[Federal Register Volume 71, Number 152 (Tuesday, August 8, 2006)]
[Notices]
[Pages 45100-45102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12847]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket Number: FTA-2006-24947]


Notice of Availability of Interim Guidance and Instructions for 
Small Starts

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice of availability.

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SUMMARY: This notice announces the availability of the Federal Transit 
Administration's (FTA) Final Interim Guidance and Instructions for 
Small Starts which was initially issued for comment on June 6, 2006. 
This Guidance describes the eligibility, evaluation, and project 
development procedures for projects seeking Small Starts funding, as 
well as the information required from project sponsors to evaluate and 
rate a project for the purpose of project advancement or a funding 
recommendation. FTA is in the process of broader rulemaking on its 
major capital investments program, but the Interim Guidance and 
Instructions will allow projects into project development. The document 
will also enable FTA to evaluate and rate projects as part of the 
Annual New Starts Report and make funding recommendations prior to 
completion of the broader rulemaking process. For a Small Starts 
project to be included in the FY2008 Annual New Starts Report and 
considered for a funding recommendation, project information must be 
received by FTA by September 15, 2006 and any response to FTA comments 
on the submittal must be completed by October 15, 2006.

EFFECTIVE DATE: These policies and procedures will take effect on 
August 8, 2006.

FOR FURTHER INFORMATION CONTACT: Ron Fisher, Office of Planning and 
Environment, telephone (202) 366-4033, Federal Transit Administration, 
U.S. Department of Transportation, 400

[[Page 45101]]

Seventh Street, SW., Washington, DC 20590 or [email protected].

SUPPLEMENTARY INFORMATION: 

1. Availability of the Final Guidance and Comments

    A copy of the Proposed and Final Interim Guidance and Instructions 
for Small Starts, comments received on the Proposed Interim Guidance, 
and FTA's response to comments received from the public are part of 
docket FTA-2006-24947 and are available for inspection or copying at 
the Docket Management Facility, U.S. Department of Transportation, Room 
PL-401 on the plaza level of the Nassif Building, 400 Seventh Street, 
SW., Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. You may retrieve the guidance and comments 
online through the Document Management System (DMS) at: http://dms.dot.gov. Enter docket number 24947 in the search field. The DMS is 
available 24 hours each day, 365 days each year. Electronic submission 
and retrieval help and guidelines are available under the help section 
of the Web site. An electronic copy of this document may also be 
downloaded by using a computer, modem and suitable communications 
software from the Government Printing Office's Electronic Bulletin 
Board Service at (202) 512-1661. Internet users may also reach the 
Office of the Federal Register's home page at: http://www.nara.gov/fedreg and the Government Printing Office's Web page at: http://www.gpoaccess.gov/fr/index.html.

2. Background

    On August 10, 2005, President Bush signed the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users 
(SAFETEA-LU). Section 3011 of SAFETEA-LU made a number of changes to 49 
U.S.C. 5309, which authorizes the Federal Transit Administration's 
(FTA's) capital investment program known as ``New Starts.'' In addition 
to the changes made to the New Starts program, 49 U.S.C. 5309 has been 
amended with the addition of a new subsection (e) containing a new 
capital investment program category for projects requesting less than 
$75,000,000 in Section 5309 capital investment funds with a total 
project cost of less than $250,000,000. That new capital investment 
program, which will be referred to as the ``Small Starts'' program, is 
the subject of this Interim Guidance and Instructions. FTA, through its 
rulemaking authority, plans to propose regulations that would (1) 
implement changes to the existing New Starts program made by section 
3011 of SAFETEA-LU and (2) formalize the requirements for the Small 
Starts program.
    On June 6, 2006, FTA published a Notice of Availability of the 
Proposed Interim Guidance and Instructions for Small Starts for 
Comments in the Federal Register (71 FR 33503, Jun. 9, 2006). FTA 
requested--and received--comments on the Guidance in the June notice. 
This Final Interim Guidance and Instructions for Small Starts reflects 
FTA's consideration of these comments. FTA finds that there is good 
cause to make this guidance effective upon publication of this notice 
because sponsors of projects seeking Small Starts funding must have 
adequate time to prepare information that FTA will use to evaluate 
projects for inclusion in the President's FY2008 budget request to 
Congress. As noted above, the deadline to submit these materials to the 
FTA is September 15, 2006. This notice announces the availability of 
FTA's final Interim Guidance and Instructions for Small Starts. This 
document is available on the docket, which can be accessed by going to 
http://dms.dot.gov, or on FTA's Web site for New Starts Planning and 
Project Development at http://www.fta.dot.gov.

3. Response to Comments

    Comments were received from 26 parties. These include transit 
agencies, trade organizations, Members of Congress, and private 
consulting firms. This section highlights the key issues identified in 
the comments on the Proposed Interim Guidance and Instructions for 
Small Starts, as well as FTA's response.

More Emphasis Needed on Economic Development Criterion

    Comments: A total of eight comments were received. Respondents 
noted the need for a greater role in the evaluation of economic 
development. In addition, it was suggested that a separate evaluation 
criterion be created instead of including economic development in the 
``other factors'' category as was proposed.
    FTA Response: The underlying premise for this interim guidance is 
not to impose any significant changes in the process until the 
rulemaking process has been completed. Further, there is a significant 
challenge involved in properly evaluating a project's positive effect 
on local economic development and establishing a system that can be 
applied nationally, as well as the informational burden on project 
sponsors that this would entail. Accordingly, FTA has determined that 
the best way to allow for the consideration of economic development at 
this stage is to give project sponsors the opportunity to provide 
evidence of the project's impact on development under ``other 
factors.'' Thus, no change was made from the approach offered in the 
Proposed Interim Guidance. The approach allows project sponsors to cite 
well-reasoned, strongly-justified, and verifiable qualitative and 
quantitative explanations of the expected economic development outcomes 
of the proposed Small Starts project. This could include developer 
agreements or any other commitments of development related to the 
project that would not occur if the project was not constructed.

