Los Angeles County One Gateway Plaza zi3.9~2.zo00 Tel Metropolitan Transportation Authority Los Angeles, CA 90012-2952 metro.net

@ Metro REGULAR BOARD MEETING

March 24,201 1

SUBJECT: AMERICA FAST FORWARD

ACTION: RECEIVE AND FILE

RECOMMENDATION

Receive and file information regarding the America Fast Forward initiative.

The Board approved 3011 0 and accelerated highway initiatives have gained broad local support and acceptance. The concept to accelerate the construction of major capital projects through partnering with the Federal government has been embraced by local constituents, elected officials, the media, think tanks, and various opinion leaders. It is now time for the local initiatives to go national. "American Fast Forward" presents a national platform that will create support for adopting innovative financial legislative proposals to accelerate the construction of highway and transit projects.

DISCUSSION

"American Fast Forward" is a national platform designed to build support for accelerated construction across the country.

America Fast Forward allows communities to issue America Fast Forward Job Bonds for local jobs initiatives with a tax credit in order to secure favorable financing terms so that as large a percentage of public resources are in fact directly supporting immediate private sector job creation at the local level. It will not harm the federal budget as the federal government will leverage locally-based and dedicated funding streams to guarantee that federal taxpayers are made whole for any credit that is provided. America Fast Forward provides loans and bonds in instances where there is real accountability in terms of a specifically identified initiative that will result in quality private sector jobs and economic investments. America Fast Forward empowers local communities by giving them the decision-making authority when it comes to identifying what jobs initiatives will best serve the priorities of their communities.

The goals of America Fast Forward are: To create jobs right now by empowering local communities To support tens of thousands of Main Street American businesses in a new and innovative way To leverage private capital to create one million private sector infrastructure jobs nationwide

a To create quality private sector jobs - not through the traditional route of the federal government providing taxpayer funded grants that flow through a variety of entities - but by empowering local communities with forward-looking financing tools that will allow them to focus their own communities resources directly on the priorities that will best lead to real job creation right now To empower local communities not only to make decisions about what is best for them

Congressionally-appointed national commissions, professional engineering organizations, academic think tanks, and national business groups have all documented the national imperative for a new era of federal investment in transportation infrastructure. A new era of federal financing of critical transportation infrastructure must take place within the context of fiscal and budget realities confronting both the Administration and Congress. These fiscal realities require smart, targeted, and innovative financing mechanisms that achieve two national priorities: minimize impacts on the federal budget and maximize the generation of new jobs, particularly in the small business sector. A new federal financing approach, leveraging transportation projects at the state and local levels can achieve both of these priorities. This is the innovative thinking behind America Fast Forward.

The America Fast Forward Plan would support the creation of a 21st Century national surface transportation system. The Plan contains two federal innovative and proven investment methods: tax code incentives and credit assistance. The specific legislative proposal are: (1) Qualified Transportation Improvement Bonds; and (2) Enhanced Transportation Infrastructure Finance and Innovation Act Program. America Fast Forward offers economic revitalization by stimulating infrastructure investment to create jobs and aggressively renewing our aging surface transportation system.

The federal government has four types of broad policy tools it can use to stimulate infrastructure investment: grants, regulatory streamlining, credit assistance and tax code incentives. Grant funding has been the traditional federal tool for surface transportation, but new fiscal realities and the magnitude of the nation's transportation investment needs far exceed available resources. Regulatory reforms generally have modest fiscal impacts, and can be helpful in streamlining project delivery. However, they may not be adequate to stimulate major capital investment in and of themselves. But credit assistance and tax code incentives, when used as innovative project finance tools, promote two important federal policy objectives: (a) stimulating investment through leveraging pledged state and local revenue streams or user charges; and (b), limiting budgetary costs.

America Fast Forward

NEXT STEPS

America Fast Forward will serve as the national platform to promote federal policy tools that draw upon credit and tax incentives to advance and accelerate major transportation investments in our nation's highway network and transit systems.

