§ 601. Generally applicable provisions

• (a) The following definitions apply to sections 601 through 609:
  • (1) The term “contingent commitment” means a commitment to obligate an amount from future available budget authority that is—
    • (A) contingent on those funds being made available in law at a future date; and
    • (B) not an obligation of the Federal Government.
  • (2) The term “eligible project costs” means amounts substantially all of which are paid by, or for the account of, an obligor in connection with a project, including the cost of—
    • (A) development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;
    • (B) construction, reconstruction, rehabilitation, replacement, and acquisition of real property (including land relating to the project and improvements to land), environmental mitigation, construction contingencies, and acquisition of equipment;
    • (C) capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction; and
    • (D) capitalizing a rural projects fund.
  • (3) The term “Federal credit instrument” means a secured loan, loan guarantee, or line of credit authorized to be made available under the TIFIA program with respect to a project.
  • (4) 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.
  • (5) 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.
  • (6) The term “letter of interest” means a letter submitted by a potential applicant prior to an application for credit assistance in a format prescribed by the Secretary on the website of the TIFIA program that—
    • (A) describes the project and the location, purpose, and cost of the project;
    • (B) outlines the proposed financial plan, including the requested credit assistance and the proposed obligor;
    • (C) provides a status of environmental review; and
    • (D) provides information regarding satisfaction of other eligibility requirements of the TIFIA program.
  • (7) The term “line of credit” means an agreement entered into by the Secretary with an obligor under section 604 to provide a direct loan at a future date upon the occurrence of certain events.
  • (8) The term “limited buydown” means, subject to the conditions described in section 603(b)(4)(C), a buydown of the interest rate by the obligor if the interest rate has increased between—
    • (A)
      • (i) the date on which a project application acceptable to the Secretary is submitted; or
      • (ii) the date on which the Secretary entered into a master credit agreement; and
    • (B) the date on which the Secretary executes the Federal credit instrument.
  • (9) 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.
  • (10) The term “master credit agreement” means a conditional agreement to extend credit assistance for a program of related projects secured by a common security pledge covered under section 602(b)(2)(A) or for a single project covered under section 602(b)(2)(B) that does not provide for a current obligation of Federal funds, and that would—
    • (A) make contingent commitments of 1 or more secured loans or other Federal credit instruments at future dates, subject to—
      • (i) the availability of future funds being made available to carry out the TIFIA program; and
      • (ii) the satisfaction of all of the conditions for the provision of credit assistance under the TIFIA program, including section 603(b)(1);
    • (B) establish the maximum amounts and general terms and conditions of the secured loans or other Federal credit instruments;
    • (C) identify the 1 or more dedicated non-Federal revenue sources that will secure the repayment of the secured loans or secured Federal credit instruments;
    • (D) provide for the obligation of funds for the secured loans or secured Federal credit instruments after all requirements have been met for the projects subject to the master credit agreement, including—
      • (i) completion of an environmental impact statement or similar analysis required under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq.);
      • (ii) receiving an investment grade rating from a rating agency;
      • (iii) compliance with such other requirements as are specified under the TIFIA program, including sections 602(c) and 603(b)(1); and
      • (iv) the availability of funds to carry out the TIFIA program; and
    • (E) require that contingent commitments result in a financial close and obligation of credit assistance not later than 3 years after the date of entry into the master credit agreement, or release of the commitment, unless otherwise extended by the Secretary.
  • (11) The term “obligor” means a party that—
