JULY 2016

THE COUNCIL OF STATE GOVERNMENTS

CAPITOL RESEARCH
TRANSPORTATION

Evolution of the Public-Private Partnership Pipeline

Thirty-four states, the District of Columbia and

Puerto Rico all have legislation allowing them to
enter into public-private partnerships.

Having P3 legislation on the books has not always

guaranteed quick success in moving P3 projects
to fruition.

In April 2016, Kentucky Gov. Matt Bevin signed

House Bill 309, which allows both the state and local
governments to use public-private partnerships, or
P3s, to develop transportation and other infrastructure. It requires the establishment of a board to
oversee P3 transactions, requires legislative approval
for any P3 project with a value of more than $25
million, and specifically prohibits the use of tolls on
any P3 project connecting Kentucky and Ohio.1

Arizona has had P3 legislation on the books since

2009. In February 2016, the Arizona Department of
Transportation finalized its first public-private partnership agreement for the Loop 202 South Mountain
Freeway, a 22-mile freeway through downtown
Phoenix. Other projects Arizona is considering for
P3s include electronic screening for trucks at state
ports of entry, a freeway lighting upgrade in Phoenix,
a stormwater pump rehabilitation project and a compressed natural gas facilities project.4

Louisiana Gov. John Bel Edwards signed Senate Bill

195 in June 2016. It authorizes the Louisiana Department of Transportation and Development to solicit
and enter into P3 contracts for certain transportation
projects.2

The Council of State Governments

Alabama lawmakers approved legislation in April

2016 that authorizes the Alabama Department of
Transportation to enter into various types of construction agreements with other public and private
entities for the construction of a public road, bridge
or tunnel and related work. The state DOT is considering the P3 option for the I-10 Bridge and Bayway
Widening project in Mobile.3

Prior to the passage of 2016 P3 legislation, Louisiana

had a series of P3 statutes on the books passed
between 1954 and 2006 but little to show for them.
In addition to the new P3 law, state officials are hopeful that legislation passed in 2015 to create a State
Transportation Infrastructure Bank could help get
such projects financed.5

Some states have made changes to their P3 leg

islation or taken steps to clarify their goals and
procedures with regards to P3s in recent years.

While some states still dont have P3 authorizing

legislation, some have nevertheless been able
to explore P3s.

Tennessee Gov. Bill Haslam signed legislation in

April that will allow agencies to pursue public-
private partnerships for mass transit projects and
associated projects such as transport or service
vehicles and parking facilities. The legislation was
amended to exclude highways, bridges and tunnels
after road builders in the state lobbied against that
provision. The new law allows developers to submit
unsolicited proposals from the private sector, but
other firms can submit competing proposals if they
do so within 90 days.6

New York state, which does not have P3 legislation,

is home to some of the countrys most significant P3
projects including the $1.5 billion Goethals Bridge
project. The Port Authority of New York and New
Jersey, which is overseeing the bridge replacement,
is a congressionally authorized, federally recognized
joint venture between the two states and not an
agency of either state and therefore is free to pursue
P3s despite the lack of legislation in either state. In
June 2016, the Port Authority reached financial close
on a P3 to build a new central terminal at LaGuardia
Airport. P3s are also being contemplated for projects
like the redevelopment of Penn Station and the
development of a Hudson River tunnel thanks to the
creation of other joint entities that are not beholden
to state legislation.11

The District of Columbia, which approved P3 legislation in 2014, issued guidelines and procedures for
P3s in April 2016 and sought public comments.7
Florida Gov. Rick Scott signed legislation in April
2016 that will allow the Florida Department of Transportation to leverage the favorable terms available to
governmental borrowers in the tax-exempt municipal
bond market when entering into long-term financing
agreements. Its expected to give local districts an
option to do smaller P3s using bond financing.8 It also
requires the Florida Department of Transportation
to consult with the Division of Bond Finance of
the State Board of Administration in connection with
any proposal to finance or refinance a transportation-related P3. The division, which issues bonds and
advises on debt management policies, is now also
required to make an independent recommendation
to the governor about P3 projects.9
New Hampshire lawmakers in 2015 established a
committee to study and propose legislation for
forming public-private partnerships for intermodal
transportation.10

THE COUNCIL OF STATE GOVERNMENTS

Michigan has no P3 authorizing legislation but certain public entities in the state are allowed to pursue
P3s under the states home rule powers. In August
2015, the Michigan Department of Transportation
reached financial close on the first freeway lighting
P3 in the country.12

