[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3578 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 3578
To amend title 49, United States Code, to ensure the continuation of
fixed guideway system projects, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2003
Mr. Honda (for himself, Mrs. Tauscher, Mr. Case, Mr. Acevedo-Vila, Ms.
Lofgren, Mrs. Jones of Ohio, Mr. George Miller of California, Mr. Meeks
of New York, Ms. Eddie Bernice Johnson of Texas, Mr. Lewis of Georgia,
Mr. Blumenauer, and Mr. Abercrombie) introduced the following bill;
which was referred to the Committee on Transportation and
Infrastructure
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to ensure the continuation of
fixed guideway system projects, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``New Starts Enhancement and Local
Investment Promotion Act of 2003''.
SEC. 2. DETERMINATION OF PROJECT JUSTIFICATION CRITERIA FOR FIXED
GUIDEWAY PROJECTS.
Section 5309(e)(6) of title 49, United States Code, is amended--
(1) by striking ``A proposed project'' and inserting the
following:
``(A) In general.--A proposed project''; and
(2) by adding at the end the following:
``(B) Determination of cost effectiveness.--
``(i) In general.--For purposes of
paragraph (1)(B), the Secretary shall use the
new starts cost to determine the cost
effectiveness of a project.
``(ii) New starts cost defined.--In this
subparagraph, the term `new starts cost' means
the amounts allocated for the project from
amounts made available to carry out this
section.''.
SEC. 3. UNDERTAKING PROJECTS IN ADVANCE.
Section 5309(n) is amended by adding at the end the following:
``(4) If a State or local governmental authority agrees to provide
60 percent or more of the net cost of a project from non-Federal funds,
the Secretary, at the request of the State or local governmental
authority, shall waive the requirement of paragraph (1)(C) with respect
to the project, thereby allowing the State or local governmental
authority to carry out any pre-construction part of the project without
regard to whether the Secretary has approved in advance the plans and
specifications for that part. If a State or local governmental
authority requests a waiver for a project under this paragraph, the
agreed upon non-Federal share shall continue to apply through
completion of the project.''.
SEC. 4. DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION.
Section 182 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) paragraph (2) by adding at the end the
following: ``The application process for a new starts
project approved for a full funding grant agreement
under section 5309(g) of title 49, shall serve jointly
as an application for a secured loan, line of credit,
and loan guarantee under this subchapter.''; and
(B) in paragraph (3) by adding at the end the
following:
``(C) New starts projects.--In the case of a new
starts project approved for a full funding grant
agreement described in section 5309 of title 49,
eligible project costs shall be determined in
accordance with the allowable cost thresholds in such
section.''; and
(2) in subsection (b)(2)--
(A) subparagraph (A) by striking ``The selection
criteria'' and inserting the following: ``Except as
provided in subparagraph (B), the selection criteria'';
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following:
``(B) New starts projects.--Approval of a full
funding grant agreement for the new starts program
under section 5309 of title 49 shall constitute
eligibility for selection in this subsection subject to
confirmation of a preliminary rating opinion letter in
subparagraph (C).''
SEC. 5. LINES OF CREDIT.
Section 184 of title 23, United States Code, is amended--
(1) in subsection (a) by striking paragraph (2) and
inserting the following:
``(2) Use of proceeds.--
``(A) The proceeds of a line of credit made
available under this section shall be available to pay
eligible project costs, including debt service on
project obligations issued to finance eligible project
costs, extraordinary repair and replacement costs,
operation and maintenance expenses, and costs
associated with unexpected Federal or State
environmental restrictions.
``(B) For projects with an approved full funding
grant agreement under section 5309 of title 49 and a
non-Federal revenue share of at least 60 percent of the
project cost, the proceeds of a line of credit made
available under this section shall be available to pay
eligible project costs as defined in subparagraph (A)
and to provide liquidity for a variable rate
remarketing program.''; and
(2) in subsection (b)--
(A) by striking paragraphs (3) and (4) and
inserting the following:
``(3) Draws.--Any draw on the line of credit shall not
represent a guarantee of debt payment, but shall represent a
direct loan and shall be made and repaid only under the terms,
rate, and conditions as agreed to by the project sponsor and
Secretary.
``(4) Interest rate.--The interest rate on a direct loan
resulting from a draw on the line of credit shall be not less
than one of the following rates as selected by the obligor:
``(A) Fixed rate.--The fixed rate shall be the
yield on 30-year marketable United States Treasury
securities as of the date on which the line of credit
is obligated.
``(B) Variable rate.--The variable rate shall be
the yield on a 30-day Treasury bill auctioned for the
preceding 3-month period to be reset monthly on the
first business day of each month.'';
(B) by striking paragraph (6) and inserting the
following:
``(6) Period of availability.--
``(A) In general.--Except as provided in
subparagraph B, the line of credit shall be available
during the period beginning on the date of substantial
completion of the project, as determined by the project
sponsor, and ending not later than 10 years after that
date.
