[Federal Register Volume 63, Number 197 (Tuesday, October 13, 1998)]
[Rules and Regulations]
[Pages 54600-54610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27245]
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DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
49 CFR Part 268
[FRA Docket No. FRA-98-4545]
RIN 2130-AB29
Magnetic Levitation Transportation Technology Deployment Program
AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).
ACTION: Interim final rule with request for comments.
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SUMMARY: The Transportation Equity Act for the 21st Century (TEA 21)
adds a new section 322 to title 23 of the United States Code. Section
322 provides a total of $55 million for Fiscal Years 1999 through 2001
for transportation systems employing magnetic levitation (``Maglev'').
Section 322 requires FRA to establish project selection criteria, to
solicit applications for funding, to select one or more projects to
receive financial assistance for preconstruction planning activities
and, after completion of such activities, to select one of the projects
to receive financial assistance for final design, engineering, and
construction activities. Section 322 authorizes--but does not
appropriate--additional Federal funds of $950 million for final design
and construction of the most promising project. Section 322 provides
that the portion of the project not covered by the funds provided under
section 322 may be covered by any non-Federal funding sources--
including private (debt and/or equity), State, local, regional, and
other public or public/private entities--as well as by Federally-
provided Surface Transportation Program, and Congestion Mitigation and
Air Quality Improvement Program funds, and from other forms of
financial assistance under TEA 21, such as loans and loan guarantees.
This Interim Final Rule creates a new part to title 49 of the Code
of Federal Regulations which establishes the regulations governing
financial assistance under section 322, including the project selection
criteria, and solicits applications for Maglev planning grants.
DATES: (1) This Interim Final Rule is effective October 13, 1998.
(2) Written comments concerning this rule must be filed on or
before November 12, 1998.
(3) Applications for financial assistance for preconstruction
planning must be received by December 31, 1998.
ADDRESSES: Written comments should refer to the docket number of this
notice
[[Page 54601]]
and be submitted in duplicate to: DOT Central Docket Management
Facility located in room PL-401 at the Plaza level of the Nassif
Building, 400 Seventh Street, SW., Washington, DC 20590. All docket
material will be available for inspection at this address and on the
Internet at http://dms.dot.gov. Docket hours at the Nassif Building are
Monday-Friday, 10 a.m. to 5 p.m., excluding Federal holidays. Those
desiring notification of receipt of comments must include a self-
addressed, stamped envelope or postcard.
Applications for preconstruction planning financial assistance must
be submitted to FRA in accordance with the provisions of this Interim
Final Rule.
FOR FURTHER INFORMATION CONTACT: Neil E. Moyer, Chief--Program
Development Division, FRA, 400 Seventh Street, SW., Washington, DC
20590 (telephone 202-493-6365; E-mail address: Neil.Moyer@fra.dot.gov),
or Gareth Rosenau, Attorney, Office of Chief Counsel, FRA, 400 Seventh
Street, S.W., Mailstop 10, Washington, D.C. 20590 (telephone 202-493-
6054; E-mail address: Gareth.Rosenau@fra.dot.gov).
SUPPLEMENTARY INFORMATION:
Electronic Access
Internet users can access all comments received by the U.S. DOT
Dockets, Room PL-401, by using the universal resource locator (URL):
http://dms.dot.gov. It is available 24 hours each day, 365 days each
year. Please follow the instructions online for more information and
help.
An electronic copy of this document may be downloaded using a modem
and suitable communication software from the Government Printing Office
Electronic Bulletin Board Service at (202) 512-1661. Internet users may
reach the Federal Register's home page at: http://www.nara.gov/fedreg
and the Government Printing Office's database at: http://
www.access.gpo.gov/nara.
What Is Maglev?
This background information covers high-speed Maglev (240 mph) and
does not necessarily apply to the low-speed variations on this
technology, which are covered by a separate program under 23 U.S.C.
322(i).
Maglev is an advanced transport technology in which magnetic forces
lift, propel, and guide a vehicle over a specially designed guideway.
Utilizing state-of-the art electric power and control systems, this
configuration reduces the need for many mechanical parts, thereby
minimizing resistance and permitting excellent acceleration, with
cruising speeds on the order of 240 mph or more. This high performance
would enable Maglev to provide air-competitive trip times at longer
trip distances than other high-speed ground transportation (HSGT)
options. Germany has a Maglev technology ready for commercial use and
planned for application in the Berlin-Hamburg corridor; Japan has a
technologically different system under test. In the more than three
decades since passage of the HSGT Act of 1965, a number of Maglev
system concepts have undergone varying degrees of research and
development in the United States, under private or governmental
auspices. There are no Maglev systems currently operating in commercial
transportation service.
Maglev Deployment Program Under 23 U.S.C. 322
Multi-Stage Competition
Section 1218(a) of TEA 21, Pub. L.105-178, adds a new section 322
to title 23 of the United States Code. Section 322 authorizes the
funding for the design, construction, and deployment of one full-scale
revenue-service Maglev system, to be sponsored by a State or group of
States in a private/public partnership. Section 322 bases the selection
of the system to be deployed on a multi-stage competition. Initially
FRA is to establish selection criteria and to solicit applications,
within 180 days after the enactment of TEA 21 (which would be by
December 6, 1998), for financial assistance for preconstruction
planning activities. FRA may select one or more projects of those
submitted to receive funding for such activities. After the completion
of the preconstruction planning activities, FRA will select one of the
projects to receive financial assistance for final design, engineering,
and construction activities. Any decision to proceed with possible
construction of the project selected after the preconstruction planning
phase of the program will be contingent upon the receipt of
appropriations, and upon completion of appropriate environmental
documentation. The section 322 program, which is described in greater
detail below, will be referred to as the ``Maglev Deployment Program.''
This Interim Final Rule establishes the regulations governing
financial assistance under the Maglev Deployment Program, including the
project selection criteria, and solicits applications for Maglev
planning grants.
Federal Funding of the Maglev Deployment Program
Section 322 provides two types of funding from the Highway Trust
Fund for the Maglev Deployment Program; for purposes of this Interim
Final Rule, these funds are referred to as ``Federal Maglev Funds.''
First, $55 million has been made available as contract authority for
Fiscal Years 1999 through 2001; this would be used to fund the
competition in all its phases and could also be used for final design,
engineering, and construction activities of the selected project. Of
the $55 million, the Congress has made available up to $15 million for
Fiscal Year 1999, up to $15 million for Fiscal Year 2000, and $25
million for Fiscal Year 2001. Second, $950 million has been authorized
to be appropriated for Fiscal Years 2000 through 2003. No guarantee
exists that the Executive Branch will request, or that Congress will
appropriate, the $950 million (or any portion of that amount) to build
a Maglev project. Of the $950 million, $200 million is authorized to be
appropriated for each of Fiscal Years 2000 and 2001, $250 million for
Fiscal Year 2002, and $300 million for Fiscal Year 2003.
Section 322 also provides that the portion of the project not
covered by Federal Maglev Funds may be supported by any non-Federal
funding sources--including private (debt and/or equity), State, local,
regional, and other public or public/private entities--as well as by
Federally-provided Surface Transportation Program (``STP'') (23 U.S.C.
