Credit Assistance for Surface Transportation Projects; Expedited Process for Execution of TIFIA Loans, 54198-54200 [E8-21783]
Download as PDF
54198
Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Notices
D. Categories of Records and
Individuals Covered by the Matching
Program
SSA will provide BPD with a finder
file containing SSNs extracted from the
Medicare database. BPD will match the
SSNs in the finder file with the SSNs in
its Savings Securities registration
systems. This file will be formatted as
stated in the attached Appendix. These
records are included under the systems
of records Treasury/BPD.002, United
States Savings-Type Securities, and
Treasury/BPD.008, Retail Treasury
Securities Access Application, last
published on July 23, 2008 at 73 FR
42906 and 42918, respectively. SSA will
then match the BPD data with the new
Medicare Part D and Part D Subsidy File
system of records, SSA/ORSIS 60–0321,
published at 69 FR 248 (December 28,
2004). As required by the Privacy Act,
the Medicare Part D and Part D Subsidy
File system of records was published in
the Federal Register (Vol. 69, No. 248,
pp. 77816–77822 [04–28302]) on
Tuesday, December 28, 2004.
The number of records matched each
year is determined in part by the
number of people who file for subsidy
for Part D. (In July 2007, there were
1,921,207 records matched.) BPD will
perform the automated matching with
its computer systems and provide the
response file to SSA as soon as possible.
This agreement covers the following
matches:
(1) Screening for Potential Recipients
An ongoing monthly match of less
than 200,000 potential applicants and
those recipients who notify SSA of a
change.
dwashington3 on PRODPC61 with NOTICES
(2) Screening To Confirm Eligibility
Ongoing yearly matches of
approximately two million recipients
each year for confirming eligibility of
individuals receiving Medicare Part D
subsidy. SSA will substitute the yearly
match file for the ongoing monthly
match files and will not be a separate
submission.
E. Inclusive Dates of the Matching
Program
The matching program will become
effective no sooner than 40 days after
notice of the matching program is sent
to Congress and OMB, or 30 days after
publication of this notice in the Federal
Register, whichever date is later. The
matching program will continue for 18
months from the effective date and may
be extended for an additional 12 months
thereafter, if certain conditions are met.
[FR Doc. E8–21817 Filed 9–17–08; 8:45 am]
BILLING CODE 4191–02–P
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Jkt 214001
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
Notice of Applications for Certificates
of Public Convenience and Necessity
and Foreign Air Carrier Permits Filed
Under Subpart B (formerly Subpart Q)
During the Week Ending September 5,
2008
The following Applications for
Certificates of Public Convenience and
Necessity and Foreign Air Carrier
Permits were filed under Subpart B
(formerly Subpart Q) of the Department
of Transportation’s Procedural
Regulations (See 14 CFR 301.201 et
seq.). The due date for Answers,
Conforming Applications, or Motions to
Modify Scope are set forth below for
each application. Following the Answer
period DOT may process the application
by expedited procedures. Such
procedures may consist of the adoption
of a show-cause order, a tentative order,
or in appropriate cases a final order
without further proceedings.
Docket Number: DOT–OST–2008–
0274.
Date Filed: September 5, 2008.
Due Date for Answers, Conforming
Applications, or Motion to Modify
Scope: September 26, 2008.
Description: Joint Application of
TradeWinds Airlines, Inc. (‘‘TW’’) and
Sky Lease I, Inc. (’’Sky Lease’’)
requesting the Department transfer TW’s
certificates of public convenience and
necessity (and certain other exemption
authority) to Sky Lease.
Docket Number: DOT–OST–2008–
0277.
Date Filed: September 4, 2008.
Due Date for Answers, Conforming
Applications, or Motion to Modify
Scope: September 25, 2008.
