Regulatory Scoring
Agency:
DOT
Rule title:
Credit Assistance for Surface Transportation Projects
RIN
2105-AD70 RIA No
Stage Publication Date
Proposed 1/21/2009
Rule summary:
Recent changes to the Transportation Infrastructure Finance and Innovation Act (TIFIA) statute require
changes in the TIFIA rule. In addition, the DOT has gained substantial administrative experience since the
TIFIA rule was last amended in 2000. The DOT proposes to amend the TIFIA rule to implement the recent
statutory changes and to incorporate certain other changes to the rule that it considers will improve the
efficiency of the program and its usefulness to borrowers. In addition, the DOT seeks comment on policy
issues with potentially significant impact on the TIFIA project selection process.
Openness Score Comments
1. How easily were the RIA, the proposed rule, and any supplementary
materials found online? 3 1A
2. How verifiable are the data used in the analysis? 3 1B
3. How verifiable are the models and assumptions used in the analysis? 2 1C
4. Was the Regulatory Impact Analysis comprehensible to an informed
layperson? 3 1D
Total Openness (Sum of 1-4) 11
Analysis Score Comments
5. How well does the analysis identify the desired outcomes and demonstrate
that the regulation will achieve them? 2 2A
6. How well does the analysis identify and demonstrate the existence of a
market failure or other systemic problem the regulation is supposed to solve? 1 2B
7. How well does the analysis assess the effectiveness of alternative
approaches? 1 2C
8. How well does the analysis assess costs and benefits? 1 2D
Total Analysis (Sum of 5-8) 5
Use Score Comments
9. Does the proposed rule or the RIA present evidence that the agency used
the Regulatory Impact Analysis? 0 3A
10. Did the agency maximize net benefits or explain why it chose another
alternative? 0 3B
11. Does the proposed rule establish measures and goals that can be used
to track the regulation’s results in the future? 0 3C
12. Did the agency indicate what data it will use to assess the regulation’s
performance in the future and establish provisions for doing so? 1 3D
Total Use (Sum of 9-12) 1
Total Score 17
Rule Title RIN Openness
Agency Pub Date RIA separate? Total (G+H+J) Analysis
2105-AD70 DOT 1/21/2009 No
Credit Assistance for Surface Transportation Projects 17 11 5
Quality (G+H) Use 1 2 3 45 5A 5B
16 1 3 3 2 3 2 4 2
5C 5D 5E 6 6A 6B 6C 6D 7
2 0 0 1 1 1 0 0 1
7A 7B 7C 7D 8 8A 8B 8C 8D
2 2 0 0 1 1 0 2 0
8E 8F 8G 8H 8I 9 10 11 12
0 0 0 2 1 0 0 0 1
Openness (Accessible, Data and Models Verifiable, and Comprehensible)
Crirerion Score Com. No. Comment
RIN 2105-AD70 can be found on
regulations.gov using the RIN and a
keyword search. The Department of
1. How easily were the RIA , Transportation's website includes links to
regulations.gov and the Transportation
the proposed rule, and any Equity Act for the 21st Century but is not
supplementary materials updated to include a direct link to this
found online? 3 1 particular rule.
Few data are used; there are no
projections of the future costs or benefits
of the program, the proposed changes,
2. How verifiable are the data or alternatives. Data cited are sourced
used in the analysis? 3 2 and linked.
Very few models/assumptions are used
due to the paucity of analysis. A few
authoritative sources are cited on the cost
of transportation delay and the economic
benefits of transportation investments. On
the otehr hand, there are no descriptoins
of, or citations to, specific studies that
show how the TIFLA program can
3. How verifiable are the specifically "reduce congestion, increase
models and assumptions mobility, improve safety and enhance the
used in the analysis? 2 3 environment and economic growth."
4. Was the analysis
comprehensible to an The document is relatively readable, but
informed layperson? 3 4 there is very little analysis to read.
