Benjamin G. Perez, AICP Parsons Brinckerhoff. TRB Conference on Surface Transportation Financing

Transcription

1 SHRP2 C12 The Effects of Public-Private Partnerships and Non-Standard Procurements on Highway Planning, Environmental Review, and Collaborative Decision-Making Benjamin G. Perez, AICP Parsons Brinckerhoff TRB Conference on Surface Transportation Financing P3s in Context: Integrating P3s into Transportation Programs July 9, :00 3:00 p.m. Parsons Brinckerhoff Nossaman LLP HS Public Affairs

2 Project Purpose To study how P3 procurements influence and interface with the transportation and environmental planning processes as organized within the MPO and NEPA processes and to identify how and when P3s and other non-traditional procurements should be considered as a means to procure transportation improvements.

3 Project Purpose To study how P3 procurements influence and interface with the transportation and environmental planning processes as organized within the MPO and NEPA processes and to identify how and when P3s and other non-traditional procurements should be considered as a means to procure transportation improvements.

4 Project Purpose To study how P3 procurements influence and interface with the transportation and environmental planning processes as organized within the MPO and NEPA processes and to identify how and when P3s and other non-traditional procurements should be considered as a means to procure transportation improvements.

5 P3s Defined P3s are contractual agreements between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of transportation projects. 5

6 Spectrum of P3 Options and Risk Exposure Private Sector Risk Design-Build- Operate-Maintain Design-Build Finance-Operate-Maintain Build-Own-Operate- Transfer Private Sector Owns & Operates Design-Build Government Owns & Operates Private Sector Involvement 6

7 Spectrum of P3 Options and Risk Exposure Private Sector Risk Design-Build- Operate-Maintain Design-Build Finance-Operate-Maintain Build-Own-Operate- Transfer Private Sector Owns & Operates Design-Build Government Owns & Operates Private Sector Involvement 7

8 Spectrum of P3 Options and Risk Exposure Private Sector Risk Design-Build- Operate-Maintain Concession Model Design-Build Finance-Operate-Maintain Build-Own-Operate- Transfer Private Sector Owns & Operates Design-Build Government Owns & Operates Private Sector Involvement 8

9 Project Outcomes Documents the nature, timing and implementation of P3 Projects Explores the different points when private involvement may be introduced Assesses the effects of P3s on the transportation planning and environmental review processes Explores early consideration of P3s 9

10 Review of Source Documents Public Sector Interviews State DOTs MPOs FHWA Private Sector Interviews Investor / Developer / Operators Research Process 10

11 Projects of Interest SR 520 Floating Bridge Alaskan Way Viaduct Capital Beltway HOT Lanes I-95 HOT Lanes Midtown Tunnel Ohio River Bridges U.S. 460 South Bay Expressway North Tarrant Express DFW Connector Northwest Corridor Mid- Currituck Bridge P3 Initiated Prior to NEPA P3 Initiated During NEPA P3 Initiated After NEPA I-635 LBJ Managed Lanes Port of Miami Tunnel I-595 HOT Lanes 11

12 Timing is Everything The decision to procure projects on a P3 basis may be made at any point during the MPO and NEPA processes, and in many cases the decision may be made after the completion of NEPA The NEPA process is linear, involving a series of one-time decisions. This differs from the cyclical nature of the MPO process 12

13 Long Range Transportation Plan MPO Lead 20-Year Constrained Plan Prepared at Least Every 5 Years Establishes Policy Vision and Demonstrates Air Quality Conformity Approved by Governor Corridor Planning DOT Lead Optional Planning Study Identifies the General Location and Scope of Proposed Projects Environmental Review DOT Lead DEIS FEIS ROD Revaluation Assesses Alternatives and Defines the Project to be Implemented Environmental Clearance Approved by Lead Federal Agency Transportation Improvement Program MPO Lead 4-Year Committed Investment Program Prepared Every 1-4 Years, Periodic Amendments Possible Demonstrates Air Quality Conformity Approved by MPO Board/Governor 13

14 Time is Money The dichotomy between NEPA and the MPO process can lead to delays Private sector innovation may be inhibited on projects that have already gained environmental clearance Private partners prefer to avoid the uncertainties of gaining NEPA approvals 14

15 P3s and the MPO Process P3s require a dedicated revenue stream usually tolls, sometimes availability payments The MPO fiscal constraint process requires demonstrating that project funding is reasonably available Many MPOs face challenges in demonstrating that tolls or private equity are reasonably available 15

16 P3s Require Specialized Expertise Beyond the MPO/NEPA Skill Set Financial Modeling Financial Feasibility Assessment Risk Transfer Analysis Investment Grade Toll Revenue Forecasts Lifecycle Operations and Maintenance Cost Forecasts Public Sector Comparator Analysis Toll Collection and Back-office Accounting Procedures Legal and Contractual Issues Extending Over Year Concession Periods 16

17 Early Consideration of P3s Can Add Value Early private sector involvement during the NEPA and MPO processes can add value to project outcomes There is a distinction between a definitive decision to use P3 procurement and considering the possibility of doing so It is best to consider the use of P3 procurement as early in the MPO and NEPA processes as possible and then use those processes to vet that possibility 17

18 P3 Innovators SR 520 Floating Bridge Alaskan Way Viaduct Capital Beltway HOT Lanes I-95 HOT Lanes Midtown Tunnel Ohio River Bridges U.S. 460 South Bay Expressway North Tarrant Express DFW Connector Northwest Corridor Mid- Currituck Bridge P3 Initiated Prior to NEPA P3 Initiated During NEPA P3 Initiated After NEPA I-635 LBJ Managed Lanes Port of Miami Tunnel I-595 HOT Lanes 18

19 Facilitating P3s in NEPA/MPO Processes Introduce tolling and alternative funding, together with the possibility of P3 procurements, during NEPA and the state and regional planning processes Adapt the MPO long range plan fiscal constraint process to consider the use of tolling as a source of new revenue Align project definition with revenue potential and available funding 19

20 Facilitating P3s in NEPA/MPO Processes Manage NEPA to afford greater flexibility and speed Complete more frequent TIP and conformity updates to reduce approval delays that may inhibit private innovation 20

21 Thank You Benjamin G. Perez, AICP Principal Strategic Consulting Parsons Brinckerhoff One Penn Plaza New York, NY