While P3s in the United States were once synonymous with toll roads, they have begun to appear in
a wide variety of other sectors and contexts as well.
California, which has had a number of high profile
P3 road projects over the last 15 years, including
the State Route 91 Express Lanes in Orange County,
the South Bay Expressway in San Diego County
and Presidio Parkway in the San Francisco Bay area,13
is also making a name for itself in social infrastructure P3s. These include the Long Beach Courthouse
project, completed in 2013; the Long Beach Civic
Center, which broke ground in June 2016; and a
recently announced campus construction project at
the University of CaliforniaMerced in the San
Joaquin Valley. But the Golden State is not abandoning P3s for transportation entirely. A P3 is planned
for the modernization of Los Angeles International
Airport and a number of road projects are also in
the development pipeline.
Kentuckys first P3 project, announced last year well
before the passage of the states P3 legislation, is
not a road or bridge project. Its KentuckyWired, a
project to build a statewide, open-access fiber optic
broadband network that is the largest public-private
partnership ever for such a project.14
Other P3s planned around the country include projects to build liquefied and compressed natural gas
infrastructure, modernize streetlights, and develop
transit projects.

Sean Slone, CSG Director of Transportation & Infrastructure Policy,

sslone@csg.org

ARTICLE REFERENCES:
Federal Highway Administration. State P3 Legislation. Accessed from:
http://www.fhwa.dot.gov/ipd/p3/state_legislation/
2
Louisiana governor signs P3 bill. P3 Bulletin. June 24, 2016. Accessed from:
http://www.p3bulletin.com/news/view/103682
3
Bids due for Alabama P3 advisory. P3 Bulletin. June 27, 2016. Accessed from:
http://www.p3bulletin.com/news/view/103850
4
Arizona Department of Transportation. Programs and Partnerships: P3 Initiatives: P3
Projects. Accessed from: https://www.azdot.gov/business/programs-and-partnerships/
Public-PrivatePartnerships(P3)/p3-projects
5
Kevin Litten. Infrastructure bank could have local officials exploring more publicprivate partnerships. The Times Picayune. June 23, 2015. Accessed from: http://www.
nola.com/politics/index.ssf/2015/06/infrastructure_bank_transporta.html
6
National Council for Public-Private Partnerships. Tennessee P3 Bill Signed Into Law.
April 29, 2016. Accessed from: http://www.ncppp.org/tennessee-p3-bill-signed-into-law/
7
Office of Public-Private Partnerships. Guidelines and Procedures for the Public-Private
Partnerships Act of 2014. April 29, 2016. Accessed from: http://op3.dc.gov/sites/
default/files/dc/sites/op3/publication/attachments/OP3%20Guidelines%20and%20
Procedures%20Draft%20FINAL%2042916.pdf
8
Scott signs Transportation Bill. P3 Bulletin. April 6, 2016. Accessed from:
http://www.p3bulletin.com/news/view/99753
9
National Council for Public-Private Partnerships. New Florida Law Changes States
P3 Procurement Process. April 5, 2016. Accessed from: http://www.ncppp.org/newflorida-law-changes-states-p3-procurement-process/
10
General Court of New Hampshire. Chapter 184: SB 88Final Version. Accessed from:
http://www.gencourt.state.nh.us/legislation/2015/SB0088.pdf
11
Dan Colombini. Spreading the News. P3 Bulletin. Volume 4, Issue 3.
12
Roderick N. Devlin, D. Bruce Gabriel and Carolina Mederos. Market Update: A Review
of Recent Activity in the U.S. Public-Private Partnership (P3) Sector and the Outlook
for the Year to Come. Squire Patton Boggs LLP. March 3, 2016. Accessed from:
http://www.squirepattonboggs.com/~/media/files/insights/publications/2016/03/
market-update-a-review-of-recent-activity-in-the-us-public-private-partnership/
market20update20a20review20of20recent20activity20in20the20us20p320sector20
and20outloo.pdf
13
California Department of Transportation. Public-Private Partnerships. Accessed from:
http://www.dot.ca.gov/p3/#
14
Kentucky Launches Biggest Public-Private Partnership for Open-Access State Broadband Network. Press Release. August 31, 2015. Accessed from: http://www.firstsolu
tions.org/FirstSolutions915.pdf
1

