Federal P3 Update

Ben BrubeckAssociated Builders and Contractors (ABC)

July 21, 2015

Summary

• White House• Federal Agencies• What to Watch in Congress• Federal Legislation Impacting P3s – DOA?• Big Themes• Future NCPPP Events on Federal P3s

White House

• President Obama signed a Presidential Memo July 17, 2014, launching the Build America Investment Initiative (BAII)

• Created the Build America Transportation Investment Center (BATIC), housed at the U.S. DOT.

• Spawned the Build America Interagency Working Group (WG).

• WG report issued Jan. 2015 following Infrastructure Investment Summit on September 9, 2014.

Federal Agencies

Policy• EPA (WIFIA) and USDA (Rural P3s) (Jan. 2015)• Proposed in budget: Qualified Public Infrastructure Bonds (QPIB)

(Jan. 2015)• Treasury White Paper on P3s (April 2015)• White House hopes to boost P3s in Promise Zones (via HUD, April

2015)• Army suspends housing program in face of troop cuts (June 2015)Action• EPA (WIFIA) and USACE’s P3 pilot programs from 2014 WRRDA bill.• Multiple agencies are utilizing P3 concepts and other innovative

finance and delivery tools beyond traditional procurement methods to meet needs within restrictive budgetary and regulatory framework.

What to Watch in Congress

• Highway Bill: Long term bill good for P3s?• Concept: Rep. Delaney’s repatriated corporate

earnings to fund infrastructure.• Scoring: OMB’s 1991 Appendix B of Circular A-

11• Call for Expanding Dynamic Scoring• T&I P3 Panel White Paper released in Sept.

2014…Now What?• Appropriations: Will there be a CR?

P3 Legislation in Congress

• Delaney’s Bill• Rebuild America Act (Sen. Sanders)• The BRIDGE (Building and Renewing Infrastructure for

Development and Growth in Employment ) Act (S.1589) (Sens. Blunt/Warner)

• Rail P3s: (Sens. Wicker/Booker) (S. 1626) and Sen. Kirk (S. 1734)• Community Broadband Act of 2015 (Broadband P3s) (Sens.

Booker/Markey/McCaskill)• Border P3s: Sen. John Cornyn (R-Texas) and Rep. Henry Cuellar (D-

Texas)• Performance Based Building Coalition’s (PBBC) mission is to

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

Big Themes

• Lots of policy directives and discussion, but limited action/deals

• Dysfunctional Congress• Scoring a huge issue to tackle, but long term highway

bill is biggest challenge• No viable legislative solution• 2016 and beyond: New White House, new P3 policy?• States remain attractive environment for P3 reform

and deals

Future NCPPP Events

• NCPPP/EPA CBP3 Stormwater Summit, Oct. 7 (Philly)

• NCPPP/Performance Based Building Coalition’s (PBBC) joint event, Oct. 22 (DC): Mission is to increase P3s by creating a new category of exempt facility bonds for public buildings.

• Federal Energy Summit, Nov. 4 (DC)• NCPPP Federal Summit, Feb. 2016 (DC)

Questions/Comments?

brubeck@abc.org