INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM
HDR is providing this interim guidance on the MAP-21 changes to the FTA Major Capital Investment Grant Program, including New Starts, Small Starts and the new Core Capacity Improvement projects. This interim guidance is based on the latest information available through FTA and industry outreach, and will be updated when new information is available. This document provides an overview of the MAP-21 program definitions and eligibility, the project development and approval process, project evaluation criteria and ratings, and other key provisions. Finally, we provide specific transitional guidance for projects that are initiating or currently completing Alternatives Analysis (AA), for projects currently in New Starts Preliminary Engineering and Final Design, and for projects currently in Small Starts Project Development.
MAP-21 Transit Provisions Overview
Moving Ahead for Progress in the 21st Century (MAP-21) was signed into law on July 6, 2012. SAFETEA will expire on September 30th and MAP-21 will take effect on October 1, 2012. MAP-21 is a two-year authorization in effect until September 30, 2014. It is anticipated that many of the policy and procedural changes introduced in MAP-21 will continue into the next authorization bill. The bill authorizes $10.578 billion for transit programs in FY 2013 and $10.701 billion in FY 2014. MAP-21 introduces a few new programs, repeals or consolidates others, and modifies existing programs as well.
FTA Guidance and Final Rule
The law requires that FTA will publish a Final Rule on the New Starts project evaluation and rating process within one year and that Policy Guidance will be distributed within 180 days. FTA staff indicated that interim guidance will likely not be released until after October 1. FTA has produced a series of basic fact sheets on the different transit programs addressed and funded in MAP-21, and has posted these on the FTA website (http://fta.dot.gov/map21/) . FTA is advancing previous rulemaking efforts underway prior to the passage of MAP-21, and is anticipating re-releasing the Final Rule on the New Starts project evaluation process in the near future. HDR is actively involved with the American Public Transportation Association (APTA) and other advocacy groups working with FTA staff to address outstanding questions and issues leading up to and beyond the October 1 implementation of MAP-21.
Fixed Guideway Capital Investment Grants
MAP-21 maintains the New Starts and Small Starts programs and introduces some changes and clarifications on how Bus Rapid Transit (BRT) projects are defined in each program. MAP-21 introduces a new eligible program for Core Capacity Improvement Projects. The bill authorizes approximately $1.9 billion annually for the Fixed Guideway Capital Investment Grants, and does not currently allocate specified funding levels for New Starts, Core Capacity and Small Starts. This may be addressed in a technical corrections bill or other mechanism.
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New Fixed Guideway Capital Projects (or New Starts) continues to be defined as a minimum operable segment or an extension to an existing fixed guideway transit system. New Starts includes Fixed Guideway BRT projects in which the majority operates in separated right-of-way dedicated for transit use during peak periods, represents substantial investment in single route in defined corridor or subarea, and includes features that emulate services provided by rail (defined stations, traffic signal priority, short bi-directional headways).
INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM
Core Capacity Improvement Projects is defined as a substantial corridor-based capital investment in an existing investment in an existing fixed guideway system that increases the capacity of a corridor by not less than 10%. The eligible corridor must be at or over capacity or projected to be at or over capacity within next 5 years. Projects must not include State of Good Repair elements for an existing fixed guideway system. Small Starts Projects continue to be defined as a new fixed guideway capital project or a corridor-based BRT project which is requesting less than $75 million in Section 5309 funds and has a total capital cost less than $250 million. A corridorbased BRT project is defined as a substantial investment in a defined corridor in which the majority does not operate in a separated rightof-way dedicated for transit use during peak periods, and includes features that emulate services provided by rail (defined stations, traffic signal priority, short bi-directional headways).
Map-21 Prject Development Process
New Starts and Core Capacity Projects
System Planning Letter Request
FTA Acceptance into Project Development
Project Development and Advancement
MAP-21 simplifies the project approval process, first by eliminating the Alternatives Analysis as a stand-alone requirement, relying instead on the review of alternatives during the metropolitan planning and NEPA environmental review processes. Project sponsors submit a letter request to FTA/USDOT seeking entry into Project Development for New Starts, Core Capacity and Small Starts projects. The project is not evaluated nor rated at this stage. The NEPA environmental review is completed during Project Development, and project sponsors must complete this phase within two years or request an extension from FTA. Following the NEPA decision and selection of the locally preferred alternative, FTA evaluates and rates New Starts and Core Capacity projects based on statutory criteria for approval into the Engineering phase (similar to current Final Design approval), followed by a Full Funding Grant Agreement. It is still not clear exactly how FTA intends to define and apply oversight procedures for preliminary engineering and final design in conjunction with the new formal phases of “project development” and “engineering”. Following the Project Development phase and the NEPA decision, Small Starts projects are evaluated and rated in consideration of award of a single year grant or an expedited grant agreement (there is no longer a Project Construction Grant Agreement for Small Starts).
