[Federal Register Volume 63, Number 197 (Tuesday, October 13, 1998)]
[Rules and Regulations]
[Pages 54600-54610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27245]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 268

[FRA Docket No. FRA-98-4545]
RIN 2130-AB29


Magnetic Levitation Transportation Technology Deployment Program

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Interim final rule with request for comments.

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SUMMARY: The Transportation Equity Act for the 21st Century (TEA 21) 
adds a new section 322 to title 23 of the United States Code. Section 
322 provides a total of $55 million for Fiscal Years 1999 through 2001 
for transportation systems employing magnetic levitation (``Maglev''). 
Section 322 requires FRA to establish project selection criteria, to 
solicit applications for funding, to select one or more projects to 
receive financial assistance for preconstruction planning activities 
and, after completion of such activities, to select one of the projects 
to receive financial assistance for final design, engineering, and 
construction activities. Section 322 authorizes--but does not 
appropriate--additional Federal funds of $950 million for final design 
and construction of the most promising project. Section 322 provides 
that the portion of the project not covered by the funds provided under 
section 322 may be covered by any non-Federal funding sources--
including private (debt and/or equity), State, local, regional, and 
other public or public/private entities--as well as by Federally-
provided Surface Transportation Program, and Congestion Mitigation and 
Air Quality Improvement Program funds, and from other forms of 
financial assistance under TEA 21, such as loans and loan guarantees.
    This Interim Final Rule creates a new part to title 49 of the Code 
of Federal Regulations which establishes the regulations governing 
financial assistance under section 322, including the project selection 
criteria, and solicits applications for Maglev planning grants.

DATES: (1) This Interim Final Rule is effective October 13, 1998.
    (2) Written comments concerning this rule must be filed on or 
before November 12, 1998.
    (3) Applications for financial assistance for preconstruction 
planning must be received by December 31, 1998.

ADDRESSES: Written comments should refer to the docket number of this 
notice

[[Page 54601]]

and be submitted in duplicate to: DOT Central Docket Management 
Facility located in room PL-401 at the Plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC 20590. All docket 
material will be available for inspection at this address and on the 
Internet at http://dms.dot.gov. Docket hours at the Nassif Building are 
Monday-Friday, 10 a.m. to 5 p.m., excluding Federal holidays. Those 
desiring notification of receipt of comments must include a self-
addressed, stamped envelope or postcard.
    Applications for preconstruction planning financial assistance must 
be submitted to FRA in accordance with the provisions of this Interim 
Final Rule.

FOR FURTHER INFORMATION CONTACT: Neil E. Moyer, Chief--Program 
Development Division, FRA, 400 Seventh Street, SW., Washington, DC 
20590 (telephone 202-493-6365; E-mail address: Neil.M[email protected]), 
or Gareth Rosenau, Attorney, Office of Chief Counsel, FRA, 400 Seventh 
Street, S.W., Mailstop 10, Washington, D.C. 20590 (telephone 202-493-
6054; E-mail address: Gareth.R[email protected]).

SUPPLEMENTARY INFORMATION:

Electronic Access

    Internet users can access all comments received by the U.S. DOT 
Dockets, Room PL-401, by using the universal resource locator (URL):
http://dms.dot.gov. It is available 24 hours each day, 365 days each 
year. Please follow the instructions online for more information and 
help.
    An electronic copy of this document may be downloaded using a modem 
and suitable communication software from the Government Printing Office 
Electronic Bulletin Board Service at (202) 512-1661. Internet users may 
reach the Federal Register's home page at: http://www.nara.gov/fedreg 
and the Government Printing Office's database at: http://
www.access.gpo.gov/nara.

What Is Maglev?

    This background information covers high-speed Maglev (240 mph) and 
does not necessarily apply to the low-speed variations on this 
technology, which are covered by a separate program under 23 U.S.C. 
322(i).
    Maglev is an advanced transport technology in which magnetic forces 
lift, propel, and guide a vehicle over a specially designed guideway. 
Utilizing state-of-the art electric power and control systems, this 
configuration reduces the need for many mechanical parts, thereby 
minimizing resistance and permitting excellent acceleration, with 
cruising speeds on the order of 240 mph or more. This high performance 
would enable Maglev to provide air-competitive trip times at longer 
trip distances than other high-speed ground transportation (HSGT) 
options. Germany has a Maglev technology ready for commercial use and 
planned for application in the Berlin-Hamburg corridor; Japan has a 
technologically different system under test. In the more than three 
decades since passage of the HSGT Act of 1965, a number of Maglev 
system concepts have undergone varying degrees of research and 
development in the United States, under private or governmental 
auspices. There are no Maglev systems currently operating in commercial 
transportation service.

Maglev Deployment Program Under 23 U.S.C. 322

Multi-Stage Competition

    Section 1218(a) of TEA 21, Pub. L.105-178, adds a new section 322 
to title 23 of the United States Code. Section 322 authorizes the 
funding for the design, construction, and deployment of one full-scale 
revenue-service Maglev system, to be sponsored by a State or group of 
States in a private/public partnership. Section 322 bases the selection 
of the system to be deployed on a multi-stage competition. Initially 
FRA is to establish selection criteria and to solicit applications, 
within 180 days after the enactment of TEA 21 (which would be by 
December 6, 1998), for financial assistance for preconstruction 
planning activities. FRA may select one or more projects of those 
submitted to receive funding for such activities. After the completion 
of the preconstruction planning activities, FRA will select one of the 
projects to receive financial assistance for final design, engineering, 
and construction activities. Any decision to proceed with possible 
construction of the project selected after the preconstruction planning 
phase of the program will be contingent upon the receipt of 
appropriations, and upon completion of appropriate environmental 
documentation. The section 322 program, which is described in greater 
detail below, will be referred to as the ``Maglev Deployment Program.''
    This Interim Final Rule establishes the regulations governing 
financial assistance under the Maglev Deployment Program, including the 
project selection criteria, and solicits applications for Maglev 
planning grants.

Federal Funding of the Maglev Deployment Program

    Section 322 provides two types of funding from the Highway Trust 
Fund for the Maglev Deployment Program; for purposes of this Interim 
Final Rule, these funds are referred to as ``Federal Maglev Funds.'' 
First, $55 million has been made available as contract authority for 
Fiscal Years 1999 through 2001; this would be used to fund the 
competition in all its phases and could also be used for final design, 
engineering, and construction activities of the selected project. Of 
the $55 million, the Congress has made available up to $15 million for 
Fiscal Year 1999, up to $15 million for Fiscal Year 2000, and $25 
million for Fiscal Year 2001. Second, $950 million has been authorized 
to be appropriated for Fiscal Years 2000 through 2003. No guarantee 
exists that the Executive Branch will request, or that Congress will 
appropriate, the $950 million (or any portion of that amount) to build 
a Maglev project. Of the $950 million, $200 million is authorized to be 
appropriated for each of Fiscal Years 2000 and 2001, $250 million for 
Fiscal Year 2002, and $300 million for Fiscal Year 2003.
    Section 322 also provides that the portion of the project not 
covered by Federal Maglev Funds may be supported by any non-Federal 
funding sources--including private (debt and/or equity), State, local, 
regional, and other public or public/private entities--as well as by 
Federally-provided Surface Transportation Program (``STP'') (23 U.S.C. 
133), and Congestion Mitigation and Air Quality Improvement Program 
(``CMAQ'') (23 U.S.C. 149) funds, and by other forms of financial 
assistance provided under title 23, or under TEA 21, such as loans and 
loan guarantees.

