[Federal Register Volume 87, Number 121 (Friday, June 24, 2022)]
[Notices]
[Pages 37905-37911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13495]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2022-0049]


Federal-State Partnership for Intercity Passenger Rail Program; 
Northeast Corridor Project Inventory

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Notice of Proposed Approach (Notice) to the Northeast Corridor 
Project Inventory and the Federal-State Partnership for Intercity 
Passenger Rail Program for Northeast Corridor projects.

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SUMMARY: FRA is publishing this Notice to describe its proposed 
approach to the development of the Northeast Corridor (NEC) project 
inventory (NEC Project Inventory), which is a required component of the 
Federal-State Partnership for Intercity Passenger Rail Program 
(Partnership Program). FRA is required to publish an NEC Project 
Inventory not later than one year after the enactment of the 
Infrastructure Investment and Jobs Act, also known and the Bipartisan 
Infrastructure Law (BIL). The NEC Project Inventory must be updated at 
least every two years.

DATES: Written comments on this Notice must be received on or July 25, 
2022.

ADDRESSES: Comments should refer to docket number FRA-2022-0049 and be 
submitted at https://www.regulations.gov. See Section V for further 
information.

FOR FURTHER INFORMATION CONTACT:  For additional information, please 
contact Amishi Castelli, Northeast Corridor Program Manager, Office of 
Policy and Planning, at email: <a href="/cdn-cgi/l/email-protection#5b1a363228333275183a282f3e3737321b3f342f753c342d"><span class="__cf_email__" data-cfemail="a3e2cecad0cbca8de0c2d0d7c6cfcfcae3c7ccd78dc4ccd5">[email protected]</span></a> or telephone: 
202-845-4394, or Bryan Rodda, Lead Community Planner, Office of Policy 
and Planning, at email: <a href="/cdn-cgi/l/email-protection#2d6f5f544c43037f4249494c6d494259034a425b"><span class="__cf_email__" data-cfemail="dc9eaea5bdb2f28eb3b8b8bd9cb8b3a8f2bbb3aa">[email protected]</span></a> or telephone: 202-493-0443.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
    A. Background on Northeast Corridor Planning
    B. Authority
    C. Definitions
II. Eligibility
    A. Applicant Eligibility
    B. Project Eligibility
III. NEC Project Inventory Development
IV. Program Administration
    A. NEC Project Inventory and Notice of Funding Opportunity 
Publication
    B. Project Selections
    C. Letters of Intent and Phased Funding Agreements
V. Comments
VI. Next Steps

I. Overview

A. Background on Northeast Corridor Planning

    The NEC is the most heavily used passenger rail corridor in the 
United States. Pre-COVID-19, the NEC served over 800,000 daily 
passengers traveling on more than 2,000 daily commuter and intercity 
trains and supported 50-60 daily freight trains.
    In 2017, FRA presented its vision for growth along the NEC with the 
NEC FUTURE Record of Decision. See www.fra.dot.gov/necfuture/tier1_eis/rod/. The Northeast Corridor Commission (NEC Commission), composed of 
18 members, including representatives from each of the eight Northeast 
Corridor states, the District of Columbia, Amtrak, and the U.S. 
Department of Transportation, subsequently developed an implementation 
plan (CONNECT NEC 2035 or C35) to deliver the first 15-year phase of 
investment to realize the NEC FUTURE vision. The NEC Commission issued 
C35 in July 2021. C35 identified and provided a sequencing and delivery 
strategy for completing projects to eliminate the state of good repair 
backlog on--and modernize and make targeted improvements to--the NEC. 
See http://nec-commission.com/connect-nec-2035/. The NEC Commission is 
currently updating C35 to reflect the updated project information and 
better consider workforce and funding constraints.

B. Authority

    The Partnership Program was reauthorized and revised in the BIL, 
Title II, Sec. Sec.  22106 and 22307, Public Law 117-58 (2021); 
codified at 49 U.S.C. 24911. Under the Partnership Program, the 
Secretary of Transportation (Secretary) is directed to develop and 
implement a program for issuing grants to applicants, on a competitive 
basis, to fund 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. The Partnership Program 
revisions in the BIL require the Secretary to, among other things, 
develop and publish an NEC Project Inventory to (1) create a 
predictable project pipeline that will assist Amtrak, States, and the 
public with long-term capital planning, and (2) use the NEC Project 
Inventory when selecting projects located on the NEC for Partnership 
Program funds. 49 U.S.C. 24911. FRA is delegated the authority under 
the BIL to establish and administer the Partnership Program. 49 CFR 
1.89(a).
    FRA encourages NEC stakeholders to submit comments to this Notice 
consistent with the directions below. FRA will consider these comments 
in developing the NEC Project Inventory and the associated Notice of 
Funding Opportunity (NOFO) for the Partnership Program. As described 
below, FRA plans to publish the NEC Project Inventory, consistent with 
the BIL, in November 2022, with the NOFO for projects on the NEC 
following closely after.

