Pilot Program for Expedited Project Delivery, 46251-46253 [2018-19860]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 83, Number 177 (Wednesday, September 12, 2018)]
[Notices]
[Pages 46251-46253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19860]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Pilot Program for Expedited Project Delivery

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice; request for expressions of interest to participate.

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SUMMARY: The Federal Transit Administration (FTA) is soliciting 
expressions of interest for the Expedited Project Delivery Pilot 
Program (Pilot Program) authorized by the Fixing America's Surface 
Transportation Act (FAST). The Pilot Program is aimed at expediting 
delivery of new fixed guideway capital projects, small starts projects, 
or core capacity improvement projects that utilize public-private 
partnerships, are planned to be operated and maintained by employees of 
an existing public transportation provider, and have a Federal share 
not exceeding 25 percent of the project cost. It is also aimed at 
increasing innovation, improving efficiency and timeliness of project 
implementation, and encouraging new revenue streams. The law specifies 
that not more than eight projects can be awarded grants under the Pilot 
Program. FTA intends to work with selected project sponsors to further 
define the steps that must be completed before a construction grant can 
be awarded under the Pilot Program, including expedited FTA reviews of 
technical capacity, local financial commitment, and project 
justification. This announcement is available on the FTA's website at: 
www.transit.dot.gov/funding/grants/expedited-project-delivery-capital-investment-grants-pilot-3005b.

DATES: Expressions of interest to become one of the participants in the 
Pilot Program for Expedited Project Delivery must be submitted to FTA 
by mail, email or facsimile by 11:59 p.m. EDT November 13, 2018.

ADDRESSES: Mail submission must be addressed to the Office of Planning 
and Environment, Federal Transit Administration, 1200 New Jersey Avenue 
SE, Room E45-119, Washington, DC 20590 and postmarked no later than 
November 13, 2018. Email submissions must be sent to 
[email protected] by 11:59 p.m. EDT on November 13, 
2018. Facsimile submissions must be submitted to the attention of 
Expedited Project Delivery Pilot Program at 202-493-2478 by 11:59 p.m. 
EDT ON November 13, 2018. If there are insufficient candidate projects 
that FTA determines meet the requirements of the Pilot Program, FTA may 
conduct additional requests for expressions of interest in the future.

FOR FURTHER INFORMATION CONTACT: Susan Eddy, FTA Office of Planning and 
Environment, telephone (202) 366-5499 or email [email protected].

SUPPLEMENTARY INFORMATION: 

1. Background

    FTA, together with its transit industry partners, invests billions 
of dollars in capital projects designed to improve public 
transportation by reinvesting in existing assets to expand capacity or 
by increasing the extent and quality of public transportation service 
by making new investments. These projects take considerable time to 
plan, develop, design, approve, and deploy. While it is important for 
FTA to ensure that it selects only well-conceived projects that are 
implemented in the most efficient and effective manner, a lengthy 
process delays the delivery of the intended benefits to the riding 
public.

2. Pilot Program

    Section 3005(b) of the FAST Act, Public Law 114-94 (December 4, 
2015), authorizes the Pilot Program for FTA to make not more than eight 
grants for new fixed guideway capital projects, small starts projects, 
or core capacity improvement projects that have not yet entered a 
construction grant agreement with the FTA. The law defines these types 
of eligible projects for the Pilot Program in a manner similar to, but 
not entirely the same as, the CIG program. Thus, FTA encourages project 
sponsors to review closely the definitions found in Section 3005(b) to 
ensure the project's eligibility.
    Eligible applicants to the Pilot Program are state or local 
government authorities. Proposed projects must utilize public-private 
partnerships; be operated and maintained by employees of an existing 
provider of fixed guideway or bus rapid transit public transportation 
in the service area of the project, or if none exists, by employees of 
an existing public transportation provider in the service area; and 
have a Federal share not exceeding 25 percent of the net capital 
project cost. Project sponsors also must have financial advisors 
providing guidance to them on the terms and structure of the project 
that are independent from investors in the project. Sponsors must 
further certify that the existing public transportation system is in a 
state of good repair as defined by law. (See Pub. L. 114-94, 129 STAT. 
1458; 49 U.S.C. 5302; 49 U.S.C. 5326(b)(1); 49 CFR 625.5.)

[[Page 46252]]