Standards a Maglev Project Must Meet To Be Eligible for Financial 
Assistance

    Section 322 provides that in order to be eligible to receive 
financial assistance, a Maglev project shall:
    (1) Involve a segment or segments of a high-speed ground 
transportation corridor that exhibit partnership potential;
    (2) Require an amount of Federal funds for project financing that 
will not exceed the sum of Federal Maglev Funds, and the amounts made 
available by States under STP and CMAQ;
    (3) Result in an operating transportation facility that provides a 
revenue producing service;
    (4) Be undertaken through a public and private partnership, with at 
least \1/3\ of full project costs paid using non-

[[Page 54602]]

Federal funds--funds provided under STP and CMAQ qualify as non-Federal 
fund for purposes of the \1/3\ match requirement;
    (5) Satisfy applicable statewide and metropolitan planning 
requirements;
    (6) Be approved by FRA based on an application submitted by a State 
or authority designated by 1 or more States;
    (7) To the extent that non-United States Maglev technology is used 
within the United States, be carried out as a technology transfer 
project; and
    (8) Be carried out using materials at least 70 percent of which are 
manufactured in the United States.
    The Interim Final Rule explains these requirements in more detail.
    FRA recognizes that applicants for preconstruction planning 
assistance will not have detailed information with respect to these 
requirements, and that the purpose of the preconstruction planning 
assistance is to develop much of this information with respect to a 
particular Maglev project. The preconstruction planning application 
requirements of the Interim Final Rule are designed to elicit whatever 
information an applicant may have pertaining to these requirements and 
to secure a commitment from the applicant that the applicant fully 
intends to comply with these requirements if the project is selected as 
the project to receive financing for final design, engineering, and 
construction activities.

Maglev Project Selection Criteria

    Section 322 requires the agency to establish criteria for selecting 
which eligible projects will receive financial assistance. The criteria 
are required to include the extent to which--
    (1) A project is nationally significant, including the extent to 
which the project will demonstrate the feasibility of deployment of 
Maglev technology throughout the United States;
    (2) Timely implementation of the project will reduce congestion in 
other modes of transportation and reduce the need for additional 
highway or airport construction;
    (3) States, regions, and localities financially contribute to the 
project; implementation of the project will create new jobs in 
traditional and emerging industries;
    (4) The project will augment Maglev networks identified as having 
partnership potential;
    (5) Financial assistance will foster public and private 
partnerships for infrastructure development and attract private debt or 
equity investment;
    (6) Financial assistance would foster the timely implementation of 
a project; and
    (7) Life-cycle costs in design and engineering are considered and 
enhanced.
    The Interim Final Rule establishes the criteria FRA will use in 
selecting projects to receive funding; these criteria are an 
elaboration of the list of requirements contained in section 322.
    FRA recognizes that applicants for preconstruction planning 
assistance may not have detailed information with respect to each of 
these criteria, and that the purpose of the preconstruction planning 
assistance is to develop much of this information with respect to a 
particular Maglev project. The preconstruction planning application 
requirements of the Interim Final Rule are designed to elicit whatever 
information an applicant may have pertaining to these criteria. As 
previously noted, FRA will select one of the various Maglev projects 
that receives preconstruction planning grants to receive financing for 
final design, engineering, and construction activities. The project 
selected must meet all of the project eligibility standards contained 
in this Interim Final Rule. If more than one project meets these 
standards, FRA will evaluate and compare the eligible projects 
according to the project selection criteria.

Eligible Project Costs

    Section 322 provides that the following project costs are eligible 
to be paid with Federal Maglev Funds made available under section 322: 
preconstruction planning activities and the capital cost of the fixed 
guideway infrastructure of a Maglev project, including land, piers, 
guideways, propulsion equipment and other components attached to 
guideways, power distribution facilities (including substations), 
control and communications facilities, access roads, and storage, 
repair and maintenance facilities. The costs of stations, vehicles, and 
equipment are not eligible project costs.
    Preconstruction planning activities that are eligible to be funded 
under section 322 include:
    (1) Preparation of such feasibility studies, major investment 
studies, and environmental impact statements and assessments as are 
required under State law;
    (2) Pricing of the final design, engineering, and construction 
activities proposed to be assisted; and
    (3) Such other activities as are necessary to provide FRA with 
sufficient information to evaluate whether a project should receive 
financial assistance for final design, engineering, and construction 
activities.

Construction Contracts Must Comply With the Davis Bacon Act

    Section 322 requires that the ``Prevailing Wages'' requirement of 
the Davis Bacon Act (40 U.S.C. 276a--276a-5) applies to construction 
contracts under the Maglev Deployment Program.

FRA's Outreach Efforts Regarding the Maglev Deployment Program

    FRA is conducting an extensive outreach program to inform the 
public of the availability of funding of new and expanded programs 
under TEA 21, including the Maglev Deployment Program. Based on 
discussions to date, FRA believes that fewer than 10 States are likely 
to apply for financial assistance under the Maglev Deployment Program.

Initial Outreach Session

    On July 23, 1998, FRA, in cooperation with the High Speed Ground 
Transportation Association and Amtrak, held an all day meeting to 
explain the TEA 21 rail-related programs to representatives of 
constituent interest groups at Union Station, Washington D.C. Included 
was a session on the Maglev Deployment Program. In conjunction with 
this meeting FRA made available to all participants a loose leaf 
notebook with information regarding each of the new programs. The 
Maglev information included an earlier draft of the substance of this 
rule, in the form of guidelines for applicants for planning grants, a 
``fact sheet'' on the program, and the statutory language behind it. 
The guidelines were also published on FRA's internet web page. Part of 
the Maglev session included a question and answer period involving a 
number of interested persons attending the meeting. Attendance was 
about 65.

``Piggybacking'' on Other DOT Outreach Meetings

    Other DOT components are having similar outreach meetings on parts 
of TEA 21 of particular interest to them; examples are an early Federal 
Highway Administration-sponsored meeting with representatives of most 
State DOTs in Dallas, and a recent Federal Transit Administration-
sponsored meeting in Harrisburg. FRA has been represented at these 
meetings and has briefly described the Maglev Deployment Program.

Three Other Outreach Sessions

    FRA has scheduled two other meetings similar to the Union Station 
meeting described above. They will

[[Page 54603]]

each have similar Maglev components, including publication of the 
Interim Final Rule. The first will be held in Los Angeles on October 
23. Another, session is planned to be held in New Orleans. In October, 
1998, FRA also plans to schedule at least one meeting specifically 
addressing the Maglev Deployment Program and inviting the general 
public as well as States known to have a particular interest and which 
are likely to apply for financial assistance. This session will include 
a focused question and answer period intended to clarify for all 
concerned any issues associated with the Interim Final Rule.

