Notice of Funding Opportunity for Letters of Interest for the RRIF Express Pilot Program Under the Railroad Rehabilitation & Improvement Financing Program, 35995-35998 [2023-11576]
Download as PDF
<![CDATA[
Federal Register / Vol. 88, No. 105 / Thursday, June 1, 2023 / Notices
it is excluded from review under the
Administrative Procedure Act.
Jessica A. Lewis,
Assistant Secretary, Political-Military Affairs
Bureau, Department of State.
[FR Doc. 2023–11686 Filed 5–31–23; 8:45 am]
BILLING CODE 4710–25–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of
Transportation
Notice of Funding Opportunity for
Letters of Interest for the RRIF Express
Pilot Program Under the Railroad
Rehabilitation & Improvement
Financing Program
Office of the Secretary of
Transportation, Department of
Transportation (the ‘‘DOT’’).
ACTION: Notice of funding opportunity.
AGENCY:
This Notice of Funding
Opportunity (‘‘NOFO’’) for the RRIF
Express Pilot Program (‘‘RRIF Express’’)
expands the ability of eligible borrowers
to access funds by removing the caps on
Cost Assistance for advisor fees and
Credit Risk Premium (‘‘CRP’’)
Assistance, provides greater flexibility
by allowing unaudited financial
statements in lieu of audited financial
statements in certain circumstances, and
makes other clarifications. The NOFO
also implements a sunset date of
December 1, 2023. Following the sunset
date, this NOFO will expire, and all
benefits made available in this Notice
will become available to any eligible
RRIF borrower, consistent with existing
law. All projects that were previously
eligible for RRIF Express financing
remain eligible under this NOFO. The
original NOFO with modifications is in
the SUPPLEMENTARY INFORMATION section.
DATES: Letters of Interest from
prospective RRIF borrowers for RRIF
Express will be accepted on rolling basis
until available funding is expended or
this notice is superseded by another
notice.
Prospective RRIF borrowers that have
previously submitted a Letter of Interest,
but that also seek acceptance into the
RRIF Express Pilot Program should
resubmit a Letter of Interest following
the instructions below. Prospective RRIF
borrowers who previously submitted
Letters of Interest under a preceding
RRIF Express Notice of Funding
Opportunity (published on December
13, 2019, March 16, 2020, June 19, 2020,
or November 27, 2020), and whose
Letters of Interest have not been
returned as ineligible, do not have to re-
ddrumheller on DSK120RN23PROD with NOTICES1
SUMMARY:
VerDate Sep<11>2014
17:37 May 31, 2023
Jkt 259001
apply, and may amend their Letter of
Interest to take advantage of the
provisions of this NOFO. Prospective
RRIF borrowers whose Letter of Interest
for RRIF Express was returned by the
Bureau with advice on issues to address
in resubmitting a Letter of Interest may
also take advantage of the provisions of
this NOFO while also following the
advice provided.
Irrespective of the above, the Bureau
continues to accept Letters of Interest on
a rolling basis from any prospective
RRIF borrower interested in receiving
RRIF credit assistance only (i.e., without
participation in RRIF Express).
Applicants to RRIF Express
must use the latest version of the Letter
of Interest form available on the Build
America Bureau website: https://
www.transportation.gov/content/buildamerica-bureau (including applicants
who have previously submitted Letters
of Interest and who are now seeking
participation in RRIF Express). Letters
of Interest must be submitted to the
Build America Bureau via email at:
RRIFexpress@dot.gov using the
following subject line: ‘‘Letter of Interest
for RRIF Express Program.’’ Submitters
should receive a confirmation email, but
are advised to request a return receipt to
confirm transmission. Only Letters of
Interest received via email at the above
email address with the subject line
listed above shall be deemed properly
filed.
ADDRESSES:
For
further information regarding this notice
please contact William Resch via email
at william.resch@dot.gov or via
telephone at 202–366–2300. A TDD is
available at 202–366–3993.
FOR FURTHER INFORMATION CONTACT:
RRIF
Express is administered by the DOT’s
National Surface Transportation and
Innovative Finance Bureau (the ‘‘Build
America Bureau’’ or ‘‘Bureau’’). The
overall RRIF program finances
development of railroad infrastructure
and is authorized to have up to $35
billion in outstanding principal
amounts from direct loans and loan
guarantees at any one time.
The 2018 Consolidated
Appropriations Act 1 appropriated $25
million in budget authority to the DOT
to cover the cost to the Federal
Government (the ‘‘Government’’) of
RRIF credit assistance—CRP assistance.
Additionally, the 2016 Consolidated
Appropriations Act 2 and the 2018
SUPPLEMENTARY INFORMATION:
1 Public Law 115–141, div. L, tit. I, H.R. 1625 at
646 (as enrolled Mar. 23, 2018).
2 Public Law 114–113, div. L, tit. I, § 152, 129
Stat. 2242, 2856.
PO 00000
Frm 00171
Fmt 4703
Sfmt 4703
35995
Consolidated Appropriations Act 3
provided $1.96 million and $350,000,
respectively (of which approximately $1
million remains available), to the DOT
to fund certain expenses incurred by
prospective RRIF borrowers in
preparation of their applications for
RRIF credit assistance (this
approximately $1 million assistance,
collectively, ‘‘Cost Assistance’’). Using
existing authorities and these new
budget authorities, the DOT has
established RRIF Express.
Subject to the availability of funds,
applicants accepted into the RRIF
Express Pilot Program may benefit from
two types of financial assistance: (a)
Cost Assistance to pay for any portion
of the Bureau’s advisor expenses borne
by applicants; and (b) for those
applicants that ultimately receive RRIF
credit assistance, CRP Assistance to pay
the CRP normally paid by the borrower.