C. Definitions <SUP>1</SUP>
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    \1\ The definitions used in this Notice are consistent with 
FRA's Draft Guidance on Development and Implementation of Railroad 
Capital Projects, currently available for public comment at https://www.regulations.gov (docket number FRA-2022-0035). To the extent 
necessary, FRA will update definitions in the NOFO.
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    Construction Stage: the Lifecyle Stage of a project following the 
Final Design Lifecycle Stage and during which the project is completely 
built and placed into operational use. This stage may include physical 
construction, procurement of vehicles and equipment, project 
administration, testing of equipment as appropriate, systems 
integration testing, workforce training, system certification, 
procurement of insurance, pre-revenue service, and start-up testing.
    Defined Capital Renewal Projects: a geographically integrated set 
of activities to repair, replace, or modernize basic infrastructure 
assets along a corridor section that is executed in accordance with a 
defined scope, schedule, and budget. Basic infrastructure assets 
include rails, ties, ballast, communication systems, electric traction 
power systems, and undergrade bridges.
    Final Design Stage: the Lifecyle Stage of a project following the 
Project Development Lifecycle Stage during which the project design is 
advanced to be ready for construction. This stage includes development 
of final engineering plans and specifications necessary for 
construction of the project; securing agreements (including

[[Page 37906]]

execution of cost share agreements) necessary to construct and operate 
the project; and demonstration of commitment of the financial resources 
necessary to complete the project. This stage may include completion of 
property acquisition, and early construction or relocations and 
procurement of equipment and materials, if permissible under applicable 
law.
    Improvement Projects: those projects to improve reliability, 
increase capacity, reduce travel time, or improve the customer 
experience by replacing existing assets with superior ones or 
introducing new assets to existing NEC infrastructure, facilities, and 
equipment capabilities.
    Lifecycle Stage: consecutive stages of a project as applicable, to 
include Project Planning Stage, Project Development Stage, Final Design 
Stage and Construction Stage. Each sequential stage involves specific 
project activities including the preparation of appropriate project 
management documents. FRA evaluates project readiness for a subsequent 
lifecycle stage when considering a project for funding.
    Major Backlog Projects: those projects necessary to achieve a state 
of good repair, but that are not undertaken on a routine basis, such as 
rehabilitation or replacement of major bridges and tunnels. As with all 
capital projects, Major Backlog Projects involving replacement of a 
major structure should contemplate all work associated with that 
replacement as a single project. As of the publication of this Notice, 
the NEC Commission has identified Major Backlog projects on the NEC as:

1. Baltimore and Potomac Tunnel Replacement
2. Bush River Bridge Replacement
3. Connecticut River Bridge Replacement
4. East River Tunnel Rehabilitation
5. Gunpowder River Bridge Replacement
6. Pelham Bay Bridge Replacement
7. Susquehanna River Bridge Replacement
8. Cos Cob Bridge Replacement
9. Devon Bridge Replacement
10. Saugatuck River Bridge Replacement
11. Walk Bridge Program
12. Hudson Tunnel Project
13. Sawtooth Bridges Replacement Project
14. Portal North Bridge Project
15. Highline Renewal and State of Good Repair

    Major Capital Project: a project with an estimated Total Project 
Cost equal to or greater than $300 million and has, or is anticipated 
to request, $100 million or more in Federal financial assistance.
    Stations Projects: those projects to repair, replace, modernize or 
improve an existing station, occurring primarily within the boundaries 
of the station property, or projects to construct an expanded, new or 
replacement station.
    Northeast Corridor: the main rail line between Boston, 
Massachusetts and the District of Columbia; the branch rail lines 
connecting to Harrisburg, Pennsylvania, Springfield, Massachusetts, and 
Spuyten Duyvil, New York; and facilities and services used to operate 
and maintain the main and branch rail lines described above. 49 U.S.C. 
24911(a)(3).\2\
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    \2\ While other definitions for the NEC exist, this definition 
is used in the Partnership Program and is consistent with definition 
used in 49 U.S.C. 24904(e).
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    Northeast Corridor Capital Investment Plan (NEC CIP): the planning 
document developed by the NEC Commission pursuant to 49 U.S.C. 24904(b) 
and any subsequent updates to such document (available at http://nec-commission.com/documents/).
    Northeast Corridor Project (NEC Project): a project located on, or 
in primary use for, the NEC, consistent with 49 U.S.C. 24911(d)(1).
    Northeast Corridor Service Development Plan: the planning document 
developed by the NEC Commission pursuant to 49 U.S.C. 24904(a) and any 
subsequent updates to such document or associated analyses. As of the 
time of this Notice, the existing Northeast Corridor Service 
Development Plan is known as CONNECT NEC 2035.
    Planning Studies: those projects which include only planning 
activities such as railroad transportation market forecasting, 
operations analysis, fleet planning, cost analysis, station and 
facility planning, environmental resource consideration, and other 
similar activities. Planning studies have no associated construction in 
their current form. Planning Studies only have one Lifecycle Stage, the 
Project Planning Stage.
    Project Development Stage: the Lifecyle Stage of a project, 
following the Planning Stage, during which project design, 
environmental and other studies are advanced to ensure the project is 
ready for implementation. This stage includes completion of the 
environmental review process required under the National Environmental 
Policy Act (NEPA) and other related environmental laws, and advancement 
of the permitting processes as appropriate; completion of preliminary 
engineering and other design disciplines to develop estimates of risk, 
costs, benefits, and impacts, and sufficient to advance to Final 
Design; and identification of financial resources necessary to complete 
the project.
    Project Planning Stage: the Lifecyle Stage of a project during 
which project concepts are identified to adequately address 
transportation needs and opportunities. The purpose of the Project 
Planning Stage is to identify and compare the costs, benefits, and 
impacts of project options as a means of providing private and 
government decisionmakers with information to reach transportation 
solutions. This stage includes the following activities to demonstrate 
a practical project proposal that addresses a clear project need and 
support of participant stakeholders: development of conceptual design 
to establish the type and scope of capital improvements to be made; 
advancement of technical studies (e.g., railroad transportation market 
forecasting, operations analysis, etc.); and engagement of stakeholders 
and the public as appropriate.
    Project Sponsor: the entity responsible for implementing a project 
that may also be an applicant seeking or grantee receiving Federal 
financial assistance.
    Project Type: a categorization as either Major Backlog Projects, 
Defined Capital Renewal Projects, Improvement Projects, Stations 
Projects, or Planning Studies.
    Shared Benefit Projects: projects that benefit both intercity and 
commuter rail services.
    Total Project Cost: the aggregate estimated cost for all remaining 
Lifecycle Stages in year-of-expenditure dollars that accounts for 
inflation and appropriate contingency amounts.