Description: Application of TUIfly
Nordic A.B. (‘‘TUIfly’’) requesting an
exemption and an amended foreign air
carrier permit authorizing TUIfly to
conduct operations to and from the
United States to the full extent
authorized by the United StatesEuropean Union Air Transport
Agreement (‘‘U.S.-E.U. Agreement’’),
including authority to engage in: (i)
Charter foreign air transportation of
persons, property and mail from any
point(s) behind any Member State(s) of
the European Community via any
point(s) in any Member State(s) and
intermediate points to any point(s) in
the United States and beyond; (ii)
charter foreign air transportation of
persons, property and mail between any
point(s) in the United States and any
points(s) in any member of the
European Common Aviation Area; (iii)
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Fmt 4703
Sfmt 4703
charter foreign cargo air transportation
between any point(s) in the United
States and any other point(s); (iv) other
charter pursuant to the prior approval
requirements; and (v) transportation
authorized by any additional route or
other right(s) made available to
European Community carrier in the
future.
Renee V. Wright,
Program Manager, Docket Operations,
Federal Register Liaison.
[FR Doc. E8–21815 Filed 9–17–08; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
Aviation Proceedings, Agreements
Filed the Week Ending September 5,
2008
The following Agreements were filed
with the Department of Transportation
under the Sections 412 and 414 of the
Federal Aviation Act, as amended (49
U.S.C. 1383 and 1384) and procedures
governing proceedings to enforce these
provisions. Answers may be filed within
21 days after the filing of the
application.
Docket Number: DOT–OST–2008–
0276.
Date Filed: September 4, 2008.
Parties: Members of the International
Air Transport Association.
Subject: PTC COMP Mail Vote 575
Amending Composite Resolutions
(Memo 1477). Intended effective date:
1 April 2009.
Renee V. Wright,
Program Manager, Docket Operations,
Federal Register Liaison.
[FR Doc. E8–21818 Filed 9–17–08; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
[Docket No. FHWA–2008–0128]
Credit Assistance for Surface
Transportation Projects; Expedited
Process for Execution of TIFIA Loans
Federal Highway
Administration (FHWA), (DOT).
ACTION: Announcement of template term
sheet and template loan agreement for
an expedited TIFIA loan process; notice
and request for comments.
AGENCIES:
SUMMARY: In order to more efficiently
facilitate innovative financing
transactions, the DOT intends to
develop an expedited process for
E:\FR\FM\18SEN1.SGM
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dwashington3 on PRODPC61 with NOTICES
Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Notices
execution of TIFIA loans for certain
eligible highway projects developed
pursuant to concession agreements with
senior bank and/or bond debt facilities.
To the extent applicants choose to take
advantage of the expedited process,
utilizing standardized documents and
terms, as well as meet standard closing
conditions, the DOT will commit to
execute a final loan agreement within 45
days of the applicant’s agreement to all
of the terms and conditions contained in
a template term sheet and a template
loan agreement, drafts of which are
published for comment on the docket
for this notice and at the TIFIA Web site
listed below. In addition, the DOT seeks
comment regarding which term sheet
and loan terms would need to be
amended to provide an expedited
process and which terms need to be
amended for eligible transit projects
developed pursuant to concession
agreements.
DATES: Comments must be received on
or before October 20, 2008.
ADDRESSES: The template term sheet
and template loan agreement for the
expedited TIFIA loan process which are
the subject of this notice can be viewed
electronically at the docket established
for this rulemaking at https://
www.regulations.gov or on the TIFIA
Web site at https://tifia.fhwa.dot.gov.
Hard copies of the documents will also
be available for viewing at the DOT
address listed below.
Mail or hand deliver comments to the
U.S. Department of Transportation,
Dockets Management Facility, Room
W12–140, 1200 New Jersey Avenue, SE.,
Washington, DC 20590, or submit
comments electronically at https://
www.regulations.gov, or fax comments
to (202) 493–2251. Alternatively,
comments may be submitted via the
Federal eRulemaking Portal at https://
www.regulations.gov (follow the on-line
instructions for submitting comments).
All comments should include the
docket number that appears in the
heading of this document. All
comments received will be available for
examination and copying at the above
address from 9 a.m. to 5 p.m., e.t.,
Monday through Friday, except Federal
holidays. Those desiring notification of
receipt of comments must include a selfaddressed, stamped postcard or you
may print the acknowledgment page
that appears after submitting comments
electronically. All comments received
into any docket may be searched in
electronic format by the name of the
individual submitting the comment (or
signing the comment, if submitted on
behalf of an association, business, labor
union, etc.). Persons making comments
VerDate Aug<31>2005
15:26 Sep 17, 2008
Jkt 214001
may review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (Volume
65, Number 70, Pages 19477–78), or you
may view the statement at https://
dms.dot.gov.
