Notice of Funding Availability for Applications for Credit Assistance Under the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program, 4408-4411 [2011-1460]

Download as PDF 4408 Federal Register / Vol. 76, No. 16 / Tuesday, January 25, 2011 / Notices Dated: January 19, 2011. Faye Lipsky, Reports Clearance Officer, Center for Reports Clearance, Social Security Administration. AGENCY: The purpose of this notice is to allow 60 days for public comment in the Federal Register preceding submission to OMB. We are conducting this process in accordance with the Paperwork Reduction Act of 1995. • Title of Information Collection: Registration for the Foreign Service Officer Test. • OMB Control Number: 1405–0008. • Type of Request: Extension of a Currently Approved Collection. • Originating Office: Human Resources, HR/REE/BEX. • Form Number: DS–1998E. • Respondents: Registrants for the Foreign Service Officer Test. • Estimated Number of Respondents: 30,000. • Estimated Number of Responses: 30,000. • Average Hours per Response: 2 hours. • Total Estimated Burden: 60,000. • Frequency: Thrice annually. • Obligation to Respond: Required to Obtain or Retain a Benefit. DATES: The Department will accept comments from the public up to 60 days from January 25, 2011. ADDRESSES: You may submit comments by any of the following methods: E-mail: RosenberrySA@state.gov. Mail (paper, disk, or CD–ROM submissions): Sara Rosenberry, HR/REE/ BEX, SA–44, 301 4th St., SW., Room 324, Washington, DC 20547. Fax: (202) 923–6472. FOR FURTHER INFORMATION CONTACT: Sara Rosenberry, Director, HR/REE/BEX, SA– 44, 301 4th St., SW., Room 324, Washington, DC 20547, tel: (202) 203– 5117. SUPPLEMENTARY INFORMATION: We are soliciting public comments to permit the Department to: • Evaluate whether the proposed information collection is necessary for the proper performance of our functions. • Evaluate the accuracy of our estimate of the burden of the proposed collection, including the validity of the methodology and assumptions used. • Enhance the quality, utility, and clarity of the information to be collected. • Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of technology. ACTION: Abstract of Proposed Collection The Department of State is seeking Office of Management and Budget (OMB) approval for the information collection described below. Individuals registering for the Foreign Service Officer Test will complete a Registration Form that consists of an application form that includes information about their name, age, [FR Doc. 2011–1445 Filed 1–24–11; 8:45 am] BILLING CODE 4191–02–P SOCIAL SECURITY ADMINISTRATION [Docket No. SSA–2011–0009] Service Contract Inventory and Corresponding Point of Contact Information Per Section 703 of Division C of the Fiscal Year (FY) 2010 Consolidated Appropriations Act Social Security Administration. Notice. AGENCY: ACTION: We are providing the Web site address (URL) for the Service Contract Inventory and the corresponding point of contact information per Section 743 of Division C of the FY 2010 Consolidated Appropriations Act, Public Law 111–117. FOR FURTHER INFORMATION CONTACT: Dennis Wilhite, Director, Office of Budget Execution and Automation, Office of Budget, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 21235–6401. Phone (410) 966–6988, e-mail Dennis.Wilhite@ssa.gov. SUMMARY: Section 743 of Division C of the FY 2010 Consolidated Appropriations Act, Public Law 111–117 requires executive agencies to prepare an annual inventory of their service contracts and make them available to the public. Our Web address (URL) for the service contract inventory is https://www.socialsecurity.gov/sci. SUPPLEMENTARY INFORMATION: Dated: January 18, 2011. Michael G. Gallagher, Deputy Commissioner for Budget, Finance and Management. [FR Doc. 2011–1378 Filed 1–24–11; 8:45 am] BILLING CODE 4191–02–P DEPARTMENT OF STATE [Public Notice 7307] mstockstill on DSKH9S0YB1PROD with NOTICES 60-Day Notice of Proposed Information Collection: Form DS–1998E, Foreign Service Officer Test Registration Form Department of State. Notice of Request for public comments. SUMMARY: VerDate Mar<15>2010 18:40 Jan 24, 2011 Jkt 223001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 Social Security Number, contact information, sex, race, national origin, disability, education and work history, and military experience. The information will be used to prepare and issue admission to the Foreign Service Officer Test, to provide data useful for improving future tests, and to conduct research studies based on the test results. Methodology Responses are submitted electronically. Dated: January 13, 2011. Ruben Torres, Executive Director, HR/EX, Department of State. [FR Doc. 2011–1487 Filed 1–24–11; 8:45 am] BILLING CODE 4710–15–P DEPARTMENT OF TRANSPORTATION Office of the Secretary [Docket No. FHWA–2010–0154] Notice of Funding Availability for Applications for Credit Assistance Under the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program Federal Highway Administration (FHWA), Federal Railroad Administration (FRA), Federal Transit Administration (FTA), Maritime Administration (MARAD), Office of the Secretary of Transportation (OST), U.S. Department of Transportation (DOT). ACTION: Notice of funding availability. AGENCY: The DOT’s TIFIA Joint Program Office (JPO) announces the availability of funding to support new applications for credit assistance. Under TIFIA, the DOT provides secured (direct) loans, lines of credit, and loan guarantees to public and private applicants for eligible surface transportation projects of regional or