A policy shift at the Department of Transportation changes the way that proposals for new public transit projects will be evaluated, opening the door for new transit in urban areas and potentially strengthening regional transit networks.
Under new rules, announced by Transportation Secretary Ray LaHood, cost effectiveness loses its dominance over decision makers and a new livability criteria takes into account environmental impact and economic development.
Since 2005, cost effectiveness was the gold standard by which transit projects applying for New Starts and Small Starts funding were judged, with the projects that could move the most people for the least money being looked on most favorably by the Federal Transit Administrationn.
That focus was attractive to those who wanted only to alleviate highway congestion, but it did little to revitalize urban cores and strengthen existing urban transit infrastructure.
"People were trying to find ways to reinvest in modern streetcars or urban transit systems and because they’re more costly, were running into a cost effectiveness as a big barrier," said Sam Zimbabwe, Director of the Center for Transit Oriented Development.
"Our new policy for selecting major transit projects will work to promote livability rather than hinder it," Secretary LaHood said. "We want to base our decisions on how much transit helps the environment, how much it improves development opportunities and how it makes our communities better places to live."
That's good news for cities like Cincinnati, Boise and Fort Lauderdale, who are close to implementing downtown streetcar projects. "Places that have built streetcars have seen multiple fold real estate investment over and above the public transit investment," Zimbabwe said. "Tampa, even Kenosha, WI saw some real estate investment. That wasn’t really being evaluated in the previous scheme."
There's also a benefit for those who depend on public transportation for personal economic opportunity. "When transit is built in a more dense urban environment, you’re serving more people – those are often people who would benefit from reduced transportation costs," Zimbabwe said. "The more than transit service can help these communities, it’s freeing people up to spend money on other things if they can get to a job."
Regions will still be able to invest in longer-distance light rail that focuses on commuters, but those projects will be evaluated on a level playing field with shorter-distance proposals that may have a higher initial cost due to land acquisition or a higher cost per passenger mile because of shorter trips.
"Our feeling is that’s something that regions should be able to decide by themselves, and they should figure out what the right investment is and come to the federal government and have a willing partner," said Zimbabwe. "We want to have that process be competitive and know we’re getting benefits out of federal spending."
*Photo: Flickr/paytonc. A restored PCC streetcar passes government offices in Kenosha, WI, where light rail helped support new development. *
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