133), and Congestion Mitigation and Air Quality Improvement Program
(``CMAQ'') (23 U.S.C. 149) funds, and by other forms of financial
assistance provided under title 23, or under TEA 21, such as loans and
loan guarantees.
Standards a Maglev Project Must Meet To Be Eligible for Financial
Assistance
Section 322 provides that in order to be eligible to receive
financial assistance, a Maglev project shall:
(1) Involve a segment or segments of a high-speed ground
transportation corridor that exhibit partnership potential;
(2) Require an amount of Federal funds for project financing that
will not exceed the sum of Federal Maglev Funds, and the amounts made
available by States under STP and CMAQ;
(3) Result in an operating transportation facility that provides a
revenue producing service;
(4) Be undertaken through a public and private partnership, with at
least \1/3\ of full project costs paid using non-
[[Page 54602]]
Federal funds--funds provided under STP and CMAQ qualify as non-Federal
fund for purposes of the \1/3\ match requirement;
(5) Satisfy applicable statewide and metropolitan planning
requirements;
(6) Be approved by FRA based on an application submitted by a State
or authority designated by 1 or more States;
(7) To the extent that non-United States Maglev technology is used
within the United States, be carried out as a technology transfer
project; and
(8) Be carried out using materials at least 70 percent of which are
manufactured in the United States.
The Interim Final Rule explains these requirements in more detail.
FRA recognizes that applicants for preconstruction planning
assistance will not have detailed information with respect to these
requirements, and that the purpose of the preconstruction planning
assistance is to develop much of this information with respect to a
particular Maglev project. The preconstruction planning application
requirements of the Interim Final Rule are designed to elicit whatever
information an applicant may have pertaining to these requirements and
to secure a commitment from the applicant that the applicant fully
intends to comply with these requirements if the project is selected as
the project to receive financing for final design, engineering, and
construction activities.
Maglev Project Selection Criteria
Section 322 requires the agency to establish criteria for selecting
which eligible projects will receive financial assistance. The criteria
are required to include the extent to which--
(1) A project is nationally significant, including the extent to
which the project will demonstrate the feasibility of deployment of
Maglev technology throughout the United States;
(2) Timely implementation of the project will reduce congestion in
other modes of transportation and reduce the need for additional
highway or airport construction;
(3) States, regions, and localities financially contribute to the
project; implementation of the project will create new jobs in
traditional and emerging industries;
(4) The project will augment Maglev networks identified as having
partnership potential;
(5) Financial assistance will foster public and private
partnerships for infrastructure development and attract private debt or
equity investment;
(6) Financial assistance would foster the timely implementation of
a project; and
(7) Life-cycle costs in design and engineering are considered and
enhanced.
The Interim Final Rule establishes the criteria FRA will use in
selecting projects to receive funding; these criteria are an
elaboration of the list of requirements contained in section 322.
FRA recognizes that applicants for preconstruction planning
assistance may not have detailed information with respect to each of
these criteria, and that the purpose of the preconstruction planning
assistance is to develop much of this information with respect to a
particular Maglev project. The preconstruction planning application
requirements of the Interim Final Rule are designed to elicit whatever
information an applicant may have pertaining to these criteria. As
previously noted, FRA will select one of the various Maglev projects
that receives preconstruction planning grants to receive financing for
final design, engineering, and construction activities. The project
selected must meet all of the project eligibility standards contained
in this Interim Final Rule. If more than one project meets these
standards, FRA will evaluate and compare the eligible projects
according to the project selection criteria.
Eligible Project Costs
Section 322 provides that the following project costs are eligible
to be paid with Federal Maglev Funds made available under section 322:
preconstruction planning activities and the capital cost of the fixed
guideway infrastructure of a Maglev project, including land, piers,
guideways, propulsion equipment and other components attached to
guideways, power distribution facilities (including substations),
control and communications facilities, access roads, and storage,
repair and maintenance facilities. The costs of stations, vehicles, and
equipment are not eligible project costs.
Preconstruction planning activities that are eligible to be funded
under section 322 include:
(1) Preparation of such feasibility studies, major investment
studies, and environmental impact statements and assessments as are
required under State law;
(2) Pricing of the final design, engineering, and construction
activities proposed to be assisted; and
(3) Such other activities as are necessary to provide FRA with
sufficient information to evaluate whether a project should receive
financial assistance for final design, engineering, and construction
activities.
Construction Contracts Must Comply With the Davis Bacon Act
Section 322 requires that the ``Prevailing Wages'' requirement of
the Davis Bacon Act (40 U.S.C. 276a--276a-5) applies to construction
contracts under the Maglev Deployment Program.
FRA's Outreach Efforts Regarding the Maglev Deployment Program
FRA is conducting an extensive outreach program to inform the
public of the availability of funding of new and expanded programs
under TEA 21, including the Maglev Deployment Program. Based on
discussions to date, FRA believes that fewer than 10 States are likely
to apply for financial assistance under the Maglev Deployment Program.
Initial Outreach Session
On July 23, 1998, FRA, in cooperation with the High Speed Ground
Transportation Association and Amtrak, held an all day meeting to
explain the TEA 21 rail-related programs to representatives of
constituent interest groups at Union Station, Washington D.C. Included
was a session on the Maglev Deployment Program. In conjunction with
this meeting FRA made available to all participants a loose leaf
notebook with information regarding each of the new programs. The
Maglev information included an earlier draft of the substance of this
rule, in the form of guidelines for applicants for planning grants, a
``fact sheet'' on the program, and the statutory language behind it.
The guidelines were also published on FRA's internet web page. Part of
the Maglev session included a question and answer period involving a
number of interested persons attending the meeting. Attendance was
about 65.
``Piggybacking'' on Other DOT Outreach Meetings
Other DOT components are having similar outreach meetings on parts
of TEA 21 of particular interest to them; examples are an early Federal
Highway Administration-sponsored meeting with representatives of most
State DOTs in Dallas, and a recent Federal Transit Administration-
sponsored meeting in Harrisburg. FRA has been represented at these
meetings and has briefly described the Maglev Deployment Program.
Three Other Outreach Sessions
FRA has scheduled two other meetings similar to the Union Station
meeting described above. They will
[[Page 54603]]
each have similar Maglev components, including publication of the
Interim Final Rule. The first will be held in Los Angeles on October
23. Another, session is planned to be held in New Orleans. In October,
1998, FRA also plans to schedule at least one meeting specifically
addressing the Maglev Deployment Program and inviting the general
public as well as States known to have a particular interest and which
are likely to apply for financial assistance. This session will include
a focused question and answer period intended to clarify for all
concerned any issues associated with the Interim Final Rule.
Why FRA Is Issuing an Interim Final Rule
This document is published as an Interim Final Rule, without prior
notice and opportunity for comment. Because this regulation relates to
a grant program, the requirements of the Administrative Procedure Act
(APA), 5 U.S.C. 553, are not applicable. Moreover, even if the notice
and comment provisions of the APA did apply, the agency believes that
there is good cause for finding that providing notice and comment in
connection with this rulemaking action is impracticable, unnecessary,
and contrary to the public interest.
