Letters of Interest for Credit Assistance Under the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program, 45411-45415 [2012-18785]
Download as PDF
Federal Register / Vol. 77, No. 147 / Tuesday, July 31, 2012 / Notices
Dated: July 16, 2012.
Stephen Randolph,
Executive Secretary, Advisory Committee on
Historical Diplomatic Documentation,
Department of State.
[FR Doc. 2012–18662 Filed 7–30–12; 8:45 am]
BILLING CODE 4710–11–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of
Transportation
Letters of Interest for Credit
Assistance Under the Transportation
Infrastructure Finance and Innovation
Act (TIFIA) Program
Office of the Secretary of
Transportation (OST), U.S. Department
of Transportation (DOT), Federal
Highway Administration (FHWA),
Federal Railroad Administration (FRA),
Federal Transit Administration (FTA).
ACTION: Notice of funding availability
and request for comments.
AGENCIES:
Pursuant to the recently
enacted Moving Ahead for Progress in
the 21st Century Act (MAP–21), DOT
announces the availability of funding
authorized in the amount of $1.75
billion ($750 million in Federal Fiscal
Year (FY) 2013 funds and $1 billion in
FY 2014 funds (and any funds that may
be available from prior fiscal years)) to
provide TIFIA credit assistance for
eligible projects. The FY 2013 and FY
2014 funds are subject to an annual
obligation limitation that may be
established in appropriations law. The
amount of TIFIA budget authority
available in a given year may be less
than the amount authorized for that
fiscal year. Under TIFIA, DOT provides
secured (direct) loans, lines of credit,
and loan guarantees to public and
private applicants for eligible surface
transportation projects. Projects must
meet statutorily specified eligibility
criteria to receive credit assistance.
This notice outlines the process that
project sponsors must follow in seeking
TIFIA credit assistance. DOT is
publishing this notice to give project
sponsors an opportunity to submit
Letters of Interest for the newly
authorized funding as soon as possible.
However, in addition to authorizing
more funding for TIFIA credit
assistance, MAP–21 made some
significant changes to the TIFIA
program’s structure, including the terms
and conditions pursuant to which DOT
can provide TIFIA credit assistance.
While this notice provides guidance
about how DOT will implement some of
the changes made by MAP–21, it does
mstockstill on DSK4VPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
16:48 Jul 30, 2012
Jkt 226001
not provide guidance about how DOT
will implement all of these changes.
Further information about the changes
made by MAP–21 and additional DOT
guidance for implementation of these
provisions is provided in Part VII below.
Also, Part VII invites interested parties
to submit comments about DOT’s
implementation of MAP–21 and DOT’s
guidance for awarding TIFIA credit
assistance. Unless otherwise noted,
statutory section references in this
notice are to sections of title 23 of the
U.S. Code, as amended by MAP–21,
which takes effect on October 1, 2012.
Letter of Interest Submission: All
project sponsors wishing to apply for
TIFIA credit assistance must first submit
a Letter of Interest, as more fully
described in this notice of funding
availability. Letters of Interest will be
received on a rolling basis commencing
on the date hereof, using the form on the
TIFIA Web site: https://
www.fhwa.dot.gov/ipd/tifia/
guidance_applications/index.htm.
Project sponsors that have previously
submitted Letters of Interest for a prior
fiscal year’s funding, but have not been
asked by DOT to submit an application
as of the date of this notice, must submit
a new Letter of Interest to be considered
for the funding described in this notice
of funding availability.
Addresses for Letters of Interest:
Submit all Letters of Interest to the
attention of Mr. Duane Callender via
email at: TIFIACredit@dot.gov.
Submitters should receive a
confirmation email, but are advised to
request a return receipt to confirm
transmission. Only Letters of Interest
received via email, as provided above,
shall be deemed properly filed.
Addresses for Comments: You must
include the agency name (Office of the
Secretary of Transportation) and the
docket number DOT–OST–2012–0130
with your comments. To ensure your
comments are not entered into the
docket more than once, please submit
comments, identified by the docket
number DOT–OST–2012–0130, by only
one of the following methods:
Web site: The U.S. Government
electronic docket site is
www.regulations.gov. Go to this Web
site and follow the instructions for
submitting comments into docket
number DOT–OST–2012–0130;
Fax: Telefax comments to: 202–366–
2908.
Mail: Mail your comments to U.S.
Department of Transportation, 1200
New Jersey Avenue SE., Docket
Operations, M–30, Room W12–140,
Washington, DC 20590; or
Hand Delivery: Bring your comments
to the U.S. Department of
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
45411
Transportation, 1200 New Jersey
Avenue SE., Docket Operations, M–30,
West Building Ground Floor, Room
W12–140, Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
Instructions for Submitting
Comments: You must include the
agency name (Office of the Secretary of
Transportation) and Docket number
DOT–OST–2012–0130 for this notice at
the beginning of your comments. You
should submit two copies of your
comments if you submit them by mail
or courier. For confirmation that the
Office of the Secretary of Transportation
has received your comments you must
include a self-addressed stamped
postcard. Note that all comments
received will be posted without change
to www.regulations.gov, including any
personal information provided, and will
be available to Internet users. You may
review the Department’s complete
Privacy Act Statement in the Federal
Register published April 11, 2000 (65
FR 19477), or you may visit
www.regulations.gov.
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) 366–1059. 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/. The TIFIA
Program Guide is being updated to
reflect changes to the program under
MAP–21.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Program Funding
III. Eligible Projects
IV. Types of Credit Assistance
V. Eligibility Requirements
VI. Application Process
VII. Additional Guidance and Request for
Comments
I. Background
The Transportation Equity Act for the
21st Century (TEA–21), Public Law
105–178, 112 Stat. 107, 241 established
the Transportation Infrastructure
Finance and Innovation Act of 1998
(TIFIA), authorizing 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. In 2005,
Congress enacted the Safe, Accountable,
Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA–LU)
E:\FR\FM\31JYN1.SGM
31JYN1
45412
Federal Register / Vol. 77, No. 147 / Tuesday, July 31, 2012 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
(Pub. L. 109–59, 119 Stat. 1144), which
made a number of amendments to TIFIA
including lowering the estimated project
cost thresholds and expanding
eligibility for TIFIA credit assistance.
On July 6, 2012, the President signed
into law MAP–21 (Pub. L. 112–141),
which provided for substantial changes
in the TIFIA credit program under
Sections 2001 and 2002 of MAP–21
(such sections are referred to in MAP–
21 as the America Fast Forward
Financing Innovation Act of 2012). This
notice of funding availability addresses
certain changes to the TIFIA credit
program made by MAP–21 and solicits
Letters of Interest for the funding made
available under that law. The TIFIA
program is a departmental program. The
Office of the Assistant Secretary for
Budget and Programs and Chief
Financial Officer oversees the TIFIA
program and the Joint Program Office on
behalf of the Secretary, including the
evaluation of individual projects, and
provides overall policy direction and
program decisions for the TIFIA
program. Final approval of credit
assistance is reserved for the Secretary.
