II 

116TH CONGRESS 

1ST SESSION S. 2344 

To establish a broadband infrastructure finance and innovation program to 

make available loans, loan guarantees, and lines of credit for the construction and deployment of broadband infrastructure, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 30, 2019 

Mr. PETERS introduced the following bill; which was read twice and referred 

to the Committee on Commerce, Science, and Transportation 

A BILL 

To establish a broadband infrastructure finance and innovation program to make available loans, loan guarantees, 

and lines of credit for the construction and deployment 

of broadband infrastructure, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Broadband Infrastructure Finance and Innovation Act of 

6 2019’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 


kjohnson on DSK79L0C42 with BILLS
2 

•S 2344 IS

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Determination of eligibility and project selection. 

Sec. 4. Secured loans. 

Sec. 5. Lines of credit. 

Sec. 6. Alternative prudential lending standards for small projects. 

Sec. 7. Program administration. 

Sec. 8. State and local permits. 

Sec. 9. Regulations. 

Sec. 10. Funding. 

Sec. 11. Reports to Congress. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ASSISTANT SECRETARY.—The term ‘‘Assist4 ant Secretary’’ means the Assistant Secretary of 

5 Commerce for Communications and Information. 

6 (2) BIFIA PROGRAM.—The term ‘‘BIFIA pro7 gram’’ means the broadband infrastructure finance 

8 and innovation program established under this Act. 

9 (3) BROADBAND SERVICE.—The term ‘‘broad10 band service’’— 

11 (A) means broadband internet access serv12 ice that is a mass-market retail service, or a 

13 service provided to an entity described in para14 graph (12)(B)(ii), by wire or radio that pro15 vides the capability to transmit data to and re16 ceive data from all or substantially all internet 

17 endpoints, including any capabilities that are 

18 incidental to and enable the operation of the 

19 communications service; 


kjohnson on DSK79L0C42 with BILLS
3 

•S 2344 IS

1 (B) includes any service that is a func2 tional equivalent of the service described in sub3 paragraph (A); and 

4 (C) does not include dial-up internet access 

5 service. 

6 (4) ELIGIBLE PROJECT COSTS.—The term ‘‘eli7 gible project costs’’ means amounts substantially all 

8 of which are paid by, or for the account of, an obli9 gor in connection with a project, including the cost 

10 of— 

11 (A) development phase activities, including 

12 planning, feasibility analysis, revenue fore13 casting, environmental review, historic preserva14 tion review, permitting, preliminary engineering 

15 and design work, and other preconstruction ac16 tivities; 

17 (B) construction and deployment phase ac18 tivities, including— 

19 (i) construction, reconstruction, reha20 bilitation, replacement, and acquisition of 

21 real property (including land relating to 

22 the project and improvements to land), 

23 equipment, instrumentation, networking 

24 capability, hardware and software, and dig25 ital network technology; 


kjohnson on DSK79L0C42 with BILLS
4 

•S 2344 IS

1 (ii) environmental mitigation; and 

2 (iii) construction contingencies; and 

3 (C) capitalized interest necessary to meet 

4 market requirements, reasonably required re5 serve funds, capital issuance expenses, and 

6 other carrying costs during construction and 

7 deployment. 

8 (5) FEDERAL CREDIT INSTRUMENT.—The term 

9 ‘‘Federal credit instrument’’ means a secured loan, 

10 loan guarantee, or line of credit authorized to be 

11 made available under the BIFIA program with re12 spect to a project. 

13 (6) INVESTMENT-GRADE RATING.—The term 

14 ‘‘investment-grade rating’’ means a rating of BBB 

15 minus, Baa3, bbb minus, BBB (low), or higher as16 signed by a rating agency to project obligations. 

17 (7) LENDER.—The term ‘‘lender’’ means any 

18 non-Federal qualified institutional buyer (as defined 

19 in section 230.144A(a) of title 17, Code of Federal 

20 Regulations (or any successor regulation), known as 

21 Rule 144A(a) of the Securities and Exchange Com22 mission and issued under the Securities Act of 1933 

23 (15 U.S.C. 77a et seq.)), including— 

24 (A) a qualified retirement plan (as defined 

25 in section 4974(c) of the Internal Revenue Code 


kjohnson on DSK79L0C42 with BILLS
5 

•S 2344 IS

1 of 1986) that is a qualified institutional buyer; 

2 and 

3 (B) a governmental plan (as defined in 

4 section 414(d) of the Internal Revenue Code of 

5 1986) that is a qualified institutional buyer. 

6 (8) LETTER OF INTEREST.—The term ‘‘letter 

7 of interest’’ means a letter submitted by a potential 

8 applicant prior to an application for credit assistance 

9 under the BIFIA program in a format prescribed by 

10 the Assistant Secretary on the website of the BIFIA 

11 program that— 

12 (A) describes the project and the location, 

13 purpose, and cost of the project; 

14 (B) outlines the proposed financial plan, 

15 including the requested credit assistance and 

16 the proposed obligor; 

17 (C) provides a status of environmental re18 view; and 

19 (D) provides information regarding satis20 faction of other eligibility requirements of the 

21 BIFIA program. 

22 (9) LINE OF CREDIT.—The term ‘‘line of cred23 it’’ means an agreement entered into by the Assist24 ant Secretary with an obligor under section 5 to proVerDate Sep 11 2014 04:43 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2344.IS S2344

kjohnson on DSK79L0C42 with BILLS
6 

•S 2344 IS

1 vide a direct loan at a future date upon the occur2 rence of certain events. 

3 (10) LOAN GUARANTEE.—The term ‘‘loan guar4 antee’’ means any guarantee or other pledge by the 

5 Assistant Secretary to pay all or part of the prin6 cipal of and interest on a loan or other debt obliga7 tion issued by an obligor and funded by a lender. 

