[Federal Register Volume 71, Number 171 (Tuesday, September 5, 2006)]
[Notices]
[Pages 52364-52367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14634]
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DEPARTMENT OF TRANSPORTATION
Corridors of the Future Program
AGENCY: Department of Transportation (DOT).
ACTION: Notice; request for applications.
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SUMMARY: The purpose of this notice is to solicit applications from
interested parties to participate in the Corridors of the Future
Program (CFP) selection process. The goal of the CFP is to accelerate
the development of multi-State transportation Corridors of the Future
for one or more transportation modes, by selecting up to 5 major
transportation corridors in need of investment for the purpose of
reducing congestion. The Federal government has an important role to
play in facilitating and accelerating multi-State investments. States
are encouraged to work together and with private sector partners to
develop multi-State corridor proposals to advance project development
and seek alternative financial opportunities. CFP projects may augment
an existing transportation corridor or may develop entirely new
facilities.
Applications will be submitted in a two-step process. In the first
step, the Applicant will submit a Corridor Proposal (Proposal)
containing general information about the proposed Corridor project
(Corridor). A Proposal may be submitted by one State, multiple States,
or a private sector entity, and at this stage does not require the
concurrence of all affected States. After the Proposal has been
reviewed, the Applicant may be asked to proceed to the second step in
the process by submitting an Application with more detailed information
about the project.
DATES: Proposals must be received on or before October 23, 2006. The
due date for Applications will be April 2, 2007.
ADDRESSES: Interested parties should submit Proposals to Mr. James D.
Ray, Chief Counsel, Federal Highway Administration, 400 Seventh Street,
SW., Room 4213, Washington, DC 20590 or electronically to
[email protected].
FOR FURTHER INFORMATION CONTACT: Mr. Michael W. Harkins, Attorney-
Advisor, (202) 366-4928 ([email protected]), or Ms. Alla C. Shaw,
Attorney-Advisor, (202) 366-1042 ([email protected]), Federal Highway
Administration, Office of the Chief Counsel, 400 Seventh Street, SW.,
Room 4230, Washington, DC 20590. Office hours are from 7:30 a.m. to 5
p.m., e.t., Monday through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
An electronic copy of this document may also be downloaded from the
Office of the Federal Register's home page at: http://www.archives.gov
and the Government Printing Office's Web page at: http://www.access.gpo.gov/nara.
Background
The DOT is establishing a Corridors of the Future selection process
to accelerate the development of multi-State, and possibly multi-use,
transportation corridors to help reduce congestion. The DOT is seeking
applications from either public or private sector entities to identify
and advance multi-State transportation corridor investments that can
alleviate current or forecasted congestion. Through this selection
process, the DOT will select up to 5 Corridors in need of investment.
Congestion is one of the single largest threats to America's
economic prosperity and way of life. Former Secretary of Transportation
Norman Y. Mineta framed the problem earlier this year:
If power blackouts drained billions of dollars from the economy
each year, it would be considered a crisis of unacceptable
proportion. Yet many accept the fact that Americans squander 3.7
billion hours and 2.3 billion gallons of fuel each year sitting in
traffic jams and waste $9.4 billion as a result
[[Page 52365]]
of airline delays. Even worse, congestion takes a major bite out of
our day--time that could be spent with families, friends, and
neighbors.\1\
\1\ Remarks made by Secretary Mineta to the National Retail
Federation, May 16, 2006.
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Congestion now draws close to $200 billion per year from the U.S.
economy.
In an effort to combat the growing problems of congestion,
Secretary Mineta launched the DOT's ``National Strategy to Reduce
Congestion on America's Transportation Network'' in May 2006. The
Strategy consists of a 6-point plan, including the Corridors of the
Future selection process, designed both to reduce congestion in the
short-term and to build the foundation for successful longer-term
congestion reduction efforts.\2\
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\2\ In addition to the Corridors of the Future selection
process, the ``National Strategy to Reduce Congestion on America's
Transportation Network'' also includes the following five areas of
emphasis: (1) Relieve urban congestion; (2) Unleash private sector
investment resources; (3) Promote operational and technological
improvements; (4) Target major freight bottlenecks and expand
freight policy outreach; and (5) Accelerate major aviation capacity
projects and provide a future funding framework for the aviation
system.
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Objectives
The primary objectives of the CFP are to:
A. Promote innovative national and regional approaches to
congestion mitigation.
B. Address major transportation investment needs.
C. Illustrate the benefits of alternative financial models that
involve private sector capital.
D. Promote a more efficient environmental review and project
development process.
E. Develop corridors that will increase freight system reliability
and enhance the quality of life for U.S. citizens.
F. Demonstrate the viability of a transportation investment model
based on sound economics and market principles.
Application Process
The application process consists of two phases: The submission of a
Corridor Proposal followed by an invitation to submit a formal
application. Each phase is discussed below.
