Projects of National and Regional Significance Evaluation and Rating, 41748-41752 [E6-11731]

Agencies

• Federal Highway Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 71, Number 141 (Monday, July 24, 2006)]
[Proposed Rules]
[Pages 41748-41752]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11731]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

23 CFR Part 505

[FHWA Docket No. FHWA-05-23393]
RIN 2125-AF08


Projects of National and Regional Significance Evaluation and 
Rating

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice of proposed rulemaking (NPRM); request for comments.

-----------------------------------------------------------------------

SUMMARY: Section 1301 of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Pub. L. 
109-59; 119 Stat. 1144) established a program to provide grants to 
States for Projects of National and Regional Significance (PNRS) to 
improve the safe, secure, and efficient movement of people and goods 
throughout the United States and to improve the health and welfare of 
the national economy. Section 1301 requires the Secretary of 
Transportation (Secretary) to establish regulations on the manner in 
which the proposed projects will be evaluated and rated, in order to 
determine which projects shall receive grant funding. This proposed 
rule would establish the required evaluation and rating guidelines for 
proposed projects. If this rule were adopted, a proposed project would 
become eligible to be funded under this program only if the Secretary 
finds that the project meets the requirements of the rule. In making 
such findings, the Secretary will evaluate and rate each project as 
``highly recommended,'' ``recommended,'' or ``not recommended'' based 
on the results of preliminary engineering, the project justification 
criteria, and the degree of non-Federal financial commitment.

DATES: Comments must be received on or before September 22, 2006. Late-
filed comments will be considered to the extent practicable.

ADDRESSES: Mail or hand deliver comments to the U.S. Department of 
Transportation, Docket Management Facility, Room PL-401, 400 Seventh 
Street, SW., Washington, DC 20590, or submit electronically at https://
dmses.dot.gov/submit, or fax comments to (202) 366-7909.
    Alternatively, comments may be submitted to the Federal eRulemaking 
portal at https://www.regulations.gov. All comments should include the 
docket number that appears in the heading of this document. All 
comments received will be available for examination and copying at the 
above address from 9 a.m. to 5 p.m., e.t., Monday through Friday, 
except Federal holidays. Those desiring notification of receipt of 
comments must include a self-addressed, stamped postcard or you may 
print the acknowledgment page that appears after submitting comments 
electronically. Anyone is able to search the electronic form of all 
comments in any one of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, or labor union). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70, Pages 19477-78) or you may visit 
https://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Strocko, Office of Freight 
Management and Operations, HOFM-1, (202) 366-2997, Ms. Alla Shaw, 
Office of the Chief Counsel, (202) 366-1042, or Ms. Diane Mobley, 
Office of the Chief Counsel, (202) 366-1372, Federal Highway 
Administration, 400 Seventh St., SW., Washington, DC 20590. Office 
Hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday through Friday, 
except Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access and Filing

    You may submit or retrieve comments online through the Document 
Management System (DMS) at: https://dmses.dot.gov/submit. Electronic 
submission and retrieval help and guidelines are available under the 
help section of the Web site. Alternatively, internet users may access 
all comments received by the U.S. DOT Docket Facility by using the 
universal resource locator (URL) https://dms.dot.gov. It is available 24 
hours each day, 365 days each year. Please follow the instructions. An 
electronic copy of this document may also be downloaded by accessing 
the Office of the Federal Register's home page at: https://
www.archives.gov or the Government Printing Office's Web page at http:/
/www.gpoaccess/gov/nara.

Background

    Section 1301 of SAFETEA-LU establishes a program to finance 
critical, high-cost transportation infrastructure facilities that 
address critical national economic and transportation needs. These 
projects often involve multiple levels of government, agencies, modes 
of transportation, and transportation goals and planning processes that 
are not easily addressed or funded within existing surface 
transportation program categories. Projects of National and Regional 
Significance would have national and regional benefits, including 
improving economic productivity by facilitating international trade, 
relieving congestion, and improving transportation safety by 
facilitating passenger and freight movement. Additionally, this program 
would further the goals of the Secretary's Congestion Initiative.\1\
---------------------------------------------------------------------------

    \1\ Speaking before the National Retail Foundation's annual 
conference on May 16, 2006, in Washington, DC, U.S. Transportation 
Secretary Norman Mineta unveiled a new plan to reduce congestion 
plaguing America's roads, rail and airports. The National Strategy 
to Reduce Congestion on America's Transportation Network includes a 
number of initiatives designed to reduce transportation congestion 
and is available at the following URL: https://isddc.dot.gov/
OLPFiles/OST/012988.pdf.
---------------------------------------------------------------------------

