[Federal Register Volume 80, Number 171 (Thursday, September 3, 2015)]
[Notices]
[Pages 53387-53389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21790]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Expedited Public Transportation Improvement Initiative

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of initiative and online dialogue

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SUMMARY: The Federal Transit Administration (FTA) announces the 
establishment of a multi-faceted Expedited Public Transportation 
Improvement Initiative (``XPEDITE'') and solicits participation in a 
forthcoming Online Dialogue on the initiative. The goal of XPEDITE is 
to facilitate the transit industry's implementation of:

 Proven technologies to improve service delivery and 
maintenance for the public transit industry
 Proven methods to speed up planning, development, approval and 
delivery of FTA supported capital investments; and
 Innovative financing methods and opportunities for public-
private partnerships that support capital investments

During the XPEDITE Online Dialogue FTA will be asking you to identify 
(1) possible improvements in the technology of public transportation 
and any barriers to their implementation, (2) procedural improvements 
which can be made to the delivery of all capital projects, program-
wide, (3) ways to improve project delivery through innovations in 
financial arrangements and partnerships with private sector project 
developers.

DATES: FTA will open its XPEDITE Online Dialogue on its Web site no 
later than September 8, 2015.

FOR FURTHER INFORMATION CONTACT: For specific information regarding the 
initiative please contact Tom Yedinak, Office of Budget and Policy, 
phone: (202) 366-5137, or email: [email protected].

SUPPLEMENTARY INFORMATION: 

1. Background

    Each year the Federal Transit Administration (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 assure that they are in a state of good repair, 
implementing technological improvements in public transportation 
equipment and facilities, and increasing the extent and quality of 
public transportation service by making new investments. These projects 
take considerable amounts of time to plan, design, develop, approve and 
deploy. While it is important to take time to ensure that only well-
conceived projects are implemented in the most efficient and effective 
manner, taking too much time delays the delivery of the intended 
benefits of the projects to the riding public and may increase the cost 
of the project. In addition, there is a wide range of technological 
innovations which are not being adopted as widely as possible, 
resulting in missed opportunities to improve the efficiency and 
effectiveness of public transportation.
    FTA funds larger-scale capital projects in a number of its grant 
programs, including the Urbanized Areas, Rural Areas, State of Good 
Repair, and Bus and Bus Facilities Formula Programs, as well as the 
Capital Investment Grants Program. While the very large investments in 
new projects in the Capital Investment Grants program tend to garner 
the most attention, significant efforts to innovate and expedite such 
projects are well underway. Capital projects supported by the formula 
programs also take considerable effort to plan, design, obtain 
approval, and deliver. FTA is interested in improving each aspect of 
the project delivery process for all of its programs.
    FTA already has made considerable progress to expedite FTA's 
project delivery processes. Pursuant to Accelerated Project Delivery 
provisions of Subtitle C of the Moving Ahead for Progress in the 21st 
Century Act (MAP-21), Public Law 112-141 (July 6, 2012), FTA and FHWA 
undertook a series of rulemakings that expedite compliance with the 
National Environmental Policy Act (NEPA), 42 U.S.C. 4321, et seq. Above 
and beyond these joint efforts, FTA established sixteen new Categorical 
Exclusions that are specific to public transportation projects. In 
addition, FTA has taken steps to improve its oversight processes by 
eliminating duplicative reviews and taking a more risk-based approach 
to determining oversight topics needing special attention. FTA also has 
streamlined the risk assessment process for major projects, recently 
concluded a top to bottom review of its project management oversight 
program, and in the near future will implement a series of improvements 
to better focus oversight of major projects. Additionally, FTA has put 
in place a number of features designed to streamline the Capital 
Investment Grants program, discussed in more detail below. Finally, FTA 
has developed and promoted a series of technological improvements.
    On a multimodal level, the Department of Transportation (DOT) has 
established a new Build America Transportation Investment Center 
(BATIC). This center is serving as a one-stop shop for state and local 
governments, public and private developers, and investors seeking to 
use innovative financing strategies for transportation infrastructure 
projects. Through this Web site and hands-on support, advice, and 
expertise, the Center provides navigator services for all types of 
projects and project sponsors. The Center is housed within the Office 
of the Secretary, and draws on expertise from across DOT's operating 
administrations.
    By this notice, FTA is announcing a multi-faceted program entitled 
the Expedited Public Transportation Improvement Initiative 
(``XPEDITE''). The initiative will identify: (1) Improvements in the 
technology of public transportation and any barriers to their 
implementation, (2) procedural improvements which can be made to the

