Notice2026-19571
Modification of the Application Process for Special Experimental Project 16 (SEP-16), Special Experimental Project 15 (SEP-15), and Test and Evaluation Project 045 (TE-045)
Primary source
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Published
September 24, 2026
Issuing agencies
Transportation DepartmentFederal Highway Administration
Abstract
FHWA is seeking comments on a new process for submission and evaluation of applications under SEP-16, SEP-15, and TE-045 (collectively the "three experimental projects"). The purpose of the modification is to achieve a streamlined, uniform process to reduce burden and improve the efficiency of the application and evaluation process for all three experimental projects.
Full Text
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<title>Federal Register, Volume 91 Issue 184 (Thursday, September 24, 2026)</title>
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[Federal Register Volume 91, Number 184 (Thursday, September 24, 2026)]
[Notices]
[Pages 60695-60696]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19571]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
[Docket No. FHWA-2026-0628]
Modification of the Application Process for Special Experimental
Project 16 (SEP-16), Special Experimental Project 15 (SEP-15), and Test
and Evaluation Project 045 (TE-045)
AGENCY: Federal Highway Administration (FHWA), U.S Department of
Transportation (DOT).
ACTION: Notice; request for comments.
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SUMMARY: FHWA is seeking comments on a new process for submission and
evaluation of applications under SEP-16, SEP-15, and TE-045
(collectively the ``three experimental projects''). The purpose of the
modification is to achieve a streamlined, uniform process to reduce
burden and improve the efficiency of the application and evaluation
process for all three experimental projects.
DATES: Comments must be received on or before October 26, 2026. Late-
filed comments will be considered to the extent practicable.
ADDRESSES: To ensure that you do not duplicate your docket submissions,
please submit comments by only one of the following means:
<bullet> Federal eRulemaking Portal: Go to <a href="http://www.regulations.gov">www.regulations.gov</a> and
follow the online instructions for submitting comments;
<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;
<bullet> Hand Delivery: West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5
p.m. E.T., Monday through Friday, except Federal holidays. The
telephone number is (202) 366-9329;
<bullet> Instructions: You must include the agency name and docket
number at the beginning of your comments. All submissions received,
including any personal information provided, will be posted without
change or alteration to <a href="http://www.regulations.gov">www.regulations.gov</a>. For more information, you
may review the U.S. Department of Transportation's complete Privacy Act
Statement published in the Federal Register on April 11, 2000 (65 FR
19477).
FOR FURTHER INFORMATION CONTACT: Ms. Samantha Pratt, Office of
Infrastructure, (737) 389-1048, <a href="/cdn-cgi/l/email-protection#5102303c303f2539307f012330252511353e257f363e27"><span class="__cf_email__" data-cfemail="4a192b272b243e222b641a382b3e3e0a2e253e642d253c">[email protected]</span></a>, Federal Highway
Administration, 100 Centennial Mall North Room 220, Lincoln, NE 68508;
or Mr. Michael Harkins, Office of the Chief Counsel, (202) 366-1523,
<a href="/cdn-cgi/l/email-protection#f8b5919b90999d94d6b0998a9391968bb89c978cd69f978e"><span class="__cf_email__" data-cfemail="e8a5818b80898d84c6a0899a8381869ba88c879cc68f879e">[email protected]</span></a>, Federal Highway Administration, 1200 New
Jersey Avenue SE, Washington, DC 20590. Office hours are from 8:00 a.m.
to 4:30 p.m., E.T., Monday through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
This document and all comments received may be viewed online
through the Federal eRulemaking portal at <a href="http://www.regulations.gov">www.regulations.gov</a>. The
website is available 24 hours each day, 365 days each year. An
electronic copy of this document may also be downloaded by accessing
the Office of the Federal Register's website at:
<a href="http://www.FederalRegister.gov">www.FederalRegister.gov</a> and the U.S. Government Publishing Office's
website at: <a href="http://www.GovInfo.gov">www.GovInfo.gov</a>.
Background
FHWA undertakes experimental projects pursuant to the authority
granted to the Secretary in Title 23 United States Code (U.S.C.)
502(b), providing the experimental authority to test, develop or assist
in testing and developing any material, invention, patented article, or
process. For information on the background and legal authority for each
of the three projects, please refer to the Federal Register notices
announcing each experimental project, as follows.
SEP-16 was originally announced in a Federal Register notice
published on September 20, 2018, to test and evaluate the delegation of
program-level responsibilities of the Federal-aid highway program to
States (83 FR 47674). SEP-16 was expanded to include project-level
responsibilities in a Federal Register notice published June 24, 2020
(85 FR 38011). SEP-16 may be used to test deviations from Title 23
statutory, regulatory, or policy provisions, provided the experimental
features are consistent with the overall purpose and intent of the
underlying statute, regulation, or policy being tested. Actions
explicitly prohibited by statute cannot be the subject of a SEP-16
experiment. The experiment must be consistent with other Federal laws
that apply to Title 23 funded activities.
