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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 942 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 942

     To provide for improved investment in national transportation 
                            infrastructure.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 10, 2011

 Mrs. Murray (for herself, Ms. Collins, and Mr. Durbin) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
     To provide for improved investment in national transportation 
                            infrastructure.

    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 ``Transportation Infrastructure Grants 
and Economic Reinvestment Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State;
                    (B) a local government;
                    (C) a transit agency; and
                    (D) 2 or more of the entities described in 
                subparagraphs (A) through (C), working in 
                collaboration.
            (2) Eligible project.--
                    (A) In general.--The term ``eligible project'' 
                means a transportation project that, as determined by 
                the Secretary, would have a significant beneficial 
                impact on a State, a metropolitan area, a region, or 
                the United States.
                    (B) Inclusions.--The term ``eligible project'' 
                includes--
                            (i) a highway or bridge project eligible 
                        for funding under chapter 1 of title 23, United 
                        States Code;
                            (ii) a public transportation project 
                        eligible for funding under chapter 53 of title 
                        49, United States Code;
                            (iii) a passenger or freight rail 
                        transportation project; and
                            (iv) a port infrastructure project.
            (3) Eligible project costs.--
                    (A) In general.--The term ``eligible project 
                costs'' means costs relating to an eligible project, 
                such as the costs of--
                            (i) development phase activities, including 
                        planning, feasibility analysis, revenue 
                        forecasting, environmental review, permitting, 
                        preliminary engineering and design work, and 
                        other preconstruction activities;
                            (ii) construction, reconstruction, 
                        rehabilitation, replacement, and acquisition of 
                        real property (including land related to the 
                        eligible project and improvements to land), 
                        environmental mitigation, construction 
                        contingencies, and acquisition of equipment; 
                        and
                            (iii) capitalized interest necessary to 
                        meet market requirements, reasonably required 
                        reserve funds, capital issuance expenses, and 
                        other carrying costs during construction.
                    (B) Exclusion.--The term ``eligible project costs'' 
                does not include the costs of dredging activities.
            (4) Federal credit instrument.--The term ``Federal credit 
        instrument'' means a secured loan or loan guarantee authorized 
        to be made available under this Act with respect to an eligible 
        project.
            (5) Investment-grade rating.--The term ``investment-grade 
        rating'' means a rating of BBB minus, Baa3, bbb minus, BBB 
        (low), or higher assigned by a rating agency to project 
        obligations.
            (6) Lender.--The term ``lender'' means any non-Federal 
        qualified institutional buyer (as defined in section 
        230.144A(a) of title 17, Code of Federal Regulations (or any 
        successor regulation), known as Rule 144A(a) of the Securities 
        and Exchange Commission and issued under the Securities Act of 
        1933 (15 U.S.C. 77a et seq.)), including--
                    (A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986) 
                that is a qualified institutional buyer; and
                    (B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986) that is a 
                qualified institutional buyer.
            (7) Loan guarantee.--The term ``loan guarantee'' means any 
        guarantee or other pledge by the Secretary to pay all or part 
        of the principal of and interest on a loan or other debt 
        obligation issued by an obligor and funded by a lender.
            (8) Obligor.--The term ``obligor'' means a party primarily 
        liable for payment of the principal of or interest on a Federal 
        credit instrument, which party may be a corporation, 
        partnership, joint venture, trust, or governmental entity, 
        agency, or instrumentality.
            (9) Project obligation.--The term ``project obligation'' 
        means any note, bond, debenture, or other debt obligation 
        issued by an obligor in connection with the financing of an 
        eligible project, other than a Federal credit instrument.
            (10) Rating agency.--The term ``rating agency'' means a 
        credit rating agency registered with the Securities and 
        Exchange Commission as a nationally recognized statistical 
        rating organization (as defined in section 3(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
            (11) Rural area.--The term ``rural area'' means any area 
        not in an urbanized area (as that term is defined by the Census 
        Bureau).
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (13) Secured loan.--The term ``secured loan'' means a 
        direct loan or other debt obligation issued by an obligor and 
        funded by the Secretary in connection with the financing of an 
        eligible project.
            (14) State.--The term ``State'' means--
                    (A) any of the 50 States; or
                    (B) the District of Columbia.
            (15) Subsidy amount.--The term ``subsidy amount'' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument, calculated on a net present value basis, excluding 
        administrative costs and any incidental effects on governmental 
        receipts or outlays in accordance with the provisions of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
            (16) Substantial completion.--The term ``substantial 
        completion'' means the opening of an eligible project to 
        vehicular or passenger traffic.