New Starts and Core Capacity Projects • No AA required • Letter request to Secretary • No evaluation and rating for entry into Project Development • Project Development to complete NEPA, refine costs, finance plan. Activities to obtain project rating must be completed within 2 years
• Rating applied for approval to initiate Engineering (similar to current Final Design approval)
• Intent is to continue “locking in” New Starts amount at Engineering approval
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Project Development and NEPA
FTA Approval into Engineering
Engineering
Full Funding Grant Agreement FFGA
INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM
Small Starts Projects • Letter request to Secretary • No evaluation and rating for entry into Project Development • Project Development to complete NEPA, refine costs, finance plan • Rating on Federal funding amount (not total project cost) and applied prior to
Map-21 Prject Development Process Small Starts Projects
System Planning Letter Request
FTA funding decision
• No PCGA – either in single grant or “expedited grant agreement” Project Evaluation and Ratings
Project rating is not applied until approval to initiate Engineering for New Starts and Core Capacity projects, and not until the funding decision for Small Starts. Project ratings are based on project justification, land use policies and patterns, and local financial commitment for New Starts and Small Starts. Additional factors addressing Capacity Needs are rated for Core Capacity Projects. A congestion relief criterion has been added while the operating efficiencies criterion has been eliminated. Note that cost effectiveness is specifically defined in statute as “cost per rider,” eliminating the current “transportation system user benefit” measure. MAP21 increases the number of evaluation criteria for Small Starts projects, but requires that FTA evaluate the benefits of a Small Starts project against the Federal share (not total project cost) when calculating project justification criteria. Project ratings for New Starts, Core Capacity, and Small Starts are based on a 5-point scale with comparable weight to each criterion, and the bill includes specific language that a medium rating may not be required for any single criterion. Detailed definitions, procedures, and rating thresholds are to be determined by FTA in upcoming rules and reporting procedures. MAP-21 allows for the use of “warrants” under certain conditions, enabling projects to automatically achieve ratings for project justification criteria. Much work needs to be done to apply the “warrants”-based approach.
Program of Interrelated Projects
MAP-21 allows the simultaneous development of a combination of multiple New Starts and Core Capacity projects. Non-Federal funds committed to a project in the Program of Projects may be used to meet the non-Federal share for any other project in the Program of Projects, though Federal share cannot exceed 80% for any one project. Any Federally funded project within the Program of Projects must follow the MAP-21 rating and project advancement process. FTA evaluates and rates all projects in the Program (Federally funded and non-Federally funded) as one applicant. Non-Federally funded projects in a Program of Projects do not need to meet Federal requirements that would otherwise not apply (e.g., NEPA). FTA completes an annual review of a program implementation plan, and the project sponsor must repay all Federal funds if the complete Program of Projects (Federal and non-Federal projects) is not implemented within a reasonable timeframe. There are many outstanding questions on how this new provision will be implemented. Note also that MAP-21 only provides this opportunity to New Starts and Core Capacity projects. It is anticipated that a Congressional technical corrections bill or other action will also apply this provision to Small Starts projects.
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FTA Acceptance into Project Development
Project Development and NEPA
Single Grant or Expedited Grant Agreement
INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM MAP-21 New Starts Rating Framework
Summary Rating
Project Justification Rating
Mobility Improvements
Land Use Policies and Patterns
Environmental Benefits
Land Use
Congestion Relief
Economic Development
Availability of Contingency
Financial Rating
Stability, Reliability, Availability of Sources
Resources to Recapitalize, Operate, Maintain System
Cost Effectiveness
MAP-21 Core Capacity Project Rating Framework
Summary Rating
Project Justification Rating
Mobility Improvements
Environmental Benefits
Land Use
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Capacity Needs of the Corridor
Congestion Relief
Economic Development
Cost Effectiveness
Availability of Contingency
Financial Rating
Stability, Reliability, Availability of Sources
Resources to Recapitalize, Operate, Maintain System
INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM MAP-21 New Starts Rating Framework
Summary Rating
Project Justification Rating
Mobility Improvements
Environmental Benefits
Land Use
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Land Use Policies and Patterns
Congestion Relief
Economic Development
Cost Effectiveness
Financial Rating
Stability, Reliability, Availability of Sources
INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM
Additional Provisions
Project sponsors must continue to complete Before and After Studies, which FTA must submit to Congress in an Annual Report. The bill continues the use of Letters of Intent and Early Systems Work Agreements. Expedited technical capacity review is allowed for project sponsors who have successfully completed one or more New Starts or Core Capacity projects. In addition, MAP-21 introduces a “Pilot Program for Expedited Project Delivery.”
