Letters of Interest for Credit Assistance Under the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program, 13030-13036 [2016-05640]
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that—despite whatever other
restrictions on confidentiality are
imposed, and whether entered into by
consent or judicial fiat—specifically
allows for disclosure of relevant motor
vehicle safety information to NHTSA
and other applicable governmental
authorities. Such a provision could be
stated generically, providing that
nothing in the order or agreement shall
be construed to prohibit either party
from disclosing information to a
regulatory agency or governmental
entity who has an interest in the subject
matter of the underlying suit. For
example, the provision could state that
‘‘discovery material may only be
disclosed to . . . governmental entities
with an interest in the public safety
hazards involving [description of
product/vehicle].’’ Or, it could
specifically address NHTSA’s interest,
as contemplated by the recent NHTSA
Consent Order requiring Chrysler to
‘‘develop and implement a plan
ensuring that, in safety-related
litigation, FCA US uses its best efforts
to include in any protective order,
settlement agreement, or equivalent, a
provision that explicitly allows FCA US
to provide information and documents
to NHTSA.’’ See In re: FCA US LLC,
AQ14–003, July 24, 2015 Consent Order,
Attachment A, p. 27 at ¶ (B)(12),
available at www.safercar.gov/rs/
chrysler/pddfs/FCA_Consent_Order.pdf.
Private litigants should tailor the use of
confidentiality provisions in a way that
protects legitimate proprietary interests
while still allowing for the provision of
relevant information to NHTSA. The
Agency is not endorsing any particular
language that should be utilized; the
parties themselves are in the best
position to determine how that can be
accomplished. Given the global interest
in protecting and promoting public
safety, the Agency is confident that in
employing the use of confidentiality
provisions, private litigants can and will
agree on appropriate processes or
procedures that may be implemented to
address any concerns regarding the
dissemination of proprietary
information.
Whatever the language,
confidentiality agreements and
protective orders should not be utilized
to prevent the parties from providing
information that implicates public
safety to the very entity charged with
ensuring and protecting that safety.
Instead, such orders and agreements
should clearly authorize and facilitate
the disclosure of safety-related
information to NHTSA. Such a
provision is consistent with, and in
some cases mandated by, federal and
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state statutory schemes and regulations
and applicable case law, and is wholly
in line with principles of sound public
policy.
Applicability/Legal Statement: This
Enforcement Guidance Bulletin sets
forth NHTSA’s current interpretation
and thinking on this topic and guiding
principles and best practices to be
utilized in the context of private
litigation. This Bulletin is not a final
agency action and is intended as
guidance only. This Bulletin is not
intended, nor can it be relied upon, to
create any rights enforceable by any
party against NHTSA, the Department of
Transportation, or the United States.
Moreover, these recommended practices
do not establish any defense to any
violations of the statutes and regulations
that NHTSA administers. This Bulletin
may be revised in writing without
notice to reflect changes in NHTSA’s
evaluation and analysis, or to clarify
and update text.
Authority: 49 U.S.C. 30101, et seq.;
delegations of authority at 49 CFR 1.95(a),
501.2(a)(1), 501.5.
Issued: February 29, 2016.
Mark R. Rosekind,
Administrator.
[FR Doc. 2016–05522 Filed 3–10–16; 8:45 am]
BILLING CODE 4910–59–P
DEPARTMENT OF TRANSPORTATION
Intelligent Transportation Systems
Program Advisory Committee; Notice
of Meeting
ITS Joint Program Office, Office
of the Assistant Secretary for Research
and Technology, U.S. Department of
Transportation.
ACTION: Notice.
AGENCY:
The Intelligent Transportation
Systems (ITS) Program Advisory
Committee (ITSPAC) will hold a
meeting on March 31, 2016, from 8:00
a.m. to 4:00 p.m. (EDT) in the Crystal
Gateway Marriott Hotel, 1700 Jefferson
Davis Highway, Arlington, VA 22202.
The ITSPAC, established under
Section 5305 of Public Law 109–59,
Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for
Users, August 10, 2005, and reestablished under Section 6007 of
Public Law 114–94, Fixing America’s
Surface Transportation (FAST) Act,
December 4, 2015, was created to advise
the Secretary of Transportation on all
matters relating to the study,
development, and implementation of
intelligent transportation systems.
Through its sponsor, the ITS Joint
Program Office (JPO), the ITSPAC makes
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recommendations to the Secretary
regarding ITS Program needs, objectives,
plans, approaches, content, and
progress.
The following is a summary of the
meeting tentative agenda: (1) Welcome,
(2) Discussion of the FAST Act, (3)
Discussion of Potential Advice
Memorandum Topics, (4) Summary and
Adjourn.
The meeting will be open to the
public, but limited space will be
available on a first-come, first-served
basis. Members of the public who wish
to present oral statements at the meeting
must submit a request to ITSPAC@
dot.gov, not later than March 24, 2016.
Questions about the agenda or written
comments may be submitted by U.S.
Mail to: U.S. Department of
Transportation, Office of the Assistant
Secretary for Research and Technology,
ITS Joint Program Office, Attention:
Stephen Glasscock, 1200 New Jersey
Avenue SE., HOIT, Washington, DC
20590 or faxed to (202) 493–2027. The
ITS JPO requests that written comments
be submitted not later than March 24,
2016.
Notice of this conference is provided
in accordance with the Federal
Advisory Committee Act and the
General Services Administration
regulations (41 CFR part 102–3)
covering management of Federal
advisory committees.
Issued in Washington, DC, on the 7th day
of March, 2016.
Stephen Glasscock,
Designated Federal Officer, ITS Joint Program
Office.
[FR Doc. 2016–05413 Filed 3–10–16; 8:45 am]
BILLING CODE 4910–22–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 (the DOT), Federal
Highway Administration (FHWA),
Federal Railroad Administration (FRA),
Federal Transit Administration (FTA),
Maritime Administration (MARAD).
ACTION: Notice of funding availability
and request for comments.
AGENCY:
Pursuant to the recently
enacted Fixing America’s Surface
Transportation Act (the FAST Act), the
DOT announces the availability of
SUMMARY:
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funding authorized in the amount of
$1.435 billion ($275 million in Fiscal
Year (FY) 2016 funds, $275 million in
FY 2017 funds, $285 million in FY 2018
funds, $300 million in FY 2019 funds,
and $300 million in FY 2020 funds (and
any funds that may be available from
prior fiscal years)) to provide TIFIA
credit assistance for eligible projects.
The FY 2016–2020 authorized funds are
subject to an annual obligation
limitation that may be established in
appropriations law. The amount of
TIFIA funding authority available in a
given year may be less than the amount
authorized for that fiscal year. Under
TIFIA, the 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. The 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
funding for TIFIA credit assistance, the
FAST Act made a number of changes to
the TIFIA program’s structure, including
the terms and conditions pursuant to
which the DOT can provide TIFIA
credit assistance. This notice outlines
certain changes made by the FAST Act
and invites interested parties to submit
comments about the DOT’s
implementation of the FAST Act and
the 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 the FAST
Act, which took effect as of October 1,
2015.
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. Only after a project sponsor
has submitted a Letter of Interest and
demonstrated the satisfaction of all
statutory eligibility requirements will
the project sponsor be invited to submit
an application. Letters of Interest will be
received on a rolling basis using the
form on the TIFIA Web site: https://
www.transportation.gov/tifia/
applications.
