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This rulemaking proposes new, experimental procedures to encourage greater use of public-private partnerships and private investment in public transportation capital projects (PIPP). The proposed PIPP is aimed specifically at increased project management flexibility, more innovation in funding, improved efficiency, timely project implementation, and new revenue streams.

Statement of Need:

The Federal Transit Administration is proposing new, experimental procedures to encourage increased project management flexibility, more innovation in project funding, improved efficiency, timely project implementation and new revenue streams. A primary goal is to address impediments to the greater use of public-private partnerships (P3s) and private investment in public transportation capital projects (Private Investment Project Procedures or PIPP).

Summary of the Legal Basis:

Section 20013(b)(1) of the Moving Ahead for Progress in the 21st Century Act (MAP-21), Public Law 1120141 (July 6, 2012), directed FTA to identify impediments in chapter 53 of title 49 of the U.S. Code, and any regulations or practices thereunder, and private investment in public transportation capital projects, and to develop and implement procedures on a project basis that address such impediments in a manner similar to the Special Experimental Project Number 15 of the Federal Highway Administration (FHWA) commonly referred to as "SEP-15". Section 20013(b)(5) of MAP–21 requires the issuance of a rule to carry out the procedures and approaches developed under section 20013(b)(1).

Alternatives:

Promulgation of a regulation is required by statute to implement these procedures.

Anticipated Costs and Benefits:

FTA has examined the potential economic impacts of this rulemaking and has determined that this rulemaking is not economically significant because it will not result in an effect on the economy of $100 million or more. This action is considered deregulatory and comments are requested regarding the costs savings of this action.

Risks:

The proposals set forth in this rule will not adversely affect the economy, interfere with actions taken or planned by other agencies, or generally alter the budgetary impact of any entitlements, grants, user fees, or loan programs.