FRA's decision to proceed with an Interim Final Rule in this
proceeding rather than a notice of proposed rulemaking was guided by
several considerations. First, the enabling legislation requires the
Secretary to solicit applications from States or authorities designated
by one or more States within 180 days after the date of enactment of
TEA 21 (June 9, 1998). This time constraint simply did not provide
sufficient time for FRA to frame an approach to implementing the
program, develop proposed implementing regulations, consult with
interested groups, and publish draft and final regulations by December
6, 1998 (180 days after enactment). The development of appropriate
implementing procedures was further complicated by Congressional
consideration of TEA 21 technical corrections legislation that was
ultimately adopted on July 22, 1998 (Pub. L. 105-206). The technical
corrections legislation contained modifications to a number of TEA 21
programs, including the Maglev Deployment Program. FRA's decision to
proceed with an Interim Final Rule was also bolstered by an extensive
outreach conducted with the interested Maglev and state transportation
communities. States officials and others with an interest in Maglev
development had an opportunity to receive briefings from agency
officials and to review and comment on FRA's proposed approach to the
application and award processes before FRA completed this Interim Final
Rule.
In addition, States need the information contained in this Interim
Final Rule immediately in order to determine what type of Maglev
projects qualify for preconstruction planning assistance, to gather
supporting information, and to begin to prepare applications
immediately upon this Interim Final Rule's publication in the Federal
Register. For all of these reasons, pursuant to 5 U.S.C. 808 (Pub. L.
104-121) (The Congressional review provisions of the Small Business
Regulatory Enforcement Fairness Act), the agency also, for good cause,
finds that notice and public procedure are impracticable, unnecessary,
and contrary to the public interest, and, therefore, this Interim Final
Rule can be made effective upon publication.
As an Interim Final Rule, this regulation is fully in effect and
binding upon its effective date. No further regulatory action by the
agency is necessary to make the rule effective. However, in order to
benefit from comments which interested parties and the public may have,
the agency is requesting that comments be submitted to the docket for
this rule. All comments submitted in response to this Interim Final
Rule, will be considered by the agency. Following the close of the
comment period, the agency will publish a document responding to the
comments and, if appropriate, the agency will amend the provisions of
this Interim Final Rule.
Section-by-Section Analysis
Subpart A--Overview
Section 268.1 Definitions
The terms used in this part are defined; many of these definitions
are taken from 23 U.S.C. 322.
Section 268.3 Different Phases of the Maglev Deployment Program
This section identifies the five different phases of this program,
and FRA's projected timetable for implementing these phases. In Phase
I, States will submit applications, and FRA will select projects for
preconstruction planning assistance. In Phase II, financial assistance
recipients will prepare and submit to FRA project descriptions and
supporting preconstruction planning reports and environmental
documentation (environmental assessment (EA)). After completion of the
EA, each financial assistance recipient will initiate activities aimed
at preparing a site-specific draft environmental impact statement
(``EIS''). In Phase III, FRA will select the one project which could
ultimately be constructed, subject to appropriation of funds to cover
such construction. Each recipient of financial assistance will be
expected to continue to work on the site-specific draft EIS in Phase
III. In Phase IV, the financial assistance recipient selected in Phase
III will undertake final design and engineering work for the selected
project together with completing the site-specific final EIS. Detailed
agreements for the construction and operation of the project would be
negotiated. The other planning grant recipients may also elect to
continue their work on preparing a site-specific draft EIS and bring it
to completion. In Phase V, the sponsoring State or State designated
authority would oversee the efforts of the public/private partnership
formed to progress the selected project, to complete the detailed
engineering designs, finance, construct, equip, and operate the project
in revenue service.
Section 268.5 Funding Sources for the Maglev Deployment Program
This section identifies the amounts of funding available under 23
U.S.C. 322 (referred to as ``Federal Maglev Funds'') to support the
program. It also identifies other potential Federal funding sources.
These various funding sources were outlined earlier in this document.
Section 268.7 Federal/State Share and Restrictions on the Uses of
Federal Maglev Funds
This section contains the various restrictions imposed on the use
of Federal Maglev Funds. First, Federal Maglev Funds may only be used
for ``eligible project cost.'' Eligible project costs include
preconstruction planning activities and the capital costs of fixed
guideway infrastructure of a Maglev project. Eligible project costs do
not include costs incurred for Maglev stations, vehicles, and
equipment; these non-eligible project costs would be part of the full
project cost.
Second, the Federal share of full project costs shall be not more
than \2/3\, with the remaining \1/3\ paid by the applicant using non-
Federal funds. For purposes of this cost sharing arrangement, funds
made available to the applicant under STP and CMAQ count as non-Federal
funds. Federal funds made available to the applicant under title 23 and
TEA 21 can be used to pay full project cost. To ensure that the cost
sharing requirements are met,
[[Page 54604]]
all preconstruction planning grants will require States or designated
authorities to provide a match of at least \1/3\ from non-Federal
funds.
Third, Federal Maglev funds provided under a preconstruction
planning grant may be used only for Phase II activities, and for
completion of a site-specific draft EIS; see Sec. 268.3;
Finally, the ``prevailing wages'' requirement of the Davis Bacon
Act (40 U.S.C. 276a--276a-5) applies to any construction contracts
under the Maglev Deployment Program.
Subpart B--Procedures For Financial Assistance
Section 268.9 Eligible Participants
Any State, or any authority designated by one or more State(s) to
carry out the preconstruction planning activities under the Maglev
Deployment Program, is eligible to participate in the Maglev Deployment
Program.
Section 268.11 Project Eligibility Standards
This section identifies the standards which projects must meet to
be eligible for funding under the Maglev Deployment Program. See the
earlier discussion of project eligibility standards; there FRA set out
the eight project eligibility standards contained in 23 U.S.C. 322. FRA
recognizes that applicants for preconstruction planning assistance will
not have detailed information with respect to the eight standards, and
that the purpose of the preconstruction planning assistance is to
develop much of this information with respect to a particular Maglev
project. The preconstruction planning application requirements of the
Interim Final Rule are designed to elicit whatever information an
applicant may have pertaining to these requirements and to secure a
commitment from the applicant that the applicant fully intends to
comply with these requirements if the project is selected as the
project to receive financing for final design, engineering, and
construction activities.
FRA has described section 322 standards in more detail for purposes
of eligibility for final design, engineering, and construction
financing. These standards, and the reference to corresponding citation
in section 322, are as follows:
Purpose and Significance of the Project. (1) The project
description shall point to a Maglev facility and daily operation the
primary purpose of which is the conduct of a revenue-producing
passenger transportation service between distinct points, rather than a
service solely for the passengers' riding pleasure. (subsection
322(d)(3), ``result in an operating transportation facility that
provides a revenue producing service.'')
(2) The project description shall incorporate scheduled operation
at a top speed of not less than 240 mph. (subsection 322(a)(3),
definition of Maglev as ``capable of safe use by the public at a speed
in excess of 240 mph.'')