    The benefits of PNRS would accrue beyond local areas and States to 
the Nation as a whole. A program dedicated to constructing PNRS would 
improve the safe, secure, and efficient movement of people and goods 
throughout the United States as well as improve the health and welfare 
of the national economy. The FHWA specifically invites comments that 
contribute to an understanding and a quantification of the term 
national and/or regional economic benefits.
    Under the proposed regulations, a State seeking a grant for a 
proposed PNRS would submit to the Secretary an application that 
demonstrates the ability of the proposed project to enhance the 
national transportation system, generate national economic benefits, 
reduce congestion, improve transportation safety, and attract non-
Federal investment.
    The Secretary shall evaluate and rate each proposed project as 
``highly recommended,'' ``recommended,'' or ``not recommended'' based 
on the results of preliminary engineering, the project justification 
criteria, and degree of non-Federal financial commitments. If the 
Secretary finds that the proposed project meets the requirements of the 
regulations, and there is a reasonable likelihood that the project will 
continue to meets such requirements, the Secretary may issue a letter 
of intent to obligate an amount from future available budget authority 
specified in law or execute a full funding grant agreement

[[Page 41749]]

with a State. A full funding grant agreement would establish the terms 
of Federal participation in the project, maximum amount of Federal 
financial assistance, cover the period of time for completing the 
project, and cover the timely and efficient management of the project 
in accordance with applicable Federal statutes, regulations, and 
policy, including oversight roles and responsibilities, and other terms 
and conditions.
    All the funds authorized by section 1101(a)(15) of SAFETEA-LU are 
fully designated to the 25 projects in section 1301(m). There are no 
funds available for distribution beyond those already designated. The 
25 projects designated in subsection (m) of section 1301 of SAFETEA-LU 
are not subject to the criteria established in this part and they will 
not be subject to the evaluation and rating as proposed in this part. 
However, all grant recipients for the projects designated in subsection 
(m) of section 1301 of SAFETEA-LU must submit to the FHWA Office of 
Operations, through the State Department of Transportation and the FHWA 
Division Office of the State in which a project is located, a project 
description prior to the release of designated funds. The FHWA Division 
Office will review and comment on the project description and forward 
the description to the FHWA Office of Operations. The FHWA guidance on 
section 1301 grant recipient project description submission procedures 
is available from the FHWA Division Offices or the FHWA Office of 
Operations, and is available at https://www.ops.fhwa.dot.gov/freight/
policy.htm.

Section-by-Section Discussion of the Proposals

Section 505.1 Purpose

    The purpose of this part is to implement the requirements of 
SAFETEA-LU section 1301(f)(6) which directs the Secretary to establish 
evaluation and rating guidelines for proposed Projects of National and 
Regional Significance (PNRS). A proposed project may be funded under 
this program only if the Secretary finds that the project meets the 
requirements of this regulation.

Section 505.3 Policy

    Under current law, surface transportation programs rely primarily 
on formula capital apportionments to States. Despite the significant 
increase for surface transportation program funding in the 
Transportation Equity Act of the 21st Century, current levels of 
investment are insufficient to fund critical high-cost transportation 
infrastructure facilities that address critical national economic and 
transportation needs. Critical high-cost transportation infrastructure 
facilities often include multiple levels of government, agencies, modes 
of transportation, and transportation goals and planning processes that 
are not easily addressed or funded within existing surface 
transportation program categories. Projects of National and Regional 
Significance have national and regional benefits, including improving 
economic productivity by facilitating international trade, relieving 
congestion, and improving transportation safety by facilitating 
passenger and freight movement. The benefits of projects described 
above accrue to local areas, States, and the Nation as a result of the 
effect such projects have on the national transportation system. A 
program dedicated to constructing Projects of National and Regional 
Significance is necessary to improve the safe, secure, and efficient 
movement of people and goods throughout the United States and improve 
the health and welfare of the national economy.