Why FRA Is Issuing an Interim Final Rule

    This document is published as an Interim Final Rule, without prior 
notice and opportunity for comment. Because this regulation relates to 
a grant program, the requirements of the Administrative Procedure Act 
(APA), 5 U.S.C. 553, are not applicable. Moreover, even if the notice 
and comment provisions of the APA did apply, the agency believes that 
there is good cause for finding that providing notice and comment in 
connection with this rulemaking action is impracticable, unnecessary, 
and contrary to the public interest.
    FRA's decision to proceed with an Interim Final Rule in this 
proceeding rather than a notice of proposed rulemaking was guided by 
several considerations. First, the enabling legislation requires the 
Secretary to solicit applications from States or authorities designated 
by one or more States within 180 days after the date of enactment of 
TEA 21 (June 9, 1998). This time constraint simply did not provide 
sufficient time for FRA to frame an approach to implementing the 
program, develop proposed implementing regulations, consult with 
interested groups, and publish draft and final regulations by December 
6, 1998 (180 days after enactment). The development of appropriate 
implementing procedures was further complicated by Congressional 
consideration of TEA 21 technical corrections legislation that was 
ultimately adopted on July 22, 1998 (Pub. L. 105-206). The technical 
corrections legislation contained modifications to a number of TEA 21 
programs, including the Maglev Deployment Program. FRA's decision to 
proceed with an Interim Final Rule was also bolstered by an extensive 
outreach conducted with the interested Maglev and state transportation 
communities. States officials and others with an interest in Maglev 
development had an opportunity to receive briefings from agency 
officials and to review and comment on FRA's proposed approach to the 
application and award processes before FRA completed this Interim Final 
Rule.
    In addition, States need the information contained in this Interim 
Final Rule immediately in order to determine what type of Maglev 
projects qualify for preconstruction planning assistance, to gather 
supporting information, and to begin to prepare applications 
immediately upon this Interim Final Rule's publication in the Federal 
Register. For all of these reasons, pursuant to 5 U.S.C. 808 (Pub. L. 
104-121) (The Congressional review provisions of the Small Business 
Regulatory Enforcement Fairness Act), the agency also, for good cause, 
finds that notice and public procedure are impracticable, unnecessary, 
and contrary to the public interest, and, therefore, this Interim Final 
Rule can be made effective upon publication.
    As an Interim Final Rule, this regulation is fully in effect and 
binding upon its effective date. No further regulatory action by the 
agency is necessary to make the rule effective. However, in order to 
benefit from comments which interested parties and the public may have, 
the agency is requesting that comments be submitted to the docket for 
this rule. All comments submitted in response to this Interim Final 
Rule, will be considered by the agency. Following the close of the 
comment period, the agency will publish a document responding to the 
comments and, if appropriate, the agency will amend the provisions of 
this Interim Final Rule.

Section-by-Section Analysis

Subpart A--Overview

Section 268.1  Definitions
    The terms used in this part are defined; many of these definitions 
are taken from 23 U.S.C. 322.
Section 268.3  Different Phases of the Maglev Deployment Program
    This section identifies the five different phases of this program, 
and FRA's projected timetable for implementing these phases. In Phase 
I, States will submit applications, and FRA will select projects for 
preconstruction planning assistance. In Phase II, financial assistance 
recipients will prepare and submit to FRA project descriptions and 
supporting preconstruction planning reports and environmental 
documentation (environmental assessment (EA)). After completion of the 
EA, each financial assistance recipient will initiate activities aimed 
at preparing a site-specific draft environmental impact statement 
(``EIS''). In Phase III, FRA will select the one project which could 
ultimately be constructed, subject to appropriation of funds to cover 
such construction. Each recipient of financial assistance will be 
expected to continue to work on the site-specific draft EIS in Phase 
III. In Phase IV, the financial assistance recipient selected in Phase 
III will undertake final design and engineering work for the selected 
project together with completing the site-specific final EIS. Detailed 
agreements for the construction and operation of the project would be 
negotiated. The other planning grant recipients may also elect to 
continue their work on preparing a site-specific draft EIS and bring it 
to completion. In Phase V, the sponsoring State or State designated 
authority would oversee the efforts of the public/private partnership 
formed to progress the selected project, to complete the detailed 
engineering designs, finance, construct, equip, and operate the project 
in revenue service.
Section 268.5  Funding Sources for the Maglev Deployment Program
    This section identifies the amounts of funding available under 23 
U.S.C. 322 (referred to as ``Federal Maglev Funds'') to support the 
program. It also identifies other potential Federal funding sources. 
These various funding sources were outlined earlier in this document.
Section 268.7  Federal/State Share and Restrictions on the Uses of 
Federal Maglev Funds
    This section contains the various restrictions imposed on the use 
of Federal Maglev Funds. First, Federal Maglev Funds may only be used 
for ``eligible project cost.'' Eligible project costs include 
preconstruction planning activities and the capital costs of fixed 
guideway infrastructure of a Maglev project. Eligible project costs do 
not include costs incurred for Maglev stations, vehicles, and 
equipment; these non-eligible project costs would be part of the full 
project cost.
    Second, the Federal share of full project costs shall be not more 
than \2/3\, with the remaining \1/3\ paid by the applicant using non-
Federal funds. For purposes of this cost sharing arrangement, funds 
made available to the applicant under STP and CMAQ count as non-Federal 
funds. Federal funds made available to the applicant under title 23 and 
TEA 21 can be used to pay full project cost. To ensure that the cost 
sharing requirements are met,

[[Page 54604]]

all preconstruction planning grants will require States or designated 
authorities to provide a match of at least \1/3\ from non-Federal 
funds.
    Third, Federal Maglev funds provided under a preconstruction 
planning grant may be used only for Phase II activities, and for 
completion of a site-specific draft EIS; see Sec. 268.3;
    Finally, the ``prevailing wages'' requirement of the Davis Bacon 
Act (40 U.S.C. 276a--276a-5) applies to any construction contracts 
under the Maglev Deployment Program.

