Conditions and Performance Chapter Listing

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Transit Economics Requirements Model

TERM's Structure

Asset Rehabilitation and Replacement Module

Asset Expansion Module

Performance Enhancement Module

Benefit-Cost Tests

Rural and Specialized Transit Service Investments

This appendix contains a technical description of the methods used to determine transit asset conditions and future investment requirements. It is primarily a description of the Transit Economic Requirements Model (TERM) and one of the key improvements made to the model for this reporting cycle, stemming from the 1999 National Bus Condition Assessment.

Transit Economic Requirements Model

TERM's Structure

• Asset Rehabilitation and Replacement
    — Reinvestment in existing assets to maintain and improve the assets' physical condition
• Asset Expansion
    — Investments in new assets such as vehicles and facilities to maintain operating performance to meet forecasts of travel demand
• Performance Enhancement
    — Investments in additional transit capacity to improve operating performance
• Benefit-Cost Tests
    — All investments identified are analyzed on a benefit-costs basis, and only those with a benefit-cost ratio greater than 1 are included in the national investments estimate. This roughly corresponds to the "Maximum Economic Investment" concept in HERS.

The TERM modules are further subdivided by mode, asset type, and urban area characteristics. In addition to investment estimates, TERM generates estimates of the physical condition of the Nation's transit assets, as described in Chapter 3.