[Code of Federal Regulations]

[Title 49, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR268.11]



[Page 867-868]

 

                        TITLE 49--TRANSPORTATION

 

       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 

                             TRANSPORTATION

 

PART 268_MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY DEPLOYMENT 

 

              Subpart B_Procedures For Financial Assistance

 

Sec.  268.11  Project eligibility standards.



    (a) Project eligibility standards for preconstruction planning 

financing. (1) As required by 23 U.S.C. 322(d)(4), in order to be 

eligible to receive financial assistance, a Maglev project shall:

    (i) Involve a segment or segments of a high-speed ground 

transportation corridor that exhibit Partnership Potential;

    (ii) Require an amount of Federal funds for project financing that 

will not exceed the sum of Federal Maglev Funds, and the amounts made 

available by States under STP and CMAQ;

    (iii) Result in an operating transportation facility that provides a 

revenue producing service;

    (iv) Be undertaken through a public and private partnership, with at 

least \1/3\ of Full Project Costs paid using non-Federal funds;

    (v) Satisfy applicable statewide and metropolitan planning 

requirements;

    (vi) Be approved by FRA based on an application submitted by a State 

or authority designated by one or more States;

    (vii) To the extent that non-United States Maglev technology is used 

within the United States, be carried out as a technology transfer 

project; and

    (viii) Be carried out using materials at least 70 percent of which 

are manufactured in the United States.

    (2) FRA recognizes that applicants for preconstruction planning 

grants will not have detailed information with respect to some of the 

requirements of paragraph (a)(1) of this section, and that the purpose 

of a preconstruction planning grant is to develop much of this 

information with respect to a particular Maglev project. As required by 

Sec.  268.15, an applicant will need to provide whatever information it 

has with respect to each of the requirements of paragraph (a)(1) of this 

section, together with a certification that the applicant fully intends 

to comply with the requirements of this paragraph (a) should its project 

be selected by FRA for final design, engineering and construction 

financing.

    (b) Project eligibility standards for final design, engineering, and 

construction financing. FRA will select the most promising Maglev 

project for final design, engineering, and construction financing. To be 

eligible to be considered, the project must meet each of the following 

requirements; these requirements restate the requirements in paragraph 

(a)(1) of this section, but with more detail and in a different order:

    (1) Purpose and significance of the project. (i) The project 

description shall point to a Maglev facility and daily operation the 

primary purpose of which is the conduct of a revenue-producing passenger 

transportation service between distinct points, rather than a service 

solely for the passengers' riding pleasure.

    (ii) The project description shall incorporate scheduled operation 

at a top speed of not less than 240 mph.

    (2) Benefits for the American economy. The project description shall 

include a certification as to paragraphs (b)(2) (i) and (ii) of this 

section and, as appropriate, a technology acquisition/transfer plan 

which describes the strategy for their accomplishment.

    (i) Processes will be established that will enable an American-owned 

and -sited firm (or firms) to gain, in the course of the project, the 

capability to participate in the design, manufacture, and installation 

of the facilities and vehicles needed for a Maglev operation, if the 

owner of the selected version of Maglev technology is not an American-

owned and -sited firm (thus meeting the technology transfer requirement 

of 23 U.S.C. 322).

    (ii) The 70 percent U.S. content requirement content of 23 U.S.C. 

322 will be carried out.

    (3) Partnership potential. The project shall exhibit Partnership 

potential by satisfying the following:

    (i) A private/public partnership must be in place that is ready, 

willing, and able to finance, construct, operate, and maintain the 

project;



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    (ii) The private/public partnership either owns the version of 

Maglev technology proposed to be implemented in the project, or has an 

agreement with the owner which affords full cooperation to the 

partnership in progressing the project, including implementation of the 

technology acquisition/transfer plan if applicable; and

    (iii) The recipient of a preconstruction planning grant or the FRA 

has developed and endorsed a projection of system capital costs, demand, 

revenues, operating expenses, and total costs and benefits, that:

    (A) Covers either the entire corridor in which the Maglev project is 

involved (``Corridor''), or the project considered independently;

    (B) Demonstrates that private enterprise would be able to run the 

Corridor or the project--once built and paid for--as a completely self-

sustaining entity, in which revenues will cover operating expenses and 

continuing investment needs; and

    (C) Shows total benefits equal to or exceeding total costs.

    (4) Funding Limits and Sources. The project description shall 

include a financing plan that demonstrates project completion with the 

$950 million in Federal Maglev Funds, funds remaining unobligated from 

the $55 million in contract authority, and the funds made available 

under STP and CMAQ. The project that is selected will be eligible for 

other forms of financial assistance provided under title 23 and TEA 21, 

including loans, loan guarantees, and lines of credit. However, at least 

\1/3\ of Full Project Costs must come from non-Federal Funds.

    (5) Project Management. The State, the technology owner, and all 

other relevant project partners must include in the project description, 

an agreed upon--

    (i) Management plan that defines the partnership, responsibilities, 

and procedures for accomplishing the project;

    (ii) Project schedule that shows how timely implementation of the 

project will be accomplished, including, to the extent possible, a 

construction plan and schedule; and

    (iii) Financial plan that shows how funds will flow, in accordance 

with the other requirements of this subsection.

    (6) Planning/environmental process--(i) Assessment of environmental 

consequences of the proposed project. Recipients of preconstruction 

planning grants shall conduct an EA in support of the project 

description; and will prepare additional environmental studies for the 

project. The EA shall include information to support the grantee's 

decision to pursue the proposed project. The grantee shall develop the 

information and discuss the environmental consequences of the proposed 

technology and route in sufficient detail for the preparation of 

appropriate documentation by FRA to support selection of one project. 

This shall include: the identification of potential positive and 

negative environmental effects resulting from the technology (e.g. 

energy consumption compared to other transportation options); generic 

noise emissions at various distances from the centerline of the 

guideway; changes in electromagnetic field levels at various distances 

from the centerline of the guideway; and environmental screening of the 

proposed route (e.g., identification of land use; identification of 

endangered species possibly present and location of their critical 

habitat; identification of navigable waterways, wetlands and other 

sensitive water resources; and identification of the location of parks, 

wildlife refuges, historic and archaeological sites of National, State 

or local significance and other sites protected by section 4(f) of the 

Department of Transportation Act). The latter information and analysis 

shall be submitted four months in advance of the remainder of the 

project description. The above list is illustrative only. Grantees will 

be expected to review proposed work statements with FRA at pre-

application meetings or through some other means to develop the final 

scope of this environmental review.

    (ii) The project description must also include letters of 

endorsement of project implementation from all the State departments of 

transportation involved, and from all Metropolitan Planning 

Organizations for metropolitan areas that would be served by the 

project.



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