Subpart B--Procedures For Financial Assistance

Section 268.9  Eligible Participants
    Any State, or any authority designated by one or more State(s) to 
carry out the preconstruction planning activities under the Maglev 
Deployment Program, is eligible to participate in the Maglev Deployment 
Program.
Section 268.11  Project Eligibility Standards
    This section identifies the standards which projects must meet to 
be eligible for funding under the Maglev Deployment Program. See the 
earlier discussion of project eligibility standards; there FRA set out 
the eight project eligibility standards contained in 23 U.S.C. 322. FRA 
recognizes that applicants for preconstruction planning assistance will 
not have detailed information with respect to the eight standards, and 
that the purpose of the preconstruction planning assistance is to 
develop much of this information with respect to a particular Maglev 
project. The preconstruction planning application requirements of the 
Interim Final Rule are designed to elicit whatever information an 
applicant may have pertaining to these requirements and to secure a 
commitment from the applicant that the applicant fully intends to 
comply with these requirements if the project is selected as the 
project to receive financing for final design, engineering, and 
construction activities.
    FRA has described section 322 standards in more detail for purposes 
of eligibility for final design, engineering, and construction 
financing. These standards, and the reference to corresponding citation 
in section 322, are as follows:
    Purpose and Significance of the Project. (1) The project 
description shall point to a Maglev facility and daily operation the 
primary purpose of which is the conduct of a revenue-producing 
passenger transportation service between distinct points, rather than a 
service solely for the passengers' riding pleasure. (subsection 
322(d)(3), ``result in an operating transportation facility that 
provides a revenue producing service.'')
    (2) The project description shall incorporate scheduled operation 
at a top speed of not less than 240 mph. (subsection 322(a)(3), 
definition of Maglev as ``capable of safe use by the public at a speed 
in excess of 240 mph.'')
    Benefits for the American Economy. The project description shall 
include a certification as to (1) and (2) below and, as appropriate, a 
technology acquisition/transfer plan which describes the strategy for 
their accomplishment.
    (1) Processes will be established that will enable an American-
owned and -sited firm (or firms) to gain, in the course of the project, 
the capability to participate in the design, manufacture, and 
installation of the facilities and vehicles needed for a Maglev 
operation, if the owner of the selected version of Maglev technology is 
not an American owned and -sited firm (thus meeting the technology 
transfer requirement of Section 322). (subsection 322(d)(7))
    (2) The 70 percent U.S. content provision of Section 322 
(subsection 322(d)(8)) will be carried out.
    Partnership Potential. The project shall exhibit partnership 
potential by satisfying all three items (1), (2), and (3) below.
    (1) A private/public partnership must be in place that is ready, 
willing, and able to finance, construct, operate, and maintain the 
project; and
    (2) The private/public partnership either owns the version of 
Maglev technology proposed to be implemented in the project, or has an 
agreement with the owner which affords full cooperation to the 
partnership in progressing the project, including implementation of the 
technology acquisition/transfer plan if applicable; and
    (3) The recipient of a preconstruction planning grant or the FRA 
has developed and endorsed a projection of system capital costs, 
demand, revenues, operating expenses, and total costs and benefits, 
that--
    (A) Covers either the entire corridor in which the Maglev project 
is involved (``Corridor''), or the project considered independently;
    (B) Demonstrates that private enterprise would be able to run the 
Corridor or the project--once built and paid for--as a completely self-
sustaining entity, in which revenues will cover operating expenses and 
continuing investment needs; and
    (C) Shows total benefits equal to or exceeding total costs.
(subsection 322(d)(1), ``involve a segment or segments of a high-speed 
* * * transportation corridor that exhibit partnership potential.'' 
Under subsection 322(a)(4), Definitions, ``partnership potential'' is 
given the definition it received in the FRA report, High-Speed Ground 
Transportation for America, September 1997. This portion of the Interim 
Final Rule applies FRA's definition of ``partnership potential'' to the 
availability of funds for planning a Maglev program.)
    Funding Limits and Sources. The project description shall include a 
financing plan that demonstrates project completion with Federal Maglev 
Funds not in excess of the remaining funds from the total of $1,005 
million authorized in Section 322, and funds made available to the 
recipient under STP and CMAQ. At least \1/3\ of Full Project Costs must 
come from non-Federal funds; funds made available to the recipient 
under STP and CMAQ qualify as non-Federal funds for purposes of this 
cost-sharing requirement. Federal funds made available under title 23 
and TEA 21 may be used to pay for full project costs. (subsections 
322(b), (d)(2) and (4), and (h)(3) and (4))
    Project Management. The State, the technology owner, and all other 
relevant project partners must include in the Project Description an 
agreed upon--
    (1) Management plan that defines the partnership, responsibilities, 
and procedures for accomplishing the project;
    (2) Project schedule that shows how timely implementation of the 
project will be accomplished, including, to the extent possible, a 
construction plan and schedule; and
    (3) Financial plan that shows how funds will flow, in accordance 
with the other project eligibility standards.
(FRA considers effective project management, making use of the minimal 
tools specified in this provision, as essential to the fulfillment of, 
and therefore implicit in, the other project eligibility standards as 
called for in section 322.)
    Planning/Environmental Process. (1) Assessment of environmental 
consequences of the proposed project. Recipients of preconstruction 
planning grants shall prepare EAs and site-specific draft EISs.
    EAs shall include information to support the grantee's decision to 
pursue the proposed project. The grantee shall develop the information 
and discuss the environmental consequences of the proposed technology 
and route in

[[Page 54605]]

sufficient detail for the preparation of appropriate documentation by 
FRA to support selection of one project. This shall include the 
identification of potential positive and negative environmental effects 
resulting from the technology (e.g. energy consumption compared to 
other transportation options), generic noise emissions at various 
distances from the centerline of the guideway, changes in 
electromagnetic field levels at various distances from the centerline 
of the guideway, as well as environmental screening of the proposed 
route (e.g., identification of land use; identification of endangered 
species possibly present and location of their critical habitat; 
identification of navigable waterways, wetlands and other sensitive 
water resources; and identification of the location of parks, wildlife 
refuges, historic and archaeological sites of National, State or local 
significance and other sites protected by Section 4(f) of the 
Department of Transportation Act.). The latter information and analysis 
shall be submitted four months in advance of the remainder of the 
project description.
    Site-specific draft EISs will consist of all work necessary to 
support selection of a preferred alignment within the proposed corridor 
discussed in the EA. (subsection 322(d)(5))
    (2) The project description must also include letters of 
endorsement of project implementation from all the State departments of 
transportation involved, and from all Metropolitan Planning 
Organizations for metropolitan areas that would be served by the 
project.
Section 268.13  Deadline for Submission of Applications for 
Preconstruction Planning Assistance
    Applications for preconstruction planning assistance shall be 
submitted to the FRA Administrator by December 31, 1998. The section 
identifies the address to which the applications must be sent.
Section 268.15  Form and Contents of Applications for Preconstruction 
Planning Assistance
    This section identifies the information that must be contained in 
each application.
Section 268.17  Project Selection Criteria
    This section identifies the project selection criteria that FRA 
will apply in selecting projects for financing under the Maglev 
Deployment Program. These criteria are based on the seven factors 
contained in 23 U.S.C. 322, and discussed earlier in this document. 
These criteria, and the reference to corresponding citation in section 
322, are as follows.
    Purpose and Significance of the Project. (1) The degree to which 
the project description demonstrates attractiveness to travelers, as 
measured in passengers and passenger-miles. (subsection 322(e)(1))
    (2) The extent to which implementation of the project will reduce 
congestion, and attendant delay costs, in other modes of 
transportation; will reduce emissions and/or energy consumption; or 
will reduce the rate of growth in needs for additional highway or 
airport construction. Measures for this criterion will include but not 
be limited to the present value of congestion reduction, pollution 
reduction, and/or facility cost-avoidance benefits. (subsection 
322(e)(2))
    (3) The degree to which the project will demonstrate the variety of 
operating conditions which are to be expected in the United States. 
(subsection 322(e)(1))
    (4) The degree to which the project will augment a Maglev corridor 
or network that has been identified, by any State, group of States, or 
the FRA, as having partnership potential. (subsection 322(e)(5))
    Timely Implementation. The speed with which the project can 
realistically be brought into full revenue service, based on the 
project description and on the current and projected development status 
of the Maglev technology selected by the applicant for the project. 
(The text of section 322 twice explicitly assumes ``timely 
implementation of the project'' (in subsections 322(e)(2) and (7)), and 
the stringent deadlines established in subsections 322(c) and (f)(1), 
together with the five-year authorization schedule in subsection 
322(h)(1), reinforce the clear Congressional intent that the project 
shall be implemented in a timely manner.)
    Benefits for the American Economy. The extent to which the project 
is expected to create new jobs in traditional and emerging industries 
in the United States. (subsection 3322(e)(4))
    Partnership Potential. The degree to which the project description 
demonstrates partnership potential for the corridor in which it is 
involved, and/or for the project independently. (subsection 322(e)(2), 
(3), (5), (6), and (8))
    Funding Limits and Sources. (1) The extent and proportion to which 
States, regions, and localities commit to financially contributing to 
the project, both in terms of their own locally-raised, entirely non-
Federal funds, and in terms of commitments of scarce Federal resources 
from non-Federal Maglev funds (subsection 322(e)(3)); and
    (2) The extent and proportion to which the private sector 
contributes financially to the project. (subsection 322(e)(6))
    FRA did not set forth criteria dealing with project management and 
planning dealing with the environmental process. Commenters are 
requested to address whether criteria in these two or additional areas 
are needed and, if so, to provide detailed suggestions as to how such 
criteria should be worded.
Section 268.19  Evaluation of Applications for Preconstruction Planning 
Assistance
    This section identifies the criteria to be used by FRA in 
evaluating the applications. FRA will evaluate the applications for 
their completeness and responsiveness to the requirements listed in 
Sec. 268.15 (form and content of application). The project eligibility 
standards (Sec. 268.11) and project evaluation criteria (Sec. 268.17) 
will guide the FRA's review of the project descriptions produced under 
the planning grants. Although subject to revision, the information in 
Sec. 268.11 and Sec. 268.17 should assist the States in completing 
their applications in the competition for planning grants, since the 
project descriptions will need to respond to the standards and 
criteria. In evaluating the applications for planning grants FRA will 
consider how consistent the applicant's project is to the standards and 
criteria and the application's likelihood of leading to a project that 
meets all the standards and criteria.
Section 268.21  Selection of one Maglev Project for Final Design, 
Engineering and Construction Funding
    This section is a brief description of the process FRA will follow 
in selecting the one successful applicant for a construction assistance 
from among the recipients of planning grants. That one project must 
meet each and every project eligibility standard contained in 
Sec. 268.11(b). If more than one project meets all these standards, 
then the FRA will evaluate and compare the eligible projects according 
to the set of project selection criteria contained in Sec. 268.17. In 
reviewing competing projects under the project eligibility standards 
and project selection criteria, the FRA will exercise particular 
vigilance regarding the following elements of the preconstruction 
planning process, although not to the exclusion of others:

[[Page 54606]]

    (1) The credibility of the demand and revenue forecasts, cost 
estimates, and benefit/cost comparisons; and
    (2) The credibility of the financial plan.

Regulatory Analyses and Notices

E.O. 12866 and DOT Regulatory Policies and Procedures

    The agency has evaluated this Interim Final Rule in accordance with 
existing regulatory policies and procedures and has concluded that it 
is a nonsignificant regulatory action under E.O. 12866, and a 
nonsignificant rule under section 5(a)(4) of the DOT Regulatory 
Policies and Procedures (44 FR 11034, February 26, 1979). The Interim 
Final Rule is not a significant regulatory action under E.O. 12866 
because it will not have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; will not create a serious inconsistency 
with an action planned or underway by another Federal agency; will not 
materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; and will not raise novel legal or policy issues arising out of 
legal mandates, the President's priorities, or the principles of the 
Executive Order. The Interim Final Rule implements the preconstruction 
planning portion of a Congressionally mandated program to provide 
financial assistance to state and local governments in developing and 
implementing a transportation project involving magnetic levitation. At 
this time, the sum of $55 million dollars is available to implement the 
program and an authorization for future appropriations totaling $950 
million is in place. However, as noted earlier, the availability of 
these additional funds is contingent on an appropriation by the 
Congress.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) 
requires a review of rules to assess their impact on small entities. 
FRA certifies that this rule will not have a significant impact on a 
substantial number of small entities. Eligible applicants for the 
Maglev Deployment Program are limited by the enabling statute (23 
U.S.C. 322(d)) to States or authorities designated by one or more 
States. The program implemented by the Interim Final Rule has the 
potential to benefit some small entities who may be able to participate 
as consultants to States or designated authorities in the 
preconstruction planning activities, final design, engineering and 
construction activities for Maglev deployment.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) addresses the 
collection of information by the Federal government from individuals, 
small businesses and State and local government and seeks to minimize 
the burdens such information collection requirements might impose. A 
collection of information includes requiring answers to identical 
questions posed to, or identical reporting or record-keeping 
requirements imposed on, ten or more persons, other than agencies, 
instrumentalities or employees of the United States. This Interim Final 
Rule contains information and reporting requirements that would apply 
to States, groups of States or designated authorities that file 
applications for Federal funding for preconstruction planning 
activities, and to grant recipients who would conduct final design, 
engineering and construction activities in support of Maglev 
deployment. Based on FRA's long experience in Maglev development in the 
United States extending back to the early 1970's, including preparation 
and issuance of the 1997 report ``High Speed Ground Transportation for 
America,'' the statutory limit on the types of entities that may apply 
for funding (States, groups of States, and State designated 
authorities), the rigorous requirements for developing a viable 
project, and the substantial financial and resource commitment that 
will be required of applicants, and the information FRA has received 
through its outreach efforts, the FRA has concluded that fewer than 10 
applications for preconstruction planning funds are likely to be 
received by the FRA from qualified applicants. However, if, as a result 
of this Interim Final Rule, FRA becomes aware that there are 
information collection requirements, FRA will submit an information 
collection package to OMB for approval at that time.

Environmental Impact

    FRA has evaluated these regulations in accordance with its 
procedures for ensuring full consideration of the potential 
environmental impacts of FRA actions, as required by the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.) and related 
directives. FRA has concluded that the issuance of this Interim Final 
Rule, which establishes a process for receiving applications for 
planning activities associated with the Maglev Deployment Program, does 
not have a potential impact on the environment and does not constitute 
a major Federal action requiring an environmental assessment or 
environmental impact statement. The Interim Final Rule includes 
requirements for the preparation of environmental assessments of 
proposed Maglev projects by successful applicants during the 
preconstruction planning stage and additional environmental reviews 
will be undertaken under the auspices of the FRA before one Maglev 
project is selected for final design and construction funding.

Federalism Implications

    This Interim Final Rule has been analyzed in accordance with the 
principles and criteria contained in Executive Order 12612, and FRA has 
determined that it does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The Maglev 
Deployment Program provides states with the opportunity to explore the 
development of a new transportation technology in a working partnership 
with the Federal Government.

List of Subjects in 49 CFR Part 268

    Grant programs-transportation, High speed ground transportation, 
Maglev, Magnetic levitation.

The Rule

    In consideration of the foregoing, FRA adds new part 268 to Title 
49 of the Code of Federal Regulations as set forth below:

PART 268--MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY DEPLOYMENT 
PROGRAM

Subpart A--Overview

Sec.
268.1  Definitions.
Sec 268.3  Different phases of the Maglev Deployment Program.
Sec 268.5  Federal funding sources for the Maglev Deployment 
Program.
268.7  Federal/State share and restrictions on the uses of Federal 
Maglev Funds.

Subpart B--Procedures For Financial Assistance

268.9  Eligible participants.
268.11  Project eligibility standards.
268.13  Deadline for submission of applications for preconstruction 
planning assistance.
268.15  Form and contents of applications for preconstruction 
planning assistance.
268.17  Project selection criteria.
268.19  Evaluation of applications for preconstruction planning 
assistance.

[[Page 54607]]

268.21  Selection of one Maglev project for final design, 
engineering, and construction funding.

    Authority: 49 U.S.C. 322, 23 U.S.C. 322; 49 CFR 1.49.

Subpart A--Overview


Sec. 268.1  Definitions.

