We identified three general types of Bus Rapid Transit systems—those that  (1) use buses on exclusive busways, (2) share high-occupancy vehicle  (HOV) lanes with other vehicles, and (3) provide improved bus service on  city arterial streets. Bus Rapid Transit systems using arterial streets may  have lanes reserved for buses and street enhancements that speed buses  and improve service. Federal Grants and a Demonstration Program Are Available to Help Support Bus Rapid Transit Projects

A variety of federal grant programs could be used to help fund Bus Rapid  Transit projects, but few projects are in line to receive awards. However, few Bus Rapid Transit projects are ready to compete  for these funds, competition for funding is intense, and constraints on the  use and size of the grants limit their usefulness for Bus Rapid Transit  projects. It  provides grants of up to 80 percent of the capital costs of bus and rail  projects that operate on exclusive rights-of-way. Currently, the program requires that, to be eligible  for funding, a project must operate on separate rights-of-way for the  exclusive use of mass transit and high-occupancy vehicles. Under the proposal, new non-fixed-guideway  improvements done on a corridor basis would be eligible for New Starts  funds. Bus Rapid Transit and other transit projects can qualify for certain types of  federal highway funds administered by the Federal Highway  Administration. The  program provided $50,000 to 10 transit agencies to share information and  data on new Bus Rapid Transit projects. FTA wanted the Bus Rapid  Transit program to show how using technological advancements and  improving the image of buses would allow buses to increase ridership and  operate with the speed, reliability, and efficiency of Light Rail. FTA plans to evaluate the demonstration projects after they are  implemented. Several Factors Affect the Selection of Bus Rapid Transit As a Mass Transit Option

Decisions to pursue a Bus Rapid Transit project require significant  planning and analysis of factors associated with transit options. Capital and Operating Costs

The cost of constructing a mass transit system is a major consideration for  communities as they evaluate their transportation options. Our September  2001 report examined 20 existing Bus Rapid Transit lines and found that  Bus Rapid Transit capital costs, when adjusted to 2000 dollars, averaged  $13.5 million per mile for busways, $9.0 million per mile for buses on HOV  lanes, and $680,000 per mile for buses on city streets. Our 2001 report analyzed operating costs for  six cities that had some form of Bus Rapid Transit and Light Rail systems. System Performance

An important objective of any mass transit system is to move as many  people as quickly as possible. In the  systems we examined, these factors varied considerably for Bus Rapid  Transit. We also found that, in most instances, Bus Rapid Transit  was faster than Light Rail in the six cities in our study. Other Advantages and Disadvantages of Bus Rapid Transit

The other advantages and disadvantages of Bus Rapid Transit could also  affect a community’s decision to pursue it as a mass transit option. In addition, the public might view an alternative  to Bus Rapid Transit, such as Light Rail, as the mark of a “world-class” city  and a means to improve the community’s image and stimulate economic  development.
Why GAO Did This Study

Buses form the backbone of the nation's mass transit systems. About 58 percent of all mass transit users take the bus, and even in many cities with extensive rail systems, more people ride the bus than take the train. In recent years, innovative Bus Rapid Transit systems have gained attention as an option for transit agencies to meet their mass transit needs. These systems are designed to provide major improvements in the speed, reliability, and quality of bus service through barrier-separated bus-ways, high-occupancy vehicle lanes, or reserved lanes or other enhancements on arterial streets. The characteristics of Bus Rapid Transit systems vary considerably, but may include (1) improved physical facilities or specialized structures such as dedicated rights-of-way; (2) operating differences such as fewer stops and higher speeds; (3) new equipment such as more advanced, quieter, and cleaner buses; and (4) new technologies such as more efficient traffic signalization and real-time information systems. This testimony, which updates a report GAO issued in September 2001, provides (1) information on federal support for Bus Rapid Transit systems and (2) an overview of factors affecting the selection of Bus Rapid Transit as a mass transit option.

What GAO Found

Federal grants are available for Bus Rapid Transit projects, primarily through the Federal Transit Administration's (FTA) New Starts program. However, only one project currently has a funding commitment since few Bus Rapid Transit projects are ready to compete for funding, competition for New Starts funding is intense, and certain types of Bus Rapid Transit projects are not eligible for New Starts funding because the program provides grants only for projects that operate on a separate right-of-way for the exclusive use of mass transit and high-occupancy vehicles. FTA is proposing to change this requirement so that more Bus Rapid Transit projects can be eligible for New Starts funding. In addition, constraints on the use or size of the other federal grants may limit their usefulness for Bus Rapid Transit projects. Under a demonstration program that began in 1999, FTA awarded $50,000 to each of 10 grantees for projects designed to help determine the extent to which Bus Rapid Transit can increase ridership, improve efficiency, and provide high-quality service. FTA plans to evaluate the demonstration projects to determine their most effective elements. When selecting a mass transit system, communities consider its capital and operating costs, performance, and other advantages and disadvantages. In the cities that GAO reviewed, the per-mile capital costs of Bus Rapid Transit varied with the type of system--averaging $13.5 million for bus-ways, $9.0 million for buses on high-occupancy vehicle lanes, and $680,000 for buses on city streets--and compared favorably with the per-mile capital costs of Light Rail. In the cities that GAO reviewed with both Bus Rapid Transit and Light Rail service, neither type of service had a consistent advantage in terms of operating costs, and Bus Rapid Transit was comparable to Light Rail in terms of ridership and operating speed. A major advantage of Bus Rapid Transit is its flexibility: buses can be rerouted to accommodate changing traffic patterns and can operate on bus-ways, high-occupancy vehicle lanes, and city arterial streets. However, the public may view Bus Rapid Transit as less likely than Light Rail to improve a community's image and spur economic development.