This bill requires a value-for-money analysis as part of certain applications for financial assistance for transportation projects.
An applicant for assistance through the Transportation Infrastructure Finance and Innovation Act program and the Railroad Rehabilitation and Improvement Financing program must include the analysis if the project (1) has an estimated cost that exceeds $750 million, and (2) is carried out in a state that authorizes the use of public-private partnerships for transportation projects. The analysis must address, among other matters, the cost of using public funding versus private financing.
Additionally, the Department of Transportation must (1) report to Congress about the use of private financing for such transportation projects and the benefits of value-for-money analysis; and (2) issue guidance on performance benchmarks, risk premiums, and expected rates of return on private financing for transportation.
To require certain transportation projects to include a value-for-money 
                   analysis, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. VALUE FOR MONEY ANALYSIS.

    (a) In General.--Notwithstanding any other provision of law, in the 
case of a project described in subsection (b), the entity carrying out 
the project shall, during the planning and project development process, 
conduct a value for money analysis of the project, which shall include 
an evaluation of--
            (1) the life-cycle cost and project delivery schedule;
            (2) the costs of using public funding versus private 
        financing for the project;
            (3) a description of the key assumptions made in developing 
        the analysis, including--
                    (A) an analysis of any Federal grants and subsidies 
                received or expected (including tax depreciation 
                costs);
                    (B) the key terms of the proposed public-private 
                partnership agreement, if applicable (including the 
                expected rate of return for private debt and equity);
                    (C) a discussion of the benefits and costs 
                associated with the allocation of risk;
                    (D) the determination of risk premiums assigned to 
                various project delivery scenarios;
                    (E) any user fee revenue generated by the project; 
                and
                    (F) any externality benefits for the public 
                generated by the project; and
            (4) any other information the Secretary of Transportation 
        determines to be appropriate.
    (b) Project Described.--A project referred to in subsection (a) is 
a transportation project--
            (1) with an estimated total cost of more than $750,000,000;
            (2) carried out--
                    (A) by a State, territory, Indian Tribe, unit of 
                local government, transit agency, port authority, 
                metropolitan planning organization, airport authority, 
                or other political subdivision of a State or local 
                government; and
                    (B) in a State in which there is in effect a State 
                law authorizing the use and implementation of public-
                private partnerships for transportation projects; and
            (3) that is carried out with--
                    (A) assistance under the TIFIA program under 
                chapter 6 of title 23, United States Code; or
                    (B) assistance under the Railroad Rehabilitation 
                and Improvement Financing Program of the Federal 
                Railroad Administration established under title V of 
                the Railroad Revitalization and Regulatory Reform Act 
                of 1976 (45 U.S.C. 821 et seq.).
    (c) Reporting Requirements.--
            (1) Project reports.--For each project described in 
        subsection (b), the entity carrying out the project shall--
                    (A) include the results of the analysis under 
                subsection (a) on the website of the project; and
                    (B) submit the results of the analysis to the Build 
                America Bureau and the Secretary of Transportation.
            (2) Report to congress.--The Secretary of Transportation, 
        in coordination with the Build America Bureau, shall--
                    (A) compile the analyses submitted under paragraph 
                (1)(B); and
                    (B) submit to Congress a report that--
                            (i) includes the analyses submitted under 
                        paragraph (1)(B);
                            (ii) describes--
                                    (I) the use of private financing 
                                for projects described in subsection 
                                (b); and
                                    (II) the benefits of conducting a 
                                value for money analysis; and
                            (iii) identifies best practices for private 
                        financing of projects described in subsection 
                        (b).
    (d) Guidance.--The Secretary of Transportation, in coordination 
with the Build America Bureau, shall issue guidance on performance 
benchmarks, risk premiums, and expected rates of return on private 
financing for projects described in subsection (b).
                                 <all>
A bill to require certain transportation projects to include a value-for-money analysis, and for other purposes.
A bill to require certain transportation projects to include a value-for-money analysis, and for other purposes.
Official Titles - Senate
Official Title as Introduced
A bill to require certain transportation projects to include a value-for-money analysis, and for other purposes.
Sen. Portman, Rob