Section 505.5 Definitions

    The specific terms that have special significance to a proposal 
under the Projects of National and Regional Significance program are 
defined in this section. An ``Applicant'' for grants shall be limited 
to State departments of transportation.
    The FHWA proposes to define ``eligible projects'' in a flexible 
manner. Specifically, because of the national and regional scope of the 
projects to be funded under this section, and because this section is 
explicitly intended to provide funding for high-cost transportation 
infrastructure facilities that often include multiple modes of 
transportation and affect multiple jurisdictions, the FHWA proposes to 
include those projects that are intended to be multi-modal. The FHWA 
further proposes to define the term ``eligible project costs'' to 
include costs associated with non-highway facilities, though the 
portions of the projects funded through grants awarded under this 
program must be otherwise eligible under title 23, United States Code.
    ``Full funding grant agreements'' (FFGA) will be used to define the 
project scope and scale, and time period, and will establish Federal 
funding levels under title 23 U.S.C. for Projects of National and 
Regional Significance.

Section 505.7 Eligibility

    This section establishes the minimum size for projects considered 
to be nationally or regionally significant as having eligible project 
costs that are reasonably anticipated to equal or exceed the lesser of 
$500 million or 75 percent of the amount of Federal highway assistance 
funds apportioned for the most recently completed fiscal year to the 
State in which the project is located. For those projects that are 
proposed by multiple States, the FHWA is considering establishing the 
minimum size for projects as those having eligible project costs that 
are equal to or exceed the lesser of $500 million or 75 percent of the 
amount of Federal highway assistance funds apportioned for the most 
recently completed fiscal year to the State in which the project is 
located that has the largest apportionment.

Section 505.9 Criteria for Grants

    Under proposed section 505.9(a), a proposal must include, in its 
project description, evidence that the project is eligible to receive 
the Secretary's recommendation for funding. The proposal should: (1) 
Document the results of preliminary engineering; (2) Demonstrate that 
the project will generate national economic benefits, including 
creating jobs, expanding business opportunities, and impacting the 
gross domestic product, including, for example, a detailed project 
Cost-Benefit Analysis (CBA) including estimates of regional and 
national economic benefits expected to result from the project; (3) 
Demonstrate that the project will reduce congestion in the form of 
statements of current traffic volume, value, weight, volume to capacity 
(V/C) ratios, congestion levels, transit times (by time of day), and 
delays in the affected region and corridor, and projections of each for 
both the build and no-build scenarios; and (4) Demonstrate that the 
project will improve transportation safety in the form of statements of 
the number of crashes, injuries and fatalities in the affected region 
and corridor, and projections of each for both the build and no-build 
scenarios.
    Under proposed section 505.9(b), the grant applicant must disclose 
to the Secretary any public-private partnership agreements in place or 
anticipated to be used to support the project. The grant applicant must 
identify areas where new technologies, including intelligent 
transportation systems that enhance the efficiency of the project, will 
be incorporated in the project. Finally, the grant applicant must 
provide

[[Page 41750]]

documentation of the results of environmental analysis.
    Under proposed section 505.9(c), grant applicants must further 
provide evidence that the proposed project plan provides for the 
availability of contingency amounts reasonable to cover unanticipated 
cost increases, that each proposed non-Federal source of capital and 
operating financing is stable, reliable, and available within the 
proposed project timetable, and that the project has a non-Federal 
financial commitment that equals or exceeds the required non-Federal 
share of the cost of the project.

Section 505.11 Project Evaluation and Rating

    This section describes the rating system the Secretary will use to 
determine whether a proposed project may be funded under the program. 
In making such determinations, the Secretary shall evaluate and rate 
the project as ``highly recommended,'' ``recommended,'' or ``not 
recommended'' based on the results of preliminary engineering, the 
project justification criteria, and the degree of non-Federal financial 
commitment.

Section 505.13 Federal Government's Share of Project Cost

    This section establishes the Federal share for projects funded 
under this section at 80 percent, unless the grant recipient requests a 
lesser amount of Federal funding. However, under section 1964 of 
SAFETEA-LU, Alaska, Montana, Nevada, North Dakota, Oregon, and South 
Dakota are permitted to use the provisions of 23 U.S.C. 120(b) for 
determining the non-Federal match requirements for projects listed in 
section 1301.

Section 505.15 Full Funding Grant Agreement

    This section establishes that a project financed under this 
subsection shall be carried out through a full funding grant agreement.

Section 505.17 Applicability of Title 23, U.S. Code

    This section provides that funds made available to carry out this 
program shall be available for obligation in the same manner as if they 
were apportioned under chapter 1 of title 23, United States Code. This 
section also prohibits the transfer of funds between agencies.

