1). However, before signing the agreement, FTA must ensure that BART has met all environmental requirements and developed an adequate finance plan. This announcement was supported in the administration’s fiscal year 1997 budget request, which included $51 million for BART. Under its planned construction schedule, BART expects to have the finance plan approved and to receive a full funding grant agreement from FTA by October 1996. To answer the concerns cited in the Conference Committee report, FTA must certify that a final cost analysis and finance plan have been completed and reviewed and that the federal share for the project has been reduced,the final EIS has been completed and approved, a study to consider a direct commuter rail (Caltrain’s) link to the airport has been considered in conjunction with the BART project, and the share of cost to be borne by the airport and its users is consistent with federal transportation policy and regulations. BART’s Construction Schedule and Cost Estimates

In its April 1996 draft finance plan, BART estimated that the project would cost $1.167 billion, construction would begin by October 1996, and revenue operations would begin in October 2000. Three issues remain that may affect BART’s ability to begin the project as scheduled and complete construction within the estimated cost: (1) whether environmental reviews, including the final EIS and a wetlands permit, will be complete before October 1996; (2) whether the use of innovative contracting procedures will produce the expected savings; and (3) whether BART has adequately included contingencies and cost escalations in estimating the project’s total cost. The Project’s Financing

BART’s April 19, 1996, draft finance plan, specifies the level and timing of the contributions the transit agency expects to receive from FTA and state and local contributors. BART anticipates finalizing agreements with the state, the San Francisco airport, and other regional transit agencies to provide the $417 million local share. State Legislation Needed to Establish Borrowing Program for the Airport Extension

BART does not have the authority to pledge its own revenues as a secondary source of collateral for a borrowing program it must establish to meet the expected cash shortfalls. Limitations on the Use of Airport Funds

The San Francisco International Airport Commission has committed up to $200 million for the BART airport extension. 3. 4. 5. 6. Additional copies are $2 each.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Bay Area Rapid Transit District's (BART) plans to extend its transit system to the San Francisco International Airport, focusing on the: (1) actions the Federal Transit Administration (FTA) must take before agreeing to fund the project; (2) factors that could affect the project's current schedule and estimated cost; and (3) project's finance plan, particularly assumptions that could affect its viability.

What GAO Found

GAO found that: (1) before signing the BART funding grant agreement, FTA must ensure that BART has met all environmental requirements and secured necessary project financing; (2) FTA must also certify that BART environmental and financing plans, and cost estimates are reasonable and determine whether other transportation alternatives have been considered; (3) FTA and BART may not be able to resolve congressional concerns 60 days prior to the signing of the funding agreement, which BART expects to occur in October 1996; (4) BART estimates that its airport extension project will cost $1.167 billion, with construction beginning by October 1996 and line opening in October 2000; (5) the BART construction schedule is ambitious, since environmental reviews may not be completed by October 1996, and expected savings from innovative technology and cost escalations are uncertain; (6) BART expects to obtain $750 million in federal funding, with the remaining $471 million coming from the San Francisco airport, the state, and local sources; (7) BART must develop a borrowing program, since its accelerated construction schedule will outpace its funding; and (8) factors that could affect the finance plan's viability include BART receiving sufficient federal funds each of the next 7 fiscal years, the state allowing BART to use its own revenues as secondary collateral for loans, the airport providing its $200 million contribution, and other state and local contributors capping their BART pledges due to budget constraints.