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

2. 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. 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. 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. 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. 6 Small Starts/Very Small Starts Eligible 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. 7 Small Starts/Very Small Starts Project Development Alternatives Analysis –Simplified –Project Justification based on Warrants for Very Small Starts Project Development Project Construction Grant Agreement

8. 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. 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. 10 FTA Ratings: Small Starts Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share Capital Finances Operating Finances Other Factors Cost Effectiveness Land Use Minimum Project Development Requirements: Capital Cost O&M Cost User Benefits Metropolitan Planning and Programming Requirements Project Management Technical Capability Other Considerations NEPA Approvals

11. 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. 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. 13 FTA Ratings: Very Small Starts Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share Capital Finances Operating Finances Other Factors Cost Effectiveness Land Use Minimum Project Development Requirements: Capital Cost Benefiting Riders Metropolitan Planning and Programming Requirements Project Management Technical Capability Other Considerations NEPA Approvals

14. 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. 15 Summary Ratings 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 Summary Rating Project Justification Rating (50%) Local Financial Commitment Rating (50%)

16. 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. 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. 18 Conclusion QUESTIONS?