II. Program Funding
MAP–21 authorizes $750 million in
FY 2013 and $1 billion in FY 2014 in
TIFIA budget authority from the
Highway Trust Fund to pay the subsidy
cost of credit assistance. Additional
funds may also be available from budget
authority carried over from previous
fiscal years. Any budget authority not
obligated in the fiscal year for which it
is authorized remains available for
obligation in subsequent years.1 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.
After reductions for administrative
expenses and application of the annual
obligation limitation, TIFIA will have
approximately $690 million available in
FY 2013 and $920 million in FY 2014
to provide credit subsidy support to
projects. Although dependent on the
individual risk profile of each credit
instrument, collectively, and based on
historic subsidy costs, this budget
authority could support approximately
$6.9 billion in lending capacity in FY
1 If the cumulative unobligated and uncommitted
balance of funding available as of April 1 of any
fiscal year beginning in FY 2014 is more than 75
percent of the amount made available for such fiscal
year, then the Secretary must distribute the amount
in excess of 75 percent of such amount among the
States.
VerDate Mar<15>2010
16:48 Jul 30, 2012
Jkt 226001
2013 and $9.2 billion in lending
capacity in FY 2014. Given statutory
changes in the TIFIA credit program
under MAP–21, and the need to
calculate credit subsidies on a projectby-project basis, actual lending capacity
could vary.
III. Eligible Projects
DOT has provided TIFIA credit
assistance across a broad range of
project types, including a variety of
transportation modes and the surface
transportation components of
multifaceted development and
redevelopment projects. Generally,
eligible projects include highway
projects, passenger rail projects, transit
and intermodal projects, private rail
facilities providing public benefit to
highway users, surface transportation
infrastructure modifications necessary
to facilitate direct intermodal transfer
and access into and out of a port
terminal, intelligent transportation
systems, surface transportation projects
eligible for Federal assistance under title
23 or title 49 of the U.S. Code,
international bridges and tunnels, and
intercity passenger bus or rail facilities
and vehicles. Additionally, MAP–21
expands eligibility to include related
improvement projects grouped together,
so long as the individual components
are eligible and the related projects are
secured by a common pledge.
IV. Types of Credit Assistance
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
Section 601. The TIFIA credit facility,
which must have a senior or seniorparity lien in the event of bankruptcy,
liquidation or insolvency, can be
subordinate as to cash flows absent such
an event.2 MAP–21 increases the
maximum amount for a TIFIA secured
loan for a project to 49 percent 3 of the
project’s eligible project costs. For a
TIFIA line of credit, the maximum
amount remains at 33 percent of the
project’s eligible project costs. Project
2 MAP–21 includes a new provision pursuant to
which a waiver of TIFIA’s nonsubordination
requirement may be provided in connection with
secured loans or lines of credit for public agency
borrowers having senior bonds under preexisting
indentures, so long as (i) the TIFIA loan is rated A
or higher, (ii) the revenue pledge is not affected by
project performance or is a system pledge and (iii)
TIFIA is financing 33 percent or less of the eligible
project costs. However, in such cases, the maximum
credit subsidy to be paid by the Government may
not be more than 10 percent of the principal
amount of the loan, and the obligor is responsible
to pay any remaining subsidy cost.
3 Limited to 33 percent where the
nonsubordination requirement is waived, as
described in footnote 3.
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
sponsors may not include any of the
fees assessed by TIFIA, or costs related
to the application process (such as
charges associated with obtaining the
required preliminary rating opinion
letter referenced in Part VI), among
eligible project costs for the purpose of
calculating the maximum 49 or 33
percent credit amount. Project sponsors
should identify in each Letter of Interest
the level of funding (including the
percentage of eligible project costs)
being requested, as specified in Part VI.
Section 603(b)(4) provides that the
interest rate on a secured loan may not
be less than the yield on U.S. Treasury
securities of a similar maturity to the
maturity of the secured loan on the date
of execution of the loan agreement (for
lines of credit, Section 604(b)(4)
provides that the interest rate may not
be lower than the 30-year rate for U.S.
Treasury securities, as of the date of
execution of the line of credit
agreement) (the Treasury Rate). In
general, the TIFIA interest rate is equal
to the Treasury Rate on the date of
execution of the TIFIA credit
instrument. However, MAP–21 allows
for 10 percent of the TIFIA program’s
budget authority to be provided to rural
infrastructure projects at a reduced
interest rate of one-half of the Treasury
Rate. Rural infrastructure projects are
defined in MAP–21 as surface
transportation infrastructure projects
located in any area other than a city
with a population of more than 250,000
inhabitants within the city limits. The
reduced interest rate applies only to
rural projects funded with the 10
percent of budget authority set-aside.
To the extent adequate funds may not
be available to provide a reduced
interest rate to all rural infrastructure
projects submitting Letters of Interest,
DOT may prioritize rural infrastructure
projects to receive the reduced rate
based on the project’s (i) location
outside of an urbanized area (as defined
in Section 101(a)(34)), (ii) alignment
with MAP–21’s reduced total minimum
eligible project cost requirement of $25
million for rural infrastructure projects
(as noted in Part V below), and (iii)
readiness to proceed, to avoid
redistribution pursuant to the directive
in MAP–21 that any amounts set aside
for rural infrastructure that remain
unobligated by June 1 of the fiscal year
for which the amounts were set aside
shall be available for obligation by the
Secretary on projects other than rural
infrastructure projects.
In addition, MAP–21 allows existing
Federal financing instruments for rural
infrastructure projects to be refinanced
with TIFIA credit assistance.
E:\FR\FM\31JYN1.SGM
31JYN1
Federal Register / Vol. 77, No. 147 / Tuesday, July 31, 2012 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
V. Eligibility Requirements
A project must meet all of the
eligibility criteria set forth in Section
602(a) to receive TIFIA credit assistance.
For instance, projects seeking TIFIA
assistance must meet certain statutory
threshold requirements for project costs.
Generally, the minimum size for TIFIA
projects are those having at least $50
million in total eligible project costs;
however, the minimum size for TIFIA
projects principally involving the
installation of an intelligent
transportation system is $15 million.
MAP–21 requires a minimum of $25
million in total eligible project costs for
rural infrastructure projects (as defined
in Part IV above).
Each project seeking TIFIA assistance
must submit an application acceptable
to the Secretary pursuant to the process
set forth in this notice, and must satisfy
applicable State and local transportation
planning requirements. Each private
applicant must receive public approval
for its project as demonstrated by
satisfaction of the applicable planning
and programming requirements. Each
project must have a dedicated revenue
source to repay the TIFIA loan. Projects
receiving TIFIA credit assistance have
been supported by a variety of revenue
sources, including tolls, user fees,
payments owing to the obligor under a
public-private partnership (or
availability payments), and other
dedicated revenue sources that also
secure or fund the project obligations
(including real estate tax increments,
interjurisdictional funding agreements
and room and sales taxes).
