2. Supply Financial Tools.

At the federal level, programs such as TIFIA and tax-exempt PABs have proved important for PPP projects. These tools not only lower the cost of financing PPP projects but can make the difference on proceeding.

The flexible, subordinated financing of TIFIA allows for greater leveraging of project-related revenue. The addition of a revolving fund making funds that are repaid available for future projects- could greatly increase TIFIA's value. The TIFIA loan program, however, is oversubscribed-more than 39 applications were received in 2010-and more capacity is needed. TIFIA originally focused on encouraging private investment; the evaluation criteria for TIFIA applications should continue to encourage private-sector involvement.

Similar structures could be created at the state or metropolitan levels, following the revolving loan model of the Infrastructure Bank.

PABs would benefit from an increase in the current $15 billion cap and from an expanded ability to issue a variation of Build America bonds.