Benefits for the American Economy. The project description shall
include a certification as to (1) and (2) below and, as appropriate, a
technology acquisition/transfer plan which describes the strategy for
their accomplishment.
(1) Processes will be established that will enable an American-
owned and -sited firm (or firms) to gain, in the course of the project,
the capability to participate in the design, manufacture, and
installation of the facilities and vehicles needed for a Maglev
operation, if the owner of the selected version of Maglev technology is
not an American owned and -sited firm (thus meeting the technology
transfer requirement of Section 322). (subsection 322(d)(7))
(2) The 70 percent U.S. content provision of Section 322
(subsection 322(d)(8)) will be carried out.
Partnership Potential. The project shall exhibit partnership
potential by satisfying all three items (1), (2), and (3) below.
(1) A private/public partnership must be in place that is ready,
willing, and able to finance, construct, operate, and maintain the
project; and
(2) The private/public partnership either owns the version of
Maglev technology proposed to be implemented in the project, or has an
agreement with the owner which affords full cooperation to the
partnership in progressing the project, including implementation of the
technology acquisition/transfer plan if applicable; and
(3) The recipient of a preconstruction planning grant or the FRA
has developed and endorsed a projection of system capital costs,
demand, revenues, operating expenses, and total costs and benefits,
that--
(A) Covers either the entire corridor in which the Maglev project
is involved (``Corridor''), or the project considered independently;
(B) Demonstrates that private enterprise would be able to run the
Corridor or the project--once built and paid for--as a completely self-
sustaining entity, in which revenues will cover operating expenses and
continuing investment needs; and
(C) Shows total benefits equal to or exceeding total costs.
(subsection 322(d)(1), ``involve a segment or segments of a high-speed
* * * transportation corridor that exhibit partnership potential.''
Under subsection 322(a)(4), Definitions, ``partnership potential'' is
given the definition it received in the FRA report, High-Speed Ground
Transportation for America, September 1997. This portion of the Interim
Final Rule applies FRA's definition of ``partnership potential'' to the
availability of funds for planning a Maglev program.)
Funding Limits and Sources. The project description shall include a
financing plan that demonstrates project completion with Federal Maglev
Funds not in excess of the remaining funds from the total of $1,005
million authorized in Section 322, and funds made available to the
recipient under STP and CMAQ. At least \1/3\ of Full Project Costs must
come from non-Federal funds; funds made available to the recipient
under STP and CMAQ qualify as non-Federal funds for purposes of this
cost-sharing requirement. Federal funds made available under title 23
and TEA 21 may be used to pay for full project costs. (subsections
322(b), (d)(2) and (4), and (h)(3) and (4))
Project Management. The State, the technology owner, and all other
relevant project partners must include in the Project Description an
agreed upon--
(1) Management plan that defines the partnership, responsibilities,
and procedures for accomplishing the project;
(2) Project schedule that shows how timely implementation of the
project will be accomplished, including, to the extent possible, a
construction plan and schedule; and
(3) Financial plan that shows how funds will flow, in accordance
with the other project eligibility standards.
(FRA considers effective project management, making use of the minimal
tools specified in this provision, as essential to the fulfillment of,
and therefore implicit in, the other project eligibility standards as
called for in section 322.)
Planning/Environmental Process. (1) Assessment of environmental
consequences of the proposed project. Recipients of preconstruction
planning grants shall prepare EAs and site-specific draft EISs.
EAs shall include information to support the grantee's decision to
pursue the proposed project. The grantee shall develop the information
and discuss the environmental consequences of the proposed technology
and route in
[[Page 54605]]
sufficient detail for the preparation of appropriate documentation by
FRA to support selection of one project. This shall include the
identification of potential positive and negative environmental effects
resulting from the technology (e.g. energy consumption compared to
other transportation options), generic noise emissions at various
distances from the centerline of the guideway, changes in
electromagnetic field levels at various distances from the centerline
of the guideway, as well as environmental screening of the proposed
route (e.g., identification of land use; identification of endangered
species possibly present and location of their critical habitat;
identification of navigable waterways, wetlands and other sensitive
water resources; and identification of the location of parks, wildlife
refuges, historic and archaeological sites of National, State or local
significance and other sites protected by Section 4(f) of the
Department of Transportation Act.). The latter information and analysis
shall be submitted four months in advance of the remainder of the
project description.
Site-specific draft EISs will consist of all work necessary to
support selection of a preferred alignment within the proposed corridor
discussed in the EA. (subsection 322(d)(5))
(2) The project description must also include letters of
endorsement of project implementation from all the State departments of
transportation involved, and from all Metropolitan Planning
Organizations for metropolitan areas that would be served by the
project.
Section 268.13 Deadline for Submission of Applications for
Preconstruction Planning Assistance
Applications for preconstruction planning assistance shall be
submitted to the FRA Administrator by December 31, 1998. The section
identifies the address to which the applications must be sent.
Section 268.15 Form and Contents of Applications for Preconstruction
Planning Assistance
This section identifies the information that must be contained in
each application.
Section 268.17 Project Selection Criteria
This section identifies the project selection criteria that FRA
will apply in selecting projects for financing under the Maglev
Deployment Program. These criteria are based on the seven factors
contained in 23 U.S.C. 322, and discussed earlier in this document.
These criteria, and the reference to corresponding citation in section
322, are as follows.
Purpose and Significance of the Project. (1) The degree to which
the project description demonstrates attractiveness to travelers, as
measured in passengers and passenger-miles. (subsection 322(e)(1))
(2) The extent to which implementation of the project will reduce
congestion, and attendant delay costs, in other modes of
transportation; will reduce emissions and/or energy consumption; or
will reduce the rate of growth in needs for additional highway or
airport construction. Measures for this criterion will include but not
be limited to the present value of congestion reduction, pollution
reduction, and/or facility cost-avoidance benefits. (subsection
322(e)(2))
(3) The degree to which the project will demonstrate the variety of
operating conditions which are to be expected in the United States.
(subsection 322(e)(1))
(4) The degree to which the project will augment a Maglev corridor
or network that has been identified, by any State, group of States, or
the FRA, as having partnership potential. (subsection 322(e)(5))
Timely Implementation. The speed with which the project can
realistically be brought into full revenue service, based on the
project description and on the current and projected development status
of the Maglev technology selected by the applicant for the project.
(The text of section 322 twice explicitly assumes ``timely
implementation of the project'' (in subsections 322(e)(2) and (7)), and
the stringent deadlines established in subsections 322(c) and (f)(1),
together with the five-year authorization schedule in subsection
322(h)(1), reinforce the clear Congressional intent that the project
shall be implemented in a timely manner.)
