Moving Ahead for Progress in the 21st Century

Florida Department of Transportation District 5

David Mulholland, Grady Smith, and Jeff Boothe

December 6, 2012

MAP-21 Overview

2

Recap of MAP-21• Adopted by Congress on June 29, 2012 and signed into law by

President Obama on July 6, 2012• Provides $102.6 billion for FY 13 and FY 14

• Highways - $40.4 B in FY 13 and $41 B in FY 14• Transit - $10.5 B in FY 13 and $10.7 B in FY 14

• Most provisions took effect on October 1, 2012

• However, Highway Trust Fund and Mass Transit Account are both expected to be insolvent in FY 15

• Critical need for Congress to develop a long-term funding solution• Outside possibility that “fiscal cliff” resolution would include

an increase in the gasoline tax• 15¢ increase (5¢ per year for 3 years) recommended in

Bowles-Simpson

3

Major Themes of MAP-21• Provides stable funding for two fiscal years

• Simplifies and streamlines federal highway and transit programs

• Greater emphasis on safety and state of good repair

• Accelerate project delivery and innovative finance

• Introduces the use of performance measures and scenario-based planning at the State and metropolitan level

• Requires transit representation on MPO Boards within 2-years

4

FY 13 Highway Funding

5

Restructuring of Highway Programs

6

Continuing Ability to Flex Monies

• MAP-21 retains provisions to flex monies to transit from STP and CMAQ• Expanded eligibility under STP for congestion pricing, ferry boats

and terminals, off system bridges, border infrastructure, and congestion pricing

• Enhancements eliminated and replaced by “Transportation Alternatives” that expands eligibility to cover Safe Routes to Schools, Recreational Trails and roadways within ROW of former Interstate or other divided highways• 50% within local control while 50% can be transferred by

States to other programs

• Operating Assistance – FHWA will issue further guidance regarding use of CMAQ for first three years of operations

7

Planning and PerformancePerformance measures must be incorporated into long-range planning and short-term programming processes

• LRTPs, TIPs and STIPs must show the progress that is expected to be achieved by planned decisions and investments

• DOT will evaluate the appropriateness of State targets and the progress that the State is making in achieving performance targets

• States and MPO plans will include performance reports that described the progress made toward achieving performance targets

Scenario Planning• MPOs can develop multiple scenarios for LRTPs, but scenarios

must be evaluated against performance measures• Used to assess pros and cons, as well as, effects of each

scenario• FHWA is to conduct a study on costs and benefits associated

with scenario planning in developing the metropolitan transportation plan

• Analysis will also look at technical and financial capacity of MPOs to develop planning scenarios

8

Definitions

• Vision: Long term, desired future for the transportation system

• Goals: Generalized statements that broadly relate the physical environment to values

• Objectives: Specific measurable statements related to the attainment of goals

• Performance Measures: Indicators that capture each objective’s fundamental outcome

• Targets: Concrete description of the objective

9

“SMART” Objectives

• Specific: Sufficiently descriptive but not dictating approach

• Measurable: Quantitative (number, degree)

• Agreed: Consensus on meaning and value

• Realistic: Can be accomplished with expected resources

• Time – bound: Identifies timeframe

10

Performance Measures Structure• MAP-21 requires performance measures to increase the

accountability and transparency of the Federal-aid highway program and improve project decision making through performance based planning and programming

• Seven national goal areas: safety, infrastructure condition, congestion, system reliability, freight movement and economic vitality, environmental sustainability, reduced project delays

• DOT will establish measures in consultation with State DOTs, MPOs and other stakeholders

• States are required to establish performance targets that reflect performance measures established by DOT

• MPOs and transit operators, will set targets for each measure, incorporate in plans and programs and report progress

11

National Performance Measures

National Performance MeasureNational Goal Area• Safety

• Infrastructure Condition

• Congestion Reduction

• System Reliability

• Freight Movement and Economic Vitality

• Environmental Sustainability

• Serious injuries under VMT (HSIP)• Fatalities per VMT (HSIP)• Number of serious injuries (HSIP)• Number of fatalities (HSIP)

• Bridge condition on the NHS (NHPP)• Pavement condition of Interstate System

(NHPP)• Pavement condition of the NHS (NHPP)

• Traffic congestion (CMAQ)

• Performance of Interstate System (NHPP)

• Performance of the NHS (NHPP)• Freight movement on the Interstate

(NHPP)

• On-road mobile source emissions (CMAQ)

12

Target Setting

• Aspirational vs. realistic targets

• No single method appropriate for all areas

• NCHRP Report 666 identifies several potential approaches to target setting

• Policy driven• Modeling• Consensus-based• Customer feedback• Benchmarks

13

What is Scenario Planning?Scenario planning: • Creates multiple plausible stories about what the future

could be

• Develops a common understanding of issues and driving forces of change that affect transportation

• Helps assess and prepare for possible future conditions

14

• Integrates transportation and land use planning.

