Public-Private Partnerships (P3)

State law predominantly relies on a design-bid-build (DBB) project delivery method to design and build infrastructure projects. Often referred to as a "traditional" delivery method, the majority of Caltrans’ projects are delivered using DBB, where the public sector retains the majority of the risk for design, permitting, and right of way. Project delivery methods that transfer certain responsibilities for project delivery from the public sector to the private sector include design-build, construction manager/general contractor (CM/GC), and Public-Private Partnership (P3). Existing law permits Caltrans to use these innovative project delivery methods on a limited basis to deliver construction projects, as discussed below.

In February 2009, Governor Schwarzenegger approved Senate Bill 4 Second Extraordinary Session (SBX2 4 (PDF)) Chapter 2, Statutes of 2009 (Cogdill) which established legislative authority, until January 1, 2017, allowing Caltrans and regional transportation agencies to enter into comprehensive development lease agreements with public or private entities for transportation projects, commonly known as public-private partnership (P3) agreements. The California Legislative Authority (Section 143 of Streets and Highways Code) for P3 projects expired on January 1, 2017.

On May 19, 2006, Governor Schwarzenegger approved and was effective January 1, 2007, Assembly Bill (AB) 1467 (PDF) (Nunez) Chapter 32, Statutes of 2006, authorized Caltrans and regional transportation agencies to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities for certain types of transportation projects.

On September 28, 2006, Governor Schwarzenegger approved AB 521 (PDF) (Runner) Chapter 542, Statutes of 2006, which modified provisions in AB 1467 (PDF) to instead provide that the California State Legislature has 60 legislative days to act after submittal of a Public-Private Partnerships (PPP) negotiated lease agreement.

On July 10, 1989, Governor Wilson approved AB 680 (Baker) Chapter 107, Statutes of 1989 which authorized the department to enter into agreements with private entities for the construction by, and lease to, private entities of four transportation demonstration projects, including at least one in northern California and one in southern California.

Contact Information

Timothy Sobelman
Chief Engineer 
California Transportation Commission
Phone: (916) 825-6674