    • (A) is primarily liable for payment of the principal of or interest on a Federal credit instrument; and
    • (B) may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or instrumentality.
  • (12) The term “project” means—
    • (A) any surface transportation project eligible for Federal assistance under this title or chapter 53 of title 49;
    • (B) a project for an international bridge or tunnel for which an international entity authorized under Federal or State law is responsible;
    • (C) a project for intercity passenger bus or rail facilities and vehicles, including facilities and vehicles owned by the National Railroad Passenger Corporation and components of magnetic levitation transportation systems;
    • (D) a project that—
      • (i) is a project—
        • (I) for a public freight rail facility or a private facility providing public benefit for highway users by way of direct freight interchange between highway and rail carriers;
        • (II) for an intermodal freight transfer facility;
        • (III) for a means of access to a facility described in subclause (I) or (II);
        • (IV) for a service improvement for a facility described in subclause (I) or (II) (including a capital investment for an intelligent transportation system); or
        • (V) that comprises a series of projects described in subclauses (I) through (IV) with the common objective of improving the flow of goods;
      • (ii) may involve the combining of private and public sector funds, including investment of public funds in private sector facility improvements;
      • (iii) if located within the boundaries of a port terminal, includes only such surface transportation infrastructure modifications as are necessary to facilitate direct intermodal interchange, transfer, and access into and out of the port; and
      • (iv) is composed of related highway, surface transportation, transit, rail, or intermodal capital improvement projects eligible for assistance under this section in order to meet the eligible project cost threshold under section 602, by grouping related projects together for that purpose, subject to the condition that the credit assistance for the projects is secured by a common pledge;
    • (E) a project to improve or construct public infrastructure that is located within walking distance of, and accessible to, a fixed guideway transit facility, passenger rail station, intercity bus station, or intermodal facility, including a transportation, public utility, or capital project described in section 5302(3)(G)(v) of title 49 , and related infrastructure; and
    • (F) the capitalization of a rural projects fund.
  • (13) The term “project obligation” means any note, bond, debenture, or other debt obligation issued by an obligor in connection with the financing of a project, other than a Federal credit instrument.
  • (14) The term “rating agency” means a credit rating agency registered with the Securities and Exchange Commission as a nationally recognized statistical rating organization (as that term is defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )).
  • (15) The term “rural infrastructure project” means a surface transportation infrastructure project located in an area that is outside of an urbanized area with a population greater than 150,000 individuals, as determined by the Bureau of the Census.
  • (16) The term “rural projects fund” means a fund—
    • (A) established by a State infrastructure bank in accordance with section 610(d)(4);
    • (B) capitalized with the proceeds of a secured loan made to the bank in accordance with sections 602 and 603; and
    • (C) for the purpose of making loans to sponsors of rural infrastructure projects in accordance with section 610.
  • (17) 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 a project under section 603.
  • (18) The term “State” has the meaning given the term in section 101.
  • (19) The term “State infrastructure bank” means an infrastructure bank established under section 610.
  • (20) 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—
    • (A) calculated on a net present value basis; and
    • (B) excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq.).
  • (21) The term “substantial completion” means—
    • (A) the opening of a project to vehicular or passenger traffic; or
    • (B) a comparable event, as determined by the Secretary and specified in the credit agreement.
  • (22) The term “TIFIA program” means the transportation infrastructure finance and innovation program of the Department established under sections 602 through 609.
• (b) For purposes of this title, this chapter shall be treated as being part of chapter 1.