Mr.
Mark Sullivan, TIFIA Joint Program
Office (202) 366–5785, Mr. Marcus J.
Lemon, Chief Counsel (202) 366–0740,
or Mr. Steven Rochlis, Office of the
Chief Counsel (202) 366–1395, Federal
Highway Administration; 1200 New
Jersey Avenue, SE., Washington, DC
20590. Office hours for the FHWA are
from 7:45 a.m. to 4:15 p.m., e.t., Monday
through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Electronic Access and Filing
You may submit or retrieve comments
online through the Federal eRulemaking
portal at: www.regulations.gov. The Web
site is available 24 hours each day, 365
days each year. Electronic submission
and retrieval help and guidelines are
available under the help section of the
Web site.
An electronic copy of this document
may also be downloaded from Office of
the Federal Register’s home page at:
https://www.archives.gov/federal_register
and the Government Printing Office’s
Web page at: https://www.gpoaccess.gov.
Background
TIFIA was enacted in 1998 as part of
the Transportation Equity Act for the
21st Century (TEA–21) (Pub. L. 105–
178, June 1998). TIFIA established a
Federal credit program which provides
Federal credit assistance to major
surface transportation projects of
regional or national significance. In
1999, the DOT promulgated a rule
implementing TIFIA (64 FR 29742, June
2, 1999), and amended the rule in 2000
(65 FR 44936, July 19, 2000).
Subsequently, in 2005, Congress
enacted the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA–LU) (Pub.
L. 109–59, Aug. 10, 2005), which made
a number of amendments to TIFIA.
In enacting the original TIFIA
legislation, Congress found that ‘‘a welldeveloped system of transportation
infrastructure is critical’’ to the nation’s
economy, and it sought to ‘‘attract new
investment capital’’ to transportation
infrastructure projects. Congress further
found that TIFIA could complement
existing funding resources by filling
‘‘market gaps,’’ thereby leveraging
substantial private co-investment.
To date, the DOT has provided almost
$4.8 billion in TIFIA credit assistance to
15 projects representing almost $18.6
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Sfmt 4703
54199
billion of infrastructure investment.
Four TIFIA loans, including the three
most recent TIFIA loans, have been
executed with private companies for
eligible highway projects developed
pursuant to concession agreements with
a public entity. In addition, TIFIA has
recently experienced a sharp growth in
demand for credit assistance, in large
part because it has received several
applications for highway projects
developed pursuant to concession
agreements as a result of State
implementation of public-private
partnership initiatives. The pipeline of
expected TIFIA applications, which
demonstrates that this demand is not
likely to subside in the foreseeable
future, is also dominated by these types
of projects. In response to recurring
concerns over the length of time
associated with executing and closing
loans for these types of projects, the
DOT intends to offer certain borrowers
the option of an expedited loan process
or ‘‘fast track,’’ which would require
such borrowers to accept certain
standard loan terms set forth in template
loan documents.
Expedited Loan Process and Template
Loan Documents
The statutory and regulatory
requirements applicable to the TIFIA
program will not be modified, amended,
or supplemented for purposes of the
expedited loan process. If an applicant
wishes to take advantage of the
expedited loan process, the applicant
would be required to agree to the
standard terms and conditions
contained in a template term sheet
(subject to negotiation of certain project
specific terms, which must be separately
negotiated for each transaction). The
DOT would then commit to execute a
loan agreement substantially similar to
the template loan agreement, which is
maintained on the TIFIA Web site,
within 45 days of the applicant’s
signature accepting the term sheet. The
expedited loan process will be subject to
the DOT Credit Council and Secretary
approving the loan. An applicant’s
decision to seek an expedited process
will not affect the Department’s decision
to approve or disapprove credit
assistance. Applicants are strongly
encouraged to make use of this
innovative process.
