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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3578 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 3578

 To amend title 49, United States Code, to ensure the continuation of 
        fixed guideway system projects, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 21, 2003

Mr. Honda (for himself, Mrs. Tauscher, Mr. Case, Mr. Acevedo-Vila, Ms. 
Lofgren, Mrs. Jones of Ohio, Mr. George Miller of California, Mr. Meeks 
of New York, Ms. Eddie Bernice Johnson of Texas, Mr. Lewis of Georgia, 
  Mr. Blumenauer, and Mr. Abercrombie) introduced the following bill; 
       which was referred to the Committee on Transportation and 
                             Infrastructure

_______________________________________________________________________

                                 A BILL

 
 To amend title 49, United States Code, to ensure the continuation of 
        fixed guideway system projects, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Starts Enhancement and Local 
Investment Promotion Act of 2003''.

SEC. 2. DETERMINATION OF PROJECT JUSTIFICATION CRITERIA FOR FIXED 
              GUIDEWAY PROJECTS.

    Section 5309(e)(6) of title 49, United States Code, is amended--
            (1) by striking ``A proposed project'' and inserting the 
        following:
                    ``(A) In general.--A proposed project''; and
            (2) by adding at the end the following:
                    ``(B) Determination of cost effectiveness.--
                            ``(i) In general.--For purposes of 
                        paragraph (1)(B), the Secretary shall use the 
                        new starts cost to determine the cost 
                        effectiveness of a project.
                            ``(ii) New starts cost defined.--In this 
                        subparagraph, the term `new starts cost' means 
                        the amounts allocated for the project from 
                        amounts made available to carry out this 
                        section.''.

SEC. 3. UNDERTAKING PROJECTS IN ADVANCE.

    Section 5309(n) is amended by adding at the end the following:
    ``(4) If a State or local governmental authority agrees to provide 
60 percent or more of the net cost of a project from non-Federal funds, 
the Secretary, at the request of the State or local governmental 
authority, shall waive the requirement of paragraph (1)(C) with respect 
to the project, thereby allowing the State or local governmental 
authority to carry out any pre-construction part of the project without 
regard to whether the Secretary has approved in advance the plans and 
specifications for that part. If a State or local governmental 
authority requests a waiver for a project under this paragraph, the 
agreed upon non-Federal share shall continue to apply through 
completion of the project.''.

SEC. 4. DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION.

    Section 182 of title 23, United States Code, is amended--
            (1) in subsection (a)--
                    (A) paragraph (2) by adding at the end the 
                following: ``The application process for a new starts 
                project approved for a full funding grant agreement 
                under section 5309(g) of title 49, shall serve jointly 
                as an application for a secured loan, line of credit, 
                and loan guarantee under this subchapter.''; and
                    (B) in paragraph (3) by adding at the end the 
                following:
                    ``(C) New starts projects.--In the case of a new 
                starts project approved for a full funding grant 
                agreement described in section 5309 of title 49, 
                eligible project costs shall be determined in 
                accordance with the allowable cost thresholds in such 
                section.''; and
            (2) in subsection (b)(2)--
                    (A) subparagraph (A) by striking ``The selection 
                criteria'' and inserting the following: ``Except as 
                provided in subparagraph (B), the selection criteria'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) New starts projects.--Approval of a full 
                funding grant agreement for the new starts program 
                under section 5309 of title 49 shall constitute 
                eligibility for selection in this subsection subject to 
                confirmation of a preliminary rating opinion letter in 
                subparagraph (C).''

SEC. 5. LINES OF CREDIT.