§ 602. Determination of eligibility and project selection

• (a)
  • (1) A project shall be eligible to receive credit assistance under the TIFIA program if—
    • (A) the entity proposing to carry out the project submits a letter of interest prior to submission of a formal application for the project; and
    • (B) the project meets the criteria described in this subsection.
  • (2)
    • (A) To be eligible for assistance under the TIFIA program, a project shall satisfy applicable creditworthiness standards, which, at a minimum, shall include—
      • (i) a rate covenant, if applicable;
      • (ii) adequate coverage requirements to ensure repayment;
      • (iii) an investment grade rating from at least 2 rating agencies on debt senior to the Federal credit instrument; and
      • (iv) a rating from at least 2 rating agencies on the Federal credit instrument, subject to the condition that, with respect to clause (iii), if the total amount of the senior debt and the Federal credit instrument is less than $75,000,000, 1 rating agency opinion for each of the senior debt and Federal credit instrument shall be sufficient.
    • (B) Notwithstanding subparagraph (A), in a case in which the Federal credit instrument is the senior debt, the Federal credit instrument shall be required to receive an investment grade rating from at least 2 rating agencies, unless the credit instrument is for an amount less than $75,000,000, in which case 1 rating agency opinion shall be sufficient.
  • (3) A project shall satisfy the applicable planning and programming requirements of sections 134 and 135 at such time as an agreement to make available a Federal credit instrument is entered into under the TIFIA program.
  • (4) A State, local government, public authority, public-private partnership, or any other legal entity undertaking the project and authorized by the Secretary shall submit a project application that is acceptable to the Secretary.
  • (5)
    • (A) Except as provided in subparagraph (B), a project under the TIFIA program shall have eligible project costs that are reasonably anticipated to equal or exceed the lesser of—
      • (i) $50,000,000; and
      • (ii) 33⅓ percent of the amount of Federal highway funds apportioned for the most recently completed fiscal year to the State in which the project is located.
    • (B)
      • (i) In the case of a project principally involving the installation of an intelligent transportation system, eligible project costs shall be reasonably anticipated to equal or exceed $15,000,000.
      • (ii) In the case of a project described in section 601(a)(12)(E), eligible project costs shall be reasonably anticipated to equal or exceed $10,000,000.
      • (iii) In the case of a rural infrastructure project or a project capitalizing a rural projects fund, eligible project costs shall be reasonably anticipated to equal or exceed $10,000,000, but not to exceed $100,000,000.
      • (iv) Eligible project costs shall be reasonably anticipated to equal or exceed $10,000,000 in the case of a project or program of projects—
        • (I) in which the applicant is a local government, public authority, or instrumentality of local government;
        • (II) located on a facility owned by a local government; or
        • (III) for which the Secretary determines that a local government is substantially involved in the development of the project.
  • (6) The applicable Federal credit instrument shall be repayable, in whole or in part, from—
    • (A) tolls;
    • (B) user fees;
    • (C) payments owing to the obligor under a public-private partnership; or
    • (D) other dedicated revenue sources that also secure or fund the project obligations.
  • (7) In the case of a project that is undertaken by an entity that is not a State or local government or an agency or instrumentality of a State or local government, the project that the entity is undertaking shall be publicly sponsored as provided in paragraph (3).
  • (8) A State, local government, agency or instrumentality of a State or local government, or public authority may submit to the Secretary an application under paragraph (4), under which a private party to a public-private partnership will be—
    • (A) the obligor; and
    • (B) identified later through completion of a procurement and selection of the private party.
  • (9) The Secretary shall determine that financial assistance for the project under the TIFIA program will—
    • (A) foster, if appropriate, partnerships that attract public and private investment for the project;
    • (B) enable the project to proceed at an earlier date than the project would otherwise be able to proceed or reduce the lifecycle costs (including debt service costs) of the project; and
    • (C) reduce the contribution of Federal grant assistance for the project.
  • (10)
    • (A) Except as provided in subparagraph (B), to be eligible for assistance under the TIFIA program, the applicant shall demonstrate a reasonable expectation that the contracting process for construction of the project can commence by no later than 90 days after the date on which a Federal credit instrument is obligated for the project under the TIFIA program.
    • (B) In the case of a project capitalizing a rural projects fund, the State infrastructure bank shall demonstrate, not later than 2 years after the date on which a secured loan is obligated for the project under the TIFIA program, that the bank has executed a loan agreement with a borrower for a rural infrastructure project in accordance with section 610. After the demonstration is made, the bank may draw upon the secured loan. At the end of the 2-year period, to the extent the bank has not used the loan commitment, the Secretary may extend the term of the loan or withdraw the loan commitment.
• (b)
  • (1) The Secretary shall establish a rolling application process under which projects that are eligible to receive credit assistance under subsection (a) shall receive credit assistance on terms acceptable to the Secretary, if adequate funds are available to cover the subsidy costs associated with the Federal credit instrument.
  • (2)
    • (A) The Secretary may enter into a master credit agreement for a program of related projects secured by a common security pledge on terms acceptable to the Secretary.
    • (B) If the Secretary fully obligates funding to eligible projects for a fiscal year and adequate funding is not available to fund a credit instrument, a project sponsor of an eligible project may elect to enter into a master credit agreement and wait to execute a credit instrument until the fiscal year for which additional funds are available to receive credit assistance.
  • (3) The Secretary shall require each project applicant to provide a preliminary rating opinion letter from at least 1 rating agency—
    • (A) indicating that the senior obligations of the project, which may be the Federal credit instrument, have the potential to achieve an investment-grade rating; and
    • (B) including a preliminary rating opinion on the Federal credit instrument.
• (c)
  • (1) In addition to the requirements of this title for highway projects, the requirements of chapter 53 of title 49 for transit projects, and the requirements of section 5333(a) of title 49 for rail projects, the following provisions of law shall apply to funds made available under the TIFIA program and projects assisted with those funds:
    • (A) Title VI of the Civil Rights Act of 1964 ( 42 U.S.C. 2000d et seq.).
    • (B) The National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq.).
    • (C) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ( 42 U.S.C. 4601 et seq.).
  • (2) No funding shall be obligated for a project that has not received an environmental categorical exclusion, a finding of no significant impact, or a record of decision under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq.).
• (d)
  • (1) Not later than 30 days after the date of receipt of an application under this section, the Secretary shall provide to the applicant a written notice to inform the applicant whether—
    • (A) the application is complete; or
    • (B) additional information or materials are needed to complete the application.
  • (2) Not later than 60 days after the date of issuance of the written notice under paragraph (1), the Secretary shall provide to the applicant a written notice informing the applicant whether the Secretary has approved or disapproved the application.
• (e) Any credit instrument secured under the TIFIA program may be used to finance up to 100 percent of the cost of development phase activities as described in section 601(a)(1)(A).