Rulemaking Analyses and Notices

    All comments received before the close of business on the comment 
closing date indicated above will be considered and will be available 
for examination in the docket at the above address. Comments received 
after the comment closing date will be filed in the docket and will be 
considered to the extent practicable. In addition to late comments, the 
FHWA will also continue to file relevant information in the docket as 
it becomes available after the comment period closing date, and 
interested persons should continue to examine the docket for new 
material. A final rule may be published at any time after close of the 
comment period.

Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    The FHWA has determined preliminarily that this action would be a 
significant rulemaking action within the meaning of Executive Order 
12866 and would be significant within the meaning of the U.S. 
Department of Transportation's regulatory policies and procedures. This 
rulemaking proposes evaluation and rating procedures for Projects of 
National and Regional Significance as mandated in section 1301 of 
SAFETEA-LU.
    The Projects of National and Regional Significance Program is a 
newly created and complex program, receiving substantial Federal 
funding. This action is considered significant because of the 
substantial State and local government, and public interest in the 
administration of this newly created program. Because this program is 
dedicated to constructing critical high-cost transportation 
infrastructure facilities that address critical national economic and 
transportation needs, it is essential for the FHWA to develop 
evaluations and rating criteria to ensure that selected projects will 
further the goals of the program.
    This rule is not anticipated to adversely affect, in a material 
way, any sector of the economy. This rulemaking sets forth evaluation 
and ratings criteria for project proposals in the Projects of National 
and Regional Significance program, which will result in only minimal 
cost to program applicants. In addition, this proposed rule would not 
create a serious inconsistency with any other agency's action or 
materially alter the budgetary impact of any entitlements, grants, user 
fees, or loan programs. Consequently, a full regulatory evaluation is 
not required.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (Pub. L. 96-354, 
5 U.S.C. 60l-612) we have evaluated the effects of this proposed action 
on small entities and have determined that the proposed action would 
not have a significant economic impact on a substantial number of small 
entities.
    The proposed rule addresses evaluation and rating procedures for 
States wishing to submit project proposals for Projects of National and 
Regional Significance. As such, it affects only States and States are 
not included in the definition of small entity set forth in 5 U.S.C. 
601. Therefore, the Regulatory Flexibility Act does not apply, and the 
FHWA certifies that this action would not have a significant economic 
impact on a substantial number of small entities.

Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose unfunded mandates as defined by 
the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4; 109 Stat. 48). 
This proposed rule will not result in the expenditure by State, local, 
and tribal governments, in the aggregate, or by the private sector, of 
$120.7 million or more in any 1 year (2 U.S.C. 1532). Further, in 
compliance with the Unfunded Mandates Reform Act of 1995, the FHWA will 
evaluate any regulatory action that might be proposed in subsequent 
stages of the proceeding to assess the effects on State, local, and 
tribal governments and the private sector. Additionally, the definition 
of ``Federal Mandate'' in the Unfunded Mandates Reform Act excludes 
financial assistance of the type in which State, local, or tribal 
governments have authority to adjust their participation in the program 
in accordance with changes made in the program by the Federal 
Government. The Federal-aid highway program permits this type of 
flexibility.

Executive Order 13132 (Federalism)

    This proposed action has been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132, and the 
FHWA has determined that this proposed action would not have sufficient 
federalism implications to warrant the preparation of a federalism 
assessment. The FHWA has also determined that this proposed action 
would not preempt any State law or State regulation or affect the 
States' ability to discharge traditional State governmental functions.

Executive Order 12372 (Intergovernmental Review)

    Catalog of Federal Domestic Assistance Program Number 20.205, 
Highway Planning and Construction. The regulations implementing 
Executive Order 12372 regarding intergovernmental consultation on

[[Page 41751]]

Federal programs and activities apply to this program. Accordingly, the 
FHWA solicits comments on this issue.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501), 
Federal agencies must obtain approval from the Office of Management and 
Budget (OMB) for each collection of information they conduct, sponsor, 
or require through regulations. The FHWA has determined preliminarily 
that this proposal does not contain collection of information 
requirements for the purposes of the PRA. The FHWA does not anticipate 
receiving project proposals from ten or more States in any given year 
because of the nature of the projects eligible under the PNRS program. 
These projects are critical high-cost transportation infrastructure 
facilities that often include multiple levels of government, agencies, 
modes of transportation, and transportation goals and planning 
processes that are not easily addressed or funded within existing 
surface transportation program categories. In fact, the Congress has 
identified only 25 such projects for funding over the 5-year 
authorization period currently established for this program.