Streetcars Excluded From Very Small Starts

    Comments: A total of 14 comments were received. Respondents 
indicated concern over several provisions in the Proposed Interim 
Guidance and Instructions for Small Starts that they believe would 
establish a process that would make it difficult to fund streetcar 
projects through the Small Starts program. Respondents claimed that the 
explicit exclusion of ``fixed guideway'' projects--and thus rail modes 
such as urban streetcar--from Very Small Starts eligibility, as well as 
the performance measures indicated in the Small Starts program, would 
create a bias against this mode of transit.
    FTA Response: FTA established the eligibility criteria for Very 
Small Starts with the intent that the very nature of the performance of 
these projects assured a cost-effective project. On reviewing the 
comments, FTA agrees that the exclusion of a new fixed guideway from 
the definition of Very Small Starts is unnecessary, as the 
effectiveness and cost-effectiveness of a fixed guideway project can be 
assured by these measures. Therefore, FTA will allow the construction 
of fixed guideway projects to be eligible for Very Small Starts funding 
if they meet the other criteria established for this category.
    Specifically, to be eligible for the Very Small Starts category, 
the project should (1) Have substantial transit stations; (2) use 
traffic signal priority/pre-emption, to the extent, if any, that 
traffic signals exist in the corridor; (3) have low-floor vehicles or 
level boarding; (4) use a clear brand identity for the proposed 
service; (5) operate 10 minute peak/15 minute off peak headways or 
better and operate at least 14 hours per weekday (not required for 
commuter rail or ferries); (6) be in corridors with at least 3,000 
average weekday existing riders who will benefit from the proposed 
project; and (7) have a total capital cost

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less than $50 million (including all project elements) and less than $3 
million per mile, exclusive of rolling stock.

Majority of Funds Will Go to Very Small Starts Projects Due to the Ease 
of Evaluation and Implementation

    Comments: A total of 11 comments were received. Respondents noted 
concern that since Very Small Starts projects would have an easier time 
being rated, that the majority of Small Starts funding would be 
allocated to Very Small Starts projects. This would mean that very 
little funding would be available for larger Small Starts, such as 
fixed guideway rail projects.
    FTA Response: The comments are not based on any requirement in the 
Proposed Interim Guidance, but rather reflect speculation on how FTA 
will make funding recommendations. The Proposed Interim Guidance did 
not address how FTA would make its funding decisions, nor did it 
address the division of funding between Small Starts and Very Small 
Starts. As with all projects in the Section 5309 capital investment 
grant program, the evaluation and rating process for Small Starts is 
separate and distinct from FTA's decision to recommend a project for 
funding. That decision is driven by a number of factors, including the 
``readiness'' of projects for capital funding, geographic equity, the 
amount of available funds versus the number and size of the projects in 
New Starts the pipeline, and the project's overall rating. The Interim 
Guidance and Instructions have been revised to add a section that 
clearly states that funding decisions are not covered by the rating 
process.

Requirement for 1,000 Riders at Endpoints Is Too High for Very Small 
Starts

    Comments: A total of 11 comments were received. Respondents 
representing both large and small transit agencies, as well as trade 
organizations, noted that this metric would be difficult to meet. Most 
respondents noted that this requirement could be met at one end or at 
points along a route, but achieving 1,000 riders at each endpoint is 
not likely.
    FTA Response: In light of the projected variety of project 
candidates for Very Small Starts funding, this minimum ridership 
requirement has been be eliminated in the Interim Guidance and 
Instructions. However, as with any proposed New Start project, FTA will 
review the scope and cost of the project to insure that significant 
costs are not being incurred for unproductive lengths.

Request for Simpler Processes

    Comments: A total of 12 comments were received. Respondents noted 
that the application process for Small Starts funding was too 
cumbersome in relation to the program's goals and expected project 
size. Several comments cited similarities between the application 
process for New Starts and Small Starts. Respondents noted the number 
of long, involved, and often costly steps in New Starts projects, and 
hoped to avoid these in the Small Starts program.
    FTA Response: FTA believes that significant simplification has been 
achieved, consistent with the underlying premise of the Proposed 
Interim Guidance not to make major changes in the process until the 
rulemaking has been completed. Nevertheless, FTA believes that further 
simplification may be possible. The rulemaking process underway for New 
Starts and Small Starts will provide an opportunity to consider 
additional simplification. The requirements for an alternatives 
analysis and the information necessary for local financial commitment 
have been simplified. For Very Small Starts, evidence of eligibility, 
which is information project sponsors usually develop for a project 
regardless of funding source, is all that is required for project 
justification. The timeframe for travel forecasts and financial plans 
has been reduced to the date of opening, significantly reducing highway 
and transit network development as well as other information needed for 
forecasts. Simplified methods for travel forecasts are also possible. 
The planning and evaluation process has been limited to the factors in 
the law and the amount of supporting information has been minimized as 
much as possible without compromising evaluation of project 
justification and local financial commitment. In addition, in response 
to the comments, the information required for the rating of land use 
has been further simplified and included in the Appendix.

    Issued in Washington, DC this 2nd day of August 2006.
Sandra K. Bushue,
Deputy Administrator.
 [FR Doc. E6-12847 Filed 8-7-06; 8:45 am]
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