Let’s Not Privatize It All

May 11, 2016
Sw Jk

Funding for public projects and capital improvements is a tricky thing. General tax revenues might not generate what you need—or more likely you won’t get the share of the general fund you require to accomplish what you’re trying to do. Impact fees are likely to generate some pushback from developers. Special purpose taxes might get you a bit closer to the goal, and, in the case of stormwater projects at least, some nonpoint-source mitigation work might qualify for a 319 grant.

What other options are there? Lots of creative ways exist to encourage private investment in public infrastructure. Sometimes these take the form of stormwater credits to encourage property owners and businesses to make improvements that might treat runoff from more than just their own property—or the credits might encourage property owners to pay for stormwater infrastructure elsewhere if they don’t have the space on their own sites. Philadelphia and many other cities have explored these options. In other cases private investment might mean completely privatizing a water utility or section of roadway, such as a toll road.

In our ongoing discussions leading up to Infrastructure Week, the people Forester Media has spoken with have had different views on the optimum extent of private investment. Brant Keller, director of public works and utilities in Griffin, GA, offers some examples of privatization and public-private partnerships that have worked well in his state—and some that haven’t. Civil engineer Gordon England says public-private partnerships, done correctly, could improve the long-term maintenance of structures like dams and levees. Our interview this week is with Dave Briglio, P.E., senior water resources engineer with EA Engineering, Science & Technology Inc. in Hunt Valley, MD. Among his many other observations on the state of the infrastructure, he cautions against privatizing too much. His answers to Forester’s questions appear below.

Remember, next week is Infrastructure Week. Please join our Twitter Chat (#InfrastructureMatters) on May 18 from 11 a.m. to 12 p.m. PDT.

Stormwater (SW): Which infrastructure projects should be given priority? Roads and bridges? Dams and levees? Water supply? Electrical grid?

Dave Briglio (DB):

  • Roads and bridges near ports/multimodal facilities, especially rail crossings (for grade separation)
  • Water supply with regard to reducing groundwater withdrawal—reuse/zero-discharge for coastal regions with high populations and ag uses (e.g., Florida)
  • Water supply for upland areas with narrow/small watersheds relative to the demand (e.g., Atlanta region)—potential pump/storage facilities to take advantage of high runoff from rain
  • Water supply everywhere: general reuse (purple pipe) irrigation, gray water use for non-potable (commercial toilets)
  • Dams and levees need to be more prescriptive, based on risk. Buyouts of facilities at risk (when an owner is looking to sell, not eminent domain acquisition) may be a better option than perpetual infrastructure maintenance and replacement.

SW: Is there a solution to long-term infrastructure funding? Tying it to the economy will elevate the discussion to show the cost and benefits…

DB:

  • The interstate system and ports move the economy, including the virtual/digital/internet economy. Those electronic components don’t get to you from China over the web—they need to be driven.
  • The federal, state, and local funding support the entire private business industry.
  • Water is the same, even for private systems: They can’t just create their own systems and take what they want outside of a regional plan. The oldest laws on the books are for water rights.

SW: What kind of harm is the current state of our infrastructure doing to the economy and the community?

DB: Inefficiency—loss of revenue by the users (roads, water, etc.) and higher costs with less performance (by the municipal operations), which is tied to quality of life, both economically and service-wise (money could be used for schools, etc. too).

SW: What can various government entities—from local to federal—do to attract private sector support and investment?

DB:  Be clear on industry’s economic dependence on the infrastructure; the cost that they may avoid directly is indirectly impacting them (more tax costs lead to their customers having less to spend, and to their employees needing higher wages).

SW: Thank you, Dave.

About the Author

Janice Kaspersen

Janice Kaspersen is the former editor of Erosion Control and Stormwater magazines.