ADDRESSES: Addresses for Letters of
Interest: Submit all Letters of Interest to
the DOT via email at: TIFIACredit@
dot.gov. Submitters should receive a
confirmation email, but are advised to
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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–2016–0032
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–2016–0032, 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–2016–0032;
Fax: Telefax comments to DOT–OST–
2016–0032;
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–2016–0032 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 DOT’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.transportation.gov/tifia. The TIFIA
Program Guide is being updated to
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reflect changes to the program under the
FAST Act.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Program Funding
III. Eligible Projects
A. Transit-Oriented Development
B. State Infrastructure Banks and TIFIA
C. Refinancing
D. Availability Payments
IV. Types of Credit Assistance
V. Eligibility Requirements
A. Reduced Minimum Cost Threshold for
Small Projects
B. Ratings Requirements
C. Other Requirements
VI. Application Process
A. Letter of Interest
B. Creditworthiness Review
1. Relief from Fees for Small Projects
C. Invitation To Apply
D. Streamlined 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 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. In 2005,
Congress enacted the Safe, Accountable,
Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA–LU)
(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. In
2012, Congress enacted the Moving
Ahead for Progress in the 21st Century
Act (MAP–21) (Pub. L. 112–141). MAP–
21 provided for substantial changes in
the TIFIA credit program, including
expanding eligibility and authorized
uses of TIFIA credit assistance and
modifying the selection process. On
December 4, 2015, the President signed
the FAST Act into law (Pub. L. 114–94),
which provided for substantial changes
in the TIFIA credit program under
Section 2001 of the FAST Act. This
notice of funding availability addresses
certain changes to the TIFIA credit
program made by the FAST Act and
solicits Letters of Interest for the
funding made available under that law.
The TIFIA program is a departmental
program and final approval of credit
assistance is reserved for the Secretary.
In addition, the FAST Act mandates the
creation of a National Surface
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Transportation and Innovative Finance
Bureau (Bureau), which will be
responsible for administering the TIFIA
application process. The Bureau will
also provide assistance and
communicate best practices for
financing and funding opportunities to
sponsors of projects eligible for TIFIA
credit assistance, as well as other forms
of DOT credit assistance.
II. Program Funding
The FAST Act authorizes $1.435
billion in TIFIA funding authority over
five fiscal years ($275 million in FY
2016 funds, $275 million in FY 2017
funds, $285 million in FY 2018 funds,
$300 million in FY 2019 funds, and
$300 million in FY 2020 funds) from the
Highway Trust Fund to pay the subsidy
cost of credit assistance. Additional
funds may also be available from
funding authority carried over from
previous fiscal years. Any funding
authority not obligated in the fiscal year
for which it is authorized remains
available for obligation in subsequent
years. The TIFIA funding 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
funding authority available in a given
year may be less than the amount
authorized for that fiscal year.
Historically, each dollar of TIFIA
funding authority has allowed the DOT
to provide approximately $10 in credit
assistance. In recent years, the DOT has
been able to leverage TIFIA funds to
support closer to $14 in credit
assistance. Given statutory changes in
the TIFIA credit program under the
FAST Act, and the need to calculate
credit subsidies on a project-by-project
basis, actual lending capacity will vary.
In addition to direct funding for the
TIFIA program, the FAST Act permits
the use of certain Federal-aid funds to
cover the subsidy and administrative
costs associated with TIFIA credit
assistance. Under the FAST Act, Surface
Transportation Block Grant Program
funds (23 U.S.C. 133), National Highway
Performance Program funds (23 U.S.C.
119), and Nationally Significant Freight
and Highway Projects Program grant
funds (23 U.S.C. 117) may be used by
eligible recipients to cover the subsidy
and administrative costs of TIFIA credit
assistance (including the fees and
expenses of the DOT’s outside advisors
hired in connection with the evaluation
and negotiation of terms of TIFIA credit
assistance for a project). As in previous
years, Transportation Investment
Generating Economic Recovery (TIGER)
grant funds may also be used to cover
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these costs. (See Part VI below for more
information regarding TIFIA
administrative costs).
To ensure maximum leverage of
TIFIA program funds and efficient
allocation of TIFIA resources, the DOT
encourages eligible recipients to
consider use of the three sources of
Federal-aid funds listed above to cover
the subsidy and administrative costs of
TIFIA credit assistance, as authorized in
the FAST Act. Project sponsors will be
asked to indicate in their Letters of
Interest whether other Federal-aid funds
are available to cover the subsidy and
administrative costs of their requested
TIFIA credit assistance, and provide an
explanation therefor (for example, that
the sponsor is not a State recipient of
Federal-aid funds).
III. Eligible Projects
The DOT has provided TIFIA credit
assistance across 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 within 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,
intercity passenger bus or rail facilities
and vehicles, and related improvement
projects grouped together, so long as the
individual components are eligible and
the related projects are secured by a
common pledge.
The FAST Act expands eligibility to
include transit-oriented development
and the capitalization of a rural projects
fund within a State infrastructure bank
(SIB). In addition, the FAST Act refines
the scope of eligibility for project
refinancing.
A. Transit-Oriented Development
Under the FAST Act, a project to
improve or construct public
infrastructure that is located within
walking distance of, and accessible to, a
fixed guideway transit facility,
passenger rail station, intercity bus
station, or intermodal facility, including
a transportation, public utility, or
capital project described in 49 U.S.C.
5302(3)(G)(v), and related infrastructure,
is now eligible to receive TIFIA credit
assistance (see 23 U.S.C. 601(a)(12)(E)).
Activities to improve or construct such
infrastructure are commonly known as
‘‘transit-oriented development’’ (or
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TOD). See Part V below for more
information regarding general TIFIA
eligibility requirements (such as
minimum project costs).
B. State Infrastructure Banks and TIFIA
In addition to certain
accommodations for rural infrastructure
projects, such as a reduced interest rate
on TIFIA credit assistance and lower
minimum eligible project cost
thresholds (see Part IV below for more
on rural infrastructure projects and
interest rate calculation; see Part V
below for more information on TIFIA
eligibility requirements), the FAST Act
enables SIBs to receive TIFIA secured
loans to be used to capitalize a rural
projects fund within the SIB (see 23
U.S.C. 601(a)(12)(F)).
A TIFIA loan to capitalize a rural
projects fund must be secured by a
dedicated revenue source(s) available to
the SIB (see 23 U.S.C. 602(a)(6) and
603(b)(3)(A)(V) for a description of the
requirements for a dedicated revenue
source for a TIFIA loan to a SIB). The
TIFIA loan to the SIB may not be less
than $10 million or more than $100
million. SIBs will be eligible to receive
the reduced interest rate (equal to onehalf of the Treasury Rate) to the extent
of available funds for such reduced-rate
loans. (See Part IV below for additional
discussion regarding the set-aside for
rural infrastructure projects and rural
projects fund capitalizations). Notably,
the SIB, rather than specific subsidiary
projects, would be responsible for all
stages and requirements of the standard
TIFIA application process, beginning
with submission of a Letter of Interest
that will be reviewed for factors
including eligibility and
creditworthiness, including review from
an independent financial advisor. (See
Part VI below for additional discussion
regarding the application process;
additional information regarding the
application process can also be found in
the TIFIA Program Guide.) The SIB
would then use the TIFIA loan proceeds
to make direct loans for rural
infrastructure projects out of its rural
projects fund. (See Part IV below for
more discussion regarding, and the
definition of, rural infrastructure
projects.) The SIB, rather than the DOT,
would review the specific projects. The
FAST Act also requires that the SIB use
all of its loan commitment within two
years after obligation of the loan unless
extended by the DOT.