Benefits for the American Economy. The extent to which the project
is expected to create new jobs in traditional and emerging industries
in the United States. (subsection 3322(e)(4))
Partnership Potential. The degree to which the project description
demonstrates partnership potential for the corridor in which it is
involved, and/or for the project independently. (subsection 322(e)(2),
(3), (5), (6), and (8))
Funding Limits and Sources. (1) The extent and proportion to which
States, regions, and localities commit to financially contributing to
the project, both in terms of their own locally-raised, entirely non-
Federal funds, and in terms of commitments of scarce Federal resources
from non-Federal Maglev funds (subsection 322(e)(3)); and
(2) The extent and proportion to which the private sector
contributes financially to the project. (subsection 322(e)(6))
FRA did not set forth criteria dealing with project management and
planning dealing with the environmental process. Commenters are
requested to address whether criteria in these two or additional areas
are needed and, if so, to provide detailed suggestions as to how such
criteria should be worded.
Section 268.19 Evaluation of Applications for Preconstruction Planning
Assistance
This section identifies the criteria to be used by FRA in
evaluating the applications. FRA will evaluate the applications for
their completeness and responsiveness to the requirements listed in
Sec. 268.15 (form and content of application). The project eligibility
standards (Sec. 268.11) and project evaluation criteria (Sec. 268.17)
will guide the FRA's review of the project descriptions produced under
the planning grants. Although subject to revision, the information in
Sec. 268.11 and Sec. 268.17 should assist the States in completing
their applications in the competition for planning grants, since the
project descriptions will need to respond to the standards and
criteria. In evaluating the applications for planning grants FRA will
consider how consistent the applicant's project is to the standards and
criteria and the application's likelihood of leading to a project that
meets all the standards and criteria.
Section 268.21 Selection of one Maglev Project for Final Design,
Engineering and Construction Funding
This section is a brief description of the process FRA will follow
in selecting the one successful applicant for a construction assistance
from among the recipients of planning grants. That one project must
meet each and every project eligibility standard contained in
Sec. 268.11(b). If more than one project meets all these standards,
then the FRA will evaluate and compare the eligible projects according
to the set of project selection criteria contained in Sec. 268.17. In
reviewing competing projects under the project eligibility standards
and project selection criteria, the FRA will exercise particular
vigilance regarding the following elements of the preconstruction
planning process, although not to the exclusion of others:
[[Page 54606]]
(1) The credibility of the demand and revenue forecasts, cost
estimates, and benefit/cost comparisons; and
(2) The credibility of the financial plan.
Regulatory Analyses and Notices
E.O. 12866 and DOT Regulatory Policies and Procedures
The agency has evaluated this Interim Final Rule in accordance with
existing regulatory policies and procedures and has concluded that it
is a nonsignificant regulatory action under E.O. 12866, and a
nonsignificant rule under section 5(a)(4) of the DOT Regulatory
Policies and Procedures (44 FR 11034, February 26, 1979). The Interim
Final Rule is not a significant regulatory action under E.O. 12866
because it will not have an annual effect on the economy of $100
million or more or adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities; will not create a serious inconsistency
with an action planned or underway by another Federal agency; will not
materially alter the budgetary impact of entitlements, grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; and will not raise novel legal or policy issues arising out of
legal mandates, the President's priorities, or the principles of the
Executive Order. The Interim Final Rule implements the preconstruction
planning portion of a Congressionally mandated program to provide
financial assistance to state and local governments in developing and
implementing a transportation project involving magnetic levitation. At
this time, the sum of $55 million dollars is available to implement the
program and an authorization for future appropriations totaling $950
million is in place. However, as noted earlier, the availability of
these additional funds is contingent on an appropriation by the
Congress.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)
requires a review of rules to assess their impact on small entities.
FRA certifies that this rule will not have a significant impact on a
substantial number of small entities. Eligible applicants for the
Maglev Deployment Program are limited by the enabling statute (23
U.S.C. 322(d)) to States or authorities designated by one or more
States. The program implemented by the Interim Final Rule has the
potential to benefit some small entities who may be able to participate
as consultants to States or designated authorities in the
preconstruction planning activities, final design, engineering and
construction activities for Maglev deployment.
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) addresses the
collection of information by the Federal government from individuals,
small businesses and State and local government and seeks to minimize
the burdens such information collection requirements might impose. A
collection of information includes requiring answers to identical
questions posed to, or identical reporting or record-keeping
requirements imposed on, ten or more persons, other than agencies,
instrumentalities or employees of the United States. This Interim Final
Rule contains information and reporting requirements that would apply
to States, groups of States or designated authorities that file
applications for Federal funding for preconstruction planning
activities, and to grant recipients who would conduct final design,
engineering and construction activities in support of Maglev
deployment. Based on FRA's long experience in Maglev development in the
United States extending back to the early 1970's, including preparation
and issuance of the 1997 report ``High Speed Ground Transportation for
America,'' the statutory limit on the types of entities that may apply
for funding (States, groups of States, and State designated
authorities), the rigorous requirements for developing a viable
project, and the substantial financial and resource commitment that
will be required of applicants, and the information FRA has received
through its outreach efforts, the FRA has concluded that fewer than 10
applications for preconstruction planning funds are likely to be
received by the FRA from qualified applicants. However, if, as a result
of this Interim Final Rule, FRA becomes aware that there are
information collection requirements, FRA will submit an information
collection package to OMB for approval at that time.
Environmental Impact
FRA has evaluated these regulations in accordance with its
procedures for ensuring full consideration of the potential
environmental impacts of FRA actions, as required by the National
Environmental Policy Act (42 U.S.C. 4321 et seq.) and related
directives. FRA has concluded that the issuance of this Interim Final
Rule, which establishes a process for receiving applications for
planning activities associated with the Maglev Deployment Program, does
not have a potential impact on the environment and does not constitute
a major Federal action requiring an environmental assessment or
environmental impact statement. The Interim Final Rule includes
requirements for the preparation of environmental assessments of
proposed Maglev projects by successful applicants during the
preconstruction planning stage and additional environmental reviews
will be undertaken under the auspices of the FRA before one Maglev
project is selected for final design and construction funding.
Federalism Implications
This Interim Final Rule has been analyzed in accordance with the
principles and criteria contained in Executive Order 12612, and FRA has
determined that it does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment. The Maglev
Deployment Program provides states with the opportunity to explore the
development of a new transportation technology in a working partnership
with the Federal Government.
List of Subjects in 49 CFR Part 268
Grant programs-transportation, High speed ground transportation,
Maglev, Magnetic levitation.
The Rule
In consideration of the foregoing, FRA adds new part 268 to Title
49 of the Code of Federal Regulations as set forth below:
PART 268--MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY DEPLOYMENT
PROGRAM
Subpart A--Overview
Sec.
268.1 Definitions.
Sec 268.3 Different phases of the Maglev Deployment Program.
Sec 268.5 Federal funding sources for the Maglev Deployment
Program.
268.7 Federal/State share and restrictions on the uses of Federal
Maglev Funds.
Subpart B--Procedures For Financial Assistance
268.9 Eligible participants.
268.11 Project eligibility standards.
268.13 Deadline for submission of applications for preconstruction
planning assistance.
268.15 Form and contents of applications for preconstruction
planning assistance.
268.17 Project selection criteria.
268.19 Evaluation of applications for preconstruction planning
assistance.
[[Page 54607]]
268.21 Selection of one Maglev project for final design,
engineering, and construction funding.
Authority: 49 U.S.C. 322, 23 U.S.C. 322; 49 CFR 1.49.