A. Phase 1: Corridor Proposal
A State, multiple States or a private entity (Applicant) interested
in the CFP should submit a Corridor Proposal to the DOT. The length of
the Proposal should not exceed ten single-spaced pages. The Proposal
should, in general terms, describe the Corridor, including its purpose,
location, preliminary design features, rough estimate of capital cost,
proposed delivery schedule, likely financing mechanism(s), traffic
trends (on competing corridors if a new corridor is being proposed),
and information about the status of agreement among the States to
advance the proposed Corridor. Private entities should consult with
relevant State transportation agencies and Governors' offices prior to
submitting a Proposal. Corridor proposals may include new capacity
development or upgrades/extensions of existing capacity, but the
proposals should involve two or more States. The Applicant should also
state whether the proposed Corridor will cross any Federal or Indian
lands. To the extent the proposed Corridor is already in development,
the Applicant should describe broadly the remaining activities that
must be undertaken.
The Applicant may be requested to submit additional information if
more information is needed at this stage. The Applicant should estimate
the length of time needed before it would have the necessary
information and concurrences needed to submit a detailed Corridor
Application, discussed below. The deadline for submitting a Proposal is
October 23, 2006. If an Applicant submits a Proposal after the October
23 deadline, the Proposal will be considered to the extent practicable
but will not necessarily be eligible to advance to the next step in the
Application process during the first phase.
If a Proposal is accepted for the final competition, the Applicant
will be invited to submit a Corridor Application, discussed below. The
DOT intends to announce the first phase of Corridor Proposals for
further consideration by the middle of November 2006.
B. Phase 2: Corridor Application
If an Applicant is invited to submit a Corridor Application
(Application) for the CFP, the Application must be received not later
than April 2, 2007, unless an extension is granted in writing by the
FHWA Chief Counsel at his discretion in response to a written request
for an extension. All Federal, State, and Indian tribal governments
that own property which will be directly impacted by the proposed
Corridor should concur in the Application. The DOT intends to announce
the initial CFP Corridors approved for further development after spring
2007.
The Application should address each of the following:
1. Physical Description
The Application should include a detailed description of the
proposed interstate transportation Corridor, including a map detailing
the Corridor and its connection to existing transportation
infrastructure.
2. Congestion Reduction
The proposed Corridor may address current or future congestion in
any transportation mode(s). For each mode included in the Application,
the Applicant should describe where and how the proposed Corridor would
(i) reduce current congestion levels or (ii) address future expected
congestion based on projected travel trends and demographic changes in
the proposed Corridor. The Applicant should discuss the national impact
of the Corridor on freight and/or traffic congestion. The congestion
reduction discussion should include all relevant data related to the
proposed congestion relief benefits of the Corridor.
3. Mobility Improvements
The Application should describe how the Corridor would provide
increased mobility of people and freight. Whether the proposed Corridor
is on a new or existing alignment, the Application should explain how
transportation technologies would be used to benefit users by reducing
congestion and enhancing the mobility and efficiency of the proposed
Corridor. Examples of mobility improvements include the use of
intelligent transportation systems, traffic conditions monitoring,
computerized traffic control systems, traveler information systems,
electronic toll collection, and open road tolling.
4. Economic Benefits and Support of Commerce
The Application should explain how the proposed Corridor would
support U.S. economic growth. The Application should also provide an
estimate of the percentage of overall Corridor traffic that is likely
to be freight traffic.
5. Value to the Users of the Corridor
The Application should describe the benefits of the proposed
Corridor to its users. Potential benefits include: Reduced travel time;
increased safety; faster and more convenient access to intermodal
facilities, such as rail and port terminals; faster and more convenient
access to terminals for commercial vehicles; environmental benefits;
truck-only lanes; and increased travel speeds.
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6. Innovations in Project Delivery and Finance
The Application should highlight any innovative project delivery
and financing features proposed for the Corridor. The Applicant should
address the eligibility of the proposed project for credit assistance
under the Transportation Infrastructure Finance Innovation Act (TIFIA)
and Private Activity Bonds.
7. Exceptional Environmental Stewardship
The Application should describe any proposed innovative methods for
completing the environmental review process effectively, and/or any
exceptional proposed measures for avoiding or mitigating air, noise, or
water impacts, or impacts to environmental or cultural resources.
8. Finance Plan and Potential Private Sector Participation
The Applicant should submit an initial plan that identifies
potential sources of financing and the private sector's likely role.
This may include proposals for private sector financial contribution to
the proposed Corridor. Private sector participation can encompass a
wide range of contractual arrangements by which public (Federal, State,
or local) authorities and private entities collaborate in the
financing, development, operation, and ownership of a transportation
infrastructure project. Potential contractual arrangements for the
Corridor include but are not limited to:
a. Long-term concessions or franchise agreements;
b. Design, Build, Operate and Maintain contracts;
c. Design Build Finance Operate contracts;
d. Build Own Operate contracts; and
e. Design Build contracts.
The Applicant should describe the efficiencies likely to result
from private sector participation, as well as the process likely to be
used to ensure robust competition among private financial entities
9. Proposed Project Time-Line
The Application should include a proposed project time-line with
estimated start and completion dates for major elements of the proposed
Corridor such as:
a. Development phase activities (planning, feasibility analysis,
revenue forecasting, environmental review, preliminary engineering and
design work, and other preconstruction activities);
b. Construction, reconstruction, and/or rehabilitation activities;
and
c. Acquisition of real property (including land related to the
project and improvements to land).