Prior to the FAST Act, SIBs were
permitted to use Federal-aid funds to
capitalize a highway, a transit, and a rail
account within the SIB. The funds in
those accounts could then be used to
make loans to eligible highway, transit,
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and rail projects, respectively. As
discussed above, the FAST Act permits
SIBs to establish a fourth account (a
rural projects fund) that can be
capitalized by a TIFIA loan to a SIB. The
SIB must use the funds in its rural
projects fund to make loans for projects
meeting the rural infrastructure project
definition. (See Part IV below for the
definition of rural infrastructure
project.) A SIB loan for a rural
infrastructure project must comply with
certain specific requirements, including:
(i) the SIB loan cannot exceed 80
percent of the cost of carrying out the
project; (ii) the SIB loan must bear
interest at or below the interest rate on
the TIFIA loan used to capitalize the
rural projects fund; (iii) repayment of
the SIB loan must commence not later
than 5 years after completion of the
project; and (iv) the term of the SIB loan
cannot exceed 30 years after the date of
the first payment on the loan.1 For more
information regarding SIBs, including
the specific requirements for SIB loans
to rural infrastructure projects, see 23
U.S.C. 610.
The DOT recognizes that this is a new
category of activity and will provide
further guidance on the formal
application and credit evaluation
processes, informed by feedback from
stakeholders through this NOFA. The
DOT intends for such guidance to be
included in the forthcoming TIFIA
Program Guide update which will be
published in the near future to inform
the preparation of formal SIB
applications and credit evaluations. In
the interim, the DOT will conduct
targeted outreach and provide technical
assistance to potential applicants in
preparing SIB Letters of Interest.
C. Refinancing
TIFIA loan proceeds can be used to
refinance existing obligations in three
scenarios: (i) to refinance Federal credit
instruments for rural infrastructure
projects, (ii) to refinance long-term
project obligations of Federal credit
instruments if the refinancing provides
additional funding capacity for the
completion, enhancement, or expansion
of any project that would otherwise be
eligible, and (iii) to refinance interim
construction financing for eligible
projects. The FAST Act clarified the
parameters of interim construction
financing: the maturity of such existing
interim financing must not be later than
one year after substantial completion of
the project and the refinancing must
1 Note that certain of these requirements differ for
loans made from the SIB’s other accounts (i.e., the
highway, transit, or rail account). For a list of the
specific requirements applicable to SIB loans, see
23 U.S.C. 610.
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occur prior to one year after substantial
completion of the project (see 23 U.S.C.
603(a)(2)).
D. Availability Payments
The FAST Act codifies the DOT
practice of allowing payments made by
a State pursuant to a long-term
concession agreement, such as
availability payments, for a highway
project being delivered as a publicprivate partnership to be eligible for
Federal-aid reimbursement where the
State has advance construction
authorization (see Pub. L. 114–94,
section 2002). It is important to note,
however, that TIFIA credit assistance
cannot be repaid using Federal-aid
funds. As such, where TIFIA credit
assistance is provided directly to a
concessionaire receiving availability
payments and the State sponsor intends
to seek Federal-aid reimbursement for
such payments, the DOT will require
the State sponsor to demonstrate the
availability of non-Federal funds
sufficient to cover TIFIA debt service.
IV. Types of Credit Assistance
The DOT may provide credit
assistance in the form of secured (direct)
loans, lines of credit, and loan
guarantees (see 23 U.S.C. 603(a)(1),
603(e)(1), and 604(a)(1)). 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. The
TIFIA loan may be fully subordinated,
even in the event of a bankruptcy,
liquidation or insolvency, if the
borrower is a public agency that is
financing ongoing capital programs and
has outstanding senior bonds under a
preexisting indenture so long as (i) the
TIFIA loan is rated A-category or higher,
(ii) the revenue pledge is not affected by
project performance, such as a taxbacked revenue or 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; the obligor is
responsible for paying any remaining
subsidy cost.
The maximum amount for a TIFIA
secured loan for a project is 49 percent 2
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 Limited to 33 percent where the
nonsubordination requirement is waived, as
described above.
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sponsors may not include any costs
associated with reimbursing TIFIA for
the fees of its outside advisors, 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, TIFIA currently charges interest
rates equal to the Treasury Rate on the
date of execution of the TIFIA credit
instrument.
As with MAP–21, the FAST Act
allows for up to 10 percent of the TIFIA
program’s annual funding authority to
be provided to rural infrastructure
projects or to capitalize rural projects
funds within SIBs at a reduced interest
rate of one-half of the Treasury Rate.
However, the FAST Act modified the
definition of rural infrastructure projects
set forth in MAP–21; under the FAST
Act, rural infrastructure projects are
defined as surface transportation
infrastructure projects located in an area
that is outside of an urbanized area with
a population greater than 150,000
individuals, as determined by the
Bureau of the Census (see 23 U.S.C.
601(a)(15)). The reduced interest rate
applies only to rural projects and SIB
capitalizations funded with the up-to 10
percent of funding authority set-aside.
Once the set-aside has been fully
committed, any loans for rural projects
or SIB capitalization would accrue
interest at the Treasury Rate.
The FAST Act also clarified the
requirements for a master credit
agreement. Under MAP–21, the DOT
was able to provide a contingent
commitment of future TIFIA credit
assistance in the form of a master credit
agreement, subject to the availability of
future funding and the satisfaction of all
the conditions for the provision of credit
assistance under the TIFIA program.
The FAST Act clarified that a master
credit agreement can be used either for
a program of projects secured by a
common revenue pledge or for a single
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project where adequate funding is not
available to fund TIFIA credit assistance
in the fiscal year in which the project
sponsor’s application for credit
assistance is approved (see 23 U.S.C.
602(b)(2)). In addition, the FAST Act
clarified that the common revenue
source pledged in support of the master
credit agreement must receive an
investment grade rating at the time the
TIFIA credit assistance is obligated (see
23 U.S.C. 601(a)(10)).
V. Eligibility Requirements
A project must meet all of the
eligibility criteria set forth in Section
602(a) to receive TIFIA credit assistance.
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A. Reduced Minimum Cost Threshold
for Small Projects
For instance, projects seeking TIFIA
assistance must meet certain statutory
threshold requirements for project costs
(see 23 U.S.C. 602(a)(5)). Generally, the
minimum size for TIFIA projects is at
least $50 million in total eligible project
costs (23 U.S.C. 602(a)(5)(A)(i));
however, the minimum size is lower for
certain types of projects. The FAST Act
established a threshold of $10 million in
eligible project costs for both TOD
projects (23 U.S.C. 602(a)(5)(B)(ii)) and
for local projects (eligible projects the
sponsor of which is a local government
or instrumentality, which are located on
a facility owned by a local government
or the development of which a local
government is substantially involved
(23 U.S.C. 602(a)(5)(B)(iv))). The
minimum size for TIFIA projects
principally involving the installation of
an intelligent transportation system is
$15 million (23 U.S.C. 602(a)(5)(B)(i)).
The FAST Act lowered the minimum
cost threshold for rural infrastructure
projects from $25 million to $10 million
in eligible project costs (23 U.S.C.
602(a)(5)(B)(iii)); however, the FAST
Act added a maximum size for rural
infrastructure projects of $100 million
in eligible project costs (23 U.S.C.
602(a)(5)(B)(iii)). As applied to the
capitalization of a rural projects fund in
a SIB, the FAST Act limits the size of
a TIFIA loan to a SIB to between $10
and $100 million (23 U.S.C.
602(a)(5)(B)(iii)).