These funds will be made available to
benefit applicants accepted into RRIF
Express on a first come, first served
basis until each source of funding is
expended or this notice is superseded
by a new Notice of Funding
Opportunity. Letters of Interest will be
accepted in the order received and will
be allocated Cost Assistance based on
the date of acceptance into RRIF
Express. CRP Assistance will be
allocated in the order of financial close.
For more information about potential
financial assistance for RRIF Express
applicants, see SUPPLEMENTARY
INFORMATION: Section II. Funding of CRP
and Cost Assistance.
This notice solicits Letters of Interest
from prospective RRIF borrowers
seeking assistance from RRIF Express,
establishes eligibility criteria, and
describes the process that prospective
borrowers must follow when submitting
Letters of Interest.
RRIF Express information, including
any additional resources, terms,
conditions and requirements when they
become available, can be found on the
Build America Bureau website at:
https://www.transportation.gov/
buildamerica/rrif-express. For further
information about the overall RRIF
program in general, including details
about the types of credit assistance
available, eligibility requirements and
the creditworthiness review process,
please refer to the Build America
Bureau Credit Programs Guide
(‘‘Programs Guide),’’ available on the
Build America Bureau website: https://
www.transportation.gov/buildamerica/
financing/program-guide.
3 Public Law 115–141, div. L, tit. I, H.R. 1625 at
646 (as enrolled Mar. 23, 2018).
E:\FR\FM\01JNN1.SGM
01JNN1
35996
Federal Register / Vol. 88, No. 105 / Thursday, June 1, 2023 / Notices
Table of Contents
I. Background
II. Funding of CRP Assistance and Cost
Assistance
III. Eligibility Requirements for RRIF Credit
Assistance
IV. Eligibility Criteria for RRIF Express
V. Letter of Interest Process and Review and
Next Steps
I. Background
The Transportation Equity Act for the
21st Century,4 established the RRIF
program, authorizing the DOT to
provide credit assistance in the form of
direct loans and loan guarantees to
public and private applicants for
eligible railroad projects. The RRIF
program is a DOT program and final
approval of credit assistance is reserved
for the Secretary of the DOT. The 2005
Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for
Users; 5 the Rail Safety Improvement
Act of 2008; 6 and the 2015 Fixing
America’s Surface Transportation Act 7
(the ‘‘FAST Act’’) each made a number
of changes to the RRIF program. In
addition, the FAST Act authorized the
creation of the Bureau to consolidate
administration of certain DOT credit
and grant programs, including the RRIF
program.
ddrumheller on DSK120RN23PROD with NOTICES1
II. Funding of CRP Assistance and Cost
Assistance
Through the RRIF program, the DOT
is authorized to have, at any one time,
up to $35 billion in unpaid principal
amounts of obligations under direct
loans and loan guarantees to finance
development of railroad infrastructure.
CRP Assistance
Prior to the 2018 Consolidated
Appropriations Act, the RRIF program
did not have an appropriation of budget
authority to pay the cost to the
Government of providing RRIF credit
assistance. As a result, the RRIF
borrower or a third party was required
to bear this cost through the payment of
a CRP. The 2018 Consolidated
Appropriations Act 8 provided $25
million to the DOT to cover the cost to
the Government of RRIF credit
assistance. The DOT will use this
funding to pay any CRP that would
otherwise be payable by participants in
RRIF Express, until this funding is
expended, or this notice is superseded
4 Public
Law 105–178, § 7203, 112 Stat. 107, 471.
Law 109–59, § 9003, 119 Stat. 1144, 1921.
6 Public Law 110–432, § 701(e), 122 Stat. 4848,
4906.
7 Public Law 114–94, Subtitle F, 129 Stat. 1312,
1693.
8 Public Law 115–141, div. L, tit. I, H.R. 1625 at
646 (as enrolled Mar. 23, 2018).
5 Public
VerDate Sep<11>2014
17:37 May 31, 2023
Jkt 259001
by a new Notice of Funding
Opportunity.
Cost Assistance
As described in the Programs Guide,
RRIF borrowers are required to pay (or
reimburse the DOT) for costs incurred
by the Bureau in connection with the
review of Letters of Interest and
applications for RRIF credit assistance.
The 2016 Consolidated Appropriations
Act 9 and the 2018 Consolidated
Appropriations Act 10 collectively
provided $2.31 million to the DOT to be
used to fund expenses incurred by
prospective RRIF borrowers in
preparation to apply for RRIF credit
assistance. A portion of these funds
have already been allocated for prior
RRIF projects. The DOT is reserving
approximately $1 million of remaining
funds from these appropriations to
offset the cost of DOT advisors that
would be payable by participants in
RRIF Express, until this funding is
expended, or this notice is superseded
by a new Notice of Funding
Opportunity.
III. Eligibility Requirements for RRIF
Credit Assistance
The RRIF statute and implementing
rules set forth eligibility requirements
for applicants and projects. These
requirements as well as other applicable
federal requirements are described in
detail in the Programs Guide and apply
to all applicants and projects, including
those seeking acceptance into RRIF
Express. In addition, for prospective
borrowers seeking RRIF Express
benefits, the requirements set forth in
section IV (Eligibility Criteria for RRIF
Express) of this notice also apply.
IV. Eligibility Criteria for RRIF Express
The DOT has identified the following
strategic objectives for RRIF Express:
encouraging increased utilization of
RRIF credit assistance by Class II and
Class III railroads; reducing transaction
costs for Class II and Class III railroads;
and streamlining the underwriting
process for Class II and Class III
railroads. These priorities are reflected
in the eligibility criteria below.
Generally, projects most suitable for
RRIF Express are rail line modernization
projects where the borrower has a welldocumented financial history and easily
identified revenue stream(s) for loan
repayment.
To differentiate among Letters of
Interest received for projects under this
NOFO, the DOT will consider whether
9 Public Law 114–113, div. L, tit. I, § 152, 129
Stat. 2242, 2856.
10 Public Law 115–141, div. L, tit. I, H.R. 1625 at
646 (as enrolled Mar. 23, 2018).
