[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28229-28235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12154]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
49 CFR Part 611
[Docket No. FTA-2025-0006]
RIN 2132-AB55
Major Capital Investment Projects
AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).
ACTION: Final rule.
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SUMMARY: This rulemaking revises FTA's major capital investment
projects regulation to remove Appendix A, which provided outdated
descriptions of the measures used for the evaluation of Capital
Investment Grant (CIG) projects. This rulemaking also adopts minor
conforming changes to reflect the removal of the Appendix.
DATES: This final rule is effective on July 1, 2025.
FOR FURTHER INFORMATION CONTACT: Heather Ueyama, Office of Chief
Counsel, (202) 366-7374 or [email protected]. Office hours are
from 8:30 a.m. to 5 p.m., Monday through Friday, except Federal
holidays.
SUPPLEMENTARY INFORMATION:
I. Background and Discussion of the Changes
Section 5309 of title 49, United States Code, outlines a multi-
year, multi-step process for projects to be eligible for and receive
discretionary CIG funding. FTA implements the CIG project evaluation
and rating process through both 49 CFR part 611 (pursuant to 49 U.S.C.
5309(g)(6)) and the CIG Policy Guidance (pursuant to 49 U.S.C.
5309(g)(5)). Notably, Appendix A to 49 CFR part 611 and the CIG Policy
Guidance both include detailed descriptions of the project
justification and local financial commitment measures FTA uses for the
evaluation and rating of CIG projects.
In accordance with 49 U.S.C. 5309(g)(5), FTA must update the CIG
Policy Guidance each time it makes significant changes to the CIG
process and criteria, but not less frequently than once every two
years. FTA follows notice and comment rulemaking procedures pursuant to
49 U.S.C. 5334(k) when an update to the CIG Policy Guidance imposes a
``binding obligation,'' as defined by 49 U.S.C. 5334(k)(2). Interested
parties therefore have an opportunity to comment when FTA makes such
changes to CIG Policy Guidance.
As a result, FTA updates the CIG Policy Guidance much more
frequently than it updates 49 CFR part 611. Most recently, FTA updated
part 611 in January 2013 (78 FR 2031) and the CIG Policy Guidance in
December 2024 (89 FR 102248). This quickly renders the descriptions of
the evaluation measures in Appendix A out of date.
Accordingly, FTA has determined it is appropriate to remove
Appendix A from the regulation. The regulation contemplates the CIG
Policy Guidance, not the Appendix, will serve as the most up-to-date
source of information about the evaluation measures by noting that FTA
may update the measures in the future through the CIG Policy Guidance
(See, e.g., 49 CFR 601.203(a)(2) and 601.205(g)). FTA and project
sponsors therefore rely on the CIG Policy Guidance for the definitive
description of CIG project evaluation measures. The Appendix is
superfluous and contains obsolete information, which risks causing
confusion for project sponsors and the public. Removing it will conform
the regulation to FTA's current practice and will have no substantive
[[Page 28230]]
effect on FTA's evaluation and rating of CIG projects.
This rulemaking also adopts minor conforming changes to the
regulation to reflect the removal of Appendix A. The Definitions
section has been revised at 49 CFR 611.105 to remove the following
terms that are no longer used in the regulation: ``Current year,''
``Horizon year,'' ``Locally preferred alternative,'' ``Major capital
transit investment,'' ``Secretary,'' and ``Small Starts project
development.'' In addition, FTA has removed references to Appendix A
from 49 CFR 611.203(a)(2) and 611.303(a)(2). These changes are non-
substantive.
FTA has also removed outdated cross references from 49 CFR
611.201(a)(2) and 611.301(a)(2). FTA notes there have been multiple
reauthorizations that amended 49 U.S.C. 5309 since FTA last updated 49
CFR part 611 in 2013. FTA intends to update part 611 in the future to
incorporate these statutory changes.
II. Good Cause for Dispensing With Notice and Comment and Delayed
Effective Date
Under the Administrative Procedure Act (APA) (5 U.S.C. 553(b)(B)),
an agency may dispense with notice and comment if it finds, for good
cause, that they are impracticable, unnecessary, or contrary to the
public interest. Additionally, 5 U.S.C. 553(d) provides that an agency
may waive the 30-day delayed effective date upon finding of good cause.