§ 603. Secured loans

• (a)
  • (1) Subject to paragraphs (2) and (3), the Secretary may enter into agreements with 1 or more obligors to make secured loans, the proceeds of which shall be used—
    • (A) to finance eligible project costs of any project selected under section 602;
    • (B) to refinance interim construction financing of eligible project costs of any project selected under section 602;
    • (C) to refinance existing Federal credit instruments for rural infrastructure projects; or
    • (D) to refinance long-term project obligations or Federal credit instruments, if the refinancing provides additional funding capacity for the completion, enhancement, or expansion of any project that—
      • (i) is selected under section 602; or
      • (ii) otherwise meets the requirements of section 602.
  • (2) A loan under paragraph (1) shall not refinance interim construction financing under paragraph (1)(B)—
    • (A) if the maturity of such interim construction financing is later than 1 year after the substantial completion of the project; and
    • (B) later than 1 year after the date of substantial completion of the project.
  • (3) Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for each secured loan, taking into account each rating letter provided by an agency under section 602(b)(3)(B).
• (b)
  • (1) A secured loan under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines to be appropriate.
  • (2)
    • (A) Except as provided in subparagraph (B), the amount of a secured loan under this section shall not exceed the lesser of 49 percent of the reasonably anticipated eligible project costs or if the secured loan does not receive an investment grade rating, the amount of the senior project obligations.
    • (B) In the case of a project capitalizing a rural projects fund, the maximum amount of a secured loan made to a State infrastructure bank shall be determined in accordance with section 602(a)(5)(B)(iii).
  • (3) A secured loan under this section—
    • (A) shall—
      • (i) be payable, in whole or in part, from—
        • (I) tolls;
        • (II) user fees;
        • (III) payments owing to the obligor under a public-private partnership;
        • (IV) other dedicated revenue sources that also secure the senior project obligations; or
        • (V) in the case of a secured loan for a project capitalizing a rural projects fund, any other dedicated revenue sources available to a State infrastructure bank, including repayments from loans made by the bank for rural infrastructure projects; 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)
    • (A) Except as provided in subparagraphs (B) and (C), the interest rate on a secured loan under this section 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.
    • (B)
      • (i) The interest rate of a loan offered to a rural infrastructure project or a rural projects fund under the TIFIA program shall be at ½ of the Treasury Rate in effect on the date of execution of the loan agreement.
      • (ii) The rate described in clause (i) shall only apply to any portion of a loan the subsidy cost of which is funded by amounts set aside for rural infrastructure projects and rural project funds under section 608(a)(3)(A).
    • (C) The interest rate of a secured loan under this section may not be lowered by more than the lower of—
      • (i) 1½ percentage points (150 basis points); or
      • (ii) the amount of the increase in the interest rate.
  • (5)
    • (A) Except as provided in subparagraph (B), the final maturity date of the secured loan shall be the lesser of—
      • (i) 35 years after the date of substantial completion of the project; and
      • (ii) if the useful life of the capital asset being financed is of a lesser period, the useful life of the asset.
    • (B) In the case of a project capitalizing a rural projects fund, the final maturity date of the secured loan shall not exceed 35 years after the date on which the secured loan is obligated.
  • (6)
    • (A) Except as provided in subparagraph (B), 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.
    • (B)
      • (i) The Secretary shall waive the requirement under subparagraph (A) for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture, if—
        • (I) the secured loan is rated in the A category or higher;
        • (II) the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and
        • (III) the TIFIA program share of eligible project costs is 33 percent or less.
      • (ii) If the Secretary waives the nonsubordination requirement under this subparagraph—
        • (I) the maximum credit subsidy to be paid by the Federal Government shall be not more than 10 percent of the principal amount of the secured loan; and
        • (II) the obligor shall be responsible for paying the remainder of the subsidy cost, if any.
  • (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 section.
  • (8) The proceeds of a secured loan under the TIFIA program may be used for any non-Federal share of project costs required under this title or chapter 53 of title 49, if the loan is repayable from non-Federal funds.
  • (9)
    • (A) The total Federal assistance provided for a project receiving a loan under the TIFIA program shall not exceed 80 percent of the total project cost.
    • (B) A project capitalizing a rural projects fund shall satisfy subparagraph (A) through compliance with the Federal share requirement described in section 610(e)(3)(B).
• (c)
  • (1) The Secretary shall establish a repayment schedule for each secured loan under this section based on—
    • (A) the projected cash flow from project revenues and other repayment sources; and
    • (B) the useful life of the project.
  • (2) Scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than 5 years after the date of substantial completion of the project.
  • (3)
    • (A) If, at any time after the date of substantial completion of the project, the 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 project meeting criteria established by the Secretary.
      • (ii) The criteria established pursuant to 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) The 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 a project and after notifying the obligor, the Secretary may sell to another entity or reoffer into the capital markets a secured loan for the project if the Secretary determines that the sale or reoffering can be made on favorable terms.
  • (2) In making a sale or reoffering 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 under this section 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 loan guarantee under paragraph (1) shall be consistent with the terms required under this section for a secured loan, 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)
  • (1) Not later than 180 days after the date of enactment of the FAST Act, the Secretary shall make available an expedited application process or processes available at the request of entities seeking secured loans under the TIFIA program that use a set or sets of conventional terms established pursuant to this section.
  • (2) In establishing the streamlined application process required by this subsection, the Secretary may include terms commonly included in prior credit agreements and allow for an expedited application period, including—
    • (A) the secured loan is in an amount of not greater than $100,000,000;
    • (B) the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge, tax increment financing, or a system-backed pledge of project revenues; and
    • (C) repayment of the loan commences not later than 5 years after disbursement.