• Helps explain long-term consequences of today’s decisions.

• Demonstrates how trade-offs can lead to desired futures.

• Actively engages stakeholders.

• Similar to visioning and alternatives analysis but: • Asks “what if…?”• Compares and assesses future likely land uses.• Examines interactions between multiple factors

and trends

What is Scenario Planning?

15

TIFIATransportation Infrastructure Finance and Innovation Act (TIFIA)

• Provides credit assistance to eligible surface transportation projects, including highways and transit

• Secured Loans – direct loans with flexible repayment terms and providing combined construction and permanent financing – up to 49% of project cost

• Loan Guarantees – full-faith and credit loan guarantees by Federal government to institutional investors – up to 49% of project cost

• Lines of Credit – contingent sources of funding in form of loans that may be drawn down during first ten years of construction – up to 33% of project cost

• Master Credit Agreements – contingent commitment of future TIFIA assistance for a program of projects secured by a common revenue pledge

• Program expanded from $250 M per year to $750 M in FY 13 and $1 B in FY 14

• Must be repaid through dedicated funding sources that secure the obligation, such as tolls, user fees or payments

16

TIFIA (Cont.)Transportation Infrastructure Finance and Innovation Act (TIFIA)• Repayment of a loan may begin five years after substantial

completion or project, and must be fully repaid within 35 years • Application Process –

• First submit letters of interest (LOI) using the form available on TIFIA's website

• Describe project location, purpose and cost• Outline of Project Financial plan, including requested assistance and

proposed obligor• Provide status of environmental review• Provide information regarding satisfaction of TIFIA eligibility requirements• DOT will review LOIs and request further information as necessary• Upon completion of the review and a determination of eligibility, DOT will

invite an application for credit assistance• Notice of Funding Availability – July 31, 2012 (77 Fed. Reg. 454110)

17

Accelerating Project Delivery

• States can assume FHWA’s role in NEPA process (excluding Clean Air Act, Clean Water Act and Endangered Species Act), including direct coordination with Federal environmental agencies (i.e. EPA, DOI, FWS)

• Use of construction manager/general contractor (CMGC) method of contracting

• Accelerated completion of complex projects within four years when State and other project sponsors request technical assistance

• States and other project sponsors can request use of authority for projects that have been under development for at least two years

• Up to 100% Federal share for some innovative techniques• Limited to 10% of available highway funding for States• Projects that contain innovative project delivery techniques, contain

innovative technologies (ITS, recycling technology), or accelerates project delivery (incentives for early completion of the project, program or activity)

18

Accelerating Project Delivery

Demonstration project for lump sum payments for purchase of ROW

• State has authority to acquire the real property interest under State law • Will not cause any significant adverse environmental impact• Will not limit choice of reasonable alternatives for project or otherwise

influence the decision of the Secretary on any required approval • Does not prevent lead agency from making an impartial decision as to

whether to accept an alternative that is being considered• Consistent with the State transportation planning processes• Acquired through negotiation, without threat of condemnation and consistent

with STURRA and Civil Rights Act• Secretary shall complete the review process under NEPA• Property interest shall have independent utility for purposes of NEPA and limit

consideration of alternatives for future transportation improvements with respect to real property interest

• Acquisition may consist of a specific parcel, portion of transportation corridor, or an entire transportation corridor

• May not be developed in anticipation of required environmental reviews

19

Transit FY 13 Funding

20

Highlight of Transit Program Changes

21

Urbanized Area Formula Programs

• Urbanized Area Formula ($4,367.95 M)• Prior project eligibility is retained but expanded to

include jobs access and reverse commute• Provide funding for State Safety Oversight• Retains operating assistance for areas below 200,000• Limited operating assistance for areas above 200,000

which operates up to 100 fixed route buses during peak hours

• 1% mandatory set aside for transportation security projects

• Growing States and High Intensity State Formula ($518.70 M)• Retains formula program first included in SAFETEA-LU

22

• Consolidates New Freedom and Elderly and Disabled Program

• Eligible Activities• 55% for capital projects to meet needs of seniors• 45% for transit projects to provide access to service or

exceed ADA

• Funding• 60% to designated recipients in urbanized areas (above

200,000)• 20% each to states for small urbanized area and for rural

areas• Monies can be used for operating assistance – 50% federal

share• Capital projects match – 80% federal share

Enhanced Mobility for Seniors/Persons with Disabilities

23

Other Formula Programs

• Rural Area Formula ($599.5 M)• Incorporates rural transit ($537.6 M), tribal discretionary grant

program ($30 M), Rural Transit Assistance Program ($11.9 M) and Appalachian Development Public Transportation Assistance ($30 M)