II. Program Eligibility

A. Eligible Applicants

    The following entities are eligible to submit applications for 
Partnership Program funds: a State (including the District of 
Columbia); a group of States; an Interstate Compact; a public agency or 
publicly chartered authority established by one or more States; a 
political subdivision of a State; Amtrak, acting on its own behalf or 
under a cooperative agreement with one or more States; a Federally 
recognized Indian Tribe; or any combination of these entities.
    The following is a non-exhaustive list of potential eligible 
Project Sponsors for NEC Projects:

--States, including the District of Columbia, Maryland, Delaware, 
Pennsylvania, New Jersey, New York,

[[Page 37907]]

Connecticut, Rhode Island, and Massachusetts;
--Public agencies or publicly chartered authorities established by one 
or more States, including the Maryland Transit Administration, 
Southeastern Pennsylvania Transportation Authority, New Jersey Transit 
Corporation, New York Metropolitan Transportation Authority, and 
Massachusetts Bay Transportation Authority; and
--Amtrak (formally known as the National Railroad Passenger 
Corporation).

    In addition to the list above, other existing or future entities 
whose applications demonstrate that they satisfy the eligible applicant 
criteria may apply forand potentially receive--Partnership Program 
funding.

B. Eligible Projects

    For a project to be eligible for NEC Partnership Program funding, a 
project must be an NEC Project and be included on the NEC Project 
Inventory consistent with 49 U.S.C. 24911(c). Under 49 U.S.C. 24911(c), 
the following projects, including acquisition of real property 
interests, are eligible to receive grants under the Partnership 
Program:
    (1) A project to replace, rehabilitate, or repair infrastructure, 
equipment, or a facility used for providing intercity passenger rail 
service to bring such assets into a state of good repair;
    (2) A project to improve intercity passenger rail service 
performance, including reduced trip times, increased train frequencies, 
higher operating speeds, improved reliability, expanded capacity, 
reduced congestion, electrification, and other improvements, as 
determined by the Secretary;
    (3) A project to expand or establish new intercity passenger rail 
service;
    (4) A group of related projects described in paragraphs (1) through 
(3); and
    (5) The planning, environmental studies, and final design for a 
project or group of projects described in paragraphs (1) through 
(4).\3\
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    \3\ Applications for these activities under this eligibility 
category will be considered independently, regardless of whether the 
application also requests project funding for subsequent Lifecycle 
Stages such as Final Design Stage and Construction Stage.
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    Consistent with these requirements and the prohibition at 49 U.S.C. 
22905(f),\4\ NEC Projects that solely benefit commuter rail passenger 
transportation are not eligible to receive Partnership Program funding 
and will not be included in the NEC Project Inventory, even if such 
projects are included in the NEC CIP or C35. Partnership Program 
projects must result in reasonable investments for intercity rail 
passenger transportation. Such projects may be located on shared 
corridors with commuter rail passenger transportation and may benefit 
both intercity and commuter services. In this Notice, such projects are 
referred to as Shared Benefit projects. NEC Projects may also benefit 
freight rail service.
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    \4\ Under 49 U.S.C. 24911(i), Partnership Program grants are 
subject to the conditions in 49 U.S.C. 22905.
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III. NEC Project Inventory

    FRA's development of the NEC Project Inventory will be consistent 
with the requirements of 49 U.S.C. 24911(e).
    FRA views the NEC Project Inventory as a logical outgrowth of the 
collaborative planning efforts and project pipeline development work 
completed as part of the NEC Commission's C35 and NEC CIP. In 
developing the NEC Project Inventory, FRA will rely in large part on 
C35, analyses and new information considered in updates to C35, and the 
NEC CIP (collectively referred to in this Notice as NEC Commission 
Planning Documents). FRA intends to rely on the best available 
information from these sources as of August 2022 to inform the first 
NEC Project Inventory. FRA will not accept requests from eligible 
entities to add their projects to the NEC Project Inventory, but rather 
FRA seeks public comment on the approach in developing the NEC Project 
Inventory via this Notice.
    Following initial publication of the NEC Project Inventory, FRA 
will update it every two years at minimum, consistent with 49 U.S.C. 
24911(e).