national significance. Projects must meet statutorily specified criteria to be selected for credit assistance. Because demand for the TIFIA program can exceed budgetary resources, the DOT is utilizing periodic fixed-date solicitations that will establish a competitive group of projects to be evaluated against the program objectives. This notice outlines the process that applicants must follow. This notice supersedes the notice published in the Federal Register on January 19, 2011, at 76 FR 3190. DATES: For consideration, Letters of Interest must be submitted electronically via e-mail by 4:30 p.m. SUMMARY: E:\FR\FM\25JAN1.SGM 25JAN1 Federal Register / Vol. 76, No. 16 / Tuesday, January 25, 2011 / Notices EST on March 1, 2011, using the revised form on the TIFIA Web site: https:// www.fhwa.dot.gov/ipd/tifia/ guidance_applications/index.htm. Applicants that have previously submitted Letters of Interest must resubmit an updated letter as outlined below. The application due date will be established after consultation between the TIFIA JPO and the applicant. ADDRESSES: Submit all Letters of Interest to the attention of Mr. Duane Callender at: TIFIACredit@dot.gov. Submitters should receive a confirmation e-mail, but are advised to request a return receipt to confirm transmission. Only Letters of Interest received via e-mail, as provided above, shall be deemed properly filed. FOR FURTHER INFORMATION CONTACT: For further information regarding this notice please contact Duane Callender via email at TIFIACredit@dot.gov or via telephone at 202–366–9644. A TDD is available at 202–366–7687. Substantial information, including the TIFIA Program Guide and application materials, can be obtained from the TIFIA Web site: https:// www.fhwa.dot.gov/ipd/tifia/. SUPPLEMENTARY INFORMATION: Table of Contents mstockstill on DSKH9S0YB1PROD with NOTICES I. Background II. Eligible Projects III. Types of Credit Assistance IV. Threshold Requirements V. Rating Opinions VI. Letters of Interest and Applications VII. Fees VIII. Selection Criteria IX. Program Funding I. Background The Transportation Equity Act for the 21st Century (TEA–21), Public Law 105–178, 112 Stat.107, 241, (as amended by sections 1601–02 of Pub. L. 109–59) established the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA), authorizing the DOT to provide credit assistance in the form of secured (direct) loans, lines of credit, and loan guarantees to public and private applicants for eligible surface transportation projects. The TIFIA regulations (49 CFR part 80) provide specific guidance on the program requirements.1 On January 5, 2001, at 65 FR 2827, the Secretary of Transportation (Secretary) delegated to the FHWA the authority to act as the Executive Agent for the TIFIA program 1 The TIFIA regulations have not been updated to reflect changes enacted in Public Law 109–59, SAFETEA–LU. Where the statute and the regulation conflict, the statute takes precedence. See the TIFIA Program Guide for updated program information. VerDate Mar<15>2010 18:40 Jan 24, 2011 Jkt 223001 (49 CFR 1.48(b)(6)). The TIFIA JPO, an organizational unit in the FHWA Office of Innovative Program Delivery, has responsibility for coordinating program implementation. II. Eligible Projects Highway, passenger rail, transit, bridge, intermodal projects, and intelligent transportation systems may receive credit assistance under TIFIA. Additionally, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA–LU) (Pub. L. 109–59, 119 Stat. 1144) enacted in 2005 expanded eligibility to private rail facilities providing public benefit to highway users and surface transportation infrastructure modifications necessary to facilitate direct intermodal transfer and access into and out of a port terminal. See the revised definition of ‘‘project’’ in 23 U.S.C. 601(a)(8) and Chapter 3 of the TIFIA Program Guide for a description of eligible projects (https:// www.fhwa.dot.gov/ipd/tifia/ guidance_applications/index.htm). III. Types of Credit Assistance The DOT may provide credit assistance in the form of secured (direct) loans, lines of credit, and loan guarantees. These types of credit assistance are defined in 23 U.S.C. 601 and 49 CFR 80.3. Subject to certain conditions, the TIFIA credit facility can hold a subordinate lien on pledged revenues. The maximum amount of TIFIA credit assistance to a project is 33 percent of eligible project costs. IV. Threshold Requirements Projects seeking TIFIA assistance must meet certain statutory threshold requirements. Generally, the minimum size for TIFIA projects is $50 million of eligible project costs; however, the minimum size for TIFIA projects principally involving the installation of an intelligent transportation system is $15 million. Each project seeking TIFIA assistance must apply to the DOT, and must satisfy the applicable State and local transportation planning requirements. Each application must identify a dedicated revenue source to repay the TIFIA loan, and each private applicant must receive public approval for its project as demonstrated by satisfaction of the applicable planning and programming requirements. These eligibility requirements are detailed in 23 U.S.C. 602(a) and Chapter 3 of the TIFIA Program Guide (https:// www.fhwa.dot.gov/ipd/tifia/ guidance_applications/index.htm). PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 4409 V. Rating Opinions The senior debt obligations for each project receiving TIFIA credit assistance must obtain an investment grade rating from at least one nationally recognized credit rating agency, as defined in 23 