Public-Private Partnerships at POEs Spring 2014 Transportation Border Working Group 1

2 Funding Challenges & Opportunities Pre-FY 2014 Authorities & Recent/Current Application New FY 2014 Authorities High-Level Implementation & Expectations Path Forward Questions PPPs at POEs Agenda

3 As a node within the larger cross-border transportation network, CBP’s 121 Northern Border Land Ports of Entry are a vital component to facilitating safe and efficient bi-national trade and travel between the United States and Canada However, the resources required to operate effectively within this cross-border transportation network have far outpaced traditional budget availability To address these on-going and anticipated funding challenges, CBP and GSA have committed to strengthening our collective legislative and programmatic capacity to leverage alternative sources of funding for border infrastructure improvements and inspectional service enhancements CBP and GSA have made considerable progress towards exploring and successfully engaging in alternative funding opportunities using its current mix of legislative authorities and under development program framework PPPs at POEs Funding Challenges & Opportunities

4 AuthorityHigh-Level DescriptionExamples User Fee Authority Enables the Secretary of the Treasury to collect fees to fund the cost of CBP inspectional services Tijuana Cross Border Terminal CBP Reimbursable Services Authority Enables CBP to enter into reimbursable service agreements for the provision of CBP inspectional services 5 reimbursable service agreements signed along the U.S. southern border in FY 2013 Application period to reopen FY 2014 (April 1 st ) GSA Gift & Donation Acceptance Authorities Enables GSA to accept unconditional gifts of property and donations of interest in land Brownsville, TX pedestrian canopy improvements GSA-Leased Environment Opportunities Lessor authorized to fund and implement infrastructure improvements assuming the costs of these improvements are not amortized into the lease Blue Water Bridge, MI stacked/staggered booth installation Peace Bridge, NY commercial warehouse renovation and expansion PPPs at POEs Pre-FY 2014 Authorities & Recent/Current Application

5 To enhance its legislative capacity to engage in alternative funding opportunities, CBP crafted, refined and advocated for new authorities in FY 2014 that authorize CBP and GSA to enter into partnerships for reimbursable services and to accept donations Section 559 is a two-part provision that expands on CBP’s pre-existing Section 560 Reimbursable Services Authority while providing CBP and GSA with new Donation Acceptance Authorities to accept donations of real property, personal property, and non-personal services from private sector and Government entities Accepted donations may be used for necessary activities related to the construction, alteration, operations, or maintenance of a new or existing POE to include land acquisition, design, and the deployment of CBP equipment and technologies Requires that CBP and GSA establish procedures for evaluating donation proposals and make any such evaluation criteria available to the public within 180 days of enactment PPPs at POEs New FY 2014 Authorities

6 CBP and GSA are coordinating closely to meet our Congressional deadline for making donation proposal evaluation criteria available to the public by July 16, 2014 Public release of these evaluation criteria will likely coincide with a program launch announcement to include procedures for submitting proposals, timing expectations, next steps, etc. There is no requirement for who may submit a proposal or what that proposal may entail; however, each proposal will be evaluated first and foremost for its operational merit in addition to other factors including but not limited to environmental impact, technical feasibility, financial feasibility, etc. While a positive step towards enhancing partnership opportunities along the border; all pre-existing funding, staffing, leasing, and other POE infrastructure-related constraints will continue to apply when determining whether or not to accept a proposed donation PPPs at POEs High-Level Implementation & Expectations

7 CBP and GSA’s goal is to become smarter, more effective, and more deliberate in how leverage outside resources for border infrastructure improvements and inspectional service enhancements In working towards that goal, CBP and GSA’s are committed to: Meeting its Congressional deadline for establishing Section 559 Donation Acceptance Authority evaluation criteria and procedures Establishing a broader framework for systematically reviewing, evaluating, selecting, negotiating and developing 559-related proposals and other alternative funding opportunities Becoming proficient in its usage of existing legislative authorities and educating itself on the applicability of other related programs and mechanisms to include the debt financing and credit assistance tools that USDOT leverages for transportation infrastructure improvements Capitalizing on the TBWG and other similar venues to continue its recurring dialogue of alternative funding opportunities with border stakeholders PPPs at POEs Path Forward

8 PPPs at POEs Questions