The eligibility criteria also require a
determination by DOT that the project is
creditworthy, which must be based on,
at a minimum: (a) A rate covenant, if
applicable, (b) adequate coverage
requirements to ensure repayment, and
(c) meeting the rating requirements set
forth in Part VI below. DOT will also
utilize a report and recommendation
from an independent financial advisor
and any other information it needs to
determine a project’s creditworthiness.
Section 602(a) further requires that
each project: (i) Foster (if appropriate)
partnerships that attract public and
private investment for the project, (ii)
enable the project to proceed at an
earlier date than the project would
otherwise be able to proceed or reduce
lifecycle costs (including debt service
costs) of the project, and (iii) reduce the
contribution of Federal grant assistance
for the project.
MAP–21 provides that all projects
demonstrate that the construction
contracting process for the project can
commence no more than 90 days after
VerDate Mar<15>2010
16:48 Jul 30, 2012
Jkt 226001
execution of a TIFIA credit instrument.
MAP–21 codifies an already-existing
regulation barring obligation of credit
assistance for a project until it receives
a categorical exclusion, finding of no
significant impact or record of decision,
pursuant to the National Environmental
Policy Act.
VI. Application Process
MAP–21 establishes a multi-step
application process for TIFIA credit
assistance. This process begins with the
submission of a Letter of Interest and
determination of eligibility. Only after a
project sponsor has submitted a Letter of
Interest and met all statutory eligibility
requirements will the project sponsor be
invited to submit an application.
The Letter of Interest must (i) describe
the project and the location, purpose,
and cost of the project, (ii) outline the
proposed financial plan, including the
requested credit assistance and the
proposed obligor, (iii) provide a status
of environmental review, and (iv)
provide information regarding
satisfaction of other eligibility
requirements of the TIFIA credit
program. Letters of Interest must be
submitted using the form on the TIFIA
Web site: https://www.fhwa.dot.gov/ipd/
tifia/guidance_applications/index.htm.
DOT has revised the form for the Letter
of Interest to reflect changes made to the
TIFIA program by MAP–21.4
The Letter of Interest form requires
project sponsors to provide information
demonstrating satisfaction (or expected
satisfaction if permitted by the statute)
of each of the eligibility requirements
included in MAP–21. These eligibility
requirements are outlined above in Part
V and elsewhere in this notice.
As described in Part IV, MAP–21
authorizes DOT to provide TIFIA
secured loans to finance up to 49
percent of reasonably anticipated
eligible project costs, which is
substantially more than the maximum of
33 percent that DOT could previously
provide. The Letter of Interest form
requires project sponsors requesting
TIFIA credit assistance to provide a
rationale for the amount of TIFIA credit
assistance they are requesting, as a
percentage of their reasonably
anticipated eligible project costs.
Similarly, the revised form requires any
project sponsor to specify whether it has
flexibility in its financial plan to finance
the project with a reduced percentage of
TIFIA credit assistance. In providing a
rationale for the amount of credit
4 For instance, the revised form no longer requires
the project sponsor to demonstrate alignment with
specific selection criteria, which were removed by
MAP–21.
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
45413
assistance requested, a project sponsor
can demonstrate that traditional sources
of financing are not available at feasible
rates without the TIFIA assistance, or
that the costs of traditional financing
options would constrain the sponsor’s
ability to deliver the project, or that
delivery of the project through
traditional financing approaches would
constrain the sponsor’s ability to deliver
a group of related projects, or a full
capital program. This information will
help DOT ensure that it allocates
TIFIA’s budget authority effectively.
Project sponsors must also describe
the purpose of their project in the Letter
of Interest form, including the public
purpose of the project. Project sponsors
should provide quantitative or
qualitative information about the public
benefits that their projects will achieve.
Examples of public benefits include
objectives specified in Section 101 and
49 U.S.C. 101(a) and 5301, other DOT
grant or credit assistance programs,
relevant Federal, state, or local
transportation laws or plans, and other
public benefits that can be achieved
through transportation investments.
DOT will evaluate each Letter of Interest
to determine whether it would be in the
public interest to provide credit
assistance to the proposed project. This
evaluation of each project’s purpose will
help DOT ensure accountability in its
allocation of TIFIA program funds.
In the context of a public-private
partnership, where multiple bidders
may be competing for a concession such
that the obligor has not yet been
identified, the procuring agency must
submit the project’s Letter of Interest on
behalf of the eventual obligor. DOT will
not consider Letters of Interest from
entities that have not obtained rights to
develop the project.
Any project sponsor that has
previously submitted a Letter of Interest
for a prior fiscal year’s funding, but has
not been asked by DOT to submit an
application as of the date of this notice,
must submit a Letter of Interest using
the revised form.
DOT will review each Letter of
Interest submitted in accordance with
this NOFA. DOT may contact project
sponsors for clarification of specific
information included in the Letter of
Interest. DOT will notify project
sponsors if DOT determines that their
projects are not eligible, or that DOT
will not be able to continue reviewing
their Letter of Interest until certain
eligibility concerns are addressed. If
DOT does not determine a project to be
ineligible based on its initial review,
DOT will request additional information
to supplement the Letter of Interest and
complete its eligibility determination.
E:\FR\FM\31JYN1.SGM
31JYN1
mstockstill on DSK4VPTVN1PROD with NOTICES
45414
Federal Register / Vol. 77, No. 147 / Tuesday, July 31, 2012 / Notices
This information may include, among
other things, more detailed descriptions
of the project, the project’s readiness to
proceed, the project’s financial plan,
including financial commitments to the
project from sources other than TIFIA,
and/or the applicant and its
organizational structure. Before
completing its review of a Letter of
Interest and rendering a determination
of eligibility, DOT will request that the
project sponsor provide a preliminary
rating opinion letter, as further
described below, and DOT will engage
an independent financial advisor to
prepare a report and recommendation
acceptable in form and substance to
DOT. DOT may also engage an
independent legal advisor to help
complete its evaluation of a project’s
eligibility. There is no fee to submit a
Letter of Interest. However, the project
sponsor must pay fees in the amount of
$100,000 before DOT hires financial
and/or legal advisors as part of the
Letter of Interest review process. These
fees are due upon request by DOT.
After concluding its review of the
Letter of Interest and making a
determination of eligibility, DOT will
inform the project sponsor of its
determination. If a project is determined
to be eligible, DOT will inform the
project sponsor that it may submit an
application. If DOT determines that a
project is ineligible, it will notify the
project sponsors of this determination
and/or that DOT will not be able to
continue reviewing the Letter of Interest
until certain eligibility concerns are
addressed. DOT will review Letters of
Interest on a rolling basis and invite
project sponsors to apply once a
favorable eligibility determination is
made.
Prior to execution of a TIFIA credit
instrument, the senior debt obligations
for each project receiving TIFIA credit
assistance must obtain investment grade
ratings from at least two nationally
recognized rating agencies, and the
TIFIA debt obligations must obtain
ratings from at least two nationally
recognized rating agencies, unless the
total amount of the debt is less than $75
million, in which case only one
investment grade rating is required for
the senior debt obligations and one
rating for the TIFIA debt obligations.
The term rating agency is defined in
Section 601(a)(14) and 49 CFR part 80.3.
