S 942 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 942CommentsClose CommentsPermalink

To provide for improved investment in national transportation infrastructure.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

May 10, 2011CommentsClose CommentsPermalink

Mrs. MURRAY (for herself, Ms. COLLINS, and Mr. DURBIN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and TransportationCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide for improved investment in national transportation infrastructure.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Transportation Infrastructure Grants and Economic Reinvestment Act’.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) ELIGIBLE ENTITY- The term ‘eligible entity’ means--CommentsClose CommentsPermalink





(A) a State;CommentsClose CommentsPermalink





(B) a local government;CommentsClose CommentsPermalink





(C) a transit agency; andCommentsClose CommentsPermalink





(D) 2 or more of the entities described in subparagraphs (A) through (C), working in collaboration.CommentsClose CommentsPermalink





(2) ELIGIBLE PROJECT-CommentsClose CommentsPermalink





(A) IN GENERAL- 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.CommentsClose CommentsPermalink





(B) INCLUSIONS- The term ‘eligible project’ includes--CommentsClose CommentsPermalink





(i) a highway or bridge project eligible for funding under chapter 1 of title 23, United States Code;CommentsClose CommentsPermalink





(ii) a public transportation project eligible for funding under chapter 53 of title 49, United States Code;CommentsClose CommentsPermalink





(iii) a passenger or freight rail transportation project; andCommentsClose CommentsPermalink





(iv) a port infrastructure project.CommentsClose CommentsPermalink





(3) ELIGIBLE PROJECT COSTS-CommentsClose CommentsPermalink





(A) IN GENERAL- The term ‘eligible project costs’ means costs relating to an eligible project, such as the costs of--CommentsClose CommentsPermalink





(i) development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(iii) capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction.CommentsClose CommentsPermalink





(B) EXCLUSION- The term ‘eligible project costs’ does not include the costs of dredging activities.CommentsClose CommentsPermalink





(4) FEDERAL CREDIT INSTRUMENT- The 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.CommentsClose CommentsPermalink





(5) INVESTMENT-GRADE RATING- 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.CommentsClose CommentsPermalink





(6) LENDER- 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--CommentsClose CommentsPermalink





(A) a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986) that is a qualified institutional buyer; andCommentsClose CommentsPermalink





(B) a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986) that is a qualified institutional buyer.CommentsClose CommentsPermalink





(7) LOAN GUARANTEE- 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.CommentsClose CommentsPermalink





(8) OBLIGOR- 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.CommentsClose CommentsPermalink





(9) PROJECT OBLIGATION- 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.CommentsClose CommentsPermalink





(10) RATING AGENCY- 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))).CommentsClose CommentsPermalink





(11) RURAL AREA- The term ‘rural area’ means any area not in an urbanized area (as that term is defined by the Census Bureau).CommentsClose CommentsPermalink





(12) SECRETARY- The term ‘Secretary’ means the Secretary of Transportation.CommentsClose CommentsPermalink





(13) SECURED LOAN- 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.CommentsClose CommentsPermalink





(14) STATE- The term ‘State’ means--CommentsClose CommentsPermalink





(A) any of the 50 States; orCommentsClose CommentsPermalink





(B) the District of Columbia.CommentsClose CommentsPermalink





(15) SUBSIDY AMOUNT- 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.).CommentsClose CommentsPermalink





(16) SUBSTANTIAL COMPLETION- The term ‘substantial completion’ means the opening of an eligible project to vehicular or passenger traffic.CommentsClose CommentsPermalink

SEC. 3. NATIONAL INFRASTRUCTURE INVESTMENT PROGRAM.

(a) Program- 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.CommentsClose CommentsPermalink





(b) Grant Requirements-CommentsClose CommentsPermalink





(1) AMOUNT- 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.CommentsClose CommentsPermalink





(2) GEOGRAPHICAL DISTRIBUTION; BALANCE; INVESTMENT- In 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--CommentsClose CommentsPermalink





(A) an equitable geographical distribution of funds;CommentsClose CommentsPermalink





(B) an appropriate balance in addressing the needs of urban and rural areas; andCommentsClose CommentsPermalink





(C) investment in a variety of transportation modes.CommentsClose CommentsPermalink





(3) MAXIMUM PERCENTAGE PER STATE- Not 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.CommentsClose CommentsPermalink