As noted above, removal of Appendix A will have no substantive effect
on FTA's evaluation and rating of CIG projects. The CIG Policy Guidance
is the definitive document FTA and regulated entities consult for a
detailed description of the CIG evaluation measures. Removal of the
Appendix therefore will have no impact on FTA's current practice or on
CIG projects. Moreover, removal of the references to Appendix A and
related definitions in 49 CFR part 611 are non-substantive conforming
changes.
Accordingly, FTA finds good cause that notice and comment for this
rule is unnecessary due to the nature of the revisions (i.e., the rule
will have no substantive impact on FTA's evaluation and rating of CIG
projects). For the same reasons, FTA finds that the delayed effective
date is unnecessary. Accordingly, FTA finds good cause under 5 U.S.C.
553(b)(B) and (d)(3) to waive notice and opportunity for comment and
the delayed effective date.
III. Regulatory Analyses and Notices
A. Executive Order 12866 and 13563 (Regulatory Review)
E.O. 12866 (``Regulatory Planning and Review''), as supplemented by
E.O. 13563 (``Improving Regulation and Regulatory Review''), directs
Federal agencies to assess the benefits and costs of regulations and to
select regulatory approaches that maximize net benefits when possible.
It also directs the Office of Management and Budget (OMB) to review
significant regulatory actions, including regulations with annual
economic effects of $100 million or more. OMB has determined the rule
is not significant within the meaning of Executive Order 12866 and has
not reviewed the rule under that order.
The rule removes an appendix from the Major Capital Investment
Projects regulation that has outdated information. Although the change
does not affect requirements for regulated entities, improving the
clarity and accuracy of the regulation could reduce the time needed for
regulated entities to understand the requirements of the regulation.
Accordingly, this rule will have cost savings that are small and not
quantifiable or de minimis.
B. Executive Order 14192 (Deregulatory Action)
E.O. 14192 (``Unleashing Prosperity Through Deregulation'')
requires that for ``each new [E.O. 14192 regulatory action] issued, at
least ten prior regulations be identified for elimination.''
Implementation guidance for E.O. 14192, issued by the Office of
Management and Budget (OMB) (Memorandum M-25-20, March 26, 2025),
defines an E.O. 14192 deregulatory action as ``an action that has been
finalized and has total costs less than zero.'' This final rule will
have total costs less than zero, and therefore is an E.O. 14192
deregulatory action.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et seq.)
requires Federal agencies to assess the impact of a regulation on small
entities unless the agency determines that the regulation is not
expected to have a significant economic impact on a substantial number
of small entities.
FTA has determined the rule will not have a significant effect on a
substantial number of small entities. The rule removes an outdated
appendix from the Major Capital Investment Projects regulation but does
not change requirements for regulated entities. The rule may result in
minor and unquantified time and cost savings for small entities by
improving the accuracy of the information provided and reducing the
time needed to understand the regulation.
D. Unfunded Mandates Reform Act of 1995
FTA has determined this rule would not impose unfunded mandates, as
defined by the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).
This rule does not include a Federal mandate that may result in
expenditures of $100 million or more in any one year, adjusted for
inflation, by State, local, and tribal governments in the aggregate or
by the private sector. Furthermore, the definition of ``Federal
mandate'' in the Unfunded Mandates Reform Act excludes financial
assistance of the type in which State, local, or tribal governments
have authority to adjust their participation in the program in
accordance with changes made in the program by the Federal government.
The Federal Transit Act permits this type of flexibility.
E. Executive Order 13132 (Federalism Assessment)
E.O. 13132 (``Federalism'') requires agencies to assure meaningful
and timely input by State and local officials in the development of
regulatory policies that may have a substantial direct effect on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government. This action has been analyzed in
accordance with the principles and criteria contained in E.O. 13132
dated August 4, 1999, and FTA determined this action will not have a
substantial direct effect or sufficient federalism implications on the
States. FTA also determined this action will not preempt any State law
or regulation or affect the States' ability to discharge traditional
State governmental functions.