8 (11) OBLIGOR.—The term ‘‘obligor’’ means a 

9 party that— 

10 (A) is primarily liable for payment of the 

11 principal of or interest on a Federal credit in12 strument; and 

13 (B) may be a corporation, company, part14 nership, joint venture, trust, or governmental 

15 entity, agency, or instrumentality. 

16 (12) PROJECT.—The term ‘‘project’’ means a 

17 project— 

18 (A) to construct and deploy infrastructure 

19 for the provision of broadband service; and 

20 (B) that the Assistant Secretary deter21 mines will— 

22 (i) provide access or improved access 

23 to broadband service to consumers residing 

24 in areas of the United States that have no 


kjohnson on DSK79L0C42 with BILLS
7 

•S 2344 IS

1 access to broadband service or do not have 

2 access to broadband service offered— 

3 (I) with a download speed of at 

4 least 25 megabits per second; 

5 (II) with an upload speed of at 

6 least 3 megabits per second; and 

7 (III) with latency that is suffi8 ciently low to allow real-time, inter9 active applications; or 

10 (ii) provide access or improved access 

11 to broadband service to— 

12 (I) schools, libraries, medical and 

13 healthcare providers, community col14 leges and other institutions of higher 

15 education, and other community sup16 port organizations and entities to fa17 cilitate greater use of broadband serv18 ice by or through such organizations; 

19 (II) organizations and agencies 

20 that provide outreach, access, equip21 ment, and support services to facili22 tate greater use of broadband service 

23 by low-income, unemployed, aged, and 

24 otherwise vulnerable populations; 


kjohnson on DSK79L0C42 with BILLS
8 

•S 2344 IS

1 (III) job-creating strategic facili2 ties located within— 

3 (aa) a State-designated eco4 nomic zone; 

5 (bb) an economic develop6 ment district designated by the 

7 Secretary of Commerce under 

8 section 401 of the Public Works 

9 and Economic Development Act 

10 of 1965 (42 U.S.C. 3171); 

11 (cc) a renewal community 

12 designated by the Secretary of 

13 Housing and Urban Development 

14 under section 1400E of the In15 ternal Revenue Code of 1986 (as 

16 in effect before the repeal of that 

17 section by section 401(d)(5)(A) 

18 of division U of the Consolidated 

19 Appropriations Act, 2018 (Public 

20 Law 115–141; 132 Stat. 348)); 

21 (dd) an empowerment zone 

22 designated by the Secretary of 

23 Housing and Urban Development 

24 under section 1391 of the Inter25 nal Revenue Code of 1986; or 


kjohnson on DSK79L0C42 with BILLS
9 

•S 2344 IS

1 (ee) an enterprise commu2 nity designated by the Secretary 

3 of Agriculture under section 

4 1391 of the Internal Revenue 

5 Code of 1986; or 

6 (IV) public safety agencies. 

7 (13) PROJECT OBLIGATION.—The term 

8 ‘‘project obligation’’ means any note, bond, deben9 ture, or other debt obligation issued by an obligor in 

10 connection with the financing of a project, other 

11 than a Federal credit instrument. 

12 (14) PUBLIC AUTHORITY.—The term ‘‘public 

13 authority’’ means the Federal Government or a 

14 State, county, town, township, Indian Tribe, munic15 ipal government, or other local government, or an in16 strumentality thereof, with authority to finance, 

17 build, operate, or maintain infrastructure for the 

18 provision of broadband service. 

19 (15) RATING AGENCY.—The term ‘‘rating agen20 cy’’ means a credit rating agency registered with the 

21 Securities and Exchange Commission as a nationally 

22 recognized statistical rating organization (as defined 

23 in section 3(a) of the Securities Exchange Act of 

24 1934 (15 U.S.C. 78c(a))). 


kjohnson on DSK79L0C42 with BILLS
10 

•S 2344 IS

1 (16) SECURED LOAN.—The term ‘‘secured 

2 loan’’ means a direct loan or other debt obligation 

3 issued by an obligor and funded by the Assistant 

4 Secretary in connection with the financing of a 

5 project under section 4. 

6 (17) SMALL PROJECT.—The term ‘‘small 

7 project’’ means a project having eligible project costs 

8 that are reasonably anticipated not to equal or ex9 ceed $20,000,000. 

10 (18) STATE.—The term ‘‘State’’ has the mean11 ing given such term in section 3 of the Communica12 tions Act of 1934 (47 U.S.C. 153). 

13 (19) SUBSIDY AMOUNT.—The term ‘‘subsidy 

14 amount’’ means the amount of budget authority suf15 ficient to cover the estimated long-term cost to the 

16 Federal Government of a Federal credit instru17 ment— 

18 (A) calculated on a net present value basis; 

19 and 

20 (B) excluding administrative costs and any 

21 incidental effects on governmental receipts or 

22 outlays in accordance with the Federal Credit 

23 Reform Act of 1990 (2 U.S.C. 661 et seq.). 

24 (20) SUBSTANTIAL COMPLETION.—The term 

25 ‘‘substantial completion’’ means, with respect to a 


kjohnson on DSK79L0C42 with BILLS
11 

•S 2344 IS

1 project receiving credit assistance under the BIFIA 

2 program— 

3 (A) the commencement of the provision of 

4 broadband service using the infrastructure 

5 being financed; or 

6 (B) a comparable event, as determined by 

7 the Assistant Secretary and specified in the 

8 credit agreement. 

9 SEC. 3. DETERMINATION OF ELIGIBILITY AND PROJECT SE10 LECTION. 

11 (a) ELIGIBILITY.— 

12 (1) IN GENERAL.—A project shall be eligible to 

13 receive credit assistance under the BIFIA program 

14 if— 

15 (A) the entity proposing to carry out the 

16 project submits a letter of interest prior to sub17 mission of a formal application for the project; 

18 and 

19 (B) the project meets the criteria described 

20 in this subsection. 