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delivery of all capital projects, program-wide, (3) ways to improve 
project delivery through innovations in financial arrangements and 
partnerships with private sector project developers. Each of these 
facets of the initiative is discussed in the following sections. By a 
separate notice, FTA is initiating implementation of the Section 
20008(b) Pilot Program for Expedited Project delivery for certain 
meritorious new fixed guideway capital projects.

1. XPEDITE Innovation

    As noted, each year, FTA invests significantly in capital 
investments through its formula programs. In addition, FTA has invested 
significant resources in the development of new technologies which can 
make transit more efficient and effective. Similar to the Federal 
Highway Administration's Every Day Counts (EDC) program http://www.fhwa.dot.gov/everydaycounts/, FTA's new XPEDITE Innovation 
initiative will identify and assist in rapidly deploying proven but 
underutilized innovations. Proven innovations and enhanced business 
processes promoted through XPEDITE Innovation will aim to improve the 
efficiency and effectiveness of public transportation and facilitate 
greater efficiency in delivering projects, saving time and resources 
that can be used to deliver more projects for the same or less money.
    In selecting innovations to be advanced, FTA would consider market 
readiness, impacts, benefits and ease of adoption of the innovation 
based on transit leaders' shared best practices. Specifications, 
lessons learned and relevant data are anticipated to be shared among 
stakeholders through case studies, webinars and round tables. The 
result is intended to be rapid technology transfer and accelerated 
deployment of innovation across the nation.
    Shortly, FTA will be initiating its XPEDITE Online Dialogue. As 
part of this effort, participants will be asked to identify innovative 
concepts for the first round of the XPEDITE Innovation initiative. 
Concepts could cover either technological innovations, including those 
related to the construction of transit capital improvements, or 
improved business practices and design and construction techniques 
which can accelerate project deployment. FTA is particularly interested 
in information about barriers to the implementation of technological 
improvements that may exist in the administration of our programs. 
These concepts would be reviewed by FTA staff and a selected set of 
concepts would become part of FTA's technical assistance to project 
sponsors. Importantly, these innovations could be applied to a wide 
variety of capital projects, funded under any of FTA's programs. In 
addition, FTA would consider the input received as it updates its 
administrative requirements and, if necessary, propose changes in those 
requirements, through its normal notice and comment processes, to help 
advance technological innovations.