(4) FEDERAL SHARE-CommentsClose CommentsPermalink





(A) IN GENERAL- 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.CommentsClose CommentsPermalink





(B) PRIORITY- 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.CommentsClose CommentsPermalink





(5) ELIGIBLE PROJECTS IN RURAL AREAS-CommentsClose CommentsPermalink





(A) IN GENERAL- 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.CommentsClose CommentsPermalink





(B) MINIMUM GRANT AMOUNT; FEDERAL SHARE- With respect to an eligible project located in a rural area--CommentsClose CommentsPermalink





(i) the minimum amount of a grant or secured loan provided under this Act shall be $1,000,000; andCommentsClose CommentsPermalink





(ii) the Secretary may increase the Federal share of the cost of carrying out the eligible project up to 100 percent.CommentsClose CommentsPermalink





(6) SET-ASIDES FOR CERTAIN COSTS, PROJECTS, AND TRANSFERS- Of the amounts made available under this Act for a fiscal year, the Secretary may--CommentsClose CommentsPermalink





(A) use not more than 25 percent to pay the subsidy and administrative costs of secured loans and loan guarantees for eligible projects;CommentsClose CommentsPermalink





(B) use an amount not to exceed $20,000,000 for grants that pay for the planning, preparation, or design of eligible projects; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Selection Among Eligible Projects-CommentsClose CommentsPermalink





(1) ESTABLISHMENT- The Secretary shall establish criteria for use in selecting among eligible projects to receive funding under this Act.CommentsClose CommentsPermalink





(2) SELECTION CRITERIA-CommentsClose CommentsPermalink





(A) PRIMARY SELECTION CRITERIA- The 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--CommentsClose CommentsPermalink





(i) improves the safety of transportation facilities and systems;CommentsClose CommentsPermalink





(ii) improves the condition of existing transportation facilities and systems;CommentsClose CommentsPermalink





(iii) contributes to economic competitiveness over the medium- to long-term;CommentsClose CommentsPermalink





(iv) improves the environment, improves energy efficiency, reduces dependence on oil, or reduces greenhouse gas emissions; andCommentsClose CommentsPermalink





(v) improves access to transportation facilities and systems.CommentsClose CommentsPermalink





(B) SECONDARY SELECTION CRITERIA- In addition to considering the primary selection criteria described in subparagraph (A), the Secretary shall consider the extent to which a project--CommentsClose CommentsPermalink





(i) uses innovative strategies or technologies to pursue any of those primary selection criteria; andCommentsClose CommentsPermalink





(ii) demonstrates strong collaboration among a broad range of participants, or the integration of transportation with other public service efforts.CommentsClose CommentsPermalink





(C) FEDERAL CREDIT INSTRUMENTS- In 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.CommentsClose CommentsPermalink





(d) Application Requirement-CommentsClose CommentsPermalink





(1) IN GENERAL- 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.CommentsClose CommentsPermalink





(2) FEDERAL CREDIT INSTRUMENTS- For 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.CommentsClose CommentsPermalink





(e) Federal Requirements- The following provisions of law shall apply to funds made available under this Act and eligible projects carried out using those funds:CommentsClose CommentsPermalink





(1) Subchapter IV of chapter 31 of title 40, United States Code.CommentsClose CommentsPermalink





(2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).CommentsClose CommentsPermalink





(3) The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).CommentsClose CommentsPermalink





(4) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).CommentsClose CommentsPermalink





(f) Transparency-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall include in any notice of funding availability a full description of how applications will be evaluated against all selection criteria.CommentsClose CommentsPermalink





(2) CONSULTATIONS ON DECISIONS- After 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.CommentsClose CommentsPermalink

SEC. 4. SECURED LOANS AND LOAN GUARANTEES.

(a) In General-CommentsClose CommentsPermalink





(1) AGREEMENTS- 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.CommentsClose CommentsPermalink





(2) RISK ASSESSMENT- 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.CommentsClose CommentsPermalink





(3) INVESTMENT-GRADE RATING REQUIREMENT- The execution of a secured loan under this Act shall be contingent on the senior project obligations receiving an investment-grade rating.CommentsClose CommentsPermalink





(b) Terms and Limitations-CommentsClose CommentsPermalink





(1) IN GENERAL- 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.CommentsClose CommentsPermalink





(2) MAXIMUM AMOUNT- 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--CommentsClose CommentsPermalink