A. FRA's Approach To Developing the NEC Project Inventory

    This section describes FRA's interpretation of each of the NEC 
Project Inventory requirements from Sec.  24911(e). FRA will develop an 
inventory that:
    (1) Identifies capital projects for Federal investment, project 
applicants, and proposed Federal funding levels. 49 U.S.C. 24911(e)(1).
    The NEC Project Inventory will include NEC Projects in all 
Lifecycle Stages and identify Project Sponsors for each project. FRA 
will review the NEC Commission Planning Documents and other sources of 
project information as appropriate to identify projects for inclusion 
on the NEC Project Inventory and preliminarily assess project 
eligibility under the Partnership Program.
    In general, each project FRA finds eligible for funding under the 
Partnership Program will receive an individual entry on the NEC Project 
Inventory summarizing the project's scope, schedule, and cost 
information. If Defined Capital Renewal Projects are still in 
development and therefore not specifically identified in NEC Commission 
Planning Documents or other sources of information at the time of 
publication of the NEC Project Inventory, the FRA may identify and 
allocate proposed funding in the NEC Project Inventory for such 
projects that may become ready for funding after publication of the 
then-current NEC Project Inventory but prior to the next NEC Project 
Inventory update.
    FRA will identify project applicants based on the Project Sponsor 
identified in the NEC Commission Planning Documents and other sources 
of project information as appropriate.
    Proposed Partnership Program Federal funding levels for NEC Project 
Inventory projects may be described either in percentage levels (i.e., 
percentage of total cost comprising Partnership Program funding in the 
project) or amounts.
    Section IVA of this Notice (Program Administration) discusses 
initially available funds for the Partnership Program, and states that 
proposed funding levels on the NEC Project Inventory are not 
commitments, selections, or obligations of Federal funding, and are 
subject to changes identified under Section IVB.
    (2) Specifies the order in which the Secretary will provide grant 
funding to projects that have identified sponsors and are located along 
the Northeast Corridor, including a method and a plan for apportioning 
funds to project sponsors for the two-year period, which may be altered 
by the Secretary, as necessary, if recipients are not carrying out 
projects in accordance with the anticipated schedule. 49 U.S.C. 
24911(e)(2).
NEC Project Inventory Order
    FRA will specify the order of funding for the identified NEC 
Projects over a two-year period starting from the publication of the 
NEC Project Inventory. In specifying the order of funding, FRA will 
group projects on the NEC Project Inventory based on the project's 
anticipated start year for the lifecycle stage for which Project 
Sponsors are expected to request Partnership Program funding. FRA will 
allocate a small portion of Partnership Program funding to Planning 
Studies. FRA will then prioritize projects by

[[Page 37908]]

