Over the last many weeks I have been doing some work around innovation especially as it relates to the infrastructure market and the engineering and construction industry. The list below represents some of the suggestions I might make to enhance infrastructure innovation.

1. Suggestions to Enhance Infrastructure Innovation
Bob Prieto
Chairman & CEO
Strategic Program Management LLC
Over the last many weeks I have been doing some work around innovation especially
as it relates to the infrastructure market and the engineering and construction industry.
The list below represents some of the suggestions I might make to enhance
infrastructure innovation. The administration might benefit from some of these
suggestions so they are offered both in that vein as well as continuing to call attention to
the need for our industry to undergo transformation.
I hope the dozen and a half thoughts listed below trigger some added thoughts and I
would be pleased to receive your ideas.
1. Create an Infrastructure Innovation Hub (IIH) where infrastructure project
developers, public and private (PPP), can engage with regulators to shape new
regulatory and project approaches, accelerating and improving required
infrastructure. The IIH provides a forum for informal discussion and collective
brainstorming.
2. Federal Infrastructure Regulatory Sandbox (FIRS) that provides a lighter,
experimental regulatory environment which allows new infrastructure concepts,

2. encompassing business model, process and design, to be tested while providing
the same protections as if the full regulatory process had been applied. In some
ways it is an upgraded and expanded version of DOT’s Special Experimental
Projects (SEP) program.
3. Create an industry sponsored intellectual property commons addressing cost
and benefit sharing as well as promoting cross-industry sharing of best practices
and lessons learned. This digital creative commons reflects the next generation’s
views and attitudes on information sharing.
4. Create a 10 year R&D tax bonus period for efforts related to life cycle cost
reduction and improvement in construction productivity – An example could be
$2 of tax deductions for every $1 spent
5. Establishing an industry and innovation focusing Grand Challenge. Such a
Grand Challenge could include reducing life cycle costs by 50% and putting in
place the skills, education and evaluation methods and metrics required.
6. In support of the Grand Challenge strengthening government sponsored,
industry focused R&D emphasizing life cycle cost reduction and project delivery
productivity while incentivizing commercialization.
7. Remove policy barriers to enhanced use of existing infrastructure systems.
Examples include:
a. Limitations on longitudinal utilities on interstate highway system right of
way
b. Limitations on tolling interstates
c. Ban on commercial rest areas on interstates
d. RCRA interpretations on public vs private ownership
8. Reducing or eliminating corporate taxes on private infrastructure to increase
affordability and stimulate private investment in needed infrastructure. This could
take many forms including reduced or eliminated corporate taxes; tax credits
(refundable or not); or a tax holiday.
9. Creating and requiring a common state of good repair covenant across both
municipal bond and other debt instruments used to finance long term
infrastructure capital investments.
10.Create common, multi-agency state or regional level infrastructure GIS
databases that are updated as infrastructure is rehabilitated or replaced. Provide
secure access to infrastructure developers and contractors.
11.Provide common interpretation and limitations across infrastructure types
independent of ownership. Examples include consistent tolling policy whether an
interstate or state road; RCRA interpretations of public vs private ownership; and
opening up the use of tax-exempt bonds for PPPs other than surface
transportation.
12.Shift infrastructure related taxes to a consumption basis avoiding double
taxation. An example would include a VMT federal tax on usage with credit for
miles traveled on a toll finance facility. Tolling technology will support such
mileage credits.

3. 13.Create a 10 year window suspending the OMB rule on grant repayment which
requires a facility that has received federal aid to repay the grant money if
privatized.
14.Create a regulated secondary market for infrastructure debt, based on
consistent debt standards and metrics.
15.Establish national performance standards for automated vehicles of all
kinds (car, truck, train) and require new infrastructure investments to take these
standards into consideration.
16.Increase the use of performance based contracting to encourage innovation.
17.Encourage standard setting organizations to migrate their standards towards life
cycle, performance based standards and set a time frame as a national
imperative.
18.Establish infrastructure Enterprise Asset Management standards and
reporting requirements for federally funded and critical infrastructure systems.
Establishment of a common industry baseline facilitates infrastructure rating and
support from the financial markets.