21 (2) CREDITWORTHINESS.— 

22 (A) IN GENERAL.—Except as provided in 

23 subparagraph (B), to be eligible for assistance 

24 under the BIFIA program, a project shall satVerDate Sep 11 2014 04:43 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2344.IS S2344

kjohnson on DSK79L0C42 with BILLS
12 

•S 2344 IS

1 isfy applicable creditworthiness standards, 

2 which, at a minimum, shall include— 

3 (i) adequate coverage requirements to 

4 ensure repayment; 

5 (ii) an investment-grade rating from 

6 at least 2 rating agencies on debt senior to 

7 the Federal credit instrument; and 

8 (iii) a rating from at least 2 rating 

9 agencies on the Federal credit instrument. 

10 (B) SMALL PROJECTS.—In order for a 

11 small project to be eligible for assistance under 

12 the BIFIA program, such project shall satisfy 

13 alternative creditworthiness standards that shall 

14 be established by the Assistant Secretary under 

15 section 6 for purposes of this paragraph. 

16 (3) APPLICATION.—A State, local government, 

17 agency or instrumentality of a State or local govern18 ment, public authority, public-private partnership, or 

19 other legal entity undertaking a project and author20 ized by the Assistant Secretary shall submit a 

21 project application that is acceptable to the Assist22 ant Secretary. 

23 (4) ELIGIBLE PROJECT COST PARAMETERS FOR

24 INFRASTRUCTURE PROJECTS.—Eligible project costs 

25 shall be reasonably anticipated to equal or exceed 


kjohnson on DSK79L0C42 with BILLS
13 

•S 2344 IS

1 $2,000,000 in the case of a project or program of 

2 projects— 

3 (A) in which the applicant is a local gov4 ernment, an instrumentality of a local govern5 ment, or a public authority (other than a public 

6 authority that is the Federal Government or a 

7 State government, or an instrumentality there8 of); 

9 (B) located on a facility owned by a local 

10 government; or 

11 (C) for which the Assistant Secretary de12 termines that a local government is substan13 tially involved in the development of the project. 

14 (5) DEDICATED REVENUE SOURCES.—The ap15 plicable Federal credit instrument shall be repayable, 

16 in whole or in part, from— 

17 (A) amounts charged to— 

18 (i) subscribers of broadband service 

19 for such service; or 

20 (ii) subscribers of any related service 

21 provided over the same infrastructure for 

22 such related service; 

23 (B) user fees; 

24 (C) payments owing to the obligor under a 

25 public-private partnership; or 


kjohnson on DSK79L0C42 with BILLS
14 

•S 2344 IS

1 (D) other dedicated revenue sources that 

2 also secure or fund the project obligations. 

3 (6) APPLICATIONS WHERE OBLIGOR WILL BE

4 IDENTIFIED LATER.—A State, local government, 

5 agency or instrumentality of a State or local govern6 ment, or public authority may submit to the Assist7 ant Secretary an application under paragraph (3), 

8 under which a private party to a public-private part9 nership will be— 

10 (A) the obligor; and 

11 (B) identified later through completion of 

12 a procurement and selection of the private 

13 party. 

14 (7) BENEFICIAL EFFECTS.—The Assistant Sec15 retary shall determine that financial assistance for a 

16 project under the BIFIA program will— 

17 (A) foster, if appropriate, partnerships 

18 that attract public and private investment for 

19 the project; 

20 (B) enable the project to proceed at an 

21 earlier date than the project would otherwise be 

22 able to proceed or reduce the lifecycle costs (in23 cluding debt service costs) of the project; and 

24 (C) reduce the contribution of Federal 

25 grant assistance for the project. 


kjohnson on DSK79L0C42 with BILLS
15 

•S 2344 IS

1 (8) PROJECT READINESS.—To be eligible for 

2 assistance under the BIFIA program, the applicant 

3 shall demonstrate a reasonable expectation that the 

4 contracting process for the construction and deploy5 ment of infrastructure for the provision of broad6 band service through the project can commence by 

7 no later than 90 days after the date on which a Fed8 eral credit instrument is obligated for the project 

9 under the BIFIA program. 

10 (b) SELECTION AMONG ELIGIBLE PROJECTS.— 

11 (1) ESTABLISHMENT OF APPLICATION PROC12 ESS.—The Assistant Secretary shall establish a roll13 ing application process under which projects that are 

14 eligible to receive credit assistance under subsection 

15 (a) shall receive credit assistance on terms accept16 able to the Assistant Secretary, if adequate funds 

17 are available to cover the subsidy costs associated 

18 with the Federal credit instrument. 

19 (2) PRELIMINARY RATING OPINION LETTER.— 

20 The Assistant Secretary shall require each project 

21 applicant to provide— 

22 (A) a preliminary rating opinion letter 

23 from at least 1 rating agency— 

24 (i) indicating that the senior obliga25 tions of the project, which may be the FedVerDate Sep 11 2014 04:43 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S2344.IS S2344

kjohnson on DSK79L0C42 with BILLS
16 

•S 2344 IS

1 eral credit instrument, have the potential 

2 to achieve an investment-grade rating; and 

3 (ii) including a preliminary rating 

4 opinion on the Federal credit instrument; 

5 or 

6 (B) in the case of a small project, alter7 native documentation that the Assistant Sec8 retary shall require in the standards established 

9 under section 6 for purposes of this paragraph. 

10 (3) TECHNOLOGY NEUTRALITY REQUIRED.—In 

11 selecting projects to receive credit assistance under 

12 the BIFIA program, the Assistant Secretary may 

13 not favor a project using any particular technology. 

