A final rule amending the Federal Transit Administration (FTA) regulations for Project Management Oversight (PMO) of transit capital investments was announced by FTA.
The final rule streamlines the PMO regulation by reducing the number of projects subject to FTA project management oversight and modifies the regulation to make it consistent with statutory changes. The final rule was published in the Federal Register Sept. 23.
“The number of transit capital projects and the infrastructure costs associated with them has increased significantly since the PMO program was first authorized in 1987,” said FTA Deputy Administrator K. Jane Williams. “This rule tailors the level of FTA oversight to the real costs, complexities and risks of major capital projects and right-sizes the role of federal oversight while eliminating unnecessary red tape for state and local leaders.”
The rule redefines a “major capital project” as a new fixed guideway project — or an expansion, rehabilitation or modernization of an existing fixed guideway system — with a total project cost of $300 million or more and with a federal investment of $100 million or more. The previous threshold defined a major capital project as a project costing $100 million or more but did not include federal support as a factor.
Under this administration, the U.S. Department of Transportation (DOT) has saved $4.37 billion in regulatory costs for the economy and consumers. The department has also far exceeded the president’s 2-for-1 plan, issuing at its peak 23 regulatory reform actions for every new single regulatory action. To date, DOT has issued 65 regulatory reform actions and six significant regulatory actions.
Federal public transportation law [49 U.S.C. § 5327(d)] requires FTA to maintain a PMO regulation. The rule has not been updated since 1989, and the industry and economic conditions have changed significantly since then. Other changes to the rule include updates to the elements of the required Project Management Plan that reflect industry best practices.