PO 00000
Frm 00172
Fmt 4703
Sfmt 4703
the project satisfies the following
eligibility criteria as demonstrated by
the Letter of Interest:
(i) Applicant: The applicant must be
a Class II railroad, a Class III railroad,
a commuter railroad or a joint venture
with a Class II, III, or commuter railroad.
(ii) Project Size: The project must
have eligible project costs of $150
million or less with no minimum
amount.
(iii) Project Scope: The project scope,
as described in Section B4 of the Letter
of Interest, must be limited to the
support of railroad activities that are
otherwise eligible for RRIF financing
and as outlined below:
(a) Acquire, improve, or rehabilitate
intermodal or rail equipment or
facilities, including track, components
of track, bridges, yards, buildings, and
shops, and costs related to these
activities, including pre-construction
costs. Note that this category of eligible
activities includes the installation of
positive train control systems;
(b) Develop or establish new
intermodal or railroad facilities;
(c) Reimburse planning and design
expenses relating to activities listed
above;
(d) Refinancing of non-federal debt
incurred at least three years prior to the
date of acceptance into RRIF Express
and for the purpose of one or more of
the following activities: (1) acquire,
improve, or rehabilitate intermodal or
rail equipment or facilities, including
track, components of track, bridges,
yards, buildings, and shops, and costs
related to these activities, including preconstruction costs; and (2) develop or
establish new intermodal or railroad
facilities; Refinancing is limited to up to
75% of the final RRIF loan amount.
Letters of Interest including
refinancing must demonstrate with
specificity in Section D5 how the
refinancing would improve the
creditworthiness of the applicant and
document how such improvement
would facilitate the activities referenced
in items (a) and (b) above and would
increase the applicant’s ability to repay
a RRIF loan and the overall financial
health of the applicant.
(iv) Applicant Financial History and
Projections: Attachment D–1 of the
Letter of Interest must 11 include audited
financial statements (by a qualified third
party, e.g., a certified public accountant)
for the two (2) most recent consecutive
years preceding the year of application
and that have no significant unresolved
findings (e.g., fiscal years 2018 and
11 Certain applicants may not need to provide
audited financial statements, as explained in more
detail below.
E:\FR\FM\01JNN1.SGM
01JNN1
ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 105 / Thursday, June 1, 2023 / Notices
2019). Interim unaudited financial
statements may be submitted with a
letter pledging to provide these audited
statements within 60 days of submitting
of the LOI and supporting materials.
Failure to provide the audited financial
statements within 60 days will
disqualify the LOI. Applicants choosing
this option must still provide unaudited
financial statements for the previous
five years and prospective financial
projections (pro-forma) for the term of
the loan. In lieu of providing audited
financial statements as documentation
of historical financial information in
Attachment D–1 of the Letter of Interest,
an applicant meeting the size standard
for small business concerns established
under section 3(a)(2) of the Small
Business Act (15 U.S.C. 632(a)(2)) may
provide unaudited financial statements
if such statements are accompanied by
the applicant’s Federal tax returns and
Internal Revenue Service tax
verifications for the corresponding
years. Borrowers exercising this option
should note that it may impact the time
required to process their application.
(v) Collateral: If collateral will be
pledged for the RRIF loan, Section D9 of
the Letter of Interest must be supported
with an independent appraisal of the
collateral that must have been
completed within the past 12 months
preceding submission of an LOI. Section
D9 of the Letter of Interest must
demonstrate that the collateral will be
unencumbered at time of closing,
including a description of any lien
release process that would occur prior
to closing on the RRIF loan to render
currently pledged collateral
unencumbered.
(vi) Environmental Documentation:
Section B6 and Attachment B–6 of the
Letter of Interest must demonstrate that
either NEPA review is complete or the
project is likely to qualify for a
Categorical Exclusion (CE) or Finding of
No Significant Impact (FONSI) under
NEPA. If a NEPA review has not been
completed, Attachment B–6 must
include a Federal Railroad
Administration (FRA) CE worksheet
with its Letter of Interest. Where
appropriate, the CE worksheet must
include substantive analysis of potential
impacts to environmental resources and
indicate the sources of the information
or data used to reach conclusions. For
some project types, the CE worksheet
will satisfy NEPA review and
documentation requirements; however,
for other project types, the CE worksheet
will inform FRA with sufficient details
about the project scope and potential
environmental impacts to determine if
an Environmental Assessment (EA) is
required. The Applicant would be
VerDate Sep<11>2014
17:37 May 31, 2023
Jkt 259001
responsible for providing sufficient
information and funding for the
preparation of an EA, which would also
extend the duration of project
development activities. FRA may
require the use of a third-party
contractor consistent with 23 CFR
771.109 (e) for the preparation of an EA.
In the event that an EA is necessary,
eligible projects must receive a FONSI
to qualify for RRIF Express.
To help address compliance with
Section 106 of the National Historic
Preservation Act, supporting
documentation must be submitted for
projects involving reconstruction or
replacement of existing railroad bridges,
tunnels, culverts, stations, or depots that
assesses the eligibility of these
architectural properties for listing in the
National Register of Historic Places.
Supporting documentation must also be
provided for projects involving grounddisturbing site preparation and
construction activities in areas that have
not been previously disturbed (such as
by prior land development, agricultural
activities, or the placement of fill), that
assesses the archaeological sensitivity of
the project area.
(vii) Domestic Preference: Section
B4(a) of the Letter of Interest must
demonstrate that the steel, iron,
manufactured goods, and construction
materials used in the project will be
produced in the United States in
accordance with the Build America, Buy
America Act (BABA), Public Law 117–
58, 70914 and the Federal Railroad
Administration RRIF Buy America
policy, which follows 49 U.S.C.
22905(a). Projects that require a waiver
are not eligible for RRIF Express,
however, prospective borrowers can
seek a loan from the overall RRIF
program for projects that require a
waiver.