THE COUNCIL OF STATE GOVERNMENTS

KEY PROJECTS BY STATE WITH P3 LEGISLATION

State

Key Past Projects

Current/Future Projects

Alabama

I-10 Bridge & Bayway Widening

Alaska

Interior Energy Project; Liquefied Natural Gas Project

Arizona

South Mountain Freeway (Expected Completion: 2019)

Arkansas

I-30 Highway Project; Arkansas State University P3s

California

South Bay Expressway (2007); Long Beach Courthouse (2013);

Presidio Parkway (2015)

Long Beach Civic Center; University of CaliforniaMerced;

LAX Modernization

Colorado

U.S. 36 Express Lanes (2015)

I-70 East; Denver Airport Great Hall

Connecticut

Solar Project; Solid Waste Management

Delaware
District of Columbia
Florida

Streetlight Modernization; Correctional Center; Police Headquarters

Port of Miami Tunnel (opened 2014)

Miami-Dade Water & Sewer; SR 836/I-395

Northwest Corridor/I-75 (Expected Completion: 2018);
I-285 & SR-400 Reconstruction; Atlanta Airport

Georgia
Illinois

Chicago Skyway (2005)

Chicago Swimming Pool Retrofit; Chicago Compressed Natural Gas Project

Indiana

Indiana Toll Road (2006)

State Street Redevelopment (West Lafayette); Indianapolis Airport Water

Kentucky

Kentucky Broadband P3

Louisiana

Louisiana State University Student Housing

Maine

I-95 Waterville Interchange

Maryland

Seagirt Marine Terminal, Port of Baltimore (2012)

Purple Line Light Rail (Expected Completion: 2021)

Massachusetts

Route 3 North (2005)

Route 3 South Express Toll Lanes

Michigan
Minnesota

Detroit Region Freeway Lighting (Expected Completion: 2017)

U.S. 169/Bren Road Interchange, Minnetonka (2011)

Mississippi
Missouri

I-70

Nevada

Las Vegas/Southern California High Speed Rail

New York

Goethals Bridge Replacement (Expected Completion: 2018);

LaGuardia Airport Central Terminal; Penn Station

North Carolina

I-77 HOT Lanes P3; Mid-Currituck Bridge

North Dakota

North Dakota State University Student Housing

Ohio

Route 823 Portsmouth Bypass Project;

Ohio State University Energy Management

Oregon

Portland Airport MAX Red Line (2001); Solar Highway (2008)

Rapid Bridge Replacement (Expected Completion: 2017);
Compressed Natural Gas Fueling Stations; PA Turnpike Fiber Optic Project

Pennsylvania
Puerto Rico

San Juan Airport (2013)

Port of the Americas Project

South Carolina

University of South Carolina Campus Village

Tennessee

Nashville Mass Transit Projects

Texas

SH-288 Toll Concession; U.S. 181 Corpus Christi Bridge; SH-360

Utah
Virginia

University of Utah Solar P3s

Dulles Greenway (1995); I-495 & I-95 Express Lanes (2012 & 2014)

Transform I-66 Outside the Beltway; Elizabeth River Tunnels

Washington

Freight Terminals

West Virginia

U.S. 35 Completion; U.S. 48 Corridor H Project

Wisconsin

TABLE SOURCES:
Roderick N. Devlin, D. Bruce Gabriel and Carolina Mederos. Market Update: A Review of Recent Activity in the U.S. Public-Private Partnership (P3) Sector and the Outlook for the Year to Come. Squire Patton Boggs
LLP. March 3, 2016. Accessed from: http://www.squirepattonboggs.com/~/media/files/insights/publications/2016/03/market-update-a-review-of-recent-activity-in-the-us-public-private-partnership/market20update20a20review20of20recent20activity20in20the20us20p320sector20and20outloo.pdf
P3 Bulletin. Project Tracker. Accessed from: http://www.p3bulletin.com/projects
Virginia Public-Private Partnerships Office. Projects. Accessed from: http://www.p3virginia.org/p3-projects/
National Council for Public-Private Partnerships. Accessed from: http://www.ncppp.org/
Minnesota Go. Public-Private Partnerships at MnDOT: MnDOTs Experience With Public-Private Partnerships. Accessed from: http://minnesotago.org/application/files/7014/5825/6498/P3_Public_Final.pdf
Missouri Department of Transportation. I-70 Public-Private Partnership. Accessed from: http://www.modot.org/i-70p3/
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THE COUNCIL OF STATE GOVERNMENTS