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Missouri Blue Ribbon Panel on Hyperloop

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Missouri Blue Ribbon Panel on Hyperloop Chairman Lt. Governor Mike Kehoe Vice Chairman Andrew G. Smith Panelists Jeff Aboussie Cathy Bennett Tom Blair Travis Brown Mun Choi Tom Dempsey Rob Dixon Warren Erdman Rep. Travis Fitzwater Michael X. Gallagher Rep. Derek Grier Chris Gutierrez Rhonda Hamm-Niebruegge Mike Lally Mary Lamie Elizabeth Loboa Sen. Tony Luetkemeyer MISSOURI BLUE RIBBON Patrick McKenna Dan Mehan Joe Reagan Clint Robinson PANEL ON HYPERLOOP Sen. Caleb Rowden Greg Steinhoff Report prepared for The Honorable Elijah Haahr Tariq Taherbhai Leonard Toenjes Speaker of the Missouri House of Representatives Bill Turpin Austin Walker Ryan Weber Sen. Brian Williams Contents Introduction ................................................................................................................................................ 3 Executive Summary .................................................................................................................................... 5 A National Certification Track in Missouri .................................................................................................. 8 Track Specifications .............................................................................................................................. 10 SECTION 1: International Tube Transport Center of Excellence (ITTCE) ..................................... 12 Center Objectives .............................................................................................................................. 12 Research Areas .................................................................................................................................. 13 Academic Partners ............................................................................................................................ 14 Center Structure and Governance .................................................................................................... 21 SECTION 2: Regulation and Legislation ......................................................................................... 23 Missouri’s Public-Private Partnerships (P3) Statute .......................................................................... 23 Lack of Federal Regulatory Regime ................................................................................................... 24 State Sponsor ..................................................................................................................................... 24 Access to Highway Right-of-Way for Construction and Operation of Tubed Transportation System 25 Environmental Impact ....................................................................................................................... 26 A Regulatory Roadmap ...................................................................................................................... 27 International Collaboration ............................................................................................................... 32 SECTION 3: Funding and Financing ........................................................................................................ 33 Overview ............................................................................................................................................ 33 SECTION 4: Recommended Approach to Funding, Financing, and Delivery .......................................... 34 The BRP Approach to Developing these Recommendations ............................................................. 35 Developed Key Assumptions ............................................................................................................. 35 Recommendation #1 ......................................................................................................................... 37 Recommendation #2 ......................................................................................................................... 41 Recommendation #3 ......................................................................................................................... 42 SECTION 4: Economic Impact and Cost Benefit Analysis ................................................................... 44 Business Efficiencies and Clustering Impacts ......................................................................................... 47 Positive Impacts of Cluster Input Sharing .............................................................................................. 49 Positive Impacts of Combined Labor Market Pooling ............................................................................ 57 Positive Impacts of Knowledge Spillover ............................................................................................... 58 1 Potential Early Adaptor Advantage Impacts .......................................................................................... 59 Positioning Missouri as the Logistics Hub for the Midwest and Beyond ............................................... 60 Positioning Missouri as a Technology and Innovation Leader ............................................................... 61 Potential Financial Benefit - Considerations and Estimates .................................................................. 63 Estimated Hyperloop Construction Impacts .......................................................................................... 64 Estimated Hyperloop Operations Impacts ............................................................................................. 66 Estimated Tourism Impacts ................................................................................................................... 68 Potential Productivity Benefits .............................................................................................................. 71 Potential Reduction in Highway Accident Impacts ................................................................................ 71 Potential Highway Repair Impacts ......................................................................................................... 74 Potential Reduced Emissions Impacts ................................................................................................... 76 Potential Health Spending Benefits ....................................................................................................... 76 Potential Energy Security Benefits ........................................................................................................ 78 Potential Freight Benefits ...................................................................................................................... 79 Potential Tax Benefits from Transit-Oriented Development ................................................................. 80 Conclusions ................................................................................................................................................ 81 Appendix A - Methodology Section ........................................................................................................... 82 Cluster Methodology ............................................................................................................................. 82 Methodology for Economic Impact Calculations ................................................................................... 82 Sources: ............................................................................................................................................... 135 Appendix B – The Missouri Hyperloop Project’s Benefits, Impacts, Opportunity Costs and Risks .......... 139 The Missouri Hyperloop Project’s Benefits and Impact ...................................................................... 139 The Missouri Hyperloop Project: Opportunity Cost ........................................................................... 140 The Missouri Hyperloop Project: The Risks ......................................................................................... 141 Appendix B -- Concept for the Missouri Hyperloop Corporation ............................................................ 142 Mission ................................................................................................................................................ 142 Vision ................................................................................................................................................... 142 Values .................................................................................................................................................. 143 Appendix C - Potential Funding and Financing Sources ......................................................................... 145 Appendix D: Blue Ribbon Panel Members ............................................................................................... 151 2 Introduction On March 12, 2019, Missouri House Speaker Elijah Haahr announced the formation of a special Blue Ribbon Panel on Hyperloop (BRPH). The BRPH, chaired by Lieutenant Governor Mike Kehoe, was tasked with presenting a report detailing specific steps that would enable Missouri to become “the global epicenter for the research, development, and commercialization” of tubed transport technology. Specifically, the Blue Ribbon Panel was asked to focus on two primary objectives: • Determine how to establish Missouri as the global epicenter for research and development of this technology, which would significantly benefit our higher education, logistics,
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