14 (c) FEDERAL REQUIREMENTS.— 

15 (1) IN GENERAL.—The following provisions of 

16 law shall apply to funds made available under the 

17 BIFIA program and projects assisted with those 

18 funds: 

19 (A) Title VI of the Civil Rights Act of 

20 1964 (42 U.S.C. 2000d et seq.). 

21 (B) The National Environmental Policy 

22 Act of 1969 (42 U.S.C. 4321 et seq.). 

23 (C) Division A of subtitle III of title 54, 

24 United States Code (formerly known as the 

25 ‘‘National Historic Preservation Act’’). 


kjohnson on DSK79L0C42 with BILLS
17 

•S 2344 IS

1 (D) The Uniform Relocation Assistance 

2 and Real Property Acquisition Policies Act of 

3 1970 (42 U.S.C. 4601 et seq.). 

4 (2) NEPA.—No funding shall be obligated 

5 under the BIFIA program for a project that has not 

6 received an environmental categorical exclusion, a 

7 finding of no significant impact, or a record of deci8 sion under the National Environmental Policy Act of 

9 1969 (42 U.S.C. 4321 et seq.). 

10 (3) TITLE VI OF THE CIVIL RIGHTS ACT OF

11 1964.—For purposes of title VI of the Civil Rights 

12 Act of 1964 (42 U.S.C. 2000d et seq.), any project 

13 that receives credit assistance under the BIFIA pro14 gram shall be considered a program or activity with15 in the meaning of section 606 of such title (42 

16 U.S.C. 2000d–4a). 

17 (d) APPLICATION PROCESSING PROCEDURES.— 

18 (1) NOTICE OF COMPLETE APPLICATION.—Not 

19 later than 30 days after the date of receipt of an ap20 plication under this section, the Assistant Secretary 

21 shall provide to the applicant a written notice to in22 form the applicant whether— 

23 (A) the application is complete; or 

24 (B) additional information or materials are 

25 needed to complete the application. 


kjohnson on DSK79L0C42 with BILLS
18 

•S 2344 IS

1 (2) APPROVAL OR DENIAL OF APPLICATION.— 

2 Not later than 60 days after the date of issuance of 

3 the written notice under paragraph (1), the Assist4 ant Secretary shall provide to the applicant a writ5 ten notice informing the applicant whether the As6 sistant Secretary has approved or disapproved the 

7 application. 

8 (3) APPROVAL BEFORE NEPA REVIEW.—Subject 

9 to subsection (c)(2), an application for a project may 

10 be approved before the project receives an environ11 mental categorical exclusion, a finding of no signifi12 cant impact, or a record of decision under the Na13 tional Environmental Policy Act of 1969 (42 U.S.C. 

14 4321 et seq.). 

15 (e) DEVELOPMENT PHASE ACTIVITIES.—Any credit 

16 instrument secured under the BIFIA program may be 

17 used to finance up to 100 percent of the cost of develop18 ment phase activities as described in section 2(4)(A). 

19 SEC. 4. SECURED LOANS. 

20 (a) IN GENERAL.— 

21 (1) AGREEMENTS.—Subject to paragraphs (2) 

22 and (3), the Assistant Secretary may enter into 

23 agreements with one or more obligors to make se24 cured loans, the proceeds of which shall be used— 


kjohnson on DSK79L0C42 with BILLS
19 

•S 2344 IS

1 (A) to finance eligible project costs of any 

2 project selected under section 3; 

3 (B) to refinance interim construction fi4 nancing of eligible project costs of any project 

5 selected under section 3; or 

6 (C) to refinance long-term project obliga7 tions or Federal credit instruments, if the refi8 nancing provides additional funding capacity for 

9 the completion, enhancement, or expansion of 

10 any project that— 

11 (i) is selected under section 3; or 

12 (ii) otherwise meets the requirements 

13 of section 3. 

14 (2) LIMITATION ON REFINANCING OF INTERIM

15 CONSTRUCTION FINANCING.—A loan under para16 graph (1) shall not refinance interim construction fi17 nancing under paragraph (1)(B)— 

18 (A) if the maturity of such interim con19 struction financing is later than 1 year after 

20 the substantial completion of the project; and 

21 (B) later than 1 year after the date of sub22 stantial completion of the project. 

23 (3) RISK ASSESSMENT.—Before entering into 

24 an agreement under this subsection, the Assistant 

25 Secretary, in consultation with the Director of the 


kjohnson on DSK79L0C42 with BILLS
20 

•S 2344 IS

1 Office of Management and Budget, shall determine 

2 an appropriate capital reserve subsidy amount for 

3 each secured loan, taking into account each rating 

4 letter provided by a rating agency under section 

5 3(b)(2)(A)(ii) or, in the case of a small project, the 

6 alternative documentation provided under section 

7 3(b)(2)(B). 

8 (b) TERMS AND LIMITATIONS.— 

9 (1) IN GENERAL.—A secured loan under this 

10 section with respect to a project shall be on such 

11 terms and conditions and contain such covenants, 

12 representations, warranties, and requirements (in13 cluding requirements for audits) as the Assistant 

14 Secretary determines to be appropriate. 

15 (2) MAXIMUM AMOUNT.—The amount of a se16 cured loan under this section shall not exceed the 

17 lesser of 49 percent of the reasonably anticipated eli18 gible project costs or, if the secured loan is not for 

19 a small project and does not receive an investment20 grade rating, the amount of the senior project obli21 gations. 