Project Type and, within Project Type, by Lifecycle Stage,\5\ as 
follows:
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    \5\ Within the NEC Project Inventory, FRA will consider 
allocating funding to multiple Lifecycle Stages.
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First Priority
    Major Backlog Projects in the following order based on Lifecycle 
Stage: (1) Project Planning Stage (2) Project Development Stage; (3) 
Final Design Stage; and (4) Construction Stage;
Second Priority
    Defined Capital Renewal Projects in the following order based on 
Lifecycle Stage: (1) Project Planning Stage (2) Project Development 
Stage; (3) Final Design Stage; and (4) Construction Stage;
Third Priority
    Improvement and Stations Projects in the following order based on 
Lifecycle Stage: (1) Construction Stage; (2) Final Design Stage; (3) 
Project Development Stage; and (4) Project Planning Stage.
    Once projects have been prioritized, FRA will preliminarily assess 
readiness.\6\ In assessing readiness for the anticipated start year, 
FRA will review the NEC Commission Planning Documents and other sources 
of project information as appropriate to understand the following 
information, which may vary in completeness based on Lifecycle Stage of 
the project:
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    \6\ FRA will confirm readiness as part of the evaluation and 
selection process conducted for applications received in response to 
the NOFO for the Partnership Program (see Section IVB).
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    Lifecycle Stage: The Project Sponsor's completion of prior 
Lifecycle Stage work;
    Environmental risk: The project's environmental and permitting 
approvals, and likelihood of obtaining the any outstanding approval(s) 
affecting project obligation and completion;
    Technical capacity: The Project Sponsor's capacity to successfully 
deliver the project in compliance with applicable Federal requirements; 
and
    Financial completeness: For projects requiring funding for 
Lifecycle Stages beyond Project Development, the likelihood that 
sufficient financial resources are available to complete the project; 
for projects requiring funding for the Planning and Project Development 
Lifecycle Stages, the likelihood that sufficient financial resources 
are available to complete those Stages.
    Funding Shares: For Shared Benefit projects, the proposed intercity 
passenger rail share, commuter rail share, and local share (if 
different from the combined intercity passenger rail share and commuter 
rail share) of the Total Project Costs.
    FRA will also consider consistency with the United States 
Department of Transportation (USDOT) Strategic Goals. FRA will 
qualitatively determine, based on information in the NEC Commission 
Planning Documents and other sources of project information as 
appropriate, whether projects address the goals (described in detail at 
https://www.transportation.gov/dot-strategic-plan) of safety, economic 
strength and global competitiveness, equity, climate and 
sustainability, transformation of the transportation system to serve 
current and future transportation challenges, and organizational 
excellence that advances the mission of the USDOT.
Method and Plan for Apportioning Funds
    In the NEC Project Inventory, FRA will identify proposed 
allocations for identified projects over a two-year period from the 
date of publication of the Inventory. The NEC Project Inventory will 
also describe FRA's method and plan for making such allocations.
    (1) For Major Backlog Projects that will begin or are anticipated 
to begin the Construction Stage prior to Federal fiscal year 2027 and 
are selected for an award under the Partnership Program's competitive 
process, FRA intends to allocate sufficient funding to pay a Federal 
share up to 80 percent of Total Project Costs. For such projects, using 
NEC Commission Planning Documents and other sources of project 
information as appropriate, FRA will identify: the amount of funding, 
if any, received or committed from another Federal financial assistance 
program; and, the amount of funding, if any, that a project sponsor has 
requested a Federal agency consider including as part of a Federal 
funding recommendation. FRA will then allocate Partnership Program 
funding based on the remaining Total Project Cost. FRA may use Letters 
of Intent or Phased Funding Agreements discussed in subsection IVC 
below for this purpose.
    (2) For Defined Capital Renewal Projects and Planning Studies that 
are selected for an award under the Partnership Program's competitive 
process, FRA may allocate a Federal share up to 80 percent of Total 
Project Costs.
    (3) For certain Station Projects and Improvement Projects that are 
selected for an award under the Partnership Program's competitive 
process, Project Sponsors may be required to provide a greater than 20 
percent non-Federal match. Specifically, for these projects, FRA will 
consider allocating the remaining Partnership Program funds 
commensurate with the intercity passenger rail benefits of the project.
    As discussed in Program Administration (Section IV), proposed 
funding levels on the NEC Project Inventory are not commitments, 
selections, or obligations of Federal funding. The NEC Project 
Inventory identifies potential Projects and Project Sponsors expected 
to submit applications in response to the Partnership Program NOFO, and 
represents FRA's best understanding of the anticipated Partnership 
Program funding requests at the time of publication of the NEC Project 
Inventory. Award selections and award amounts may differ from the 
allocations and projects identified in the NEC Project Inventory.
    Inclusion on the NEC Project Inventory does not limit Project 
Sponsors' ability to pursue and receive Federal financial assistance 
through other programs. Projects receiving funding commitments from 
other programs will enable the Partnership Program to fund additional 
projects.
    FRA anticipates that the NEC Project Inventory published in Fall 
2022 will identify NEC Projects with an anticipated start year in 
calendar years 2023-2024 for the lifecycle stage for which Project 
Sponsors are expected to request Partnership Program funding. 
Subsequent updates to the NEC Project Inventory will identify projects 
underway, projects with Letters of Intent or Phased Funding Agreements 
in effect, and NEC Projects ready for funding in the subsequent two-
year periods.
Alterations to the NEC Project Inventory
    FRA may alter the NEC Project Inventory as necessary if recipients 
are not carrying out projects in accordance with the anticipated 
schedule. Such changes will be incorporated into subsequent updates to 
the NEC Project Inventory.
    (3) Takes into consideration the appropriate sequence and phasing 
of projects described in the Northeast Corridor capital investment plan 
developed pursuant to Sec.  24904(b); and is consistent with the most 
recent Northeast Corridor service development plan update described in 
Sec.  24904(a). 49 U.S.C. 24911(e)(3)-(4).
    FRA will rely on the NEC Commission Planning Documents when 
developing the NEC Project Inventory. To the greatest extent feasible, 
FRA will ensure consistency between the NEC

[[Page 37909]]

Commission Planning Documents and the NEC Project Inventory, directly 
incorporating information provided in the NEC Commission Planning 
Documents into the NEC Project Inventory. Such information may include 
sequencing and phasing project information, if available, as well as 
project names, Lifecycle Stage, Total Project Cost, project 
descriptions and scope, proposed start and end dates, and similar 
information.
    (4) Takes into consideration the existing commitments and 
anticipated Federal, project applicant, sponsor, and other relevant 
funding levels for the next 5 fiscal years based on information 
currently available to the Secretary. 49 U.S.C. 24911(e)(5).
    For a project identified on the NEC Project Inventory, FRA will 
identify, using NEC Commission Planning Documents and other sources of 
project information as appropriate, the amount of Federal funding, if 
any, that a project sponsor has received, or has requested a Federal 
agency consider including as part of a Federal funding recommendation, 
for all or a portion of Total Project Costs from non-Partnership 
Program funding. FRA will then allocate available Partnership Program 
funding based on the remaining amounts necessary to complete the 
project or project Lifecycle Stage(s). For example, if an NEC Project 
included on the NEC Project Inventory has received an award from 
another Federal source (e.g., a USDOT modal agency or non-USDOT 
source), FRA would allocate Partnership Program funds solely to the 
unfunded remainder.
    Unless specifically provided for in law, funding from other Federal 
programs counts toward the not-to-exceed 80 percent Federal share 
maximum for any project receiving Partnership Program funds. For 
example, if a project with a $100 million Total Project Cost receives a 
$20 million award from the Federal Transit Administration, FRA's 
Partnership Program contribution would be capped at $60 million to 
ensure the total Federal share from all Federal sources does not exceed 
80 percent of the Total Project Cost.
    (5) Is developed in consultation with the Northeast Corridor 
Commission and the owners of Northeast Corridor infrastructure and 
facilities. 49 U.S.C. 24911(e)(6).
    This Notice is one component of FRA's consultation process with the 
NEC Commission and owners of NEC infrastructure and facilities. This 
Notice also permits interested industry and public sector entities and 
the public to comment on FRA's proposed approach to the NEC Project 
Inventory (see Section V). FRA's goal in publishing this Notice is to 
provide transparency about FRA's approach to developing the NEC Project 
Inventory, consult with the NEC Commission and the owners of the NEC 
infrastructure and facilities as required under 49 U.S.C. 24911(e)(6), 
and ultimately maximize efficiency and deliver the greatest benefits in 
implementing the Partnership Program for NEC Projects.

