Rule2026-11273
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
June 4, 2026
Effective
July 6, 2026
Issuing agencies
Transportation DepartmentFederal Transit Administration
Abstract
The Federal Transit Administration (FTA) amends its Private Investment Project Procedures regulation 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 91 Issue 107 (Thursday, June 4, 2026)</title>
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[Federal Register Volume 91, Number 107 (Thursday, June 4, 2026)]
[Rules and Regulations]
[Pages 33651-33653]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11273]
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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: Final rule.
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SUMMARY: The Federal Transit Administration (FTA) amends its Private
Investment Project Procedures regulation to reduce the regulatory
burden on recipients subject to FTA's private investment procedures by
removing an unnecessary reporting requirement.
DATES: This rule is effective July 6, 2026.
FOR FURTHER INFORMATION CONTACT: Mark Montgomery, Office of Chief
Counsel, FTA, telephone at 202-684-5301 or <a href="/cdn-cgi/l/email-protection#86ebe7f4eda8ebe9e8f2e1e9ebe3f4ffc6e2e9f2a8e1e9f0"><span class="__cf_email__" data-cfemail="8ae7ebf8e1a4e7e5e4feede5e7eff8f3caeee5fea4ede5fc">[email protected]</span></a>.
Office hours are from 8:30 a.m. to 5 p.m., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION:
I. Statutory Authority and Executive Summary
Section 20013(b)(1) of the Moving Ahead for Progress in the 21st
Century Act (MAP-21), Public Law 112-141 (July 6, 2012), requires 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 provides FTA discretion in
[[Page 33652]]
addressing impediments to public-private partnerships. Since issuing
the Private Investment Project Procedures, 49 CFR part 650, in 2018 (83
FR 24672), FTA determined that the reporting requirement in subpart C,
which is not required by MAP-21, has never been used and is
inconsistent with FTA's purpose for issuing 49 CFR part 650.
Accordingly, FTA issued a notice of proposed rulemaking (NPRM) on July
1, 2025 (90 FR 28693) that proposed removing this requirement from the
regulation.
After providing an opportunity for public notice and comment and
consideration of comments received, FTA is removing subpart C
(Reporting) from 49 CFR part 650. This subpart required recipients with
projects for which the Administrator 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 required that the report 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 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 subpart C, an initial report was due one year after
completing construction of the project and, for projects that include
private entity involvement in operations or maintenance, a second
report was due two years after the project begins revenue operations.
Since issuing 49 CFR part 650, FTA has not received any reports
under subpart C. FTA determined the requirement was unnecessary and
failed to promote public-private partnerships due to the added burden
on recipients seeking a modification or waiver.
II. Response to Comments and Final Rule
FTA received only one comment on this NPRM from a public
transportation trade association. The commenter expressed general
support of FTA removing requirements that impede greater use of public-
private partnerships, stating that reducing unnecessary reporting
requirements is an important first step. The commenter requested that
FTA engage with stakeholders to discuss and identify additional ways to
facilitate greater private sector roles. The commenter recommended to
FTA a framework to develop financial and operating partnerships between
private sector and public transportation agencies.
Response: FTA appreciates the commenter's support of FTA's proposed
change and FTA's rationale behind the proposed change. FTA will take
into consideration the commenter's recommendation to engage
stakeholders to facilitate greater use of public-private partnerships
in the future.
Based on the foregoing and FTA's determination, FTA is adopting the
change as proposed and is removing 49 CFR part 650 subpart C.
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.
This final rule eliminates a reporting requirement for recipients
receiving a modification or waiver pursuant to 49 CFR 650.11. To date,
no recipient has submitted a report. Though recipients would not
experience direct cost savings from removing the reporting requirement
if they do not need to submit reports, removing the requirement reduces
the burden needed for recipients to comply with 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 rule will have total costs less than zero and, therefore, is
considered 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 this rule will not have a significant
effect on a substantial number of small entities. The rule eliminates 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 will 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 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.
G. National Environmental Policy Act
The Department has analyzed the environmental impacts of this
notice of
[[Page 33653]]
proposed rulemaking pursuant to the National Environmental Policy Act
of 1969 (NEPA) (42 U.S.C. 4321 et seq.). FTA has determined that this
rule is categorically excluded pursuant to 23 CFR 771.118(c)(4).
Categorical exclusions are categories of actions that the agency has
determined normally do not significantly affect the quality of the
human environment and, therefore, do not require either an
environmental assessment (EA) or environmental impact statement (EIS).
See DOT Order 5610.1D Sec. 9. In analyzing the applicability of a
categorical exclusion, the agency must also consider whether
extraordinary circumstances are present that would warrant the
preparation of an EA or EIS. Id. Sec. 9(b). This rulemaking, which
removes an unnecessary reporting requirement, is categorically excluded
pursuant to 23 CFR 771.118(c)(4): ``[p]lanning and administrative
activities not involving or leading directly to construction, such as:
promulgation of rules, regulations, directives, or program guidance.''
FTA does not anticipate any environmental impacts, and there are no
extraordinary circumstances present in connection with this rulemaking.
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 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 amends 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--[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.
Jamie Pfister,
Acting Executive Director.
[FR Doc. 2026-11273 Filed 6-3-26; 8:45 am]
BILLING CODE 4910-57-P
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