If the TIFIA credit instrument is
proposed as the senior debt, then it
must receive the investment grade
ratings.
To demonstrate the potential to
achieve the above rating requirements,
each project sponsor must provide a
preliminary rating opinion letter from a
VerDate Mar<15>2010
16:48 Jul 30, 2012
Jkt 226001
credit rating agency that addresses the
creditworthiness of the senior debt
obligations funding the project and
concludes that there is a reasonable
probability for the senior debt
obligations to receive an investment
grade rating. The preliminary rating
opinion letter should also provide an
opinion on the default risk for the TIFIA
instrument and must provide indicative
ratings for both the senior debt
obligations and the TIFIA credit
instrument. 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. 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.
As noted elsewhere in this notice of
funding availability, the Program Guide
is being updated in light of MAP–21.
An invitation to apply for credit
assistance does not guarantee DOT’s
approval, which will remain subject to
a project’s continued eligibility,
including creditworthiness, the
successful negotiation of terms
acceptable to the Secretary, and the
availability of funds. In determining the
availability of funds, DOT may consider
other projects seeking credit assistance
through TIFIA.
MAP–21 contains a timeline for
assessing applications for credit
assistance. No later than 30 days after
receipt of an application, DOT will
inform each applicant whether its
application is complete, or if not
complete, identify additional materials
needed to complete the application. No
later than 60 days after issuing such
notice, the applicant will be notified
whether the application is approved or
disapproved.
As noted above, the project sponsor
must pay fees in the amount of $100,000
before DOT hires financial and/or legal
advisors as part of the Letter of Interest
review process. These fees are due upon
request by DOT. Additional fees will be
charged after the credit instrument is
executed, including additional amounts
required to fully cover TIFIA’s financial
and legal advisory services costs in
connection with the evaluation and
negotiation of terms of TIFIA credit
assistance for the project. More detailed
information about these fees can be
found in the TIFIA Program Guide,
which is in the process of being updated
to reflect the changes made by MAP–21:
https://www.fhwa.dot.gov/ipd/pdfs/tifia/
tifia_program_guide_072511.pdf.
TIFIA borrowers should expect to
track and report certain information
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
with respect to each project’s
performance. The information may be
used to assist DOT in determining
whether TIFIA is meeting the program’s
goals of leveraging federal funds and
encouraging private co-investment. DOT
may also use the information for
purposes of identifying and measuring
performance with respect to goals,
strategies, time frames, resources and
stakeholder involvement.
VII. Additional Guidance and Request
for Comments
As noted in the Summary section,
DOT is publishing this notice to give
project sponsors the opportunity to
submit Letters of Interest for the newly
authorized funding as soon as is
practicable. However, in addition to
authorizing more funding for TIFIA
credit assistance, MAP–21 made some
significant changes to the TIFIA
program’s structure, including the terms
and conditions pursuant to which DOT
can provide TIFIA credit assistance.
This notice identifies the process for
submitting letters of interest, and
provides guidance about how DOT will
implement some of the changes made by
MAP–21, but it does not provide
comprehensive guidance about how
DOT will implement all of the changes
made by MAP–21 that become effective
on October 1, 2012.
This notice also does not include an
exhaustive list of statutory and program
requirements. The Background section
of this notice identifies the relevant
laws that govern the TIFIA program.
MAP–21 provides that the Secretary
may promulgate such regulations as the
Secretary determines to be appropriate
to carry out the TIFIA program. The
TIFIA regulations (49 CFR part 80),
which provide specific guidance on the
program requirements, were last
updated in 2001, and have not been
updated to reflect changes enacted in
SAFETEA–LU and MAP–21. Because
such existing rules have not been
updated, MAP–21 should be the basis
for up-to-date guidance. The primary
document that the TIFIA program has
used in recent years to provide
supplemental program guidance has
been a ‘‘Program Guide’’ published on
the TIFIA Web site. DOT expects to
update the TIFIA Program Guide on the
TIFIA Web site to reflect changes made
by MAP–21. For additional guidance,
applicants are encouraged to check the
TIFIA program Web site regularly to
obtain updated programmatic and
application information.
Because of the significance of the
changes made by MAP–21 to the TIFIA
program, this notice invites interested
parties to submit comments about
E:\FR\FM\31JYN1.SGM
31JYN1
Federal Register / Vol. 77, No. 147 / Tuesday, July 31, 2012 / Notices
DOT’s implementation of MAP–21 and
DOT’s guidance for awarding TIFIA
credit assistance. Interested parties can
provide comments on any aspect of
DOT’s implementation of the changes
made by MAP–21. DOT will consider
these comments as it continues to
implement the program and develop
supplemental program guidance. The
instructions for submitting comments
are included below.
Comments should be sent to DOT by
September 1, 2012. Late-filed comments
will be considered to the extent
practicable.
Authority: 23 U.S.C. §§ 601–609 (as set
forth in MAP–21); 49 CFR part 1.48(b)(6); 23
CFR part 180; 49 CFR part 80; 49 CFR part
261; 49 CFR part 640.
Issued on: July 27, 2012.
Ray LaHood,
Secretary.
[FR Doc. 2012–18785 Filed 7–30–12; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
Preparation of an Environmental
Impact Statement for the Redlands;
Passenger Rail Project in the Cities of
San Bernardino and Redlands, CA
Federal Transit Administration
(FTA), DOT.
ACTION: Notice of Intent to prepare an
Environmental Impact Statement/
Environmental Impact Report (EIS/EIR).
AGENCY:
FTA and San Bernardino
Associated Governments (SANBAG)
intend to prepare an EIS/EIR for the
Redlands Passenger Rail Project (RPRP
or Project). Early in 2012, FTA and
SANBAG began the preparation of an
Environmental Assessment (EA)/EIR for
the RPRP and conducted two scoping
meetings; one on April 24 in the City of
Redlands and the other on May 2 in the
City of San Bernardino. Based on the
input received from the community,
including written comment letters, and
preliminary findings from ongoing
technical studies, FTA determined that
an EIS is required. The EIS/EIR will be
prepared in accordance with regulations
implementing the National
Environmental Policy Act (NEPA:
42 U.S.C. 4321 et seq.) of 1969 and the
regulations implementing NEPA set
forth in 40 CFR Parts 1500–1508 and
23 CFR Part 771, as well as provisions
of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA–LU). The
purpose of this Notice is to:
mstockstill on DSK4VPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
16:48 Jul 30, 2012
Jkt 226001
• Advise the public that FTA is the
lead Federal agency;
• Provide information about the
proposed project, purpose and need for
the project, and alternatives to be
considered; and
• Invite public and agency
participation in the EIS process.
The EIS/EIR will examine alternatives
to provide a cost-effective, alternative
travel option for communities located
along the Redlands Corridor in a way
that improves transit mobility, travel
times, and corridor safety.
DATES: The date, time, and location for
the public scoping meetings are as
follows:
August 14, 2012
5:30 p.m. to 7:30 p.m.
´
ESRI Cafe, 380 New York Street,
Redlands, CA 92373.