Subpart A--Overview
Sec. 268.1 Definitions.
As used in this part--
CMAQ means Congestion Mitigation and Air Quality Improvement
Program (23 U.S.C. 149).
Environmental assessment (``EA'') means the environmental
assessment in support of the project description and containing the
information listed in Sec. 268.11(b)(6)(i).
Environmental impact statement (``EIS'') means the environmental
impact statement which is required pursuant to Secs. 268.3 and
Sec. 268.11(b)(6)(i).
Eligible project costs means the costs of preconstruction planning
activities and the capital cost of the fixed guideway infrastructure of
a Maglev project, including land, piers, guideways, propulsion
equipment and other components attached to guideways, power
distribution facilities (including substations), control and
communications facilities, access roads, and storage, repair, and
maintenance facilities, but eligible project costs do not include the
cost of stations, vehicles, and equipment.
Federal Maglev Funds means such funds as are provided under the
authority of 23 U.S.C. 322 to pay for Eligible Project Costs.
Full project costs means the total capital costs of a Maglev
project, including Eligible Project Costs and the costs of stations,
vehicles, and equipment.
Phase means one of the five different phases of the Maglev
Deployment Program; these phases are described in Sec. 268.3.
Maglev means transportation systems employing magnetic levitation
that would be capable of safe use by the public at a speed in excess of
240 miles per hour.
Maglev deployment program means the program authorized by 23 U.S.C.
322.
Partnership potential means the usage of the term in the commercial
feasibility study of high-speed ground transportation (High Speed
Ground Transportation for America) mandated under section 1036 of the
Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat.
1978). Under that usage any corridor exhibiting Partnership Potential
must at least meet the following two conditions:
(1) Private enterprise must be able to run on the corridor--once
built and paid for--as a completely self-sustaining entity; and
(2) The total benefits of a Maglev corridor must equal or exceed
its total costs.
STP means the Surface Transportation Program (23 U.S.C. 133).
TEA 21 means the Transportation Equity Act for the 21st Century
(Pub. L. 105-178).
Sec. 268.3 Different phases of the Maglev Deployment Program.
(a) The Maglev Deployment Program includes five phases, as
described in paragraphs (b) through (f) of this section. The current
projected timing for implementing these phases is indicated to assist
applicants in planning their projects. All dates beyond the first date
(the deadline for the submission of preconstruction planning
applications) are for planning purposes only and are subject to
change--including possible acceleration of deadlines--based on the
progress of the Maglev Deployment Program; grantees will be notified
accordingly.
(b) Phase I--Competition for Planning Grants (Early October 1998-
March 31, 1999)--(1) Description. In Phase I, States will apply for
funds for preconstruction planning activities. As required by
Sec. 268.13, applications must be filed with FRA by December 31, 1998.
FRA will select one or more projects to receive preconstruction
planning financial assistance awarded under this part to perform Phase
II of the Maglev Deployment Program.
(2) Timing of Major Milestones.
(i) December 31, 1998--Planning grant applications due.
(ii) February 28, 1999--FRA selects grantees for planning grants.
(iii) March 31, 1999--FRA awards planning grants for the conduct of
activities listed in Phase II.
(c) Phase II--Project Description Development (April 1, 1999-March
31, 2000)--(1) Description. In Phase II, each grant recipients will
prepare and submit to FRA a project description and supporting
preconstruction planning reports and an EA. Supporting reports may
include demand and revenue analyses, project specification, cost
estimates, scheduling, financial studies, and other information in
support of the project description. FRA will use this information in
reaching a decision on which project to select for final engineering
and construction financing. In addition, after completion of the EA,
each grant recipient will initiate activities aimed at preparing a
site-specific draft EIS. FRA will initiate documentation of
environmental factors considered in the project selection process.
(2) Timing of Major Milestones.
(i) November 30, 1999--Deadline for submission of appropriate EA
needed by FRA for the selection of one project under Phase III.
(ii) March 30, 2000--Deadline for submission of project
descriptions and any related supporting reports needed by FRA for
project selection.
(d) Phase III--Project Selection Process (April 1, 2000)--July 31,
2000)--(1) Description. FRA will evaluate the information provided by
the grant recipients under Phase II and will select one project for
final design, engineering, and construction funding. Recipients of
assistance will progress work on site-specific EISs.
(2) Timing of Major Milestones. July 31, 2000--FRA selects the
project.
(e) Phase IV--Project Development and Completion of Site-specific
EIS (August 1, 2000--July 31, 2001)--(1) Description. The financial
assistance recipient selected in Phase III will undertake final design
and engineering work for the selected project together with completing
the site-specific final EIS. Detailed agreements for the construction
and operation of the project would be negotiated. The other grant
recipients may also elect to complete the site-specific draft EISs
initiated during Phase II.
(2) Timing of Major Milestones. July 31, 2001--Final Record of
Decision on site-specific EIS, confirming the project design.
(f) Phase V--Completion of Detailed Engineering & Construction
(August 1, 2001 and beyond).--(1) Description. In Phase V, the
sponsoring State or State designated authority would oversee the
efforts of the public/private partnership formed to progress the
selected project, to complete the detailed engineering designs,
finance, construct, equip, and operate the project in revenue service.
Construction would likely be contingent on the appropriation of federal
funds.
Sec. 268.5 Federal funding sources for the Maglev Deployment Program.
(a) Federal Maglev Funds. Section 322 of Title 23 provides for the
following funds for the Maglev Deployment Program:
(1) Contract authority. Fifty-five million has been made available
for the Maglev Deployment Program as contract authority from the
Highway Trust Fund for Fiscal Years 1999 through 2001; this would be
used to fund the competition in all its phases and could also be used
for final design, engineering, and construction activities of the
selected
[[Page 54608]]
project. Of the $55 million, the Congress has made available up to $15
million for Fiscal Year 1999, up to $15 million for Fiscal Year 2000,
and $25 million for Fiscal Year 2001.
(2) Authorization for appropriations. Nine hundred fifty million,
also from the Highway Trust Fund, has been authorized to be
appropriated for the Maglev Deployment Program for Fiscal Years 2000
through 2003. Of the $950 million, $200 million is authorized to be
appropriated for each of Fiscal Years 2000 and 2001, $250 million for
Fiscal Year 2002, and $300 million for Fiscal Year 2003. Any decision
to proceed with possible Federal funding of the construction of a
Maglev system will be contingent upon the receipt of appropriations,
and upon completion of appropriate environmental documentation.
(b) Other Federal funds. Section 322 of Title 23 provides that the
portion of the Maglev project not covered by Federal Maglev Funds may
be covered by any non-Federal funding sources--including private (debt
and/or equity), State, local, regional, and other public or public/
private entities--as well as by Federally-provided STP and CMAQ funds,
and by other forms of financial assistance made available under title
23 and TEA 21, such as loans and loan guarantees.
Sec. 268.7 Federal/State share and restrictions on the uses of Federal
Maglev Funds.