§ 604. Lines of credit

• (a)
  • (1) Subject to paragraphs (2) through (4), the Secretary may enter into agreements to make available to 1 or more obligors lines of credit in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any project selected under section 602.
  • (2) The proceeds of a line of credit made available under this section shall be available to pay 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.
  • (3) 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 602(b)(3), shall determine an appropriate capital reserve subsidy amount for each line of credit, taking into account the rating opinion letter.
  • (4) The funding of a line of credit under this section shall be contingent on the senior obligations of the project receiving an investment-grade rating from 2 rating agencies.
• (b)
  • (1) A line of credit under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines to be appropriate.
  • (2) The total amount of a line of credit under this section shall not exceed 33 percent of the reasonably anticipated eligible project costs.
  • (3) Any draw on a line of credit under this section shall—
    • (A) represent a direct loan; and
    • (B) be made only if net revenues from the project (including capitalized interest, but not including reasonably required financing reserves) are insufficient to pay the costs specified in subsection (a)(2).
  • (4) Except as provided in subparagraphs (B) and (C) of section 603(b)(4), the interest rate on a direct loan resulting from a draw on the line of credit shall be not less than the yield on 30-year United States Treasury securities, as of the date of execution of the line of credit agreement.
  • (5) A line of credit issued under this section—
    • (A) shall—
      • (i) be payable, in whole or in part, from—
        • (I) tolls;
        • (II) user fees;
        • (III) payments owing to the obligor under a public-private partnership; or
        • (IV) 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.
  • (6) The full amount of a line of credit under this section, to the extent not drawn upon, shall be available during the 10-year period beginning on the date of substantial completion of the project.
  • (7)
    • (A) A third-party creditor of the obligor shall not have any right against the Federal Government with respect to any draw on a line of credit under this section.
    • (B) An obligor may assign a line of credit under this section to—
      • (i) 1 or more lenders; or
      • (ii) a trustee on the behalf of such a lender.
  • (8)
    • (A) Except as provided in subparagraph (B), a direct loan under this section shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor.
    • (B)
      • (i) The Secretary shall waive the requirement of subparagraph (A) for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture, if—
        • (I) the line of credit is rated in the A category or higher;
        • (II) the TIFIA program loan resulting from a draw on the line of credit is payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and
        • (III) the TIFIA program share of eligible project costs is 33 percent or less.
      • (ii) If the Secretary waives the nonsubordination requirement under this subparagraph—
        • (I) the maximum credit subsidy to be paid by the Federal Government shall be not more than 10 percent of the principal amount of the secured loan; and
        • (II) the obligor shall be responsible for paying the remainder of the subsidy cost.
  • (9) The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of providing a line of credit under this section.
  • (10) A project that receives a line of credit under this section also shall not receive a secured loan or loan guarantee under section 603 in an amount that, combined with the amount of the line of credit, exceeds 49 percent of eligible project costs.
• (c)
  • (1) The Secretary shall establish repayment terms and conditions for each direct loan under this section based on—
    • (A) the projected cash flow from project revenues and other repayment sources; and
    • (B) the useful life of the asset being financed.
  • (2) All repayments of principal or interest on a direct loan under this section shall be scheduled—
    • (A) to commence not later than 5 years after the end of the period of availability specified in subsection (b)(6); and
    • (B) to conclude, with full repayment of principal and interest, by the date that is 25 years after the end of the period of availability specified in subsection (b)(6).