U.S.C. 601(a)(10) and 49 CFR 80.3. If the TIFIA credit instrument is proposed as the senior debt, then it must receive the investment grade rating. To demonstrate this potential, each application must include a preliminary rating opinion letter from a credit rating agency that addresses the creditworthiness of the senior debt obligations funding the project (i.e., debt obligations which have a lien senior to that of the TIFIA credit instrument on the pledged security) and the default risk of the TIFIA credit instrument. The preliminary rating opinion letter must be based on the financing structure proposed by the applicant and must also conclude that there is a reasonable probability for the senior debt obligations to receive an investment grade rating. A project that does not demonstrate the potential for its senior obligations to receive an investment grade rating will not be considered for TIFIA credit assistance. Letters of Interest submitted pursuant to this notice do not need to include the preliminary rating opinion letter. Only those invited to submit applications will be required to obtain the preliminary rating opinion letter. Each project selected for TIFIA credit assistance must obtain an investment grade rating on its senior debt obligations (which may be the TIFIA credit facility) and a revised opinion on the default risk of the TIFIA credit instrument before the FHWA will execute a credit agreement and disburse funds. More detailed information about these TIFIA credit opinions and ratings may be found in the Program Guide on the TIFIA Web site at https:// www.fhwa.dot.gov/ipd/tifia/ guidance_applications/index.htm. VI. Letters of Interest and Applications Because the demand for credit assistance can exceed budgetary resources, the DOT is utilizing periodic fixed-date solicitations that will establish a competitive group of projects to be evaluated against the TIFIA program objectives. Applicants seeking TIFIA credit assistance must submit a Letter of Interest describing the project fundamentals and addressing the TIFIA selection criteria. For consideration in this funding cycle, Letters of Interest must be submitted by 4:30 p.m. EST via e-mail at: TIFIACredit@dot.gov on E:\FR\FM\25JAN1.SGM 25JAN1 4410 Federal Register / Vol. 76, No. 16 / Tuesday, January 25, 2011 / Notices mstockstill on DSKH9S0YB1PROD with NOTICES March 1, 2011, using the revised form on the TIFIA Web site: https:// www.fhwa.dot.gov/ipd/tifia/guidance_ applications/index.htm. Applicants that have previously submitted Letters of Interest must resubmit an updated letter using the revised form. For the purpose of completing its evaluation, the TIFIA JPO staff may contact an applicant regarding specific information in the Letter of Interest. A public agency that seeks access to TIFIA on behalf of multiple competitors for a project concession must submit the project’s Letter of Interest. Although the public agency would not become the TIFIA borrower, nor even have yet identified the TIFIA applicant, it must provide information sufficient for the DOT to evaluate the project against the TIFIA program objectives. The DOT will not consider Letters of Interest from entities that have not obtained rights to develop the project. After concluding its review of the Letters of Interest, the DOT will invite complete applications (including the preliminary rating opinion letter and detailed plan of finance) for the highestrated projects according to the selection criteria detailed in Section VIII below. The application due date will be established after consultation between the TIFIA JPO and the applicant. An invitation to apply for credit assistance does not guarantee the DOT’s approval, which will remain subject to evaluation based on TIFIA’s statutory credit requirements and established standards in addition to the successful negotiation of all terms and conditions. VII. Fees There is no fee to submit a Letter of Interest. Unless otherwise indicated in a subsequent notice published in the Federal Register, each invited applicant must submit, concurrent with its application, a non-refundable fee of $50,000, an amount based on historical costs incurred by the TIFIA JPO for financial advisory services to help evaluate TIFIA applications. The FHWA no longer accepts paper checks. Payments should be made via Automated Clearing House, at https:// www.pay.gov/paygov/forms/form Instance.html?agencyFormId=18446839. For successful applicants, this fee will be credited toward final payment of a credit processing fee (also referred to as a transaction fee), to be assessed at financial close, to reimburse the TIFIA JPO for actual financial and legal costs. For projects that enter credit negotiations, the DOT will require the borrower to pay at closing or within a specified period following closing, upon invoicing by the TIFIA JPO, an amount VerDate Mar<15>2010 18:40 Jan 24, 2011 Jkt 223001 equal to the actual costs incurred by the TIFIA JPO in procuring the assistance of outside financial advisors and legal counsel through execution of the credit agreement(s) and satisfaction of all funding requirements of those agreements. In the event a final credit agreement is not executed, the borrower is still required to reimburse the DOT for the costs incurred. Typically, the amount of this credit processing fee has ranged from $200,000 to $300,000, although it has been greater for projects that require complex financial structures and extended negotiations. The TIFIA JPO charges each borrower an annual fee for loan servicing activities associated