DEC 01 208 The Honorable Timothy Jonson Chairman Committee on Banking, Housing, and Urban Affairs United States Senate ‘Washington, DC 20510 Dear Mr, Chairman Pursuant 10 49 U.S.C. § 5305(R}(5),I write to inform you that | intend to execute a Pll Funding Grant Agreement (FFGA) with the Massachusets Bay Transportation Authority (MBIA) whereby the Federal Transit Administration (FTA) will provide $996, 21,010 in Section $309 Capital Investment Grant rogram (New Starts) funds for design and eonsiruetion lof he Cambridge to Meford Green Line Extension project (hereafter, che “Projeet”). These ‘New Sint funds comprise 43 percent of the total Project eost of $2.297,618,856, The balance of fuads totaling $1,301,497,856 will come from the following sources: $996,121, 856 from ‘Commonsscalth of Massachusetts General Obligation Bonds and $305,376,000 from ‘Commornsseath Operating Funds. ‘This FFGA wil be signed no earie than 30 days ftom the date of this lence ‘existing Green Line light rail service from a relocated Lechmere Staion in Cambridge along two ‘branches ~ one to College Avenue in Medford and one to Union Square in Somerville ~ traveling within the existing MBTA Lowell and Fitchburg lines? commuter rail rights-of-way. The Project includes construction afsix new stations, relocation of ane existing station, purchase of 24 new rl vehicles, constuction ofa new vehicle maintenance feclity, easiruction of a cle and pedestrian path in Somerville, and relocation of some existing commuter ated ridership oa the Project is 97,900 daily linked trips using inputs of current population and employment. MBTA estimates that consraction of the GLX will generate approsimately 140 design jobs (in the peak design year), approximately 700 construction jobs (inthe peak construction year), and ‘appeoximately 10 jobs for operation and maintenance of the Project (ongoing). ‘The scheduled revenue sevice date for the Project is fume 29. 2021Project Justification ‘The Project will improve mobility by redosing transit iavel times for residents of Cambridge, Somerville, and Medion! by providing a fully grade separated righi-of-way to downtown Boston, aad the greater metropolitan are, The project will povide a one-seat anit ride to ‘approximately 342,000 jobs inthe Boston eenisal business district and Green Line eorridr. The Project will serve some of the region's most densely populated communities na currently served by mul transit. Approsimately 26% ofthe 75,300 residents who live within one-half mile of ‘proposed sitions are transit dependent hecause they do not own or ave access to an automobile ‘The Project is a requirement contained in the Massachusetts Departiment of Environmental Protestion’s State Implementation Plan (SIP), approved in 2008, to comply with Federal Clean Air Act standards, The cities of Cambridge, Somerville, and Medford are located i the U.S. Environmental Protection Administration's (EPA) Boston maintenance area for carbon ‘monoxide (CO). In addition, the Project fulfils a longstanding commitment to inaprove air ‘quality and increase publie transportation inthe Boston area asa mitigation measue forthe Boston Cental Anery/Mighway Tunnel project completed in 2007. Project Evaluation ‘The Project was recomunended for an FFGA in the President's Fiscal Year 2015 budget. FTA, ‘evaluated the Project according to the Moving Ahead for Progress in the 21st Century Act (MAP-21) statutory erteria ad it received an overall rating of “Median High’ By longstanding practice, PTA does not execute an FPGA fora project unless and until we are ssfc thatthe sponsor has the ality to complete the project within the Baseline Cost Fstimate andthe Baseline Schedule, and that the sponsor has demonstrated the necessary local financial commitment o construc, operate, and maintain the project strictly in accordance with the ienns ofthe agreement. In evaluating the readiness ofa project for an FFGA, we consi, specifically, the degree of uncertainty underlying the eaptal cost estimates: any remeining risks inherent in those estimates; the availabilty of contingency finding to caver any unanticipated cost increases; any remaining uncertainties regarding the now-Federal sources of funding; and any neod for acquisition of real estate or railroad right-of-way. It is FTA‘s determination thatthe Project meets all of these conditions In accordance with standard practice, FTA and its Project Management Oversight Contractor (PMOC) have reviewed MBTA’s technical capacity an capability, including the Project ‘Managersent Plan and sub-plans. A copy of the PMOC report is enclosed. The PMOC, FTA, and MBTA completed a risk assessment and believe tat al known risks have been identified through the risk assessment workshops andl thatthe Project cost estimate is reasonable ifthe MBTA diligently follows its risk und eootingeney management plans and procedures FTA and its Financial Management Contractor have reviewed the financial plan submitted by the MBTA, and have concluded that the MBTA has the requisite financial capacity to complete this Projet and continue to operate and maintain the existing systom. A copy of the report is enclosed.FFGA Contract and Accompanying Materials rncosed is « capy of the FFGA that FTA plans fo execute with the MBTA. Please not, in particular, Attachment 6 (Schedule of Federal Funds forthe Project) wo the proposed FFGA, ‘which sets forth the total and annual congressional appropriations that are necessary to maintain te Project's construction schedule and ensuze that the Peoject ean open for tevenue service on the date planned. The Schedule of Federal Funds set forth ia Atachment 6 demonstrates total award of $96,121,000 in New Starts funds through Federal Fiseal Year 2022. Also enclosed is an analysis of FTA"s annual commitments for current and anticipated FFGAs against the program authorization. A similar letter has been sent o the follawing: the Ranking Member of the Senare Committee on Tanking, Housing, and Urban Affairs; dhe Chairman and Raaking Member ofthe Subcommittee ‘on Transportation, Housing and Urban Development and Related Agencies of the Senate ‘Committee on Appropriations the Chairman and Ranking Member ofthe Huse Committee on Transportation und lnfastructure; and the Chairman and Ranking Member ofthe Subcommittee ‘on Transportation, Housing ane Urban Development and Related Agencies ofthe House Committee on Appropriations IE can provide further information or assistance, please donot hesitate to contact me direely at (202) 366-4040, Sincerely, Sheri Melee ‘Therese W. MeMfillan ‘Acting Administrator Enclosures: PRGA FGA Draft Approval Letter PMOC FFGA Readiness Report uncial Capacity Assessment Seetion $309 Payout Schedule Authorizations vs. Commitment Table for New Stats