This chapter reviews the extent to which existing state and Federal laws facilitate or impede the use of PPPs in the transit industry. The first section identifies the various legal and regulatory issues facing PPP programs involving transit projects and/or services. The second section describes the extent of legal authority, contracting requirements, and impediments that exist for surface transportation PPPs at the state and local levels of government. The third section presents the key Federal statutory and regulatory requirements impacting transportation PPPs and FTA programs, processes, and resources that impact the applicability of PPPs to transit projects. The section reviews certain laws, regulations and procedures governing FTA capital grant programs that either facilitate or pose barriers to full implementation of PPPs.
The final section suggests changes in Federal, state and local laws and procedures required to facilitate a PPP program. Also discussed are ways in which the definitive terms governing FTA's Public-Private Partnership Pilot Program (the "Penta-P" or "Pilot Program") will encourage PPPs by removing certain procedural obstacles for PPP projects that meet the Pilot Program's criteria and protect the Federal interest.4
_______________________________________________________________________________________________________
4 Federal Transit Administration, Docket No: FTA-2006-23697, Public-Private Partnership Pilot Program, 72 Fed. Reg. 2583 (January 19, 2007) (the "Pilot Program Notice"). The Pilot Program was authorized by section 3011 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law 109-59, 119 Stat. 1144 et seq. (2005).