11 TRANSIT UPDATE FROM WASHINGTON, DC

2 Today’s Discussion Livability/SustainabilityLivability/Sustainability New Starts StreamliningNew Starts Streamlining Transit Safety InitiativeTransit Safety Initiative State of Good RepairState of Good Repair

3 Livability has been a core objective in many FTA programs –New FY 2010 Budget: supports community livability and environmental sustainability Increases funding for core urban programs –Use capital programs to SUSTAIN ridership and ATTRACT new riders with initiatives like TOD LIVABILITY AND SUSTAINABILITY

4 “ This represents a significant effort to promote livable communities, improve the quality of life for more Americans and create transportation choices that serve the needs of individual communities.” -Secretary LaHood In December 2009, DOT announced $280 million for urban circulator projects such as streetcars, buses, and bus facilities to support communities, expand business opportunities and improve people’s quality of life while also creating jobs. Applications due Feb 8, Urban Circulator - $130 million Bus Livability Initiative - $150 million First batch of funding by the Obama Administration for its Livability Initiative.

5 LIVABILITY AND SUSTAINABILITY FTA continues to work with local partners to advance livability concepts with existing programs: Bike and Pedestrian Policy Federal Register Notice November 13, 2009 Technical assistance for TOD development (ex. developing CTOD guidebook on mixed-income housing)

6 LIVABILITY AND SUSTAINABILITY New Starts Streamlining FTA is approaching New and Small Starts Streamlining in two ways: Policy Guidance Changes –Last week, DOT announced a policy shift in the New Starts project selection process. –Immediately rescinded budget restrictions issued by the previous administration that focused primarily on “cost effectiveness”. Regulatory and/or Legislative Changes –Under the proposal, FTA will soon initiate a separate rulemaking process –Invite public comment

77 Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share (20%) Capital Finances (50%) Operating Finances (30%) Other Factors Mobility Improvements (20%) Environmental Benefits (10%) Operating Efficiencies (10%) Cost Effectiveness (20%) Land Use (20%) Economic Development (20%) BEFORE Statutory Evaluation Framework Ignored by Bush Administration since March 2005 X X X X X X _ 100 %

88 Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share (20%) Capital Finances (50%) Operating Finances (30%) Other Factors Mobility Improvements (20%) Environmental Benefits (10%) Operating Efficiencies (10%) Cost Effectiveness (20%) Land Use (20%) Economic Development (20%) AFTER Statutory Evaluation Framework Respected After January 13 Obama Administration Announcement Future: FTA will also initiate a rule-making to strengthen the definition of cost-effectiveness, taking into account a broader range of benefits

99 TRANSIT SAFETY Recent Nationwide Concern over Rail Transit Safety Not just a Washington, D.C. Metro rail problem Boston, May 2008 Passenger Safety – In rail transit systems in Boston, San Francisco and D.C. experienced train-to-train collisions killing 9, injuring 130 and resulting in millions of dollars in property losses. Transit Worker Safety - During the same period, 3 transit maintenance workers were struck and killed by trains while working on the tracks.

10 Under the guidance of the Deputy Secretary and after months of consultation with transit agencies and interested parties, in December 2009 the Administration introduced legislation reforming DOT safety oversight of America's rail transit systems, with an option to regulate bus systems as well. TRANSIT SAFETY

11 TRANSIT SAFETY Key reasons to support safety proposal: I. LACK OF COMMON MINIMUM SAFETY STANDARDS Problem with Status Quo: FTA is prohibited from establishing minimum safety regulations for rail transit. Proposed Solution: The bill will allow FTA to establish minimum safety rules

12 Transit Safety II. INADEQUATE STAFFING AND TRAINING Problem with Status Quo: State Safety Agencies are understaffed. Proposed Solution: The bill proposes to finance State Safety Oversight staffing and training with Federal funds.

13 TRANSIT SAFETY III. INADEQUATE AUTHORITY/INADEQUATE COMPLIANCE Problem with Status Quo: Many State Safety Agencies do not have authority over the transit agencies they oversee. Proposed Solution: The bill will require State Safety Agencies to demonstrate they have legal authority to oversee and enforce safety regulations.

14 TRANSIT SAFETY IV. INADEQUATE INDEPENDANCE Problem with Status Quo: Many State Safety Agencies receive their annual operating budget from the transit agencies they oversee. Proposed Solution: Federal funding of operating cost for State Safety Agencies eliminates any potential financial conflict.

15 STATE OF GOOD REPAIR State of Good Repair (SGR) is a priority goal for USDOT – not just transit, but highways and airports too. FTA has been heavily focused on SGR: In 2007, a group of Senators, including then Senator Barack Obama, asked FTA to conduct a study to determine the infrastructure needs of our country's largest rail transit systems. In April 2009, FTA released the Rail Modernization Study. –Assesses the level of capital investment required to attain and maintain a state of good repair for seven largest rail transit operators.

16 STATE OF GOOD REPAIR Roughly $50B (2008 dollars) SGR backlog for 7 Rail Modernization Study agencies. –CTA, MBTA, MTA-MNR, MTA-LIRR, NYCT, NJ Transit, BART, SEPTA, WMATA –Additional $5.9B needed annually to maintain SGR after backlog addressed. More than 1/3 of Study agencies’ assets are in marginal or poor condition. In 2008, 8.4% of buses nationally were more than 12 years old. More than 6,000 of the almost 72,000 total buses in need of replacement. Among all systems with both rail and bus services, emerging estimates point to a $80B SGR backlog.

17 Expanding Rail Study to include 18 additional transit agencies:  Los Angeles County Metro  Dallas Area RTA  San Diego Trolley  Metro Atlanta RTA  Tri County Metro District (Portland)  Regional Transportation District (Denver)  Utah Transit Authority (Salt Lake City)  Metro Trans Auth Harris County (Houston)  King County DOT (Seattle-Everett)  Bi-State Development (St. Louis)  Southern Calif. RR Auth (LA-Long Beach)  Sacramento RTD  Greater Cleveland RTA  Miami Dade Transit Agency  Port Authority of Allegheny County (Pittsburgh)  Port Authority Trans Hudson Corporation (New York, Northeastern NJ)  MTA Bus Company (New York, Northeastern NJ)  Metro Transit (Minneapolis-St. Paul)

18 STATE OF GOOD REPAIR Recent FTA Efforts –Ongoing sessions with SGR Industry Working Group –State of Good Repair Roundtable in D.C.– July 2009 –FTA State of Good Repair Website Ongoing & Planned FTA Efforts –TCRP Synthesis of Current Asset Management Practices –Developing NTI course on Transit Asset Management –Hosting additional SGR Roundtables –Continued collaboration with Industry Working Group –Examining Core Capacity and analyzing trade offs between investment in SGR and savings in operations/other capital costs –Study of Transit Asset Inspection Practices