IV. Program Administration

A. Publication of NEC Project Inventory and Notice of Funding 
Opportunity

    FRA will publish the NEC Project Inventory no later than November 
15, 2022, and not less often than every other year thereafter. Projects 
and allocations in the NEC Project Inventory are not funding 
commitments and Project Sponsors must proceed through a competitive 
grant process and be selected for funding. Following publication of the 
initial NEC Project Inventory, FRA will publish a NOFO soliciting 
applications for eligible projects identified on the NEC Project 
Inventory. FRA intends to simplify the application solicitation where 
possible to both leverage the substantial information included in the 
NEC Project Inventory and the NEC Commission's Planning Documents, and 
to reduce application burden on Project Sponsors. The NOFO will 
describe the Program's requirements, the evaluation and selection 
criteria that each application will be expected to address, and outline 
the broader USDOT goals that selections made under this Program will 
help contribute towards. Additional information, such as the required 
documentation that will be included for a streamlined application 
package, will be further articulated in the NOFO. FRA also intends to 
streamline the selection and obligation process.
    The NOFO is anticipated to make funds available that are 
appropriated in the Consolidated Appropriations Act, 2022, Public Law 
117-103 and in Title VIII of the BIL, and any additional funding 
available at the time the NOFO is issued, such as fiscal year 2023 
appropriations. Such annual appropriations may have different funding 
restrictions and requirements than currently available funding. If 
applicable, these differences will be summarized in the NOFO. Grantees 
must comply with all applicable Consolidated Appropriations Act, 2022, 
and other relevant requirements.

B. Project Selections

    FRA will make project selections for Partnership Program funding 
consistent with the NEC Project Inventory, unless when necessary to 
address materially changed infrastructure or service conditions, 
changes in Project Sponsor capabilities or commitments, or other 
significant changes since the completion of the most recently issued 
NEC Project Inventory. Variation in amounts allocated on the NEC 
Project Inventory and the amounts requested in Partnership Program 
applications and selections may result in FRA updating the NEC Project 
Inventory more frequently than every two years.
    Materially changed infrastructure or service conditions may result 
from external events such as natural disasters or pandemics, or events 
such as asset failures or loss of functionality that sever or impede 
normal infrastructure and service conditions.
    Changes in Project Sponsor capabilities or commitments may include 
changes to fiscal capacity or organizational resources that limit or 
expand a Project Sponsor's ability to implement projects on the NEC 
Project Inventory.
    Other significant changes may include a project receiving funding 
from other Federal or non-Federal sources that changes the project's 
need for Partnership Program funding, future Congressional direction, 
or projects that achieve (or fail to achieve) expected readiness 
milestones earlier (or later) than anticipated at the time the most 
recent NEC Project Inventory was issued.
Evaluation and Selection Process
    FRA will review and evaluate applications received in response to 
the NOFO for consistency with the NEC Project Inventory, eligibility, 
and completeness. Ineligible and incomplete applications and 
applications for projects that are not on the NEC Project Inventory 
will not be evaluated for selection. Project Sponsors of rail projects 
who are ineligible to receive Partnership Program funding, who are not 
selected for Partnership Program funds, or who receive less than the 
requested Partnership Program funding amount, are encouraged to 
consider other FRA and Departmental grant programs which are found at 
https://railroads.dot.gov/grants-loans/competitive-discretionary-grant-programs/competitive-discretionary-grant-programs and https://www.transportation.gov/grants.
    FRA intends to evaluate applications by taking into account the 
following factors:

[[Page 37910]]

--Proposed amount and commitment of non-Federal match and/or other 
Federal funds;
--Factors indicating project readiness for funding:

    Lifecycle Stage: FRA will assess the applicant's completion of 
prior Lifecycle Stage work;
    Environmental risk: FRA will assess the project's environmental and 
permitting approval(s) and likelihood of any outstanding approval(s) 
affecting project obligation or completion;
    Technical capacity: FRA will assess the applicant's capacity to 
successfully deliver the project in compliance with applicable Federal 
requirements;
    Financial completeness: FRA will assess identified financial 
resources necessary to complete the project. For a Project where an 
applicant is requesting funding for the Final Design and/or 
Construction Lifecycle Stages of projects, FRA will assess 
demonstration of commitment of the financial resources through the 
completion of the project.
--Consistency with Strategic Goals: FRA will assess, via a review of 
quantitative and/or qualitative metrics as appropriate, the extent to 
which a project achieves outcomes consistent with the following 
Strategic Goals (further detail at https://www.transportation.gov/dot-strategic-plan), to include safety, economic strength and global 
competitiveness, equity, climate and sustainability, transformation of 
the transportation system to serve current and future transportation 
challenges, and organizational excellence that advances the mission of 
the Department of Transportation.