22 (3) PAYMENT.—A secured loan under this sec23 tion— 

24 (A) shall— 


kjohnson on DSK79L0C42 with BILLS
21 

•S 2344 IS

1 (i) be payable, in whole or in part, 

2 from— 

3 (I) amounts charged to— 

4 (aa) subscribers of broad5 band service for such service; or 

6 (bb) subscribers of any re7 lated service provided over the 

8 same infrastructure for such re9 lated service; 

10 (II) user fees; 

11 (III) payments owing to the obli12 gor under a public-private partner13 ship; or 

14 (IV) other dedicated revenue 

15 sources that also secure the senior 

16 project obligations; and 

17 (ii) include a coverage requirement or 

18 similar security feature supporting the 

19 project obligations; and 

20 (B) may have a lien on revenues described 

21 in subparagraph (A), subject to any lien secur22 ing project obligations. 

23 (4) INTEREST RATE.—The interest rate on a 

24 secured loan under this section shall be not less than 

25 the yield on United States Treasury securities of a 


kjohnson on DSK79L0C42 with BILLS
22 

•S 2344 IS

1 similar maturity to the maturity of the secured loan 

2 on the date of execution of the loan agreement. 

3 (5) MATURITY DATE.—The final maturity date 

4 of a secured loan under this section shall be the ear5 lier of— 

6 (A) the date that is 35 years after the date 

7 of substantial completion of the project; or 

8 (B) the last day of the useful life of the in9 frastructure for the provision of broadband 

10 service being financed. 

11 (6) NONSUBORDINATION.— 

12 (A) IN GENERAL.—Except as provided in 

13 subparagraph (B), a secured loan under this 

14 section shall not be subordinated to the claims 

15 of any holder of project obligations in the event 

16 of bankruptcy, insolvency, or liquidation of the 

17 obligor. 

18 (B) PREEXISTING INDENTURE.— 

19 (i) IN GENERAL.—The Assistant Sec20 retary shall waive the requirement under 

21 subparagraph (A) for a public agency bor22 rower that is financing ongoing capital 

23 programs and has outstanding senior 

24 bonds under a preexisting indenture, if— 

25 (I) the secured loan— 


kjohnson on DSK79L0C42 with BILLS
23 

•S 2344 IS

1 (aa) is rated in the A cat2 egory or higher; or 

3 (bb) in the case of a small 

4 project, meets an alternative 

5 standard that the Assistant Sec6 retary shall establish under sec7 tion 6 for purposes of this sub8 clause; 

9 (II) the secured loan is secured 

10 and payable from pledged revenues 

11 not affected by project performance, 

12 such as a tax-backed revenue pledge 

13 or a system-backed pledge of project 

14 revenues; and 

15 (III) the BIFIA program share 

16 of eligible project costs is 33 percent 

17 or less. 

18 (ii) LIMITATION.—If the Assistant 

19 Secretary waives the nonsubordination re20 quirement under this subparagraph— 

21 (I) the maximum credit subsidy 

22 to be paid by the Federal Government 

23 shall be not more than 10 percent of 

24 the principal amount of the secured 

25 loan; and 


kjohnson on DSK79L0C42 with BILLS
24 

•S 2344 IS

1 (II) the obligor shall be respon2 sible for paying the remainder of the 

3 subsidy cost, if any. 

4 (7) FEES.—The Assistant Secretary may estab5 lish fees at a level sufficient to cover all or a portion 

6 of the costs to the Federal Government of making 

7 a secured loan under this section. 

8 (8) NON-FEDERAL SHARE.—The proceeds of a 

9 secured loan under the BIFIA program, if the loan 

10 is repayable from non-Federal funds— 

11 (A) may be used for any non-Federal share 

12 of project costs required under this Act; and 

13 (B) shall not count toward the total Fed14 eral assistance provided for a project for pur15 poses of paragraph (9). 

16 (9) MAXIMUM FEDERAL INVOLVEMENT.—The 

17 total Federal assistance provided for a project re18 ceiving a loan under the BIFIA program shall not 

19 exceed 80 percent of the total project cost. 

20 (c) REPAYMENT.— 

21 (1) SCHEDULE.—The Assistant Secretary shall 

22 establish a repayment schedule for each secured loan 

23 under this section based on— 

24 (A) the projected cash flow from project 

25 revenues and other repayment sources; and 


kjohnson on DSK79L0C42 with BILLS
25 

•S 2344 IS

1 (B) the useful life of the infrastructure for 

2 the provision of broadband service being fi3 nanced. 

4 (2) COMMENCEMENT.—Scheduled loan repay5 ments of principal or interest on a secured loan 

6 under this section shall commence not later than 5 

7 years after the date of substantial completion of the 

8 project. 

9 (3) DEFERRED PAYMENTS.— 

10 (A) IN GENERAL.—If, at any time after 

11 the date of substantial completion of the 

12 project, the project is unable to generate suffi13 cient revenues to pay the scheduled loan repay14 ments of principal and interest on the secured 

15 loan, the Assistant Secretary may, subject to 

16 subparagraph (C), allow the obligor to add un17 paid principal and interest to the outstanding 

18 balance of the secured loan. 

19 (B) INTEREST.—Any payment deferred 

20 under subparagraph (A) shall— 

21 (i) continue to accrue interest in ac22 cordance with subsection (b)(4) until fully 

23 repaid; and 

24 (ii) be scheduled to be amortized over 

25 the remaining term of the loan. 


kjohnson on DSK79L0C42 with BILLS
26 

•S 2344 IS

1 (C) CRITERIA.— 

2 (i) IN GENERAL.—Any payment defer3 ral under subparagraph (A) shall be con4 tingent on the project meeting criteria es5 tablished by the Assistant Secretary. 

6 (ii) REPAYMENT STANDARDS.—The 

7 criteria established pursuant to clause (i) 

8 shall include standards for reasonable as9 surance of repayment. 

