Session 10: Public-Private Partnerships, Tolling and the NEPA Process

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1 Session 10: Public-Private Partnerships, Tolling and the NEPA Process Public-Private Partnerships and NEPA Public Involvement Permits Dianna F. Noble, P.E. Director, Environmental Affairs TxDOT Environment and Energy Research Conference Raleigh, North Carolina June 2010

2 What is a Public-Private Partnership (3P)? A venture which can be funded, designed, constructed, maintained and/or operated through a partnership of government and one or more private sector companies Term used by TxDOT or Design Builder

3 What are the benefits of 3P ventures? Provide funding Bring people and resources to the project Innovation Share and assume risk

4 What types of transportation projects have 3P involvement? Toll roads Managed lanes Transit Intermodal High speed rail Freight rail

5 What are the perspectives of 3Ps regarding transportation project definition? Want to understand: Project proposal Associated risk Opportunities for flexibility

6 What are the perspectives of 3Ps regarding environmental work? Want: NEPA finality To limit their environmental risk Want to understand: The extent of approvals Permit limitations Triggers for needing new/revised approvals and permits

7 How does TxDOT manage the environmental work for 3P ventures? TxDOT obtained: NEPA clearance Permits and other approvals based on schematic design and environmental analysis TxDOT met with 3P: Negotiated agreement Included discussing project and what NEPA clearances and permits meant Negotiated environmental risks

8 How does TxDOT manage the environmental work for 3P ventures? (continued) TxDOT made available: Environmental compliance plan template for use by 3P (If they desired to use) Standards of Uniformity for various types of environmental work for use by 3P (If they desired to use) TxDOT ultimately developed: CDA programmatic books (includes environmental section) to guide 3Ps and TxDOT

9 What are 3P responsibilities for ventures with TxDOT? Understanding NEPA clearance obtained by TxDOT Permits and other approvals obtained by TxDOT Required related responsibility for their adherence/compliance

10 What are 3P responsibilities for ventures with TxDOT? (continued) Design/field changes generated by them Assessing related risk Preparing related re-eval and assuming associated risk (including cost) Obtaining new/revised permits and assuming associated risk Required related responsibility for their adherence/compliance (including cost)

11 What are 3P responsibilities for ventures with TxDOT? (continued) HazMat/waste generated by them HazMat/waste generated if they operate/maintain the project

12 What are 3P responsibilities for ventures with TxDOT? (continued) NPDES/TPDES Submitting NOIs (CGP and MS4) Development and updates of SWP3 Related monitoring and upkeep of BMPs Required related responsibility for their adherence/compliance Shared risk due to EPA requirements

13 What are 3P responsibilities for ventures with TxDOT? (continued) Design changes generated by TxDOT Preparing related re-evaluation Assisting with developing the new/revised permit Required related responsibility for their adherence/compliance

14 Different Project Delivery Types & Risk Sharing 1 Project Delivery Method / CDA Business Model Risk Type Design / Bid / Build Design / Build Availability Payment Design / Build / Finance / O / M (Pass Through) Concession Environmental Approval Environmental Compliance Shared Financing Design ROW Acquisition Shared Utility Delays Shared Construction Shared Shared Schedule Delays Shared O & M Shared Traffic & Revenue Shared 1 Actual Risk assignments may vary by project 2 Eminent Domain delays retained by the owner

15 Texas 3Ps Signed agreements SH 130 Segments 1-4 (Design-Build) TTC-35 (Pre-Development Agreement) SH 130 Segments 5-6 (Concession) NTE (Concession and Pre-Development Agreement) I-635/LBJ Freeway (Concession) D/FW Connector (Design-Build-Maintain) Conditionally awarded I-69 (Pre-Development Agreement)

16 Project-Specific Examples Dealing with design changes Design-builder prepared re-evaluation Chose to use CAP template and SOUs FHWA approved the related re-evaluation NPDES/TPDES Design builder submitted the NOI Design builder responsible for SWP3 and related upkeep of SWP3 and BMPs

17 Strategies that have helped with 3Ps 139(l) notice Development of CDA Programmatic books (continually being revised) Allocating risk more appropriately Interaction of environmental staff with 3Ps Requiring 3P to have a comprehensive environmental protection program Educating selves, elected officials, others on CDAs/3Ps Practice does not make perfect Practice is improvement

18 Questions?