(viii) Project Readiness: Section B4(c)
of the Letter of Interest must
demonstrate the prospective borrower’s
ability to commence the contracting
process for construction of the project
(e.g., issuance of a final RFP) by not
later than 90 days after the date on
which a RRIF credit instrument is
obligated for the project.
V. Letter of Interest Process and Review
and Next Steps
A. Submission of Letters of Interest
All prospective borrowers seeking
acceptance into RRIF Express should
submit a Letter of Interest following the
instructions described in this notice of
funding opportunity. The Letter of
Interest should be annotated with ‘‘RRIF
EXPRESS’’ immediately following the
Applicant Name in the Summary
PO 00000
Frm 00173
Fmt 4703
Sfmt 4703
35997
Information section on page one of the
Letter of Interest. The Letter of Interest
must, among other things:
(i) Describe the project and its
components, location, and purpose in
Section B, and include as Attachment
B–2 the project budget organized
according to construction elements from
preliminary engineering estimates, and
including costs as appropriate for
property, vehicles, professional services,
allocated and unallocated contingency,
and finance charges;
(ii) Outline the proposed financial
plan in Section C, and include the
financial model, that addresses such
aspects as model assumptions, annual
cash flows, balance sheets, income
statements and repayment schedules for
the duration of the loan, as well as
coverage ratios and debt metrics. The
model should allow reviewers the
flexibility to evaluate scenarios in the
native spreadsheet (Microsoft Excel, or
equivalent) format and be included in
the application as Attachment C–1;
(iii) Provide information regarding
satisfaction of other statutory eligibility
requirements of the RRIF credit
program; and
(iv) Provide information regarding
satisfaction of RRIF Express eligibility
criteria (as described in Section IV
above).
Prospective RRIF Express borrowers
should describe in Letter of Interest
Section D8 if the project will (1)
decrease transportation costs and
improve access, especially for rural
communities or communities in
Opportunity Zones,12 through reliable
and timely access to employment
centers and job opportunities; (2)
improve long-term efficiency, reliability
or costs in the movement of workers or
goods; (3) increase the economic
productivity of land, capital, or labor,
including assets in Opportunity Zones;
(4) result in long-term job creation and
other economic opportunities; or (5)
help the United States compete in a
global economy by facilitating efficient
and reliable freight movement. Projects
that bridge gaps in service in rural areas,
and projects that attract private
economic development, all support
local or regional economic
competitiveness.
Letters of Interest must be submitted
using the latest form on the Build
America Bureau website: https://
www.transportation.gov/content/buildamerica-bureau. Other RRIF Express
information including any additional
terms, conditions, and requirements can
12 See https://www.cdfifund.gov/Pages/
Opportunity-Zones.aspx for more information on
Opportunity Zones.
E:\FR\FM\01JNN1.SGM
01JNN1
ddrumheller on DSK120RN23PROD with NOTICES1
35998
Federal Register / Vol. 88, No. 105 / Thursday, June 1, 2023 / Notices
be found on the Build America Bureau
website at: https://www.transportation.
gov/buildamerica/rrif-express. The
Bureau may contact a prospective
borrower for clarification of specific
information included in the Letter of
Interest. The Bureau will review all
Letters of Interest properly filed and
received in the submission time
window provided herein.
applications from a single entity or
subordinates of a single parent or
holding company. Prospective RRIF
borrowers whose RRIF Express Letters
of Interest are determined to be
ineligible, but whose projects are
otherwise statutorily eligible for
standard RRIF credit assistance, have
the option to be considered under the
overall RRIF program.
B. Review and Evaluation
Each Letter of Interest that is properly
filed and received will be evaluated for
completeness and eligibility for RRIF
Express using the criteria in this notice.
This initial step of the review process
will include (1) an evaluation as to
whether the proposed project and
applicant satisfy RRIF statutory
eligibility requirements, and (2) an
evaluation as to whether the proposed
project and applicant satisfy RRIF
Express eligibility criteria. In addition,
the Bureau will conduct a high- level
feasibility assessment of the proposed
project and the applicant’s plan of
finance before a Letter of Interest is
accepted into RRIF Express and before
a Letter of Interest enters the
creditworthiness process. With respect
to the project, factors that will be
considered include, but are not limited
to, (1) the completion of the project
being financed is not necessary to repay
the proposed RRIF loan; (2) the project
budget is in year of expenditure and
includes contingencies to account for
potential project risks; and (3) the
maturity of the proposed RRIF loan does
not extend beyond the project’s
anticipated useful life. With respect to
the applicant’s plan of finance, factors
that will be considered include, but are
not limited to, (1) a maximum loan size
that, when added to the proposed
borrower’s existing outstanding and
undrawn available debt, does not
substantially exceed an earnings before
interest, taxes, depreciation, and
amortization multiple that would be
market appropriate in a similar
circumstance, for the most recent
trailing twelve month period and for
any period of the applicant’s forecast;
and (2) consistent levels of revenue and
operating profitability demonstrated by
the proposed borrower over the most
recent fiscal year.
The Letters of Interest determined to
be eligible for RRIF Express will then be
advanced to the Bureau’s
creditworthiness review process, which
is an in-depth creditworthiness review
of the project sponsor and the revenue
stream proposed to repay the RRIF
credit assistance as described in the
Programs Guide. The Secretary reserves
the right to limit the number of
Issued in Washington, DC.
Peter Paul Montgomery Buttigieg,
Secretary of Transportation.
VerDate Sep<11>2014
17:37 May 31, 2023
Jkt 259001
[FR Doc. 2023–11576 Filed 5–31–23; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request Concerning Tip Reporting
Alternative Commitment (TRAC)
Agreement for Use in the Cosmetology
and Barber Industry
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
The Internal Revenue Service
(IRS), as part of its continuing effort to
reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on information
collections, as required by the
Paperwork Reduction Act of 1995. The
IRS is soliciting comments concerning
Tip Reporting Alternative Commitment
(TRAC) Agreement for Use in the
Cosmetology and Barber Industry.
