Proposed Rule2025-12175

Private Investment Project Procedures

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
July 1, 2025

Issuing agencies

Transportation DepartmentFederal Transit Administration

Abstract

In this action, the Federal Transit Administration (FTA) seeks to reduce the regulatory burden on recipients subject to FTA's private investment procedures by removing an unnecessary reporting requirement.

Full Text

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<title>Federal Register, Volume 90 Issue 124 (Tuesday, July 1, 2025)</title>
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[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Proposed Rules]
[Pages 28693-28695]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12175]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

49 CFR Part 650

[Docket No. FTA-2025-0011]
RIN 2132-AB60


Private Investment Project Procedures

AGENCY: Federal Transit Administration (FTA), Department of 
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: In this action, the Federal Transit Administration (FTA) seeks 
to reduce the regulatory burden on recipients subject to FTA's private 
investment procedures by removing an unnecessary reporting requirement.

DATES: Comments should be filed by July 31, 2025. FTA will consider 
comments received after that date to the extent practicable.

ADDRESSES: You may send comments, identified by docket number FTA-2025-
0011 by any of the following methods:
    <bullet> Federal Rulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 
Follow the instructions for sending comments.
    <bullet> Fax: (202) 493-2251.
    <bullet> Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, 
Room W12-140, Washington, DC 20590-0001.
    <bullet> Hand Delivery/Courier: West Building, Ground Floor, Room 
W12-140, 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 
5 p.m. ET, Monday through Friday, except Federal holidays.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be posted without change to 
<a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal information 
provided.
    Docket: For access to the docket to read background documents or 
comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Background 
documents and comments received may also be viewed at the U.S. 
Department of Transportation, 1200 New Jersey Ave. SE, Docket 
Operations, West Building, Ground Floor, Room W12-140, Washington, DC 
20590-0001, between 9 a.m. and 5 p.m. EST, Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Please contact Mark Montgomery, Office 
of Chief Counsel, FTA, telephone at

[[Page 28694]]

202-684-5301 or <a href="/cdn-cgi/l/email-protection#3b565a4950155654554f5c54565e49427b5f544f155c544d"><span class="__cf_email__" data-cfemail="422f2330296c2f2d2c36252d2f27303b02262d366c252d34">[email&#160;protected]</span></a>. Office hours are from 8:30 
a.m. to 5 p.m., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 20013(b)(1) of the Moving Ahead for Progress in the 21st 
Century Act (MAP-21), Public Law 112-141 (July 6, 2012), required FTA 
to identify any provisions of 49 U.S.C. chapter 53, and any regulations 
or practices thereunder, that impede greater use of public-private 
partnerships and private investment and to develop and implement, on a 
project basis, procedures and approaches that address such impediments. 
Section 20013(b)(1) of MAP-21 provided FTA discretion in addressing 
impediments to public-private partnerships.
    On May 30, 2018, FTA published the final rule promulgating the 
Private Investment Project Procedures at 49 CFR part 650 with the 
primary goal of promoting the use of public-private partnerships and 
private investment in public transportation capital projects (83 FR 
24672). Since issuing the final rule, FTA has determined that a 
reporting requirement, not required by MAP-21, has never been used and 
is inconsistent with FTA's purpose for issuing the rule.

II. Discussion of Major Changes

    To reduce the burden for recipients, FTA proposes to remove subpart 
C (Reporting) from 49 CFR part 650. This subpart requires recipients 
with projects for which the Administrator has modified or waived any 
FTA requirement pursuant to 49 CFR 650.11, to submit to FTA a report 
evaluating the effects of the modification or waiver on the delivery of 
the project. This subpart requires the report to describe the 
modification or waiver applied to the project; evaluate the success or 
failure of the modification or waiver; evaluate the extent to which the 
modification or waiver addressed impediments to greater use of public-
private partnerships and private investment in public transportation 
capital projects; and may include recommended changes with an 
explanation of how the changes would encourage greater use of public-
private partnerships and private investment in public transportation 
capital projects. Under the current regulation, an initial report is 
due one year after completing construction of the project and, for 
projects that include private entity involvement in operations or 
maintenance, a second report is due two years after the project begins 
revenue operations.
    Since issuing this rule, FTA has not received any reports pursuant 
to this section and thus determined this requirement is unnecessary and 
fails to promote public-private partnerships because it adds an 
additional burden to recipients that seek modification or waiver. 
Therefore, FTA proposes to promote public-private partnerships and 
reduce unnecessary regulatory burdens on FTA recipients by removing 
this subpart and reporting requirement.
    To ensure consistency with the objectives of part 650, as well as 
Administration priorities, including Executive Order (E.O.) 14192 
(``Unleashing Prosperity Through Deregulation''), FTA proposes this 
deregulatory action.

III. Regulatory Analyses and Notices

A. Executive Orders 12866 and 13563 (Regulatory Review)

    E.O. 12866 (``Regulatory Planning and Review''), as supplemented by 
E.O. 13563 (``Improving Regulation and Regulatory Review''), directs 
Federal agencies to assess the benefits and costs of regulations and to 
select regulatory approaches that maximize net benefits when possible. 
This action does not meet the criteria of a ``significant regulatory 
action.'' Therefore, the Office of Management and Budget (OMB) has not 
reviewed this action.
    The proposed rule would eliminate a reporting requirement for 
recipients receiving a modification or waiver pursuant to 49 CFR 
650.11. To date, no recipient has submitted a report. Although 
recipients would not experience direct cost savings from removing the 
reporting requirement if they do not need to submit reports, removing 
the requirement could reduce the time needed for recipients to 
understand federal requirements.