``(B) Availability.--For projects with an approved
full funding grant agreement under section 5309 of
title 49, the line of credit shall be available during
the period beginning on the date of approval of the
full funding grant agreement and ending not later than
10 years after the date of substantial completion of
the project.''; and
(C) by striking paragraph (9) and inserting the
following:
``(9) Fees.--The Secretary may establish fees at a level
sufficient to cover all or a portion of the costs to the
Government in providing a line of credit under this section.
Fees shall be waived for projects with an approved full funding
grant agreement under section 5309 of title 49.''.
SEC. 6. FUNDING.
Section 188(a) of title 23 is amended by inserting ``and section
5340 of title 49'' after ``this subchapter''.
SEC. 7. ASSURANCE OF EXISTING FULL FUNDING GRANT AGREEMENT.
Chapter 53 of title 49, United States Code, is amended--
(1) by redesignating section 5339 as section 5341; and
(2) by inserting after section 5338 the following:
``Sec. 5339. New starts full funding grant agreement authorizations
``(a) Purpose.--The purpose of this section is to ensure that
agreements made pursuant to section 5309(g) are honored in the annual
appropriations process.
``(b) General Authority.--In conjunction with the report required
each February under section 5309(o), the Secretary shall provide
information in such report regarding the project readiness and the
difference between the full funding grant agreement amount for a fiscal
year and the amount appropriated in the same year for such project.
``(c) Apportionments.--
``(1) In general.--Subject to section 5309, each new starts
project with a full funding grant agreement shall be funded
from amounts made available from the capital program grants and
loans under section 5338(b) for each of fiscal years 2004
through 2009 to carry out such project in accordance with the
annual schedule contained in each agreement.
``(2) Full funding grant agreements.--
``(A) Existing full funding grant agreement
projects.--The following is a list of existing projects
with full funding grant agreements:
``(i) Atlanta-North Springs Extension.
``(ii) Baltimore-Central LRT Double
Tracking.
``(iii) Boston-Piers-MOS-2 (So. Sta. to Wo.
Tr.).
``(iv) Chicago-Douglas Branch
Reconstruction.
``(v) Chicago-North Central Corridor
Commuter Rail.
``(vi) Chicago-Metra Southwest Corridor
Commuter Rail.
``(vii) Chicago-Union-Pacific West Line
Extension.
``(viii) Dallas-North Central LRT
Extension.
``(ix) Denver Southeast Corridor LRT.
``(x) Fort Lauderdale-Tri-Rail Commuter
Rail Upgrade.
``(xi) Los Angeles-North Hollywood.
``(xii) Memphis-Medical Center Extension.
``(xiii) Minneapolis-Hiawatha Corridor LRT.
``(xiv) New Jersey Urban Core-Hudson-Bergen
LRT.
``(xv) Newark Rail Link (MOS-1).
``(xvi) New Orleans-Canal Street
``(xvii) Northern New Jersey-Hudson-Berger
LRT MOS-2.
``(xviii) Pittsburgh-Stage II LRT
Reconstruction.
``(xix) Portland-Interstate MAX LRT
Extension.
``(xx) Salt Lake City-CBD to University
LRT.
``(xxi) Salt Lake City-Medical Center.
``(xxii) San Diego-Mission Valley East LRT
Extension.
``(xxiii) San Diego-Oceanside Escondido.
``(xxiv) San Francisco-BART Extension to
San Francisco Airport.
``(xxv) San Juan-Tren Urbano.
``(xxvi) St. Louis St. Clair MetroLink
Extension [Phase IIa].
``(xxvii) Washington DC/MD-Largo Metrorail
Extension.
``(B) Future full funding grant agreements.--The
provisions of paragraph (1) shall apply to all future
full funding grant agreements approved by the Secretary
of Transportation.
``(d) Failure to Comply.--If the Secretary determines that a
project delay is the result of a cause other than a delay in receipt of
funding per the full funding grant agreement payment schedule, this
section shall not apply.''.
``SEC. 5340. NEW STARTS PROJECT STABILITY LOAN PROGRAM.
``(a) Purpose.--The purpose of this section is to ensure that new
starts projects with an approved full funding grant agreement are held
financially harmless in the event that the annual Federal appropriation
falls short of the annual amounts identified in the full funding grant
agreement payment schedule.
``(b) General Authority.--
``(1) In general.--The Secretary of Transportation shall
make loans available to a new starts project sponsor in an
amount equal to the difference between the full funding grant
agreement amount for a fiscal year, and the amount appropriated
in the same year for such project if the amount appropriated is
lower than the full funding agreement amount for such year.
``(2) Except as provided in this paragraph, the secured
loan shall be made in accordance with section 183 of title 23.
``(A) Maximum amount.--The maximum amount of the
secured loan available to a new starts project sponsor
shall equal the amount of the difference between the
full funding grant agreement amount for a fiscal year
and the amount appropriated for a project in the same
year if the amount appropriated is lower than the full
funding agreement amount for such year.