§ 605. Program administration

• (a) The Secretary shall establish a uniform system to service the Federal credit instruments made available under the TIFIA program.
• (b) The Secretary may collect and spend fees, contingent on authority being provided in appropriations Acts, at a level that is sufficient to cover—
  • (1) the costs of services of expert firms retained pursuant to subsection (d); and
  • (2) all or a portion of the costs to the Federal Government of servicing the Federal credit instruments.
• (c)
  • (1) The Secretary may appoint a financial entity to assist the Secretary in servicing the Federal credit instruments.
  • (2) A servicer appointed under paragraph (1) shall act as the agent for the Secretary.
  • (3) A servicer appointed under paragraph (1) shall receive a servicing fee, subject to approval by the Secretary.
• (d) The 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.
• (e) The Secretary shall implement procedures and measures to economize the time and cost involved in obtaining approval and the issuance of credit assistance under the TIFIA program.
• (f)
  • (1) Of the funds made available to carry out the TIFIA program for each fiscal year, and after the set aside under section 608(a)(5), not less than $2,000,000 shall be made available for the Secretary to use in lieu of fees collected under subsection (b) for projects under the TIFIA program having eligible project costs that are reasonably anticipated not to equal or exceed $75,000,000.
  • (2) Any funds not used under paragraph (1) in a fiscal year shall be made available on October 1 of the following fiscal year to provide credit assistance to any project under the TIFIA program.

§ 606. State and local permits

The provision of credit assistance under the TIFIA program with respect to a 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 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 project; or
• (3) otherwise supersede any State or local law (including any regulation) applicable to the construction or operation of the project.

§ 607. Regulations

The Secretary may promulgate such regulations as the Secretary determines to be appropriate to carry out the TIFIA program.

§ 608. Funding

• (a)
  • (1) Spending and borrowing authority for a fiscal year to enter into Federal credit instruments shall be promptly apportioned to the Secretary on a fiscal-year basis.
  • (2) If the subsidy cost of a Federal credit instrument is reestimated, the cost increase or decrease of the reestimate shall be borne by, or benefit, the general fund of the Treasury, consistent with section 504(f) of the Congressional Budget Act of 1974 ( 2 U.S.C. 661c(f) ).
  • (3)
    • (A) Of the total amount of funds made available to carry out the TIFIA program for each fiscal year, not more than 10 percent shall be set aside for rural infrastructure projects or rural projects funds.
    • (B) Any amounts set aside under subparagraph (A) that remain unobligated by June 1 of the fiscal year for which the amounts were set aside shall be available for obligation by the Secretary on projects other than rural infrastructure projects or rural projects funds.
  • (4) Amounts made available to carry out the TIFIA program shall remain available until expended.
  • (5) Of the amounts made available to carry out the TIFIA program, the Secretary may use not more than $6,875,000 for fiscal year 2016, $7,081,000 for fiscal year 2017, $7,559,000 for fiscal year 2018, $8,195,000 for fiscal year 2019, and $8,441,000 for fiscal year 2020 for the administration of the TIFIA program.
• (b)
  • (1) Notwithstanding any other provision of law, execution of a term sheet by the Secretary of a Federal credit instrument that uses amounts made available under the TIFIA program shall impose on the United States a contractual obligation to fund the Federal credit investment.
  • (2) Amounts made available to carry out the TIFIA program for a fiscal year shall be available for obligation on October 1 of the fiscal year.

§ 609. Reports to Congress

• (a) On June 1, 2012 , and every 2 years thereafter, the Secretary shall submit to Congress a report summarizing the financial performance of the projects that are receiving, or have received, assistance under the TIFIA program, including a recommendation as to whether the objectives of the TIFIA program are best served by—
  • (1) continuing the program under the authority of the Secretary;
  • (2) establishing a Federal corporation or federally sponsored enterprise to administer the program; or
  • (3) phasing out the program and relying on the capital markets to fund the types of infrastructure investments assisted by the TIFIA program without Federal participation.
• (b)
  • (1) Not later than December 1, 2012 , and annually thereafter, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that includes a list of all of the letters of interest and applications received from project sponsors for assistance under the TIFIA program during the preceding fiscal year.
  • (2)
    • (A) Each report under paragraph (1) shall include, at a minimum, a description of, with respect to each letter of interest and application included in the report—
      • (i) the date on which the letter of interest or application was received;
      • (ii) the date on which a notification was provided to the project sponsor regarding whether the application was complete or incomplete;
      • (iii) the date on which a revised and completed application was submitted (if applicable);
      • (iv) the date on which a notification was provided to the project sponsor regarding whether the project was approved or disapproved; and
      • (v) if the project was not approved, the reason for the disapproval.
    • (B) Each report under paragraph (1) shall include copies of any correspondence provided to the project sponsor in accordance with section 602(d).

