DOT 4-07
Contact: Sarah Echols, Tel.: (202) 366-4570
Monday, January 8, 2007
DOT Provides Model Legislation for Private-Sector Involvement in
Transportation Projects
The U.S. Department of Transportation today provided model legislation that
would give states flexibility to contract with the private sector to invest in
and manage transportation projects.
The model legislation, part of the Department’s initiative to reduce congestion
in the nation’s transportation system, is based on a survey of existing state
laws that authorize public-private partnerships in building, owning or operating
highways, mass transit, railroads, airports, seaports or other transportation
infrastructure.
“The growing stranglehold that congestion is placing on America’s transportation
network calls for new ways of financing and maintaining our critical
transportation infrastructure,” said U.S. Transportation Secretary Mary E.
Peters. “This model legislation will help to ensure that states are in a
position to tap into the billions of dollars that the private sector and lenders
have amassed to invest in transportation.”
Recognizing that states need statutory authority to enter into public-private
agreements, this legislation can be a model to help states reduce or remove
barriers to private-sector investment in transportation infrastructure. The
legislation is a starting point from which states can proceed to craft laws that
are most appropriate for their unique needs, and provides useful guidance on
what a public-private partnership agreement might look like.
Issues addressed by the model legislation include which modes of transportation
would be eligible for private investment, whether or when tolls may be
collected, innovative procurement methods, upkeep requirements for leased roads,
and provisions to be considered in an agreement with the private sector.
Secretary Peters noted that 21 states and Puerto Rico already have at least some
legal ability to utilize public-private partnerships. However, many of those
laws provide limited or project-specific authority. Broad authority will also
give states the opportunity to take advantage of various federal tools and pilot
programs now available under SAFETEA-LU and the recently created congestion
initiative.
The model legislation is available on the Internet at
http://www.fhwa.dot.gov/ppp/legislation.htm.
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Briefing
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