1. Improvements to Project Development and Program Management of New Starts Projects FY 2008 Proposed Effective April 30, 2006

2. SAFETEA-LU Says…… Section 3011(d)(6) requires that FTA publish, for comment and response, Policy Guidance Section 3011(d)(6) requires that FTA publish, for comment and response, Policy Guidance 180 days after enactment of SAFETEA-LU 180 days after enactment of SAFETEA-LU Each time significant changes are made to the process/criteria Each time significant changes are made to the process/criteria At least every two years At least every two years FTA’s Response…….. FTA’s Response…….. January 11, 2005 Guidance January 11, 2005 Guidance 1. Improvements to Project Development and Program Management of New Starts Projects 2. Issues Regarding the Future New Starts Regulation

3. Changes Implemented for FY 07 Evaluation Cycle Cost Effectiveness breakpoints adjusted for inflation Cost Effectiveness breakpoints adjusted for inflation Use of 2030 forecast year for estimating benefits and operating costs Use of 2030 forecast year for estimating benefits and operating costs Replacement of Highly Recommended, Recommended, and Not Recommended with High, Medium, and Low Replacement of Highly Recommended, Recommended, and Not Recommended with High, Medium, and Low Elimination of “60 percent” decision rule Elimination of “60 percent” decision rule

4. Changes Proposed beginning April 30, 2006 To be disseminated in FY 08 New Starts Reporting Instructions To be disseminated in FY 08 New Starts Reporting Instructions For FY 08 Budget; PE/FD Evaluations; and NEPA milestones For FY 08 Budget; PE/FD Evaluations; and NEPA milestones All FY 07 Changes plus…… All FY 07 Changes plus…… NEPA/New Starts Interfaces NEPA/New Starts Interfaces Before and After Study Documentation Before and After Study Documentation Expanded Certification of Methods and Assumptions Expanded Certification of Methods and Assumptions Costs and Ridership Forecasts Costs and Ridership Forecasts Project Development Agreements Project Development Agreements FFGA New Starts Level Set at Final Design Approval FFGA New Starts Level Set at Final Design Approval Consideration of Rules for Use of Mode-Specific Constants Consideration of Rules for Use of Mode-Specific Constants

5. NEPA Interfaces NEPA Scoping NEPA Scoping New Starts Information in NEPA Documents New Starts Information in NEPA Documents Acceptable New Starts Rating for Issuance of NEPA Final Doc/Decision Acceptable New Starts Rating for Issuance of NEPA Final Doc/Decision

6. NEPA Scoping “Require a project to have progressed beyond the NEPA scoping phase before entering preliminary engineering” “Require a project to have progressed beyond the NEPA scoping phase before entering preliminary engineering” Rationale Rationale Confirmation of the LPA / “PE project” Confirmation of the LPA / “PE project” Strengthens linkage between NEPA and New Starts Strengthens linkage between NEPA and New Starts

7. NEPA Scoping Proposed Implementation Proposed Implementation “Option 1” “Option 1” AA -> LPA -> NOI -> NEPA Scoping -> LPA Confirmation -> PE Approval -> DEIS -> FEIS AA -> LPA -> NOI -> NEPA Scoping -> LPA Confirmation -> PE Approval -> DEIS -> FEIS “Option 2” “Option 2” NOI -> NEPA Scoping -> AA/DEIS -> LPA -> PE Approval -> FEIS NOI -> NEPA Scoping -> AA/DEIS -> LPA -> PE Approval -> FEIS “Option 1 ½” “Option 1 ½” AA -> NOI -> NEPA Scoping -> LPA -> PE Approval -> DEIS - > FEIS AA -> NOI -> NEPA Scoping -> LPA -> PE Approval -> DEIS - > FEIS

8. New Starts Information in NEPA Documents “Require the Final EIS to present the New Starts evaluation of the preferred alternative, in addition to NEPA evaluation of the alternatives” “Require the Final EIS to present the New Starts evaluation of the preferred alternative, in addition to NEPA evaluation of the alternatives” Rationale Rationale Supports CEQ regulations 40 CFR 1502.23 Supports CEQ regulations 40 CFR 1502.23 Provides public and stakeholders with information on the likelihood of receiving New Starts funding Provides public and stakeholders with information on the likelihood of receiving New Starts funding Enhances information available for decisionmaking Enhances information available for decisionmaking Proposed Implementation Proposed Implementation Formalize current practice Formalize current practice

9. Acceptable New Starts Rating for Issuance of NEPA Final Doc/Decision “Require a New Starts project to achieve an acceptable New Starts rating before the FEIS, ROD, or FONSI is signed” “Require a New Starts project to achieve an acceptable New Starts rating before the FEIS, ROD, or FONSI is signed” Rationale Rationale Low rating = no New Starts funding recommendation = no Federal action Low rating = no New Starts funding recommendation = no Federal action Scope changes should be addressed within the NEPA process Scope changes should be addressed within the NEPA process Final NEPA document must present a project that FTA can fund. Final NEPA document must present a project that FTA can fund. FTA cannot issue a final NEPA document knowing that its supplementation or reevaluation of scope change is mandatory FTA cannot issue a final NEPA document knowing that its supplementation or reevaluation of scope change is mandatory Proposed Implementation Proposed Implementation Formalize current practice Formalize current practice Exceptions in some cases for poor but correctible financial rating Exceptions in some cases for poor but correctible financial rating