ATTACHMENTS

Attachment A: America Fast Forward Overview Attachment B: America Fast Forward QTlBs Provision Attachment C: America Fast Forward TlFlA Provision

Prepared by: Matt Raymond, Chief Communications Officer

America Fast Forward

I

Matt ~aymdnd Chief Communications Officer

Arthur T. Leahy Chief Executive Officer

America Fast Forward

~ r ~ a t e j ~ b s right now by empowering local communities

6 support tens o f thousands of M a i n Street American businesses in L: rirtw and rnnovative way

levergge private capital to create one t ~ i ~ l t ~ s n private sector infi.astriic.ture jobs s.natronwrde

creare qua%ity yrivute t;ectorjsbs - not ti.3 rtsugh 1E.r~. trad ltronal router oh the Fizderal government providing taxpayer funded grants that flow eilrattgh a varrety ofent~tres - but hy empowerilag locad cowornunitte., witi: forward-lr~ctltrng liaiartctrrg toois that wrll allow therr~ to focus tl-ne~r own crsrnmunitlcs reso2rrces d ~ r e c t ly on the priorltie5 that w~ll best lead to real jot) creratron right now

empower lscol communities not only to make derrsir~ns about what rs best for them when it cornen to jobs - but In a way that does not cidd t o r:,3 ~iat idn's b u d g ~ t proi~Jer~:;

A M ERICA FAST F O R W A R D ;!lows comr??~inilies to issue. Ainen'rcr i '~s i I::c;nuitrrr'jnb B::ildr f::r local jobs initiatives with a L A X credit in order to secure Iavortible

AM ERICA FAST F Q R W A R D roc/ r:ct :??rtv: the &&ral budget L S tl?e rcderdl govcrtlmcnl will leverage I(.icait)..-bdseci aild c!edir:ali-d ii~i-;c!ing s:r:?;irns to gudrantec; ;ha: fecicrai tar;)dyors arc rriadc: ~vhule For

crp, ,,rr J ' , ,:., ~Yid: + IS nrovided.

A M E R l C A FAST FORWARD p r a ; d , ? z Iaans rtild bonds i tgsia~ccs t~i;Erpre ek-~:: 1.; 3<i.olarY:ai,ljie term5

o f 3 ~ : > e ~ i f i i i I : ~ i~er1tif ic.4 irri:i:ativ:. i.h:it will result i r i quaiiiy :;{i:i.;a;e :<ec:sr oij.; lirltj c-ut.;sry:ic :r:v<,\trrrcr.gts.

A M ERiiCA FAST F O P W A R D cmpoacss !#cal communities by giving them t h e dec~sion-making authority when it c.orne6 to ~dentiryirig wha: jobs ini:ia;,ves ~ v i l l best serve the priorities of thei r communities.

Cirrreni-Lse ?rapnirsr Current-ldw Prf:l!ns-.d Currer,t-:;w ?'rt$~~re:J Wd i : : iwse In 8.stit:;ated kr% B'cgra2n Prr$r?ztr Bropsarn Prs,~';i:? P?ni;?arl e n : T-3i?rpcnat2nii Fedrral Bcib:etsr# izi?i:m?rI IV~$>ZT,~~ ! ir?;;;trnent l,;~?stnlt~*si Inv1:-1~12:.t i ir!u:r:nr~iit Cost iScorcj

: . ~ t i i -mAL I L: TQiirl TOTAL

2 jab Creation > Cost Savings z Project Acceleration > Economic Development > Infrastructure lmprovernentr > Resource Maximization

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!.c.ia?~d ac.tq:iti,-i. 'i'kirse i:idusii.ics :I;.? th:: cfiili-ci. of'riiorc, riidri 73 iriillioi~ Azncri:.:tri jobs, wi:ii ..i tot,d p;;yri~lj iri i2x<:ess oT SL .8 !rilliozl, 3 ~ ~ 1 l l~r l i r ~r : i$o>l :%<>~ c-r)~~itrilxrI:~ IT;i>i.F l i l~r! ?i2:3:; l~iliiot.! aririually in state alid i;..niorai ! ~ ~ i . < i l l ! aye .