F. Executive Order 12372 (Intergovernmental Review)
The regulations implementing E.O. 12372 (``Intergovernmental Review
of Federal Programs'') regarding intergovernmental consultation on
Federal programs and activities do not apply to this rulemaking.
G. Paperwork Reduction Act
Federal agencies must obtain approval from the Office of Management
and Budget (OMB) for each collection of information they conduct,
sponsor, or require through regulations. FTA has
[[Page 28231]]
analyzed this rule under the Paperwork Reduction Act and believes it
does not impose additional information collection requirements for the
purposes of the Act above and beyond existing information collection
clearances from OMB.
H. National Environmental Policy Act
FTA has analyzed this rule for the purposes of the National
Environmental Policy Act of 1969 (NEPA). In accordance with 42 U.S.C.
4336 and DOT NEPA Order 5610.1C, FTA has determined that this rule is
categorically excluded pursuant to 23 CFR 771.118(c)(4), ``[p]lanning
and administrative activities that do not involve or lead directly to
construction, such as: [p]romulgation of rules, regulations, and
directives.'' This rulemaking is not anticipated to result in any
environmental impacts, and there are no unusual or extraordinary
circumstances present in connection with this rulemaking.
I. Executive Order 13175 (Tribal Consultation)
FTA has analyzed this rule under E.O. 13175 (``Consultation and
Coordination with Indian Tribal Governments''), and believes that it
will not have substantial direct effects on one or more Indian tribes;
will not impose substantial direct compliance costs on Indian tribal
governments; and will not preempt tribal laws. Therefore, a tribal
summary impact statement is not required.
J. Executive Order 13211 (Energy Effects)
FTA has analyzed this action under E.O. 13211 (``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use''). FTA has determined this action is not a significant energy
action under that order and is not likely to have a significant adverse
effect on the supply, distribution, or use of energy. Therefore, a
Statement of Energy Effects is not required.
K. Regulation Identifier Number (RIN)
A Regulation Identifier Number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN number contained in the heading
of this document can be used to cross-reference this rule with the
Unified Agenda.
List of Subjects in 49 CFR Part 611
Government contracts, Grant programs--transportation, Mass
transportation.
0
In consideration of the foregoing, and under the authority of 49 U.S.C.
5309(g)(6) and 5334(a)(11), and the delegations of authority at 49 CFR
1.91, the Federal Transit Administration revises and republishes part
611 to read as follows:
PART 611--MAJOR CAPITAL INVESTMENT PROJECTS
Subpart A General Provisions
Sec.
611.101 Purpose and contents.
611.103 Applicability.
611.105 Definitions.
611.107 Relation to the planning processes.
Subpart B New Starts
611.201 New Starts eligibility.
611.203 New Starts project justification criteria.
611.205 New Starts local financial commitment criteria.
611.207 Overall New Starts project ratings.
611.209 [Reserved]
611.211 New Starts Before and After study.
Subpart C Small Starts
611.301 Small Starts eligibility.
611.303 Small Starts project justification criteria.
611.305 Small Starts local financial commitment criteria.
611.307 Overall Small Starts project ratings.
611.309 [Reserved]
Authority: 49 U.S.C. 5309(g)(6) and 5334(a)(11); 49 CFR 1.91.
Subpart A--General Provisions
Sec. 611.101 Purpose and contents.
(a) This part prescribes the process that applicants must follow to
be considered eligible for fixed guideway capital investment grants for
a new fixed guideway, an extension to a fixed guideway, or a corridor-
based bus rapid transit system (known as New Starts and Small Starts).
Also, this part prescribes the procedures used by FTA to evaluate and
rate proposed New Starts projects as required by 49 U.S.C. 5309(d) and
Small Starts projects as required by 49 U.S.C. 5309(h).
(b) This part defines how the results of the evaluation described
in paragraph (a) of this section will be used to:
(1) Rate projects as ``high,'' ``medium-high,'' ``medium,''
``medium-low'' or ``low'' as required by 49 U.S.C. 5309(g)(2)(A) and 49
U.S.C. 5309(h)(6);
(2) Assign individual ratings for each of the project justification
criteria specified in 49 U.S.C. 5309(d)(2)(B) and 49 U.S.C. 5309(h)(6);
(3) Determine project eligibility for Federal funding commitments,
in the form of full funding grant agreements (FFGA) for New Starts
projects and expedited grant agreements (EGA) for Small Starts
projects; and
(4) Support funding recommendations for the New Starts and Small
Starts programs for the President's annual budget request.