B. Ratings Requirements
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
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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 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 credit rating
requirements, each project sponsor must
provide a preliminary rating opinion
letter from a 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.transportation.gov/tifia/programguide. As noted elsewhere in this notice
of funding availability, the Program
Guide is being updated in light of the
FAST Act.
C. Other Requirements
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 (e.g.,
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 the DOT that the
project is creditworthy, which must be
based on, at a minimum: (i) A rate
covenant, if applicable, (ii) adequate
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coverage requirements to ensure
repayment, and (iii) meeting the credit
rating requirements set forth in Part VI
below. The 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,
for each project, TIFIA credit assistance
must: (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.
Each project must also demonstrate
that the construction contracting
process for the project can commence
no more than 90 days after execution of
a TIFIA credit instrument. In addition,
TIFIA credit assistance cannot be
obligated 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.
With respect to SIB applicants
requesting a TIFIA loan to capitalize a
rural projects fund, the DOT will
conduct a creditworthiness and
readiness evaluation that will assess the
institutional capacity and ability of the
SIB to administer and disburse the
requested TIFIA loan proceeds within
the requisite time frame, as well as a
creditworthiness review of the proposed
repayment source for the TIFIA loan.
The Program Guide on the TIFIA Web
site will be updated to provide further
guidance to SIB applicants.
VI. Application Process
The TIFIA application 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 DOT will conduct a rolling
application process where project
sponsors may submit Letters of Interest
at any time. The DOT will permit
project sponsors to apply once a
favorable eligibility determination is
made. An invitation to submit an
application for credit assistance does
not guarantee the DOT’s approval,
which will remain subject to evaluation,
based on all of the TIFIA statutory
evaluation criteria, and the successful
negotiation of terms and conditions
acceptable to the Secretary.
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A. Letter of Interest
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.transportation.gov/tifia/
applications. The DOT will be updating
this form to reflect changes made to the
TIFIA program by the FAST Act.
Pending publication of the updated
form, project sponsors should continue
to use the form posted on the TIFIA
Web site.
The Letter of Interest form requires
project sponsors to provide information
demonstrating satisfaction (or expected
satisfaction if permitted by TIFIA) of
each of the eligibility requirements
included in TIFIA. These eligibility
requirements are outlined above in Part
V and elsewhere in this notice.
As described in Part IV, the DOT may
provide 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 the DOT could provide
prior to MAP–21. The Letter of Interest
form requires a project sponsor
requesting TIFIA credit assistance to
provide a rationale for the amount of
TIFIA credit assistance it is requesting,
as a percentage of its reasonably
anticipated eligible project costs.
Similarly, the form requires a 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 the DOT ensure that it allocates
TIFIA’s funding authority effectively.
A project sponsor must also describe
the purpose of its project in the Letter
of Interest form, including the public
purpose of the project. A project
sponsor should provide quantitative or
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qualitative information about the public
benefits that its project 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.
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 may
submit the project’s Letter of Interest on
behalf of the eventual obligor. The DOT
will not consider Letters of Interest from
entities that have not obtained rights to
develop the project.
The DOT will review each Letter of
Interest submitted in accordance with
this NOFA. The DOT may contact a
project sponsor for clarification of
specific information included in the
Letter of Interest. The DOT will notify
a project sponsor if the DOT determines
that its project is not eligible or that the
DOT will not be able to continue
reviewing its Letter of Interest until
certain eligibility concerns are
addressed. If the DOT does not
determine a project to be ineligible
based on its initial review, the DOT will
request additional information to
supplement the Letter of Interest and
complete its eligibility determination.
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.
B. Creditworthiness Review
Before completing its review of a
Letter of Interest and rendering a
determination of eligibility, the DOT
will request that the project sponsor
provide a preliminary rating opinion
letter, as further described below, and
the DOT will engage an independent
financial advisor to prepare a report and
recommendation acceptable in form and
substance to the DOT. The DOT
typically engages an independent legal
advisor as part of the evaluation and
negotiation of terms of TIFIA credit
assistance for the project. There is no fee
to submit a Letter of Interest; however,
project sponsors will be required to
reimburse the DOT for the costs of its
outside financial and legal advisors. In
order to enable the DOT to initially
procure financial and legal advisors as
part of the Letter of Interest review
process, a project sponsor must submit
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13035
$250,000 to the DOT. This amount is
due upon request by the DOT and must
be submitted before the DOT hires
outside advisors. These funds will be
used, dollar for dollar, to cover the first
$250,000 in costs of the DOT’s financial
and legal advisors. In the event the
DOT’s advisors’ fees are less than
$250,000, the excess will be returned to
the project sponsor. If, due to the
duration and complexity of the project,
the DOT’s advisors’ fees exceed
$250,000, the DOT will invoice the
project sponsor for fees in excess of
$250,000. Payment of such invoices will
be required within 30 days after receipt.
1. Relief From Fees for Small Projects
For projects having eligible project
costs that are reasonably anticipated to
be $75 million or less, the FAST Act
provides for the reservation of not less
than $2 million of the TIFIA program’s
annual funding authority to be used in
lieu of the third-party costs charged by
the DOT. Project sponsors wishing to be
considered for this available funding
should indicate such in their Letters of
Interest. For more details on this setaside, please see the Program Guide on
the TIFIA Web site: https://
www.transportation.gov/tifia/programguide.
C. Invitation To Apply
After concluding its review of the
Letter of Interest and making a
determination of eligibility, the DOT
will inform the project sponsor of its
determination. If a project is determined
to be eligible, the DOT will inform the
project sponsor that it may submit an
application. If the DOT determines that
a project is ineligible, it will notify the
project sponsor of this determination
and/or that the DOT will not be able to
continue reviewing the Letter of Interest
until certain eligibility concerns are
addressed. The DOT will review Letters
of Interest on a rolling basis and invite
a project sponsor to apply once a
favorable eligibility determination is
made.
An invitation to apply for credit
assistance does not guarantee the 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, the DOT may
consider other projects seeking credit
assistance through TIFIA.
By statute, the DOT works on a
timeline for assessing applications for
credit assistance. No later than 30 days
after receipt of an application, the DOT
will inform each applicant whether its
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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.
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D. Streamlined Application Process
The FAST Act requires that the DOT
develop a streamlined application
process for certain projects within 180
days after enactment. The DOT is in the
process of developing such a process.
Once that process has been developed,
it will be included in the Program Guide
on the TIFIA Web site:
https://www.transportation.gov/tifia/
program-guide. The statutory criteria for
the streamlined application process are
set forth in Section 603(f). A key
component of the streamlined
application process will likely be a
requirement that TIFIA credit assistance
is provided on the DOT’s standard terms
as set forth in the loan agreement
templates on the TIFIA Web site:
https://www.transportation.gov/tifia/
tifia-loan-term-sheet-and-agreement.
Project sponsors should indicate in their
Letters of Interest whether they are
requesting the streamlined process and,
if so, demonstrate how they meet the
criteria.
As noted above, the project sponsor
must submit $250,000 to the DOT before
the DOT hires financial and/or legal
advisors as part of the Letter of Interest
review process (subject to availability of
the set-aside for small projects, as
discussed above). This amount is due
upon request by the DOT. Project
sponsors will be invoiced for any costs
in excess of $250,000 incurred by the
DOT from its outside financial and legal
advisors (subject to availability of the $2
million set-aside for small projects, as
discussed above). More detailed
information about these costs can be
found in the TIFIA Program Guide,
which is in the process of being updated
to reflect the changes made by the FAST
Act: https://www.transportation.gov/
tifia/program-guide.
