FY2007 New Starts Annual Report & Introduction To Discussions New Starts/Small Starts Listening Session and Seminar San Francisco, CA February 15-16, 2006

2 Outline Overview of New Starts Process, Evaluation and Framework FY 2007 Evaluation Process New Provisions (related to New Starts) in SAFETEA-LU Summary of Project Ratings FY 2007 Budget Recommendations –Overall Recommended Funding –Pending FFGAs –Proposed FFGAs –Other Projects –Small Starts

3 Alternatives Analysis Final Design Commitment of Non-Federal Funding, Construction Plans, ROW Acquisition, Before-After Data Collection Plan, FTA Evaluation for FFGA, Begin Negotiations Project Management Oversight Construction Preliminary Engineering Complete NEPA Process Refinement of Financial Plan Select LPA, MPO Action,Develop Criteria, PMP FTA Decision On Entry into PE FTA Decision On Entry into Final Design Full Funding Grant Agreement Preliminary Engineering Final Design Construction Decision Point Major Development Stage Systems Planning Planning New Starts Planning and Project Development Process

4 New Starts Projects in Final Design and Preliminary Engineering, FY 2007 Annual Report

5 Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share Capital Finances Operating Finances Other Factors Low Income Households User Benefits Mobility Improvements Environmental Benefits Operating Efficiencies Cost Effectiveness Land Use The FTA New Starts Evaluation and Rating Framework Minimum Project Development Requirements: Employment Capital Cost O&M Cost User Benefits Metropolitan Planning and Programming Requirements Project Management Technical Capability Other Considerations NEPA Approvals

6 FY 2007 Evaluation Approach No changes in measures used – consistent with FY 2006 approach –Transparent evaluation/rating process –Continuing focus on project outcomes –Project risk assessments to support evaluation information Cost effectiveness breakpoints adjusted for inflation – per Spring 2005 cost effectiveness framework announcement Eliminates Not Rated designation for projects with unreliable or incorrect data submissions. These projects now receive a Low rating. Implements some features of SAFETEA-LU

7 New Provisions in SAFETEA-LU Changes rating scale from three-level to five-level –Pre-SAFETEA-LU: Highly Recommended, Recommended, Not Recommended –SAFETEA-LU: High, Medium-High, Medium, Medium-Low, Low Limits Secretary’s ability to require a non-Federal financial commitment for a project that is more than 20 percent of the net capital project cost. Includes new “Small Starts” program Includes funding for Ferries and Denali Commission Legislative requirements for Small Starts rulemaking plus biennial publication of New Starts Policy Guidance for notice and comment

8 Summary of Overall Project Ratings Projects in Final Design and Preliminary Engineering FY 2006 Report 29 Projects FY 2007 Report 20 Projects 2 Highly Recommended 1 High 13 Recommended 17 Medium 10 Not Recommended 4 Not Rated 2 Low Removed from FD / PE 0 Not Rated Removed from FD / PE

9 Projects No Longer in New Starts Report Twelve proposed New Starts projects (in Preliminary Engineering or Final Design) included in the FY 2006 report are not in the FY 2007 report –Discontinued development and/or no longer seeking New Starts funds -El Paso, TX - Starter Line -Las Vegas, NV - Resort Corridor Downtown Monorail -Los Angeles, CA – Exposition Corridor -Orange County, CA - CenterLine LRT -South Wasilla - AK Track Realignment -Tampa Bay, FL - Regional Rail System –Suspended Preliminary Engineering until local project issues can be addressed -Boston, MA - Silver Line Phase III -Ft. Collins, CO - Mason Transportation Corridor -New Orleans, LA - Desire Streetcar -San Jose, CA - Silicon Valley Rapid Transit Corridor –Completed without New Starts FFGA -Kansas City, MO - Southtown BRT –Revised Project Development -San Diego, CA - Mid-Coast LRT Phase 1 to be combined with Phase two as a single project.