• Federal share is 80% for capital and 50% for operating assistance

• Includes planning, capital, operating, JARC and acquisition of public transportation services

• Bus and Bus Facilities ($422 M)• Shift from a discretionary to formula program• Overall funding reduced by 50%• First $65.5 million allocated with each state receiving $1.25 M

with remaining $356.6 M allocated based on population, vehicle revenue miles and passenger miles

24

Transit Planning Program

• Performance-Based Planning Process• MPOs and States to develop transportation plans through

performance-based planning• Transit performance-based planning focus is on asset

management and State of Good Repair

• Regional Transportation Planning Organizations may be created for nonmetropolitan areas

• Within two years, MPOs in urbanized areas designated as TMAs must include transit officials on policy boards

25

Pilot Program for TOD Planning

• Applies to New Starts and Core Capacity Projects

• States and local governmental entities are eligible for funding

• $10 M annually is awarded competitively

• Competitive grants would seek to:• Enhance economic development, ridership and other goals

established during the project development and engineering processes;

• Facilitate multi-modal connectivity and accessibility;• Increase access to transit hubs for bicycle and pedestrian

activity;• Enable mixed-use development;• Identify infrastructure needs associated with the eligible

project; and• Include private sector participation.

26

State of Good Repair Program

• Replaces the Fixed Guideway Modernization program

• Capital projects limited to maintaining a system in a state of good repair

• Two separate funding programs• 97.15% for High Intensity Fixed Guideway

• 50% based on FY 11 Fixed Guideway formula (excludes buses operating on lanes not dedicated to transit use)

• 50% based on revenue vehicle miles and route miles• 2.85% for High Intensity Motorbus

• 60% based on revenue vehicle miles• 40% based on route miles of buses operating on lanes not fully reserved for

public transportation

• Bus Rapid Transit• Design and operation of BRT system will determine in which category

above that investment will be eligible

27

State of Good Repair Program (cont.)

Transit Asset Management• FTA will introduce a regulation defining “state of good

repair”• Regulation will set standards for measuring condition of

capital assets• Will establish performance standards for state of good

repair with each transit agency required to set targets• Transit agencies will be required to report condition of

assets to the National Transit Database (NTD)• Condition of their system and any change in the condition• Targets set and progress towards meeting those targets

28

Expanded FTA Safety Authority

• Create/establish a framework to oversee safety of transit systems

• Updates State Safety Oversight (SSO) program• States must assume oversight responsibility for rail safety, enforce federal law

and establish an SSO• SSO must encompass new capacity, mandated organizational structure and

financing• FTA must approve SSO programs and certify adequacy of SSO

• Expanded FTA enforcement authority • Inspect and audit all transit systems• Make reports and issue directives• Issue subpoenas and take depositions• Require production of documents• Prescribe record-keeping and reporting requirements• Investigate accidents and incidents• Enter and inspect equipment, rolling stock, operations and records

29

Expanded FTA Safety Authority (cont.)

• FTA will develop safety certification program that all federal and State public safety personnel must complete

• Use up to .5% of section of section 5307 to pay for participation

• All transit agencies must develop an agency safety plan• Identify risks and minimize exposure to hazards• Adequately trained safety officer report to GM• Performance targets• Safety training program

30

New Starts/Core Capacity Program

• Expand eligibility to Core Capacity projects• Substantial investment that increases capacity of system

by 10%• Can’t be used for a state of good repair project or to

acquire rolling stock not associated with expanding capacity

• Can be used for electrification, expanding station platforms, and constructing in-fill stations

• Eliminate Alternatives Analysis and Baseline Alternative

• Redefines cost effectiveness to be cost per rider/boarding

31

Alternatives Analysis

Final DesignCommitment of Non-Federal Funding, Construction Plans, ROW Acquisition,

Before-After Data Collection Plan, FTA Evaluation for FFGA,

Begin Negotiations

Proj

ect M

anag

emen

t Ove

rsig

ht

Construction

Prior New Starts Process

Preliminary Engineering

Final Design

Construction

Systems Planning

Planning

Full Funding Grant Agreement

Decision Point

Major Development Stage

Legend

Preliminary EngineeringComplete NEPA Process

Refinement of Financial Plan

Select LPA, MPO Action, Develop Criteria,

PMP

FTA Decision On Entry into PE

FTA Decision On Entry into Final Design

32

EngineeringCommitment of Non-Federal Funding,Construction Plans, ROW Acquisition,