TIFIA borrowers should expect to
track and report certain information
with respect to each project’s
performance. The information may be
used to assist the DOT in determining
whether TIFIA is meeting the program’s
goals of leveraging Federal funds and
encouraging private co-investment. The
DOT may also use the information for
purposes of identifying and measuring
performance with respect to goals,
strategies, time frames, resources, and
stakeholder involvement.
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VII. Additional Guidance and Request
for Comments
As noted in the Summary section, the
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 funding for TIFIA credit
assistance, the FAST Act made some
significant changes to the TIFIA
program’s structure, including the terms
and conditions pursuant to which the
DOT can provide TIFIA credit
assistance. This notice provides
guidance about the TIFIA application
process and how the DOT will
implement some of the changes made by
the FAST Act, but it does not provide
comprehensive guidance about how the
DOT will implement all of the changes
made by the FAST Act.
This notice also does not include an
exhaustive list of statutory and program
requirements, such as the requirement
that Federal funding recipients must
comply with Title VI of the Civil Rights
Act of 1964 and other
nondiscrimination requirements. The
Background section of this notice
identifies the relevant laws that govern
the TIFIA program. The FAST Act
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 2000. The DOT will
continue to evaluate, based on
stakeholder feedback and experience
with implementation of new provisions
contained in the FAST Act, whether
future regulatory updates would be
beneficial, and if so, what subject areas
they would cover. The primary
document that the TIFIA program uses
to provide ongoing program guidance is
a ‘‘Program Guide’’ published on the
TIFIA Web site. The DOT is updating
the TIFIA Program Guide to reflect
changes to the program under the FAST
Act and will endeavor to address
comments received in response to this
request for comments. For additional
guidance, applicants are encouraged to
check the TIFIA program Web site
regularly to obtain updated
programmatic and application
information. DOT staff are also available
to provide technical assistance on a realtime basis.
Because of the significance of the
changes made by the FAST Act to the
TIFIA program, this notice invites
interested parties to submit comments
about that program’s implementation of
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the FAST Act and the DOT’s guidance
for awarding TIFIA credit assistance.
Interested parties can provide comments
on any aspect of the DOT’s
implementation of the TIFIA changes
made by the FAST Act, including
identifying specific topic areas where
additional clarification or guidance
would be beneficial to potential
applicants. The DOT is particularly
interested in comments from interested
parties regarding the provisions in the
FAST Act relating to rural projects fund
capitalizations and SIBs. The 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 the DOT
by April 11, 2016. Late-filed comments
will be considered to the extent
practicable.
Authority: 23 U.S.C. 601–610 (as set forth
in the FAST Act); 49 CFR 1.48(b)(6); 23 CFR
part 180; 49 CFR part 80; 49 CFR part 261;
49 CFR part 640.
Issued on: March 7, 2016.
Anthony R. Foxx,
Secretary.
[FR Doc. 2016–05640 Filed 3–10–16; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Sanctions Actions Pursuant to
Executive Order 13667
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
The Treasury Department’s
Office of Foreign Assets Control (OFAC)
is publishing the names of one
individual and one entity whose
property and interests in property are
blocked pursuant to Executive Order
(E.O.) 13667 and whose names have
been added to OFAC’s list of Specially
Designated Nationals and Blocked
Persons (SDN List).
DATES: OFAC’s actions described in this
notice were effective March 8, 2016.
FOR FURTHER INFORMATION CONTACT: The
Department of the Treasury’s Office of
Foreign Assets Control: Assistant
Director for Licensing, tel.: 202–622–
2480, Assistant Director for Regulatory
Affairs, tel.: 202–622–4855, Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490; or the
Department of the Treasury’s Office of
the Chief Counsel (Foreign Assets
Control), Office of the General Counsel,
tel.: 202–622–2410.
SUMMARY:
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]]>Agencies
[Federal Register Volume 81, Number 48 (Friday, March 11, 2016)]
[Notices]
[Pages 13030-13036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05640]
-----------------------------------------------------------------------
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
AGENCY: Office of the Secretary of Transportation (OST), U.S.
Department of Transportation (the DOT), Federal Highway Administration
(FHWA), Federal Railroad Administration (FRA), Federal Transit
Administration (FTA), Maritime Administration (MARAD).
ACTION: Notice of funding availability and request for comments.
-----------------------------------------------------------------------
SUMMARY: Pursuant to the recently enacted Fixing America's Surface
Transportation Act (the FAST Act), the DOT announces the availability
of
[[Page 13031]]
funding authorized in the amount of $1.435 billion ($275 million in
Fiscal Year (FY) 2016 funds, $275 million in FY 2017 funds, $285
million in FY 2018 funds, $300 million in FY 2019 funds, and $300
million in FY 2020 funds (and any funds that may be available from
prior fiscal years)) to provide TIFIA credit assistance for eligible
projects. The FY 2016-2020 authorized funds are subject to an annual
obligation limitation that may be established in appropriations law.
The amount of TIFIA funding authority available in a given year may be
less than the amount authorized for that fiscal year. Under TIFIA, the
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. The 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 funding for TIFIA credit assistance, the FAST
Act made a number of changes to the TIFIA program's structure,
including the terms and conditions pursuant to which the DOT can
provide TIFIA credit assistance. This notice outlines certain changes
made by the FAST Act and invites interested parties to submit comments
about the DOT's implementation of the FAST Act and the 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 the FAST Act, which took effect as of October
1, 2015.
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. Only after a project sponsor has submitted a Letter of
Interest and demonstrated the satisfaction of all statutory eligibility
requirements will the project sponsor be invited to submit an
application. Letters of Interest will be received on a rolling basis
using the form on the TIFIA Web site: https://www.transportation.gov/tifia/applications.
ADDRESSES: Addresses for Letters of Interest: Submit all Letters of
Interest to the DOT 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-2016-
0032 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-2016-0032, 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-2016-0032;
Fax: Telefax comments to DOT-OST-2016-0032;
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-2016-0032 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 DOT'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.transportation.gov/tifia. The TIFIA Program Guide is being updated
to reflect changes to the program under the FAST Act.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Program Funding
III. Eligible Projects
A. Transit-Oriented Development
B. State Infrastructure Banks and TIFIA
C. Refinancing
D. Availability Payments
IV. Types of Credit Assistance
V. Eligibility Requirements
A. Reduced Minimum Cost Threshold for Small Projects
B. Ratings Requirements
C. Other Requirements
VI. Application Process
A. Letter of Interest
B. Creditworthiness Review
1. Relief from Fees for Small Projects
C. Invitation To Apply
D. Streamlined 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
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. In 2005,
Congress enacted the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (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. In 2012, Congress enacted the
Moving Ahead for Progress in the 21st Century Act (MAP-21) (Pub. L.
112-141). MAP-21 provided for substantial changes in the TIFIA credit
program, including expanding eligibility and authorized uses of TIFIA
credit assistance and modifying the selection process. On December 4,
2015, the President signed the FAST Act into law (Pub. L. 114-94),
which provided for substantial changes in the TIFIA credit program
under Section 2001 of the FAST Act. This notice of funding availability
addresses certain changes to the TIFIA credit program made by the FAST
Act and solicits Letters of Interest for the funding made available
under that law.
The TIFIA program is a departmental program and final approval of
credit assistance is reserved for the Secretary. In addition, the FAST
Act mandates the creation of a National Surface
[[Page 13032]]
Transportation and Innovative Finance Bureau (Bureau), which will be
responsible for administering the TIFIA application process. The Bureau
will also provide assistance and communicate best practices for
financing and funding opportunities to sponsors of projects eligible
for TIFIA credit assistance, as well as other forms of DOT credit
assistance.
