1.This Act may be cited as the
Transportation Infrastructure Grants
and Economic Reinvestment Act
.
2.In this Act:
(1)The term eligible entity means—
(A)a State;
(B)a local
government;
(C)a transit agency;
and
(D)2 or more of the
entities described in subparagraphs (A) through (C), working in
collaboration.
(2)
(A)The term eligible project means a
transportation project that, as determined by the Secretary, would have a
significant beneficial impact on a State, a metropolitan area, a region, or the
United States.
(B)The
term eligible project includes—
(i)a
highway or bridge project eligible for funding under chapter 1 of title 23,
United States Code;
(ii)a
public transportation project eligible for funding under chapter 53 of title
49, United States Code;
(iii)a
passenger or freight rail transportation project; and
(iv)a port
infrastructure project.
(3)
(A)The term eligible project costs means costs
relating to an eligible project, such as the costs of—
(i)development phase
activities, including planning, feasibility analysis, revenue forecasting,
environmental review, permitting, preliminary engineering and design work, and
other preconstruction activities;
(ii)construction,
reconstruction, rehabilitation, replacement, and acquisition of real property
(including land related to the eligible project and improvements to land),
environmental mitigation, construction contingencies, and acquisition of
equipment; and
(iii)capitalized
interest necessary to meet market requirements, reasonably required reserve
funds, capital issuance expenses, and other carrying costs during
construction.
(B)The
term eligible project costs does not include the costs of dredging
activities.
(4)Federal credit
instrumentThe term Federal credit instrument means
a secured loan or loan guarantee authorized to be made available under this Act
with respect to an eligible project.
(5)The term investment-grade rating means a
rating of BBB minus, Baa3, bbb minus, BBB (low), or higher assigned by a rating
agency to project obligations.
(6)The
term lender means any non-Federal qualified institutional buyer
(as defined in section 230.144A(a) of title 17, Code of Federal Regulations (or
any successor regulation), known as Rule 144A(a) of the Securities and Exchange
Commission and issued under the Securities Act of 1933 (15 U.S.C. 77a et
seq.)), including—
(A)a qualified
retirement plan (as defined in section 4974(c) of the Internal Revenue Code of
1986) that is a qualified institutional buyer; and
(B)a governmental plan
(as defined in section 414(d) of the Internal Revenue Code of 1986) that is a
qualified institutional buyer.
(7)The term loan guarantee means any
guarantee or other pledge by the Secretary to pay all or part of the principal
of and interest on a loan or other debt obligation issued by an obligor and
funded by a lender.
(8)The
term obligor means a party primarily liable for payment of the
principal of or interest on a Federal credit instrument, which party may be a
corporation, partnership, joint venture, trust, or governmental entity, agency,
or instrumentality.
(9)The term project obligation means any
note, bond, debenture, or other debt obligation issued by an obligor in
connection with the financing of an eligible project, other than a Federal
credit instrument.
(10)The term rating agency means a credit rating
agency registered with the Securities and Exchange Commission as a nationally
recognized statistical rating organization (as defined in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
(11)The term rural area means any area not in an
urbanized area (as that term is defined by the Census Bureau).
(12)The
term Secretary means the Secretary of Transportation.
(13)The term secured loan means a direct loan or
other debt obligation issued by an obligor and funded by the Secretary in
connection with the financing of an eligible project.
(14)The
term State means—
(A)any of the 50
States; or
(B)the District of
Columbia.
(15)The term subsidy amount means the amount of
budget authority sufficient to cover the estimated long-term cost to the
Federal Government of a Federal credit instrument, calculated on a net present
value basis, excluding administrative costs and any incidental effects on
governmental receipts or outlays in accordance with the provisions of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
(16)The term substantial completion means the
opening of an eligible project to vehicular or passenger traffic.
3.National
infrastructure investment program
(a)Not later than 1 year after the date of
enactment of this Act, the Secretary shall by regulation establish a program
under which the Secretary shall provide grants, secured loans, and loan
guarantees on a competitive basis, to eligible entities for use in carrying out
eligible projects.
(b)
(1)Except
as provided in paragraph (5)(B)(i), a grant or secured loan provided under this
Act shall be in an amount that is not less than $10,000,000 and not greater
than $500,000,000.
(2)Geographical
distribution; balance; investmentIn providing grants and Federal
credit instruments under this Act, the Secretary shall take such measures as
are necessary to ensure, to the maximum extent practicable—
(A)an equitable
geographical distribution of funds;
(B)an appropriate
balance in addressing the needs of urban and rural areas; and
(C)investment in a
variety of transportation modes.
(3)Maximum
percentage per StateNot more than 25 percent of the amounts made
available to provide grants and Federal credit instruments under this Act for a
fiscal year may be provided for eligible projects in a State.
(4)
(A)Except as provided in paragraph (5)(B)(ii), the Federal
share of the cost of carrying out any eligible project funded by a grant or
secured loan under this Act shall be, at the option of the eligible entity
receiving the grant, up to 80 percent.
