Projects of National and Regional Significance Program

1. Projects of National and Regional SignificanceProgram

2. PNRS Background • SAFETEA-LU Section 1301 established a program to fund critical, national or regional freight or passenger transportation needs • Funded at $1.78 Billion over 5 years • Modeled after FTA “New Starts” Program • Projects are to be evaluated and rated as “highly recommended,” “recommended,” or “not recommended” based on selection criteria established in regulation • Required Annual Report to Congress – part of the legislation • All funds authorized by SAFETEA-LU for the PNRS program were fully designated to 25 projects

3. PNRS Rule Making • SAFETEA-LU required establishment of regulations for program implementation • Regulations do not apply to current SAFETEA-LU funding for 25 designated projects • FHWA looked for specific and detailed comments that would assist in defining grant criteria, project eligibility, project ratings, and the nature and form of full funding grant agreements.

4. PNRS Rule Making Read the preamble not just regulatory text. It is key to understanding and interpreting the regulations.

5. Key Points from NPRM Comments • Strong Support for: • Concept/Program • Transparency of Process and Selection • Bringing National Perspective to the Project Selection Process • Specific Concerns: • Degree of Multimodal focus • Use of Highway Trust Fund

6. PNRS Eligibility Applicant • States or multiple states • Support for strong local and regional coordination Project Cost Eligibility Threshold • Legislative requirement $500m/75% of apportionment – whichever is less • Allow multi-state projects and use largest state’s eligibility

7. PNRS Eligibility Eligible Project • Any transportation project (including multimodal/rail) that is Title 23 eligible (allowing maximum flexibility) • Project could be individual project or a group of projects that are integrated in function such as along a corridor (strong interest in seeing projects linked together along a corridor) Eligible Project Costs • NEPA/PE to construction • Bond financing

8. PNRS Evaluation, Rating & Funding Rating Process/Timing • Preliminary evaluation and rating any time after development of project concept plan – listed in PNRS report appendix • Official rating after PE complete – listed in PNRS report • If a project is not selected, projects must re-apply at the next solicitation (will be rated at that time) • Inform State of rating prior to listing in report to allow withdrawal To accommodate cost of PE

9. PNRS Evaluation, Rating & Funding Project Rating • Categories • Highly Recommended • Recommended • Not Recommended • Withdrawn • Will not rank (as opposed to rate) • Project selection authority with Secretary of USDOT Full Funding Grant Agreements • Only vehicle for this program • FHWA will coordinate with other FHWA/DOT funding sources and programs if project requires (TIFIA, SEP 15, Executive Order on Streamlining)

10. PNRS Selection Criteria General • Regulations • Expands the detail and specifics of the basic criteria presented in law • Specific criteria provide a firm framework and basis for which measurement will be made • Data and Methodology • FHWA chose not to dictate a specific methodology for making the measurement or specific weight for each of the criterion. • Requires use of data that can be made available to the public • Requires use of methodologies accepted by industry

11. PNRS Selection Criteria • Annual Solicitations • Program is designed for multiple solicitations (timing currently not known) • Solicitations would provide: • specific focus areas related to the current needs of the national transportation system • measures to rate enhancements to the system • points and weighting, as needed, for these identified criteria to best reflect the current dynamics of the nation’s transportation system • specific information on procedures

12. PNRS Selection Criteria Economic Benefits • Solving Current Transportation Problem v. Economic Development • Cost Benefit Analysis • Formal CBA v. other analytical measures • Consider Use of FHWA Freight CBA Tools • Level of Detail/Definitions • Ability to Compare Across Projects • The amount and importance of freight and passenger travel served • Volumes Served • Capacity • Type and Level • Impacts

13. PNRS Selection Criteria Congestion • Reduce congestion, including impacts in the State, Region, and Nation • Congestion levels, delay and consequences of delay • Efficiency and effectiveness of congestion mitigation Safety • Improve transportation safety, including reducing transportation injuries, accidents and fatalities • Number, rate and consequences of crashes, injuries and fatalities in the affected region and corridor National Transportation System Enhancements • Left flexible for States and allows DOT to address in solicitation

14. PNRS Selection Criteria Project Development • Based on the results of preliminary engineering • Political and institutional support - as evidenced by completing the project planning process Technology • Uses new technologies, including intelligent transportation systems, that enhance the efficiency of the project Environment • Helps maintain or protect the environment

15. PNRS Selection Criteria Funding • Supported by stable, reliable and available non-federal commitments • Leverages Federal investment (including public-private partnerships) • Ability to Guarantee non-Federal sources prior to implementation • Ability to attract funds beyond minimum • Allocation of public and private costs and the costs proportion to the share of public and private benefits and risks Need for Federal Support • Demonstrates that the proposed project cannot be readily and efficiently realized without Federal support and participation (gap funding)

16. Questions?