E NVI RONME NT AL PUBL I C PRI VAT E PART NE RSHI PS No - PowerPoint PPT Presentation

E NVI RONME NT AL PUBL I C PRI VAT E PART NE RSHI PS No ve mb e r 17, 2016 Da nie l Ro b e rtso n Atto rne y I llino is Po llutio n Co ntro l Bo a rd

Ho w Did We Ge t He re ?  I nc re a sing funding g a p  Co rpo ra te e nviro nme nta lism

Bre a kthro ug h E ne rg y Co a litio n  Affo rda b le e ne rg y fo r e ve ryo ne witho ut c o ntrib uting to c lima te c ha ng e  T his g o a l re q uire s “ma rsha ling the re so urc e s a nd inte lle c t o f b o th the pub lic a nd priva te se c to rs.” - Bill Ga te s (Oc to b e r 6, 2016)

PUBL IC PRIVAT E RSHIPS PART NE

Pub lic Priva te Pa rtne rship “A c o ntra c tua l a g re e me nt b e twe e n a pub lic a g e nc y (fe de ra l, sta te , o r lo c a l) a nd a priva te se c to r e ntity. T hro ug h this a g re e me nt, the skills a nd a sse ts o f e a c h se c to r (pub lic a nd priva te ) a re sha re d in de live ring a se rvic e o r fa c ility fo r the use o f the g e ne ra l pub lic .” So urc e : Na tio na l Co unc il fo r Pub lic Priva te Pa rtne rships

Chic a g o Skywa y

Chic a g o Skywa y  Built in 1958  Skywa y Co nc e ssio n Co mpa ny, L L C  99-ye a r le a se  Ope ra te a nd ma inta in Skywa y  All to ll a nd c o nc e ssio n re ve nue  Chic a g o re c e ive d $1.83b c a sh infusio n

PPP Ba c kg ro und  Prima rily fo c use d in wa ste wa te r tre a tme nt se rvic e s  Re g ula tio ns to o rig id  L a c ke d fle xib ility

Co mmo n Se nse I nitia tive (CSI ) 1994-1998  E PA to o k se c to r-b y-se c to r a ppro a c h a c ro ss six diffe re nt industrie s  Co mpute rs a nd e le c tro nic s  Auto mo b ile  I ro n a nd Ste e l  Printing  Me ta l  Pe tro le um

Co mmo n Se nse I nitia tive (CSI ) 1994-1998  Cle a ne r, c he a pe r, sma rte r  Ma in o b je c tive s  E ffic ie nc y  I nc e ntivize  I nc re a se pa rtic ipa tio n  Mo tiva te

Pro je c t XL (1995-2002)  “e Xc e lle nc e a nd L e a de rship”  Na tio na l pro g ra m  De ve lo p ne w me tho ds fo r a c hie ving e nviro nme nta l a nd pub lic he a lth pro te c tio n  Re g ula to ry o r pro c e dura l fle xib ilitie s

Pro je c t XL (1995-2002)  Pe rfo rma nc e -b a se d a ppro a c h  Pro vide o ppo rtunity to  de ve lo p inno va tive e nviro nme nta l impro ve me nts  re duc e c o mplia nc e a nd tra nsa c tio n c o sts

Pa rtne r Dutie s  Pro vide a se rvic e  F ina nc e a pro je c t  De sig n o r c o nstruc t a fa c ility  Ope ra te o r ma inta in a fa c ility o r se rvic e

No rth Chic a g o E ne rg y Ce nte r  No rth Chic a g o Ve te ra ns Affa irs Me dic a l Ce nte r  E ne rg y Syste ms Gro up  de sig ne d, c o nstruc te d, a nd no w o pe ra te s e ne rg y c e nte r  Re ve nue g a ine d b y e xpo rting po we r to e le c tric g rid  Me dic a l Ce nte r re c e ive s pe rc e nta g e o f re ve nue fro m sa le to no n-VA c usto me rs

Why e nte r a Pa rtne rship?  T e c hno lo g y  Co st-e ffe c tive ne ss  De le g a tio n o f re spo nsib ility a nd risk

Why e nte r a Pa rtne rship?  Gua ra nte e s  T ra nspa re nc y  F ina nc ing

City o f Mo nmo uth E nviro nme nta l Ma na g e me nt  All pub lic wo rks se rvic e s  Sing le priva te pro vide r  E nviro nme nta l Ma na g e me nt Co rpo ra tio n, b ut Wo o da rd & Curra n to o k o ve r in 2013

City o f Mo nmo uth E nviro nme nta l Ma na g e me nt  “He lpe d the c ity b e g in a re c o ve ry fro m ye a rs o f fina nc ia l diffic ultie s.”  “A c ruc ia l c o mpo ne nt o f a lo ng - te rm stra te g y de vise d to pro vide fina nc ia l sta b ility, impro ve the q ua lity o f se rvic e s, re duc e c o sts a nd e nha nc e the c ity’ s e c o no mic c o mpe titive ne ss.” So urc e : Mo nmo uth.c o m