For purposes of the expedited
process, the DOT has developed a
template term sheet for applicants
requesting secured loans for eligible
highway projects being developed
pursuant to a concession agreement
with senior bank and/or bond debt
facilities. The template term sheet
contains the key business terms to
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54200
Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Notices
which the DOT would require the
borrower to agree and certain project
specific terms that must be separately
negotiated for each transaction. The
DOT expects that these terms may be
modified periodically to reflect changes
in TIFIA policies and practices. The
DOT seeks public comment regarding
the terms contained in the template
term sheet. The template term sheet can
be viewed at the docket established for
this notice or at the TIFIA Web site at
https://tifia.fhwa.dot.gov.
The DOT has also developed a
template loan agreement. In order to
receive the DOT’s commitment to an
expedited process, an applicant must
agree that the standard template loan
agreement is acceptable in form and
substance, subject only to modifications
required to conform the agreement to
the terms and conditions of the agreed
upon term sheet. The DOT expects that
these terms may be modified
periodically to reflect changes in TIFIA
policies and practices. The DOT seeks
public comment regarding the terms
contained in the template loan
agreement. The template loan agreement
can be viewed at the docket established
for this notice or at the TIFIA Web site
at https://tifia.fhwa.dot.gov.
The DOT is aware that some of the
terms in the template term sheet and
template loan agreement may be
unsuitable for transactions involving
eligible transit projects. The DOT seeks
public comment regarding which terms
would need to be amended for
transactions involving eligible transit
projects developed pursuant to a
concession agreement with senior bank
and/or bond debt facilities.
Should an applicant seek terms that
deviate from those in the template term
sheet or the template loan agreement,
the DOT may still commit to an
expedited process, but only after the
revised terms have been agreed to by the
DOT. Items that require the TIFIA JPO’s
due diligence review (e.g., traffic and
revenue studies, senior loan documents,
inter-creditor agreements, rating letters,
etc.) do not need to be in final form for
DOT to commit to the expedited
process; however, DOT’s commitment
will be subject to receipt and due
diligence analysis of final versions
similar in every material respect to the
draft versions reviewed by the JPO prior
to the commitment.
Projects that require material
deviations from the terms in the
template term sheet or the template loan
agreement, as determined by the DOT in
its sole discretion, would not be eligible
for the expedited process. In these
circumstances, the DOT will maintain
the same approach to loan negotiations
VerDate Aug<31>2005
15:26 Sep 17, 2008
Jkt 214001
that has always characterized the TIFIA
program.
Notice is
hereby given that the FHWA and other
Federal agencies have taken final agency
Authority: 23 U.S.C 315 and 23 U.S.C.
actions by issuing licenses, permits and
601–609; 49 CFR 1.48(b)(6), 49 CFR Part 80.
approvals for the proposed construction
Issued on: September 12, 2008.
of new U.S. 301 in the State of Delaware
Thomas J. Madison, Jr.,
that is described below. The actions by
Federal Highway Administrator.
the Federal agencies on the project, and
[FR Doc. E8–21783 Filed 9–17–08; 8:45 am]
the laws under which such actions were
BILLING CODE 4910–22–P
taken, are described in the Final
Environmental Impact Statement (FEIS)
for the project approved on November
DEPARTMENT OF TRANSPORTATION 30, 2007 and issued on December 14,
2007 (FR Vol. 72, No. 240, p. 71138) and
Federal Highway Administration
in the FHWA Record of Decision (ROD)
Notice of Final Federal Agency Actions issued on April 30, 2008, and in other
project records. The FEIS, ROD, and
on Proposed Highway in Delaware
other records for the project are
available by contacting the FHWA or the
AGENCY: Federal Highway
Delaware Department of Transportation
Administration (FHWA), DOT.
at the addresses provided above. In
ACTION: Notice of Limitation on Claims
addition, the FEIS and ROD can be
for Judicial Review of Actions by FHWA
viewed and downloaded electronically
and Other Federal Agencies.
from the project Web site, https://
www.deldot.gov/information/projects/
SUMMARY: This notice announces actions
us301/, or viewed at public libraries and
taken by the FHWA and other Federal
other public venues in the relevant
agencies that are final within the
project area.
