New FTA Guidelines Seek Increased Flexibility

The Federal Transit Administration has released guidelines that it said will enable transit agencies to be more flexible as they work with developers to build projects that benefit transit systems and their communities.

The new guidelines became effective on Aug. 14.

In a news release the agency said the new guidelines, which apply to agencies that receive FTA funding, reduce FTA involvement in joint development agreements negotiated between project sponsors and their partners, streamline FTA’s project eligibility review process, and clarify prior guidance.”

Joint development projects are defined as projects involving the construction of commercial, residential, or mixed-use projects near transit or on transit system-owned land.

The FTA news release said the public and private investments are coordinated between transit agencies and developers to build the project, producing a revenue stream for both the developer and the transit agency.

FTA Proposes Rule Change for Major Projects

The Federal Transit Administration has proposed redefining its project management oversight rule, which guides federal oversight of large transit capital investments.

The proposed change was recently published in the Federal Register and public comment is being accepted through Oct. 25.

In a news release, FTA said the proposed changes would streamline the PMO regulation by reducing the number of projects subject to FTA project management oversight.

Under the proposal, the new rule would redefine a “major capital project” as a new rail transit or bus rapid transit project — or an extension, rehabilitation or modernization of an existing transit system — with a total project cost of $300 million or more and with a federal investment of $100 million or more.

The previous threshold defined a major capital project as one costing $100 million or more, but did not include federal support as a factor.

FTA Issues Red Tape Cutting Rule

Final rules were issued this week by the Federal Transit Administration that seeks to prompt private sector funding of transit projects.

The Private Investment Project Procedures seeks to identify FTA regulations, practices, procedures or guidance that may impede a public-private partnership or private investment in a project.

The FTA administrator now has the discretion to grant a modification or waiver of a requirement if certain criteria are met.

However, this will not include requirements mandated by the National Environmental Policy Act or any other provision of other federal statutes.

FTA Proposes Waiver of Rules for Certain Projects

The Federal Transit Administration has proposed a rule that it says will make it easier for public-private partnerships to be formed in public transportation projects.

In a notice of proposed rule making, the FTA said that its proposed Private Investment Project Procedures for public transportation capital projects will help the federal government develop “more effective approaches” to spurring private participation and investment in project planning, development, finance, design, construction, maintenance and operation.

Under the rule, entities that receive federal funding for public transportation projects would be allowed to identify specific FTA regulations, practices, procedures or guidance documents that may be an impediment to the use of a public-private partnership or private investment in that project.

The proposed rule calls for those receiving federal funds to apply for a waiver of specific FTA requirements if the recipient can show that the requirements would discourage the use of a public-private partnership in a project. The FTA administrator would have the discretion to modify the requirement or grant a waiver.

However, the new rule could not be used to waive requirements under the National Environmental Policy Act or other provisions of federal statutes.

Public comment on the rule will be accepted until Sept. 29.