``(B) Payment.--The secured loan shall be repaid by
the Federal Government through a subsequent
appropriation from the new starts program as authorized
in section 5338(b). Any interest expense paid shall not
be assigned to a specific new starts project, and
therefore, shall not result in any change to the full
funding grant agreement, schedule, or commitment under
section 5309.
``(C) Fees.--No fees shall be established or
charged for secured loans made subject to this section.
``(D) Repayment.--
``(i) Commencement.--Scheduled loan
repayments of principal or interest on a
secured loan under this section shall commence
with the next available appropriations of new
starts funding for the project.
``(ii) Sources of repayment of funds.--The
source of funds for scheduled loan repayments
under this section shall be new starts funding
as authorized under section 5338(b) of title 49
or other Federal funds as determined by the
Secretary.
``(3) For purposes of calculating the threshold of 33
percent of the eligible project cost under section 184(b)(10)
of title 23, any secured loans made pursuant to this section
shall be excluded.''.
SEC. 8. NEW STARTS AMENDMENTS.
(a) Grants as Contractual Obligations.--Section 5309 of title 49 is
amended--
(1) in subsection (g)(1)(D) by inserting before the period
the following: ``or as made available for grant agreements
under section 5339 and loans under section 5340'';
(2) in subsection (g)(2)(A)--
(A) in clause (iii) by striking ``and'' after the
semicolon;
(B) in clause (iv) by striking the period and
inserting a semicolon; and
(C) by adding at the end the following:
``(v) authorize a project sponsor as
eligible for a line of credit under subchapter
II of chapter 1 of title 23; and
``(vi) provide the maximum amount of
Government financial assistance for interest
expenses incurred through a new starts project
financial stability loan authorized under
section 5340.'';
(3) by striking subsection (g)(2)(B) and inserting the
following:
``(B)(i) An agreement under this paragraph
obligates an amount of available budget authority
specified in law and may include a commitment,
contingent on amounts to be specified in law in advance
for commitments under this paragraph, to obligate an
additional amount from future available budget
authority specified in law. The agreement shall state
that the contingent commitment is not an obligation of
the Government. Interest and other financing costs of
efficiently carrying out a part of the project within a
reasonable time are a cost of carrying out the project
under a full funding grant agreement, except that
eligible costs may not be more than the cost of the
most favorable financing terms reasonably available for
the project at the time of borrowing. The applicant
shall certify, in a manner satisfactory to the
Secretary of Transportation, that the applicant has
shown reasonable diligence in seeking the most
favorable financing terms. The amount stipulated in an
agreement under this paragraph for a fixed guideway
project shall be sufficient to complete at least an
operable segment.
``(ii) An amount equal to the difference between
the full funding grant agreement amount for a fiscal
year, and the amount appropriated in the same year if
the amount appropriated is lower than the full funding
agreement amount for such year, may be loaned to the
project sponsor through a new starts financial
stability loan authorized under section 5340. Interest
expenses associated with a new starts financial
stability loan shall--
``(I) shall be funded from amounts made
available under section 5338(b); and
``(II) not be assigned to a specific new
starts project for purposes of full funding
grant agreement calculations.''; and
(4) by striking subsection (k) and inserting the following:
``(k) Limitation on Making Loans and Grants for Projects.--Except
as provided under subchapter II of chapter 1 of title 23, the Secretary
of Transportation may not make a loan under this section for a project
for which a grant (except a relocation payment grant) is made under
this section. Notwithstanding the preceding sentence and subchapter II
of chapter 1 of title 23, the Secretary may make a project grant under
this section in a case in which real property for the project has been
or shall be acquired through a loan under subsection (b) of this
section.''.
SEC. 9. FIXED GUIDEWAY PROJECTS.
Section 5309(e) of title 49, United States Code, is amended by
adding at the end the following:
``(9) Prohibition on imposition of overall funding
limits.--The Secretary may not impose an overall limitation on
the amount of Government financial assistance that may be
expended for--
``(A) alternatives analysis and preliminary
engineering for a project under this subsection; or
``(B) a full funding grant agreement for a project
entered into under paragraph (7).''.
SEC. 10. DEFINITIONS.
Section 181 of title 23, United States Code, is amended--
(1) by redesignating paragraph (6) as paragraph (8);
(2) by redesignating paragraphs (3) through (5) as
paragraphs (4) through (6), respectively;
(3) by inserting after paragraph (6), as redesignated, the
following:
``(7) Liquidity.--The term `liquidity' means an agreement
by the Federal Government to provide a credit support
instrument that will provide for the potential purchase of any
variable or other short-term security issued in conjunction
with the financing plan that cannot be remarketed or resold
under the marketing or remarketing agreement signed by the
project sponsor. Any such draw or use of the liquidity shall
then constitute a secured loan to be repaid under terms
consistent with this section and approved by the Secretary.''.
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