with each TIFIA credit instrument. The current fee, adjusted annually per the Consumer Price Index, is $11,500 per year. Finally, the TIFIA credit agreements will allow the TIFIA JPO to charge, as incurred, a monitoring fee equal to its costs of outside advisory services required to assist the TIFIA JPO in modifying or enforcing the agreement. Applicants may not include any of the fees described above—or any expenses associated with the application process (such as charges associated with obtaining the required preliminary rating opinion letter)—among eligible project costs for the purpose of calculating the maximum 33 percent credit amount. VIII. Selection Criteria The eight TIFIA selection criteria are described in statute at 23 U.S.C. 602(b) and assigned relative weights via regulation at 49 CFR 80.15. The criteria are restated below with (where appropriate) language indicating how the DOT will interpret them. The DOT will give priority to projects that have a significant impact on desirable longterm outcomes for the Nation, a metropolitan area, or a region. Listed in order of relative weight, the TIFIA selection criteria are as follows: (i) The extent to which the project is nationally or regionally significant, in terms of generating economic benefits, supporting international commerce, or otherwise enhancing the national transportation system. This includes consideration of livability: Providing transportation options that are linked with housing and commercial development to improve the economic opportunities and quality of life for people in communities across the U.S.; economic competitiveness: Contributing to the economic competitiveness of the U.S. by improving the long-term efficiency and reliability in the movement of people and goods; and safety: Improving the safety of U.S. PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 transportation facilities and systems and the communities and populations they impact. Relative weight: 20 percent. (ii) The extent to which TIFIA assistance would foster innovative public-private partnerships and attract private debt or equity investment. Relative weight: 20 percent. (iii) The extent to which the project helps maintain or protect the environment. This includes sustainability: Improving energy efficiency, reducing dependence on oil, reducing greenhouse gas emissions, and reducing other transportation-related impacts on ecosystems, including the use of tolling or pricing structures to reduce or manage high levels of congestion on highway facilities and encourage the use of alternative transportation options; and the state of good repair: Improving the condition of existing transportation facilities and systems, with particular emphasis on projects that minimize lifecycle costs and use environmentally sustainable practices and materials. Relative weight: 20 percent. (iv) The creditworthiness of the project, including a determination by the Secretary of Transportation that any financing for the project has appropriate security features to ensure repayment. Relative weight: 12.5 percent. (v) The likelihood that TIFIA assistance would enable the project to proceed at an earlier date than the project would otherwise be able to proceed. Relative weight: 12.5 percent. (vi) The extent to which the project uses new technologies, including intelligent transportation systems, to enhance the efficiency of the project. Relative weight: 5 percent. (vii) The amount of budget authority required to fund the Federal credit instrument made available under TIFIA. Relative weight: 5 percent. (viii) The extent to which TIFIA assistance would reduce the contribution of Federal grant assistance to the project. Relative weight: 5 percent. Note that, when evaluating the Letters of Interest, the information needed to address criterion (iv), creditworthiness, and criterion (vii), budget authority, is unlikely to be available in sufficient detail. Therefore, the DOT will not employ these two criteria when reviewing the Letters of Interest. However, DOT will consider these criteria when reviewing project applications. IX. Program Funding The SAFETEA–LU authorized $122 million annually from the Highway Trust Fund for fiscal years 2005–2009 in E:\FR\FM\25JAN1.SGM 25JAN1 Federal Register / Vol. 76, No. 16 / Tuesday, January 25, 2011 / Notices TIFIA budget authority to pay the subsidy cost of credit assistance. As of the publication date of this notice, extensions of the surface transportation reauthorization act have been enacted continuing highway programs that were authorized through fiscal year 2009, and the expectation is that Congress will reauthorize an equivalent amount of budget authority for the TIFIA program in the future Any budget authority not obligated in the fiscal year for which it is authorized remains available for obligation in subsequent years. The TIFIA budget authority is subject to an annual obligation limitation that may be established in appropriations law. Like all funds subject to the annual Federalaid obligation ceiling, the amount of TIFIA budget authority available in a given year may be less than the amount authorized for that fiscal year. Consistent with the Federal Credit Reform Act of 1990 and the requirements of the Office of Management and Budget, the subsidy cost of a loan is affected by recovery assumptions, allowance for defaults, the borrower’s interest rate, and fees. The factors that most heavily influence the subsidy cost of a TIFIA loan fall into the recoveries category (for example, the repayment pledge and whether the debt