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[Federal Register Volume 76, Number 213 (Thursday, November 3, 2011)]
[Notices]
[Pages 68257-68260]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28584]

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Letters of Interest for Credit Assistance Under the 
Transportation Infrastructure Finance and Innovation Act (TIFIA) 
Program

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

ACTION: Notice of funding availability.

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SUMMARY: The DOT's TIFIA Joint Program Office (JPO) announces the 
availability of a limited amount of funding in Fiscal Year (FY) 2012 to 
provide credit assistance. Under TIFIA, the DOT provides secured 
(direct) loans, lines of credit, and loan guarantees to public and 
private applicants for eligible surface transportation projects of 
regional or national significance. Projects must meet statutorily 
specified criteria to be selected for credit assistance.
    Because demand for the TIFIA program exceeds budgetary resources, 
the DOT is utilizing periodic fixed-date solicitations. This notice 
outlines the

[[Page 68258]]

process that project sponsors must follow to compete to secure an 
invitation for Federal credit assistance for Federal FY 2012.

DATES: For consideration in the FY 2012 funding cycle, Letters of 
Interest must be submitted by 4:30 p.m. EST on December 30, 2011, using 
the revised form on the TIFIA Web site: http://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm. Project sponsors that have 
previously submitted Letters of Interest for a prior fiscal year's 
funding must resubmit them to be considered for funding in FY 2012, as 
outlined below.

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

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

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Program Funding
III. Eligible Projects
IV. Types of Credit Assistance
V. Estimated Project Cost Threshold Requirements
VI. Letters of Interest and Applications
VII. Selection Criteria

I. Background

    The Transportation Equity Act for the 21st Century (TEA-21), Public 
Law 105-178, 112 Stat.107, 241, (as amended by sections 1601-02 of Pub. 
L. 109-59) established the Transportation Infrastructure Finance and 
Innovation Act of 1998 (TIFIA), authorizing the U.S. Department of 
Transportation (DOT) to provide credit assistance in the form of 
secured (direct) loans, lines of credit, and loan guarantees to public 
and private applicants for eligible surface transportation projects. 
The TIFIA regulations (49 CFR part 80) provide specific guidance on the 
program requirements.\1\ On January 5, 2001, at 65 FR 2827, the 
Secretary of Transportation (Secretary) delegated to the Administrator 
of the Federal Highway Administration (FHWA) the authority to act as 
the Executive Agent for the TIFIA program (49 CFR 1.48(b)(6)). The 
TIFIA JPO, a component of the FHWA Office of Innovative Program 
Delivery, has responsibility for coordinating program implementation.
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    \1\ The TIFIA regulations have not been updated to reflect 
changes enacted in Public Law 109-59, SAFETEA-LU. Where the statute 
and the regulation conflict, the statute takes precedence. See the 
TIFIA Program Guide for updated program information.
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II. Program Funding

    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. SAFETEA-LU 
authorized $122 million annually from the Highway Trust Fund (HTF) for 
Fiscal Years (FY) 2005 to 2009 in TIFIA budget authority to pay the 
subsidy cost of credit assistance. As of the publication date of this 
notice, extensions of the surface transportation reauthorization act 
have been enacted continuing highway programs that were authorized 
through FY 2009, and the expectation is that Congress will reauthorize 
an equivalent amount of budget authority for the TIFIA program in FY 
2012. Any budget authority not obligated in the fiscal year for which 
it is authorized remains available for obligation in subsequent years. 
The TIFIA budget authority is subject to an annual obligation 
limitation that may be established in appropriations law. Like all 
funds subject to the annual Federal-aid obligation ceiling, the amount 
of TIFIA budget authority available in a given year may be less than 
the amount authorized for that fiscal year.
    After reductions for administrative expenses and application of the 
annual obligation limitation, TIFIA has approximately $110 million 
available annually to provide credit subsidy support to projects. 
Although dependent on the individual risk profile of each loan, 
collectively, this budget authority could support approximately $1.1 
billion in annual lending capacity.

