New Starts/Small Starts and BRT: An Update

1. New Starts/Small Starts and BRT:An Update APTA Bus Conference Seattle, WA May 5, 2009

2. Topics • Overview of the New Starts/Small Starts Program • Small Starts Project Planning & Development • Small Starts Evaluation and Funding • BRT in Small Starts (and New Starts)

3. New Starts/Small Starts Funding: Supply and Demand • Demand: • 14 New Starts projects in PE and Final Design • 21 Small Starts projects in PD • Total cost of pipeline: ~$25 billion, $10 billion in New Starts funding • FTA tracking >100 planning studies considering major transit capital investments • Annual funding • New Starts: $1.6+ billion • Small Starts: $200 million

4. Eligibility: Small Starts • Cost criteria • Total cost <$250 million • Small Starts share < $75 million • Scope criteria • Project has a fixed guideway for 50 percent or more of its length during peak periods, or • Non-fixed guideway project in a corridor including at least three of the following: • Significant transit stations • Traffic signal priority or pre-emption • Low floor buses or level boarding • Premium service branding • No longer require all four project elements “Exempt” projects exist only until a new rule is published

5. Eligibility: Very Small Starts • Small Starts criteria for cost and scope • Plus additional eligibility criteria: • Total cost under $50 million • Cost per mile < $3 million per mile, excluding rolling stock • (Existing weekday riders over 3,000)

6. Small Starts/Very Small StartsEligible Applicants • Any public body is eligible to apply for Small Starts funds • If the applicant is not the operator: • The small starts application must demonstrate how the project will be operated and maintained • Project sponsor must provide an executed operating agreement before a PCGA can be finalized

7. Small Starts/Very Small StartsProject Development • Alternatives Analysis • Simplified • Project Justification based on Warrants for Very Small Starts • Project Development • Project Construction Grant Agreement

8. What is a Project Construction Grant Agreement (PCGA)? • Formal Agreement signed by FTA and Grantee following detailed review by DOT, OMB and Congress • Agreement on Project Scope, Budget, and Schedule • Terms and Conditions of Federal Participation • Multi-year Funding Commitment (subject to Congressional Appropriations) • Caps Federal Section 5309 Small Starts funds

9. Project Construction Grant Agreement • To receive a PCGA a project must: • Be Authorized in Law • Complete the Planning, Project Development, and NEPA Processes • Meet Project Readiness Requirements (technical capacity, firm and final cost estimate and funding) • Receive a “Medium” or higher overall rating • Receive a “Medium” or higher cost effectiveness rating • Meet all other Federal requirements • Execution of the PCGA will be subject to a 60 day congressional review

10. FTA Ratings: Small Starts Summary Rating Project Justification Rating Financial Rating Other Factors Cost Effectiveness Non-Section 5309 Share Capital Finances Land Use Operating Finances Capital Cost O&M Cost User Benefits Minimum Project Development Requirements: NEPA Approvals Metropolitan Planning and Programming Requirements Project Management Technical Capability Other Considerations

11. FTA Ratings: Small Starts • Existing New Starts framework • Simplifications • Fewer criteria • Simpler evaluation measures for land use criterion • Opening year forecasts only • Simpler travel forecasting procedures possible • Simpler financial documentation possible

12. FTA Ratings: Small Starts (continued) • Simpler financial documentation possible • Rating of “medium” for local financial commitment if: • Reasonable plan to secure local share (all non-New Starts funding committed for PCGA) • Project O&M under 5 percent of agency operating budget • Agency in solid financial condition • Projects that cannot meet these conditions submit a financial plan • According to FTA guidance • Covering period up to and including opening year • Evaluated based on criteria used for New Starts

13. FTA Ratings: Very Small Starts Summary Rating Project Justification Rating Financial Rating Other Factors Cost Effectiveness Non-Section 5309 Share Capital Finances Land Use Operating Finances Capital Cost Benefiting Riders Minimum Project Development Requirements: NEPA Approvals Metropolitan Planning and Programming Requirements Project Management Technical Capability Other Considerations

14. FTA Ratings: Very Small Starts • Existing New Starts framework • Simplifications • Fewer criteria • “Warrants” approach for project justification • Benefiting riders > 3,000/day • Capital cost (excl. vehicles) < $3M/mi. • Total capital cost < $50M • Simpler financial documentation possible (as with Small Starts) Demonstrate consistency with characteristics of “justified” projects

15. Summary Ratings Summary Rating • Rating categories: • High • Medium-high • Medium • Medium-low • Low • Decision Rule: • Must have at least “Medium” on both justification and finance to receive “Medium” overall Project Justification Rating (50%) Local Financial Commitment Rating (50%)

16. BRT’s in New Starts and Small Starts • One PCGA (Eugene) • One in NS Final Design (Hartford) • One in NS PE (Boston Silver Line) • 18 in Project Development • Austin • Federal Way/Seattle, WA • Flagstaff • Fort Collins • Grand Rapids • Kansas City Troost • King County/Belleview-Redmond • Livermore/Amador Valley • Los Angeles Gap Closure • Los Angeles Wilshire • Monterey, CA • New York Nostrand Avenue • Oakland, CA East Bay • Roaring Fork Valley, CO • San Bernardino Omnitrans • San Diego Mid City Rapid • San Francisco Van Ness • Stockton, CA Metro Express Airport Way Connector

17. Project Ratings and Decisionmaking • Ratings guide FTA approvals of PE/PD, Final Design, and FFGA/PCGAs • “Medium” or better overall rating required to advance • Once in PE/PD, rating reported each year in Annual Report on Funding Recommendations

18. Conclusion QUESTIONS?