§ 610. State infrastructure bank program

• (a) In this section, the following definitions apply:
  • (1) The term “capital project” has the meaning such term has under section 5302 of title 49 .
  • (2) The term “other forms of credit assistance” includes any use of funds in an infrastructure bank—
    • (A) to provide credit enhancements;
    • (B) to serve as a capital reserve for bond or debt instrument financing;
    • (C) to subsidize interest rates;
    • (D) to insure or guarantee letters of credit and credit instruments against credit risk of loss;
    • (E) to finance purchase and lease agreements with respect to transit projects;
    • (F) to provide bond or debt financing instrument security; and
    • (G) to provide other forms of debt financing and methods of leveraging funds that are approved by the Secretary and that relate to the project with respect to which such assistance is being provided.
  • (3) The term “State” has the meaning such term has under section 401.
  • (4) The term “capitalization” means the process used for depositing funds as initial capital into a State infrastructure bank to establish the infrastructure bank.
  • (5) The term “cooperative agreement” means written consent between a State and the Secretary which sets forth the manner in which the infrastructure bank established by the State in accordance with this section will be administered.
  • (6) The term “loan” means any form of direct financial assistance from a State infrastructure bank that is required to be repaid over a period of time and that is provided to a project sponsor for all or part of the costs of the project.
  • (7) The term “guarantee” means a contract entered into by a State infrastructure bank in which the bank agrees to take responsibility for all or a portion of a project sponsor’s financial obligations for a project under specified conditions.
  • (8) The term “initial assistance” means the first round of funds that are loaned or used for credit enhancement by a State infrastructure bank for projects eligible for assistance under this section.
  • (9) The term “leverage” means a financial structure used to increase funds in a State infrastructure bank through the issuance of debt instruments.
  • (10) The term “leveraged”, as used with respect to a State infrastructure bank, means that the bank has total potential liabilities that exceed the capital of the bank.
  • (11) The term “rural infrastructure project” has the meaning given the term in section 601.
  • (12) The term “rural projects fund” has the meaning given the term in section 601.
• (b) Subject to the provisions of this section, the Secretary may enter into cooperative agreements with States for the establishment of State infrastructure banks for making loans and providing other forms of credit assistance to public and private entities carrying out or proposing to carry out projects eligible for assistance under this section.
• (c)
  • (1) Congress grants consent to two or more of the States, entering into a cooperative agreement under subsection (a) with the Secretary for the establishment by such States of a multistate infrastructure bank in accordance with this section, to enter into an interstate compact establishing such bank in accordance with this section.
  • (2) The right to alter, amend, or repeal interstate compacts entered into under this subsection is expressly reserved.
• (d)
  • (1) Subject to subsection (j), the Secretary may permit a State entering into a cooperative agreement under this section to establish a State infrastructure bank to deposit into the highway account of the bank not to exceed—
    • (A) 10 percent of the funds apportioned to the State for each of fiscal years 2016 through 2020 under each of paragraphs (1), (2), and (5) of section 104(b); and
    • (B) 10 percent of the funds allocated to the State for each of such fiscal years.
  • (2) Subject to subsection (j), the Secretary may permit a State entering into a cooperative agreement under this section to establish a State infrastructure bank, and any other recipient of Federal assistance under section 5307, 5309, or 5311 of title 49, to deposit into the transit account of the bank not to exceed 10 percent of the funds made available to the State or other recipient in each of fiscal years 2016 through 2020 for capital projects under each of such sections.
  • (3) Subject to subsection (j), the Secretary may permit a State entering into a cooperative agreement under this section to establish a State infrastructure bank, and any other recipient of Federal assistance under subtitle V of title 49, to deposit into the rail account of the bank funds made available to the State or other recipient in each of fiscal years 2016 through 2020 for capital projects under such subtitle.
  • (4) Subject to subsection (j), the Secretary may permit a State entering into a cooperative agreement under this section to establish a State infrastructure bank to deposit into the rural projects fund of the bank the proceeds of a secured loan made to the bank in accordance with sections 602 and 603.
  • (5)
    • (A) Federal funds deposited into a highway account of a State infrastructure bank under paragraph (1) shall constitute for purposes of this section a capitalization grant for the highway account of the bank.
    • (B) Federal funds deposited into a transit account of a State infrastructure bank under paragraph (2) shall constitute for purposes of this section a capitalization grant for the transit account of the bank.
    • (C) Federal funds deposited into a rail account of a State infrastructure bank under paragraph 3 shall constitute for purposes of this section a capitalization grant for the rail account of the bank.
  • (6) Funds in a State infrastructure bank that are attributed to urbanized areas of a State with urbanized populations of over 200,000 under section 133(d)(1)(A)(i) may be used to provide assistance with respect to a project only if the metropolitan planning organization designated for such area concurs, in writing, with the provision of such assistance.