II. Program Funding
The FAST Act authorizes $1.435 billion in TIFIA funding authority
over five fiscal years ($275 million in FY 2016 funds, $275 million in
FY 2017 funds, $285 million in FY 2018 funds, $300 million in FY 2019
funds, and $300 million in FY 2020 funds) from the Highway Trust Fund
to pay the subsidy cost of credit assistance. Additional funds may also
be available from funding authority carried over from previous fiscal
years. Any funding authority not obligated in the fiscal year for which
it is authorized remains available for obligation in subsequent years.
The TIFIA funding 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 funding authority available in a given year may be less than
the amount authorized for that fiscal year. Historically, each dollar
of TIFIA funding authority has allowed the DOT to provide approximately
$10 in credit assistance. In recent years, the DOT has been able to
leverage TIFIA funds to support closer to $14 in credit assistance.
Given statutory changes in the TIFIA credit program under the FAST Act,
and the need to calculate credit subsidies on a project-by-project
basis, actual lending capacity will vary. In addition to direct funding
for the TIFIA program, the FAST Act permits the use of certain Federal-
aid funds to cover the subsidy and administrative costs associated with
TIFIA credit assistance. Under the FAST Act, Surface Transportation
Block Grant Program funds (23 U.S.C. 133), National Highway Performance
Program funds (23 U.S.C. 119), and Nationally Significant Freight and
Highway Projects Program grant funds (23 U.S.C. 117) may be used by
eligible recipients to cover the subsidy and administrative costs of
TIFIA credit assistance (including the fees and expenses of the DOT's
outside advisors hired in connection with the evaluation and
negotiation of terms of TIFIA credit assistance for a project). As in
previous years, Transportation Investment Generating Economic Recovery
(TIGER) grant funds may also be used to cover these costs. (See Part VI
below for more information regarding TIFIA administrative costs).
To ensure maximum leverage of TIFIA program funds and efficient
allocation of TIFIA resources, the DOT encourages eligible recipients
to consider use of the three sources of Federal-aid funds listed above
to cover the subsidy and administrative costs of TIFIA credit
assistance, as authorized in the FAST Act. Project sponsors will be
asked to indicate in their Letters of Interest whether other Federal-
aid funds are available to cover the subsidy and administrative costs
of their requested TIFIA credit assistance, and provide an explanation
therefor (for example, that the sponsor is not a State recipient of
Federal-aid funds).
III. Eligible Projects
The DOT has provided TIFIA credit assistance across 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 within 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, intercity passenger bus or rail facilities and
vehicles, and related improvement projects grouped together, so long as
the individual components are eligible and the related projects are
secured by a common pledge.
The FAST Act expands eligibility to include transit-oriented
development and the capitalization of a rural projects fund within a
State infrastructure bank (SIB). In addition, the FAST Act refines the
scope of eligibility for project refinancing.
A. Transit-Oriented Development
Under the FAST Act, a project to improve or construct public
infrastructure that is located within walking distance of, and
accessible to, a fixed guideway transit facility, passenger rail
station, intercity bus station, or intermodal facility, including a
transportation, public utility, or capital project described in 49
U.S.C. 5302(3)(G)(v), and related infrastructure, is now eligible to
receive TIFIA credit assistance (see 23 U.S.C. 601(a)(12)(E)).
Activities to improve or construct such infrastructure are commonly
known as ``transit-oriented development'' (or TOD). See Part V below
for more information regarding general TIFIA eligibility requirements
(such as minimum project costs).
B. State Infrastructure Banks and TIFIA
In addition to certain accommodations for rural infrastructure
projects, such as a reduced interest rate on TIFIA credit assistance
and lower minimum eligible project cost thresholds (see Part IV below
for more on rural infrastructure projects and interest rate
calculation; see Part V below for more information on TIFIA eligibility
requirements), the FAST Act enables SIBs to receive TIFIA secured loans
to be used to capitalize a rural projects fund within the SIB (see 23
U.S.C. 601(a)(12)(F)).
A TIFIA loan to capitalize a rural projects fund must be secured by
a dedicated revenue source(s) available to the SIB (see 23 U.S.C.
602(a)(6) and 603(b)(3)(A)(V) for a description of the requirements for
a dedicated revenue source for a TIFIA loan to a SIB). The TIFIA loan
to the SIB may not be less than $10 million or more than $100 million.
SIBs will be eligible to receive the reduced interest rate (equal to
one-half of the Treasury Rate) to the extent of available funds for
such reduced-rate loans. (See Part IV below for additional discussion
regarding the set-aside for rural infrastructure projects and rural
projects fund capitalizations). Notably, the SIB, rather than specific
subsidiary projects, would be responsible for all stages and
requirements of the standard TIFIA application process, beginning with
submission of a Letter of Interest that will be reviewed for factors
including eligibility and creditworthiness, including review from an
independent financial advisor. (See Part VI below for additional
discussion regarding the application process; additional information
regarding the application process can also be found in the TIFIA
Program Guide.) The SIB would then use the TIFIA loan proceeds to make
direct loans for rural infrastructure projects out of its rural
projects fund. (See Part IV below for more discussion regarding, and
the definition of, rural infrastructure projects.) The SIB, rather than
the DOT, would review the specific projects. The FAST Act also requires
that the SIB use all of its loan commitment within two years after
obligation of the loan unless extended by the DOT.
Prior to the FAST Act, SIBs were permitted to use Federal-aid funds
to capitalize a highway, a transit, and a rail account within the SIB.
The funds in those accounts could then be used to make loans to
eligible highway, transit,
[[Page 13033]]
and rail projects, respectively. As discussed above, the FAST Act
permits SIBs to establish a fourth account (a rural projects fund) that
can be capitalized by a TIFIA loan to a SIB. The SIB must use the funds
in its rural projects fund to make loans for projects meeting the rural
infrastructure project definition. (See Part IV below for the
definition of rural infrastructure project.) A SIB loan for a rural
infrastructure project must comply with certain specific requirements,
including: (i) the SIB loan cannot exceed 80 percent of the cost of
carrying out the project; (ii) the SIB loan must bear interest at or
below the interest rate on the TIFIA loan used to capitalize the rural
projects fund; (iii) repayment of the SIB loan must commence not later
than 5 years after completion of the project; and (iv) the term of the
SIB loan cannot exceed 30 years after the date of the first payment on
the loan.\1\ For more information regarding SIBs, including the
specific requirements for SIB loans to rural infrastructure projects,
see 23 U.S.C. 610.
---------------------------------------------------------------------------
\1\ Note that certain of these requirements differ for loans
made from the SIB's other accounts (i.e., the highway, transit, or
rail account). For a list of the specific requirements applicable to
SIB loans, see 23 U.S.C. 610.
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The DOT recognizes that this is a new category of activity and will
provide further guidance on the formal application and credit
evaluation processes, informed by feedback from stakeholders through
this NOFA. The DOT intends for such guidance to be included in the
forthcoming TIFIA Program Guide update which will be published in the
near future to inform the preparation of formal SIB applications and
credit evaluations. In the interim, the DOT will conduct targeted
outreach and provide technical assistance to potential applicants in
preparing SIB Letters of Interest.
C. Refinancing
TIFIA loan proceeds can be used to refinance existing obligations
in three scenarios: (i) to refinance Federal credit instruments for
rural infrastructure projects, (ii) to refinance long-term project
obligations of Federal credit instruments if the refinancing provides
additional funding capacity for the completion, enhancement, or
expansion of any project that would otherwise be eligible, and (iii) to
refinance interim construction financing for eligible projects. The
FAST Act clarified the parameters of interim construction financing:
the maturity of such existing interim financing must not be later than
one year after substantial completion of the project and the
refinancing must occur prior to one year after substantial completion
of the project (see 23 U.S.C. 603(a)(2)).
