On May 30, 2018, the Federal Transit Administration (FTA) issued a Final Rule 83 FR 24672 establishing Private Investment Project Procedures to encourage project sponsors to seek modifications of Federal requirements otherwise applicable to public-private partnership projects (P3s) that are intended to accelerate project development processes, attract private investment and lead to increased project management flexibility, more innovation, improved efficiency, and/or new revenue streams. The procedures provides a process for the FTA to consider and grant waivers or modifications of otherwise mandatory administrative regulations, policies, procedures, or guidance documents, but not statutory requirements, in order to address impediments to the greater use of P3 and private investment in public transportation capital projects.
The Private Investment Project Procedures apply to any recipient of Federal financial assistance under 49 U.S.C. chapter 53, the popular Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing Act (RRIF) loan programs, or any other Federal financial assistance, for public transportation capital projects that will be implemented through:
Under the Private Investment Project Procedures, the FTA will consider applications from any recipient of Federal assistance to waive or modify any existing FTA regulation, or mandatory provisions of practices, procedures, or guidance documents, including circulars, if the recipient demonstrates that:
For projects with multiple recipients, recipients may, but are not required to, submit an application for a project jointly; however, only one application per phase of a project may be submitted. An application may include a request for a modification or waiver of more than one FTA requirement.
Notably, the final rule is largely identical to the procedures outlined in the initial notice of proposed rulemaking [82 FR 35500, Jul. 31, 2017]. The substantive amendments relative to the initial notice are:
Please contact Adam Giuliano in our New York office, Allison Fultz in our DC office, or Brent Butzin in our Denver office for further information or for assistance in submitting an application for a waiver or modification of FTA requirements for an eligible project.