PA DOT Approves Public-Private Partnership for Natural Gas Stations

On Monday, Pennsylvania’s Public-Private Partnership (P3) Board approved a project seeking a private partner to develop CNG fueling stations at public transit agencies around the state that would also provide public access to the facilities. Through the project, the private partner will design, build, finance, operate and maintain CNG filling stations at up to 37 transit facilities. Each fueling site must provide access to CNG for public transit and other CNG vehicles. In addition, PennDOT will enter into a CNG supply contract with the selected partner as well as purchase agreements with each of the transit agencies. PennDOT would receive a portion of the fuel sales revenue, with the money being returned to transit agencies to assist with future capital projects. To kick off the project, PennDOT will release a Request for Qualifications to solicit interested parties and expects to invite qualified teams to submit proposals early next year. A project team could be selected in summer 2015.

In September 2012, Pennsylvania’s Governor Corbett signed into law the Public and Private Partnerships for Transportation Act, which authorized P3 projects in the state. This law allows PennDOT and other transportation authorities and commissions to partner with private companies to participate in delivering, maintaining and financing transportation-related projects. As part of the P3 law, the seven-member Public Private Transportation Partnership Board was appointed to examine and approve potential public-private transportation projects. If the board determines a state operation or project would be more cost-effectively administered or delivered by a private company, the department or appropriate transportation agency can advertise a competitive RFP and enter into a contract with a company to completely or partially deliver the transportation-related service or project.