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Public P rivate Partnerships. July 28, 2014. Joe Corrigan Barnes & Thornburg. Overview. Shrinking military Tight budgets Still there are opportunities, if: A requirement A source of funds Favorable scoring An incentive for the Department to partner with the public sector. Hill View.
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Public Private Partnerships July 28, 2014 Joe Corrigan Barnes & Thornburg
Overview • Shrinking military • Tight budgets • Still there are opportunities, if: • A requirement • A source of funds • Favorable scoring • An incentive for the Department to partner with the public sector
Hill View • Defense appropriators are at best agnostic • Supportive of privatized housing • Concerned about control and priorities • Defense authorizers moderately supportive • Increasing oversight on housing projects • Concerned about future BAH rates • Increasingly concerned about the cost of energy deals • BRAC is impacting Members views • Authorized PPP for civil works projects
Department of Defense • Housing • Projects will continue • Energy • Army has large contract capacity • Using combination of real estate authorities and contracting authorities • Navy looking to expand number of renewable projects • Air Force least active of the Services • Energy Savings Performance Contracts continue • Other opportunities • Potential for other programs if scoring is favorable
Corps of Engineers • Water Resource Development Act • Supports development of non federal hydropower at Corps projects • Includes the Water Infrastructure Finance and Innovation Act of 2013 that authorizes innovative financing for certain civil works and EPA projects. Also authorizes loan guarantees. • Corps listening sessions webinar on August 27, 2014 • Alternative Financing – Contributions • Alternative financing Title V • Credits • Details will be posted in the Federal Register this week
Energy • 10 U.S.C. § 2922a Purchase Power Agreement (PPA) • Up to 30 years • 10 U.S.C. § 2667 Enhanced Use Leases (EUL) • 5+ years • 10 U.S.C. § 2913 Energy Savings Performance Contracts (ESPC) • Up to 25 years • 10 U.S.C. § 2913 Utility Energy Service Agreements • Up to 10 years