Transportation Reauthorization Bill—Implications For Transportation P3 Projects

Originally published June 28, 2012

Keywords: transportation reauthorization bill, transportation P3 projects, SAFETEA-LU, TIFIA

On June 28, 2012, the US House of Representatives and Senate reached agreement on the Moving Ahead for Progress in the 21st Century Act (S. 1813; MAP-21). This transportation reauthorization legislation will replace the expiring Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) enacted in 2005, and is expected to be passed by Congress shortly and signed into law by President Obama. For the transportation P3 market, among the key provisions in the House-Senate Conference Report are the following:

P3 Best Practices. The Conference Report requires the Secretary of Transportation to compile best practices for working with the private sector regarding transportation facilities, and also requires that the Secretary provide technical assistance upon request. Additionally, the Secretary is required to develop standard P3 transaction model contracts within 18 months and make such model documents available to state and local governments.

TIFIA. The Conference Report modifies the TIFIA credit program, including increasing funding for the program to $750 million (an approximately seven-fold increase over current levels) for fiscal year 2013 and to $1 billion (an approximately ten-fold increase over current levels) for fiscal year 2014. The Conference Report also increases the maximum share of project costs that can be funded under the TIFIA program from 33 percent to 49 percent.

Tolling. The Conference Report grants blanket authority for new capacity tolling on Interstate Highways, so long as the number of current non-HOV toll-free lanes does not decrease. Accordingly, the Express Lanes Demonstration Program previously included in SAFETEA-LU is not reauthorized. Existing "capacity pilot programs" were not addressed in the Conference Report.

Mass Transit. The Conference Report establishes P3 authority for the Federal Transit Administration similar to FHWA's existing SEP-15 (Special Experimental Project Number 15) authority. It directs the Secretary of Transportation to develop policies and procedures to address impediments to P3s, and also requires the Secretary to coordinate, promote and provide technical assistance to public transportation P3s. In addition, the Comptroller General is directed to conduct a study regarding "contracting out" of public transportation operations...