Money is tight for surface transportation projects, the area where the investment gap is largest. Making the right choices with limited budgets is a challenge for many communities. The Metropolitan Transit Commission (MTC) in California’s Bay Area found a way to streamline the process for its 26 transit authority members. Through its performance-based planning process, transit projects are evaluated against the triple-bottom line, or as MTC calls it, the “Three Es” of economy, environment, and equity. Rigorous benefit/cost analysis is performed to determine whether a proposed project’s expected benefits outweigh life cycle costs and to determine whether a project advances the “Three E’s.” The simple metrics offer clear results and valuable, data-driven analysis on which to make final funding decisions.
Life-Cycle Cost Analyses Reaps Financial Benefits for Cities