D. Availability Payments
The FAST Act codifies the DOT practice of allowing payments made by
a State pursuant to a long-term concession agreement, such as
availability payments, for a highway project being delivered as a
public-private partnership to be eligible for Federal-aid reimbursement
where the State has advance construction authorization (see Pub. L.
114-94, section 2002). It is important to note, however, that TIFIA
credit assistance cannot be repaid using Federal-aid funds. As such,
where TIFIA credit assistance is provided directly to a concessionaire
receiving availability payments and the State sponsor intends to seek
Federal-aid reimbursement for such payments, the DOT will require the
State sponsor to demonstrate the availability of non-Federal funds
sufficient to cover TIFIA debt service.
IV. Types of Credit Assistance
The DOT may provide credit assistance in the form of secured
(direct) loans, lines of credit, and loan guarantees (see 23 U.S.C.
603(a)(1), 603(e)(1), and 604(a)(1)). 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. The TIFIA loan may be fully subordinated, even in the event of a
bankruptcy, liquidation or insolvency, if the borrower is a public
agency that is financing ongoing capital programs and has outstanding
senior bonds under a preexisting indenture so long as (i) the TIFIA
loan is rated A-category or higher, (ii) the revenue pledge is not
affected by project performance, such as a tax-backed revenue or 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; the obligor is responsible for paying any remaining
subsidy cost.
The maximum amount for a TIFIA secured loan for a project is 49
percent \2\ 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 costs
associated with reimbursing TIFIA for the fees of its outside advisors,
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\ Limited to 33 percent where the nonsubordination requirement
is waived, as described above.
---------------------------------------------------------------------------
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, TIFIA currently charges
interest rates equal to the Treasury Rate on the date of execution of
the TIFIA credit instrument.
As with MAP-21, the FAST Act allows for up to 10 percent of the
TIFIA program's annual funding authority to be provided to rural
infrastructure projects or to capitalize rural projects funds within
SIBs at a reduced interest rate of one-half of the Treasury Rate.
However, the FAST Act modified the definition of rural infrastructure
projects set forth in MAP-21; under the FAST Act, rural infrastructure
projects are defined as surface transportation infrastructure projects
located in an area that is outside of an urbanized area with a
population greater than 150,000 individuals, as determined by the
Bureau of the Census (see 23 U.S.C. 601(a)(15)). The reduced interest
rate applies only to rural projects and SIB capitalizations funded with
the up-to 10 percent of funding authority set-aside. Once the set-aside
has been fully committed, any loans for rural projects or SIB
capitalization would accrue interest at the Treasury Rate.
The FAST Act also clarified the requirements for a master credit
agreement. Under MAP-21, the DOT was able to provide a contingent
commitment of future TIFIA credit assistance in the form of a master
credit agreement, subject to the availability of future funding and the
satisfaction of all the conditions for the provision of credit
assistance under the TIFIA program. The FAST Act clarified that a
master credit agreement can be used either for a program of projects
secured by a common revenue pledge or for a single
[[Page 13034]]
project where adequate funding is not available to fund TIFIA credit
assistance in the fiscal year in which the project sponsor's
application for credit assistance is approved (see 23 U.S.C.
602(b)(2)). In addition, the FAST Act clarified that the common revenue
source pledged in support of the master credit agreement must receive
an investment grade rating at the time the TIFIA credit assistance is
obligated (see 23 U.S.C. 601(a)(10)).
V. Eligibility Requirements
A project must meet all of the eligibility criteria set forth in
Section 602(a) to receive TIFIA credit assistance.
A. Reduced Minimum Cost Threshold for Small Projects
For instance, projects seeking TIFIA assistance must meet certain
statutory threshold requirements for project costs (see 23 U.S.C.
602(a)(5)). Generally, the minimum size for TIFIA projects is at least
$50 million in total eligible project costs (23 U.S.C.
602(a)(5)(A)(i)); however, the minimum size is lower for certain types
of projects. The FAST Act established a threshold of $10 million in
eligible project costs for both TOD projects (23 U.S.C.
602(a)(5)(B)(ii)) and for local projects (eligible projects the sponsor
of which is a local government or instrumentality, which are located on
a facility owned by a local government or the development of which a
local government is substantially involved (23 U.S.C.
602(a)(5)(B)(iv))). The minimum size for TIFIA projects principally
involving the installation of an intelligent transportation system is
$15 million (23 U.S.C. 602(a)(5)(B)(i)). The FAST Act lowered the
minimum cost threshold for rural infrastructure projects from $25
million to $10 million in eligible project costs (23 U.S.C.
602(a)(5)(B)(iii)); however, the FAST Act added a maximum size for
rural infrastructure projects of $100 million in eligible project costs
(23 U.S.C. 602(a)(5)(B)(iii)). As applied to the capitalization of a
rural projects fund in a SIB, the FAST Act limits the size of a TIFIA
loan to a SIB to between $10 and $100 million (23 U.S.C.
602(a)(5)(B)(iii)).
B. Ratings Requirements
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 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 credit rating
requirements, each project sponsor must provide a preliminary rating
opinion letter from a 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.transportation.gov/tifia/program-guide. As noted elsewhere
in this notice of funding availability, the Program Guide is being
updated in light of the FAST Act.
C. Other Requirements
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 (e.g., 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 the DOT
that the project is creditworthy, which must be based on, at a minimum:
(i) A rate covenant, if applicable, (ii) adequate coverage requirements
to ensure repayment, and (iii) meeting the credit rating requirements
set forth in Part VI below. The 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, for each project, TIFIA
credit assistance must: (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.
Each project must also demonstrate that the construction
contracting process for the project can commence no more than 90 days
after execution of a TIFIA credit instrument. In addition, TIFIA credit
assistance cannot be obligated 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.
With respect to SIB applicants requesting a TIFIA loan to
capitalize a rural projects fund, the DOT will conduct a
creditworthiness and readiness evaluation that will assess the
institutional capacity and ability of the SIB to administer and
disburse the requested TIFIA loan proceeds within the requisite time
frame, as well as a creditworthiness review of the proposed repayment
source for the TIFIA loan. The Program Guide on the TIFIA Web site will
be updated to provide further guidance to SIB applicants.
VI. Application Process
The TIFIA application 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 DOT will conduct a rolling application process where project
sponsors may submit Letters of Interest at any time. The DOT will
permit project sponsors to apply once a favorable eligibility
determination is made. An invitation to submit an application for
credit assistance does not guarantee the DOT's approval, which will
remain subject to evaluation, based on all of the TIFIA statutory
evaluation criteria, and the successful negotiation of terms and
conditions acceptable to the Secretary.
[[Page 13035]]
A. Letter of Interest
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.transportation.gov/tifia/applications. The DOT will be updating
this form to reflect changes made to the TIFIA program by the FAST Act.
Pending publication of the updated form, project sponsors should
continue to use the form posted on the TIFIA Web site.
The Letter of Interest form requires project sponsors to provide
information demonstrating satisfaction (or expected satisfaction if
permitted by TIFIA) of each of the eligibility requirements included in
TIFIA. These eligibility requirements are outlined above in Part V and
elsewhere in this notice.