SEC. 3. NATIONAL INFRASTRUCTURE INVESTMENT PROGRAM.

    (a) Program.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall by regulation establish a program under 
which the Secretary shall provide grants, secured loans, and loan 
guarantees on a competitive basis, to eligible entities for use in 
carrying out eligible projects.
    (b) Grant Requirements.--
            (1) Amount.--Except as provided in paragraph (5)(B)(i), a 
        grant or secured loan provided under this Act shall be in an 
        amount that is not less than $10,000,000 and not greater than 
        $500,000,000.
            (2) Geographical distribution; balance; investment.--In 
        providing grants and Federal credit instruments under this Act, 
        the Secretary shall take such measures as are necessary to 
        ensure, to the maximum extent practicable--
                    (A) an equitable geographical distribution of 
                funds;
                    (B) an appropriate balance in addressing the needs 
                of urban and rural areas; and
                    (C) investment in a variety of transportation 
                modes.
            (3) Maximum percentage per state.--Not more than 25 percent 
        of the amounts made available to provide grants and Federal 
        credit instruments under this Act for a fiscal year may be 
        provided for eligible projects in a State.
            (4) Federal share.--
                    (A) In general.--Except as provided in paragraph 
                (5)(B)(ii), the Federal share of the cost of carrying 
                out any eligible project funded by a grant or secured 
                loan under this Act shall be, at the option of the 
                eligible entity receiving the grant, up to 80 percent.
                    (B) Priority.--In providing grants and secured 
                loans under this Act, the Secretary shall give priority 
                to eligible projects that require a contribution of 
                Federal funds in order to complete an overall financing 
                package for the eligible projects.
            (5) Eligible projects in rural areas.--
                    (A) In general.--Not less than 20 percent of the 
                amounts made available to provide grants under this Act 
                for a fiscal year shall be provided for eligible 
                projects located in rural areas.
                    (B) Minimum grant amount; federal share.--With 
                respect to an eligible project located in a rural 
                area--
                            (i) the minimum amount of a grant or 
                        secured loan provided under this Act shall be 
                        $1,000,000; and
                            (ii) the Secretary may increase the Federal 
                        share of the cost of carrying out the eligible 
                        project up to 100 percent.
            (6) Set-asides for certain costs, projects, and 
        transfers.--Of the amounts made available under this Act for a 
        fiscal year, the Secretary may--
                    (A) use not more than 25 percent to pay the subsidy 
                and administrative costs of secured loans and loan 
                guarantees for eligible projects;
                    (B) use an amount not to exceed $20,000,000 for 
                grants that pay for the planning, preparation, or 
                design of eligible projects; and
                    (C) use an amount not to exceed $35,000,000 to fund 
                the provision and oversight of grants under this Act, 
                including transfers of funds from that amount to the 
                Administrators of the Federal Highway Administration, 
                the Federal Transit Administration, the Federal 
                Railroad Administration, and the Federal Maritime 
                Administration to fund the provision and oversight of 
                grants under this Act for eligible projects under the 
                administrative jurisdiction of those agencies.
    (c) Selection Among Eligible Projects.--
            (1) Establishment.--The Secretary shall establish criteria 
        for use in selecting among eligible projects to receive funding 
        under this Act.
            (2) Selection criteria.--
                    (A) Primary selection criteria.--The Secretary 
                shall select among eligible projects by evaluating the 
                extent to which an eligible project provides 
                significant benefits to a State, a metropolitan area, a 
                region, or the United States, including the extent to 
                which an eligible project--
                            (i) improves the safety of transportation 
                        facilities and systems;
                            (ii) improves the condition of existing 
                        transportation facilities and systems;
                            (iii) contributes to economic 
                        competitiveness over the medium- to long-term;
                            (iv) improves the environment, improves 
                        energy efficiency, reduces dependence on oil, 
                        or reduces greenhouse gas emissions; and
                            (v) improves access to transportation 
                        facilities and systems.
                    (B) Secondary selection criteria.--In addition to 
                considering the primary selection criteria described in 
                subparagraph (A), the Secretary shall consider the 
                extent to which a project--
                            (i) uses innovative strategies or 
                        technologies to pursue any of those primary 
                        selection criteria; and
                            (ii) demonstrates strong collaboration 
                        among a broad range of participants, or the 
                        integration of transportation with other public 
                        service efforts.
                    (C) Federal credit instruments.--In selecting among 
                eligible projects to receive Federal credit 
                instruments, the Secretary shall consider the 
                creditworthiness of each eligible project, including a 
                determination by the Secretary that any financing for 
                the eligible project has appropriate security features, 
                such as a rate covenant, to ensure repayment.
    (d) Application Requirement.--
            (1) In general.--The Secretary shall require that each 
        application for a grant or Federal credit instrument under this 
        Act include an analysis of project benefits and costs.
            (2) Federal credit instruments.--For purposes of subsection 
        (c)(2)(C), the Secretary shall require each eligible project 
        applicant to provide a preliminary rating opinion letter from 
        at least 1 rating agency indicating that the senior project 
        obligations, which may be the Federal credit instrument, have 
        the potential to achieve an investment-grade rating.
    (e) Federal Requirements.--The following provisions of law shall 
apply to funds made available under this Act and eligible projects 
carried out using those funds:
            (1) Subchapter IV of chapter 31 of title 40, United States 
        Code.
            (2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
        2000d et seq.).
            (3) The National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.).
            (4) The Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).
    (f) Transparency.--
            (1) In general.--The Secretary shall include in any notice 
        of funding availability a full description of how applications 
        will be evaluated against all selection criteria.
            (2) Consultations on decisions.--After provision of grants 
        and credit assistance under this Act for a fiscal year, the 
        Secretary (or a designee) shall be available to meet with any 
        applicant, at a time and place that is mutually acceptable to 
        the Secretary and the applicant, to review the application of 
        the applicant.