    Section 184 of title 23, United States Code, is amended--
            (1) in subsection (a) by striking paragraph (2) and 
        inserting the following:
            ``(2) Use of proceeds.--
                    ``(A) The proceeds of a line of credit made 
                available under this section shall be available to pay 
                eligible project costs, including debt service on 
                project obligations issued to finance eligible project 
                costs, extraordinary repair and replacement costs, 
                operation and maintenance expenses, and costs 
                associated with unexpected Federal or State 
                environmental restrictions.
                    ``(B) For projects with an approved full funding 
                grant agreement under section 5309 of title 49 and a 
                non-Federal revenue share of at least 60 percent of the 
                project cost, the proceeds of a line of credit made 
                available under this section shall be available to pay 
                eligible project costs as defined in subparagraph (A) 
                and to provide liquidity for a variable rate 
                remarketing program.''; and
            (2) in subsection (b)--
                    (A) by striking paragraphs (3) and (4) and 
                inserting the following:
            ``(3) Draws.--Any draw on the line of credit shall not 
        represent a guarantee of debt payment, but shall represent a 
        direct loan and shall be made and repaid only under the terms, 
        rate, and conditions as agreed to by the project sponsor and 
        Secretary.
            ``(4) Interest rate.--The interest rate on a direct loan 
        resulting from a draw on the line of credit shall be not less 
        than one of the following rates as selected by the obligor:
                    ``(A) Fixed rate.--The fixed rate shall be the 
                yield on 30-year marketable United States Treasury 
                securities as of the date on which the line of credit 
                is obligated.
                    ``(B) Variable rate.--The variable rate shall be 
                the yield on a 30-day Treasury bill auctioned for the 
                preceding 3-month period to be reset monthly on the 
                first business day of each month.'';
                    (B) by striking paragraph (6) and inserting the 
                following:
            ``(6) Period of availability.--
                    ``(A) In general.--Except as provided in 
                subparagraph B, the line of credit shall be available 
                during the period beginning on the date of substantial 
                completion of the project, as determined by the project 
                sponsor, and ending not later than 10 years after that 
                date.
                    ``(B) Availability.--For projects with an approved 
                full funding grant agreement under section 5309 of 
                title 49, the line of credit shall be available during 
                the period beginning on the date of approval of the 
                full funding grant agreement and ending not later than 
                10 years after the date of substantial completion of 
                the project.''; and
                    (C) by striking paragraph (9) and inserting the 
                following:
            ``(9) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the 
        Government in providing a line of credit under this section. 
        Fees shall be waived for projects with an approved full funding 
        grant agreement under section 5309 of title 49.''.

SEC. 6. FUNDING.

    Section 188(a) of title 23 is amended by inserting ``and section 
5340 of title 49'' after ``this subchapter''.

SEC. 7. ASSURANCE OF EXISTING FULL FUNDING GRANT AGREEMENT.

    Chapter 53 of title 49, United States Code, is amended--
            (1) by redesignating section 5339 as section 5341; and
            (2) by inserting after section 5338 the following:
``Sec. 5339. New starts full funding grant agreement authorizations
    ``(a) Purpose.--The purpose of this section is to ensure that 
agreements made pursuant to section 5309(g) are honored in the annual 
appropriations process.
    ``(b) General Authority.--In conjunction with the report required 
each February under section 5309(o), the Secretary shall provide 
information in such report regarding the project readiness and the 
difference between the full funding grant agreement amount for a fiscal 
year and the amount appropriated in the same year for such project.
    ``(c) Apportionments.--
            ``(1) In general.--Subject to section 5309, each new starts 
        project with a full funding grant agreement shall be funded 
        from amounts made available from the capital program grants and 
        loans under section 5338(b) for each of fiscal years 2004 
        through 2009 to carry out such project in accordance with the 
        annual schedule contained in each agreement.
            ``(2) Full funding grant agreements.--
                    ``(A) Existing full funding grant agreement 
                projects.--The following is a list of existing projects 
                with full funding grant agreements:
                            ``(i) Atlanta-North Springs Extension.
                            ``(ii) Baltimore-Central LRT Double 
                        Tracking.
                            ``(iii) Boston-Piers-MOS-2 (So. Sta. to Wo. 
                        Tr.).
                            ``(iv) Chicago-Douglas Branch 
                        Reconstruction.
                            ``(v) Chicago-North Central Corridor 
                        Commuter Rail.
                            ``(vi) Chicago-Metra Southwest Corridor 
                        Commuter Rail.
                            ``(vii) Chicago-Union-Pacific West Line 
                        Extension.
                            ``(viii) Dallas-North Central LRT 
                        Extension.
                            ``(ix) Denver Southeast Corridor LRT.
                            ``(x) Fort Lauderdale-Tri-Rail Commuter 
                        Rail Upgrade.
                            ``(xi) Los Angeles-North Hollywood.
                            ``(xii) Memphis-Medical Center Extension.
                            ``(xiii) Minneapolis-Hiawatha Corridor LRT.
                            ``(xiv) New Jersey Urban Core-Hudson-Bergen 
                        LRT.
                            ``(xv) Newark Rail Link (MOS-1).
                            ``(xvi) New Orleans-Canal Street
                            ``(xvii) Northern New Jersey-Hudson-Berger 
                        LRT MOS-2.
                            ``(xviii) Pittsburgh-Stage II LRT 
                        Reconstruction.
                            ``(xix) Portland-Interstate MAX LRT 
                        Extension.
                            ``(xx) Salt Lake City-CBD to University 
                        LRT.
                            ``(xxi) Salt Lake City-Medical Center.
                            ``(xxii) San Diego-Mission Valley East LRT 
                        Extension.
                            ``(xxiii) San Diego-Oceanside Escondido.
                            ``(xxiv) San Francisco-BART Extension to 
                        San Francisco Airport.
                            ``(xxv) San Juan-Tren Urbano.
                            ``(xxvi) St. Louis St. Clair MetroLink 
                        Extension [Phase IIa].
                            ``(xxvii) Washington DC/MD-Largo Metrorail 
                        Extension.
                    ``(B) Future full funding grant agreements.--The 
                provisions of paragraph (1) shall apply to all future 
                full funding grant agreements approved by the Secretary 
                of Transportation.
    ``(d) Failure to Comply.--If the Secretary determines that a 
project delay is the result of a cause other than a delay in receipt of 
funding per the full funding grant agreement payment schedule, this 
section shall not apply.''.