meaning of 23 U.S.C. 139(l)(1). The
This notice applies to all Federal
actions relate to: a proposed highway
agency decisions on the listed project as
project, the U.S. 301: MD/DE Line to
of the issuance date of this notice and
SR1, South of the C&D Canal, New
all laws under which such actions were
Castle County, Delaware, including the
taken. The laws under which Federal
new 13 mile long U.S. 301 mainline on
agency decisions were made on the
new alignment between the Delaware/
Maryland state line and State Route (SR) project include, but are not limited to:
1. General: National Environmental
1, and the new 3.5 mile long Spur Road,
Policy Act (NEPA) [42 U.S.C. 4321–
on new alignment from proposed U.S.
4351]; Federal-Aid Highway Act [23
301 in the vicinity of Armstrong Corner
Road to the Summit Bridge, south of the U.S.C. 109].
2. Wetlands and Water Resources:
Chesapeake and Delaware (C&D) Canal,
Clean Water Act [33 U.S.C. 1251–1377]
State of Delaware. Those actions grant
approvals for both parts of the proposed (Section 404, Section 401, Section 319);
TEA–21 Wetlands Mitigation [23 U.S.C.
project.
103(b)(6)(m), 133(b)(11)]; Coastal Zone
DATES: By this notice, the FHWA is
Management Act [16 U.S.C. 1451–1465].
advising the public of final agency
3. Air: Clean Air Act [42 U.S.C. 7401–
actions subject to 23 U.S.C. 139(l)(1). A
7671(q) and applicable regulations
claim seeking judicial review of the
promulgated under 40 CFR 93.
Federal agency actions on the highway
4. Wildlife: Endangered Species Act
project will be barred unless the claim
[16 U.S.C. 1531–1544 and Section
is filed on or before March 17, 2009. If
1536]; Bald Eagle Protection Act [16
the Federal law that authorizes judicial
U.S.C. 668–668d]; Migratory Bird Treaty
review of a claim provides a time period Act [16 U.S.C. 703–712].
of less than 180 days for filing such a
5. Historic and Cultural Resources:
claim, then that shorter time period still Section 106 of the National Historic
applies.
Preservation Act of 1966, as amended
[16 U.S.C. 470(f) et seq.]; Archaeological
FOR FURTHER INFORMATION CONTACT:
Daniel Montag, Project Manager, Federal Resources Protection Act of 1977 [16
U.S.C. 470(aa)–(ii)]; Archaeological and
Highway Administration, 300 South
New Street, Suite 2101,Dover DE 19904; Historic Preservation Act [16 U.S.C.
469–469(c)]; Native American Grave
weekdays 8 a.m. to 4 p.m.; telephone
Protection and Repatriation Act
302–734–1719; e-mail:
(NAGPRA) [25 U.S.C. 3001–3013].
Daniel.Montag@fhwa.dot.gov. Mark
6. Land: Farmland Protection Policy
Tudor, Project Director, Delaware
Act (FPPA) [7 U.S.C. 4201–4209];
Department of Transportation, 800 Bay
Road, Dover DE 19903; weekdays 8 a.m. Section 4(f) of the Department of
Transportation Act of 1966 [49 U.S.C.
to 4 p.m.; telephone 302–760–2275;
303].
e-mail: Mark.Tudor@state.de.us.
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SUPPLEMENTARY INFORMATION:
E:\FR\FM\18SEN1.SGM
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Agencies
[Federal Register Volume 73, Number 182 (Thursday, September 18, 2008)]
[Notices]
[Pages 54198-54200]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21783]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
[Docket No. FHWA-2008-0128]
Credit Assistance for Surface Transportation Projects; Expedited
Process for Execution of TIFIA Loans
AGENCIES: Federal Highway Administration (FHWA), (DOT).