SEC. 4. SECURED LOANS AND LOAN GUARANTEES.

    (a) In General.--
            (1) Agreements.--Subject to paragraphs (2) and (3), the 
        Secretary may enter into arrangements with 1 or more obligors 
        to make secured loans, the proceeds of which shall be used to 
        finance eligible project costs of any eligible project selected 
        to receive funding under this Act.
            (2) Risk assessment.--Before entering into an agreement 
        under this subsection, the Secretary, in consultation with the 
        Director of the Office of Management and Budget and each rating 
        agency providing a preliminary rating opinion letter under 
        section 3(d)(2), shall determine an appropriate capital reserve 
        subsidy amount for each secured loan, taking into account the 
        letter.
            (3) Investment-grade rating requirement.--The execution of 
        a secured loan under this Act shall be contingent on the senior 
        project obligations receiving an investment-grade rating.
    (b) Terms and Limitations.--
            (1) In general.--A secured loan under this Act with respect 
        to an eligible project shall be on such terms and conditions 
        and contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Secretary determines appropriate.
            (2) Maximum amount.--If a secured loan under this Act does 
        not receive an investment grade rating, the amount of the 
        secured loan shall not exceed the lesser of--
                    (A) 80 percent of the reasonably anticipated 
                eligible project costs; and
                    (B) the amount of the senior project obligations.
            (3) Payment.--The secured loan--
                    (A) shall--
                            (i) be payable, in whole or in part, from 
                        tolls, user fees, or other dedicated revenue 
                        sources that also secure the senior project 
                        obligations; and
                            (ii) include a rate covenant, coverage 
                        requirement, or similar security feature 
                        supporting the project obligations; and
                    (B) may have a lien on revenues described in 
                subparagraph (A) subject to any lien securing project 
                obligations.
            (4) Interest rate.--The interest rate on the secured loan 
        shall be not less than the yield on United States Treasury 
        securities of a similar maturity to the maturity of the secured 
        loan on the date of execution of the loan agreement.
            (5) Maturity date.--The final maturity date of the secured 
        loan shall be not later than 35 years after the date of 
        substantial completion of the eligible project.
            (6) Nonsubordination.--The secured loan shall not be 
        subordinated to the claims of any holder of project obligations 
        in the event of bankruptcy, insolvency, or liquidation of the 
        obligor.
            (7) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the 
        Federal Government of making a secured loan under this Act.
            (8) Non-federal share.--The proceeds of a secured loan 
        under this Act may be used to provide any non-Federal share of 
        eligible project costs required under chapter 1 of title 23, or 
        chapter 53 of title 49, United States Code, if the loan is 
        repayable using non-Federal funds.
    (c) Repayment.--
            (1) Schedule.--The Secretary shall establish a repayment 
        schedule for each secured loan under this Act based on the 
        projected cash flow from eligible project revenues and other 
        repayment sources.
            (2) Commencement.--Scheduled loan repayments of principal 
        or interest on a secured loan under this Act shall commence not 
        later than 5 years after the date of substantial completion of 
        the eligible project.
            (3) Deferred payments.--
                    (A) Authorization.--If, at any time after the date 
                of substantial completion of the eligible project, the 
                eligible project is unable to generate sufficient 
                revenues to pay the scheduled loan repayments of 
                principal and interest on the secured loan, the 
                Secretary may, subject to subparagraph (C), allow the 
                obligor to add unpaid principal and interest to the 
                outstanding balance of the secured loan.
                    (B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                            (i) continue to accrue interest in 
                        accordance with subsection (b)(4) until fully 
                        repaid; and
