"Infrastructure asset" means any asset financed in whole or in part by the Federal government. "Originally authorized purposes" means the general objectives of the original grant program. "Transfer price" means the amount paid or to be paid by a private party for an infrastructure asset. "Adequate and well-maintained infrastructure is critical to economic growth"
"Infrastructure asset" means any asset financed in whole or in part by the Federal government. "Originally authorized purposes" means the general objectives of the original grant program. "Transfer price" means the amount paid or to be paid by a private party for an infrastructure asset. "Adequate and well-maintained infrastructure is critical to economic growth"
"Infrastructure asset" means any asset financed in whole or in part by the Federal government. "Originally authorized purposes" means the general objectives of the original grant program. "Transfer price" means the amount paid or to be paid by a private party for an infrastructure asset. "Adequate and well-maintained infrastructure is critical to economic growth"
57 FR 19063 / May 4, 1992 TEXT: By the authority vested in me as presi- greater freedom to privatize infrastructure assets. less the applicable share of accumulated depre- dent by the laws of the United States of America, ciation on such asset (calculating using the In- end in order to ensure that the United States (b) Private enterprise and competitively driven ternal Revenue Service accelerated depreciation achieves the most beneficial economic use of its improvements are the foundation of our Nation’s schedule far the categories of assets in question); resources, it is hereby ordered as follows: economy and economic growth. Federal financ- and (iii) finally, the State and local governments ing of infrastructure assets should not act as a shall keep any remaining proceeds, Section 1. Definitions. For purposes of this or- barrier to the achievement of economic efficien- der: (a) “Privatization” means the disposition or cies through additional private market financing Sec. 4. Criteria. To the extent permitted by law, transfer of an infrastructure asset, such as by sale or competitive practices, or both. the head of an executive department or agency or by long-term lease, from a State or local gov- shall approve a request in accordance with sec- ernment to a private party. (c) State and local governments are in the best tion 3(c) of this order only if the grantee: (a) position to assess and respond to local needs. Agrees to use the proceeds described in section (b) “infrastructure asset” means any asset fi- States and local governments should, subject to 3 (e)(iii) of this order only far investment in ad- nanced in whole or in part by the Federal Gov- assuring continued compliance with Federal re- ditional infrastructure assets (after public notice ernment and needed for the functioning of the quirements that public use be on reasonable and of the proposed investment) or for debt or tax economy. Examples of such assets include, but nondiscriminatory terms, have maximum pos- reduction; and are not limited to: roads, tunnels, bridges, elec- sible freedom to make decisions concerning the tricity supply facilities. mass transit, rail trans- maintenance and disposition of their federally fi- (b) Demonstrates that a market mechanism, le- portation, airports, ports. waterways, water sup- nanced infrastructure assets. gally enforceable agreement, or regulatory ply facilities, recycling and wastewater treatment mechanism will ensure that: (i) the infrastructure facilities, solid waste disposal facilities, housing, (d) User fees are generally more efficient than asset or assets will continue to be used for their schools, prisons, and hospitals. general taxes as a means to support infrastruc- originally authorized purposes; and (ii) user ture assets. Privatization transactions should be charges will be consistent with any current Fed- (c) “Originally authorized purposes” means the structured so as not to result in unreasonable in- eral conditions that protect users and the public general objectives of the original grant program; creases in charges to users. by limiting the charges. however, the term is not intended to include ev- ery condition requires for a grantee to have ob- BACK TO POLICY HOMEPAGE Sec. 3. Sec. 5. Government-wide coordination and Re- tained the original grant. Privatization initiative. To the extent permitted view. In implementing Executive Order Nos. by law, the head of each executive department 12291 and 12498 and OMB Circular No. A-19, (d) “Transfer price” means: (i) the amount paid and agency shall undertake the following actions: the Office of Management and Budget, to the or to be paid by a private party for an infrastruc- (a) Review those procedures affecting the man- extent permitted by law and consistent with the ture asset, if the asset is transferred as a result of agement and disposition of federally financed in- provisions of those authorities, shall take action a competitive bidding; of (ii) the appraised value frastructure assets owned by State and local gov- to ensure that the policies of the executive de- of an infrastructure asset, as determined by the ernments and modify those procedures to encour- partment and agencies are consistent with the head of the executive department or agency and age appropriate privatization of such assets con- principles, criteria. and requirements of this or- the Director of the Office of Management and sistent: with this order; der. me Office of Management and Budget shall Budget, if the asset is not transferred as a result review the results of implementing this order and of competitive bidding. (b) Assist State and Local governments in their report thereon to the President one year after the efforts to advance the objectives of this order; date of this order. (e) “state and local governments” means the gov- and ernment of any state of the United States, the Sec. 6. Preservation of Existing m Authority. District of Columbia. any commonwealth. terri- (c) Approve State and local governments’ requests Nothing in this order is in any way intended to tory, or possession of the United States, and any to Privatize infrastructure assets, consistent with limit any existing authority of the heads of ex- country, municipality, city, town. township, lo- the criteria in section 4 of this order and, where ecutive departments and agencies to approve cal public authority, school district, special dis- necessary, grant exceptions to the disposition re- privatization proposals that are otherwise consis- trict, intrastate district, regional or interstate gov- quirements of the “Uniform Administration Re- tent with law. ernmental entity, council of governments, and any quirements for Grants and Cooperative Agree- agency or instrumentality of a local government, ments to State and Local Governments” common Sec. 7. Judicial Review. This order is intended and any federally recognized Indian Tribe. rule, or other relevant rules or regulations for in- only to improve the internal management of the frastructure assets; provided that the transfer price executive branch, and is not intended to create Sec. 2. Fundamental Principles. Executive depart- shall be distributed, as paid, in the following any right or benefit, substantive or procedural, ments and agencies shall be guided by the fol- manner: (i) State and local governments shall first enforceable by a party against the United States, lowing objectives and principles: (a) Adequate recoup in full the unadjusted dollar amount of its agencies or instrumentality’s, its officers or and well-maintained infrastructure is critical to their portion of total project costs (including any employees, or any other person. economic growth. Consistent with the principles transaction and fix-up costs they incur) associ- of federalism enumerated in Executive Order No. ated with the infrastructure assets involved; (ii) /a/ George Bush 12612, and in order to allow the private sector to if proceeds remain, then the Federal Government THE WHITE HOUSE Provide for infrastructure modernization and ex- shall recoup in full the amount of Federal grant pansion, State and local governments should have awards, associated with the infrastructure assets, April 30, 1992.
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