Analysis (Outcomes, Systemic Problem, Alternatives, Benefit-Cost)
Criterion Score Com. No. Comment
5. How well does the
analysis identify the desired
outcomes and demonstrate
that the regulation will
achieve them? 2
New investment in transportation and the economic
productivity gains result from efficient
Does the analysis clearly
transportation investments. It also identifies
identify ultimate outcomes spillover benefits, "such as reduced pollution,
that affect citizens’ quality of increased safety, improved international
life? 4 5A competitiveness, and enhanced accessibility."
The proposal hints at some potential measures.
The RIA cites a September 2003 study which
estimated that average annual returns on highway
investment of approximately 14 percent between
1990 and 2000. The DOT's continued research on
highway capital investment for the 2000–2005
shows positive returns but lower than the
1990–2000 time period. Further, the RIA includes
figures describing traffic congestion patterns. DOT
currently assigns scores to projects based on their
perceived ability to generate various benefits. This
Does the analysis identify information is used for project selection, not to
how these outcomes are to measure the benefits the projects actually produce.
be measured? 2 5B No discussion of direct measurement of outcomes.
The proposal would expand eligibility to smaller
Does the analysis provide a projects, broaden categories of eligible projects,
and make a number of changes intended to
coherent and testable theory
simplify and clarify the program. So presumably it
showing how the regulation would produce more of the stated benefits by
will produce the desired making more projects eligible, but the proposal
outcomes? 2 5C does not explicitly say this.
Does the analysis present No empirical demonstration of how the program
credible empirical support for has produced outcomes in the past or will produce
the theory? 0 5D them in the future.
Does the analysis
adequately assess
uncertainty about the
outcomes? 0 5E No relevant discussion.
6. How well does the
analysis identify and
demonstrate the existence of
a market failure or other
systemic problem the
regulation is supposed to
solve? 1
The RIA does not specifically mention that a
market failure or other systemic problem exists in
the provision of credit assistance to surface
transportation assistance. The analysis would
need to start by explaining how the Transportation
Equity Act for the 21st Century (TEA-21), which
established TIFLA, solves a systemic problem.
The proposed rule says TIFLA could fill "market
gaps," thereby leveraging additional capital from
private markets. No specific explanation for why
Does the analysis identify a federal intervention would help develop the nation's
market failure or other economy and attract new investment capital better
systemic problem? 1 6A than private efforts is given.
The RIA states that the TIFLA program was
established to provide fractional credit assistance
to major transportation infastructure projects that
Does the analysis outline a have the potential of generating substantial
coherent and testable theory economic benefits both regionally and nationally.
The problem is merely asserted, and even then
that explains why the
only by implication—since the program seeks to
problem (associated with the make some projests happen that would not
outcome above) is systemic otherwise happen, it must be solving a systemic
rather than anecdotal? 1 6B problem.
The proposal cites some research suggesting that
Does the analysis present transportation delays are costly, but does not really
credible empirical support for relate these facts to the need for this particular
the theory? 0 6C program or the proposed changes.
Does the analysis
adequately assess
uncertainty about the
existence or size of the
problem? 0 6D No relevant discussion.
7. How well does the
analysis assess the
effectiveness of alternative
approaches? 1
Neither the proposal nor the analysis consider
alternatives to the major pieces of the proposal.
Does the analysis enumerate The proposal solicits comment on two alternative
other alternatives to address ways of incorporating benefit-cost analysis into
the problem? 2 7A project selection decisions.
Is the range of alternatives
considered narrow (e.g.,
some exemptions to a
regulation) or broad (e.g.,
performance-based
regulation vs. command and
control, market mechanisms,
nonbinding guidance,
information disclosure,
addressing any government
failures that caused the Virtually no alternatives are considered; the two
original problem)? 2 7B DOT seeks comment on are small variations.