National Environmental Policy Act

    The agency has analyzed this proposed action for the purpose of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321-4347) and has 
determined that the establishment of the evaluation and rating 
procedures for proposed Projects of National and Regional Significance, 
as required by the Congress in SAFETEA-LU, would not have any effect on 
the quality of the environment.

Executive Order 12630 (Taking of Private Property)

    The FHWA has analyzed this proposed rule under Executive Order 
12630, Governmental Actions and Interface with Constitutionally 
Protected Property Rights. The FHWA does not anticipate that this 
proposed action would affect a taking of private property or otherwise 
have taking implications under Executive Order 12630.

Executive Order 12988 (Civil Justice Reform)

    This action meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Executive Order 13045 (Protection of Children)

    We have analyzed this rule under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. The FHWA 
certifies that this proposed action would not cause any environmental 
risk to health or safety that might disproportionately affect children.

Executive Order 13175 (Tribal Consultation)

    The FHWA has analyzed this action under Executive Order 13175, 
dated November 6, 2000, and believes that the proposed action would not 
have substantial direct effects on one or more Indian tribes; would not 
impose substantial direct compliance costs on Indian tribal 
governments; and would not preempt tribal laws. The proposed rulemaking 
addresses evaluation and rating procedures for the Projects of National 
and Regional Significance Program and would not impose any direct 
compliance requirements on Indian tribal governments. Therefore, a 
tribal summary impact statement is not required.

Executive Order 13211 (Energy Effects)

    We have analyzed this action under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use dated May 18, 2001. We have determined that it is 
not a significant energy action under that order since it is not likely 
to have a significant adverse effect on the supply, distribution, or 
use of energy. Therefore, a Statement of Energy Effects is not 
required.

Regulation Identification Number

    A regulation identification number (RIN) is assigned to each 
regulatory action listed in the Unified Agenda of Federal Regulations. 
The Regulatory Information Service Center publishes the Unified Agenda 
in April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action with the 
Unified Agenda.

List of Subjects in 23 CFR Part 505

    Grant programs-transportation, Highways and roads, Intermodal 
transportation.

    Issued on: July 18, 2006.
Frederick G. Wright, Jr.,
Federal Highway Executive Director.
    In consideration of the foregoing, the FHWA proposes to add a new 
part 505 to title 23, Code of Federal Regulations, to read as follows:

PART 505--PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE EVALUATION 
AND RATING

Sec.
505.1 Purpose.
505.3 Policy.
505.5 Definitions.
505.7 Eligibility.
505.9 Criteria for grants.
505.11 Project evaluation and rating.
505.13 Federal government's share of project cost.
505.15 Full funding grant agreement.
505.17 Applicability of Title 23, U.S. Code.

    Authority: Section 1301 of the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (Pub. L. 
109-59; 119 Stat. 1144); 23 U.S.C. 315; 49 CFR 1.48.


Sec.  505.1  Purpose.

    The purpose of this part is to establish evaluation, rating, and 
selection guidelines for funding proposed Projects of National and 
Regional Significance (PNRS).


Sec.  505.3  Policy.

    A Project of National and Regional Significance should be of 
national and regional significance, and shall cause quantitatively 
projected improvements in economic productivity by facilitating 
international trade and providing congestion relief, and should improve 
transportation safety by facilitating passenger and freight movement.


Sec.  505.5  Definitions.

    Unless otherwise specified in this part, the definitions contained 
in 23 U.S.C. 101(a) are applicable to this part. In addition, the 
following definitions apply:
    Applicant means a State Department of Transportation.
    Eligible Project means any surface transportation project eligible 
for Federal assistance under title 23, United States Code, including 
freight railroad projects and activities eligible under such title.
    Eligible Project Costs means the costs of:
    (1) Development phase activities, including planning, feasibility 
analysis, revenue forecasting, environmental review, preliminary 
engineering and design work, and other preconstruction activities; and
    (2) Construction, reconstruction, rehabilitation, and acquisition 
of real property (including land related to the project and 
improvements to land), environmental mitigation, construction 
contingencies, acquisition of equipment, and operational improvements.
    Full funding grant agreement (FFGA) means the agreement used to 
provide Federal financial assistance under title

[[Page 41752]]

23 U.S.C. for Projects of National and Regional significance. An FFGA 
defines the scope of the project, establishes the maximum amount of 
Government financial assistance for the project, covers the period of 
time for completion of the project, facilitates the efficient 
management of the project in accordance with applicable Federal 
statutes, regulations, and policy, including oversight roles and 
responsibilities, and other terms and conditions.