    As used in this part--
    CMAQ means Congestion Mitigation and Air Quality Improvement 
Program (23 U.S.C. 149).
    Environmental assessment (``EA'') means the environmental 
assessment in support of the project description and containing the 
information listed in Sec. 268.11(b)(6)(i).
    Environmental impact statement (``EIS'') means the environmental 
impact statement which is required pursuant to Secs. 268.3 and 
Sec. 268.11(b)(6)(i).
    Eligible project costs means the costs of preconstruction planning 
activities and the capital cost of the fixed guideway infrastructure of 
a Maglev project, including land, piers, guideways, propulsion 
equipment and other components attached to guideways, power 
distribution facilities (including substations), control and 
communications facilities, access roads, and storage, repair, and 
maintenance facilities, but eligible project costs do not include the 
cost of stations, vehicles, and equipment.
    Federal Maglev Funds means such funds as are provided under the 
authority of 23 U.S.C. 322 to pay for Eligible Project Costs.
    Full project costs means the total capital costs of a Maglev 
project, including Eligible Project Costs and the costs of stations, 
vehicles, and equipment.
    Phase means one of the five different phases of the Maglev 
Deployment Program; these phases are described in Sec. 268.3.
    Maglev means transportation systems employing magnetic levitation 
that would be capable of safe use by the public at a speed in excess of 
240 miles per hour.
    Maglev deployment program means the program authorized by 23 U.S.C. 
322.
    Partnership potential means the usage of the term in the commercial 
feasibility study of high-speed ground transportation (High Speed 
Ground Transportation for America) mandated under section 1036 of the 
Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 
1978). Under that usage any corridor exhibiting Partnership Potential 
must at least meet the following two conditions:
    (1) Private enterprise must be able to run on the corridor--once 
built and paid for--as a completely self-sustaining entity; and
    (2) The total benefits of a Maglev corridor must equal or exceed 
its total costs.
    STP means the Surface Transportation Program (23 U.S.C. 133).
    TEA 21 means the Transportation Equity Act for the 21st Century 
(Pub. L. 105-178).


Sec. 268.3  Different phases of the Maglev Deployment Program.

    (a) The Maglev Deployment Program includes five phases, as 
described in paragraphs (b) through (f) of this section. The current 
projected timing for implementing these phases is indicated to assist 
applicants in planning their projects. All dates beyond the first date 
(the deadline for the submission of preconstruction planning 
applications) are for planning purposes only and are subject to 
change--including possible acceleration of deadlines--based on the 
progress of the Maglev Deployment Program; grantees will be notified 
accordingly.
    (b) Phase I--Competition for Planning Grants (Early October 1998-
March 31, 1999)--(1) Description. In Phase I, States will apply for 
funds for preconstruction planning activities. As required by 
Sec. 268.13, applications must be filed with FRA by December 31, 1998. 
FRA will select one or more projects to receive preconstruction 
planning financial assistance awarded under this part to perform Phase 
II of the Maglev Deployment Program.
    (2) Timing of Major Milestones.
    (i) December 31, 1998--Planning grant applications due.
    (ii) February 28, 1999--FRA selects grantees for planning grants.
    (iii) March 31, 1999--FRA awards planning grants for the conduct of 
activities listed in Phase II.
    (c) Phase II--Project Description Development (April 1, 1999-March 
31, 2000)--(1) Description. In Phase II, each grant recipients will 
prepare and submit to FRA a project description and supporting 
preconstruction planning reports and an EA. Supporting reports may 
include demand and revenue analyses, project specification, cost 
estimates, scheduling, financial studies, and other information in 
support of the project description. FRA will use this information in 
reaching a decision on which project to select for final engineering 
and construction financing. In addition, after completion of the EA, 
each grant recipient will initiate activities aimed at preparing a 
site-specific draft EIS. FRA will initiate documentation of 
environmental factors considered in the project selection process.
    (2) Timing of Major Milestones.
    (i) November 30, 1999--Deadline for submission of appropriate EA 
needed by FRA for the selection of one project under Phase III.
    (ii) March 30, 2000--Deadline for submission of project 
descriptions and any related supporting reports needed by FRA for 
project selection.
    (d) Phase III--Project Selection Process (April 1, 2000)--July 31, 
2000)--(1) Description. FRA will evaluate the information provided by 
the grant recipients under Phase II and will select one project for 
final design, engineering, and construction funding. Recipients of 
assistance will progress work on site-specific EISs.
    (2) Timing of Major Milestones. July 31, 2000--FRA selects the 
project.
    (e) Phase IV--Project Development and Completion of Site-specific 
EIS (August 1, 2000--July 31, 2001)--(1) Description. The financial 
assistance recipient selected in Phase III will undertake final design 
and engineering work for the selected project together with completing 
the site-specific final EIS. Detailed agreements for the construction 
and operation of the project would be negotiated. The other grant 
recipients may also elect to complete the site-specific draft EISs 
initiated during Phase II.
    (2) Timing of Major Milestones. July 31, 2001--Final Record of 
Decision on site-specific EIS, confirming the project design.
    (f) Phase V--Completion of Detailed Engineering & Construction 
(August 1, 2001 and beyond).--(1) Description. In Phase V, the 
sponsoring State or State designated authority would oversee the 
efforts of the public/private partnership formed to progress the 
selected project, to complete the detailed engineering designs, 
finance, construct, equip, and operate the project in revenue service. 
Construction would likely be contingent on the appropriation of federal 
funds.


Sec. 268.5  Federal funding sources for the Maglev Deployment Program.

    (a) Federal Maglev Funds. Section 322 of Title 23 provides for the 
following funds for the Maglev Deployment Program:
    (1) Contract authority. Fifty-five million has been made available 
for the Maglev Deployment Program as contract authority from the 
Highway Trust Fund for Fiscal Years 1999 through 2001; this would be 
used to fund the competition in all its phases and could also be used 
for final design, engineering, and construction activities of the 
selected

[[Page 54608]]

project. Of the $55 million, the Congress has made available up to $15 
million for Fiscal Year 1999, up to $15 million for Fiscal Year 2000, 
and $25 million for Fiscal Year 2001.
    (2) Authorization for appropriations. Nine hundred fifty million, 
also from the Highway Trust Fund, has been authorized to be 
appropriated for the Maglev Deployment Program for Fiscal Years 2000 
through 2003. Of the $950 million, $200 million is authorized to be 
appropriated for each of Fiscal Years 2000 and 2001, $250 million for 
Fiscal Year 2002, and $300 million for Fiscal Year 2003. Any decision 
to proceed with possible Federal funding of the construction of a 
Maglev system will be contingent upon the receipt of appropriations, 
and upon completion of appropriate environmental documentation.
    (b) Other Federal funds. Section 322 of Title 23 provides that the 
portion of the Maglev project not covered by Federal Maglev Funds may 
be covered by any non-Federal funding sources--including private (debt 
and/or equity), State, local, regional, and other public or public/
private entities--as well as by Federally-provided STP and CMAQ funds, 
and by other forms of financial assistance made available under title 
23 and TEA 21, such as loans and loan guarantees.


Sec. 268.7  Federal/State share and restrictions on the uses of Federal 
Maglev Funds.

