1.) 2.) For the next reauthorization of federal transit programs, FTA proposes in  its fiscal year 2012 budget request to transform the Capital Investment  Grant program to further streamline the process for new fixed-guideway  and corridor-based bus projects. Small Starts and Very Small Starts History and Types of Projects

		Small Starts Was Established to Streamline New Starts and Allowed Funding for Certain Types of Bus Projects

The Small Starts program was created to provide a more streamlined  evaluation and rating process for lower-cost and less complex projects. FTA Has Mostly Recommended Bus Rapid Transit Projects for Small Starts and Very Small Starts Funding

Since fiscal year 2007, FTA has approved 29 Small Starts and Very Small  Starts projects into project development, and has recommended for  funding to Congress all 29 of them, which are mostly BRT projects and a  handful of other transit modes. Several other streetcar projects have also  received funding through TIGER grants. Within Small Starts and Very Small Starts, the projects FTA  recommended to Congress for funding vary in terms of the total project  costs and capital investment program contribution. For the 10 Small  Starts projects, the total project cost ranges from nearly $40 million to  about $232 million, and the median cost is about $143 million. For the 19 Very Small Starts projects, the total project cost ranges from  about $5 million to about $48 million and the median cost is about $29  million. The capital investment program contribution to the projects’ costs  ranges from nearly $3 million to about $39 million and the median capital  investment program contribution is about $20 million. FTA’s Project Development Requirements for Small Starts and Very Small Starts and Stakeholder Views

		FTA’s Project Development Requirements

FTA’s project development requirements for Small and Very Small Starts  are similar in some respects, but FTA’s submission requirements for  Small Starts’ project justification criteria are more extensive. To examine the project development process, we discussed the  advantages and disadvantages of the requirements with a variety of  stakeholders, including 10 project sponsors, officials from FTA  headquarters and 7 regional offices, and 2 industry groups.   Several stakeholders we interviewed—five project sponsors, one  industry group, and FTA headquarters and officials from two  regions—said that the project development requirements for Very  Small Starts projects were straightforward and not overly burdensome  and, as a result, that Very Small Starts projects have a streamlined  process. Some stakeholders we spoke with also reported disadvantages of FTA’s  project development requirements. As described below, stakeholders that  have experience with New Starts projects said that the Small Starts  project development requirements, which were to be streamlined, are too  similar to those for New Starts projects. FTA’s Project Development Requirements for Exempt Projects and Stakeholder Views

		Exempt Projects Are Subject to Fewer Requirements Than Small Starts or Very Small Starts Projects

Exempt projects are not evaluated and rated or recommended for funding  by FTA; exempt projects receive under $25 million in federal assistance  and are typically congressionally designated.   For rail projects, one project constructs a new driverless, automated  rail system between an existing transit station and an airport; another  project builds a new transit station along an existing heavy rail line. The stakeholders with whom we spoke want to continue  this category of funding because they said that a key advantage of the  exempt category is that it serves as a useful source of funding for  “unique” or atypical transit projects. For example, four project sponsors  that we spoke with indicated that their projects may not have competed  well with other projects if evaluated against the New Starts criteria and in  competition with more typical New Starts transit projects, like light rail  lines. In its 2012 budget request, FTA proposes to continue the exempt  category in the next surface transportation reauthorization. Agency Comments

We provided a draft of this report to the Secretary of Transportation for  review and comment. This appendix lists those reports and updates the  Federal Transit Administration’s (FTA) progress in implementing these  recommendations. To describe the project development requirements for Small Starts and  Very Small Starts projects, we collected and summarized relevant laws,  such as SAFETEA-LU, as well as FTA circulars and policy guidance for  the Small Starts program, including the 2007 Updated Interim Guidance  and Instructions, 2010 Reporting Instructions for the Section 5309 Small  Starts Criteria, and Side-by-Side of Required Information for New  Starts/Small Starts Evaluation and Rating. There were a total  of nine exempt projects that entered the New Starts pipeline since 2005. To determine the views  of stakeholders on the advantages and disadvantages of the exempt  category, we conducted semistructured interviews with FTA officials  (headquarters and regional office staff), sponsors of exempt projects that  received funding, and transit industry associations. Public Transportation: Preliminary Information on FTA’s Implementation  of SAFETEA-LU Changes.
Why GAO Did This Study