(c) The information collected and ratings developed under this part
will form the basis for the Annual Report on Funding Recommendations,
required by 49 U.S.C. 5309(o)(1).
Sec. 611.103 Applicability.
(a) This part applies to all proposals for Federal major capital
investment funds under 49 U.S.C. 5309 for new fixed guideways,
extensions to fixed guideways, and corridor-based bus rapid transit
systems.
(b) This part does not apply to projects for which an FFGA or PCGA
has already been executed, or to projects that have been approved into
final design or project development unless the project sponsor requests
to be covered by this part. The regulations in existence prior to the
effective date of this rule will continue to apply to projects for
which an FFGA or PCGA has already been executed and to projects
approved into final design or project development unless a project
sponsor requests to be covered by this part. New Starts projects
approved for entry into final design shall be considered to be in the
engineering phase of the New Starts process.
(c) A New Starts project which has been approved for entry into
preliminary engineering under the regulations in existence prior to the
effective date of this rule shall be considered to be in the
engineering phase of the New Starts process. For the purpose of
completing engineering, the regulations in existence prior to the
effective date of this rule will continue to apply to a New Starts
project approved into preliminary engineering until such time as the
sponsor requests an FFGA unless the project sponsor requests to be
covered by this part prior to an FFGA.
Sec. 611.105 Definitions.
The definitions established by titles 12 and 49 of the United
States Code, the Council on Environmental Quality's regulation at 40
CFR parts 1500 through 1508, and FHWA-FTA regulations at 23 CFR parts
450 and 771 are applicable. In addition, the following definitions
apply:
Corridor-based bus rapid transit project means a bus capital
project
[[Page 28232]]
where the project represents a substantial investment in a defined
corridor as demonstrated by features such as park-and-ride lots,
transit stations, bus arrival and departure signage, intelligent
transportation systems technology, traffic signal priority, off-board
fare collection, advanced bus technology, and other features that
support the long-term corridor investment.
Early system work agreement means a contract, pursuant to the
requirements in 49 U.S.C. 5309(k)(3), that allows some construction
work and other clearly defined elements of a project to proceed prior
to execution of a full funding grant agreement (FFGA). It typically
includes a limited scope of work that is less than the full project
scope of work and specifies the amount of New Starts funds that will be
provided for the defined scope of work included in the agreement.
EGA means an expedited grant agreement.
Engineering is a phase of development for New Starts projects
during which the scope of the proposed project is finalized; estimates
of project cost, benefits, and impacts are refined; project management
plans and fleet management plans are developed; and final construction
plans (including final construction management plans), detailed
specifications, final construction cost estimates, and bid documents
are prepared. During engineering, project sponsors must obtain
commitments of all non-New Starts funding.
ESWA means early system work agreement.
Extension to fixed guideway means a project to extend an existing
fixed guideway or planned fixed guideway.
FFGA means a full funding grant agreement.
Fixed guideway means a public transportation facility that uses and
occupies a separate right-of-way or rail line for the exclusive use of
public transportation and other high occupancy vehicles, or uses a
fixed catenary system and a right of way usable by other forms of
transportation. This includes, but is not limited to, rapid rail, light
rail, commuter rail, automated guideway transit, people movers, ferry
boat service, and fixed-guideway facilities for buses (such as bus
rapid transit) and other high occupancy vehicles. A new fixed guideway
means a newly-constructed fixed guideway in a corridor or alignment
where no such guideway exists.
FTA means the Federal Transit Administration.
Full funding grant agreement means a contract that defines the
scope of a New Starts project, the amount of New Starts funds that will
be contributed, and other terms and conditions.
Long-range transportation plan means a financially constrained
long-range plan, developed pursuant to 23 CFR part 450, that includes
sufficient financial information for demonstrating that projects can be
implemented using committed, available, or reasonably available revenue
sources, with reasonable assurance that the Federally supported
transportation system is being adequately operated and maintained. For
metropolitan planning areas, this would be the metropolitan
transportation plan and for other areas, this would be the long-range
statewide transportation plan. In areas classified by the Environmental
Protection Agency as ``nonattainment'' or ``maintenance'' of air
quality standards, the long-range transportation plan must have been
found by DOT to be in conformity with the applicable State
Implementation Plan.
