Private Investment Project Procedures. New Changes for P3s

The Federal Transit Administration has made substantive changes in a final rule describing new, experimental procedures to encourage increased project management flexibility, more innovation in project funding, improved efficiency, timely project implementation, and new project revenue streams for public transportation capital projects. It will modify 49 CFR Part 650,

A primary goal of this final rule is to address impediments to the greater use of public-private partnerships (P3s) and private investment in public transportation capital projects.

What it does

1. Amended the definition of ‘‘Eligible Project’’ to require a project be included in the statewide long-range transportation plan or the metropolitan transportation plan, as those terms are defined in 23 CFR part 450.
2. Amended section 650.11 to permit one application per phase of a project, and to clarify that multiple waivers or modifications may be sought in one application.
3. Amended section 650.21 to require reporting to FTA one year after construction is complete, and for projects that include private investment in operations and maintenance, a report is required two years after the project has entered into revenue operations.
4. Amended section 650.31 to permit applicants to identify proposed, as well as committed funding for the project, and to provide that FTA will post on its public website information related to waivers the FTA Administrator has granted. 

The final rule, which goes into effect June 29, 2018, was published May 30, 2018 in the Federal Register, Volume 83, Number 104, page 24672.