is senior or subordinate) and the allowance for defaults category (including the credit rating on the debt and the degree of back-loading). The borrower’s interest rate will also affect the subsidy cost of the TIFIA loan. The final subsidy cost estimate is expressed as a percentage of the principal amount of the credit assistance. Authority: 23 U.S.C. 601–609; 49 CFR 1.48(b)(6); 23 CFR Part 180; 49 CFR Part 80; 49 CFR Part 261; 49 CFR Part 640. Issued on: January 20, 2011. Victor M. Mendez, Federal Highway Administrator. [FR Doc. 2011–1460 Filed 1–24–11; 8:45 am] BILLING CODE 4910–9X–P DEPARTMENT OF TRANSPORTATION mstockstill on DSKH9S0YB1PROD with NOTICES Federal Aviation Administration Notice of Intent To Rule on Application 10–06–C–00–BOS To Impose and Use the Revenue From a Passenger Facility Charge (PFC) at General Edward Lawrence Logan International Airport, East Boston, MA Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Request for comments, notice of Intent to Rule on a PFC application. AGENCY: VerDate Mar<15>2010 18:40 Jan 24, 2011 Jkt 223001 This document requests public comment on the supplementary material provided by the applicant, Massachusetts Port Authority (Massport), in response to the FAA’s requests for clarification of its application to impose and use a PFC at General Edward Lawrence Logan International Airport, East Boston, Massachusetts. The FAA received additional documentation and information in support of Massport’s PFC application, received April 15, 2010. The FAA is soliciting public comment on this supplementary material. Once received and following the FAA’s review of any comments submitted pursuant to this notice, a Final Agency Decision is anticipated either approving or disapproving the application, in whole or in part, within 60 days of the date of this Notice. The ruling will be issued under the provisions of the 49 U.S.C. 40117 and 14 Code of Federal Regulations part 158 (14 CFR part 158). DATES: Comments must be received on or before February 24, 2011. ADDRESSES: Comments on this supplemental material may be mailed or delivered in triplicate to the FAA at the following address: Ms. Priscilla Scott, PFC Program Manager, Federal Aviation Administration, Airports Division, 12 New England Executive Park, Burlington, Massachusetts 01803. In addition, one copy of any comments submitted to the FAA must be mailed or delivered to Mr. Thomas Kinton, CEO and Executive Director of the Massachusetts Port Authority at the following address: One Harborside Drive, Suite 200S, East Boston, Massachusetts 02128. FOR FURTHER INFORMATION CONTACT: Priscilla Scott, PFC Program Manager, Federal Aviation Administration, Airports Division, 12 New England Executive Park, Burlington, Massachusetts 01803, (781) 238–7614. The application may be reviewed in person at 16 New England Executive Park, Burlington, Massachusetts. Please call to set up an appointment. In addition, any person may, upon request, inspect the application, notice and other documents germane to the application in person at One Harborside Drive, Suite 200S, East Boston, Massachusetts 02128. Please contact Massport at (617) 561–1600 to set up an appointment. SUPPLEMENTARY INFORMATION: The FAA invites public comment on the additional documentation provided by the applicant in response to the FAA’s requests for clarification in support of Massport’s application to impose and SUMMARY: PO 00000 Frm 00134 Fmt 4703 Sfmt 9990 4411 use a PFC at Boston-Logan International Airport, The supplemental material includes all documentation provided to the FAA by April 15, 2010, which was the date of Massport’s submission of its PFC application for collection and use of PFC revenue for various projects at Boston-Logan International Airport. The FAA will issue a decision on Massport’s PFC application under the provisions of the 49 U.S.C. 40117 and 14 CFR part 158. Background: On April 15, 2010, Massport submitted its application to impose and use a PFC at Boston-Logan International Airport On May 25, 2010, the FAA sent a letter to Massport notifying it that the PFC application was substantially complete. The FAA’s decision making process on PFC applications may include publishing a notice in the Federal Register informing the public of the FAA’s intention to rule on the pending application and inviting public comment on that application. Consideration is given to all comments submitted pursuant to the Federal Register Notice during FAA’s deliberations on the application. The FAA responds to the substantive comments in its Final Agency Decision. In conjunction with rendering its decisions on PFC applications, the FAA determines the PFC eligibility for each project, and whether the eligible projects are adequately justified. In reviewing the application submitted by Massport, the FAA discovered that further clarification would be helpful to make its required determinations. Accordingly, the FAA asked Massport to clarify certain information on the eligibility of costs related to Project #42—Terminal ‘‘A’’ Development. In response to the FAA’s requests, Massport provided supplemental material in the form of e-mails, airline lease documents, written discussions of Massport’s lease practices, and rates and charges information which includes facility rent calculations indicating the uses of PFC revenues. Issued in Burlington, Massachusetts on January 6, 2011. Bryon H. Rakoff, Manager, Planning and Program Branch, Airports Division, New England Region. [FR Doc. 2011–1411 Filed 1–24–11; 8:45 am] BILLING CODE P E:\FR\FM\25JAN1.SGM 25JAN1