(A) 80 percent of the reasonably anticipated eligible project costs; andCommentsClose CommentsPermalink





(B) the amount of the senior project obligations.CommentsClose CommentsPermalink





(3) PAYMENT- The secured loan--CommentsClose CommentsPermalink





(A) shall--CommentsClose CommentsPermalink





(i) be payable, in whole or in part, from tolls, user fees, or other dedicated revenue sources that also secure the senior project obligations; andCommentsClose CommentsPermalink





(ii) include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; andCommentsClose CommentsPermalink





(B) may have a lien on revenues described in subparagraph (A) subject to any lien securing project obligations.CommentsClose CommentsPermalink





(4) INTEREST RATE- 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.CommentsClose CommentsPermalink





(5) MATURITY DATE- 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.CommentsClose CommentsPermalink





(6) NONSUBORDINATION- 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.CommentsClose CommentsPermalink





(7) FEES- 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.CommentsClose CommentsPermalink





(8) NON-FEDERAL SHARE- 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.CommentsClose CommentsPermalink





(c) Repayment-CommentsClose CommentsPermalink





(1) SCHEDULE- 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.CommentsClose CommentsPermalink





(2) COMMENCEMENT- 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.CommentsClose CommentsPermalink





(3) DEFERRED PAYMENTS-CommentsClose CommentsPermalink





(A) AUTHORIZATION- 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.CommentsClose CommentsPermalink





(B) INTEREST- Any payment deferred under subparagraph (A) shall--CommentsClose CommentsPermalink





(i) continue to accrue interest in accordance with subsection (b)(4) until fully repaid; andCommentsClose CommentsPermalink





(ii) be scheduled to be amortized over the remaining term of the loan.CommentsClose CommentsPermalink





(C) CRITERIA-CommentsClose CommentsPermalink





(i) IN GENERAL- Any payment deferral under subparagraph (A) shall be contingent on the eligible project meeting criteria established by the Secretary.CommentsClose CommentsPermalink





(ii) REPAYMENT STANDARDS- The criteria established under clause (i) shall include standards for reasonable assurance of repayment.CommentsClose CommentsPermalink





(4) PREPAYMENT-CommentsClose CommentsPermalink





(A) USE OF EXCESS REVENUES- 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.CommentsClose CommentsPermalink





(B) USE OF PROCEEDS OF REFINANCING- The secured loan may be prepaid at any time without penalty from the proceeds of refinancing from non-Federal funding sources.CommentsClose CommentsPermalink





(d) Sale of Secured Loans-CommentsClose CommentsPermalink





(1) IN GENERAL- 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.CommentsClose CommentsPermalink





(2) CONSENT OF OBLIGOR- 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.CommentsClose CommentsPermalink





(e) Loan Guarantees-CommentsClose CommentsPermalink





(1) IN GENERAL- 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.CommentsClose CommentsPermalink





(2) TERMS- 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.CommentsClose CommentsPermalink





(f) Administration of Federal Credit Instruments-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall establish a uniform system to service the Federal credit instruments made available under this Act.CommentsClose CommentsPermalink





(2) FEES- The Secretary may collect and spend fees, contingent upon authority being provided in appropriations Acts, at a level that is sufficient to cover--CommentsClose CommentsPermalink





(A) the costs of services of expert firms retained pursuant to paragraph (4); andCommentsClose CommentsPermalink





(B) all or a portion of the costs to the Federal Government of servicing the Federal credit instruments under this Act.CommentsClose CommentsPermalink





(3) SERVICER-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary may appoint a financial entity to assist the Secretary in servicing Federal credit instruments under this Act.CommentsClose CommentsPermalink





(B) DUTIES- The servicer shall act as the agent for the Secretary.CommentsClose CommentsPermalink





(C) FEE- The servicer shall receive a servicing fee, subject to approval by the Secretary.CommentsClose CommentsPermalink





(4) ASSISTANCE FROM EXPERT FIRMS- 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.CommentsClose CommentsPermalink

SEC. 5. STATE AND LOCAL PERMITS.

Financial assistance under this Act with respect to an eligible project shall not--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; orCommentsClose CommentsPermalink





(3) otherwise supersede any State or local law (including any regulation) applicable to the construction or operation of the eligible project.CommentsClose CommentsPermalink

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this Act such sums as are necessary for each of fiscal years 2012 through 2018.CommentsClose CommentsPermalink