``SEC. 5340. NEW STARTS PROJECT STABILITY LOAN PROGRAM.

    ``(a) Purpose.--The purpose of this section is to ensure that new 
starts projects with an approved full funding grant agreement are held 
financially harmless in the event that the annual Federal appropriation 
falls short of the annual amounts identified in the full funding grant 
agreement payment schedule.
    ``(b) General Authority.--
            ``(1) In general.--The Secretary of Transportation shall 
        make loans available to a new starts project sponsor in an 
        amount equal to the difference between the full funding grant 
        agreement amount for a fiscal year, and the amount appropriated 
        in the same year for such project if the amount appropriated is 
        lower than the full funding agreement amount for such year.
            ``(2) Except as provided in this paragraph, the secured 
        loan shall be made in accordance with section 183 of title 23.
                    ``(A) Maximum amount.--The maximum amount of the 
                secured loan available to a new starts project sponsor 
                shall equal the amount of the difference between the 
                full funding grant agreement amount for a fiscal year 
                and the amount appropriated for a project in the same 
                year if the amount appropriated is lower than the full 
                funding agreement amount for such year.
                    ``(B) Payment.--The secured loan shall be repaid by 
                the Federal Government through a subsequent 
                appropriation from the new starts program as authorized 
                in section 5338(b). Any interest expense paid shall not 
                be assigned to a specific new starts project, and 
                therefore, shall not result in any change to the full 
                funding grant agreement, schedule, or commitment under 
                section 5309.
                    ``(C) Fees.--No fees shall be established or 
                charged for secured loans made subject to this section.
                    ``(D) Repayment.--
                            ``(i) Commencement.--Scheduled loan 
                        repayments of principal or interest on a 
                        secured loan under this section shall commence 
                        with the next available appropriations of new 
                        starts funding for the project.
                            ``(ii) Sources of repayment of funds.--The 
                        source of funds for scheduled loan repayments 
                        under this section shall be new starts funding 
                        as authorized under section 5338(b) of title 49 
                        or other Federal funds as determined by the 
                        Secretary.
            ``(3) For purposes of calculating the threshold of 33 
        percent of the eligible project cost under section 184(b)(10) 
        of title 23, any secured loans made pursuant to this section 
        shall be excluded.''.

SEC. 8. NEW STARTS AMENDMENTS.