August 15, 2012
5:30 p.m. to 7:30 p.m.
San Bernardino Hilton, 1755 South
Waterman Avenue, San Bernardino,
CA 92408.
These locations are accessible by
persons with disabilities. If special
translation or signing services or other
special accommodations are needed,
please contact Robert Chevez at
Westbound Communications (909–384–
8188) at least 48 hours before the
meeting.
ADDRESSES: Written comments may be
submitted to Mitchell A. Alderman,
P.E., Director of Transit & Rail Programs,
SANBAG, 1170 W. 3rd St, 2nd Floor,
San Bernardino, CA 92410, or emailed
to RPRP_Public_Comments@sanbag.ca.
gov. Written comments may also be
submitted to Mr. Hymie Luden, City and
Regional Planner, FTA, Region 9, 201
Mission Street, Suite 1650 San
Francisco, CA 94105.
In accordance with Section 6002 of
SAFETEA–LU, FTA and SANBAG
invite comment on the scope of the EIS/
EIR, specifically on the Project’s
purpose and need, the alternatives to be
evaluated that may address the purpose
and need, and the potential impacts of
the alternatives considered. Comments
on scope of the EIS/EIR must be
received no later than 5:00 p.m. Pacific
Standard Time on August 31, 2012. A
scoping information packet is available
on the Web site at: https://sanbag.ca.gov/
projects/redlands-transit.html or by
calling Jane Dreher, SANBAG’s Public
Information Officer (909–884–8276).
Copies will also be available at the
scoping meetings.
SUPPLEMENTARY INFORMATION:
Purpose and Need for the Project: The
overall purpose of the Project is to
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
45415
provide a cost-effective, travel
alternative for communities located
along the Redlands Corridor that would
improve transit mobility, travel times,
and corridor safety while minimizing
adverse environmental impacts. The
RPRP would provide travelers and
commuters with a new mobility option
that would achieve more-efficient travel
times than automobiles or other transit
alternatives within an existing corridor.
The Project is needed because
population growth has increased
roadway congestion, which has
increased commute travel times for
work and recreational purposes,
increased the number of hours of lost
productivity, increased fuel
consumption, contributed to air
pollution, interfered with emergency
response vehicles, and caused spillover
effects onto secondary and alternative
routes. SANBAG also needs to maintain
existing freight service along the
corridor per its purchase agreement
with the Burlington Northern Santa Fe
(BNSF) Railroad.
Project Location and Environmental
Setting: The RPRP would introduce
passenger rail service along an existing
railroad right-of-way (ROW) from the
City of San Bernardino on the west to
the City of Redlands on the east. This
existing ROW is commonly referred to
as the Redlands Corridor, an
approximately 9-mile rail spur segment
that extends east from E Street in the
City of San Bernardino. Passenger rail
service would serve passengers from
five platforms located at E Street,
Tippecanoe Avenue, New York Street,
Orange Street, and University Street.
SANBAG proposes the construction of a
single track within a ROW 50 feet wide,
with a passing siding one-mile long
located near the midpoint of the
alignment. Project components would
include track improvements; boarding
platforms; passenger amenities such as
ticket vending machines, shade
canopies with seating; pedestrian access
to the public ROW, lighting, parking
areas; grade crossing improvements;
utility and traffic improvements; and
construction of a train layover facility.
The proposed Project would not include
the purchase of additional vehicles.
Passenger rail operations would start in
2018.
Possible Alternatives: The EIS/EIR
will consider alternatives to the
proposed Project consistent with the
requirements of NEPA. SANBAG
anticipates that this may include
consideration of Alternative 1—No
Build, Alternative 2—Preferred Project,
Alternative 3—Reduced Project
Footprint, Alternative 4—Light Rail
Transit, Alternative 5—Bus Rapid
E:\FR\FM\31JYN1.SGM
31JYN1
Agencies
[Federal Register Volume 77, Number 147 (Tuesday, July 31, 2012)]
[Notices]
[Pages 45411-45415]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18785]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of Transportation
Letters of Interest for Credit Assistance Under the
Transportation Infrastructure Finance and Innovation Act (TIFIA)
Program
AGENCIES: Office of the Secretary of Transportation (OST), U.S.
Department of Transportation (DOT), Federal Highway Administration
(FHWA), Federal Railroad Administration (FRA), Federal Transit
Administration (FTA).
ACTION: Notice of funding availability and request for comments.
-----------------------------------------------------------------------
SUMMARY: Pursuant to the recently enacted Moving Ahead for Progress in
the 21st Century Act (MAP-21), DOT announces the availability of
funding authorized in the amount of $1.75 billion ($750 million in
Federal Fiscal Year (FY) 2013 funds and $1 billion in FY 2014 funds
(and any funds that may be available from prior fiscal years)) to
provide TIFIA credit assistance for eligible projects. The FY 2013 and
FY 2014 funds are subject to an annual obligation limitation that may
be established in appropriations law. The amount of TIFIA budget
authority available in a given year may be less than the amount
authorized for that fiscal year. Under TIFIA, DOT provides secured
(direct) loans, lines of credit, and loan guarantees to public and
private applicants for eligible surface transportation projects.
Projects must meet statutorily specified eligibility criteria to
receive credit assistance.
This notice outlines the process that project sponsors must follow
in seeking TIFIA credit assistance. DOT is publishing this notice to
give project sponsors an opportunity to submit Letters of Interest for
the newly authorized funding as soon as possible. However, in addition
to authorizing more funding for TIFIA credit assistance, MAP-21 made
some significant changes to the TIFIA program's structure, including
the terms and conditions pursuant to which DOT can provide TIFIA credit
assistance. While this notice provides guidance about how DOT will
implement some of the changes made by MAP-21, it does not provide
guidance about how DOT will implement all of these changes. Further
information about the changes made by MAP-21 and additional DOT
guidance for implementation of these provisions is provided in Part VII
below. Also, Part VII invites interested parties to submit comments
about DOT's implementation of MAP-21 and DOT's guidance for awarding
TIFIA credit assistance. Unless otherwise noted, statutory section
references in this notice are to sections of title 23 of the U.S. Code,
as amended by MAP-21, which takes effect on October 1, 2012.
Letter of Interest Submission: All project sponsors wishing to
apply for TIFIA credit assistance must first submit a Letter of
Interest, as more fully described in this notice of funding
availability. Letters of Interest will be received on a rolling basis
commencing on the date hereof, using the form on the TIFIA Web site:
https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm.
Project sponsors that have previously submitted Letters of Interest for
a prior fiscal year's funding, but have not been asked by DOT to submit
an application as of the date of this notice, must submit a new Letter
of Interest to be considered for the funding described in this notice
of funding availability.
Addresses for Letters of Interest: Submit all Letters of Interest
to the attention of Mr. Duane Callender via email at:
TIFIACredit@dot.gov. Submitters should receive a confirmation email,
but are advised to request a return receipt to confirm transmission.
Only Letters of Interest received via email, as provided above, shall
be deemed properly filed.