III. Eligible Projects

    Highway, passenger rail, transit, intermodal projects, and 
intelligent transportation systems may receive credit assistance under 
TIFIA. Additionally, SAFETEA-LU expanded eligibility to private rail 
facilities providing public benefit to highway users, and surface 
transportation infrastructure modifications necessary to facilitate 
direct intermodal transfer and access into and out of a port terminal. 
See the definition of ``project'' in 23 U.S.C. 601(a)(8) and Chapter 3 
of the TIFIA Program Guide for a description of eligible projects.

(http://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm).

IV. Types of Credit Assistance

    The DOT may provide credit assistance in the form of secured 
(direct) loans, lines of credit, and loan guarantees. These types of 
credit assistance are defined in 23 U.S.C. 601 and 49 CFR 80.3. The 
TIFIA credit facility, which must be senior or parity lien in the event 
of bankruptcy, liquidation or insolvency, can be subordinate as to cash 
flows absent such an event. The maximum amount of TIFIA credit 
assistance to a project is limited to 33 percent of eligible project 
costs. Applicants may not include any of the fees assessed by TIFIA, or 
costs related to the application process (such as charges associated 
with obtaining the required preliminary rating opinion letter 
referenced in section V), among eligible project costs for the purpose 
of calculating the maximum 33 percent credit amount.

V. Estimated Project Cost Threshold Requirements

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

VI. Letters of Interest and Applications

    Because the demand for credit assistance exceeds budgetary 
resources, the DOT is utilizing periodic fixed-date solicitations that 
will establish a competitive group of projects to be evaluated against 
the TIFIA program statute, regulation, and objectives.

[[Page 68259]]

    Project sponsors seeking TIFIA credit assistance for FY 2012 must 
submit a Letter of Interest describing the project fundamentals and 
addressing the TIFIA selection criteria. For consideration in the FY 
2012 funding cycle, Letters of Interest must be submitted by 4:30 p.m. 
EST, via email at: TIFIACredit@dot.gov on December 30, 2011, using the 
revised form on the TIFIA Web site: http://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm. Project sponsors that have previously 
submitted Letters of Interest for a prior fiscal year's funding must 
resubmit them using the FY 2012 form. For the purpose of completing its 
evaluation, the TIFIA JPO staff may contact an applicant regarding 
specific information in the Letter of Interest.
    A public agency that seeks access to TIFIA on behalf of multiple 
competitors for a project concession must submit the project's Letter 
of Interest. The DOT will not consider Letters of Interest from 
entities that have not obtained rights to develop the project.
    After concluding its review of the Letters of Interest, the DOT 
will invite complete applications (including the preliminary rating 
opinion letter and detailed plan of finance). Letters of Interest 
submitted pursuant to this notice of funding availability do not need 
to include a preliminary rating opinion letter. However, projects 
invited to submit applications will be required to obtain a preliminary 
rating opinion letter. The senior debt obligations for each project 
receiving TIFIA credit assistance must obtain an investment grade 
rating from at least one nationally recognized credit rating agency, as 
defined in 23 U.S.C. 601(a)(10) and 49 CFR 80.3. If the TIFIA credit 
instrument is proposed as the senior debt, then it must receive the 
investment grade rating.
    To demonstrate this potential, each application must include a 
preliminary rating opinion letter from a credit rating agency that 
addresses the creditworthiness of the senior debt obligations funding 
the project and concludes that there is a reasonable probability for 
the senior debt obligations to receive an investment grade rating. The 
rating opinion letter should also provide an opinion on the default 
risk for the TIFIA instrument and 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: http://www.fhwa.dot.gov/ipd/tifia/guidance_applications/index.htm.
    An invitation to apply for credit assistance does not guarantee 
DOT's approval, which will remain subject to evaluation based on 
TIFIA's statutory credit standards and the successful negotiation of 
all terms and conditions.
    There is no fee to submit a Letter of Interest. For projects that 
are invited to apply, fees are charged to cover the cost of financial 
and legal advisory services. Additional fees will be charged after the 
loan is executed. More detailed information about these fees can be 
found in Chapter 4 of the TIFIA Program Guide: http://www.fhwa.dot.gov/ipd/pdfs/tifia/tifia_program_guide_072511.pdf.

