Alarming developments for federal transit funding

Ed. note: Read the “background” below for a detailed explanation of what this means.

Contact Your Senator or Congressman TODAY as they work on the Transportation Appropriations bill. Ask them to STOP the proposed rule for New Starts and Small Starts and give US DOT clear directive that FTA must:

  • Comparably weigh all 6 project justification criteria, recognizing the importance of transit-supportive land use and economic development to fostering successful projects;
  • Maintain the current definition of fixed-guideway transit; and
  • Follow the policy directives and funding levlels created for transit in SAFETEA-LU, the federal transportation bill of 2005.

Background:

The Federal Transit Administration (FTA) has issued a notice of proposed rule making (NPRM) for the New and Small Starts program that provides funding for major fixed guideway capital projects such as Light Rail, Heavy Rail, and Bus Rapid Transit. The proposed rule is alarming on a number of levels. For communities trying to invest in more transit options and supportive land use and development, criteria like these are downgraded in the evaluation of projects. Environmental considerations are essentially dismissed. And, US DOT is also proposing to redefine eligible projects for transit new starts funding to include highway lanes that use tolling.

The FY 2008 appropriations bill moving through Congress is an opportunity to formally weigh in and stop or alter the proposed rule. If finalized, the new rule will hamper the ability to build new transit lines for the next decade. This is the wrong direction to take at a time when we as a nation are working to address global climate change, promote smarter growth and provide Americans with more transportation choices.

Why is this important? The proposed rule ignores current transportation law requiring US DOT to consider a variety of factors when evaluating proposed projects and places the focus instead primarily on cost issues. It also adds increased federal intervention into the local decision making process.

Issues with proposed rules:

1. It makes FTA’s Cost Effectiveness Index the primary factor in deciding the fate of funding for New Starts projects.

Almost every city that is looking to build new transit projects is worried about this measure, and now its being made even stronger. The Cost Effectiveness Index is a complex federal model that essentially rates a project based on its full costs weighed against time savings benefits. This Index has been a key reason why several worthy transit projects have not moved forward, or decisions have been made that reduce the long-term effectiveness of new projects to generate ridership, promote smarter development around transit, or serve low income communities. The decision not to tunnel the rail extension through Tysons Corner in Virgina is but one example of its impact

2. The importance of land use and economic development measures are reduced or ignored by the FTA

Congress elevated land use and added economic development to the list of 6 project justification criteria in the last federal transportation bill, SAFETEA-LU. FTA ignores this and has combined them into one measure with a combined weight of 20% in the overall ratings process. This is contrary to existing law and goes directly against local efforts to use transit investment to support smart growth and transit-oriented development, address climate change through transit, and coordinate land use planning, community revitalization and transportation choice.

3. US DOT proposes to use transit funding to build toll lanes

A number of communities are beginning to look seriously at congestion pricing and high occupancy toll lanes as new tools in fighting traffic congestion. Road pricing has the potential to be an important strategy in better capturing the true costs of congestion, but using transit funds to supplement existing highway funding is questionable. Over 300 transit new starts were authorized in SAFETEA-LU, yet only about a dozen will be funded in the 6-year bill. Quite simply, demand far outstrips supply. The heightened demand for this funding is one reason cited by FTA over the years as to the rigor and complexity of its evaluation process. Adding a new category of eligible projects will only make it harder to fund new transit in this country and provide Americans with more sustainable transportation choices.

Contact us with any questions or leave them in the comments, and we’ll post updates on any developments. Visit this page for more information on the Transportation Appropriation Subcomittee.

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