(a) Federal share. The Federal share of Full Projects Costs shall
be not more than \2/3\, with the remaining \1/3\ paid by the grant
recipient using non-Federal funds. Funds made available under STP and
CMAQ are considered non-Federal funds for purposes of the matching
requirement.
(b) Restrictions on the uses of Federal Maglev Funds. (1) Federal
Maglev Funds may be applied only to Eligible Project Costs;
(2) Federal Maglev funds provided under a preconstruction planning
grant may be used only for Phase II activities, and for completion of
site-specific draft EIS; see Sec. 268.3;
(3) Federal Maglev Funds may be used to pay for only \2/3\ of
preconstruction planning costs; grant recipients are required to pay
the remaining \1/3\ of the costs with non-Federal funds; and
(4) The ``prevailing wages'' requirement of the Davis Bacon Act (40
U.S.C. 276a-276a-5) applies to any construction contracts under the
Maglev Deployment Program.
Subpart B--Procedures for Financial Assistance
Sec. 268.9 Eligible participants.
Any State, or any authority designated by one or more State(s) to
carry out the preconstruction planning activities under the Maglev
Deployment Program is eligible to participate in the Maglev Deployment
Program.
Sec. 268.11 Project eligibility standards.
(a) Project eligibility standards for preconstruction planning
financing. (1) As required by 23 U.S.C. 322(d)(4), in order to be
eligible to receive financial assistance, a Maglev project shall:
(i) Involve a segment or segments of a high-speed ground
transportation corridor that exhibit Partnership Potential;
(ii) Require an amount of Federal funds for project financing that
will not exceed the sum of Federal Maglev Funds, and the amounts made
available by States under STP and CMAQ;
(iii) Result in an operating transportation facility that provides
a revenue producing service;
(iv) Be undertaken through a public and private partnership, with
at least \1/3\ of Full Project Costs paid using non-Federal funds;
(v) Satisfy applicable statewide and metropolitan planning
requirements;
(vi) Be approved by FRA based on an application submitted by a
State or authority designated by 1 or more States;
(vii) To the extent that non-United States Maglev technology is
used within the United States, be carried out as a technology transfer
project; and
(viii) Be carried out using materials at least 70 percent of which
are manufactured in the United States.
(2) FRA recognizes that applicants for preconstruction planning
grants will not have detailed information with respect to some of the
requirements of paragraph (a)(1) of this section, and that the purpose
of a preconstruction planning grant is to develop much of this
information with respect to a particular Maglev project. As required by
Sec. 268.15, an applicant will need to provide whatever information it
has with respect to each of the requirements of paragraph (a)(1) of
this section together with a certification that the applicant fully
intends to comply with the requirements of paragraph (a) of this
section should its project be selected by FRA for final design,
engineering and construction financing.
(b) Project eligibility standards for final design, engineering,
and construction financing. FRA will select the most promising Maglev
project for final design, engineering, and construction financing. To
be eligible to be considered, the project must meet each of the
following requirements; these requirements restate the requirements in
paragraph (a)(1) of this section, but with more detail and in a
different order:
(1) Purpose and Significance of the Project. (i) The project
description shall point to a Maglev facility and daily operation the
primary purpose of which is the conduct of a revenue-producing
passenger transportation service between distinct points, rather than a
service solely for the passengers' riding pleasure.
(ii) The project description shall incorporate scheduled operation
at a top speed of not less than 240 mph.
(2) Benefits for the American Economy. The project description
shall include a certification as to paragraph (b)(2)(i) and (ii) of
this section and, as appropriate, a technology acquisition/transfer
plan which describes the strategy for their accomplishment.
(i) Processes will be established that will enable an American-
owned and -sited firm (or firms) to gain, in the course of the project,
the capability to participate in the design, manufacture, and
installation of the facilities and vehicles needed for a Maglev
operation, if the owner of the selected version of Maglev technology is
not an American-owned and--sited firm (thus meeting the technology
transfer requirement of 23 U.S.C. 322).
(ii) The 70 percent U.S. content requirement content of 23 U.S.C.
322 will be carried out.
(3) Partnership Potential. The project shall exhibit Partnership
Potential by satisfying the following:
(i) A private/public partnership must be in place that is ready,
willing, and able to finance, construct, operate, and maintain the
project;
(ii) The private/public partnership either owns the version of
Maglev technology proposed to be implemented in the project, or has an
agreement with the owner which affords full cooperation to the
partnership in progressing the project, including implementation of the
technology acquisition/transfer plan if applicable; and
(iii) The recipient of a preconstruction planning grant or the FRA
has developed and endorsed a projection of system capital costs,
demand, revenues, operating expenses, and total costs and benefits,
that:
(A) Covers either the entire corridor in which the Maglev project
is involved (``Corridor''), or the project considered independently;
[[Page 54609]]
(B) Demonstrates that private enterprise would be able to run the
Corridor or the project--once built and paid for--as a completely self-
sustaining entity, in which revenues will cover operating expenses and
continuing investment needs; and
(C) Shows total benefits equal to or exceeding total costs.
(4) Funding Limits and Sources. The project description shall
include a financing plan that demonstrates project completion with the
$950 million in Federal Maglev Funds, funds remaining unobligated from
the $55 million in contract authority, and the funds made available
under STP and CMAQ. The project that is selected will be eligible for
other forms of financial assistance provided under title 23 and TEA 21,
including loans, loan guarantees, and lines of credit. However, at
least \1/3\ of Full Project Costs must come from non-Federal Funds.
(5) Project Management. The State, the technology owner, and all
other relevant project partners must include in the project
description, an agreed upon--
(i) Management plan that defines the partnership, responsibilities,
and procedures for accomplishing the project;
(ii) Project schedule that shows how timely implementation of the
project will be accomplished, including, to the extent possible, a
construction plan and schedule; and
(iii) Financial plan that shows how funds will flow, in accordance
with the other requirements of this subsection.
(6) Planning/Environmental Process. (i) Assessment of environmental
consequences of the proposed project. Recipients of preconstruction
planning grants shall conduct an EA in support of the project
description; and will prepare a site-specific EIS for the project. The
EA shall include information to support the grantee's decision to
pursue the proposed project. The grantee shall develop the information
and discuss the environmental consequences of the proposed technology
and route in sufficient detail for the preparation of appropriate
documentation by FRA to support selection of one project. This shall
include: the identification of potential positive and negative
environmental effects resulting from the technology (e.g. energy
consumption compared to other transportation options); generic noise
emissions at various distances from the centerline of the guideway;
changes in electromagnetic field levels at various distances from the
centerline of the guideway; and environmental screening of the proposed
route (e.g., identification of land use; identification of endangered
species possibly present and location of their critical habitat;
identification of navigable waterways, wetlands and other sensitive
water resources; and identification of the location of parks, wildlife
refuges, historic and archaeological sites of National, State or local
significance and other sites protected by Section 4(f) of the
Department of Transportation Act.). The latter information and analysis
shall be submitted four months in advance of the remainder of the
project description. The above list is illustrative only. Grantees will
be expected to review proposed work statements with FRA at pre-
application meetings or through some other means to develop the final
scope of this environmental review.