NEPA process means those procedures necessary to meet the
requirements of the National Environmental Policy Act of 1969 (NEPA),
as amended, at 23 CFR part 771; the NEPA process is completed when the
project receives a categorical exclusion, a Finding of No Significant
Impact (FONSI) or a Record of Decision (ROD).
New Starts means a new fixed guideway project, or a project that is
an extension to an existing fixed guideway, that has a total capital
cost of $250,000,000 or more or for which the project sponsor is
requesting $75,000,000 or more in New Starts funding.
New Starts funds mean funds granted by FTA for a New Starts project
pursuant to 49 U.S.C. 5309(d).
No-build alternative means an alternative that includes only the
current transportation system as well as the transportation investments
committed in the Transportation Improvement Plan (TIP) (when the
horizon year is 10 years in the future) or the fiscally constrained
long-range transportation plan (when the horizon year is 20 years in
the future) required by 23 CFR part 450.
Small Starts means a new fixed guideway project, a project that is
an extension to an existing fixed guideway, or a corridor-based bus
rapid transit system project, with a total capital cost of less than
$250,000,000 and for which the project sponsor is requesting less than
$75,000,000 in Small Starts funding.
Small Starts funds mean funds granted by FTA for a Small Starts
project pursuant to 49 U.S.C. 5309(h).
Sec. 611.107 Relation to the planning processes.
All New Starts and Small Starts projects proposed for funding
assistance under this part must emerge from the metropolitan and
Statewide planning process, consistent with 23 CFR part 450, and be
included in the fiscally constrained long-range transportation plan
required under 23 CFR part 450.
Subpart B--New Starts
Sec. 611.201 New Starts eligibility.
(a) To be eligible for an engineering grant under this part for a
new fixed guideway or an extension to a fixed guideway, a project must:
(1) Be a New Starts project as defined in Sec. 611.105; and
(2) Be approved into engineering by FTA.
(b) To be eligible for a construction grant under 49 U.S.C. 5309
for a new fixed guideway or extension to a fixed guideway, a project
must:
(1) Be a New Starts project as defined in Sec. 611.105;
(2) Have completed engineering;
(3) Receive a ``medium'' or better rating on project justification
pursuant to Sec. 611.203;
(4) Receive a ``medium'' or better rating on local financial
commitment pursuant to Sec. 611.205; and
(5) Meet the other requirements of 49 U.S.C. 5309.
Sec. 611.203 New Starts project justification criteria.
(a) To perform the statutorily required evaluations and assign
ratings for project justification, FTA will evaluate information
developed locally through the planning and NEPA processes.
(1) The method used by FTA to evaluate and rate projects will be a
multiple measure approach by which the merits of candidate projects
will be evaluated in terms of each of the criteria specified by this
section.
(2) The measures for these criteria are specified in policy
guidance. This policy guidance, which is subject to a public comment
period, is issued periodically by FTA whenever significant changes to
the process are proposed, but not less frequently than every two years,
as required by 49 U.S.C. 5309(g)(5).
(3) The measures will be applied to projects defined by project
sponsors that are proposed to FTA for New Starts funding.
(4) The ratings for each of the criteria in Sec. 611.203(b)(1)
through (6) will be
[[Page 28233]]
expressed in terms of descriptive indicators, as follows: ``high,''
``medium-high,'' ``medium,'' ``medium-low,'' or ``low.''
(b) The project justification criteria are as follows:
(1) Mobility improvements.
(2) Environmental benefits.
(3) Congestion relief.
(4) Economic development effects.
(5) Cost-effectiveness, as measured by cost per rider.
(6) Existing land use.
(c) In evaluating proposed New Starts projects under these project
justification criteria:
(1) As a candidate project proceeds through engineering, a greater
level of commitment will be expected with respect to transit supportive
plans and policies evaluated under the economic development criterion
and the project sponsor's technical capacity to implement the project.
