"Fiscal pressures, burgeoning capacity needs, and escalating operating and maintenance costs are forcing states to pursue innovative financing options to complement traditional financing tools," states the letter signed by Utah Gov. Gary Herbert, chairman of NGA's Economic Development and Commerce Committee, and North Carolina Gov. Bev Perdue, the committee's vice chair. "Many states, for instance, have enabling statutes that govern public/private partnerships. While each statute is unique, common features include strict oversight of performance standards, toll policies, labor protections, revenue sharing, risk allocation, use of toll proceeds, transparency, public participation, length of concession, and bidding procedures. States have been careful and prudent in their analysis, negotiation, and oversight of public/private partnerships to ensure adequate protections of the public interest."

Governors support the development of flexible and innovative financing mechanisms that strengthen the mobility goals of the states, according to the letter. NGA opposes any federal restrictions on the ability of the states to pursue public/private partnership arrangements to address the states' unique infrastructure needs.

Several provisions in a House Transportation and Infrastructure Committee draft reauthorization bill would restrict innovative financing options for states and local governments, the letter states. Governors are concerned that two sections of the proposal would create a new federal office to review and approve all toll rate schedules and public/private partnership agreements. Another section would repeal current law that enables states to toll and place new limits on tolled facilities. And a fourth section would impose new requirements and mandate certain public/private partnership contract provisions.

"State and local authorities, as the principal owners and operators of the surface transportation system, must retain flexibility to determine the appropriate level of private-sector participation in their surface transportation programs," Herbert and Perdue wrote. "Therefore, we urge the Senate to avoid including these House provisions in any Senate draft. We look forward to working together to develop a national vision for surface transportation infrastructure that provides for our nation's growing mobility needs, sustains an effective national transportation financing system, and improves the state/federal partnership."