SEP-15 was announced in a Federal Register notice published on
October 6, 2004, to encourage testing and experimentation throughout
the entire development process for transportation projects aimed at
increased project management flexibility, more innovation, improved
efficiency, timely project implementation and new revenue streams
including private investment. (69 FR 59983). SEP-15 addresses four
major components of project delivery; contracting, compliance with
FHWA's National Environmental Policy Act (NEPA) process and other
environmental requirements, right-of-way acquisition, and project
finance. Given the scope of some of the proposals that have surfaced,
elements of the transportation planning process may be involved as
well. SEP-15 projects cannot be used to
[[Page 60696]]
modify environmental and other requirements external to Title 23.
FHWA announced the establishment of the TE-045 Project in a Federal
Register notice published on April 8, 1994 (59 FR 16889). The purpose
of TE-045 is to develop innovative financing concepts which have the
potential to increase investment or reduce public agency costs. TE-045
projects must comply with non-Title 23 statutory and regulatory
requirements such as NEPA, relocation assistance, etc.
Currently the application processes for the three experimental
projects are not consistent. For example, the application and
evaluation process for a SEP-16 proposal is a four-step process
including submission of a Letter of Interest, Concept Paper, and
Detailed Proposal. If the experiment proposed is accepted, then a
Memorandum of Understanding is executed. The application and evaluation
process for a SEP-15 proposal is a three-step process that involves
submission of an application, issuance of an Acceptance Letter by FHWA,
and execution of an Early Development Agreement. When there are
uncertainties whether an experimental feature is appropriate for SEP-
15, the State DOT may submit a Concept Paper to FHWA which may provide
a basis to offer a preliminary assessment of the proposed experiment.
The application process for TE-045 is a one-step process which only
requires submission of a proposal. FHWA is proposing to restructure and
standardize the application and evaluation process of proposed
experiments under the three experimental projects. This notice seeks
comments on the proposed process as outlined herein.
Proposed Application Process for SEP-16, SEP-15, and TE-045
The proposed application and evaluation process for the three
experimental projects consists of two steps.
Step 1: Letter of Interest (LOI). A State DOT \1\ submits a LOI to
its respective FHWA Division Office. The LOI should provide a brief
synopsis of the proposed experiment, typically no more than two pages,
and should:
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\1\ Under TE-045, SEP-15 and SEP-16 only State DOTs (23 U.S.C.
101) are eligible to submit proposed experiments. A State DOT may
partner with localities and other transportation entities but in all
cases a LOI and application must be submitted by a State DOT.
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a. Identify the experimental project proposed under TE-045, SEP-15,
or SEP-16.
b. Describe the proposed experiment including but not limited to
identification of the section of Title 23, U.S.C., 23 CFR, FHWA policy
or guidance that would be tested and evaluated.
c. Demonstrate the State has, or will apply, the necessary controls
and resources \2\ to oversee the test and experiment, including
identification of any project partners and their respective roles and
responsibilities.
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\2\ For proposed experiments under SEP-16, the LOI should
demonstrate that the State DOT has the necessary laws, regulations,
controls, and resources in place to assume the Federal role for the
responsibilities requested. If applicable, the State DOT may use
experience with assumption of authorities under 23 U.S.C. 106(c) and
other authorities to demonstrate readiness to assume the requested
responsibilities.
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d. Provide a proposed duration for conducting the test and
experimentation, including, as applicable, a timeline for any
transition activities both before and after the experimental period.
e. Summarize the anticipated benefits including:
[cir] Reasons why the State is seeking to undertake the experiment.
[cir] Anticipated improvements to program or project delivery.
[cir] Related cost or time savings.
Step 2: Work Plan. After reviewing the LOI and coordinating with
FHWA Headquarters, the FHWA Division Office, in writing, either invites
the State DOT to proceed with the development of a Work Plan or
notifies the State DOT its proposal has not been accepted. If the
proposal is accepted, the FHWA Division Office and the State DOT
develop a Work Plan, in coordination with FHWA Headquarters, to carry
out the accepted experiment under the respective TE-045, SEP-15 or SEP-
16. The Work Plan will be a living document and may be modified as
necessary during the duration of the experiment.
Although a Work Plan will be tailored to the respective TE-045,
SEP-15 or SEP-16 at a minimum, all will include the following:
a. Description of each accepted experiment and conditions under
which the experiment will be conducted.
b. Performance measures and evaluation criteria to evaluate the
success of the experiment.
c. Duration of the experiment and, as applicable, a transition plan
to return to pre-experimental process and procedures.
d. Reporting milestones to document the status and eventual outcome
of the experiment. For each accepted experiment, reports shall include:
[cir] Description of the experiment.
[cir] Lessons learned.
[cir] Evaluation of the success of the experiment.
[cir] Any recommend statutory, regulatory, and/or policy changes
with an explanation of how the changes will improve the delivery of the
Federal-aid highway program.
Conclusion
FHWA is committed to supporting opportunities to experiment with
alternative and innovative approaches to implementing Federal-aid
highway programs and projects. To this end, this notice seeks comments
on a proposed uniform application and evaluation process for SEP-16,
SEP-15, and TE-045 that is streamlined and more consistent across the
three experimental projects.
Authority: 23 U.S.C. 315 and 502.
Sean McMaster,
Administrator, Federal Highway Administration.
[FR Doc. 2026-19571 Filed 9-23-26; 8:45 am]
BILLING CODE 4910-22-P
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