Private Sector Participation Legislative Overview

The Moving Ahead for Progress in the 21st Century Act (MAP-21) continued FTA’s support for private sector participation by:

• Better coordinating public transportation services delivered by both public and private providers;
• Promoting more effective use of private-sector expertise to deliver capital transportation projects; and
• Promoting better understanding of public-private partnerships by providing technical assistance and education opportunities.

Specifically, 49 U.S.C. 5315 and 20013 of MAP-21 requires FTA to:

• Identify public transportation laws, regulations or practices that impede public-private partnerships or private investment in transit capital projects, and develop procedures through regulation to address, on a project basis, legal impediments to the use of public-private partnerships and private investment, as well as procedures to protect the public interest and any public investment in public transportation capital projects that involve public-private partnerships or private investment in public transportation capital projects.
• Develop guidance to promote greater transparency and public access to public-private partnerships agreements.
• However, FTA will not waive any provision of Federal law, including labor protections of 49 U.S.C. § 5333 and NEPA.
• Develop guidance on how to best document compliance by grantees with the private enterprise participation requirements in the planning and transportation improvement programs under 5303(i)(6), 5306(a), and 5307(b).
• At the request of project sponsors and grantees, provide technical assistance on best practices and methods for using private providers of public transportation and using public-private partnerships for alternative project delivery of fixed guideway capital projects.

The Private Investment Project Procedures (PIPP) for public transportation capital projects Notice of Proposed Rulemaking (NPRM) will help the federal government develop more effective approaches to spurring private participation and investment in project planning, development, finance, design, construction, maintenance, and operations. Grantees would be allowed to identify FTA regulations, practices, procedures or guidance that may impede use of a public-private partnership (P3) or private investment in that project. The FTA Administrator would have discretion to grant a modification or waiver of a requirement if certain criteria are met.