(2) For any criteria under paragraph (b) of this section that use
incremental measures, the point for comparison will be the no-build
alternative.
(d) FTA may amend the measures for these project justification
criteria. Any such amendment will be included in policy guidance and
subject to a public comment process.
(e) From time to time FTA may publish through policy guidance
standards based on characteristics of projects and/or corridors to be
served. If a proposed project can meet the established standards, FTA
may assign an automatic rating on one or more of the project
justification criteria outlined in this section.
(f) The individual ratings for each of the criteria described in
this section will be combined into a summary project justification
rating of ``high,'' ``medium-high,'' ``medium,'' ``medium-low,'' or
``low,'' through a process that gives comparable, but not necessarily
equal, weight to each criterion. The process by which the project
justification rating will be developed, including the assigned weights,
will be described in policy guidance.
Sec. 611.205 New Starts local financial commitment criteria.
In order to approve a grant under 49 U.S.C. 5309 for a New Starts
project, FTA must find that the proposed project is supported by an
acceptable degree of local financial commitment, as required by 49
U.S.C. 5309(d)(4)(iv). The local financial commitment to a proposed
project will be evaluated according to the following measures:
(a) The proposed share of the project's capital costs to be funded
from sources other than New Starts funds, including both the non-New
Starts match required by Federal law and any additional state, local or
other Federal capital funding (also known as ``overmatch'');
(b) The current capital and operating financial condition of the
project sponsor;
(c) The commitment of capital and operating funds for the project
and the entire transit system including consideration of private
contributions; and
(d) The accuracy and reliability of the capital and operating costs
and revenue estimates and the financial capacity of the project
sponsor.
(e) From time to time FTA may publish through policy guidance
standards based on characteristics of projects and/or corridors to be
served. If a proposed project can meet the established standards, FTA
may assign an automatic rating on one or more of the local financial
commitment criteria outlined in this section.
(f) As a candidate project proceeds through engineering, a greater
level of local financial commitment will be expected.
(g) FTA may amend the measures for these local financial commitment
criteria. Any such amendment will be included in policy guidance and
subject to a public comment process.
(h) For each proposed project, ratings for paragraphs (a) through
(d) of this section will be reported in terms of descriptive
indicators, as follows: ``high,'' ``medium-high,'' ``medium,''
``medium-low,'' or ``low.'' For paragraph (a) of this section, the
percentage of New Starts funding sought from 49 U.S.C. 5309 will be
rated and used to develop the summary local financial commitment
rating, but only if it improves the rating and not if it worsens the
rating.
(i) The ratings for each measure described in this section will be
combined into a summary local financial commitment rating of ``high,''
``medium-high,'' ``medium,'' ``medium-low,'' or ``low.'' The process by
which the summary local financial commitment rating will be developed,
including the assigned weights to each of the measures, will be
described in policy guidance.
Sec. 611.207 Overall New Starts project ratings.
(a) [Reserved]
(b) FTA will assign overall project ratings to each proposed
project of ``high,'' ``medium-high, ``medium,'' ``medium-low,'' or
``low'' as required by 49 U.S.C. 5309(g)(2)(A).
(1) These ratings will indicate the overall merit of a proposed New
Starts project at the time of evaluation.
(2) Ratings for individual projects will be developed upon entry
into engineering and prior to an FFGA. Additionally, ratings may be
updated while a project is in engineering if the project scope and cost
have changed materially since the most recent rating was assigned.
(c) These ratings will be used to:
(1) Approve or deny advancement of a proposed project into
engineering;
(2) Approve or deny projects for ESWAs and FFGAs; and
(3) Support annual funding recommendations to Congress in the
Annual Report on Funding Recommendations required by 49 U.S.C.
5309(o)(1).
(d) [Reserved]
Sec. 611.209 [Reserved]
Sec. 611.211 New Starts Before and After study.
(a) During engineering, project sponsors shall submit to FTA a plan
for collection and analysis of information to identify the
characteristics, costs, and impacts of the New Starts project and the
accuracy of the forecasts prepared during development of the project.
(1) The Before and After study plan shall consider:
(i) Characteristics including the physical scope of the project,
the service provided by the project, any other changes in service
provided by the transit system, and the schedule of transit fares;
(ii) Costs including the capital costs of the project and the
operating and maintenance costs of the transit system in appropriate
detail; and
(iii) Impacts including changes in transit service quality,
ridership, and fare levels.