2. XPEDITE Project Delivery Procedures

    While the Capital Investment Grants (CIG) program often receives 
the most attention when it comes to ways in which project delivery can 
be expedited, it is important to note that the vast majority of transit 
improvements are made through FTA's formula programs. As noted earlier, 
FTA has made significant strides in improving the process for 
delivering these projects, such as through streamlining of the NEPA 
process. However, FTA is interested in learning more about innovations 
that might be applicable to accelerate project delivery. Thus, this 
part of the XPEDITE initiative will address all facets of FTA's 
programs.
    FTA recognizes that improvements in the CIG program are especially 
important to expediting project delivery. Congress has recognized this 
issue by enacting changes to FTA's CIG program in MAP-21. FTA has 
already made significant progress in putting in place the process 
streamlining changes made by MAP-21. In implementing the changes in the 
project justification evaluation criteria for CIG projects, in its 2013 
final rule (49 CFR part 611), FTA adopted measures which streamline the 
evaluation process. FTA also developed a simplified method that project 
sponsors can use, at their option, to predict the transit ridership, a 
key component of these measures. Procedurally the process has improved 
as well. For example, the New Starts process now requires only 
acknowledgement of entry into Project Development, and approval of 
entry into the Engineering phase, eliminating the requirement for an 
Alternatives Analysis and approval of entry into Final Design prior to 
the development of a construction grant agreement. Further, FTA has 
been working to better tailor the requirements for Project Management 
Oversight to the scope of CIG projects and characteristics of project 
sponsors.
    On April 8, 2015, FTA issued draft CIG program guidance to fully 
implement the process changes made by MAP-21 (80 FR 18796). On August 
5, 2015, FTA issued this guidance in final form (80 FR 46514). In this 
guidance, FTA specified in more detail how the streamlined procedures 
will work and established criteria for the new Core Capacity category 
of eligibility established under MAP-21. In laying out the process 
details and criteria FTA focused on the need to simplify and expedite 
project delivery. In establishing the criteria for eligibility and 
evaluation of Core Capacity projects, FTA defined terms in a way that 
the measures can be easily applied. FTA established a series of 
``warrants'' or pre-qualification measures which will allow project 
sponsors to receive ratings on a number of evaluation criteria for New 
Starts, Small Starts, and Core Capacity projects without requiring 
detailed travel forecasts. In the guidance, FTA also indicated it will 
continue to streamline the process for establishing the cost, scope, 
and schedule for CIG projects to a reasonable level of confidence, 
which is now accomplished in a number of ways, such as risk 
assessments, at several steps in the project development process. FTA 
acknowledges that there may be ways to achieve the same goals in a 
manner which may take less time and effort and asked that comments to 
the docket on the draft guidance address this issue.
    Under MAP-21, Congress also enacted Section 20008(b), which 
established a pilot program for new fixed guideway or core capacity 
projects providing that project sponsors who demonstrate innovative 
project development and delivery methods or innovative financing 
arrangements and are in a state of good repair could be allowed to 
receive a full funding grant agreement under an expedited process. FTA 
must select three projects for the program, one of which requests 
greater than $100 million in Section 5309 Capital Investment Grant 
funds, one of which requests less than $100 million in Section 5309 
funds, and the third being unspecified. Section 20008(b) requires that 
projects seeking to be included in the pilot program have a Government 
share that does not exceed 50 percent of the total project cost (not 
just the Section 5309 share but the entire Federal share of the 
project). Projects already in receipt of a Full Funding Grant Agreement 
(FFGA) are not eligible. FTA has published a separate Federal Register 
notice to implement this pilot program (80 FR 38801).
    In this spirit of expediting project delivery, FTA is interested in 
learning about ways in which the procedures for deploying transit 
capital projects can be improved, program-wide. As a part of the 
XPEDITE Online Dialogue, FTA will be asking project sponsors who have

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successfully implemented new methods of delivering transit capital 
improvements to submit their ideas. These ideas can include all aspects 
of project delivery including approval, construction administration, 
procurement, compliance with NEPA, and right-of-way acquisition. FTA 
also is interested in learning more about barriers to quick 
implementation of projects both in terms of its own internal business 
processes as well as processes related to the delivery of projects by 
grantees. The focus should be on ways to speed up the delivery of 
projects and to address the challenges presented by limited budgets 
without compromising quality or safety. Even as the Section 20008(b) 
pilot program proceeds, FTA believes that there may be steps that can 
be taken to expedite the delivery of CIG projects, beyond the changes 
being presented in the draft interim guidance implementing the process 
changes made by MAP-21. Accordingly, project sponsors should feel free 
to submit any such ideas to the XPEDITE Online Dialogue as well. As 
with XPEDITE Innovation, FTA would consider the input received as it 
updates its administrative requirements and, if necessary, propose 
changes in those requirements, through its normal notice and comment 
processes, to help advance methods to expedite project delivery 
procedures.