(B)In
providing grants and secured loans under this Act, the Secretary shall give
priority to eligible projects that require a contribution of Federal funds in
order to complete an overall financing package for the eligible
projects.
(5)Eligible
projects in rural areas
(A)Not less than 20 percent of the amounts made available to
provide grants under this Act for a fiscal year shall be provided for eligible
projects located in rural areas.
(B)Minimum grant
amount; Federal shareWith respect to an eligible project located
in a rural area—
(i)the
minimum amount of a grant or secured loan provided under this Act shall be
$1,000,000; and
(ii)the Secretary
may increase the Federal share of the cost of carrying out the eligible project
up to 100 percent.
(6)Set-asides for
certain costs, projects, and transfersOf the amounts made
available under this Act for a fiscal year, the Secretary may—
(A)use not more than
25 percent to pay the subsidy and administrative costs of secured loans and
loan guarantees for eligible projects;
(B)use an amount not
to exceed $20,000,000 for grants that pay for the planning, preparation, or
design of eligible projects; and
(C)use an amount not
to exceed $35,000,000 to fund the provision and oversight of grants under this
Act, including transfers of funds from that amount to the Administrators of the
Federal Highway Administration, the Federal Transit Administration, the Federal
Railroad Administration, and the Federal Maritime Administration to fund the
provision and oversight of grants under this Act for eligible projects under
the administrative jurisdiction of those agencies.
(c)Selection among
eligible projects
(1)The
Secretary shall establish criteria for use in selecting among eligible projects
to receive funding under this Act.
(2)
(A)Primary selection
criteriaThe Secretary shall select among eligible projects by
evaluating the extent to which an eligible project provides significant
benefits to a State, a metropolitan area, a region, or the United States,
including the extent to which an eligible project—
(i)improves the
safety of transportation facilities and systems;
(ii)improves the
condition of existing transportation facilities and systems;
(iii)contributes to
economic competitiveness over the medium- to long-term;
(iv)improves the
environment, improves energy efficiency, reduces dependence on oil, or reduces
greenhouse gas emissions; and
(v)improves access
to transportation facilities and systems.
(B)Secondary
selection criteriaIn addition to considering the primary
selection criteria described in subparagraph (A), the Secretary shall consider
the extent to which a project—
(i)uses innovative
strategies or technologies to pursue any of those primary selection criteria;
and
(ii)demonstrates
strong collaboration among a broad range of participants, or the integration of
transportation with other public service efforts.
(C)Federal credit
instrumentsIn selecting among eligible projects to receive
Federal credit instruments, the Secretary shall consider the creditworthiness
of each eligible project, including a determination by the Secretary that any
financing for the eligible project has appropriate security features, such as a
rate covenant, to ensure repayment.
(d)
(1)The Secretary shall require that each application for a
grant or Federal credit instrument under this Act include an analysis of
project benefits and costs.
(2)Federal credit
instrumentsFor purposes of subsection (c)(2)(C), the Secretary
shall require each eligible project applicant to provide a preliminary rating
opinion letter from at least 1 rating agency indicating that the senior project
obligations, which may be the Federal credit instrument, have the potential to
achieve an investment-grade rating.
(e)The following provisions of law shall apply to funds
made available under this Act and eligible projects carried out using those
funds:
(1)Subchapter IV of
chapter 31 of title 40, United States Code.
(2)Title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
(3)The National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(4)The Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42
U.S.C. 4601 et seq.).
(f)
(1)The Secretary shall include in any notice of funding
availability a full description of how applications will be evaluated against
all selection criteria.
(2)Consultations
on decisionsAfter provision of grants and credit assistance
under this Act for a fiscal year, the Secretary (or a designee) shall be
available to meet with any applicant, at a time and place that is mutually
acceptable to the Secretary and the applicant, to review the application of the
applicant.
4.Secured loans and loan guarantees
(a)
(1)Subject to paragraphs (2) and (3), the
Secretary may enter into arrangements with 1 or more obligors to make secured
loans, the proceeds of which shall be used to finance eligible project costs of
any eligible project selected to receive funding under this Act.
(2)Before entering into an agreement under this
subsection, the Secretary, in consultation with the Director of the Office of
Management and Budget and each rating agency providing a preliminary rating
opinion letter under section 3(d)(2), shall determine an appropriate capital
reserve subsidy amount for each secured loan, taking into account the
letter.
(3)Investment-grade
rating requirementThe execution of a secured loan under this Act
shall be contingent on the senior project obligations receiving an
investment-grade rating.
(b)
(1)A secured loan under this Act with respect to an eligible
project shall be on such terms and conditions and contain such covenants,
representations, warranties, and requirements (including requirements for
audits) as the Secretary determines appropriate.
(2)If a secured loan under this Act does not receive an
investment grade rating, the amount of the secured loan shall not exceed the
lesser of—
(A)80 percent of the
reasonably anticipated eligible project costs; and
(B)the amount of the
senior project obligations.