B. Executive Order 14192 (Deregulatory Action)

    E.O. 14192 (``Unleashing Prosperity Through Deregulation'') 
requires that for ``each new [E.O. 14192 regulatory action] issued, at 
least ten prior regulations be identified for elimination.'' 
Implementation Guidance for E.O. 14192, issued by OMB (Memorandum M-25-
20, March 25, 2025) defines an E.O. 14192 deregulatory action as ``an 
action that has been finalized and has total costs less than zero.'' 
This proposed rule, if finalized, is expected to have total costs less 
than zero, and therefore is expected to be an E.O. 14192 deregulatory 
action.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) 
requires Federal agencies to assess the impact of a regulation on small 
entities unless the agency determines the regulation is not expected to 
have a significant economic impact on a substantial number of small 
entities.
    FTA has determined that the proposed rule would not have a 
significant effect on a substantial number of small entities. The 
proposed rule would eliminate a reporting requirement for recipients 
receiving a modification or waiver pursuant to 49 CFR 650.11. To date, 
no recipient has submitted a report.

D. Unfunded Mandates Reform Act of 1995

    FTA has determined that this rule would not impose unfunded 
mandates, as defined by the Unfunded Mandates Reform Act of 1995 (Pub. 
L. 104-4). This rule does not include a Federal mandate that may result 
in expenditures of $100 million or more in any one year, adjusted for 
inflation, by State, local, and tribal governments in the aggregate or 
by the private sector.

E. Executive Order 13132 (Federalism Assessment)

    E.O. 13132 (``Federalism'') requires agencies to assure meaningful 
and timely input by State and local officials in the development of 
regulatory policies that may have a substantial direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. This action has been analyzed in 
accordance with the principles and criteria contained in E.O. 13132 
dated August 4, 1999, and FTA determined this action does not have 
sufficient Federalism implications to warrant the preparation of a 
Federalism assessment. FTA also determined this action will not preempt 
any State law or regulation or affect the States' ability to discharge 
traditional State governmental functions.

F. Paperwork Reduction Act

    Federal agencies must obtain approval from the Office of Management 
and Budget (OMB) for each collection of information they conduct, 
sponsor, or require through regulations. FTA has analyzed this rule 
under the Paperwork Reduction Act and determined it does not impose 
additional information collection requirements for the purposes of the 
Act above and beyond existing information collection clearances from 
OMB.

[[Page 28695]]

G. National Environmental Policy Act

    Federal agencies are required to adopt implementing procedures for 
the National Environmental Policy Act (NEPA) that establish specific 
criteria for, and identification of, three classes of actions: (1) 
Those that normally require preparation of an Environmental Impact 
Statement, (2) those that normally require preparation of an 
Environmental Assessment, and (3) those that are categorically excluded 
from further NEPA review. This rule qualifies for categorical 
exclusions under 23 CFR 771.118(c)(4) (planning and administrative 
activities that do not involve or lead directly to construction). FTA 
has evaluated whether the rule will involve unusual or extraordinary 
circumstances and has determined that it will not.

H. Executive Order 13175 (Tribal Consultation)

    FTA has analyzed this rule under E.O. 13175 (``Consultation and 
Coordination with Indian Tribal Governments'') and it will not have 
substantial direct effects on one or more Indian tribes; will not 
impose substantial direct compliance costs on Indian tribal 
governments; and will not preempt tribal laws. Therefore, a tribal 
summary impact statement is not required.

I. Executive Order 13211 (Energy Effects)

    FTA has analyzed this action under E.O. 13211 (``Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, or 
Use''). FTA has determined this action is not a significant energy 
action under that order and is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy. Therefore, a 
Statement of Energy Effects is not required.

J. Privacy Act

    Anyone can search the electronic form of all comments received into 
any of our dockets by the name of the individual submitting the comment 
(or signing the comment, if submitted on behalf of an association, 
business, labor union, etc.). You may review U.S. DOT's complete 
Privacy Act Statement in the Federal Register published on April 11, 
2000 (65 FR 19477).

K. Regulation Identifier Number (RIN)

    A Regulation Identifier Number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the heading 
of this document can be used to cross-reference this rule with the 
Unified Agenda.

List of Subjects in 49 CFR Part 650

    Grant programs-transportation, Mass transportation, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, FTA proposes to amend title 
49, Code of Federal Regulations, part 650, as set forth below:

PART 650--PRIVATE INVESTMENT PROJECT PROCEDURES

0
1. The authority citation for part 650 continues to read as follows:

    Authority:  Sec. 20013(b)(5), Pub. L. 112-141, 126 Stat 405; 49 
CFR 1.91.

Subpart C--Reporting [Removed and Reserved]

0
2. Remove and reserve subpart C, consisting of Sec.  650.21.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.91.
Tariq Bokhari,
Acting Administrator.
[FR Doc. 2025-12175 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-57-P


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Indexed from Federal Register on July 1, 2025.

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