DATES: Written comments should be
received on or before July 31, 2023 to be
assured of consideration.
ADDRESSES: Direct all written comments
to Andres Garcia, Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224, or
by email to pra.comments@irs.gov.
Include ‘‘OMB Number 1545–1529-Tip
Reporting Alternative Commitment
(TRAC) Agreement for Use in the
Cosmetology and Barber Industry’’ in
the subject line of the message.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of this collection should be
directed to Martha R. Brinson, at (202)
317–5753, or at Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224, or
through the internet at
Martha.R.Brinson@irs.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
PO 00000
Frm 00174
Fmt 4703
Sfmt 4703
Title: Tip Reporting Alternative
Commitment (TRAC) Agreement for Use
in the Cosmetology and Barber Industry.
OMB Number: 1545–1529.
Announcement Numbers: 2000–21
and 2001–01.
Abstract: Announcement 2000–21,
2000–19 I.R.B. 983, and Announcement
2001–1, 2001–2 I.R.B. 277, contain
information required by the Internal
Revenue Service in its tax compliance
efforts to assist employers and their
employees in understanding and
complying with Internal Revenue Code
section 6053(a), which requires
employees to report all their tips
monthly to their employers.
Current Actions: There are no changes
in the paperwork burden previously
approved by OMB.
Type of Review: Extension of a
currently approved collection.
Affected Public: Business or other-forprofit organizations.
Estimated Number of Respondents:
4,600.
Estimated Time per Respondent: 9
hrs, 22 mins.
Estimated Total Annual Burden
Hours: 43,073.
The following paragraph applies to all
of the collections of information covered
by this notice:
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Books or records relating to a collection
of information must be retained as long
as their contents may become material
in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential,
as required by 26 U.S.C. 6103.
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. Comments
will be of public record. Comments are
invited on: (a) whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information has practical utility; (b) the
accuracy of the agency’s estimate of the
burden of the collection of information;
(c) ways to enhance the quality, utility,
and clarity of the information to be
collected; (d) ways to minimize the
burden of the collection of information
on or other forms of information
technology; and (e) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
E:\FR\FM\01JNN1.SGM
01JNN1
]]>Agencies
[Federal Register Volume 88, Number 105 (Thursday, June 1, 2023)]
[Notices]
[Pages 35995-35998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11576]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of Transportation
Notice of Funding Opportunity for Letters of Interest for the
RRIF Express Pilot Program Under the Railroad Rehabilitation &
Improvement Financing Program
AGENCY: Office of the Secretary of Transportation, Department of
Transportation (the ``DOT'').
ACTION: Notice of funding opportunity.
-----------------------------------------------------------------------
SUMMARY: This Notice of Funding Opportunity (``NOFO'') for the RRIF
Express Pilot Program (``RRIF Express'') expands the ability of
eligible borrowers to access funds by removing the caps on Cost
Assistance for advisor fees and Credit Risk Premium (``CRP'')
Assistance, provides greater flexibility by allowing unaudited
financial statements in lieu of audited financial statements in certain
circumstances, and makes other clarifications. The NOFO also implements
a sunset date of December 1, 2023. Following the sunset date, this NOFO
will expire, and all benefits made available in this Notice will become
available to any eligible RRIF borrower, consistent with existing law.
All projects that were previously eligible for RRIF Express financing
remain eligible under this NOFO. The original NOFO with modifications
is in the SUPPLEMENTARY INFORMATION section.
DATES: Letters of Interest from prospective RRIF borrowers for RRIF
Express will be accepted on rolling basis until available funding is
expended or this notice is superseded by another notice.
Prospective RRIF borrowers that have previously submitted a Letter
of Interest, but that also seek acceptance into the RRIF Express Pilot
Program should resubmit a Letter of Interest following the instructions
below. Prospective RRIF borrowers who previously submitted Letters of
Interest under a preceding RRIF Express Notice of Funding Opportunity
(published on December 13, 2019, March 16, 2020, June 19, 2020, or
November 27, 2020), and whose Letters of Interest have not been
returned as ineligible, do not have to re-apply, and may amend their
Letter of Interest to take advantage of the provisions of this NOFO.
Prospective RRIF borrowers whose Letter of Interest for RRIF Express
was returned by the Bureau with advice on issues to address in
resubmitting a Letter of Interest may also take advantage of the
provisions of this NOFO while also following the advice provided.
Irrespective of the above, the Bureau continues to accept Letters
of Interest on a rolling basis from any prospective RRIF borrower
interested in receiving RRIF credit assistance only (i.e., without
participation in RRIF Express).
ADDRESSES: Applicants to RRIF Express must use the latest version of
the Letter of Interest form available on the Build America Bureau
website: https://www.transportation.gov/content/build-america-bureau
(including applicants who have previously submitted Letters of Interest
and who are now seeking participation in RRIF Express). Letters of
Interest must be submitted to the Build America Bureau via email at:
[email protected] using the following subject line: ``Letter of
Interest for RRIF Express Program.'' Submitters should receive a
confirmation email, but are advised to request a return receipt to
confirm transmission. Only Letters of Interest received via email at
the above email address with the subject line listed above shall be
deemed properly filed.
FOR FURTHER INFORMATION CONTACT: For further information regarding this
notice please contact William Resch via email at [email protected]
or via telephone at 202-366-2300. A TDD is available at 202-366-3993.
SUPPLEMENTARY INFORMATION: RRIF Express is administered by the DOT's
National Surface Transportation and Innovative Finance Bureau (the
``Build America Bureau'' or ``Bureau''). The overall RRIF program
finances development of railroad infrastructure and is authorized to
have up to $35 billion in outstanding principal amounts from direct
loans and loan guarantees at any one time.