FTA Evaluation for FFGA,Begin Negotiations

Proj

ect M

anag

emen

t Ove

rsig

ht

Construction

Project DevelopmentNEPA Process

Locally Preferred AlternativeJustification under New Starts Criteria

FTA Acceptance into Project Development

FTA Decision On Entry into Engineering

Full Funding Grant Agreement

MAP-21 New Starts ProcessSystems Planning

Decision Point

Major Development Stage

Legend

33

Prior New Starts Criteria

Project Justification Rating

Non-Section 5309 Share

Capital Finances

Operating Finances

Cost Effectiveness

Mobility Improvements

Environmental Benefits

Operating Efficiencies

Land Use

Economic Development Other Factors

Financial Rating

Summary Rating

34

MAP-21 New Starts Criteria

Transit Supportive Land Use Patterns and

PoliciesProject Justification

Mobility Improvements

Environmental Benefits

Congestion Relief

Cost Effectiveness Land Use

Local Financial Commitment

Non-Section 5309 Share

Capital Finances

Operating Finances

Economic Development

Summary Rating

35

Prior Small Starts Criteria

Summary Rating

Project Justification

Cost Effectiveness

Economic Development Land Use

Local Financial Commitment

Non-Section 5309 Share

Capital Finances

Operating Finances

36

MAP-21 Small Starts Criteria

Mobility Improvements

Stability, Reliability, Availability

Economic Development

Land UseCost Effectiveness

Operating Efficiencies

Environmental Benefits

Project Benefits Local Financial Commitment

Summary Rating

37

Warrants• Available for New Starts and Core Capacity

• Maximum extent practicable use warrants for project justification, if• Federal share does not exceed $100 M or 50 % of the project cost• Applicant must request use of warrants• Applicant must certify system is in a state of good repair

• Program of Interrelated Projects – New Starts/Core Capacity• Project is in the Engineering phase• Program of projects

• Has logical connectivity• When evaluated as a whole, meets the requirements for project

justification capacity• Supported by a logical implementation plan and by an acceptable

degree of financial commitment• Monies must be repaid if sponsor does not complete program

within a reasonable period of time• Federal share of each project within program may not exceed

80%

38

Program of Interrelated Projects

Available only for New Starts/Core Capacity projects• Project is in the Engineering phase• Program of projects

• has logical connectivity• when evaluated as a whole, meets the requirements for project

justification capacity• supported by a logical implementation plan and by an acceptable

degree of financial commitment• Monies must be repaid if sponsor does not complete program

within a reasonable period of time• Government share of each project within program may not

exceed 80%• Including a project not financed by Federal Government in a

program does not impose Federal governments otherwise applicable

39

Private Sector Participation

• Secretary is directed to promote better coordination between public and private sector providers by providing technical assistance

• Practices and methods to best utilize private sector providers• Educate recipients on laws and regulations that impact providers

• If requested by sponsor of New Start, Small Start or Core Capacity project –• Identify best practices for PPP models in Us and elsewhere• Develop standard PPP transaction models• Perform financial assessments that include calculation of public and private

benefits of PPPs

• Secretary to identify provisions that impede use of PPPS

• Develop guidance to provide transparency and public access to PPP agreements

40

Private Sector Participation

• Develop guidance to provide transparency and public access to PPP agreements

• Any conflicts of interest for parties involved in PPPs;• Tax and financing aspects related to PPPs;• Changes in workforce and wages, benefits, or rules as a result of PPPs;• Estimates of the revenue or savings the PPP will produce for the public entity

and private entity;• Any impacts on other developments and transportation modes as a result of

non-compete clauses contained in PPPS; and,• Any other issue.

• Project sponsors are encouraged to conduct assessments to determine whether a PPP represents a better public and financial benefits

• Rulemaking shall be issued within one year and the Comptroller General is to issue a comprehensive report to Congress within one year of enactment

41

Pilot Project for Innovative Project Delivery

• Available for any New Start, Small Start or Core Capacity Project

• Demonstrate whether innovative project development and delivery methods or innovative finance arrangements can expedite project delivery

• FTA select three projects to participate• At least one shall be requesting more than $100 million• At least one a project seeking less than $100 million

• Government share limited to 50%

• Recipient shall submit an application that identifies the project, a schedule and finance plan, an analysis of the efficiencies of the proposed project development and delivery methods or innovative financing

• Certify system is in a state of good repair and project must have completed NEPA and demonstrate legal, technical and financial capacity

42

Questions / Answers