The Application also should describe the results of any preliminary
engineering or preconstruction activities done to date and relate it to
the project time-line.
CFP Development Agreement
After a Corridor is accepted for administration under the CFP, the
next major action would be to work with the coalition of States,
municipalities, Indian tribal government(s), and Federal agencies
(collectively referred to as the Coalition) to draft a CFP Development
Agreement for the Corridor (CFPDA). The CFPDA would address the
commitments of all parties to the Corridor (Federal, State, municipal
and private) with respect to the financing, planning and design,
environmental process, construction, operations, maintenance, and other
components of the Corridor. The CFPDA would also identify the specific
objectives of the Corridor and performance measures that would be used
to evaluate the success of the Corridor in achieving these objectives.
DOT Resources and Commitments To Expedite the Delivery of the Corridor
If a Corridor is selected for participation in the CFP, the DOT
will work with the Coalition to expedite the delivery of the Corridor.
Potential DOT resources and commitments include:
A. Coordination of a More Efficient Environmental Review Process
Corridors selected for the CFP may request to be added to the
Secretary of Transportation's list of high-priority transportation
infrastructure projects under Executive Order 13274, ``Environmental
Stewardship and Transportation Infrastructure Project Review.'' For
these projects, Federal agencies shall to the maximum extent
practicable expedite their reviews for relevant permits or other
approvals, and take related actions as necessary, consistent with
available resources and applicable laws. Information about Executive
Order 13274 is available on the following Web site: http://environment.fhwa.dot.gov/strmlng/index.asp.
B. Accelerated Review and Conditional Approval of Experimental Features
Under the FHWA SEP-15 Process
Special Experimental Project 15 (SEP-15) is designed to permit
tests and experimentation in the project development process for title
23, United States Code projects. Potential areas of experimentation for
CFP projects include commercialization of rights-of-way for new
facilities, innovative finance, tolling and contracting requirements.
More information about the SEP-15 program is available on the following
Web site: http://www.fhwa.dot.gov/ppp/index.htm. The Department is
considering further experimental programs that may apply to the
approved Corridors.
C. Expedited Commitment Process for TIFIA Credit Assistance
The TIFIA program provides 3 forms of credit assistance--secured
loans, loan guarantees, and standby lines of credit--for surface
transportation projects of national or regional significance. Each
Coalition seeking to incorporate TIFIA credit assistance as part of a
Corridor finance plan can receive a preliminary TIFIA commitment under
SEP-15.
The DOT would work with each Coalition to establish a preliminary
plan of finance incorporating TIFIA assistance. This preliminary
commitment would expedite the loan review process to be undertaken
should the Coalition's selected concessionaire seek TIFIA assistance.
Information about the TIFIA credit program is available on the
following Web site: http://tifia.fhwa.dot.gov/.
D. Conditional Approval for Private Activity Bonds
Upon application for private activity bonds (PABs) under Section
11143 of the Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU) (Pub. L. 109-59; Aug. 10,
2005), projects selected for the CFP may be granted conditional
approval for PABs. Section 11143 amended the Internal Revenue Code
(IRC) by adding a new exempt highway category to section 142 of the
IRC, ``Qualified Highway or Surface Transportation Facilities.'' Bonds
issued to provide for construction of Qualified Highway or Surface
Transportation Facilities must satisfy Internal Revenue Code
requirements associated with exempt facilities.
Private Activity Bonds are not subject to the general volume cap
limitation for exempt facility bonds; however, they are subject to a
nationwide $15 billion limitation that is allocated by the Secretary of
Transportation. Subject to the project qualifying as an exempt highway
or surface transportation facility project, the project's submission of
a successful application for PAB authority, and subject to selection
for the CFP, the Secretary will
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conditionally allocate a portion of the nationwide qualified highway or
surface transportation limitation to a Corridor project to facilitate
its financing and construction.
E. Priority to Tolling Programs
Projects selected for the CFP will be granted priority under the
limited toll programs contained in the Intermodal Surface
Transportation Efficiency Act of 1991 (ISTEA) (Pub. L. 102-240; Dec.
18, 1991), the Transportation Equity Act for the 21st Century (TEA-21)
(Pub. L. 105-178; June 8, 1998), or SAFETEA-LU. Additionally, the DOT
may consider using its experimental authority under SEP-15, or any
other experimental programs that may apply, to grant flexibility with
respect to tolling.
F. Access to DOT Experts
Coalitions accepted for the CFP will have access to DOT experts
knowledgeable in the areas of planning, the environment, public-private
partnerships, finance, construction, safety, operations, and asset
management.
G. Other Discretionary Funding
The DOT will work with Applicant(s) to identify other possible
discretionary funding sources.
Authority: 49 U.S.C. Sec. 101.
Issued on: August 24, 2006.
Maria Cino,
Acting Secretary.
[FR Doc. E6-14634 Filed 9-1-06; 8:45 am]
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