3. XPEDITE Financial Innovation

    Many observers of public transportation believe that there are 
efficiencies in the delivery of capital projects which can be achieved 
through the application of improvements in the financing of these 
projects and through an enhanced partnership role for the private 
sector. FTA is already undertaking efforts in this area both on its own 
and as a part of the DOT's BATIC, described earlier. On August 25, 
2014, FTA published a final circular clarifying the requirements 
related to Joint Development projects, with an eye toward facilitating 
these important adjuncts to FTA's capital investments (79 FR 50728). In 
addition, this circular provides a framework under which Value Capture 
techniques could be brought to bear to help finance transit capital 
investments. Public transportation infrastructure investments can 
increase adjacent land values, generating an ``unearned'' profit for 
private landowners. A portion of these increases in land value can be 
``captured'' and used for, among other things, public transportation 
infrastructure or revenue service operation. Thus, Value Capture 
internalizes the positive externalities of public transportation 
investments. In June 2013, FTA held a Value Capture forum with experts 
that had proven experience with Value Capture techniques to learn more 
about how these techniques can be used throughout the industry.
    Congress enacted Section 20013 and amended 49 U.S.C. 5315 (Section 
5315) in MAP-21. Specifically, FTA is to: (a) Identify public 
transportation laws, regulations or practices that impede public-
private partnerships or private investment in transit capital projects, 
and develop procedures through regulation to address, on a project 
basis, legal impediments to the use of public-private partnerships and 
private investment as well as procedures to protect the public interest 
and any public investment in public transportation capital projects 
that involve public-private partnerships or private investment in 
public transportation capital projects; (b) develop guidance to promote 
greater transparency and public access to public-private partnerships 
agreements; and (c) provide technical assistance on best practices and 
methods for using private providers of public transportation and using 
public-private partnerships for alternative project delivery of fixed 
guideway capital projects. However, FTA may not waive any provision of 
Federal law, including labor protections of 49 U.S.C. 5333 and NEPA. 
FTA has undertaken a number of steps to implement these provisions.
    To initiate this effort, FTA has posted information on the basics 
of public-private partnerships identified through workshops and studies 
and also included successful public-private partnership contract terms 
on its Private Sector Participation Web page, http://www.fta.dot.gov/grants/16030.html. Further, in December 2014, FTA conducted an on-line 
dialogue on the subject of Section 5315. More information may be found 
at http://usdot.uservoice.com/forums/268166-private-sector-participation-in-public-transportat/category/88630-impediments-to-greater-private-sector-involvement. FTA is now in the process of 
reviewing the comments, and expects to publish a notice of proposed 
rulemaking (NPRM) in the near future which will lay out ways in which 
FTA can improve its processes to expedite project delivery through 
public-private partnerships. This notice and ultimate final rule will 
be the main way in which the goal of expediting project delivery is 
addressed through involvement of private sector partners. Parties 
interested in this facet of FTA's Expedited Project Delivery Initiative 
should participate in that rulemaking process by providing comments on 
the NPRM when it is issued.
    In the interim, FTA invites interested parties to include comments 
in the upcoming XPEDITE Online Dialogue. FTA is particularly interested 
in hearing from project sponsors who are considering pursuing Value 
Capture as part of their project financing arrangements. FTA would like 
to explore what mechanisms might be used, and how FTA could work to 
facilitate such arrangements. FTA invites comments on this issue. 
Again, FTA would consider the input received as it updates its 
administrative requirements and, if necessary, propose changes in those 
requirements, through its normal notice and comment processes, to help 
advance financial innovation in public transportation.

    Signed this 28th day of August, 2015, in Washington, DC.
Matthew J. Welbes,
Executive Director.
[FR Doc. 2015-21790 Filed 9-2-15; 8:45 am]
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