Initial Guidance for Projects in Alternatives Analysis (AA) or in New Starts/Small Starts
FTA has not yet provided any specific transitional guidance for projects that are initiating or currently completing Alternatives Analysis (AA), or for projects currently in New Starts Preliminary Engineering and Final Design phases or the Small Starts Project Development phase. The only FTA guidance provided to date is that the current SAFETEA-LU based criteria, rating procedures, and reporting instructions will remain in effect until further direction from FTA. Below is initial guidance that the APTA Policy and Planning Committee is proposing in discussions with FTA staff. HDR will update this guidance as more information becomes available.
Projects currently completing or initiating the Alternatives Analysis (AA):
MAP-21 eliminates the Alternatives Analysis (AA) as a stand-alone requirement within the New Starts program. The selection of a locally preferred alternative (LPA) is to be completed during NEPA. Several project sponsors who are conducting AAs or initiating AAs have inquired if this planning work is still required and are unsure of the necessary scope. While FTA has not yet provided specific guidance on these issues, here is the best advice we can provide at this time:
• FTA and Congress will continue to encourage early planning as input to local
decision-making, therefore the basic intent and scope of an Alternatives Analysis type of planning study is still very relevant in order to define the problem in the corridor, evaluate and screen different alternatives, and define the preferred project and alignment. In fact, it is likely that MAP-21 changes in process and procedures will result in an even greater need for early planning and sound local decision-making prior to the FTA Project Development stage.
• If a project is currently in AA, it may choose to continue or may choose to wrap Alternatives Analysis efforts into NEPA, at the project’s discretion.
• AA scopes will no longer need to address the FTA New Starts/Small Starts
requirements, such as development and evaluation of the baseline alternative, but should focus on information for local decision-making.
Projects that have been awarded Section 5339 Discretionary AA Grants
Some project sponsors have received Section 5339 AA discretionary grants or have applied for such grants, and are unclear on the status of these AA grants and the conduct of the planning technical work. While FTA has not yet provided specific guidance on these issues, here is the best advice we can provide at this time:
• FTA staff has indicated that all previous grant agreements will continue in place
and that currently open discretionary grant announcements will proceed as planned. Some specifics on scope, etc. may be adjusted in current Section 5339
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INTERIM GUIDANCE ON MAP-21 FIXED GUIDEWAY CAPITAL INVESTMENT PROGRAM
AA Discretionary Grants reflecting the MAP-21 changes, but the basic planning intent and scope will continue. HDR staff can work with project sponsors on a case-by-case basis to review scope and budget for all Alternatives Analysis planning studies underway or about to begin.
Projects currently in New Starts Preliminary Engineering (PE) • As of October 1, 2012, when MAP-21 goes into effect, projects currently in New Starts PE are automatically approved into New Starts Project Development.
• These projects will not be required to apply for Final Design, but will instead
continue development toward approval into the “Engineering” phase under the MAP-21 process.
• These projects will not be subject to the 2-year requirement to complete
the “Project Development” phase from time of PE (or Project Development) approval, as required in the MAP-21 process.
• Costs incurred should be considered as eligible expenses for reimbursement under Section 5309 (this needs to be confirmed by FTA).
Projects currently in Small Starts Project Development • As of October 1, 2012, when MAP-21 goes into effect, projects currently in Small Starts Project Development are automatically approved into the MAP-21 Small Starts Project Development.
• Costs incurred should be considered as eligible expenses for reimbursement under Section 5309 (this needs to be confirmed by FTA).
Projects currently in New Starts Final Design • MAP-21 Section 5309(j) directs that projects already approved into New Starts
Final Design are “grandfathered” under previous project definitions and process.
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