2013 Fall TBWG

1. 2013 Fall TBWG CBP Washington Updates

2. TBWG: CBP Washington Updates Agenda • Historic NB Appropriations & Current LPOE Magnitude of Need • Alternative Financing Initiative • Alternative Financing Legislative Framework Development • Engagement in Emergent Alternative Financing Opportunities • Alternative Financing Program Framework Development • Path Forward FY 2014, FY 2015, & Beyond • Questions 2

3. TBWG: CBP Washington Updates Historic NB Appropriations & Current LPOE Magnitude of Need • Through its FY06 Strategic Resource Assessments, CBP identified a $6B need to recapitalize its LPOE portfolio, which consists of 122 northern border ports and 46 southern border ports • Since FY07, Congress has appropriated $1.4B to LPOE modernization, $668M of which has been allocated towards northern border ports • The gap between annual appropriations and resource needs continues to grow as unmet LPOE construction, sustainment, and technology costs rise 3

4. TBWG: CBP Washington Updates Alternative Financing Initiative • To address these funding challenges and leverage non-traditional funding sources, CBP targeted the development of a long-term alternative financing strategy as an agency priority initiative in FY12 and again in FY13 • Key initiative focus areas include: • Proposing AF legislation that augments CBP’s ability to utilize outside resources as a supplement to traditional funding mechanisms • Engaging in a mixture of internally and externally initiated emergent AF opportunities • Establishing an AF program framework in anticipation of continued AF project engagement and in preparation for the opportunities posed through enactment of AF legislation 4

5. TBWG: CBP Washington Updates Alternative Financing Legislative Framework Development 5

6. TBWG: CBP Washington Updates Engagement in Emergent Alternative Financing Opportunities • Peace Bridge, NY AF Demonstration Project • Commercial warehouse renovation and expansion in partnership with the Buffalo and Fort Erie Public Bridge Authority • Engaged in pre-construction activities; project completion targeted for FY16 • New International Trade Crossing, MI Greenfield Project • CBP in process of refreshing its operational and space requirements • Concurrently working with GSA on design development activities with final concept design due in May • Operationally-Driven AF Opportunities • CBP in process of targeting operational priorities for further AF consideration 6

7. TBWG: CBP Washington Updates Alternative Financing Program Framework Development Overlaying Program Infrastructure 7

8. TBWG: CBP Washington Updates Alternative Financing FY 2014, FY 2015 & Beyond • FY 2014 • AF Program fully developed and implemented • Continued program infrastructure development • Development of out-going proposals & engagements with investor community • Possible CBP Donation Authority enactment and implementation • FY 2015 & Beyond • AF Program in a position of developing and entertaining a mixture of incoming and outgoing proposals • “Big Picture” PPP engagement, continued policy reform and exploration of alternative delivery mechanisms 8

9. TBWG: CBP Washington Updates Questions