(2) The plan shall provide for:
(i) Documentation and preservation of the predicted scope, service
levels, capital costs, operating costs, and ridership of the project;
(ii) Collection of ``before'' data on the transit service levels
and ridership patterns of the current transit system including origins
and destinations, access modes, trip purposes, and rider
characteristics;
(iii) Documentation of the actual capital costs of the as-built
project;
(iv) Collection of ``after'' data two years after opening of the
project, including the analogous information on transit service levels
and ridership patterns, plus information on operating costs of the
transit system in appropriate detail;
[[Page 28234]]
(v) Analysis of the costs and impacts of the project; and
(vi) Analysis of the consistency of the predicted and actual
characteristics, costs, and impacts of the project and identification
of the sources of any differences.
(vii) Preparation of a final report within three years of project
opening to present the actual characteristics, costs, and impacts of
the project and an assessment of the accuracy of the predictions of
these outcomes.
(3) For funding purposes, preparation of the plan for collection
and analysis of data is an eligible part of the proposed project.
(b) The FFGA will require implementation of the plan prepared in
accordance with paragraph (a) of this section.
(1) Satisfactory progress on implementation of the plan required
under paragraph (a) of this section shall be a prerequisite to approval
of an FFGA.
(2) For funding purposes, collection of the ``before'' data,
collection of the ``after'' data, and the development and reporting of
findings are eligible parts of the proposed project.
(3) FTA may condition receipt of funding provided for the project
in the FFGA upon satisfactory submission of the report required under
this section.
Subpart C--Small Starts
Sec. 611.301 Small Starts eligibility.
(a) To be eligible for a project development grant under this part
for a new fixed guideway, an extension to a fixed guideway, or a
corridor-based bus rapid transit system, a project must:
(1) Be a Small Starts project as defined in Sec. 611.105; and
(2) Be approved into project development by FTA.
(b) To be eligible for a construction grant under this part for a
new fixed guideway, an extension to a fixed guideway, or a corridor-
based bus rapid system, a project must:
(1) Be a Small Starts project as defined in Sec. 611.105;
(2) Receive a ``medium'' or better rating on project justification
pursuant to Sec. 611.303;
(3) Receive a ``medium'' or better rating on local financial
commitment pursuant to Sec. 611.305; and
(4) Meet the other requirements of 49 U.S.C. 5309.
Sec. 611.303 Small Starts project justification criteria.
(a) To perform the statutorily required evaluations and assign
ratings for project justification, FTA will evaluate information
developed locally through the planning, NEPA and project development
processes.
(1) The method used by FTA to evaluate and rate projects will be a
multiple measure approach by which the merits of candidate projects
will be evaluated in terms of each of the criteria specified by this
section.
(2) The measures for these criteria are specified in policy
guidance. This policy guidance, which is subject to a public comment
period, is issued periodically by FTA whenever significant changes are
proposed, but not less frequently than every two years, as required by
49 U.S.C. 5309(g)(5).
(3) The measures will be applied to projects defined by project
sponsors that are proposed to FTA for Small Starts funding.
(4) The ratings for each of the criteria in Sec. 611.303(b)(1)
through (6) will be expressed in terms of descriptive indicators, as
follows: ``high,'' ``medium-high,'' ``medium,'' ``medium-low,'' or
``low.''
(b) The project justification criteria are as follows:
(1) Cost-effectiveness, as measured by cost per rider.
(2) Economic development effects.
(3) Existing land use.
(4) Mobility improvements.
(5) Environmental benefits.
(6) Congestion relief.
(c) In evaluating proposed Small Starts projects under these
criteria:
(1) As a candidate project proceeds through project development, a
greater level of commitment will be expected with respect to transit
supportive land use plans and policies and the project sponsor's
technical capacity to implement the project.
(2) For any criteria under paragraph (b) of this section that use
incremental measures, the point for comparison will be the no-build
alternative.
(d) FTA may amend the measures for these project justification
criteria. Any such amendment will be included in policy guidance and
subject to a public comment process.