The 2018 Consolidated Appropriations Act \1\ appropriated $25
million in budget authority to the DOT to cover the cost to the Federal
Government (the ``Government'') of RRIF credit assistance--CRP
assistance. Additionally, the 2016 Consolidated Appropriations Act \2\
and the 2018 Consolidated Appropriations Act \3\ provided $1.96 million
and $350,000, respectively (of which approximately $1 million remains
available), to the DOT to fund certain expenses incurred by prospective
RRIF borrowers in preparation of their applications for RRIF credit
assistance (this approximately $1 million assistance, collectively,
``Cost Assistance''). Using existing authorities and these new budget
authorities, the DOT has established RRIF Express.
---------------------------------------------------------------------------
\1\ Public Law 115-141, div. L, tit. I, H.R. 1625 at 646 (as
enrolled Mar. 23, 2018).
\2\ Public Law 114-113, div. L, tit. I, Sec. 152, 129 Stat.
2242, 2856.
\3\ Public Law 115-141, div. L, tit. I, H.R. 1625 at 646 (as
enrolled Mar. 23, 2018).
---------------------------------------------------------------------------
Subject to the availability of funds, applicants accepted into the
RRIF Express Pilot Program may benefit from two types of financial
assistance: (a) Cost Assistance to pay for any portion of the Bureau's
advisor expenses borne by applicants; and (b) for those applicants that
ultimately receive RRIF credit assistance, CRP Assistance to pay the
CRP normally paid by the borrower. These funds will be made available
to benefit applicants accepted into RRIF Express on a first come, first
served basis until each source of funding is expended or this notice is
superseded by a new Notice of Funding Opportunity. Letters of Interest
will be accepted in the order received and will be allocated Cost
Assistance based on the date of acceptance into RRIF Express. CRP
Assistance will be allocated in the order of financial close. For more
information about potential financial assistance for RRIF Express
applicants, see SUPPLEMENTARY INFORMATION: Section II. Funding of CRP
and Cost Assistance.
This notice solicits Letters of Interest from prospective RRIF
borrowers seeking assistance from RRIF Express, establishes eligibility
criteria, and describes the process that prospective borrowers must
follow when submitting Letters of Interest.
RRIF Express information, including any additional resources,
terms, conditions and requirements when they become available, can be
found on the Build America Bureau website at: https://www.transportation.gov/buildamerica/rrif-express. For further
information about the overall RRIF program in general, including
details about the types of credit assistance available, eligibility
requirements and the creditworthiness review process, please refer to
the Build America Bureau Credit Programs Guide (``Programs Guide),''
available on the Build America Bureau website: https://www.transportation.gov/buildamerica/financing/program-guide.
[[Page 35996]]
Table of Contents
I. Background
II. Funding of CRP Assistance and Cost Assistance
III. Eligibility Requirements for RRIF Credit Assistance
IV. Eligibility Criteria for RRIF Express
V. Letter of Interest Process and Review and Next Steps
I. Background
The Transportation Equity Act for the 21st Century,\4\ established
the RRIF program, authorizing the DOT to provide credit assistance in
the form of direct loans and loan guarantees to public and private
applicants for eligible railroad projects. The RRIF program is a DOT
program and final approval of credit assistance is reserved for the
Secretary of the DOT. The 2005 Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users; \5\ the Rail Safety
Improvement Act of 2008; \6\ and the 2015 Fixing America's Surface
Transportation Act \7\ (the ``FAST Act'') each made a number of changes
to the RRIF program. In addition, the FAST Act authorized the creation
of the Bureau to consolidate administration of certain DOT credit and
grant programs, including the RRIF program.
---------------------------------------------------------------------------
\4\ Public Law 105-178, Sec. 7203, 112 Stat. 107, 471.
\5\ Public Law 109-59, Sec. 9003, 119 Stat. 1144, 1921.
\6\ Public Law 110-432, Sec. 701(e), 122 Stat. 4848, 4906.
\7\ Public Law 114-94, Subtitle F, 129 Stat. 1312, 1693.
---------------------------------------------------------------------------
II. Funding of CRP Assistance and Cost Assistance
Through the RRIF program, the DOT is authorized to have, at any one
time, up to $35 billion in unpaid principal amounts of obligations
under direct loans and loan guarantees to finance development of
railroad infrastructure.
CRP Assistance
Prior to the 2018 Consolidated Appropriations Act, the RRIF program
did not have an appropriation of budget authority to pay the cost to
the Government of providing RRIF credit assistance. As a result, the
RRIF borrower or a third party was required to bear this cost through
the payment of a CRP. The 2018 Consolidated Appropriations Act \8\
provided $25 million to the DOT to cover the cost to the Government of
RRIF credit assistance. The DOT will use this funding to pay any CRP
that would otherwise be payable by participants in RRIF Express, until
this funding is expended, or this notice is superseded by a new Notice
of Funding Opportunity.
---------------------------------------------------------------------------
\8\ Public Law 115-141, div. L, tit. I, H.R. 1625 at 646 (as
enrolled Mar. 23, 2018).
---------------------------------------------------------------------------
Cost Assistance
As described in the Programs Guide, RRIF borrowers are required to
pay (or reimburse the DOT) for costs incurred by the Bureau in
connection with the review of Letters of Interest and applications for
RRIF credit assistance. The 2016 Consolidated Appropriations Act \9\
and the 2018 Consolidated Appropriations Act \10\ collectively provided
$2.31 million to the DOT to be used to fund expenses incurred by
prospective RRIF borrowers in preparation to apply for RRIF credit
assistance. A portion of these funds have already been allocated for
prior RRIF projects. The DOT is reserving approximately $1 million of
remaining funds from these appropriations to offset the cost of DOT
advisors that would be payable by participants in RRIF Express, until
this funding is expended, or this notice is superseded by a new Notice
of Funding Opportunity.
---------------------------------------------------------------------------
\9\ Public Law 114-113, div. L, tit. I, Sec. 152, 129 Stat.