Pro b le ms with Pa rtne rships  F unda me nta l inc o mpa tib ility  T ra nsa c tio n c o sts  L a c k o f T ra nspa re nc y  Pric e I nc re a se s

Pro b le ms with Pa rtne rships  Sho rt te rm c a sh infusio n hinde rs lo ng -te rm c a sh flo w  L o ng -te rm Sta te g ua ra nte e s fo r pro fits o f priva te c o mpa nie s  Co ntra c tua l o b lig a tio ns le a d to re duc tio ns e lse whe re

Pro b le ms with Pa rtne rships  Pub lic Se c to r lo se s  F le xib ility  Co ntro l  E ffic ie nc y  Unc e rta inty

Pro b le ms with Pa rtne rships  “I t se e ms o b vio us tha t the fina nc e o f a sse ts is a suita b le func tio n fo r the pub lic se c to r, whic h ha s o ne hug e a dva nta g e – the a b ility to b o rro w c he a ply.” Ma rtin Wo lf, Se nio r E c o no mic s Jo urna list, F ina nc ia l T ime s (2008)

Pro b le ms with Pa rtne rships  “I f yo u’ re a g o o d pub lic se c to r, yo u sho uldn’ t ne e d PPPs. I f yo u’ re b a d, yo u sho uldn’ t g o ne a r the m.” Ro b e rt Ba in, “Re vie w o f L e sso ns fro m Co mple te d PPP Pro je c ts F ina nc e d b y the E I B” (Ma y 2009)

So urc e : Na tio na l Co unc il fo r Pub lic Priva te Pa rtne rships

I llino is Pub lic Priva te Pa rtne rships Ac t (SB3277) 2/ 19/ 16 F ile d b y Se n. He a the r Ste a ns Re fe rre d to Assig nme nts 2/ 24/ 16 Adde d a s Chie f Co -Spo nso r Se n. K a re n Mc Co nna ug ha y 3/ 8/ 16 Assig ne d to Co mme rc e a nd E c o no mic De ve lo pme nt Co mmitte e 4/ 8/ 16 De c isio n de a dline e xte nde d to 4/ 22/ 16 4/ 22/ 16 Re -re fe rre d to Assig nme nts

I llino is Pub lic Priva te Pa rtne rships Ac t  Offic e o f Pub lic -Priva te Pa rtne rships  Pro vide a ssista nc e a nd e xpe rtise  Se t fo rth a ppro va l re q uire me nts  E sta b lish sta nda rds fo r a g re e me nts

I llino is Pub lic Priva te Pa rtne rships Ac t  Offic e o f Pub lic -Priva te Pa rtne rships  Pro mo te the de ve lo pme nt, fina nc ing , a nd o pe ra tio n o f PPP a g re e me nts  Attra c t priva te e ntitie s thro ug h g o ve rnme nt o utre a c h e ve nts

I llino is Pub lic Priva te Pa rtne rships Ac t  Allo ws a ny pub lic a g e nc y, with a ppro va l, to e nte r into a PPP a g re e me nt with a ny priva te e ntity fo r impro ving  T ra nspo rta tio n a sse ts  Pub lic Building s  Pub lic Se rvic e s  Othe r Pub lic Asse ts  Cre a te s L o c a l Alte rna tive Pro c ure me nt F und

E xisting I llino is L a ws  20 I L CS 2705/ 2705-450  Hig h-spe e d ra il a nd ma g ne tic le vita tio n tra nspo rta tio n de ve lo pme nt  605 I L CS 5/ 10-802  Munic ipa l b ridg e s o ve r rive r fo rming sta te b o unda ry  605 I L CS 130/  I llia na E xpre sswa y

EPA Action Checklist √ Evaluate service needs √ Review available technologies √ Identify expert resources √ Evaluate financing prospects

EPA Action Checklist √ Identify community resources and generate support √ Study laws and regulations √ Evaluate business interest and track record

EPA Action Checklist √ Consider regional options √ Narrow partnership types √ Select and conduct procurement process √ Develop service agreement

7 K e ys to Suc c e ss fo r PPPs Pub lic Se c to r Cha mpio n 1. Sta tuto ry E nviro nme nt 2. Pub lic Se c to r’ s Org a nize d Struc ture 3. De ta ile d Co ntra c t 4. Cle a rly De fine d Re ve nue Stre a m 5. Sta ke ho lde r Suppo rt 6. Pic k Yo ur Pa rtne r Ca re fully 7. So urc e : Na tio na l Co unc il fo r Pub lic Priva te Pa rtne rships

QUE ST I ONS? Da nie l Ro b e rtso n Da nie l.ro b e rtso n@ illino is.g o v 312-814-6931