    (a) Grants as Contractual Obligations.--Section 5309 of title 49 is 
amended--
            (1) in subsection (g)(1)(D) by inserting before the period 
        the following: ``or as made available for grant agreements 
        under section 5339 and loans under section 5340'';
            (2) in subsection (g)(2)(A)--
                    (A) in clause (iii) by striking ``and'' after the 
                semicolon;
                    (B) in clause (iv) by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
                            ``(v) authorize a project sponsor as 
                        eligible for a line of credit under subchapter 
                        II of chapter 1 of title 23; and
                            ``(vi) provide the maximum amount of 
                        Government financial assistance for interest 
                        expenses incurred through a new starts project 
                        financial stability loan authorized under 
                        section 5340.'';
            (3) by striking subsection (g)(2)(B) and inserting the 
        following:
                    ``(B)(i) An agreement under this paragraph 
                obligates an amount of available budget authority 
                specified in law and may include a commitment, 
                contingent on amounts to be specified in law in advance 
                for commitments under this paragraph, to obligate an 
                additional amount from future available budget 
                authority specified in law. The agreement shall state 
                that the contingent commitment is not an obligation of 
                the Government. Interest and other financing costs of 
                efficiently carrying out a part of the project within a 
                reasonable time are a cost of carrying out the project 
                under a full funding grant agreement, except that 
                eligible costs may not be more than the cost of the 
                most favorable financing terms reasonably available for 
                the project at the time of borrowing. The applicant 
                shall certify, in a manner satisfactory to the 
                Secretary of Transportation, that the applicant has 
                shown reasonable diligence in seeking the most 
                favorable financing terms. The amount stipulated in an 
                agreement under this paragraph for a fixed guideway 
                project shall be sufficient to complete at least an 
                operable segment.
                    ``(ii) An amount equal to the difference between 
                the full funding grant agreement amount for a fiscal 
                year, and the amount appropriated in the same year if 
                the amount appropriated is lower than the full funding 
                agreement amount for such year, may be loaned to the 
                project sponsor through a new starts financial 
                stability loan authorized under section 5340. Interest 
                expenses associated with a new starts financial 
                stability loan shall--
                            ``(I) shall be funded from amounts made 
                        available under section 5338(b); and
                            ``(II) not be assigned to a specific new 
                        starts project for purposes of full funding 
                        grant agreement calculations.''; and
            (4) by striking subsection (k) and inserting the following:
    ``(k) Limitation on Making Loans and Grants for Projects.--Except 
as provided under subchapter II of chapter 1 of title 23, the Secretary 
of Transportation may not make a loan under this section for a project 
for which a grant (except a relocation payment grant) is made under 
this section. Notwithstanding the preceding sentence and subchapter II 
of chapter 1 of title 23, the Secretary may make a project grant under 
this section in a case in which real property for the project has been 
or shall be acquired through a loan under subsection (b) of this 
section.''.

SEC. 9. FIXED GUIDEWAY PROJECTS.

    Section 5309(e) of title 49, United States Code, is amended by 
adding at the end the following:
            ``(9) Prohibition on imposition of overall funding 
        limits.--The Secretary may not impose an overall limitation on 
        the amount of Government financial assistance that may be 
        expended for--
                    ``(A) alternatives analysis and preliminary 
                engineering for a project under this subsection; or
                    ``(B) a full funding grant agreement for a project 
                entered into under paragraph (7).''.

SEC. 10. DEFINITIONS.

    Section 181 of title 23, United States Code, is amended--
            (1) by redesignating paragraph (6) as paragraph (8);
            (2) by redesignating paragraphs (3) through (5) as 
        paragraphs (4) through (6), respectively;
            (3) by inserting after paragraph (6), as redesignated, the 
        following:
            ``(7) Liquidity.--The term `liquidity' means an agreement 
        by the Federal Government to provide a credit support 
        instrument that will provide for the potential purchase of any 
        variable or other short-term security issued in conjunction 
        with the financing plan that cannot be remarketed or resold 
        under the marketing or remarketing agreement signed by the 
        project sponsor. Any such draw or use of the liquidity shall 
        then constitute a secured loan to be repaid under terms 
        consistent with this section and approved by the Secretary.''.
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