10. Before and After Study Documentation “Require project sponsors to provide documentation of the information produced during alternatives analysis that will be needed for the required B and A study, when they apply to begin PE, as well as updated information and analyses at the time of the request to enter into final design and before executing an FFGA” “Require project sponsors to provide documentation of the information produced during alternatives analysis that will be needed for the required B and A study, when they apply to begin PE, as well as updated information and analyses at the time of the request to enter into final design and before executing an FFGA” Rationale Rationale Ensures the availability of data for subsequent B and A study Ensures the availability of data for subsequent B and A study Consistent with FTA objectives for review of AA technical information Consistent with FTA objectives for review of AA technical information “Real time” rather than retrospective analysis “Real time” rather than retrospective analysis Consistent with Congressional intent Consistent with Congressional intent

11. Before and After Study Documentation Proposed Implementation Proposed Implementation Information and analyses supporting 5 key project characteristics submitted to FTA at each milestone Information and analyses supporting 5 key project characteristics submitted to FTA at each milestone Project scope Project scope Transit service levels Transit service levels Capital costs Capital costs O/M costs O/M costs Ridership patterns and revenues Ridership patterns and revenues

12. Certification of Methods and Assumptions “Require that the individuals identified on Template 1 as the person responsible for developing these tools and techniques, in addition to the CEO, certify that they have been properly developed and applied according to professional standards and conventions and FTA guidelines” “Require that the individuals identified on Template 1 as the person responsible for developing these tools and techniques, in addition to the CEO, certify that they have been properly developed and applied according to professional standards and conventions and FTA guidelines” Rationale Rationale Improve the reliability of technical information used to support decisionmaking and justification for New Starts projects Improve the reliability of technical information used to support decisionmaking and justification for New Starts projects Better ensure “level playing field” for FTA’s evaluation of candidate projects Better ensure “level playing field” for FTA’s evaluation of candidate projects Consistent with Congressional intent Consistent with Congressional intent Proposed Implementation Proposed Implementation Revised and expanded certification submitted to FTA prior to PE/FD request, FY 08 evaluation materials Revised and expanded certification submitted to FTA prior to PE/FD request, FY 08 evaluation materials

13. Costs and Ridership Forecasts “Require forecasts of costs and benefits to include an analysis of uncertainties” “Require forecasts of costs and benefits to include an analysis of uncertainties” Rationale Rationale Responds to SAFETEA-LU emphasis on reliability of estimates of costs and benefits Responds to SAFETEA-LU emphasis on reliability of estimates of costs and benefits Supports requirement for Contractor Performance Assessment reporting Supports requirement for Contractor Performance Assessment reporting Acknowledges elements of uncertainties for strengthening decisionmaking and focusing project development activities Acknowledges elements of uncertainties for strengthening decisionmaking and focusing project development activities Proposed Implementation Proposed Implementation Submitted analysis of uncertainties at time of PE/FD request Submitted analysis of uncertainties at time of PE/FD request

14. Project Development Agreements “At FTA’s discretion, selectively require project development agreements (at time of PE and/or FD approval)” “At FTA’s discretion, selectively require project development agreements (at time of PE and/or FD approval)” Rationale Rationale Provides mutually agreed upon yardstick for measuring progress in project development Provides mutually agreed upon yardstick for measuring progress in project development Focuses project sponsors effort/FTA oversight upon principal issues Focuses project sponsors effort/FTA oversight upon principal issues Provides basis for FTA rescission of PE/FD approval Provides basis for FTA rescission of PE/FD approval

15. Project Development Agreements Proposed Implementation Negotiation of PDA at time of PE (or FD) request Negotiation of PDA at time of PE (or FD) request Will typically address: Will typically address: Principal issues to be resolved in project development Principal issues to be resolved in project development Steps and schedule for NEPA compliance and completion Steps and schedule for NEPA compliance and completion Steps and schedule to complete PE or FD including the development of firm project scope and reliable cost estimates Steps and schedule to complete PE or FD including the development of firm project scope and reliable cost estimates Steps and schedule to ensure funding commitments Steps and schedule to ensure funding commitments FTA commitments to technical assistance FTA commitments to technical assistance

16. New Starts Funding Level Set at Final Design Approval “Place a cap on the FFGA New Starts funding amount at the point of approval to enter final design” “Place a cap on the FFGA New Starts funding amount at the point of approval to enter final design” Rationale Rationale Consistent with Congressional intent Consistent with Congressional intent Clarifies FTA participation in project costs Clarifies FTA participation in project costs Supports decisionmaking Supports decisionmaking Proposed Implementation Proposed Implementation Formalize current practice Formalize current practice

17. Possible Rules for Mode-Specific Constants “Require all project sponsors to use pre-established mode-specific constants for each of the included attributes (reliability, span of service, and passenger amenities) that appear to be prominent in a specific fixed-guideway proposal” “Require all project sponsors to use pre-established mode-specific constants for each of the included attributes (reliability, span of service, and passenger amenities) that appear to be prominent in a specific fixed-guideway proposal” Rationale Rationale Acknowledges and captures heretofore ignored non- transportation (time and cost) attributes of fixed guideway projects for areas considering new guideway modes Acknowledges and captures heretofore ignored non- transportation (time and cost) attributes of fixed guideway projects for areas considering new guideway modes Enhances consistent treatment of projects nationally Enhances consistent treatment of projects nationally Improves reliability of travel forecasts by mitigating against poorly-estimated constants (“correction factors”) Improves reliability of travel forecasts by mitigating against poorly-estimated constants (“correction factors”)

18. Possible Rules for Mode-Specific Constants Proposed Implementation Proposed Implementation 1. Single “guideway” value 2. Values for each guideway mode 3. “Line item” values for unmeasured attributes Values and application of values to travel forecasts to be presented in FY 08 New Starts Reporting Instructions Values and application of values to travel forecasts to be presented in FY 08 New Starts Reporting Instructions