Agencies

[Federal Register Volume 76, Number 16 (Tuesday, January 25, 2011)]
[Notices]
[Pages 4408-4411]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1460]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. FHWA-2010-0154]


Notice of Funding Availability for Applications for Credit 
Assistance Under the Transportation Infrastructure Finance and 
Innovation Act (TIFIA) Program

AGENCY: Federal Highway Administration (FHWA), Federal Railroad 
Administration (FRA), Federal Transit Administration (FTA), Maritime 
Administration (MARAD), Office of the Secretary of Transportation 
(OST), U.S. Department of Transportation (DOT).

ACTION: Notice of funding availability.

-----------------------------------------------------------------------

SUMMARY: The DOT's TIFIA Joint Program Office (JPO) announces the 
availability of funding to support new applications for credit 
assistance. Under TIFIA, the DOT provides secured (direct) loans, lines 
of credit, and loan guarantees to public and private applicants for 
eligible surface transportation projects of regional or national 
significance. Projects must meet statutorily specified criteria to be 
selected for credit assistance.
    Because demand for the TIFIA program can exceed budgetary 
resources, the DOT is utilizing periodic fixed-date solicitations that 
will establish a competitive group of projects to be evaluated against 
the program objectives. This notice outlines the process that 
applicants must follow. This notice supersedes the notice published in 
the Federal Register on January 19, 2011, at 76 FR 3190.

DATES: For consideration, Letters of Interest must be submitted 
electronically via e-mail by 4:30 p.m.

[[Page 4409]]

EST on March 1, 2011, using the revised form on the TIFIA Web site: 
https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm. 
Applicants that have previously submitted Letters of Interest must 
resubmit an updated letter as outlined below.
    The application due date will be established after consultation 
between the TIFIA JPO and the applicant.

ADDRESSES: Submit all Letters of Interest to the attention of Mr. Duane 
Callender at: TIFIACredit@dot.gov. Submitters should receive a 
confirmation e-mail, but are advised to request a return receipt to 
confirm transmission. Only Letters of Interest received via e-mail, as 
provided above, shall be deemed properly filed.

FOR FURTHER INFORMATION CONTACT: For further information regarding this 
notice please contact Duane Callender via e-mail at TIFIACredit@dot.gov 
or via telephone at 202-366-9644. A TDD is available at 202-366-7687. 
Substantial information, including the TIFIA Program Guide and 
application materials, can be obtained from the TIFIA Web site: https://www.fhwa.dot.gov/ipd/tifia/.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Eligible Projects
III. Types of Credit Assistance
IV. Threshold Requirements
V. Rating Opinions
VI. Letters of Interest and Applications
VII. Fees
VIII. Selection Criteria
IX. Program Funding

I. Background

    The Transportation Equity Act for the 21st Century (TEA-21), Public 
Law 105-178, 112 Stat.107, 241, (as amended by sections 1601-02 of Pub. 
L. 109-59) established the Transportation Infrastructure Finance and 
Innovation Act of 1998 (TIFIA), authorizing the DOT to provide credit 
assistance in the form of secured (direct) loans, lines of credit, and 
loan guarantees to public and private applicants for eligible surface 
transportation projects. The TIFIA regulations (49 CFR part 80) provide 
specific guidance on the program requirements.\1\ On January 5, 2001, 
at 65 FR 2827, the Secretary of Transportation (Secretary) delegated to 
the FHWA the authority to act as the Executive Agent for the TIFIA 
program (49 CFR 1.48(b)(6)). The TIFIA JPO, an organizational unit in 
the FHWA Office of Innovative Program Delivery, has responsibility for 
coordinating program implementation.
---------------------------------------------------------------------------

    \1\ The TIFIA regulations have not been updated to reflect 
changes enacted in Public Law 109-59, SAFETEA-LU. Where the statute 
and the regulation conflict, the statute takes precedence. See the 
TIFIA Program Guide for updated program information.
---------------------------------------------------------------------------

II. Eligible Projects

    Highway, passenger rail, transit, bridge, intermodal projects, and 
intelligent transportation systems may receive credit assistance under 
TIFIA. Additionally, the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Pub. L. 
109-59, 119 Stat. 1144) enacted in 2005 expanded eligibility to private 
rail facilities providing public benefit to highway users and surface 
transportation infrastructure modifications necessary to facilitate 
direct intermodal transfer and access into and out of a port terminal. 
See the revised definition of ``project'' in 23 U.S.C. 601(a)(8) and 
Chapter 3 of the TIFIA Program Guide for a description of eligible 
projects (https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm).

III. Types of Credit Assistance

    The DOT may provide credit assistance in the form of secured 
(direct) loans, lines of credit, and loan guarantees. These types of 
credit assistance are defined in 23 U.S.C. 601 and 49 CFR 80.3. Subject 
to certain conditions, the TIFIA credit facility can hold a subordinate 
lien on pledged revenues. The maximum amount of TIFIA credit assistance 
to a project is 33 percent of eligible project costs.

IV. Threshold Requirements

    Projects seeking TIFIA assistance must meet certain statutory 
threshold requirements. Generally, the minimum size for TIFIA projects 
is $50 million of eligible project costs; however, the minimum size for 
TIFIA projects principally involving the installation of an intelligent 
transportation system is $15 million. Each project seeking TIFIA 
assistance must apply to the DOT, and must satisfy the applicable State 
and local transportation planning requirements. Each application must 
identify a dedicated revenue source to repay the TIFIA loan, and each 
private applicant must receive public approval for its project as 
demonstrated by satisfaction of the applicable planning and programming 
requirements. These eligibility requirements are detailed in 23 U.S.C. 
602(a) and Chapter 3 of the TIFIA Program Guide (https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm).