As described in Part IV, the DOT may provide 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
the DOT could provide prior to MAP-21. The Letter of Interest form
requires a project sponsor requesting TIFIA credit assistance to
provide a rationale for the amount of TIFIA credit assistance it is
requesting, as a percentage of its reasonably anticipated eligible
project costs. Similarly, the form requires a 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 the DOT ensure that it
allocates TIFIA's funding authority effectively.
A project sponsor must also describe the purpose of its project in
the Letter of Interest form, including the public purpose of the
project. A project sponsor should provide quantitative or qualitative
information about the public benefits that its project 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.
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 may submit the project's
Letter of Interest on behalf of the eventual obligor. The DOT will not
consider Letters of Interest from entities that have not obtained
rights to develop the project.
The DOT will review each Letter of Interest submitted in accordance
with this NOFA. The DOT may contact a project sponsor for clarification
of specific information included in the Letter of Interest. The DOT
will notify a project sponsor if the DOT determines that its project is
not eligible or that the DOT will not be able to continue reviewing its
Letter of Interest until certain eligibility concerns are addressed. If
the DOT does not determine a project to be ineligible based on its
initial review, the DOT will request additional information to
supplement the Letter of Interest and complete its eligibility
determination. 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.
B. Creditworthiness Review
Before completing its review of a Letter of Interest and rendering
a determination of eligibility, the DOT will request that the project
sponsor provide a preliminary rating opinion letter, as further
described below, and the DOT will engage an independent financial
advisor to prepare a report and recommendation acceptable in form and
substance to the DOT. The DOT typically engages an independent legal
advisor as part of the evaluation and negotiation of terms of TIFIA
credit assistance for the project. There is no fee to submit a Letter
of Interest; however, project sponsors will be required to reimburse
the DOT for the costs of its outside financial and legal advisors. In
order to enable the DOT to initially procure financial and legal
advisors as part of the Letter of Interest review process, a project
sponsor must submit $250,000 to the DOT. This amount is due upon
request by the DOT and must be submitted before the DOT hires outside
advisors. These funds will be used, dollar for dollar, to cover the
first $250,000 in costs of the DOT's financial and legal advisors. In
the event the DOT's advisors' fees are less than $250,000, the excess
will be returned to the project sponsor. If, due to the duration and
complexity of the project, the DOT's advisors' fees exceed $250,000,
the DOT will invoice the project sponsor for fees in excess of
$250,000. Payment of such invoices will be required within 30 days
after receipt.
1. Relief From Fees for Small Projects
For projects having eligible project costs that are reasonably
anticipated to be $75 million or less, the FAST Act provides for the
reservation of not less than $2 million of the TIFIA program's annual
funding authority to be used in lieu of the third-party costs charged
by the DOT. Project sponsors wishing to be considered for this
available funding should indicate such in their Letters of Interest.
For more details on this set-aside, please see the Program Guide on the
TIFIA Web site: https://www.transportation.gov/tifia/program-guide.
C. Invitation To Apply
After concluding its review of the Letter of Interest and making a
determination of eligibility, the DOT will inform the project sponsor
of its determination. If a project is determined to be eligible, the
DOT will inform the project sponsor that it may submit an application.
If the DOT determines that a project is ineligible, it will notify the
project sponsor of this determination and/or that the DOT will not be
able to continue reviewing the Letter of Interest until certain
eligibility concerns are addressed. The DOT will review Letters of
Interest on a rolling basis and invite a project sponsor to apply once
a favorable eligibility determination is made.
An invitation to apply for credit assistance does not guarantee the
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, the DOT may consider other
projects seeking credit assistance through TIFIA.
By statute, the DOT works on a timeline for assessing applications
for credit assistance. No later than 30 days after receipt of an
application, the DOT will inform each applicant whether its
[[Page 13036]]
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.
D. Streamlined Application Process
The FAST Act requires that the DOT develop a streamlined
application process for certain projects within 180 days after
enactment. The DOT is in the process of developing such a process. Once
that process has been developed, it will be included in the Program
Guide on the TIFIA Web site: https://www.transportation.gov/tifia/program-guide. The statutory criteria for the streamlined application
process are set forth in Section 603(f). A key component of the
streamlined application process will likely be a requirement that TIFIA
credit assistance is provided on the DOT's standard terms as set forth
in the loan agreement templates on the TIFIA Web site: https://www.transportation.gov/tifia/tifia-loan-term-sheet-and-agreement.
Project sponsors should indicate in their Letters of Interest whether
they are requesting the streamlined process and, if so, demonstrate how
they meet the criteria.
As noted above, the project sponsor must submit $250,000 to the DOT
before the DOT hires financial and/or legal advisors as part of the
Letter of Interest review process (subject to availability of the set-
aside for small projects, as discussed above). This amount is due upon
request by the DOT. Project sponsors will be invoiced for any costs in
excess of $250,000 incurred by the DOT from its outside financial and
legal advisors (subject to availability of the $2 million set-aside for
small projects, as discussed above). More detailed information about
these costs can be found in the TIFIA Program Guide, which is in the
process of being updated to reflect the changes made by the FAST Act:
https://www.transportation.gov/tifia/program-guide.
TIFIA borrowers should expect to track and report certain
information with respect to each project's performance. The information
may be used to assist the DOT in determining whether TIFIA is meeting
the program's goals of leveraging Federal funds and encouraging private
co-investment. The 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, the 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 funding for TIFIA credit assistance, the FAST
Act made some significant changes to the TIFIA program's structure,
including the terms and conditions pursuant to which the DOT can
provide TIFIA credit assistance. This notice provides guidance about
the TIFIA application process and how the DOT will implement some of
the changes made by the FAST Act, but it does not provide comprehensive
guidance about how the DOT will implement all of the changes made by
the FAST Act.
This notice also does not include an exhaustive list of statutory
and program requirements, such as the requirement that Federal funding
recipients must comply with Title VI of the Civil Rights Act of 1964
and other nondiscrimination requirements. The Background section of
this notice identifies the relevant laws that govern the TIFIA program.
The FAST Act 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 2000. The DOT will continue to evaluate, based on
stakeholder feedback and experience with implementation of new
provisions contained in the FAST Act, whether future regulatory updates
would be beneficial, and if so, what subject areas they would cover.
The primary document that the TIFIA program uses to provide ongoing
program guidance is a ``Program Guide'' published on the TIFIA Web
site. The DOT is updating the TIFIA Program Guide to reflect changes to
the program under the FAST Act and will endeavor to address comments
received in response to this request for comments. For additional
guidance, applicants are encouraged to check the TIFIA program Web site
regularly to obtain updated programmatic and application information.
DOT staff are also available to provide technical assistance on a real-
time basis.
Because of the significance of the changes made by the FAST Act to
the TIFIA program, this notice invites interested parties to submit
comments about that program's implementation of the FAST Act and the
DOT's guidance for awarding TIFIA credit assistance. Interested parties
can provide comments on any aspect of the DOT's implementation of the
TIFIA changes made by the FAST Act, including identifying specific
topic areas where additional clarification or guidance would be
beneficial to potential applicants. The DOT is particularly interested
in comments from interested parties regarding the provisions in the
FAST Act relating to rural projects fund capitalizations and SIBs. The
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 the DOT by April 11, 2016. Late-filed
comments will be considered to the extent practicable.
Authority: 23 U.S.C. 601-610 (as set forth in the FAST Act); 49
CFR 1.48(b)(6); 23 CFR part 180; 49 CFR part 80; 49 CFR part 261; 49
CFR part 640.
Issued on: March 7, 2016.
Anthony R. Foxx,
Secretary.
[FR Doc. 2016-05640 Filed 3-10-16; 8:45 am]
BILLING CODE 4910-9X-P
