Public-Private Partnerships

California recognizes the desire to introduce private sector capital and expertise to the building of transportation infrastructure through the Public-Private Partnerships (PPP) program. By offering reasonable investment returns, California's public sector intends to partner with the private sector to develop, construct, and operate additional transportation projects to accelerate goods movement, improve air quality and facilitate California's economic development.

Current Legislation

The California Legislative authority (Section 143 of the Streets and Highways Code) for PPP projects expired on January 1, 2017

Prior Legislation

On February 20, 2009, Governor Schwarzenegger approved Senate Bill Second Extraordinary Session 4 (SBX2 4) Chapter 2, Statutes of 2009 (Cogdill) which established the legislative authority until January 1, 2017 allows regional transportation agencies and Caltrans to enter into an unlimited number of Public-Private Partnerships (PPP) and deleted the restrictions on the number and type of projects that may be undertaken. SBX2 4 also established legislative authority until January 1, 2014, for a design-build demonstration program for the state by allowing a total of up to 15 demonstration projects, up to five projects (local street or road, bridge, tunnel, or public transit projects) for the local transportation agencies and up to ten projects (state highway, bridge, or tunnel projects) for Caltrans.

On May 19, 2006, Governor Schwarzenegger approved and was effective January 1, 2007, Assembly Bill (AB) 1467 (Nunez) Chapter 32, Statutes of 2006, authorized Caltrans and regional transportation agencies to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities for certain types of transportation projects.

On September 28, 2006, Governor Schwarzenegger approved AB 521 (Runner) Chapter 542, Statutes of 2006, which modified provisions in AB 1467 to instead provide that the California State Legislature has 60 legislative days to act after submittal of a Public-Private Partnerships (PPP) negotiated lease agreement.

On July 10, 1989, Governor Wilson approved AB 680 (Baker) Chapter 107, Statutes of 1989 which authorized the department to enter into agreements with private entities for the construction by, and lease to, private entities of four transportation demonstration projects, including at least one in northern California and one in southern California.

US DOT - Federal Highway Administration (FHWA) PPP website

For additional information, please contact Office of Innovative Finance.