V. Rating Opinions

    The senior debt obligations for each project receiving TIFIA credit 
assistance must obtain an investment grade rating from at least one 
nationally recognized credit rating agency, as defined in 23 U.S.C. 
601(a)(10) and 49 CFR 80.3. If the TIFIA credit instrument is proposed 
as the senior debt, then it must receive the investment grade rating.
    To demonstrate this potential, each application must include a 
preliminary rating opinion letter from a credit rating agency that 
addresses the creditworthiness of the senior debt obligations funding 
the project (i.e., debt obligations which have a lien senior to that of 
the TIFIA credit instrument on the pledged security) and the default 
risk of the TIFIA credit instrument. The preliminary rating opinion 
letter must be based on the financing structure proposed by the 
applicant and must also conclude that there is a reasonable probability 
for the senior debt obligations to receive an investment grade rating. 
A project that does not demonstrate the potential for its senior 
obligations to receive an investment grade rating will not be 
considered for TIFIA credit assistance.
    Letters of Interest submitted pursuant to this notice do not need 
to include the preliminary rating opinion letter. Only those invited to 
submit applications will be required to obtain the preliminary rating 
opinion letter.
    Each project selected for TIFIA credit assistance must obtain an 
investment grade rating on its senior debt obligations (which may be 
the TIFIA credit facility) and a revised opinion on the default risk of 
the TIFIA credit instrument before the FHWA will execute a credit 
agreement and disburse funds. More detailed information about these 
TIFIA credit opinions and ratings may be found in the Program Guide on 
the TIFIA Web site at https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm.

VI. Letters of Interest and Applications

    Because the demand for credit assistance can exceed budgetary 
resources, the DOT is utilizing periodic fixed-date solicitations that 
will establish a competitive group of projects to be evaluated against 
the TIFIA program objectives.
    Applicants seeking TIFIA credit assistance must submit a Letter of 
Interest describing the project fundamentals and addressing the TIFIA 
selection criteria. For consideration in this funding cycle, Letters of 
Interest must be submitted by 4:30 p.m. EST via e-mail at: 
TIFIACredit@dot.gov on

[[Page 4410]]

March 1, 2011, using the revised form on the TIFIA Web site: https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm. Applicants 
that have previously submitted Letters of Interest must resubmit an 
updated letter using the revised form. For the purpose of completing 
its evaluation, the TIFIA JPO staff may contact an applicant regarding 
specific information in the Letter of Interest.
    A public agency that seeks access to TIFIA on behalf of multiple 
competitors for a project concession must submit the project's Letter 
of Interest. Although the public agency would not become the TIFIA 
borrower, nor even have yet identified the TIFIA applicant, it must 
provide information sufficient for the DOT to evaluate the project 
against the TIFIA program objectives. The DOT will not consider Letters 
of Interest from entities that have not obtained rights to develop the 
project.
    After concluding its review of the Letters of Interest, the DOT 
will invite complete applications (including the preliminary rating 
opinion letter and detailed plan of finance) for the highest-rated 
projects according to the selection criteria detailed in Section VIII 
below. The application due date will be established after consultation 
between the TIFIA JPO and the applicant.
    An invitation to apply for credit assistance does not guarantee the 
DOT's approval, which will remain subject to evaluation based on 
TIFIA's statutory credit requirements and established standards in 
addition to the successful negotiation of all terms and conditions.

VII. Fees

    There is no fee to submit a Letter of Interest. Unless otherwise 
indicated in a subsequent notice published in the Federal Register, 
each invited applicant must submit, concurrent with its application, a 
non-refundable fee of $50,000, an amount based on historical costs 
incurred by the TIFIA JPO for financial advisory services to help 
evaluate TIFIA applications. The FHWA no longer accepts paper checks. 
Payments should be made via Automated Clearing House, at https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=18446839. For 
successful applicants, this fee will be credited toward final payment 
of a credit processing fee (also referred to as a transaction fee), to 
be assessed at financial close, to reimburse the TIFIA JPO for actual 
financial and legal costs.
    For projects that enter credit negotiations, the DOT will require 
the borrower to pay at closing or within a specified period following 
closing, upon invoicing by the TIFIA JPO, an amount equal to the actual 
costs incurred by the TIFIA JPO in procuring the assistance of outside 
financial advisors and legal counsel through execution of the credit 
agreement(s) and satisfaction of all funding requirements of those 
agreements. In the event a final credit agreement is not executed, the 
borrower is still required to reimburse the DOT for the costs incurred. 
Typically, the amount of this credit processing fee has ranged from 
$200,000 to $300,000, although it has been greater for projects that 
require complex financial structures and extended negotiations.
    The TIFIA JPO charges each borrower an annual fee for loan 
servicing activities associated with each TIFIA credit instrument. The 
current fee, adjusted annually per the Consumer Price Index, is $11,500 
per year.
    Finally, the TIFIA credit agreements will allow the TIFIA JPO to 
charge, as incurred, a monitoring fee equal to its costs of outside 
advisory services required to assist the TIFIA JPO in modifying or 
enforcing the agreement.
    Applicants may not include any of the fees described above--or any 
expenses associated with the application process (such as charges 
associated with obtaining the required preliminary rating opinion 
letter)--among eligible project costs for the purpose of calculating 
the maximum 33 percent credit amount.