                            (ii) be scheduled to be amortized over the 
                        remaining term of the loan.
                    (C) Criteria.--
                            (i) In general.--Any payment deferral under 
                        subparagraph (A) shall be contingent on the 
                        eligible project meeting criteria established 
                        by the Secretary.
                            (ii) Repayment standards.--The criteria 
                        established under clause (i) shall include 
                        standards for reasonable assurance of 
                        repayment.
            (4) Prepayment.--
                    (A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the project obligations and secured 
                loan and all deposit requirements under the terms of 
                any trust agreement, bond resolution, or similar 
                agreement securing project obligations may be applied 
                annually to prepay the secured loan without penalty.
                    (B) Use of proceeds of refinancing.--The secured 
                loan may be prepaid at any time without penalty from 
                the proceeds of refinancing from non-Federal funding 
                sources.
    (d) Sale of Secured Loans.--
            (1) In general.--Subject to paragraph (2), as soon as 
        practicable after substantial completion of an eligible project 
        and after notifying the obligor, the Secretary may sell to 
        another entity or reoffer into the capital markets a secured 
        loan for the eligible project if the Secretary determines that 
        the sale or reoffering can be made on favorable terms.
            (2) Consent of obligor.--In making a sale or reoffering a 
        secured loan under paragraph (1), the Secretary may not change 
        the original terms and conditions of the secured loan without 
        the written consent of the obligor.
    (e) Loan Guarantees.--
            (1) In general.--The Secretary may provide a loan guarantee 
        to a lender in lieu of making a secured loan if the Secretary 
        determines that the budgetary cost of the loan guarantee is 
        substantially the same as that of a secured loan.
            (2) Terms.--The terms of a guaranteed loan shall be 
        consistent with the terms that apply to a secured loan under 
        this Act, except that the rate on the guaranteed loan and any 
        prepayment features shall be negotiated between the obligor and 
        the lender, with the consent of the Secretary.
    (f) Administration of Federal Credit Instruments.--
            (1) In general.--The Secretary shall establish a uniform 
        system to service the Federal credit instruments made available 
        under this Act.
            (2) Fees.--The Secretary may collect and spend fees, 
        contingent upon authority being provided in appropriations 
        Acts, at a level that is sufficient to cover--
                    (A) the costs of services of expert firms retained 
                pursuant to paragraph (4); and
                    (B) all or a portion of the costs to the Federal 
                Government of servicing the Federal credit instruments 
                under this Act.
            (3) Servicer.--
                    (A) In general.--The Secretary may appoint a 
                financial entity to assist the Secretary in servicing 
                Federal credit instruments under this Act.
                    (B) Duties.--The servicer shall act as the agent 
                for the Secretary.
                    (C) Fee.--The servicer shall receive a servicing 
                fee, subject to approval by the Secretary.
            (4) Assistance from expert firms.--The Secretary may retain 
        the services of expert firms, including counsel, in the field 
        of municipal and project finance, to assist in the underwriting 
        and servicing of Federal credit instruments.

SEC. 5. STATE AND LOCAL PERMITS.

    Financial assistance under this Act with respect to an eligible 
project shall not--
            (1) relieve any recipient of the assistance of any 
        obligation to obtain any required State or local permit or 
        approval with respect to the eligible project;
            (2) limit the right of any unit of State or local 
        government to approve or regulate any rate of return on private 
        equity invested in the eligible project; or
            (3) otherwise supersede any State or local law (including 
        any regulation) applicable to the construction or operation of 
        the eligible project.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act such 
sums as are necessary for each of fiscal years 2012 through 2018.
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