USC Faculty, Experts Discuss Infrastructure Strategies

August 3, 2009 3:13 PM

More than 160 leading experts - ranging from USC faculty to government officials and business executives - gathered at the Davidson Conference Center to address pressing infrastructure challenges facing the Southwest Megaregion, which encompasses Southern California as well as portions of Nevada and Northern Baja, Mexico.

The event, held on June 19, was part of an America 2050 forum sponsored by the Regional Plan Association, the USC Bedrosian Center on Governance and the Public Enterprise, and the USC Keston Institute for Infrastructure and Public Finance.

America 2050 is a national initiative focused on developing an investment strategy that will support sustainable growth and keep America competitive in the 21st century.

According to America 2050 director Petra Todorovich, the initiative was launched in response to key challenges facing the country, which include infrastructure shortages, over-dependence on foreign oil, a need to reduce carbon dioxide discharges, an expected population growth of 40 percent by 2050 and changing land use habits.

Todorovich noted that the emergence of megaregions - networks of adjoining metropolitan areas - may provide the “building blocks” for a national infrastructure plan. Since most megaregions spread across multiple states, they can serve as effective partners with the federal government in regard to goods movement and water infrastructure, she said.

Todorovich also explained that water, energy and transportation infrastructures are all interconnected. For example, population growth necessitates higher energy production and puts pressure on the water supply. However, energy production is a highly water-dependent process, and changes in the climate will further increase water demand.

Tom Sayles, USC vice president of Government and Community Relations, cited the need for infrastructure as the foundation for both growth and sustainability. He emphasized the importance of developing an infrastructure investment program for the region and the country.

Tim Brick, chairman of the Metropolitan Water District of Southern California, called for a national water policy. He said that water is distributed among 26 different federal agencies, with no one agency responsible for coordinating national policy. Given the seriousness of water in the future of the megaregion, a new framework needs to be created within the region that will carry the region for 50 years, he added.

California Sen. Alan Lowenthal (D-Long Beach) discussed passenger and goods movement via high-speed rail. Lowenthal, who chairs the state’s transportation and housing committee, advocated that the proposed train connect southern and northern locations via the San Joaquin Valley and be funded through public-private partnerships instead of local or state funds.

Neal Schmale, president and COO of Sempra Energy, asserted that raising money to build projects isn’t the region’s biggest problem, but rather, projects cannot get through the decision-making and permitting processes in a timely manner.

Finding Sustainable Solutions

Despite the severe problems in California, several panelists felt that this crisis presents significant opportunities.

One opportunity, according to John Kirlin, executive director of the Delta Vision Foundation, is for the state to have honest discourse about public finances — delving into important concerns such as discontinuing subsidies for inefficient use of resources and charging people for what they use.

Donald Paul, executive director of the USC Energy Institute and holder of the William M. Keck Chair in Energy Resources, added that he would push for revitalizing a system that enables the state to capitalize on intellectual advancements and convert them into growth industries because economic development is essential.

Mike Peevey, president of the California Public Utilities Commission, also noted that it seems unfair for the government to subsidize the coal, oil and gas industries over many years, but not solar industries. Kirlin agreed, saying subsidies hamper low-efficiency use.

The conference’s keynote speaker, John Fielder, president of Southern California Edison, explained that technology is essential to reducing carbon emissions. Fielder said that since wind and solar power are intermittent sources, there must be a system developed that complements intermittency. “If we can find a way to store electricity, it’s a game changer,” he said.

Paying for the Progress

Amid California’s history of budget struggles, one of the central themes of the conference was identifying long-term financing options for the state’s infrastructure projects.

Keston Institute director Richard Little, who served as moderator for the panel focusing on finance, noted that “bonds are not revenue and financing needs to be paid back.”

Paul Rosenstiel, principal of De La Rosa & Co. and former California deputy treasurer, said that public-private partnerships are viable options if they provide actual value. The partnerships must demonstrate an improvement over traditional delivery of infrastructure — better quality, lower cost and faster delivery, he said.

Moving Forward

Sunne Wright McPeak, president and CEO of the California Emerging Technologies Fund, who made closing remarks, noted that the new paradigm must have leadership to break through silos. According to McPeak, true public-private partnerships that are transparent, accountable and have regional collaboration are needed.

“Economy, environment and equity” should not come with political tradeoffs, she said.

TAGS: sustainability

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