VIII. Selection Criteria

    The eight TIFIA selection criteria are described in statute at 23 
U.S.C. 602(b) and assigned relative weights via regulation at 49 CFR 
80.15. The criteria are restated below with (where appropriate) 
language indicating how the DOT will interpret them. The DOT will give 
priority to projects that have a significant impact on desirable long-
term outcomes for the Nation, a metropolitan area, or a region.
    Listed in order of relative weight, the TIFIA selection criteria 
are as follows:
    (i) The extent to which the project is nationally or regionally 
significant, in terms of generating economic benefits, supporting 
international commerce, or otherwise enhancing the national 
transportation system. This includes consideration of livability: 
Providing transportation options that are linked with housing and 
commercial development to improve the economic opportunities and 
quality of life for people in communities across the U.S.; economic 
competitiveness: Contributing to the economic competitiveness of the 
U.S. by improving the long-term efficiency and reliability in the 
movement of people and goods; and safety: Improving the safety of U.S. 
transportation facilities and systems and the communities and 
populations they impact. Relative weight: 20 percent.
    (ii) The extent to which TIFIA assistance would foster innovative 
public-private partnerships and attract private debt or equity 
investment. Relative weight: 20 percent.
    (iii) The extent to which the project helps maintain or protect the 
environment. This includes sustainability: Improving energy efficiency, 
reducing dependence on oil, reducing greenhouse gas emissions, and 
reducing other transportation-related impacts on ecosystems, including 
the use of tolling or pricing structures to reduce or manage high 
levels of congestion on highway facilities and encourage the use of 
alternative transportation options; and the state of good repair: 
Improving the condition of existing transportation facilities and 
systems, with particular emphasis on projects that minimize lifecycle 
costs and use environmentally sustainable practices and materials. 
Relative weight: 20 percent.
    (iv) The creditworthiness of the project, including a determination 
by the Secretary of Transportation that any financing for the project 
has appropriate security features to ensure repayment. Relative weight: 
12.5 percent.
    (v) The likelihood that TIFIA assistance would enable the project 
to proceed at an earlier date than the project would otherwise be able 
to proceed. Relative weight: 12.5 percent.
    (vi) The extent to which the project uses new technologies, 
including intelligent transportation systems, to enhance the efficiency 
of the project. Relative weight: 5 percent.
    (vii) The amount of budget authority required to fund the Federal 
credit instrument made available under TIFIA. Relative weight: 5 
percent.
    (viii) The extent to which TIFIA assistance would reduce the 
contribution of Federal grant assistance to the project. Relative 
weight: 5 percent.
    Note that, when evaluating the Letters of Interest, the information 
needed to address criterion (iv), creditworthiness, and criterion 
(vii), budget authority, is unlikely to be available in sufficient 
detail. Therefore, the DOT will not employ these two criteria when 
reviewing the Letters of Interest. However, DOT will consider these 
criteria when reviewing project applications.

IX. Program Funding

    The SAFETEA-LU authorized $122 million annually from the Highway 
Trust Fund for fiscal years 2005-2009 in

[[Page 4411]]

TIFIA budget authority to pay the subsidy cost of credit assistance. As 
of the publication date of this notice, extensions of the surface 
transportation reauthorization act have been enacted continuing highway 
programs that were authorized through fiscal year 2009, and the 
expectation is that Congress will reauthorize an equivalent amount of 
budget authority for the TIFIA program in the future Any budget 
authority not obligated in the fiscal year for which it is authorized 
remains available for obligation in subsequent years. The TIFIA budget 
authority is subject to an annual obligation limitation that may be 
established in appropriations law. Like all funds subject to the annual 
Federal-aid obligation ceiling, the amount of TIFIA budget authority 
available in a given year may be less than the amount authorized for 
that fiscal year.
    Consistent with the Federal Credit Reform Act of 1990 and the 
requirements of the Office of Management and Budget, the subsidy cost 
of a loan is affected by recovery assumptions, allowance for defaults, 
the borrower's interest rate, and fees. The factors that most heavily 
influence the subsidy cost of a TIFIA loan fall into the recoveries 
category (for example, the repayment pledge and whether the debt is 
senior or subordinate) and the allowance for defaults category 
(including the credit rating on the debt and the degree of back-
loading). The borrower's interest rate will also affect the subsidy 
cost of the TIFIA loan. The final subsidy cost estimate is expressed as 
a percentage of the principal amount of the credit assistance.

    Authority:  23 U.S.C. 601-609; 49 CFR 1.48(b)(6); 23 CFR Part 
180; 49 CFR Part 80; 49 CFR Part 261; 49 CFR Part 640.

    Issued on: January 20, 2011.
Victor M. Mendez,
Federal Highway Administrator.
[FR Doc. 2011-1460 Filed 1-24-11; 8:45 am]
BILLING CODE 4910-9X-P
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