VII. Selection Criteria

    The eight TIFIA selection criteria are described in statute at 23 
U.S.C. 602(b) and are assigned relative weights via regulation at 49 
CFR 80.15. The criteria are restated below with clarifying language 
(where appropriate). The DOT may give priority to projects that enhance 
the TIFIA portfolio's geographic diversity and have a significant 
impact on desirable long-term outcomes for the Nation, a metropolitan 
area, or a region. In addition, DOT may consider the project's 
readiness and timeline to proceed to financial close on the TIFIA 
instrument. With respect to selection criteria that have multiple 
components, a project need not be well aligned with each of the 
components in order to be successful in that criterion overall. 
However, projects that are strongly aligned with multiple components 
will be the most successful in those criteria. Furthermore, a project 
that has a negative effect on safety or environmental sustainability 
will need to demonstrate significant merits in other components in 
order to be selected for funding. Listed in order of relative weight, 
the TIFIA selection criteria are as follows:
    (i) The extent to which the project is nationally or regionally 
significant, in terms of generating economic benefits, supporting 
international commerce, or otherwise enhancing the national 
transportation system. This includes consideration of livability: 
providing transportation options that are linked with housing and 
commercial development to improve the economic opportunities and 
quality of life for people in communities across the U.S.; economic 
competitiveness: contributing to the economic competitiveness of the 
U.S. by improving the long-term efficiency and reliability in the 
movement of people and goods; and safety: improving the safety of U.S. 
transportation facilities and systems and the communities and 
populations they impact. Relative weight: 20 percent.
    (ii) The extent to which TIFIA assistance would foster innovative 
public-private partnerships and attract private debt or equity 
investment. Relative weight: 20 percent.
    (iii) The extent to which the project helps maintain or protect the 
environment. This includes sustainability: improving energy efficiency, 
reducing dependence on oil, reducing greenhouse gas emissions, and 
reducing other transportation-related impacts on ecosystems; including 
the use of tolling or pricing structures to reduce or manage high 
levels of congestion on highway facilities and encourage the use of 
alternative transportation options; and state of good repair: improving 
the condition of existing transportation facilities and systems, with 
particular emphasis on projects that minimize lifecycle costs and use 
environmentally sustainable practices and materials. Relative weight: 
20 percent.
    (iv) The creditworthiness of the project. This includes a 
demonstrated capacity to repay the Federal credit assistance as well as 
a determination that the project has appropriate security features such 
as proper coverage ratios, rate covenants, and reserves, as applicable. 
Relative weight: 12.5 percent.
    (v) The likelihood that TIFIA assistance would enable the project 
to proceed at an earlier date than the project would otherwise be able 
to proceed. For purposes of this criterion, project sponsors should 
demonstrate that traditional sources of financing are not available at 
feasible rates, or that the costs of traditional financing would 
constrain their ability to deliver the project, or that delivery of 
this project through traditional financing approaches would constrain 
their ability to deliver additional components of their capital 
programs. Relative weight: 12.5 percent.
    (vi) The extent to which the project uses new technologies, 
including intelligent transportation systems, to enhance the efficiency 
of the project. Relative weight: 5 percent.
    (vii) The amount of budget authority required to fund the Federal 
credit instrument made available under TIFIA. Relative weight: 5 
percent.
    (viii) The extent to which TIFIA assistance would reduce the 
contribution of Federal grant assistance

[[Page 68260]]

to the project. Relative weight: 5 percent.

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

    Issued on: October 31, 2011.
Victor M. Mendez,
Administrator.
[FR Doc. 2011-28584 Filed 11-2-11; 8:45 am]
BILLING CODE 4910-9X-P
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