10 (4) PREPAYMENT.— 

11 (A) USE OF EXCESS REVENUES.—Any ex12 cess revenues that remain after satisfying 

13 scheduled debt service requirements on the 

14 project obligations and secured loan and all de15 posit requirements under the terms of any trust 

16 agreement, bond resolution, or similar agree17 ment securing project obligations may be ap18 plied annually to prepay the secured loan with19 out penalty. 

20 (B) USE OF PROCEEDS OF REFI21 NANCING.—The secured loan may be prepaid at 

22 any time without penalty from the proceeds of 

23 refinancing from non-Federal funding sources. 

24 (d) SALE OF SECURED LOANS.— 


kjohnson on DSK79L0C42 with BILLS
27 

•S 2344 IS

1 (1) IN GENERAL.—Subject to paragraph (2), as 

2 soon as practicable after substantial completion of a 

3 project and after notifying the obligor, the Assistant 

4 Secretary may sell to another entity or reoffer into 

5 the capital markets a secured loan for the project if 

6 the Assistant Secretary determines that the sale or 

7 reoffering can be made on favorable terms. 

8 (2) CONSENT OF OBLIGOR.—In making a sale 

9 or reoffering under paragraph (1), the Assistant 

10 Secretary may not change the original terms and 

11 conditions of the secured loan without the written 

12 consent of the obligor. 

13 (e) LOAN GUARANTEES.— 

14 (1) IN GENERAL.—The Assistant Secretary 

15 may provide a loan guarantee to a lender in lieu of 

16 making a secured loan under this section if the As17 sistant Secretary determines that the budgetary cost 

18 of the loan guarantee is substantially the same as 

19 that of a secured loan. 

20 (2) TERMS.—The terms of a loan guarantee 

21 under paragraph (1) shall be consistent with the 

22 terms required under this section for a secured loan, 

23 except that the rate on the guaranteed loan and any 

24 prepayment features shall be negotiated between the 


kjohnson on DSK79L0C42 with BILLS
28 

•S 2344 IS

1 obligor and the lender, with the consent of the As2 sistant Secretary. 

3 (f) STREAMLINED APPLICATION PROCESS.— 

4 (1) IN GENERAL.—The Assistant Secretary 

5 shall develop one or more expedited application proc6 esses, available at the request of entities seeking se7 cured loans under the BIFIA program, that use a 

8 set or sets of conventional terms established pursu9 ant to this section. 

10 (2) TERMS.—In establishing the streamlined 

11 application process required by this subsection, the 

12 Assistant Secretary may allow for an expedited ap13 plication period and include terms such as those that 

14 require— 

15 (A) that the project be a small project; 

16 (B) the secured loan to be secured and 

17 payable from pledged revenues not affected by 

18 project performance, such as a tax-backed rev19 enue pledge, tax increment financing, or a sys20 tem-backed pledge of project revenues; and 

21 (C) repayment of the loan to commence 

22 not later than 5 years after disbursement. 

23 SEC. 5. LINES OF CREDIT. 

24 (a) IN GENERAL.— 


kjohnson on DSK79L0C42 with BILLS
29 

•S 2344 IS

1 (1) AGREEMENTS.—Subject to paragraphs (2) 

2 through (4), the Assistant Secretary may enter into 

3 agreements to make available to one or more obli4 gors lines of credit in the form of direct loans to be 

5 made by the Assistant Secretary at future dates on 

6 the occurrence of certain events for any project se7 lected under section 3. 

8 (2) USE OF PROCEEDS.—The proceeds of a line 

9 of credit made available under this section shall be 

10 available to pay debt service on project obligations 

11 issued to finance eligible project costs, extraordinary 

12 repair and replacement costs, operation and mainte13 nance expenses, and costs associated with unex14 pected Federal or State environmental restrictions. 

15 (3) RISK ASSESSMENT.— 

16 (A) IN GENERAL.—Except as provided in 

17 subparagraph (B), before entering into an 

18 agreement under this subsection, the Assistant 

19 Secretary, in consultation with the Director of 

20 the Office of Management and Budget and each 

21 rating agency providing a preliminary rating 

22 opinion letter under section 3(b)(2)(A), shall 

23 determine an appropriate capital reserve sub24 sidy amount for each line of credit, taking into 

25 account the rating opinion letter. 


kjohnson on DSK79L0C42 with BILLS
30 

•S 2344 IS

1 (B) SMALL PROJECTS.—Before entering 

2 into an agreement under this subsection to 

3 make available a line of credit for a small 

4 project, the Assistant Secretary, in consultation 

5 with the Director of the Office of Management 

6 and Budget, shall determine an appropriate 

7 capital reserve subsidy amount for each such 

8 line of credit, taking into account the alter9 native documentation provided under section 

10 3(b)(2)(B) instead of preliminary rating opinion 

11 letters provided under section 3(b)(2)(A). 

12 (4) INVESTMENT-GRADE RATING REQUIRE13 MENT.—The funding of a line of credit under this 

14 section shall be contingent on— 

15 (A) the senior obligations of the project re16 ceiving an investment-grade rating from 2 rat17 ing agencies; or 

18 (B) in the case of a small project, the 

19 project meeting an alternative standard that the 

20 Assistant Secretary shall establish under section 

21 6 for purposes of this paragraph. 

22 (b) TERMS AND LIMITATIONS.— 

23 (1) IN GENERAL.—A line of credit under this 

24 section with respect to a project shall be on such 

25 terms and conditions and contain such covenants, 


kjohnson on DSK79L0C42 with BILLS
31 

•S 2344 IS

1 representations, warranties, and requirements (in2 cluding requirements for audits) as the Assistant 

3 Secretary determines to be appropriate. 

4 (2) MAXIMUM AMOUNTS.—The total amount of 

5 a line of credit under this section shall not exceed 

6 33 percent of the reasonably anticipated eligible 

7 project costs. 