    (a) Federal share. The Federal share of Full Projects Costs shall 
be not more than \2/3\, with the remaining \1/3\ paid by the grant 
recipient using non-Federal funds. Funds made available under STP and 
CMAQ are considered non-Federal funds for purposes of the matching 
requirement.
    (b) Restrictions on the uses of Federal Maglev Funds. (1) Federal 
Maglev Funds may be applied only to Eligible Project Costs;
    (2) Federal Maglev funds provided under a preconstruction planning 
grant may be used only for Phase II activities, and for completion of 
site-specific draft EIS; see Sec. 268.3;
    (3) Federal Maglev Funds may be used to pay for only \2/3\ of 
preconstruction planning costs; grant recipients are required to pay 
the remaining \1/3\ of the costs with non-Federal funds; and
    (4) The ``prevailing wages'' requirement of the Davis Bacon Act (40 
U.S.C. 276a-276a-5) applies to any construction contracts under the 
Maglev Deployment Program.

Subpart B--Procedures for Financial Assistance


Sec. 268.9  Eligible participants.

    Any State, or any authority designated by one or more State(s) to 
carry out the preconstruction planning activities under the Maglev 
Deployment Program is eligible to participate in the Maglev Deployment 
Program.


Sec. 268.11  Project eligibility standards.

    (a) Project eligibility standards for preconstruction planning 
financing. (1) As required by 23 U.S.C. 322(d)(4), in order to be 
eligible to receive financial assistance, a Maglev project shall:
    (i) Involve a segment or segments of a high-speed ground 
transportation corridor that exhibit Partnership Potential;
    (ii) Require an amount of Federal funds for project financing that 
will not exceed the sum of Federal Maglev Funds, and the amounts made 
available by States under STP and CMAQ;
    (iii) Result in an operating transportation facility that provides 
a revenue producing service;
    (iv) Be undertaken through a public and private partnership, with 
at least \1/3\ of Full Project Costs paid using non-Federal funds;
    (v) Satisfy applicable statewide and metropolitan planning 
requirements;
    (vi) Be approved by FRA based on an application submitted by a 
State or authority designated by 1 or more States;
    (vii) To the extent that non-United States Maglev technology is 
used within the United States, be carried out as a technology transfer 
project; and
    (viii) Be carried out using materials at least 70 percent of which 
are manufactured in the United States.
    (2) FRA recognizes that applicants for preconstruction planning 
grants will not have detailed information with respect to some of the 
requirements of paragraph (a)(1) of this section, and that the purpose 
of a preconstruction planning grant is to develop much of this 
information with respect to a particular Maglev project. As required by 
Sec. 268.15, an applicant will need to provide whatever information it 
has with respect to each of the requirements of paragraph (a)(1) of 
this section together with a certification that the applicant fully 
intends to comply with the requirements of paragraph (a) of this 
section should its project be selected by FRA for final design, 
engineering and construction financing.
    (b) Project eligibility standards for final design, engineering, 
and construction financing. FRA will select the most promising Maglev 
project for final design, engineering, and construction financing. To 
be eligible to be considered, the project must meet each of the 
following requirements; these requirements restate the requirements in 
paragraph (a)(1) of this section, but with more detail and in a 
different order:
    (1) Purpose and Significance of the Project. (i) The project 
description shall point to a Maglev facility and daily operation the 
primary purpose of which is the conduct of a revenue-producing 
passenger transportation service between distinct points, rather than a 
service solely for the passengers' riding pleasure.
    (ii) The project description shall incorporate scheduled operation 
at a top speed of not less than 240 mph.
    (2) Benefits for the American Economy. The project description 
shall include a certification as to paragraph (b)(2)(i) and (ii) of 
this section and, as appropriate, a technology acquisition/transfer 
plan which describes the strategy for their accomplishment.
    (i) Processes will be established that will enable an American-
owned and -sited firm (or firms) to gain, in the course of the project, 
the capability to participate in the design, manufacture, and 
installation of the facilities and vehicles needed for a Maglev 
operation, if the owner of the selected version of Maglev technology is 
not an American-owned and--sited firm (thus meeting the technology 
transfer requirement of 23 U.S.C. 322).
    (ii) The 70 percent U.S. content requirement content of 23 U.S.C. 
322 will be carried out.
    (3) Partnership Potential. The project shall exhibit Partnership 
Potential by satisfying the following:
    (i) A private/public partnership must be in place that is ready, 
willing, and able to finance, construct, operate, and maintain the 
project;
    (ii) The private/public partnership either owns the version of 
Maglev technology proposed to be implemented in the project, or has an 
agreement with the owner which affords full cooperation to the 
partnership in progressing the project, including implementation of the 
technology acquisition/transfer plan if applicable; and
    (iii) The recipient of a preconstruction planning grant or the FRA 
has developed and endorsed a projection of system capital costs, 
demand, revenues, operating expenses, and total costs and benefits, 
that:
    (A) Covers either the entire corridor in which the Maglev project 
is involved (``Corridor''), or the project considered independently;

[[Page 54609]]

    (B) Demonstrates that private enterprise would be able to run the 
Corridor or the project--once built and paid for--as a completely self-
sustaining entity, in which revenues will cover operating expenses and 
continuing investment needs; and
    (C) Shows total benefits equal to or exceeding total costs.
    (4) Funding Limits and Sources. The project description shall 
include a financing plan that demonstrates project completion with the 
$950 million in Federal Maglev Funds, funds remaining unobligated from 
the $55 million in contract authority, and the funds made available 
under STP and CMAQ. The project that is selected will be eligible for 
other forms of financial assistance provided under title 23 and TEA 21, 
including loans, loan guarantees, and lines of credit. However, at 
least \1/3\ of Full Project Costs must come from non-Federal Funds.
    (5) Project Management. The State, the technology owner, and all 
other relevant project partners must include in the project 
description, an agreed upon--
    (i) Management plan that defines the partnership, responsibilities, 
and procedures for accomplishing the project;
    (ii) Project schedule that shows how timely implementation of the 
project will be accomplished, including, to the extent possible, a 
construction plan and schedule; and
    (iii) Financial plan that shows how funds will flow, in accordance 
with the other requirements of this subsection.
    (6) Planning/Environmental Process. (i) Assessment of environmental 
consequences of the proposed project. Recipients of preconstruction 
planning grants shall conduct an EA in support of the project 
description; and will prepare a site-specific EIS for the project. The 
EA shall include information to support the grantee's decision to 
pursue the proposed project. The grantee shall develop the information 
and discuss the environmental consequences of the proposed technology 
and route in sufficient detail for the preparation of appropriate 
documentation by FRA to support selection of one project. This shall 
include: the identification of potential positive and negative 
environmental effects resulting from the technology (e.g. energy 
consumption compared to other transportation options); generic noise 
emissions at various distances from the centerline of the guideway; 
changes in electromagnetic field levels at various distances from the 
centerline of the guideway; and environmental screening of the proposed 
route (e.g., identification of land use; identification of endangered 
species possibly present and location of their critical habitat; 
identification of navigable waterways, wetlands and other sensitive 
water resources; and identification of the location of parks, wildlife 
refuges, historic and archaeological sites of National, State or local 
significance and other sites protected by Section 4(f) of the 
Department of Transportation Act.). The latter information and analysis 
shall be submitted four months in advance of the remainder of the 
project description. The above list is illustrative only. Grantees will 
be expected to review proposed work statements with FRA at pre-
application meetings or through some other means to develop the final 
scope of this environmental review.
    (ii) The project description must also include letters of 
endorsement of project implementation from all the State departments of 
transportation involved, and from all Metropolitan Planning 
Organizations for metropolitan areas that would be served by the 
project.


