Transportation & Jobs for America Project

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1 Webinar Transportation & Jobs for America Project April 10, 2013

2 Join the conversation on Twitter using hashtag #Transit4Jobs Los Angeles Alliance for a New Economy Program for Environmental & Regional Equity Living

3 Professor Manuel Pastor Program for Environmental & Regional Equity U.S.C. Madeline Janis, Esq. National Policy Director LAANE April 10, 2013 Webinar Living Cities TRANSPORTATION AND JOBS FOR AMERICA PROJECT

4 Goals of Project: 1. RESHAPE GOVERNMENT PROCUREMENT to ensure that public $$$ creates American factories, good jobs for disadvantaged communities & cleaner vehicles & to make procurement more transparent, efficient and effective 2. SUPPORT A RESPONSIBLE BUSINESS SECTOR to bring clean energy transit equipment manufacturing to the US 3. BUILD A COMMUNITY PROGRAM to organize for the creation of good jobs, factories in disadvantaged communities and access to those jobs by disadvantaged people

5 Why this project? Opportunity Reconnecting America s 2013 report found 721 proposed new fixed guideway transit projects in 109 regions Of these projects, 497 had cost estimates totaling $250 billion All of these purchases will include federal funds

6 Major Funded Transit Projects LA and Orange County $20 to $26 billion Baltimore Washington Metro area $11.3 billion Seattle $7.4 to $8.7 billion Philadelphia $7.2 billion Chicago $5.9 billion Denver $5.2 billion Atlanta $5 billion Twin Cities between $4 and $4.7 billion Dallas Ft. Worth $3.6 billion Houston $3 billion Boston $3 billion Phoenix $2.7 billion Amtrak & CA High-Speed Rail Authority $1.9 to $2.5 billion Miami $900 million Detroit $400 million

7 Major Funded Transit Projects NEW YORK and NEW JERSEY: $10.9 billion approved for transportation infrastructure rebuilding related to Sandy

8 Why this project?: Controversy

9 Miami

10 Why this project? Federal Rules:: Most equipment purchases include federal funds and if federal dollars touch the pot, federal rules apply Federal rules restrict an agency s ability to incorporate local jobs and economic development as part of a procurement o Geographic preferences are prohibited (49 CFR part 18, Section 18.36) o Federal rules restrict requirements that may be interpreted as inhibiting fair and open competition (49 CFR part 18, Section 18.36)

11 Why Isn't Buy America Enough? 60% US content, but high value production continues to leak overseas Bidders self-value vehicle component parts & systems: open secret w/in the industry that foreign-made parts are valued low No ability to incentivize good jobs, hiring of disadvantaged workers or workforce training

12 Model Transit Procurement Program U.S. Employment Plan, A Path Forward Purpose: to incentivize investments in good American jobs and domestic manufacturing using the US Employment Plan Background: US Employment Plan successfully piloted by LA Metro in a 2011 LRV and 2013 CNG bus purchase Expanded Model version submitted to US DOT December, 2012 for use nationally

13 Model Transit Procurement Overview of the US Employment Plan (USEP) Part 1: USEP Application Form Required as a matter of responsiveness Narrative application form Submittal requirements: o Recruitment & training plans o Workforce training plans o Description of jobs on the contract o Compensation & benefits o Commitment to assembly site o No minimum labor standards required

14 Model Transit Procurement Overview of the US Employment Plan Part 2: USEP Workbook Voluntary but must be completed to take advantage of Price Adjustment Monetized US Employment Plan submission Monetizes o Wages & benefits o Workforce training o Limited facilities investments o Disadvantaged Worker Credit o Calculates the voluntary Price Adjustment

15 GOAL #1 Finalize & win policy Launch additional pilots approved by DOT: Chicago, Maryland, Amtrak Win US DOT full legal approval of the model documents by September, 2013, Trainings with at least 10 major transit agencies Build momentum for model to be applied to major upcoming equipment purchases

16 Goal #2: Organize key stakeholder groups Public Sector Labor & Community Business Philanthropy

17 Goal #3: Build Long-Term Partnerships with 5-6 Manufacturers Research Industry Education Relationship Building

18 Goal # 4: Build Program (and demonstration) in 5-7 Major Regions TA program starting with Chicago & NY Grow funder and labor investment Build Regional Campaigns Maintain research, monitoring and evaluation capacity Develop communications Strategy

19 Transportation & Jobs for America Project QUESTIONS & ANSWERS

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