ACTION: Announcement of template term sheet and template loan agreement
for an expedited TIFIA loan process; notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: In order to more efficiently facilitate innovative financing
transactions, the DOT intends to develop an expedited process for
[[Page 54199]]
execution of TIFIA loans for certain eligible highway projects
developed pursuant to concession agreements with senior bank and/or
bond debt facilities. To the extent applicants choose to take advantage
of the expedited process, utilizing standardized documents and terms,
as well as meet standard closing conditions, the DOT will commit to
execute a final loan agreement within 45 days of the applicant's
agreement to all of the terms and conditions contained in a template
term sheet and a template loan agreement, drafts of which are published
for comment on the docket for this notice and at the TIFIA Web site
listed below. In addition, the DOT seeks comment regarding which term
sheet and loan terms would need to be amended to provide an expedited
process and which terms need to be amended for eligible transit
projects developed pursuant to concession agreements.
DATES: Comments must be received on or before October 20, 2008.
ADDRESSES: The template term sheet and template loan agreement for the
expedited TIFIA loan process which are the subject of this notice can
be viewed electronically at the docket established for this rulemaking
at https://www.regulations.gov or on the TIFIA Web site at https://
tifia.fhwa.dot.gov. Hard copies of the documents will also be available
for viewing at the DOT address listed below.
Mail or hand deliver comments to the U.S. Department of
Transportation, Dockets Management Facility, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, or submit comments
electronically at https://www.regulations.gov, or fax comments to (202)
493-2251. Alternatively, comments may be submitted via the Federal
eRulemaking Portal at https://www.regulations.gov (follow the on-line
instructions for submitting comments). All comments should include the
docket number that appears in the heading of this document. All
comments received will be available for examination and copying at the
above address from 9 a.m. to 5 p.m., e.t., Monday through Friday,
except Federal holidays. Those desiring notification of receipt of
comments must include a self-addressed, stamped postcard or you may
print the acknowledgment page that appears after submitting comments
electronically. All comments received into any docket may be searched
in electronic format by the name of the individual submitting the
comment (or signing the comment, if submitted on behalf of an
association, business, labor union, etc.). Persons making comments may
review DOT's complete Privacy Act Statement in the Federal Register
published on April 11, 2000 (Volume 65, Number 70, Pages 19477-78), or
you may view the statement at https://dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: Mr. Mark Sullivan, TIFIA Joint Program
Office (202) 366-5785, Mr. Marcus J. Lemon, Chief Counsel (202) 366-
0740, or Mr. Steven Rochlis, Office of the Chief Counsel (202) 366-
1395, Federal Highway Administration; 1200 New Jersey Avenue, SE.,
Washington, DC 20590. Office hours for the FHWA are from 7:45 a.m. to
4:15 p.m., e.t., Monday through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
You may submit or retrieve comments online through the Federal
eRulemaking portal at: www.regulations.gov. The Web site is available
24 hours each day, 365 days each year. Electronic submission and
retrieval help and guidelines are available under the help section of
the Web site.
An electronic copy of this document may also be downloaded from
Office of the Federal Register's home page at: https://www.archives.gov/
federal_register and the Government Printing Office's Web page at:
https://www.gpoaccess.gov.
Background
TIFIA was enacted in 1998 as part of the Transportation Equity Act
for the 21st Century (TEA-21) (Pub. L. 105-178, June 1998). TIFIA
established a Federal credit program which provides Federal credit
assistance to major surface transportation projects of regional or
national significance. In 1999, the DOT promulgated a rule implementing
TIFIA (64 FR 29742, June 2, 1999), and amended the rule in 2000 (65 FR
44936, July 19, 2000). Subsequently, in 2005, Congress enacted the
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU) (Pub. L. 109-59, Aug. 10, 2005), which
made a number of amendments to TIFIA.
In enacting the original TIFIA legislation, Congress found that ``a
well-developed system of transportation infrastructure is critical'' to
the nation's economy, and it sought to ``attract new investment
capital'' to transportation infrastructure projects. Congress further
found that TIFIA could complement existing funding resources by filling
``market gaps,'' thereby leveraging substantial private co-investment.
