Special Experimental Project No. 15 (SEP-15) is a new experimental process within FHWA to encourage Public-Private Partnership approaches to project delivery. SEP-15 is designed to increase project management flexibility, encourage innovation, improve timely project construction, and generate new revenue streams for Federal-aid transportation projects. While FHWA has long encouraged increased private sector participation in Federal-aid projects, SEP-15 allows FHWA to actively explore much needed changes in the way we approach the oversight and delivery of highway projects to further the Administration's goals of reducing congestion and preserving our transportation infrastructure.
SEP-15 addresses, but is not limited to, four major components of project delivery:
• innovative contracting;
• compliance with environmental requirements;
• right-of-way acquisition; and
• project finance.
However, SEP-15 is not a magic wand to eliminate Federal requirements. This experimental authority does require applicants to fully comply with all requirements of NEPA and other State and Federal environmental laws and regulations. SEP-15 is limited to Title 23 of the United States Code, and thus cannot be used to experiment with legal or regulatory requirements that fall outside of Title 23. For example, States will have to follow the same environmental requirements under SEP-15 as they would for any other project, but may be permitted to experiment with the procedures used to accomplish such requirements. Additionally, SEP-15 is not a tool for broad, programmatic changes.
=> What are the benefits of SEP-15?
SEP-15 is built on two earlier experimental programs - Special Experimental Project No. 14 (SEP-14) and Test and Evaluation Project No. 045 (TE-045). SEP-14 encouraged innovation in contracting and was very successful in encouraging the use of design-build. TE-045 encouraged experimentation in the area of highway finance, which has allowed for the construction of projects with fewer Federal dollars. Similarly, a key feature of SEP-15 is that it will allow FHWA to identify current FHWA laws, regulations, and practices that inhibit greater use of Public-Private Partnerships and private investment in transportation improvements. At the same time, it will allow us to develop procedures and approaches that address these impediments. With the creation of SEP-15, FHWA will be able to move beyond merely encouraging Public-Private Partnerships and begin actively working with our State partners and industry to bring more innovation, private funding, and intellectual capital to the delivery of Federal-aid construction projects.
=> What is the application process for SEP-15?
All SEP-15 applications must come from a State DOT. Proposals may include localities and private transportation ventures as joint project sponsors, but the State highway agency should be the primary project sponsor. A State DOT should submit SEP-15 proposals to its FHWA Division Office.
SEP-15 applications should provide a brief description of the project, the experimental techniques proposed, and the reasons why the experiment is sought. The FHWA headquarters and the FHWA Division Office will work together in evaluating SEP-15 applications. Once a SEP-15 application is approved, the FHWA will work with the State DOT to negotiate and Early Development Agreement (EDA).
Upon the completion of major milestones, the public-private sponsors will be responsible for submitting an independently prepared report that summarizes lessons learned from the SEP-15 process. These reports shall include the experiment undertaken and the lessons learned, an evaluation of the success of the process and its impact on the project, and recommend statutory and regulatory changes with an explanation of how the changes will improve the delivery of the Federal-aid highway program.
More information on SEP-15 and specific guidance on the application process can be found at http://www.fhwa.dot.gov/ppp/sep15.htm.