Addresses for Comments: You must include the agency name (Office of
the Secretary of Transportation) and the docket number DOT-OST-2012-
0130 with your comments. To ensure your comments are not entered into
the docket more than once, please submit comments, identified by the
docket number DOT-OST-2012-0130, by only one of the following methods:
Web site: The U.S. Government electronic docket site is
www.regulations.gov. Go to this Web site and follow the instructions
for submitting comments into docket number DOT-OST-2012-0130;
Fax: Telefax comments to: 202-366-2908.
Mail: Mail your comments to U.S. Department of Transportation, 1200
New Jersey Avenue SE., Docket Operations, M-30, Room W12-140,
Washington, DC 20590; or
Hand Delivery: Bring your comments to the U.S. Department of
Transportation, 1200 New Jersey Avenue SE., Docket Operations, M-30,
West Building Ground Floor, Room W12-140, Washington, DC 20590, between
9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
Instructions for Submitting Comments: You must include the agency
name (Office of the Secretary of Transportation) and Docket number DOT-
OST-2012-0130 for this notice at the beginning of your comments. You
should submit two copies of your comments if you submit them by mail or
courier. For confirmation that the Office of the Secretary of
Transportation has received your comments you must include a self-
addressed stamped postcard. Note that all comments received will be
posted without change to www.regulations.gov, including any personal
information provided, and will be available to Internet users. You may
review the Department's complete Privacy Act Statement in the Federal
Register published April 11, 2000 (65 FR 19477), or you may visit
www.regulations.gov.
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) 366-1059. 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/. The TIFIA Program Guide is being updated
to reflect changes to the program under MAP-21.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Program Funding
III. Eligible Projects
IV. Types of Credit Assistance
V. Eligibility Requirements
VI. Application Process
VII. Additional Guidance and Request for Comments
I. Background
The Transportation Equity Act for the 21st Century (TEA-21), Public
Law 105-178, 112 Stat. 107, 241 established the Transportation
Infrastructure Finance and Innovation Act of 1998 (TIFIA), authorizing
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. In 2005, Congress enacted
the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU)
[[Page 45412]]
(Pub. L. 109-59, 119 Stat. 1144), which made a number of amendments to
TIFIA including lowering the estimated project cost thresholds and
expanding eligibility for TIFIA credit assistance. On July 6, 2012, the
President signed into law MAP-21 (Pub. L. 112-141), which provided for
substantial changes in the TIFIA credit program under Sections 2001 and
2002 of MAP-21 (such sections are referred to in MAP-21 as the America
Fast Forward Financing Innovation Act of 2012). This notice of funding
availability addresses certain changes to the TIFIA credit program made
by MAP-21 and solicits Letters of Interest for the funding made
available under that law. The TIFIA program is a departmental program.
The Office of the Assistant Secretary for Budget and Programs and Chief
Financial Officer oversees the TIFIA program and the Joint Program
Office on behalf of the Secretary, including the evaluation of
individual projects, and provides overall policy direction and program
decisions for the TIFIA program. Final approval of credit assistance is
reserved for the Secretary.
II. Program Funding
MAP-21 authorizes $750 million in FY 2013 and $1 billion in FY 2014
in TIFIA budget authority from the Highway Trust Fund to pay the
subsidy cost of credit assistance. Additional funds may also be
available from budget authority carried over from previous fiscal
years. Any budget authority not obligated in the fiscal year for which
it is authorized remains available for obligation in subsequent
years.\1\ 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.
---------------------------------------------------------------------------
\1\ If the cumulative unobligated and uncommitted balance of
funding available as of April 1 of any fiscal year beginning in FY
2014 is more than 75 percent of the amount made available for such
fiscal year, then the Secretary must distribute the amount in excess
of 75 percent of such amount among the States.
---------------------------------------------------------------------------
After reductions for administrative expenses and application of the
annual obligation limitation, TIFIA will have approximately $690
million available in FY 2013 and $920 million in FY 2014 to provide
credit subsidy support to projects. Although dependent on the
individual risk profile of each credit instrument, collectively, and
based on historic subsidy costs, this budget authority could support
approximately $6.9 billion in lending capacity in FY 2013 and $9.2
billion in lending capacity in FY 2014. Given statutory changes in the
TIFIA credit program under MAP-21, and the need to calculate credit
subsidies on a project-by-project basis, actual lending capacity could
vary.
III. Eligible Projects
DOT has provided TIFIA credit assistance across a broad range of
project types, including a variety of transportation modes and the
surface transportation components of multifaceted development and
redevelopment projects. Generally, eligible projects include highway
projects, passenger rail projects, transit and intermodal projects,
private rail facilities providing public benefit to highway users,
surface transportation infrastructure modifications necessary to
facilitate direct intermodal transfer and access into and out of a port
terminal, intelligent transportation systems, surface transportation
projects eligible for Federal assistance under title 23 or title 49 of
the U.S. Code, international bridges and tunnels, and intercity
passenger bus or rail facilities and vehicles. Additionally, MAP-21
expands eligibility to include related improvement projects grouped
together, so long as the individual components are eligible and the
related projects are secured by a common pledge.
IV. Types of Credit Assistance
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 Section 601. The TIFIA credit facility, which
must have a senior or senior-parity lien in the event of bankruptcy,
liquidation or insolvency, can be subordinate as to cash flows absent
such an event.\2\ MAP-21 increases the maximum amount for a TIFIA
secured loan for a project to 49 percent \3\ of the project's eligible
project costs. For a TIFIA line of credit, the maximum amount remains
at 33 percent of the project's eligible project costs. Project sponsors
may not include any of the fees assessed by TIFIA, or costs related to
the application process (such as charges associated with obtaining the
required preliminary rating opinion letter referenced in Part VI),
among eligible project costs for the purpose of calculating the maximum
49 or 33 percent credit amount. Project sponsors should identify in
each Letter of Interest the level of funding (including the percentage
of eligible project costs) being requested, as specified in Part VI.
---------------------------------------------------------------------------
\2\ MAP-21 includes a new provision pursuant to which a waiver
of TIFIA's nonsubordination requirement may be provided in
connection with secured loans or lines of credit for public agency
borrowers having senior bonds under preexisting indentures, so long
as (i) the TIFIA loan is rated A or higher, (ii) the revenue pledge
is not affected by project performance or is a system pledge and
(iii) TIFIA is financing 33 percent or less of the eligible project
costs. However, in such cases, the maximum credit subsidy to be paid
by the Government may not be more than 10 percent of the principal
amount of the loan, and the obligor is responsible to pay any
remaining subsidy cost.
\3\ Limited to 33 percent where the nonsubordination requirement
is waived, as described in footnote 3.
---------------------------------------------------------------------------
Section 603(b)(4) provides that the interest rate on a secured loan
may not be less than the yield on U.S. Treasury securities of a similar
maturity to the maturity of the secured loan on the date of execution
of the loan agreement (for lines of credit, Section 604(b)(4) provides
that the interest rate may not be lower than the 30-year rate for U.S.
