- What is SEP-15?
Special Experimental Project Number 15 or SEP-15 derives from
section 502 of title 23, and it allows the Secretary to waive the
requirements of title 23 and the regulations under title 23 on a
case-by-case basis. SEP-15 allows FHWA to experiment in four major areas of project delivery - contracting, right-of-way acquisition, project finance, and compliance with the FHWA's National Environmental Policy Act (NEPA) process and other environmental requirements.
While FHWA has long encouraged increased private sector
participation in Federal-aid projects, SEP-15 allows FHWA to
actively explore much needed changes in the way we approach the
oversight and delivery of highway projects to further the
Administration’s goals of reducing congestion and preserving
our transportation infrastructure.
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What are the goals of SEP-15?
Answer: The goals of SEP-15 are to increase project
delivery flexibility, encourage innovation, improve timely project
construction, and promote public-private partnerships. A key
feature of SEP-15 is that it will allow FHWA to identify current
FHWA laws, regulations, and practices that inhibit greater use of
public private partnerships (PPPs) and private investment in
transportation improvements. At the same time, it will allow
us to develop procedures and approaches that address these
impediments.
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What is an eligible project?
Answer: An eligible project is one that will test an
innovative project delivery technique that is prohibited by a
current provision of title 23 of the United States Code, FHWA
regulations, or FHWA policy. SEP-15 projects cannot be used
to modify environmental and other requirements external to title 23
of the United States Code. The State must demonstrate that
the experimental feature is one that will advance the goals of the
SEP-15 program. (See FAQ 2.) States are encouraged to
discuss potential applications with the appropriate staff from
FHWA’s Division and Headquarters prior to submitting an
application or concept paper.
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Can SEP-15 be done a programmatic basis?
Answer: No, SEP-15 is not a programmatic change.
Rather, it is designed for use on a project-by-project basis to
experiment with solutions to impediments to the use of
public-private partnerships and innovative project delivery
techniques.
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What are the procedural requirements under SEP-15?
Answer: SEP-15 requires a State DOT to submit an
application to the FHWA Division Office. If an
application is approved, FHWA and the State DOT will negotiate an
Early Development Agreement (EDA) to establish the parameters of
the approved experimental features. More information can be
found in the SEP-15 Implementation Procedures document located on
this website.
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What does a SEP-15 Application look like?
Answer: The SEP-15 Application is the formal documentation
of an applicant’s request for the use of an experimental
feature in the project development process.
The SEP-15 Application shall provide the following:
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Brief project description;
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A concise description of each experimental feature;
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An explanation of why the State is seeking to undertake the
experimental feature, including a description of why the
experimental features are beneficial to the development of the
project and the expected value to be achieved from the experimental
feature; and
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An explanation of how the areas of experimentation vary from
requirements found in title 23 U.S.C., FHWA regulations, or FHWA
policy and practices.
States are encouraged to view prior applications and the responses
to those applications for guidance. This information is
posted on this website.
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Should an application be oriented around the
project or around the experimental features of the
project?
Answer: Both. The application should include a
description how the State plans on implementing the experimental
features within the context of the specific project. Due to
the experimental nature of SEP-15, FHWA has not produced a SEP-15
application form. Applicants, however, are encouraged to
review the SEP-15 approval letters to see the type of information
that should be included in a SEP-15 application. This
information is posted on this website.
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What is the anticipated turn around time from
date an application is submitted?
Answer: This will vary depending on the complexity of
the application. Most applications will be answered within 60
days.
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Can a State add projects to an approved SEP-15
application or must a new application be submitted?
Answer: Projects may be added to an approved SEP-15
application when the application was used for a corridor or a
program composed of multiple projects. Assuming
the additional project meets SEP-15 requirements, it can be added
to an existing SEP-15 application by amending the
application. A State must submit the amendments to FHWA and
FHWA will review and decide whether to accept the amendments.
The amendments will be included in the Early Development Agreement
(EDA).
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Is there a screening mechanism that will assist the State
and FHWA in determining what is an appropriate project for
administration under SEP-15?
Answer: A State may submit a SEP-15 Concept Paper to
the FHWA Division Office. A Concept Paper is a short
narrative that articulates the basic elements of the
applicant’s proposed use of SEP-15 and provides the basis for
FHWA to offer the applicant a preliminary assessment of the
viability of potential experimental features as well as information
about lessons learned from previous SEP-15 projects relative to the
proposed project.
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What is the SEP-15 Steering Committee?
Answer: The SEP-15 Steering Committee is responsible
for the overall management and oversight of SEP-15.
Responsibilities include:
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Proposing SEP-15 project co-facilitators;
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Providing recommendations regarding SEP-15 Applications to the
Deputy Administrator;
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Managing the development of documents, promotional materials and
other informational items relevant to the SEP-15 process; and
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Developing training courses relevant to the administration of
SEP-15 projects.