2242, 2856.
\10\ Public Law 115-141, div. L, tit. I, H.R. 1625 at 646 (as
enrolled Mar. 23, 2018).
---------------------------------------------------------------------------
III. Eligibility Requirements for RRIF Credit Assistance
The RRIF statute and implementing rules set forth eligibility
requirements for applicants and projects. These requirements as well as
other applicable federal requirements are described in detail in the
Programs Guide and apply to all applicants and projects, including
those seeking acceptance into RRIF Express. In addition, for
prospective borrowers seeking RRIF Express benefits, the requirements
set forth in section IV (Eligibility Criteria for RRIF Express) of this
notice also apply.
IV. Eligibility Criteria for RRIF Express
The DOT has identified the following strategic objectives for RRIF
Express: encouraging increased utilization of RRIF credit assistance by
Class II and Class III railroads; reducing transaction costs for Class
II and Class III railroads; and streamlining the underwriting process
for Class II and Class III railroads. These priorities are reflected in
the eligibility criteria below. Generally, projects most suitable for
RRIF Express are rail line modernization projects where the borrower
has a well-documented financial history and easily identified revenue
stream(s) for loan repayment.
To differentiate among Letters of Interest received for projects
under this NOFO, the DOT will consider whether the project satisfies
the following eligibility criteria as demonstrated by the Letter of
Interest:
(i) Applicant: The applicant must be a Class II railroad, a Class
III railroad, a commuter railroad or a joint venture with a Class II,
III, or commuter railroad.
(ii) Project Size: The project must have eligible project costs of
$150 million or less with no minimum amount.
(iii) Project Scope: The project scope, as described in Section B4
of the Letter of Interest, must be limited to the support of railroad
activities that are otherwise eligible for RRIF financing and as
outlined below:
(a) Acquire, improve, or rehabilitate intermodal or rail equipment
or facilities, including track, components of track, bridges, yards,
buildings, and shops, and costs related to these activities, including
pre-construction costs. Note that this category of eligible activities
includes the installation of positive train control systems;
(b) Develop or establish new intermodal or railroad facilities;
(c) Reimburse planning and design expenses relating to activities
listed above;
(d) Refinancing of non-federal debt incurred at least three years
prior to the date of acceptance into RRIF Express and for the purpose
of one or more of the following activities: (1) acquire, improve, or
rehabilitate intermodal or rail equipment or facilities, including
track, components of track, bridges, yards, buildings, and shops, and
costs related to these activities, including pre- construction costs;
and (2) develop or establish new intermodal or railroad facilities;
Refinancing is limited to up to 75% of the final RRIF loan amount.
Letters of Interest including refinancing must demonstrate with
specificity in Section D5 how the refinancing would improve the
creditworthiness of the applicant and document how such improvement
would facilitate the activities referenced in items (a) and (b) above
and would increase the applicant's ability to repay a RRIF loan and the
overall financial health of the applicant.
(iv) Applicant Financial History and Projections: Attachment D-1 of
the Letter of Interest must \11\ include audited financial statements
(by a qualified third party, e.g., a certified public accountant) for
the two (2) most recent consecutive years preceding the year of
application and that have no significant unresolved findings (e.g.,
fiscal years 2018 and
[[Page 35997]]
2019). Interim unaudited financial statements may be submitted with a
letter pledging to provide these audited statements within 60 days of
submitting of the LOI and supporting materials. Failure to provide the
audited financial statements within 60 days will disqualify the LOI.
Applicants choosing this option must still provide unaudited financial
statements for the previous five years and prospective financial
projections (pro-forma) for the term of the loan. In lieu of providing
audited financial statements as documentation of historical financial
information in Attachment D-1 of the Letter of Interest, an applicant
meeting the size standard for small business concerns established under
section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)) may
provide unaudited financial statements if such statements are
accompanied by the applicant's Federal tax returns and Internal Revenue
Service tax verifications for the corresponding years. Borrowers
exercising this option should note that it may impact the time required
to process their application.
---------------------------------------------------------------------------
\11\ Certain applicants may not need to provide audited
financial statements, as explained in more detail below.
---------------------------------------------------------------------------
(v) Collateral: If collateral will be pledged for the RRIF loan,
Section D9 of the Letter of Interest must be supported with an
independent appraisal of the collateral that must have been completed
within the past 12 months preceding submission of an LOI. Section D9 of
the Letter of Interest must demonstrate that the collateral will be
unencumbered at time of closing, including a description of any lien
release process that would occur prior to closing on the RRIF loan to
render currently pledged collateral unencumbered.
(vi) Environmental Documentation: Section B6 and Attachment B-6 of
the Letter of Interest must demonstrate that either NEPA review is
complete or the project is likely to qualify for a Categorical
Exclusion (CE) or Finding of No Significant Impact (FONSI) under NEPA.
If a NEPA review has not been completed, Attachment B-6 must include a
Federal Railroad Administration (FRA) CE worksheet with its Letter of
Interest. Where appropriate, the CE worksheet must include substantive
analysis of potential impacts to environmental resources and indicate
the sources of the information or data used to reach conclusions. For
some project types, the CE worksheet will satisfy NEPA review and
documentation requirements; however, for other project types, the CE
worksheet will inform FRA with sufficient details about the project
scope and potential environmental impacts to determine if an
Environmental Assessment (EA) is required. The Applicant would be
responsible for providing sufficient information and funding for the
preparation of an EA, which would also extend the duration of project
development activities. FRA may require the use of a third-party
contractor consistent with 23 CFR 771.109 (e) for the preparation of an
EA. In the event that an EA is necessary, eligible projects must
receive a FONSI to qualify for RRIF Express.