    FRA will make NEC Project selections or project component 
selections for Partnership Program funding consistent with the priority 
in the NEC Project Inventory as required under 49 U.S.C. 
24911(d)(1)(A). Selected project scope, schedule and costs may vary 
from the NEC Project Inventory as a result of specific funding 
requests, detailed and updated application submissions, and FRA's 
assessment of the evaluation factors described above. Variation in 
amounts allocated on the NEC Project Inventory and the amounts 
requested in Partnership Program applications and selections may result 
in FRA updating the NEC Project Inventory more frequently than every 
two years.
Shared Benefit Projects
    Shared Benefit Projects are eligible for Partnership Program 
funding. In evaluating applications for such projects, FRA will 
consider if the proposed project would be a reasonable investment in 
intercity passenger rail transportation separate from consideration of 
the proposed project's benefits to commuter railroad passenger 
transportation. FRA anticipates a substantial number of Shared Benefit 
projects will be included in the NEC Project Inventory since a majority 
of the NEC territory has shared operation, and thus resulting benefits, 
between intercity and commuter services.
    For Shared Benefit Projects, FRA will only make such selections 
when Amtrak and the public authorities providing commuter rail 
transportation at the eligible project location:
    (1) Are in compliance with 49 U.S.C. 24905(c)(2);
    (2) Have identified funding for the intercity passenger rail share, 
the commuter rail share, and the local share of the eligible project 
before the commencement of the project in applications responsive to 
the NOFO. Development of the appropriate funding shares is the 
responsibility of the Project Sponsor in coordination with its project 
partners;
    (3) Have demonstrated a fair allocation of financial responsibility 
between intercity and commuter rail transportation. For this purpose, 
Project Sponsors will be asked to provide in their applications a 
breakdown of the Total Project Cost and costs previously incurred 
(including for previous Lifecycle Stages) identified by funding source 
and provider. FRA will consider such costs in determining whether there 
has been a fair allocation of financial responsibility between 
intercity and commuter rail transportation.
Non-Federal Match
    The Partnership Program requires, at 49 U.S.C. 24911(f)(2), that 
the Federal share of Total Project Costs for a project shall not exceed 
80 percent.\7\ The NOFO will state FRA's willingness to fund projects 
up to the 80 percent maximum Federal share of the Total Project Costs. 
Project Sponsors and their project partners will be responsible for a 
minimum 20 percent non-Federal share for Partnership Program grants. 
Consistent with Section IIIA of this Notice, FRA will expect Project 
Sponsors to propose a greater than 20 percent local match for certain 
Improvement and Station Projects and project components.
---------------------------------------------------------------------------

    \7\ In an apparent drafting error, 49 U.S.C. 24911(f)(2) states 
the Federal share ``shall not exceed 80 percent, except as specified 
under paragraph (4)'' of part (f), however no such paragraph (4) 
exists. FRA's interpretation of this language is that all 
Partnership Program projects are subject to the ``shall not exceed 
80 percent'' requirement specified in 49 U.S.C. 24911(f)(2).
---------------------------------------------------------------------------

    Total Project Costs shall be based on the best available 
information, including engineering studies, studies of economic 
feasibility, environmental analyses, and information on the expected 
use of equipment or facilities. FRA believes the NEC Commission 
Planning Documents are among the best available information and will 
use those documents and other sources of project information as 
appropriate when validating Total Project Costs estimates.

C. Letters of Intent and Phased Funding Agreements

    A Letter of Intent (LOI), authorized at 49 U.S.C. 24911(g)(1), is a 
letter from FRA to a grantee announcing ``an intention to obligate'' an 
amount to its project from future budget authority. LOIs are contingent 
commitments and not binding obligations of the Federal government. LOIs 
demonstrate FRA's intent to provide future Final Design and 
Construction Lifecycle Stage funding for Major Capital Projects 
assuming successful completion of Project Planning and Project 
Development Lifecycles for the project. FRA anticipates issuing LOIs 
primarily to projects currently in, or beginning, the Project 
Development Lifecycle Stage. In issuing the LOI, FRA may outline 
conditions and/or define readiness thresholds which the grantee may use 
to inform future funding requests for Partnership Program funds.
    A Phased Funding Agreement (PFA), authorized at 49 U.S.C. 
24911(g)(2), is an agreement associated with the obligation of an 
initial grant award under the Partnership Program. FRA may enter into a 
PFA with a Project Sponsor if:
    (1) the project is highly rated, based on the evaluations and 
ratings described in the Partnership Program NOFO and as conducted by 
FRA, and
    (2) the Federal assistance to be provided for the project under the 
Partnership Program is more than $80 million.
    FRA may consider additional factors in determining whether a PFA is 
the appropriate funding approach for a project. A PFA shall:
    (1) establish the terms of participation by the Federal Government 
in the project;
    (2) establish the maximum amount of Federal financial assistance 
for the project;
    (3) include the period of time for completing the project, even if 
such period extends beyond the period for which Federal financial 
assistance is authorized;