8 (3) DRAWS.—Any draw on a line of credit 

9 under this section shall— 

10 (A) represent a direct loan; and 

11 (B) be made only if net revenues from the 

12 project (including capitalized interest, but not 

13 including reasonably required financing re14 serves) are insufficient to pay the costs speci15 fied in subsection (a)(2). 

16 (4) INTEREST RATE.—The interest rate on a 

17 direct loan resulting from a draw on the line of cred18 it shall be not less than the yield on 30-year United 

19 States Treasury securities, as of the date of execu20 tion of the line of credit agreement. 

21 (5) SECURITY.—A line of credit issued under 

22 this section— 

23 (A) shall— 

24 (i) be payable, in whole or in part, 

25 from— 


kjohnson on DSK79L0C42 with BILLS
32 

•S 2344 IS

1 (I) amounts charged to— 

2 (aa) subscribers of broad3 band service for such service; or 

4 (bb) subscribers of any re5 lated service provided over the 

6 same infrastructure for such re7 lated service; 

8 (II) user fees; 

9 (III) payments owing to the obli10 gor under a public-private partner11 ship; or 

12 (IV) other dedicated revenue 

13 sources that also secure the senior 

14 project obligations; and 

15 (ii) include a coverage requirement or 

16 similar security feature supporting the 

17 project obligations; and 

18 (B) may have a lien on revenues described 

19 in subparagraph (A), subject to any lien secur20 ing project obligations. 

21 (6) PERIOD OF AVAILABILITY.—The full 

22 amount of a line of credit under this section, to the 

23 extent not drawn upon, shall be available during the 

24 10-year period beginning on the date of substantial 

25 completion of the project. 


kjohnson on DSK79L0C42 with BILLS
33 

•S 2344 IS

1 (7) RIGHTS OF THIRD-PARTY CREDITORS.— 

2 (A) AGAINST FEDERAL GOVERNMENT.—A 

3 third-party creditor of the obligor shall not have 

4 any right against the Federal Government with 

5 respect to any draw on a line of credit under 

6 this section. 

7 (B) ASSIGNMENT.—An obligor may assign 

8 a line of credit under this section to— 

9 (i) one or more lenders; or 

10 (ii) a trustee on the behalf of such a 

11 lender. 

12 (8) NONSUBORDINATION.— 

13 (A) IN GENERAL.—Except as provided in 

14 subparagraph (B), a direct loan under this sec15 tion shall not be subordinated to the claims of 

16 any holder of project obligations in the event of 

17 bankruptcy, insolvency, or liquidation of the ob18 ligor. 

19 (B) PRE-EXISTING INDENTURE.— 

20 (i) IN GENERAL.—The Assistant Sec21 retary shall waive the requirement of sub22 paragraph (A) for a public agency bor23 rower that is financing ongoing capital 

24 programs and has outstanding senior 

25 bonds under a preexisting indenture, if— 


kjohnson on DSK79L0C42 with BILLS
34 

•S 2344 IS

1 (I) the line of credit— 

2 (aa) is rated in the A cat3 egory or higher; or 

4 (bb) in the case of a small 

5 project, meets an alternative 

6 standard that the Assistant Sec7 retary shall establish under sec8 tion 6 for purposes of this sub9 clause; 

10 (II) the BIFIA program loan re11 sulting from a draw on the line of 

12 credit is payable from pledged reve13 nues not affected by project perform14 ance, such as a tax-backed revenue 

15 pledge or a system-backed pledge of 

16 project revenues; and 

17 (III) the BIFIA program share 

18 of eligible project costs is 33 percent 

19 or less. 

20 (ii) LIMITATION.—If the Assistant 

21 Secretary waives the nonsubordination re22 quirement under this subparagraph— 

23 (I) the maximum credit subsidy 

24 to be paid by the Federal Government 

25 shall be not more than 10 percent of 


kjohnson on DSK79L0C42 with BILLS
35 

•S 2344 IS

1 the principal amount of the secured 

2 loan; and 

3 (II) the obligor shall be respon4 sible for paying the remainder of the 

5 subsidy cost. 

6 (9) FEES.—The Assistant Secretary may estab7 lish fees at a level sufficient to cover all or a portion 

8 of the costs to the Federal Government of providing 

9 a line of credit under this section. 

10 (10) RELATIONSHIP TO OTHER CREDIT INSTRU11 MENTS.—A project that receives a line of credit 

12 under this section may not also receive a secured 

13 loan or loan guarantee under section 4 in an amount 

14 that, combined with the amount of the line of credit, 

15 exceeds 49 percent of eligible project costs. 

16 (c) REPAYMENT.— 

17 (1) TERMS AND CONDITIONS.—The Assistant 

18 Secretary shall establish repayment terms and condi19 tions for each direct loan under this section based 

20 on— 

21 (A) the projected cash flow from project 

22 revenues and other repayment sources; and 

23 (B) the useful life of the infrastructure for 

24 the provision of broadband service being fi25 nanced. 


kjohnson on DSK79L0C42 with BILLS
36 

•S 2344 IS

1 (2) TIMING.—All repayments of principal or in2 terest on a direct loan under this section shall be 

3 scheduled— 

4 (A) to commence not later than 5 years 

5 after the end of the period of availability speci6 fied in subsection (b)(6); and 

7 (B) to conclude, with full repayment of 

8 principal and interest, by the date that is 25 

9 years after the end of the period of availability 

10 specified in subsection (b)(6). 

11 SEC. 6. ALTERNATIVE PRUDENTIAL LENDING STANDARDS 

12 FOR SMALL PROJECTS. 

13 Not later than 180 days after the date of the enact14 ment of this Act, the Assistant Secretary shall establish 

15 alternative, streamlined prudential lending standards for 

16 small projects receiving credit assistance under the BIFIA 

17 program to ensure that such projects pose no additional 

18 risk to the Federal Government, as compared with 

19 projects that are not small projects. 