    The Pilot Program requires FTA to use an expedited technical 
capacity review process for sponsors that have recently and 
successfully completed at least one new fixed guideway capital project, 
small start project, or core capacity improvement project, if the 
sponsor achieved budget, cost, and ridership outcomes for the project 
that are consistent with or better than projections and the applicant 
demonstrates that it continues to have staff expertise and other 
resources to implement a new project.
    While not all of the following are required with the expression of 
interest submission, project sponsors should understand that prior to 
being considered for a grant agreement, Section 3005(b) requires that 
project sponsors requesting a construction grant under the Pilot 
Program must meet all requirements of Section 3005(B) and submit: (1) 
Information identifying the proposed eligible project; (2) a schedule 
and finance plan for the construction and operation of the project; (3) 
an analysis of the efficiencies of the proposed eligible project 
development and delivery methods and innovative financing arrangement 
for the eligible project. This submission must include documents 
related to the public-private partnership and justification of the 
project based on mobility improvements attributable to the project; 
environmental benefits associated with the project; congestion relief 
associated with the project; economic development effects derived as a 
result of the project; and estimated ridership projections; (4) a 
certification that the project sponsor's existing public transportation 
system is in a state of good repair, or, in the event that the 
applicant does not operate a public transportation system, the public 
transportation system to which the proposed project will be attached, 
is in a state of good repair. Alternatively, with respect to the state 
of good repair certification, for core capacity improvement projects, a 
sponsor may include a description of how the eligible project will 
allow it to make substantial progress in achieving a state of good 
repair. FTA may not award a construction grant agreement until after 
the project sponsor has completed necessary planning and activities 
required under the National Environmental Policy Act, 42 U.S.C. 4321, 
et seq., and the recipient has demonstrated the necessary legal, 
technical, and financial capacity to successfully complete the project. 
Project sponsors must also demonstrate an acceptable degree of local 
financial commitment and show evidence of stable and dependable 
financing sources. Part of FTA's consideration includes, but is not 
limited to, an analysis of the private contributions, management of the 
transfer of project risk, financial partnering, and other strategies 
included in the public-private partnership.
    The law also requires participants in the program to develop a 
Before and After Study Report that describes and analyzes the impacts 
of the project on public transportation services and ridership, 
describes and analyzes the consistency of predicted and actual benefits 
and costs of the innovative project development and delivery or 
innovative financing, and identifies reasons for any differences 
between the predicted and actual outcomes. The law requires the project 
sponsor to submit the Before and After Study Report to FTA not later 
than two years after the initiation of revenue service of the project.
    All projects that receive a grant through the Pilot Program are 
expected to be constructed and enter revenue service. Therefore, 
Section 3005(b) specifies that a sponsor must repay all Federal funds 
plus interest and penalty charges if the project is not completed. This 
provision is intended to ensure that all Federal interest is protected 
if a public-private partnership fails to deliver a project.
    At present, $5 million has been appropriated by Congress in Fiscal 
Year 2016 and $20 million in Fiscal Year 2017 for the Pilot Program. 
The FY 2018 Consolidated Appropriations Act did not provide funding for 
the Pilot Program; and the President's FY 2019 budget proposal to 
Congress did not recommend any funding for the Pilot Program.
    If selected for the Pilot Program, project sponsors will be invited 
to propose alternative ways that FTA might satisfy the requirements 
established by law for Pilot projects. For example, FTA expects that it 
will be necessary to establish the cost, scope, and schedule for Pilot 
projects to a reasonable level of confidence, which could be 
accomplished in a number of ways, in particular to address the 
requirement in law for an expedited technical capacity review process 
for sponsors with successful past performance. Project sponsors 
selected for the Pilot Program may suggest alternate approaches to any 
aspect of the statutory evaluation process that the sponsor believes 
will save time and effort, while still assuring compliance with the 
Pilot Program requirements outlined in law. FTA is particularly 
interested in receiving expressions of interest from project sponsors 
who are considering pursuing Value Capture techniques as part of their 
innovative project financing arrangements.

3. Expression of Interest Submission Process

    Project sponsors must submit the required information by mail, 
email or facsimile by 11:59 p.m. EDT November 13, 2018, as specified in 
the DATES section of this Notice above. FTA reserves the right to 
request additional clarifying information from any and all project 
sponsors before making a selection to participate in the Pilot Program.
    Project sponsors wishing to participate in the Pilot Program must 
submit an expression of interest to FTA no longer than 10 pages in 
length including any supporting documentation. While there is no 
specific format that must be followed for the expression of interest, 
the narrative provided by the project sponsor to FTA should include the 
following information:
    a. A description of the proposed project that provides sufficient 
information to demonstrate its eligibility as a new fixed guideway 
capital project, small starts project, or core capacity improvement 
project as defined in Section 3005(b);
    b. The proposed project schedule and an outline of the proposed 
financing plan for the project, including the total amount of Federal 
funding being sought;
    c. A description of the public-private partnership included in the 
project;
    d. A description of the advisors providing guidance to the project 
sponsor on the terms and structure of the project that are independent 
from investors in the project;
    e. How the project sponsor intends to analyze the predicted and 
actual benefits and costs of the innovative project development and 
delivery methods or innovative financing for the eligible project in 
order to complete the Before and After Study required by Section 
3005(b);
    f. A certification that the project sponsor's existing public 
transportation system is in a state of good repair, or for core 
capacity improvement projects, a description of how the eligible 
project includes elements designed to aid the existing fixed guideway 
system in making substantial progress towards achieving a state of good 
repair;
    g. Documentation that the project has completed the steps required 
by the Metropolitan Planning process or the Statewide and Non-
Metropolitan Planning process, as applicable. Specifically, provide 
evidence that the

[[Page 46253]]

project is included in the approved Metropolitan Transportation Plan 
and Transportation Improvement Program or Statewide Transportation 
Improvement Program, or provide a schedule demonstrating the project 
will complete the process in the foreseeable future;
    h. Documentation that the project has completed the NEPA process or 
a schedule demonstrating the project will complete the NEPA process in 
the foreseeable future.

4. Candidate Project Evaluation and Selection

    FTA will evaluate the proposals to determine which proposed 
projects best meet the intent of Section 3005(b). FTA will work with 
the selected project sponsors to further define the steps in law 
required before a construction grant can be awarded under the program.

K. Jane Williams,
Acting Administrator.
[FR Doc. 2018-19860 Filed 9-11-18; 8:45 am]
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