(e) From time to time FTA may publish through policy guidance
standards based on characteristics of projects and/or corridors to be
served. If a proposed project can meet the established standards, FTA
may assign an automatic rating on one or more of the project
justification criteria outlined in this section.
(f) The individual ratings for each of the criteria described in
this section will be combined into a summary project justification
rating of ``high,'' ``medium-high,'' ``medium,'' ``medium-low,'' or
``low'' through a process that gives comparable, but not necessarily
equal, weight to each criterion. The process by which the project
justification rating will be developed, including the assigned weights,
will be described in policy guidance.
Sec. 611.305 Small Starts local financial commitment criteria.
In order to approve a grant under 49 U.S.C. 5309 for a Small Starts
project, FTA must find that the proposed project is supported by an
acceptable degree of local financial commitment, as required by 49
U.S.C. 5309(h)(3)(c). The local financial commitment to a proposed
project will be evaluated according to the following measures:
(a) The proposed share of the project's capital costs to be funded
from sources other than Small Starts funds, including both the non-
Small Starts match required by Federal law and any additional state,
local, or other Federal capital funding (known as ``overmatch'');
(b) The current capital and operating financial condition of the
project sponsor;
(c) The commitment of capital and operating funds for the project
and the entire transit system including consideration of private
contributions; and
(d) The accuracy and reliability of the capital and operating costs
and revenue estimates and the financial capacity of the project
sponsor.
(e) From time to time FTA may publish through policy guidance
standards based on characteristics of projects and/or the corridors to
be served. If a proposed project can meet the established standards,
FTA may assign an automatic rating on one or more of the local
financial commitment criteria outlined in this section.
(f) FTA may amend the measures for these local financial commitment
criteria. Any such amendment will be included in policy guidance and
subject to a public comment process.
(g) As a candidate project proceeds through project development, a
greater level of local financial commitment will be expected.
(h) For each proposed project, ratings for paragraphs (a) through
(d) of this section will be reported in terms of descriptive
indicators, as follows: ``high,'' ``medium-high,'' ``medium,''
``medium-low,'' or ``low.'' For paragraph (a) of this section, the
percentage of Small Starts funding sought from 49 U.S.C. 5309 will be
rated and used to develop the summary local financial commitment
rating, but only if it improves the rating and not if it worsens the
rating.
[[Page 28235]]
(i) The ratings for each measure described in this section will be
combined into a summary local financial commitment rating of ``high,''
``medium-high,'' ``medium,'' ``medium-low,'' or ``low.'' The process by
which the summary local financial commitment rating will be developed,
including the assigned weights to each of the measures, will be
described in policy guidance.
Sec. 611.307 Overall Small Starts project ratings.
(a) The summary ratings developed for project justification and
local financial commitment (Sec. Sec. 611.303(f) and 611.305(i)) will
form the basis for the overall rating for each project.
(b) FTA will assign overall project ratings to each proposed
project of ``high,'' ``medium-high, ``medium,'' ``medium-low,'' or
``low,'' as required by 49 U.S.C. 5309(e)(8).
(1) These ratings will indicate the overall merit of a proposed
Small Starts project at the time of evaluation.
(2) Ratings for individual projects will be developed prior to an
EGA.
(c) These ratings will be used to:
(1) Approve or deny projects for EGAs; and
(2) Support annual funding recommendations to Congress in the
Annual Report on Funding Recommendations required by 49 U.S.C.
5309(k)(1).
(d) FTA will assign overall ratings for proposed Small Starts
projects by averaging the summary ratings for project justification and
local financial commitment. When the average of these ratings is
unclear (e.g., summary project justification rating of ``medium-high''
and summary local financial commitment rating of ``medium''), FTA will
round up the overall rating to the higher rating except in the
following circumstances:
(1) A ``medium'' overall rating requires a rating of at least
``medium'' on both project justification and local financial
commitment.
(2) If a project receives a ``low'' rating on either project
justification or local financial commitment, the overall rating will be
``low.''
Sec. 611.309 [Reserved]
Issued in Washington, DC, under authority delegated in 49 CFR
1.91.
Tariq Bokhari,
Acting Administrator.
[FR Doc. 2025-12154 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-57-P