20 SEC. 7. PROGRAM ADMINISTRATION. 

21 (a) REQUIREMENT.—The Assistant Secretary shall 

22 establish a uniform system to service the Federal credit 

23 instruments made available under the BIFIA program. 


kjohnson on DSK79L0C42 with BILLS
37 

•S 2344 IS

1 (b) FEES.—The Assistant Secretary may collect and 

2 spend fees, contingent on authority being provided in ap3 propriations Acts, at a level that is sufficient to cover— 

4 (1) the costs of services of expert firms retained 

5 pursuant to subsection (d); and 

6 (2) all or a portion of the costs to the Federal 

7 Government of servicing the Federal credit instru8 ments. 

9 (c) SERVICER.— 

10 (1) IN GENERAL.—The Assistant Secretary 

11 may appoint a financial entity to assist the Assistant 

12 Secretary in servicing the Federal credit instru13 ments. 

14 (2) DUTIES.—A servicer appointed under para15 graph (1) shall act as the agent for the Assistant 

16 Secretary. 

17 (3) FEE.—A servicer appointed under para18 graph (1) shall receive a servicing fee, subject to ap19 proval by the Assistant Secretary. 

20 (d) ASSISTANCE FROM EXPERT FIRMS.—The Assist21 ant Secretary may retain the services of expert firms, in22 cluding counsel, in the field of municipal and project fi23 nance to assist in the underwriting and servicing of Fed24 eral credit instruments. 


kjohnson on DSK79L0C42 with BILLS
38 

•S 2344 IS

1 (e) EXPEDITED PROCESSING.—The Assistant Sec2 retary shall implement procedures and measures to econo3 mize the time and cost involved in obtaining approval and 

4 the issuance of credit assistance under the BIFIA pro5 gram. 

6 (f) ASSISTANCE TO SMALL PROJECTS.—Of the 

7 amount appropriated under section 10(a), and after the 

8 set-aside for administrative expenses under section 10(b), 

9 not less than 20 percent shall be made available for the 

10 Assistant Secretary to use in lieu of fees collected under 

11 subsection (b) for small projects. 

12 SEC. 8. STATE AND LOCAL PERMITS. 

13 The provision of credit assistance under the BIFIA 

14 program with respect to a project shall not— 

15 (1) relieve any recipient of the assistance of any 

16 obligation to obtain any required State or local per17 mit or approval with respect to the project; 

18 (2) limit the right of any unit of State or local 

19 government to approve or regulate any rate of re20 turn on private equity invested in the project; or 

21 (3) otherwise supersede any State or local law 

22 (including any regulation) applicable to the construc23 tion or operation of the project. 


kjohnson on DSK79L0C42 with BILLS
39 

•S 2344 IS

1 SEC. 9. REGULATIONS. 

2 The Assistant Secretary may promulgate such regula3 tions as the Assistant Secretary determines to be appro4 priate to carry out the BIFIA program. 

5 SEC. 10. FUNDING. 

6 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to the Assistant Sec8 retary to carry out this Act $5,000,000,000 for fiscal year 

9 2020, to remain available until expended. 

10 (b) ADMINISTRATIVE EXPENSES.—Of the amount 

11 appropriated under subsection (a), the Assistant Secretary 

12 may use not more than 5 percent for the administration 

13 of the BIFIA program. 

14 SEC. 11. REPORTS TO CONGRESS. 

15 (a) IN GENERAL.—Not later than 1 year after the 

16 date of the enactment of this Act, and every 2 years there17 after, the Assistant Secretary shall submit to Congress a 

18 report summarizing the financial performance of the 

19 projects that are receiving, or have received, assistance 

20 under the BIFIA program, including a recommendation 

21 as to whether the objectives of the BIFIA program are 

22 best served by— 

23 (1) continuing the program under the authority 

24 of the Assistant Secretary; or 

25 (2) establishing a Federal corporation or feder26 ally sponsored enterprise to administer the program. 


kjohnson on DSK79L0C42 with BILLS
40 

•S 2344 IS

1 (b) APPLICATION PROCESS REPORT.— 

2 (1) IN GENERAL.—Not later than 1 year after 

3 the date of the enactment of this Act, and annually 

4 thereafter, the Assistant Secretary shall submit to 

5 the Committee on Energy and Commerce of the 

6 House of Representatives and the Committee on 

7 Commerce, Science, and Transportation of the Sen8 ate a report that includes a list of all of the letters 

9 of interest and applications received for assistance 

10 under the BIFIA program during the preceding fis11 cal year. 

12 (2) INCLUSIONS.— 

13 (A) IN GENERAL.—Each report under 

14 paragraph (1) shall include, at a minimum, a 

15 description of, with respect to each letter of in16 terest and application included in the report— 

17 (i) the date on which the letter of in18 terest or application was received; 

19 (ii) the date on which a notification 

20 was provided to the applicant regarding 

21 whether the application was complete or 

22 incomplete; 

23 (iii) the date on which a revised and 

24 completed application was submitted (if 

25 applicable); 


kjohnson on DSK79L0C42 with BILLS
41 

•S 2344 IS

1 (iv) the date on which a notification 

2 was provided to the applicant regarding 

3 whether the project was approved or dis4 approved; and 

5 (v) if the project was not approved, 

6 the reason for the disapproval. 

7 (B) CORRESPONDENCE.—Each report 

8 under paragraph (1) shall include copies of any 

9 correspondence provided to the applicant in ac10 cordance with section 3(d). 

Æ 


kjohnson on DSK79L0C42 with BILLS