It is a particularly good time for states to implement P3 legislation to make P3 projects more efficient and predictable. The more states and their associated regulatory authorities weigh in on P3 parameters, documents, and general rules of the road, the easier it will be for project owners and private sector parties. The more clarity built around the procurement process and documentation, the easier it will be for the private sector to participate and for the states to coordinate with the many federal programs that are providing significant infrastructure funding for those projects that can qualify.
Infrastructure projects, specifically P3 projects, are complicated and difficult to structure in the current environment where owners and the private sector must address risk allocation and structure transactions that may last for 50 years or more. With volatile interest rates, supply chain challenges and contractors refusing to participate, state legislation can help level the playing field, whether it is for a specific kind of P3 project or the creation of a department to manage a state’s P3 process. State resources can also provide support to public owners who need federal funding and access to public sector capital.
In an environment where there are many significant federal programs designed to help fund a panoply of infrastructure projects, it is important that states have a user-friendly mechanism to assist owners and the public sector in the design and documentation needed during the procurement process to ensure P3 structures focus on the needs of the parties participating and the public who will benefit from the projects. In today’s environment, identifying sufficient private capital and dealing with federal and state regulatory requirements are a necessary component of the procurement process and the risk allocation process that comes with it.
At Squire Patton Boggs, we are tracking the P3 Legislation as it is proposed and passed by states. Our current tracker showing the most recent actions taken by various states is below. We will continue to update this tracker and will be providing commentary about statutes as they are passed and implemented. Please feel free to reach out to us if you have questions or comments.
Our current P3 Legislation tracker, as of May 2023, showing the most recent actions taken by various states can be accessed here.