Sr~arker Thinking, Better Tacpls

Fdow to Accelerate Capital l nvestrnent

Sat is r ing %he Needs 089takehofders

America Fast F Q . & ~ L P : Q / $ ~ ~ ~ Hits the Ahark

QTTRs woitli! Lrc: a~~i.~oi.i,,~.;i in t i ! ?? ariioi:lil u'f4.5 biliioi.; per yCir finr:i 2011-2020. or $45 biilicii,~ i!i ti%:;]. Cr:i.q:;i~?d atr>otrii:s roiild be c~rrieti 5~rwr;):d to a f;,itl:rc yex. Of the {eta]. 65 pcirccnt oilid id bi! allocai-ilc by i!~,, Si~i.f!i;eiy ol ~Ii.ar~s;~oriaiior~ lor."?:cr.ga illii.:Iii. ti.a~;;poriatio:: pojf:(:ts," dvfii~c::; AS pu;)lic t:.ans;>ortatio~? iri;~~rovvrn?:iis thal:

s Significantly redurc emissions of greenhouse gases; > Wave capita! costs in excess a f $7 btllion; and > Receive no more than 30 percent of their funding 5on-r federal

grants under title 23 or chapter 53 oftit le 49.

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i..rtdt3r ill!: c t~rst>~it prograrii, il,t:% [ . . S . Ikp:~rtrii<\rii o S :iiadi!:ig availal~lc ioi p?ogxajr! aiir~iiiii.~:i.~rioii woidd i ~ t b ir:i.rt,asi.d 'l:an.i?oriati(~n (rail p~.ovick~ ;i.i:dj t assistani:~: for slirfa(:t: frotn $2.2 irt!I;;or~ to $5.0 rniliiori. i:aii<:?or:;:tio:i t?ri??t:r:is ofiiallorial or l.teioir.11 sin~tific,nic:t. i r i ii'i.

indiviciuai projc~:ts. Bc.fo:-c t':ic: c::~ciition i;f ail Jggri.cr:ii.r;t +:;it t.o!iii:iits i-redir a~si.;i;lric::. a projtv:! .;porisor oi~:si :;=:.c,ivr. its liiial $50 B i~riviroilrz:~ntd a:>p:oi.ais, Ll,~vi: diiaiic$ rosi <:siic;atcs piirsuant to 2 ;:1::s;3~![ja:-c.\cl oftli.sigrt/tai;giiieerirrq work o:.;i:> pxtAc..j.irti innst:.irc:ion agrc~c~ni-!:!, a i ~ d ~ V C 3 coi r~plc t~ pi311 ~ ! ' i i r i ~ t l c i ~ v;it;i all oi1:c:: "inariiial coinr:li.r:. erit,b iu! [:Iac.r.

'Iiiil provisio:~ v.ould ,~i~thi>rize tile Secretary of'l'rai;sportaiiuri to nin'ce u:.)!-lozt corlciilion:~! cictiit c.o!:nn:i;ri::~rilz b r r~r1:j.r: "irirga pxl'!ii: transportdtio~i projr:ctsn that wiii ;>(, phas:;ci i:: ovc3r a pcrlocl o I ' ~ e ~ e ~ : l i y:!:irs by !~~i~:ijis or:; ~rizsier c,r?cIil ;3g;rvr:rirr:t. '1'I;e inah ti.: ::rc.ciit aproim1i:nt woilid i:oiiditic:rialiy coinrr~it th~: Scc~eI.ly to i jrc~~tli i tg ori(: or rriou: i;::iii.c lo:lx!s 1)r oiki<:r f i~l~>t.i : ii.c:di; '.i?s:r.r;g;lr:ii iiir cligi'jie p?-ojec!s i1po:i tiii% sai:sia<t!oi~ oi' :~c~:csi-;iry re:~t~ircir~ciiLs, j.t;<:liiciir!;: i l lc f'<:d<,r:;: ~ I . I I : ~ ; ~ I I ~ :?lid j?ri7gr3it;ir1ir!g w(~t i i r~~ir~ei i t s ;i!:;d ii:? li:i;i! en\~i~~r):i inr~~il;~i appfi)vals urldcr t l ~ : Naliur~al Envirorirneritai Policy Ai!. Fu,-tlic.l.ri:or:~. t i i f , Strrt ri:i?y cou!d riitcr iirio 3 r~1nstc.r cl.?cli: a i : r~ i ' i~~ i .~ l t cnly if dt:dic:a!i,d i.i.vc.nt:c. siiuxcc,.; iilr !.c:p.!yiriCili