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Transportation Transformation Group White Paper on Implementing MAP-21 Public-Private Partnerships Provisions

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The Transportation Transformation Group (T2) is a non-profit group built around a consensus that federal surface transportation policies demand a transformation that emphasizes congestion relief, increased safety, and the efficient movement of goods to America's transportation customers. Our members include departments of transportation of Texas, Florida, Indiana, Utah, New Hampshire, the North Texas Tollway Authority, Port of Houston, Pioneer Institute, Reason Foundation, Cintra US, Dannenbaum Engineering, HDR Engineering, Inc., Nossaman LLP, International Bridge, Tunnel and Turnpike Association, Bank of America-Merrill Lynch, Barclays Capital, Wells Fargo, Goldman, Sachs & Co., HNTB Corp., JP Morgan, Raymond James & Associates, Inc., Piper Jaffray, Morgan Stanley, Siebert Brandford & Shank and Citi.

Congress and President Barack Obama have enacted the Moving Ahead for Progress in the 21st Century Act (MAP–21), focusing policy on solutions that free state ingenuity and reduce restrictions on innovation. T2 suggests that these concepts should remain at the forefront of the U.S. Department of Transportation's efforts to implement the new law.

MAP-21 intends to promote public understanding of public-private partnerships and better coordinate the public and private sectors with respect to public transportation services by requiring the Secretary to develop policies and procedures to identify and address impediments to the greater use of public-private partnerships and private investment in public transportation infrastructure.

The bill imposes new requirements on the Secretary to develop best practices and "standard public-private partnership transaction model contracts" for the "most popular" types of PPPs for the development, financing, construction and operation of transportation facilities. States are encouraged to use those model contracts as a base template. The bill also requires the Secretary to provide technical assistance on public-private partnership practices and methods upon request of the federal-aid recipient.

T2 suggests strict adherence to MAP-21 in the implementation of these provisions and that the USDOT avoid any appearance of seeking to expand on these provisions to lay the groundwork toward a greater future federal regulatory role over public-private partnerships. Instead, we suggest building on the expansive body of laws generated at the state level to move public-private partnerships forward. T2 hopes to work in cooperation with USDOT to advance the public understanding of public-private partnerships, and better coordinate the public and private sectors with respect to public transportation services as provided by MAP-21.

2015 Surface Transportation Primer »

MAP-21 »

  • Resource Center
  • Moving Past MAP-21

Explainers »

  • What is the Highway Trust Fund and How Is It Funded?
  • Is the Highway Trust Fund Going Broke?
  • How should we finance transportation?
  • What is a VMT?
  • What transportation policies create value for consumers?
  • How do Private Activity Bonds (PABs) and TIFIA Work?
  • What is a Public-Private Partnership?
  • How TIFIA Helps to Solve the Problem
  • Six-year vs. Two-year Transportation Legislation

Position Summary »