY21 CRISI

Selections 

Announced

May 2022

Corridor 

Identification and 

Development 

Program 

Framework 

Document 

Published

August 2022 

FY22 CRISI 

NOFO

Announced

November 2022 

Northeast Corridor 

Project Inventory 

Published

August/ 

September 

2022*

FY21 Federalstate Partnership 

Selections 

Announced

December 2022 

FY22 Federal-state 

Partnership 

(Northeast Corridor) 

NOFO Announced

June 2022

Northeast Corridor 

Project Inventory Notice 

for Comment Published

† NOFO – Notice of Funding 

Opportunity
Contact Us

Federal Railroad Administration

1200 New Jersey Avenue, SE

Washington, DC 20590

Connect with us USDOTFRA

Points of Contact

Judah Lyman, Transportation Analyst, FRA

judah.lynam@dot.gov

Stephen O’Connor, Industry Economist, FRA

stephen.o'connor@dot.gov