[[Page 37911]]

    (4) make timely and efficient management of the project easier in 
accordance with Federal law; and
    (5) if applicable, specify when the process for complying with the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
related environmental laws will be completed for the project.
    FRA will evaluate projects that meet the aforementioned 
requirements and consider if a PFA is an appropriate funding approach 
for a project. FRA anticipates limiting the use of PFAs to projects 
that are currently in, or beginning, the Final Design and/or the 
Construction Lifecycle Stages. FRA expects to issue PFAs for Major 
Backlog projects ready for Final Design and/or the Construction 
Lifecycle Stages to reflect the higher priority placed on these 
projects by FRA (see Section IIIA), thus providing project sponsors a 
higher degree of certainty that Federal funds will be available to 
complete the project. PFAs are contingent commitments and are not 
financial obligations of the Federal government. However, unlike LOIs, 
PFAs are agreements relating to the obligation of future funds and FRA 
commits to provide funding as specified in the PFA for the duration of 
the project, as long as the grantee continues to meet the terms of the 
PFA and Congress appropriates sufficient Partnership Program funding 
for such purpose. For a project with a PFA, FRA may provide grant 
funding in phases consistent with the terms of the PFA and within the 
established maximum amount of Federal financial assistance for the 
project.
    The NEC Project Inventory will not identify projects for LOIs or 
PFAs, as those determinations will be made based on applications during 
project selection. In response to the NOFO, applicants may identify and 
describe project phases or elements that could be candidates for 
subsequent Partnership Program funding and may request LOIs or PFAs for 
their projects, as appropriate. See 49 U.S.C. 24911(g) for detailed 
information on LOIs and PFAs.

V. Comments

    The purpose of this Notice is to provide transparency about FRA's 
proposed approach to developing the NEC Project Inventory, consult with 
the NEC Commission and the owners of the NEC infrastructure and 
facilities as required under 49 U.S.C. 24911(e)(6). FRA's proposed 
approach to the NEC Project Inventory and Partnership Program 
Implementation may change following consultation.
    FRA encourages interested parties to submit a comment pertinent to 
the information in this Notice in docket number FRA-2022-0049, 
available at https://www.regulations.gov. Searches may be conducted by 
using the docket number and comments may be submitted by following the 
instructions provided. All comments will be due 30 days after the 
publication date of this Notice. All submissions must include docket 
number for this Notice. In order to facilitate comment tracking and 
response, we encourage commenters to provide their name.
    While interested parties are not required to provide comments in 
the following areas, FRA is seeking targeted comment on the following 
specific areas:
    (1) Information, if any, that may be missing or inaccurate if FRA 
relies primarily on the NEC Commission Planning Documents for project 
names, descriptions, sponsors, Lifecycle Stage, Project Type, start 
year, cost estimates, and other information, in addition to an 
explanation as to why the information was not included in NEC 
Commission Planning Documents.
    (2) Other sources of information, if any, FRA should review for 
project information in preparing the NEC Project Inventory
    (3) The proposal described in Section IIIA to allocate funds for 
Defined Capital Renewal Projects still in development at the time of 
publication of the NEC Project Inventory, but that may become ready for 
funding after publication of the NEC Project Inventory.
    (4) The order, method, and plan for apportioning funds described in 
Section IIIA of this Notice.
    (5) FRA's proposed use of Letters of Intent and Phased Funding 
Agreements permitted under 49 U.S.C. 24911(g) as described in Section 
IVC.
    (6) Issues or concerns with the information FRA has provided in 
this Notice.
    Notwithstanding the various forms of consultation, FRA advises that 
all comments should be submitted in writing to this notice to ensure 
proper consideration.
    All comments received, including any personal information, will be 
posted without change to the docket and will be accessible to the 
public at https://www.regulations.gov. Do not include information in 
comments in the docket that should not be made public. Input submitted 
online via https://www.regulations.gov is not immediately posted to the 
site. It may take several business days before submissions are posted. 
Comments containing proprietary or confidential information may be 
submitted by contacting the agency for alternate submission 
instructions.

VI. Next Steps

    FRA will review comments upon the closing of the comment period for 
consideration in developing the NEC Project Inventory. FRA will publish 
the NEC Project Inventory in the Federal Register no later than 
November 15, 2022, which may include a high-level summary and responses 
to comments received. Following the publication of the NEC Project 
Inventory, FRA will publish a NOFO soliciting applications for NEC 
Projects listed on the NEC Project Inventory. FRA will then evaluate 
applications consistent with the NOFO. FRA will publish an NEC Project 
Inventory at least every two years following the initial publication.

    Issued in Washington, DC.
Paul Nissenbaum,
Associate Administrator, Office of Railroad Policy and Development.
[FR Doc. 2022-13495 Filed 6-23-22; 8:45 am]
BILLING CODE 4910-06-P


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