The Federal Transit Administration's (FTA) Capital Investment Grant program funds, among other things, projects for fixed-guideway systems--often called New Starts projects. In 2005, the Safe, Accountable, Flexible, Efficient Transportation Equity Act-A Legacy for Users (SAFETEA-LU) established a category of lower-cost projects--Small Starts--which expands project eligibility and offers streamlined requirements. FTA subsequently created the Very Small Starts category with a further streamlined process for very low-cost projects. Exempt projects, those receiving under $25 million and typically designated by Congress, also have a simplified process. As part of GAO's annual mandate to review New Starts, this report describes (1) the history of Small Starts and Very Small Starts and the type of projects FTA recommended for funding; (2) the project development requirements for Small Starts and Very Small Starts and what stakeholders identify as the advantages and disadvantages of the requirements; and (3) the project development requirements for exempt projects, the projects selected to receive funding, and what stakeholders identify as the advantages and disadvantages of this category. Among other things, GAO analyzed laws, regulations, and agency guidance, and interviewed FTA headquarters staff and stakeholders from 7 FTA regional offices, 15 projects, and 2 industry groups. DOT officials reviewed a draft of this report and provided technical comments, which GAO incorporated as appropriate.

What GAO Found

When SAFETEA-LU established the Small Starts program, it streamlined project development requirements and project evaluation and rating criteria, and authorized certain corridor-based bus projects--like bus rapid transit systems-- to receive transit capital funding. Furthermore, FTA created Very Small Starts within Small Starts to further streamline requirements for projects that are simple and low-risk, based on cost and other features. FTA has mostly recommended bus projects for funding but has also recommended light rail, commuter rail, and streetcar projects. Overall, FTA has recommended 10 Small Starts and 19 Very Small Starts projects for funding. These projects' total costs vary from about $5 million to about $232 million, and FTA has recommended capital investment program funds ranging from nearly $3 million to $75 million for these projects. FTA's project development requirements for Small Starts and Very Small Starts include costs and financial summaries. While all sponsors submit similar information in some respects, such as financial summaries, FTA only requires sponsors of Small Starts projects to submit information on a project's expected benefits, like travel forecasts. Some stakeholders GAO spoke with said an advantage of FTA's requirements for Very Small Starts is that they are appropriately scaled and not overly burdensome for smaller projects. For example, about half of the stakeholders experienced with Very Small Starts told GAO that the requirements were straightforward and that project sponsors were able to meet them quickly without many problems. Four project sponsors and an industry group said that a disadvantage of the Small Starts requirements is that they are too similar to those for New Starts, even though Small Starts projects have a lower total cost and are less complex. Generally, stakeholders said that the requirements for both Small Starts and Very Small Starts help project sponsors fully develop and plan projects by helping identify potential problems. Stakeholders' perspectives depend, in part, on their degree of experience with these programs, which ranged from none to several previous New Starts or Small Starts projects. Exempt projects, typically congressionally designated and below the $25 million threshold, are not evaluated and rated. Exempt projects are subject to fewer FTA requirements that mainly focus on the sponsor's ability to carry out its project. Nine exempt projects have entered the New Starts pipeline since the last reauthorization of the New Starts program in 2005. These projects vary in terms of mode and scope. For example, one project extends a bus transitway with dedicated vehicle lanes; and another project builds a new station on an existing rail line. The total costs for these projects vary from about $10 million to about $493 million, and the federal contributions range from about $1 million to nearly $25 million in capital investment program funds. Four project sponsors GAO spoke with said that the exempt category provides a useful source of capital funding for atypical transit projects that solve local transportation problems. In its 2012 budget request, FTA proposes to continue the exempt category, which is set to expire under current law, in the next surface transportation reauthorization.