  • (7) If the Secretary determines that a State is not implementing the State’s infrastructure bank in accordance with a cooperative agreement entered into under subsection (b), the Secretary may prohibit the State from contributing additional Federal funds to the bank.
• (e)
  • (1) A State infrastructure bank established under this section may—
    • (A) with funds deposited into the highway account, transit account, or rail account of the bank, make loans or provide other forms of credit assistance to a public or private entity to carry out a project eligible for assistance under this section; and
    • (B) with funds deposited into the rural projects fund, make loans to a public or private entity to carry out a rural infrastructure project.
  • (2) The amount of a loan or other form of credit assistance provided for a project described in paragraph (1) may be subordinated to any other debt financing for the project.
  • (3) A State infrastructure bank established under this section may—
    • (A) with funds deposited into the highway account, transit account, or rail account of the bank, make loans or provide other forms of credit assistance to a public or private entity in an amount up to 100 percent of the cost of carrying out a project eligible for assistance under this section; and
    • (B) with funds deposited into the rural projects fund, make loans to a public or private entity in an amount not to exceed 80 percent of the cost of carrying out a rural infrastructure project.
  • (4) Initial assistance provided with respect to a project from Federal funds deposited into a State infrastructure bank under this section may not be made in the form of a grant.
• (f) Subject to subsection (e), funds in an infrastructure bank established under this section may be used only to provide assistance for projects eligible for assistance under this title and capital projects defined in section 5302 of title 49 , and any other projects relating to surface transportation that the Secretary determines to be appropriate.
• (g) In order to establish an infrastructure bank under this section, the State establishing the bank shall—
  • (1) deposit in cash, at a minimum, into the highway account, the transit account, and the rail account of the bank from non-Federal sources an amount equal to 25 percent of the amount of each capitalization grant made to the State and deposited into such account; except that, if the deposit is into the highway account of the bank and the State has a non-Federal share under section 120(b) that is less than 25 percent, the percentage to be deposited from non-Federal sources shall be the lower percentage of such grant;
  • (2) ensure that the bank maintains on a continuing basis an investment grade rating on its debt, or has a sufficient level of bond or debt financing instrument insurance, to maintain the viability of the bank;
  • (3) ensure that investment income derived from funds deposited to an account of the bank are—
    • (A) credited to the account;
    • (B) available for use in providing loans and other forms of credit assistance to projects eligible for assistance from the account; and
    • (C) invested in United States Treasury securities, bank deposits, or such other financing instruments as the Secretary may approve to earn interest to enhance the leveraging of projects assisted by the bank;
  • (4) ensure that any loan from the bank will bear interest at or below market interest rates, as determined by the State, to make the project that is the subject of the loan feasible, except that any loan funded from the rural projects fund of the bank shall bear interest at or below the interest rate charged for the TIFIA loan provided to the bank under section 603;
  • (5) ensure that repayment of any loan from the bank will commence not later than 5 years after the project has been completed or, in the case of a highway project, the facility has opened to traffic, whichever is later;
  • (6) ensure that the term for repaying any loan will not exceed 30 years after the date of the first payment on the loan; and
  • (7) require the bank to make an annual report to the Secretary on its status no later than September 30 of each year and such other reports as the Secretary may require under guidelines issued to carry out this section.
• (h)
  • (1) The requirements of this title and title 49 that would otherwise apply to funds made available under this title or such title and projects assisted with those funds shall apply to—
    • (A) funds made available under this title or such title and contributed to an infrastructure bank established under this section, including the non-Federal contribution required under subsection (g); and
    • (B) projects assisted by the bank through the use of the funds,
  • (2) The requirements of this title and title 49 shall apply to repayments from non-Federal sources to an infrastructure bank from projects assisted by the bank. Such a repayment shall be considered to be Federal funds.
• (i) The deposit of Federal funds into an infrastructure bank established under this section shall not be construed as a commitment, guarantee, or obligation on the part of the United States to any third party, nor shall any third party have any right against the United States for payment solely by virtue of the contribution. Any security or debt-financing instrument issued by the infrastructure bank shall expressly state that the security or instrument does not constitute a commitment, guarantee, or obligation of the United States.
• (j) Sections 3335 and 6503 of title 31 shall not apply to funds deposited into an infrastructure bank under this section.
• (k) For each of fiscal years 2016 through 2020, a State may expend not to exceed 2 percent of the Federal funds contributed to an infrastructure bank established by the State under this section to pay the reasonable costs of administering the bank.