To date, the DOT has provided almost $4.8 billion in TIFIA credit
assistance to 15 projects representing almost $18.6 billion of
infrastructure investment. Four TIFIA loans, including the three most
recent TIFIA loans, have been executed with private companies for
eligible highway projects developed pursuant to concession agreements
with a public entity. In addition, TIFIA has recently experienced a
sharp growth in demand for credit assistance, in large part because it
has received several applications for highway projects developed
pursuant to concession agreements as a result of State implementation
of public-private partnership initiatives. The pipeline of expected
TIFIA applications, which demonstrates that this demand is not likely
to subside in the foreseeable future, is also dominated by these types
of projects. In response to recurring concerns over the length of time
associated with executing and closing loans for these types of
projects, the DOT intends to offer certain borrowers the option of an
expedited loan process or ``fast track,'' which would require such
borrowers to accept certain standard loan terms set forth in template
loan documents.
Expedited Loan Process and Template Loan Documents
The statutory and regulatory requirements applicable to the TIFIA
program will not be modified, amended, or supplemented for purposes of
the expedited loan process. If an applicant wishes to take advantage of
the expedited loan process, the applicant would be required to agree to
the standard terms and conditions contained in a template term sheet
(subject to negotiation of certain project specific terms, which must
be separately negotiated for each transaction). The DOT would then
commit to execute a loan agreement substantially similar to the
template loan agreement, which is maintained on the TIFIA Web site,
within 45 days of the applicant's signature accepting the term sheet.
The expedited loan process will be subject to the DOT Credit Council
and Secretary approving the loan. An applicant's decision to seek an
expedited process will not affect the Department's decision to approve
or disapprove credit assistance. Applicants are strongly encouraged to
make use of this innovative process.
For purposes of the expedited process, the DOT has developed a
template term sheet for applicants requesting secured loans for
eligible highway projects being developed pursuant to a concession
agreement with senior bank and/or bond debt facilities. The template
term sheet contains the key business terms to
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which the DOT would require the borrower to agree and certain project
specific terms that must be separately negotiated for each transaction.
The DOT expects that these terms may be modified periodically to
reflect changes in TIFIA policies and practices. The DOT seeks public
comment regarding the terms contained in the template term sheet. The
template term sheet can be viewed at the docket established for this
notice or at the TIFIA Web site at https://tifia.fhwa.dot.gov.
The DOT has also developed a template loan agreement. In order to
receive the DOT's commitment to an expedited process, an applicant must
agree that the standard template loan agreement is acceptable in form
and substance, subject only to modifications required to conform the
agreement to the terms and conditions of the agreed upon term sheet.
The DOT expects that these terms may be modified periodically to
reflect changes in TIFIA policies and practices. The DOT seeks public
comment regarding the terms contained in the template loan agreement.
The template loan agreement can be viewed at the docket established for
this notice or at the TIFIA Web site at https://tifia.fhwa.dot.gov.
The DOT is aware that some of the terms in the template term sheet
and template loan agreement may be unsuitable for transactions
involving eligible transit projects. The DOT seeks public comment
regarding which terms would need to be amended for transactions
involving eligible transit projects developed pursuant to a concession
agreement with senior bank and/or bond debt facilities.
Should an applicant seek terms that deviate from those in the
template term sheet or the template loan agreement, the DOT may still
commit to an expedited process, but only after the revised terms have
been agreed to by the DOT. Items that require the TIFIA JPO's due
diligence review (e.g., traffic and revenue studies, senior loan
documents, inter-creditor agreements, rating letters, etc.) do not need
to be in final form for DOT to commit to the expedited process;
however, DOT's commitment will be subject to receipt and due diligence
analysis of final versions similar in every material respect to the
draft versions reviewed by the JPO prior to the commitment.
Projects that require material deviations from the terms in the
template term sheet or the template loan agreement, as determined by
the DOT in its sole discretion, would not be eligible for the expedited
process. In these circumstances, the DOT will maintain the same
approach to loan negotiations that has always characterized the TIFIA
program.
Authority: 23 U.S.C 315 and 23 U.S.C. 601-609; 49 CFR
1.48(b)(6), 49 CFR Part 80.
Issued on: September 12, 2008.
Thomas J. Madison, Jr.,
Federal Highway Administrator.
[FR Doc. E8-21783 Filed 9-17-08; 8:45 am]
BILLING CODE 4910-22-P