Ben BrubeckDirector of Labor and Federal ProcurementAssociated Builders and Contractors (ABC)brubeck@abc.org

The Tortoise and the Hare?Federal and State P3 Legislation and Policy

Developments

NCPPP’s P3 Connect Conference Denver, July 29, 2014

Federal P3s: The Tortoise?Slow Progress is Still Progress

House Transportation & Infrastructure Committee Special Panel on P3s

• Chaired by U.S. Rep. John J. Duncan, Jr. (R-TN). U.S. Rep. Michael Capuano (D-MA) serves as the ranking member.

• Special panel has held nine roundtables in 2014.

• What’s the end game?

The Water Resources Reform and Development Act of 2014 (H.R. 3080)

• P3 pilot program for 15 water-related projects in the USACE construction backlog. (Section 5014).

• Authorizes $175 million for pilot financing program known as the Water Infrastructure Finance Innovation Act (WIFIA). (Section 5021).

White House• President Obama signed a Presidential Memo July 17,

launching the Build America Investment Initiative.• Creates the Build America Transportation

Investment Center, housed at the U.S. DOT.• (There is already a center at DOT’s FHWA).• Build America Interagency Working Group with P3

stakeholders.• Infrastructure Investment Summit on September 9,

2014.

White House Pt. 2• U.S. Rural Infrastructure Opportunity Fund• $10 billion from anchor investor, CoBank• USDA will act as a matchmaker• White House Rural Council’s Rural

Opportunity Investment Conference

Federal Agencies

• Multiple agencies are utilizing P3s and other innovative finance and delivery tools beyond traditional procurement methods to meet needs within restrictive budgetary and regulatory framework.

Barriers to More P3s in Federal Market

• Washington effectively shut down until 2015 starting Aug. recess. Full campaign mode and extra lame duck if Senate flips.

• No Viable Legislative Solution• Dysfunctional Congress• Short term needs vs. Long term vision• OMB’s 1991 Appendix B of Circular A-11

Legislation/Concepts to Watch Next Congress

• T&I P3 Panel Recommendations/Actions.• Highway Bill.• Performance Based Building Coalition’s (PBBC)

mission is to increase P3s by creating a new category of exempt facility bonds for public buildings.

• The Partnership to Build America Act (H.R. 2084/S. 1957) by Rep. John Delaney (D-MD) and Sen. Bennet (D-CO).

State P3s: The Hare?

39 States Enable P3sAs of July 2014

Enabling vertical and horizontal P3s to some degree(22 states)

Enabling only vertical P3s to some degree(3 states and DC)

Enabling only horizontal P3s to some degree(14 states and PR)

Note: 39 states authorize P3s by statute/regulations orlimited partnerships. In these states, P3s may beauthorized on a specific project(s) or project type.

State P3s

• Laboratories of Democracy• Progress compared to federal government• Model comprehensive laws in VA, TX, MD, FL

and PR• No Big Legislative Wins in 2014 (Setbacks?)• Will 2015 be a breakthrough year for P3

legislation?

P3 Legislative ActivityAs of July 2014

P3 Legislative Activity in 2014 State Legislative Sessions

Notable 2014 Developments• Kentucky (H.B. 407)

(Comprehensive), killed via Gov. Beshear (D) veto.

• Georgia (S.B. 255) (Comprehensive-ish), out of time.

• Colorado (SB 14 -197) (A P3 setback averted via veto from Gov. Hickenlooper and E.O. D2014-010).

• District of Columbia (L.B. 595), developing. Likely 2015.

States to Watch in 2015

• Elections have consequences.• Not a budget year in most states.• Tier 1: Arkansas, New Mexico, Georgia, District of

Columbia, Missouri, New Hampshire and Pennsylvania.

• Tier 2: Kentucky, North Carolina, Michigan, New York and Tennessee.

• How do we advance P3 legislation at state and federal level?

How Will This End?

Contact information

Ben BrubeckDirector of Labor and Federal Procurement,Government AffairsAssociated Builders and Contractors (ABC)brubeck@abc.orgwww.linkedin.com/in/benbrubeck/