Members include the Chief Counsel; the Associate
Administrator for Planning, Environment, and Real Estate Services;
the Associate Administrator for Infrastructure; the Associate
Administrator for Policy; the PPP Program Manager; and the Director
of Field Services, Southern.
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What criteria will be used to evaluate
SEP-15 applications?
Answer: SEP-15 applications will be reviewed based on
the following criteria:
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Are the proposed experimental features prohibited under current
policies and procedures?
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Do the experimental features extend beyond procurement issues
covered by SEP-14?
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Are experimental features limited to policies and procedures
covered by Title 23?
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Will the experimental features improve the delivery time, quality,
or expense of the project?
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Could the experimental features influence future Federal-aid policy
and procedures?
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Is there a plan for evaluating how the experimental features
contribute to the overall success of the project?
If an experimental feature is not prohibited under current law or
policy or if it concerns a law or policy outside of title 23, then
the project will not be considered an SEP-15 candidate. Also,
if an SEP-15 proposal does not extend beyond procurement issues
covered by SEP-141,
then the project will be considered under SEP-14, rather than
SEP-15.
The overall intent of the SEP-15 program is to foster innovation
and explore the full range of opportunities to make the project
delivery process more efficient. Any proposals that meet this
intent and are consistent with the criteria noted above will be
given strong consideration.
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When is a project considered ripe for application to
SEP-15?
Answer: The ripeness of an SEP-15 application will
vary depending on the elements of the project development process
that are being adjusted or changed. Generally, a SEP-15
Application will be submitted prior to the start of a project, but
there may be circumstances where funding mechanisms change or some
other fundamental issue drives the need for administration of a
project under the SEP-15 program.
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How are SEP-15 Concept Papers processed?
Answer: A State DOT may submit an SEP-15 Concept Paper
to the Division Administrator, who will forward it to the
PPP Program Manager. The PPP Program
Manager will coordinate the review of the concept paper with the
SEP-15 Steering Committee and the Division Administrator.
The SEP-15 Steering Committee and Division Administrator will
review the SEP-15 Concept Paper concurrently and determine if the
proposed approach is appropriate for the SEP-15 program. FHWA
will usually provide comments to the State within 60 days.
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How are SEP-15 Applications processed?
Answer: State DOTs submit the SEP-15 Application to
the Division Administrator. The Division Administrator will forward
the application to the PPP Program Manager. The PPP
Program Manager will coordinate the review of the application with
the SEP-15 Steering Committee and the Division
Administrator. The Steering Committee and the
Division Administrator will review the application
concurrently. The review will be focused on assessing whether
the proposed experimental features are appropriate for
administration under the SEP-15 program or are precluded from
further consideration due to legal or policy constraints. A
recommendation will be made by the Steering Committee to the Deputy
Administrator, who will make the final decision. FHWA’s
acceptance or return of the SEP-15 Application will be provided
within approximately 60 days.
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What is the role of FHWA headquarters and the Division Offices?
Answer: The FHWA Division Offices and Headquarters
staff will work as a team to review SEP-15 Concept Papers and
Applications, and develop the Early Development Agreement
(EDA). The Division Office will oversee the delivery of the
SEP-15 project.
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What is an Early Development Agreement (EDA)?
Answer: An Early Development Agreement (EDA) is a
document that is developed jointly between the State DOT and
FHWA. The EDA describes the parameters for the implementation
of experimental features of the SEP-15 project. For
each experimental feature identified in the EDA, the EDA will
identify the specific roles of all parties, define procedures, and
establish timeframes and other conditions under which the project
will be administered. More information can be found in the
SEP-15 Implementation Procedures document located on this website.
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Are there any reporting requirements for approved SEP-15
projects?
Answer: Yes. Upon the completion of a SEP-15
project, the State will be responsible for submitting an
independently prepared report that summarizes lessons learned from
the implementation of the experimental feature(s) and from the
SEP-15 process. These reports shall evaluate the relative
success of the process, its overall impact on the project, and
recommend whether the experimental features should be made routine
through statutory or regulatory changes. The report should include
an explanation of how the changes will improve the delivery of the
Federal-aid highway program.
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Can SEP-15 be used on multi-modal projects?
Answer: Yes, but the experimental features must be
confined to the provisions of 23 U.S.C.
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Can SEP-15 be used to experiment
with legal authority outside of title 23? Can SEP-15 be used
to experiment with State legal authority?
Answer: No, SEP-15 may not be used to experiment
outside of title 23 nor can it be used to experiment with State
law. Other than areas under title 23 identified for
experimentation, applicants must fully comply with all other
applicable State and Federal laws and regulations, such as NEPA and
other environmental requirements. For example, States will
have to follow the same environmental requirements under SEP-15 as
they would for any other project, but may be permitted to
experiment with the procedures used to accomplish such
requirements.
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