Sec.  505.7  Eligibility.

    To be eligible for assistance under this program, a project shall 
have eligible project costs that are reasonably anticipated to equal or 
exceed the lesser of--
    (a) $500,000,000; or
    (b) 75 percent of the amount of Federal highway assistance funds 
apportioned for the most recently completed fiscal year to the State in 
which the project is located.


Sec.  505.9  Criteria for grants.

    (a) The Secretary will approve a grant for a Project of National 
and Regional Significance project only if the Secretary determines, 
based upon information submitted by the applicant, that the project:
    (1) Is based on the results of preliminary engineering;
    (2) Is supported by an acceptable degree of non-Federal financial 
commitments, including evidence of stable and dependable financing 
sources to construct, maintain, and operate the infrastructure 
facility; and
    (3) Is justified based on the ability of the project:
    (i) To generate national and/or regional economic benefits, 
including creating jobs, expanding business opportunities, and 
impacting the gross domestic product;
    (ii) To reduce congestion, including impacts in the State, region, 
and Nation;
    (iii) To improve transportation safety, including reducing 
transportation accidents, injuries, and fatalities;
    (iv) To otherwise enhance the national transportation system; and
    (v) To garner support for non-Federal financial commitments and 
provide evidence of stable and dependable financing sources to 
construct, maintain, and operate the infrastructure facility.
    (b) In selecting projects under this section, the Secretary will 
consider the extent to which the project:
    (1) Leverages Federal investment by encouraging non-Federal 
contributions to the project, including contributions from public-
private partnerships;
    (2) Uses new technologies, including intelligent transportation 
systems, that enhance the efficiency of the project; and
    (3) Helps maintain or protect the environment.
    (c) In evaluating a non-Federal financial commitment under 
paragraph (a)(2) of this section, the Secretary shall require that:
    (1) The proposed project plan provides for the availability of 
contingency amounts that the Secretary determines to be reasonable to 
cover unanticipated cost increases; and
    (2) Each proposed non-Federal source of capital and operating 
financing is stable, reliable, and available within the proposed 
project timetable. In assessing the stability, reliability, and 
availability of proposed sources of non-Federal financing, the 
Secretary will consider:
    (i) Existing financial commitments;
    (ii) The degree to which financing sources are dedicated to the 
purposes proposed;
    (iii) Any debt obligation that exists or is proposed by the 
recipient for the proposed project; and
    (iv) The extent to which the project has a non-Federal financial 
commitment that exceeds the required non-Federal share of the cost of 
the project.


Sec.  505.11  Project evaluation and rating.

    (a) A proposed project may not be funded under this program unless 
the Secretary finds that the project meets the requirements of this 
part and there is a reasonable likelihood that the project will 
continue to meet such requirements.
    (b) In making such findings, the Secretary shall evaluate and rate 
the proposed project as ``highly recommended,'' ``recommended,'' or 
``not recommended'' based on the criteria in Sec.  505.9 of this part. 
Individual ratings of ``highly recommended,'' ``recommended,'' or ``not 
recommended'' for each of the criteria will also be provided to the 
applicant.


Sec.  505.13  Federal government's share of project cost.

    (a) Based on engineering studies, studies of economic feasibility, 
and information on the expected use of equipment or facilities, the 
Secretary shall estimate the project's eligible costs.
    (b) A grant for the project shall be for 80 percent of the eligible 
project cost, unless the grant recipient requests a lower grant 
percentage. A refund or reduction of the remainder may only be made if 
a refund of a proportional amount of the grant of the Federal 
Government is made at the same time.


Sec.  505.15  Full funding grant agreement.

    In general, a project financed under this section shall be carried 
out through a full funding grant agreement. The Secretary shall enter 
into a full funding grant agreement based on the evaluations and 
ratings required herein, and in accordance with the terms specified in 
section 1301(g)(2) of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users, (Pub. L. 109-59; 119 
Stat. 1144).


Sec.  505.17  Applicability of Title 23, U.S. Code.

    Funds made available to carry out this section shall be available 
for obligation in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except that such funds 
shall not be transferable to other agencies and shall remain available 
until expended and the Federal share of the cost of a Project of 
National and Regional Significance shall be as provided in Sec.  
505.13.

 [FR Doc. E6-11731 Filed 7-21-06; 8:45 am]
BILLING CODE 4910-22-P