Treasury securities, as of the date of execution of the line of credit
agreement) (the Treasury Rate). In general, the TIFIA interest rate is
equal to the Treasury Rate on the date of execution of the TIFIA credit
instrument. However, MAP-21 allows for 10 percent of the TIFIA
program's budget authority to be provided to rural infrastructure
projects at a reduced interest rate of one-half of the Treasury Rate.
Rural infrastructure projects are defined in MAP-21 as surface
transportation infrastructure projects located in any area other than a
city with a population of more than 250,000 inhabitants within the city
limits. The reduced interest rate applies only to rural projects funded
with the 10 percent of budget authority set-aside.
To the extent adequate funds may not be available to provide a
reduced interest rate to all rural infrastructure projects submitting
Letters of Interest, DOT may prioritize rural infrastructure projects
to receive the reduced rate based on the project's (i) location outside
of an urbanized area (as defined in Section 101(a)(34)), (ii) alignment
with MAP-21's reduced total minimum eligible project cost requirement
of $25 million for rural infrastructure projects (as noted in Part V
below), and (iii) readiness to proceed, to avoid redistribution
pursuant to the directive in MAP-21 that any amounts set aside for
rural infrastructure that remain unobligated by June 1 of the fiscal
year for which the amounts were set aside shall be available for
obligation by the Secretary on projects other than rural infrastructure
projects.
In addition, MAP-21 allows existing Federal financing instruments
for rural infrastructure projects to be refinanced with TIFIA credit
assistance.
[[Page 45413]]
V. Eligibility Requirements
A project must meet all of the eligibility criteria set forth in
Section 602(a) to receive TIFIA credit assistance.
For instance, projects seeking TIFIA assistance must meet certain
statutory threshold requirements for project costs. Generally, the
minimum size for TIFIA projects are those having at least $50 million
in total eligible project costs; however, the minimum size for TIFIA
projects principally involving the installation of an intelligent
transportation system is $15 million. MAP-21 requires a minimum of $25
million in total eligible project costs for rural infrastructure
projects (as defined in Part IV above).
Each project seeking TIFIA assistance must submit an application
acceptable to the Secretary pursuant to the process set forth in this
notice, and must satisfy applicable State and local transportation
planning requirements. Each private applicant must receive public
approval for its project as demonstrated by satisfaction of the
applicable planning and programming requirements. Each project must
have a dedicated revenue source to repay the TIFIA loan. Projects
receiving TIFIA credit assistance have been supported by a variety of
revenue sources, including tolls, user fees, payments owing to the
obligor under a public-private partnership (or availability payments),
and other dedicated revenue sources that also secure or fund the
project obligations (including real estate tax increments,
interjurisdictional funding agreements and room and sales taxes).
The eligibility criteria also require a determination by DOT that
the project is creditworthy, which must be based on, at a minimum: (a)
A rate covenant, if applicable, (b) adequate coverage requirements to
ensure repayment, and (c) meeting the rating requirements set forth in
Part VI below. DOT will also utilize a report and recommendation from
an independent financial advisor and any other information it needs to
determine a project's creditworthiness.
Section 602(a) further requires that each project: (i) Foster (if
appropriate) partnerships that attract public and private investment
for the project, (ii) enable the project to proceed at an earlier date
than the project would otherwise be able to proceed or reduce lifecycle
costs (including debt service costs) of the project, and (iii) reduce
the contribution of Federal grant assistance for the project.
MAP-21 provides that all projects demonstrate that the construction
contracting process for the project can commence no more than 90 days
after execution of a TIFIA credit instrument. MAP-21 codifies an
already-existing regulation barring obligation of credit assistance for
a project until it receives a categorical exclusion, finding of no
significant impact or record of decision, pursuant to the National
Environmental Policy Act.
VI. Application Process
MAP-21 establishes a multi-step application process for TIFIA
credit assistance. This process begins with the submission of a Letter
of Interest and determination of eligibility. Only after a project
sponsor has submitted a Letter of Interest and met all statutory
eligibility requirements will the project sponsor be invited to submit
an application.
The Letter of Interest must (i) describe the project and the
location, purpose, and cost of the project, (ii) outline the proposed
financial plan, including the requested credit assistance and the
proposed obligor, (iii) provide a status of environmental review, and
(iv) provide information regarding satisfaction of other eligibility
requirements of the TIFIA credit program. Letters of Interest must be
submitted using the form on the TIFIA Web site: https://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm. DOT has
revised the form for the Letter of Interest to reflect changes made to
the TIFIA program by MAP-21.\4\
---------------------------------------------------------------------------
\4\ For instance, the revised form no longer requires the
project sponsor to demonstrate alignment with specific selection
criteria, which were removed by MAP-21.
---------------------------------------------------------------------------
The Letter of Interest form requires project sponsors to provide
information demonstrating satisfaction (or expected satisfaction if
permitted by the statute) of each of the eligibility requirements
included in MAP-21. These eligibility requirements are outlined above
in Part V and elsewhere in this notice.
As described in Part IV, MAP-21 authorizes DOT to provide TIFIA
secured loans to finance up to 49 percent of reasonably anticipated
eligible project costs, which is substantially more than the maximum of
33 percent that DOT could previously provide. The Letter of Interest
form requires project sponsors requesting TIFIA credit assistance to
provide a rationale for the amount of TIFIA credit assistance they are
requesting, as a percentage of their reasonably anticipated eligible
project costs. Similarly, the revised form requires any project sponsor
to specify whether it has flexibility in its financial plan to finance
the project with a reduced percentage of TIFIA credit assistance. In
providing a rationale for the amount of credit assistance requested, a
project sponsor can demonstrate that traditional sources of financing
are not available at feasible rates without the TIFIA assistance, or
that the costs of traditional financing options would constrain the
sponsor's ability to deliver the project, or that delivery of the
project through traditional financing approaches would constrain the
sponsor's ability to deliver a group of related projects, or a full
capital program. This information will help DOT ensure that it
allocates TIFIA's budget authority effectively.
Project sponsors must also describe the purpose of their project in
the Letter of Interest form, including the public purpose of the
project. Project sponsors should provide quantitative or qualitative
information about the public benefits that their projects will achieve.
Examples of public benefits include objectives specified in Section 101
and 49 U.S.C. 101(a) and 5301, other DOT grant or credit assistance
programs, relevant Federal, state, or local transportation laws or
plans, and other public benefits that can be achieved through
transportation investments. DOT will evaluate each Letter of Interest
to determine whether it would be in the public interest to provide
credit assistance to the proposed project. This evaluation of each
project's purpose will help DOT ensure accountability in its allocation
of TIFIA program funds.
In the context of a public-private partnership, where multiple
bidders may be competing for a concession such that the obligor has not
yet been identified, the procuring agency must submit the project's
Letter of Interest on behalf of the eventual obligor. DOT will not
consider Letters of Interest from entities that have not obtained
rights to develop the project.
Any project sponsor that has previously submitted a Letter of
Interest for a prior fiscal year's funding, but has not been asked by
DOT to submit an application as of the date of this notice, must submit
a Letter of Interest using the revised form.