(3)The
secured loan—
(A)shall—
(i)be
payable, in whole or in part, from tolls, user fees, or other dedicated revenue
sources that also secure the senior project obligations; and
(ii)include a rate
covenant, coverage requirement, or similar security feature supporting the
project obligations; and
(B)may have a lien on
revenues described in subparagraph (A) subject to any lien securing project
obligations.
(4)The interest rate on the secured loan shall be not less than
the yield on United States Treasury securities of a similar maturity to the
maturity of the secured loan on the date of execution of the loan
agreement.
(5)The final maturity date of the secured loan shall be not
later than 35 years after the date of substantial completion of the eligible
project.
(6)The
secured loan shall not be subordinated to the claims of any holder of project
obligations in the event of bankruptcy, insolvency, or liquidation of the
obligor.
(7)The
Secretary may establish fees at a level sufficient to cover all or a portion of
the costs to the Federal Government of making a secured loan under this
Act.
(8)The proceeds of a secured loan under this Act may be used
to provide any non-Federal share of eligible project costs required under
chapter 1 of title 23, or chapter 53 of title 49, United States Code, if the
loan is repayable using non-Federal funds.
(c)
(1)The
Secretary shall establish a repayment schedule for each secured loan under this
Act based on the projected cash flow from eligible project revenues and other
repayment sources.
(2)Scheduled
loan repayments of principal or interest on a secured loan under this Act shall
commence not later than 5 years after the date of substantial completion of the
eligible project.
(3)
(A)If,
at any time after the date of substantial completion of the eligible project,
the eligible project is unable to generate sufficient revenues to pay the
scheduled loan repayments of principal and interest on the secured loan, the
Secretary may, subject to subparagraph (C), allow the obligor to add unpaid
principal and interest to the outstanding balance of the secured loan.
(B)Any
payment deferred under subparagraph (A) shall—
(i)continue to accrue
interest in accordance with subsection (b)(4) until fully repaid; and
(ii)be
scheduled to be amortized over the remaining term of the loan.
(C)
(i)Any payment deferral under subparagraph (A) shall be
contingent on the eligible project meeting criteria established by the
Secretary.
(ii)The criteria established under clause (i) shall include
standards for reasonable assurance of repayment.
(4)
(A)Any excess revenues that remain after satisfying
scheduled debt service requirements on the project obligations and secured loan
and all deposit requirements under the terms of any trust agreement, bond
resolution, or similar agreement securing project obligations may be applied
annually to prepay the secured loan without penalty.
(B)Use of proceeds
of refinancingThe secured loan may be prepaid at any time
without penalty from the proceeds of refinancing from non-Federal funding
sources.
(d)
(1)Subject to paragraph (2), as soon as practicable after
substantial completion of an eligible project and after notifying the obligor,
the Secretary may sell to another entity or reoffer into the capital markets a
secured loan for the eligible project if the Secretary determines that the sale
or reoffering can be made on favorable terms.
(2)In making a sale or reoffering a secured loan under
paragraph (1), the Secretary may not change the original terms and conditions
of the secured loan without the written consent of the obligor.
(e)
(1)The Secretary may provide a loan guarantee to a lender in
lieu of making a secured loan if the Secretary determines that the budgetary
cost of the loan guarantee is substantially the same as that of a secured
loan.
(2)The
terms of a guaranteed loan shall be consistent with the terms that apply to a
secured loan under this Act, except that the rate on the guaranteed loan and
any prepayment features shall be negotiated between the obligor and the lender,
with the consent of the Secretary.
(f)Administration of
Federal credit instruments
(1)The Secretary shall establish a uniform system to service
the Federal credit instruments made available under this Act.
(2)The
Secretary may collect and spend fees, contingent upon authority being provided
in appropriations Acts, at a level that is sufficient to cover—
(A)the costs of
services of expert firms retained pursuant to paragraph (4); and
(B)all or a portion of
the costs to the Federal Government of servicing the Federal credit instruments
under this Act.
(3)
(A)The Secretary may appoint a financial entity to assist
the Secretary in servicing Federal credit instruments under this Act.
(B)The
servicer shall act as the agent for the Secretary.
(C)The
servicer shall receive a servicing fee, subject to approval by the
Secretary.
(4)Assistance from
expert firmsThe Secretary may retain the services of expert
firms, including counsel, in the field of municipal and project finance, to
assist in the underwriting and servicing of Federal credit instruments.
5.Financial assistance under this Act with
respect to an eligible project shall not—
(1)relieve any
recipient of the assistance of any obligation to obtain any required State or
local permit or approval with respect to the eligible project;
(2)limit the right of
any unit of State or local government to approve or regulate any rate of return
on private equity invested in the eligible project; or
(3)otherwise supersede
any State or local law (including any regulation) applicable to the
construction or operation of the eligible project.
6.Authorization of
appropriationsThere are
authorized to be appropriated to carry out this Act such sums as are necessary
for each of fiscal years 2012 through 2018.