Does the analysis evaluate
how alternative approaches
would affect the amount of
the outcome achieved? 0 7C There are no calculation of outcomes at all.
Does the analysis
adequately address the
baseline? That is, what the
state of the world is likely to
There is no description of what the state of private
be in the absence of federal sector capital investment would be like without the
intervention not just now but help of TIFLA itself or the proposed changes to
in the future? 0 7D TIFLA is given.
8. How well does the
analysis assess costs and
benefits? 1
The Paperwork Reduction Act section states that
DOT has never received 10 or more applications
for Federal Credit Assistance per year. The
analysis notes that this program has provided $4.8
billion in credit assistance at a subsidy cost to the
government of $346 million. Total amounts of
congressional authorizations are mentioned, but
Does the analysis identify
there is no breakdown into costs already incurred
and quantify incremental vs. costs that will be incurred in the future. There is
costs of all alternatives no calculation of projected future costs, or how
considered? 1 8A costs will change as a result of the rule changes.
Does the analysis identify all
expenditures likely to arise
as a result of the regulation? 0 8B See above.
The proposal mentions that DOT currently charges
the Treasury interest rate on all loans, and inquires
whether DOT should adopt risk-based pricing. The
analysis mentions that "transportation
improvements lead to increased productivity and
economic growth through improving access to
Does the analysis identify
goods and services for businesses and indivduals"
how the regulation would but gives no explicit explanation of how federal
likely affect the prices of efforts via TIFLA will improve the flow of goods or
goods and services? 2 8C what effect that will have on their prices.
Does the analysis examine
costs that stem from
changes in human behavior
as consumers and producers
respond to the regulation? 0 8D No relevant discussion.
If costs are uncertain, does
the analysis present a range
of estimates and/or perform
a sensitivity analysis? 0 8E No relevant discussion.
Does the analysis identify
the alternative that
maximizes net benefits? 0 8F Neither benefits nor costs are calculated.
Does the analysis identify
the cost-effectiveness of
each alternative considered? 0 8G Neither benefits nor costs are calculated.
The analysis notes that the "proposed regulation
would affect only those entities that elect to apply
for TIFIA assistance and are selected to receive a
Federal credit instrument. It would not impose any
direct costs on non-participants." Loan subsidy
costs are clearly borne by federal taxpayers. The
proposal notes that the federal government only
Does the analysis identify all
provides partial funding so that the private sector
parties who would bear costs has to put up the rest of the money. A few statistics
and assess the incidence of are cited, but there is really no systematic analysis
costs? 2 8H of cost incidence.
The analysis mentions spillover benefits, which
may yield financial and nonfinancial benefits, sucha
s reduced pollution, incresed safety, improved
Does the analysis identify all
international cmpetitiveness and enhanced
parties who would receive accessibility. No discussion of the incidence of
benefits and assess the these benefits is given.
incidence of benefits? 1 8I
Use
Criterion Score Com. No. Comment
9. Does the proposed rule or
the RIA present evidence
that the agency used the
analysis? 0 9 There is no analysis to use.
10. Did the agency maximize
net benefits or explain why it Net benefits are not calculated, and there is really
chose another alternative? 0 10 no analysis to use.
11. Does the proposed rule
establish measures and
goals that can be used to No goals/measures are specified, and there is no
track the regulation's results analysis that could be used to establish goals and
in the future? 0 11 measures.
The analysis notes that DOT must submit
biannually a report to Congress on the financial
performance of the projects this program funds.
One of the main proposed changes to the TIFLA
project selection process is the use of benefit-
cost analysis in selecting projects for TIFLA
12. Did the agency indicate Assistance. If implemented, benefit-cost analysis
what data it will use to could "maximize the rate of return on Federal
runds invested in transportation projects," as
assess the regulation's
stated in the proposed rule. Other changes could
performance in the future very well be used to asses the regulation's future
and establish provisions for performance but the analysis gives no discussion
doing so? 1 12 of how that might happen.