To help address compliance with Section 106 of the National
Historic Preservation Act, supporting documentation must be submitted
for projects involving reconstruction or replacement of existing
railroad bridges, tunnels, culverts, stations, or depots that assesses
the eligibility of these architectural properties for listing in the
National Register of Historic Places. Supporting documentation must
also be provided for projects involving ground-disturbing site
preparation and construction activities in areas that have not been
previously disturbed (such as by prior land development, agricultural
activities, or the placement of fill), that assesses the archaeological
sensitivity of the project area.
(vii) Domestic Preference: Section B4(a) of the Letter of Interest
must demonstrate that the steel, iron, manufactured goods, and
construction materials used in the project will be produced in the
United States in accordance with the Build America, Buy America Act
(BABA), Public Law 117-58, 70914 and the Federal Railroad
Administration RRIF Buy America policy, which follows 49 U.S.C.
22905(a). Projects that require a waiver are not eligible for RRIF
Express, however, prospective borrowers can seek a loan from the
overall RRIF program for projects that require a waiver.
(viii) Project Readiness: Section B4(c) of the Letter of Interest
must demonstrate the prospective borrower's ability to commence the
contracting process for construction of the project (e.g., issuance of
a final RFP) by not later than 90 days after the date on which a RRIF
credit instrument is obligated for the project.
V. Letter of Interest Process and Review and Next Steps
A. Submission of Letters of Interest
All prospective borrowers seeking acceptance into RRIF Express
should submit a Letter of Interest following the instructions described
in this notice of funding opportunity. The Letter of Interest should be
annotated with ``RRIF EXPRESS'' immediately following the Applicant
Name in the Summary Information section on page one of the Letter of
Interest. The Letter of Interest must, among other things:
(i) Describe the project and its components, location, and purpose
in Section B, and include as Attachment B-2 the project budget
organized according to construction elements from preliminary
engineering estimates, and including costs as appropriate for property,
vehicles, professional services, allocated and unallocated contingency,
and finance charges;
(ii) Outline the proposed financial plan in Section C, and include
the financial model, that addresses such aspects as model assumptions,
annual cash flows, balance sheets, income statements and repayment
schedules for the duration of the loan, as well as coverage ratios and
debt metrics. The model should allow reviewers the flexibility to
evaluate scenarios in the native spreadsheet (Microsoft Excel, or
equivalent) format and be included in the application as Attachment C-
1;
(iii) Provide information regarding satisfaction of other statutory
eligibility requirements of the RRIF credit program; and
(iv) Provide information regarding satisfaction of RRIF Express
eligibility criteria (as described in Section IV above).
Prospective RRIF Express borrowers should describe in Letter of
Interest Section D8 if the project will (1) decrease transportation
costs and improve access, especially for rural communities or
communities in Opportunity Zones,\12\ through reliable and timely
access to employment centers and job opportunities; (2) improve long-
term efficiency, reliability or costs in the movement of workers or
goods; (3) increase the economic productivity of land, capital, or
labor, including assets in Opportunity Zones; (4) result in long-term
job creation and other economic opportunities; or (5) help the United
States compete in a global economy by facilitating efficient and
reliable freight movement. Projects that bridge gaps in service in
rural areas, and projects that attract private economic development,
all support local or regional economic competitiveness.
---------------------------------------------------------------------------
\12\ See https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx
for more information on Opportunity Zones.
---------------------------------------------------------------------------
Letters of Interest must be submitted using the latest form on the
Build America Bureau website: https://www.transportation.gov/content/build-america-bureau. Other RRIF Express information including any
additional terms, conditions, and requirements can
[[Page 35998]]
be found on the Build America Bureau website at: https://www.transportation.gov/buildamerica/rrif-express. The Bureau may
contact a prospective borrower for clarification of specific
information included in the Letter of Interest. The Bureau will review
all Letters of Interest properly filed and received in the submission
time window provided herein.
B. Review and Evaluation
Each Letter of Interest that is properly filed and received will be
evaluated for completeness and eligibility for RRIF Express using the
criteria in this notice. This initial step of the review process will
include (1) an evaluation as to whether the proposed project and
applicant satisfy RRIF statutory eligibility requirements, and (2) an
evaluation as to whether the proposed project and applicant satisfy
RRIF Express eligibility criteria. In addition, the Bureau will conduct
a high- level feasibility assessment of the proposed project and the
applicant's plan of finance before a Letter of Interest is accepted
into RRIF Express and before a Letter of Interest enters the
creditworthiness process. With respect to the project, factors that
will be considered include, but are not limited to, (1) the completion
of the project being financed is not necessary to repay the proposed
RRIF loan; (2) the project budget is in year of expenditure and
includes contingencies to account for potential project risks; and (3)
the maturity of the proposed RRIF loan does not extend beyond the
project's anticipated useful life. With respect to the applicant's plan
of finance, factors that will be considered include, but are not
limited to, (1) a maximum loan size that, when added to the proposed
borrower's existing outstanding and undrawn available debt, does not
substantially exceed an earnings before interest, taxes, depreciation,
and amortization multiple that would be market appropriate in a similar
circumstance, for the most recent trailing twelve month period and for
any period of the applicant's forecast; and (2) consistent levels of
revenue and operating profitability demonstrated by the proposed
borrower over the most recent fiscal year.
The Letters of Interest determined to be eligible for RRIF Express
will then be advanced to the Bureau's creditworthiness review process,
which is an in-depth creditworthiness review of the project sponsor and
the revenue stream proposed to repay the RRIF credit assistance as
described in the Programs Guide. The Secretary reserves the right to
limit the number of applications from a single entity or subordinates
of a single parent or holding company. Prospective RRIF borrowers whose
RRIF Express Letters of Interest are determined to be ineligible, but
whose projects are otherwise statutorily eligible for standard RRIF
credit assistance, have the option to be considered under the overall
RRIF program.
Issued in Washington, DC.
Peter Paul Montgomery Buttigieg,
Secretary of Transportation.
[FR Doc. 2023-11576 Filed 5-31-23; 8:45 am]
BILLING CODE 4910-9X-P