DOT will review each Letter of Interest submitted in accordance
with this NOFA. DOT may contact project sponsors for clarification of
specific information included in the Letter of Interest. DOT will
notify project sponsors if DOT determines that their projects are not
eligible, or that DOT will not be able to continue reviewing their
Letter of Interest until certain eligibility concerns are addressed. If
DOT does not determine a project to be ineligible based on its initial
review, DOT will request additional information to supplement the
Letter of Interest and complete its eligibility determination.
[[Page 45414]]
This information may include, among other things, more detailed
descriptions of the project, the project's readiness to proceed, the
project's financial plan, including financial commitments to the
project from sources other than TIFIA, and/or the applicant and its
organizational structure. Before completing its review of a Letter of
Interest and rendering a determination of eligibility, DOT will request
that the project sponsor provide a preliminary rating opinion letter,
as further described below, and DOT will engage an independent
financial advisor to prepare a report and recommendation acceptable in
form and substance to DOT. DOT may also engage an independent legal
advisor to help complete its evaluation of a project's eligibility.
There is no fee to submit a Letter of Interest. However, the project
sponsor must pay fees in the amount of $100,000 before DOT hires
financial and/or legal advisors as part of the Letter of Interest
review process. These fees are due upon request by DOT.
After concluding its review of the Letter of Interest and making a
determination of eligibility, DOT will inform the project sponsor of
its determination. If a project is determined to be eligible, DOT will
inform the project sponsor that it may submit an application. If DOT
determines that a project is ineligible, it will notify the project
sponsors of this determination and/or that DOT will not be able to
continue reviewing the Letter of Interest until certain eligibility
concerns are addressed. DOT will review Letters of Interest on a
rolling basis and invite project sponsors to apply once a favorable
eligibility determination is made.
Prior to execution of a TIFIA credit instrument, the senior debt
obligations for each project receiving TIFIA credit assistance must
obtain investment grade ratings from at least two nationally recognized
rating agencies, and the TIFIA debt obligations must obtain ratings
from at least two nationally recognized rating agencies, unless the
total amount of the debt is less than $75 million, in which case only
one investment grade rating is required for the senior debt obligations
and one rating for the TIFIA debt obligations. The term rating agency
is defined in Section 601(a)(14) and 49 CFR part 80.3. If the TIFIA
credit instrument is proposed as the senior debt, then it must receive
the investment grade ratings.
To demonstrate the potential to achieve the above rating
requirements, each project sponsor must provide a preliminary rating
opinion letter from a credit rating agency that addresses the
creditworthiness of the senior debt obligations funding the project and
concludes that there is a reasonable probability for the senior debt
obligations to receive an investment grade rating. The preliminary
rating opinion letter should also provide an opinion on the default
risk for the TIFIA instrument and must provide indicative ratings for
both the senior debt obligations and the TIFIA credit instrument. 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. 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. As noted elsewhere in this notice of
funding availability, the Program Guide is being updated in light of
MAP-21.
An invitation to apply for credit assistance does not guarantee
DOT's approval, which will remain subject to a project's continued
eligibility, including creditworthiness, the successful negotiation of
terms acceptable to the Secretary, and the availability of funds. In
determining the availability of funds, DOT may consider other projects
seeking credit assistance through TIFIA.
MAP-21 contains a timeline for assessing applications for credit
assistance. No later than 30 days after receipt of an application, DOT
will inform each applicant whether its application is complete, or if
not complete, identify additional materials needed to complete the
application. No later than 60 days after issuing such notice, the
applicant will be notified whether the application is approved or
disapproved.
As noted above, the project sponsor must pay fees in the amount of
$100,000 before DOT hires financial and/or legal advisors as part of
the Letter of Interest review process. These fees are due upon request
by DOT. Additional fees will be charged after the credit instrument is
executed, including additional amounts required to fully cover TIFIA's
financial and legal advisory services costs in connection with the
evaluation and negotiation of terms of TIFIA credit assistance for the
project. More detailed information about these fees can be found in the
TIFIA Program Guide, which is in the process of being updated to
reflect the changes made by MAP-21: https://www.fhwa.dot.gov/ipd/pdfs/tifia/tifia_program_guide_072511.pdf.
TIFIA borrowers should expect to track and report certain
information with respect to each project's performance. The information
may be used to assist DOT in determining whether TIFIA is meeting the
program's goals of leveraging federal funds and encouraging private co-
investment. DOT may also use the information for purposes of
identifying and measuring performance with respect to goals,
strategies, time frames, resources and stakeholder involvement.
VII. Additional Guidance and Request for Comments
As noted in the Summary section, DOT is publishing this notice to
give project sponsors the opportunity to submit Letters of Interest for
the newly authorized funding as soon as is practicable. However, in
addition to authorizing more funding for TIFIA credit assistance, MAP-
21 made some significant changes to the TIFIA program's structure,
including the terms and conditions pursuant to which DOT can provide
TIFIA credit assistance. This notice identifies the process for
submitting letters of interest, and provides guidance about how DOT
will implement some of the changes made by MAP-21, but it does not
provide comprehensive guidance about how DOT will implement all of the
changes made by MAP-21 that become effective on October 1, 2012.
This notice also does not include an exhaustive list of statutory
and program requirements. The Background section of this notice
identifies the relevant laws that govern the TIFIA program. MAP-21
provides that the Secretary may promulgate such regulations as the
Secretary determines to be appropriate to carry out the TIFIA program.
The TIFIA regulations (49 CFR part 80), which provide specific guidance
on the program requirements, were last updated in 2001, and have not
been updated to reflect changes enacted in SAFETEA-LU and MAP-21.
Because such existing rules have not been updated, MAP-21 should be the
basis for up-to-date guidance. The primary document that the TIFIA
program has used in recent years to provide supplemental program
guidance has been a ``Program Guide'' published on the TIFIA Web site.
DOT expects to update the TIFIA Program Guide on the TIFIA Web site to
reflect changes made by MAP-21. For additional guidance, applicants are
encouraged to check the TIFIA program Web site regularly to obtain
updated programmatic and application information.
Because of the significance of the changes made by MAP-21 to the
TIFIA program, this notice invites interested parties to submit
comments about
[[Page 45415]]
DOT's implementation of MAP-21 and DOT's guidance for awarding TIFIA
credit assistance. Interested parties can provide comments on any
aspect of DOT's implementation of the changes made by MAP-21. DOT will
consider these comments as it continues to implement the program and
develop supplemental program guidance. The instructions for submitting
comments are included below.
Comments should be sent to DOT by September 1, 2012. Late-filed
comments will be considered to the extent practicable.
Authority: 23 U.S.C. Sec. Sec. 601-609 (as set forth in MAP-
21); 49 CFR part 1.48(b)(6); 23 CFR part 180; 49 CFR part 80; 49 CFR
part 261; 49 CFR part 640.
Issued on: July 27, 2012.
Ray LaHood,
Secretary.
[FR Doc. 2012-18785 Filed 7-30-12; 8:45 am]
BILLING CODE 4910-9X-P