(ii) The project description must also include letters of
endorsement of project implementation from all the State departments of
transportation involved, and from all Metropolitan Planning
Organizations for metropolitan areas that would be served by the
project.
Sec. 268.13 Deadline for submission of applications for
preconstruction planning assistance.
Completed application packages shall be returned to FRA by December
31, 1998. Applications shall be submitted to: Honorable Jolene M.
Molitoris, Administrator, Federal Railroad Administration, ATTN: Maglev
Project, RDV-11, 400 Seventh Street, SW, Stop 20,Washington, DC 20590.
Sec. 268.15 Form and contents of applications for preconstruction
planning assistance.
States, groups of States, or designated authorities that have
Maglev projects are invited to submit applications in Phase I of the
Maglev Deployment Program, the competition for preconstruction planning
grants. The applications shall contain:
(a) (1) If submitted by a State: Name, address, responsible party,
telephone, fax number, and e-mail address of the State agency
submitting the application; or
(2) If submitted by a designated authority: Name, address,
responsible party, telephone, fax number, and e-mail address of the
designated authority and of the State agency or agencies on whose
behalf the designated authority is submitting the application, together
with letters from the State(s) evidencing all such designations;
(b) A description of the project concept, identifying its likely
location, market area, length, and the transportation service that it
would perform, and a preliminary estimate of the time that would be
required--if funds are made available--to bring the project to the
start of construction and then to the initiation of full revenue
service. At its option, the Applicant may include any reports already
completed on the project as well as any additional descriptive material
that would assist the FRA in evaluating the application;
(c) Whatever information the Applicant has to demonstrate that the
project meets the project eligibility standards in Sec. 268.11(a), and
the project selection criteria in Sec. 268.17, together with a
certification that the Applicant fully intends to comply with the
requirements in Sec. 268.11 should its project be selected by FRA for
final design, engineering and construction financing.
(d) A statement of work for the preconstruction planning activities
to be accomplished under the planning grant. The statement shall
describe the work to be performed, including but not necessarily
limited to:
(1) Preconstruction planning work as is needed to develop a Maglev
project, and project description that will satisfy the project
eligibility standards in Sec. 268.11(b), and the project selection
criteria in Sec. 268.17; and
(2) Preparation of EAs, as described in Sec. 268.11(b)(6)(i);
(e) Management plan, schedule, and financial plan for accomplishing
the preconstruction planning work under the planning grant;
(f) Letters supporting the application from the heads of all State
departments of transportation involved, as well as from responsible
officials of the Metropolitan Planning Organizations of all
metropolitan areas to be served by the proposed project;
(g) A certification from the State, or from the authority
designated by one or more States, that the \1/3\ matching funds
required for work under the planning grant are, or will be, available
by the time the grants are announced. The source(s) of the matching
must be shown in the financial plan under paragraph (e) of this
section; and
(h) If the applicant has made a definitive choice of the particular
Maglev technology proposed to be included, a description of that
technology and the degree to which it has been produced and tested
should be submitted. Further, if the applicant has identified
organizations that would form members of the team that would implement
the project, the names of those organizations and the persons
representing them should also be submitted.
[[Page 54610]]
Sec. 268.17 Project selection criteria.
Except as qualified by Sec. 268.19, the following criteria will
govern FRA's selection of projects to receive funding under the Maglev
Deployment Program.
(a) Purpose and Significance of the Project. (1) The degree to
which the project description demonstrates attractiveness to travelers,
as measured in passengers and passenger-miles.
(2) The extent to which implementation of the project will reduce
congestion, and attendant delay costs, in other modes of
transportation; will reduce emissions and/or energy consumption; or
will reduce the rate of growth in needs for additional highway or
airport construction. Measures for this criterion will include but not
be limited to the present value of congestion reduction, pollution
reduction, and/or facility cost-avoidance benefits.
(3) The degree to which the project will demonstrate the variety of
operating conditions which are to be expected in the United States.
(4) The degree to which the project will augment a Maglev corridor
or network that has been identified, by any State, group of States, or
the FRA, as having Partnership Potential.
(b) Timely Implementation. The speed with which the project can
realistically be brought into full revenue service, based on the
project description and on the current and projected development status
of the Maglev technology selected by the applicant for the project.
(c) Benefits for the American Economy. The extent to which the
project is expected to create new jobs in traditional and emerging
industries in the United States.
(d) Partnership Potential. The degree to which the project
description demonstrates Partnership Potential for the corridor in
which it is involved, and/or for the project independently.
(e) Funding Limits and Sources. FRA recognizes that applicants for
preconstruction planning assistance may not have detailed information
with respect to each of these criteria, and that the purpose of the
preconstruction planning assistance is to develop much of this
information with respect to a particular Maglev project. The
preconstruction planning application requirements of the Interim Final
Rule are designed to elicit whatever information an applicant may have
pertaining to these criteria.
(1) The extent and proportion to which States, regions, and
localities commit to financially contributing to the project, both in
terms of their own locally-raised, entirely non-Federal funds, and in
terms of commitments of scarce Federal resources from non-Maglev funds;
and
(2) The extent and proportion to which the private sector
contributes financially to the project.
268.19 Evaluation of applications for preconstruction planning
assistance.
The FRA will evaluate the applications for their completeness and
responsiveness to the requirements listed in Sec. 268.15. In addition,
applicants are advised that the Maglev Deployment Program contains a
number of project eligibility standards (minimum threshold standards)
and project evaluation criteria that will guide the FRA's review of the
project descriptions produced under the Planning Grants. The FRA's
implementation of these standards and criteria appears in Sec. 268.11
and Sec. 268.17, respectively. Although subject to revision, the
information in Sec. 268.11 and Sec. 268.17 should assist the States in
completing their applications in the competition for planning grants,
since the project descriptions will need to respond to the standards
and criteria. In evaluating the applications for planning grants, FRA
will consider how consistent the applicant's project is to the
standards and criteria, and the application's likelihood of leading to
a project that meets all the standards and criteria.
Sec. 268.21 Selection of one Maglev project for final design,
engineering and construction funding.
(a) Only one project will be selected in Phase III of the Maglev
Deployment Program and be eligible for any Federal construction funds
that the Congress chooses to make available. That one project must meet
each and every project eligibility standard contained in
Sec. 268.11(b). If more than one project meets all these standards,
then the FRA will evaluate and compare the eligible projects according
to the set of project selection criteria contained in Sec. 268.17.
(b) In reviewing competing projects under the project eligibility
standards and project selection criteria, the FRA will exercise
particular vigilance regarding the following elements of the
preconstruction planning process, although not to the exclusion of
others:
(1) The credibility of the demand and revenue forecasts, cost
estimates, and benefit/cost comparisons; and
(2) The credibility of the financial plan.
(c) FRA intends to make periodic reviews of the processes and
products of grant recipients. Such reviews may include, at the FRA's
option, reviews at key milestones in the preparation of project
descriptions.
Issued in Washington, DC on October 2, 1998.
Jolene M. Molitoris,
Federal Railroad Administrator.
[FR Doc. 98-27245 Filed 10-9-98; 8:45 am]
BILLING CODE 4910-06-P