10 Summary of FY 2007 New Starts and Small Starts Budget Recommendations 16 existing FFGAs$571.9 M 2 Pending FFGAs$355.0 M 5 Proposed FFGAs$302.6 M 5 Other Projects$101.8 M Small Starts $100.0 M FTA Oversight/Denali Commission$ 34.7 M & Ferry Projects (AK/HI) TOTAL FY07 New / Small Starts$1,466 M

11 Pending FFGAs Funding recommendations are the proposed levels in the FFGAs as currently drafted. Both projects recommended for FFGAs previously, in President’s FY 2006 budget. LocationProjectTotal New Starts Share Total Project Cost FY 2007 Budget New York, NYLong Island Rail Road East Side Access $2,632.1 M (34 %) $7,779.3 M$300 M Pittsburgh, PANorth Shore LRT Connector$217.7 M (55 %) $393.0 M$55 M

12 Proposed FFGAs FTA recommends $302.6 million for five proposed FFGAs. Each project: –Is projected to be ready for an FFGA by the end of FY 2007 –Is rated Medium or higher –Has a Medium or higher rating for cost-effectiveness, or is exempt by statute and/or Administration decision LocationProjectTotal New Starts Share Total Project Cost FY 2007 Budget Denver, COWest Corridor LRT$290.6 M (49%) $593.0 M$35.0 M Portland, ORSouth Corridor I-205/Portland Mall LRT $334.4 M (60%) $557.4 M$80.0 M Washington Co, OR Wilsonville to Beaverton Commuter Rail $58.7 M (50%) $117.3 M$27.6 M Dallas, TXNorthwest/Southeast LRT MO$700.0 M (50%) $1,406.2 M$80.0 M Salt Lake City, UT Weber County to Salt Lake City Commuter Rail $489.3 M (80%) $611.7 M$80.0 M

13 Other Projects FTA recommends $101.8 million for five other projects. Allows funding for Largo FFGA Amendment required by SAFETEA-LU Four other projects are expected to be in Final Design by Spring 2006 Each project: –Rated Medium or higher –Has a Medium or better cost effectiveness rating, or is exempt –Is expected to be in FD by Spring 2006 if issues addressed LocationProjectRating Total New Starts Share Total Project Cost New York, NYSecond Avenue Subway MOSMedium$1,300.0 M (26%) $4,947.8 M Northern Virginia, VA Dulles Corridor Metrorail Project- Extension to Wiehle Ave. Medium$920.0 M (50%) $1,840.1 M Norfolk, VANorfolk LRTMedium$99.8 M (49%) $203.7 M Seattle, WAUniversity Link LRT ExtensionHigh$700.0 M (41%) $1,720.0 M Largo, MDAdditional 52 Rail Cars Required by SAFETEA-LU Not Applicable To Be Determined

14 Small Starts SAFETEA-LU authorizes $200 million for the Small Starts program President’s Budget proposes $100 million to begin the program SAFETEA-LU requires a rulemaking to define Small Starts criteria and evaluation process –Advanced Notice of Proposed Rulemaking published January 30, 2006 –Will begin to implement program with guidance in the proposed rule and law Encourages lower cost and flexible projects to address local transportation issues Existing projects in pipeline may be eligible

15 Purpose of Listening Session Present SAFETEA-LU provisions, issues and potential approaches in Small Starts ANPRM and major starts policy paper Answer questions relating to the ANPRM and policy paper Solicit suggestions on how to address SAFETEA-LU provisions

16 Program Goal Fund meritorious projects Develop reliable information on project benefits and costs Ensure projects treated equitably nationally Facilitate communication between FTA, transit industry and Congress

17 Guiding Principles for Development of Small Starts and Large Starts Rule Evaluation process should accurately reflect the merits of projects Requirements should ensure level playing field for all projects Requirements should be mode-neutral Costs, benefits and impacts should be developed using established methodologies

18 Schedule for Rulemaking Jan 2006: Publication of the Small Starts ANPRM and Large Starts policy paper March 10: Deadline for comments September 2006: Issuance of NPRM for small and major starts June 2007: Issuance of the final rule