FY2007 New Starts Annual Report & Introduction To Discussions

New Starts/Small Starts Listening Session New Starts/Small Starts Listening Session and Seminarand Seminar

San Francisco, CASan Francisco, CA

February 15-16, 2006February 15-16, 2006

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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

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Alternatives Analysis

Final DesignCommitment of Non-Federal Funding, Construction Plans, ROW Acquisition,

Before-After Data Collection Plan, FTA Evaluation for FFGA,

Begin Negotiations

Pro

ject

Man

agem

ent O

vers

ight

Construction

Preliminary EngineeringComplete 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

ConstructionDecision Point

Major Development Stage

Systems PlanningPlanning

New Starts Planning and Project Development Process

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

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Summary Rating

Project Justification Rating

Financial Rating

Non-Section5309 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&MCost

User Benefits

Metropolitan Planning and Programming Requirements

Project Management Technical Capability

Other Considerations

NEPA Approvals

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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

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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

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Summary of Overall Project RatingsProjects 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

-------------- 4 Removed from FD / PE

• 0 Not Rated

-------------- 12 Removed from FD / PE

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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.

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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

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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.

Location Project Total New Starts Share

Total Project

Cost

FY 2007 Budget

New York, NY Long Island Rail Road East Side Access

$2,632.1 M

(34 %)

$7,779.3 M $300 M

Pittsburgh, PA North Shore LRT Connector $217.7 M

(55 %)

$393.0 M $55 M

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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

Location Project Total New Starts Share

Total Project Cost

FY 2007 Budget

Denver, CO West Corridor LRT $290.6 M

(49%)

$593.0 M $35.0 M

Portland, OR South 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, TX Northwest/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

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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

Location Project Rating Total New Starts Share

Total Project Cost

New York, NY Second Avenue Subway MOS Medium $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, VA Norfolk LRT Medium $99.8 M

(49%)

$203.7 M

Seattle, WA University Link LRT Extension High $700.0 M

(41%)

$1,720.0 M

Largo, MD Additional 52 Rail Cars Required by SAFETEA-LU

Not Applicable

To Be Determined

To Be Determined

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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

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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

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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

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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

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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