Sec. 268.13  Deadline for submission of applications for 
preconstruction planning assistance.

    Completed application packages shall be returned to FRA by December 
31, 1998. Applications shall be submitted to: Honorable Jolene M. 
Molitoris, Administrator, Federal Railroad Administration, ATTN: Maglev 
Project, RDV-11, 400 Seventh Street, SW, Stop 20,Washington, DC 20590.


Sec. 268.15  Form and contents of applications for preconstruction 
planning assistance.

    States, groups of States, or designated authorities that have 
Maglev projects are invited to submit applications in Phase I of the 
Maglev Deployment Program, the competition for preconstruction planning 
grants. The applications shall contain:
    (a) (1) If submitted by a State: Name, address, responsible party, 
telephone, fax number, and e-mail address of the State agency 
submitting the application; or
    (2) If submitted by a designated authority: Name, address, 
responsible party, telephone, fax number, and e-mail address of the 
designated authority and of the State agency or agencies on whose 
behalf the designated authority is submitting the application, together 
with letters from the State(s) evidencing all such designations;
    (b) A description of the project concept, identifying its likely 
location, market area, length, and the transportation service that it 
would perform, and a preliminary estimate of the time that would be 
required--if funds are made available--to bring the project to the 
start of construction and then to the initiation of full revenue 
service. At its option, the Applicant may include any reports already 
completed on the project as well as any additional descriptive material 
that would assist the FRA in evaluating the application;
    (c) Whatever information the Applicant has to demonstrate that the 
project meets the project eligibility standards in Sec. 268.11(a), and 
the project selection criteria in Sec. 268.17, together with a 
certification that the Applicant fully intends to comply with the 
requirements in Sec. 268.11 should its project be selected by FRA for 
final design, engineering and construction financing.
    (d) A statement of work for the preconstruction planning activities 
to be accomplished under the planning grant. The statement shall 
describe the work to be performed, including but not necessarily 
limited to:
    (1) Preconstruction planning work as is needed to develop a Maglev 
project, and project description that will satisfy the project 
eligibility standards in Sec. 268.11(b), and the project selection 
criteria in Sec. 268.17; and
    (2) Preparation of EAs, as described in Sec. 268.11(b)(6)(i);
    (e) Management plan, schedule, and financial plan for accomplishing 
the preconstruction planning work under the planning grant;
    (f) Letters supporting the application from the heads of all State 
departments of transportation involved, as well as from responsible 
officials of the Metropolitan Planning Organizations of all 
metropolitan areas to be served by the proposed project;
    (g) A certification from the State, or from the authority 
designated by one or more States, that the \1/3\ matching funds 
required for work under the planning grant are, or will be, available 
by the time the grants are announced. The source(s) of the matching 
must be shown in the financial plan under paragraph (e) of this 
section; and
    (h) If the applicant has made a definitive choice of the particular 
Maglev technology proposed to be included, a description of that 
technology and the degree to which it has been produced and tested 
should be submitted. Further, if the applicant has identified 
organizations that would form members of the team that would implement 
the project, the names of those organizations and the persons 
representing them should also be submitted.

[[Page 54610]]

Sec. 268.17  Project selection criteria.

    Except as qualified by Sec. 268.19, the following criteria will 
govern FRA's selection of projects to receive funding under the Maglev 
Deployment Program.
    (a) Purpose and Significance of the Project. (1) The degree to 
which the project description demonstrates attractiveness to travelers, 
as measured in passengers and passenger-miles.
    (2) The extent to which implementation of the project will reduce 
congestion, and attendant delay costs, in other modes of 
transportation; will reduce emissions and/or energy consumption; or 
will reduce the rate of growth in needs for additional highway or 
airport construction. Measures for this criterion will include but not 
be limited to the present value of congestion reduction, pollution 
reduction, and/or facility cost-avoidance benefits.
    (3) The degree to which the project will demonstrate the variety of 
operating conditions which are to be expected in the United States.
    (4) The degree to which the project will augment a Maglev corridor 
or network that has been identified, by any State, group of States, or 
the FRA, as having Partnership Potential.
    (b) Timely Implementation. The speed with which the project can 
realistically be brought into full revenue service, based on the 
project description and on the current and projected development status 
of the Maglev technology selected by the applicant for the project.
    (c) Benefits for the American Economy. The extent to which the 
project is expected to create new jobs in traditional and emerging 
industries in the United States.
    (d) Partnership Potential. The degree to which the project 
description demonstrates Partnership Potential for the corridor in 
which it is involved, and/or for the project independently.
    (e) Funding Limits and Sources. FRA recognizes that applicants for 
preconstruction planning assistance may not have detailed information 
with respect to each of these criteria, and that the purpose of the 
preconstruction planning assistance is to develop much of this 
information with respect to a particular Maglev project. The 
preconstruction planning application requirements of the Interim Final 
Rule are designed to elicit whatever information an applicant may have 
pertaining to these criteria.
    (1) The extent and proportion to which States, regions, and 
localities commit to financially contributing to the project, both in 
terms of their own locally-raised, entirely non-Federal funds, and in 
terms of commitments of scarce Federal resources from non-Maglev funds; 
and
    (2) The extent and proportion to which the private sector 
contributes financially to the project.


268.19  Evaluation of applications for preconstruction planning 
assistance.

    The FRA will evaluate the applications for their completeness and 
responsiveness to the requirements listed in Sec. 268.15. In addition, 
applicants are advised that the Maglev Deployment Program contains a 
number of project eligibility standards (minimum threshold standards) 
and project evaluation criteria that will guide the FRA's review of the 
project descriptions produced under the Planning Grants. The FRA's 
implementation of these standards and criteria appears in Sec. 268.11 
and Sec. 268.17, respectively. Although subject to revision, the 
information in Sec. 268.11 and Sec. 268.17 should assist the States in 
completing their applications in the competition for planning grants, 
since the project descriptions will need to respond to the standards 
and criteria. In evaluating the applications for planning grants, FRA 
will consider how consistent the applicant's project is to the 
standards and criteria, and the application's likelihood of leading to 
a project that meets all the standards and criteria.


Sec. 268.21  Selection of one Maglev project for final design, 
engineering and construction funding.

    (a) Only one project will be selected in Phase III of the Maglev 
Deployment Program and be eligible for any Federal construction funds 
that the Congress chooses to make available. That one project must meet 
each and every project eligibility standard contained in 
Sec. 268.11(b). If more than one project meets all these standards, 
then the FRA will evaluate and compare the eligible projects according 
to the set of project selection criteria contained in Sec. 268.17.
    (b) In reviewing competing projects under the project eligibility 
standards and project selection criteria, the FRA will exercise 
particular vigilance regarding the following elements of the 
preconstruction planning process, although not to the exclusion of 
others:
    (1) The credibility of the demand and revenue forecasts, cost 
estimates, and benefit/cost comparisons; and
    (2) The credibility of the financial plan.
    (c) FRA intends to make periodic reviews of the processes and 
products of grant recipients. Such reviews may include, at the FRA's 
option, reviews at key milestones in the preparation of project 
descriptions.

    Issued in Washington, DC on October 2, 1998.
Jolene M. Molitoris,
Federal Railroad Administrator.
[FR Doc. 98-27245 Filed 10-9-98; 8:45 am]
BILLING CODE 4910-06-P