H. R. 2400—142
on the project’s senior obligations receiving an investment-
grade rating from at least 1 rating agency.
‘‘(b) TERMS AND LIMITATIONS.—
‘‘(1) IN GENERAL.—A line of credit under this section with
respect to a project shall be on such terms and conditions
and contain such covenants, representations, warranties, and
requirements (including requirements for audits) as the Sec-
retary determines appropriate.
‘‘(2) MAXIMUM AMOUNTS.—
‘‘(A) TOTAL
AMOUNT.—The total amount of the line
of credit shall not exceed 33 percent of the reasonably
anticipated eligible project costs.
‘‘(B) 1-YEAR DRAWS.—The amount drawn in any 1 year
shall not exceed 20 percent of the total amount of the
line of credit.
‘‘(3) DRAWS.—Any draw on the line of credit shall represent
a direct loan and shall be made only if net revenues from
the project (including capitalized interest, any debt service
reserve fund, and any other available reserve) are insufficient
to pay the costs specified in subsection (a)(2).
‘‘(4) INTEREST RATE.—The interest rate on a direct loan
resulting from a draw on the line of credit shall be not less
than the yield on 30-year marketable United States Treasury
securities as of the date on which the line of credit is obligated.
‘‘(5) SECURITY.—The line of credit—
‘‘(A) shall—
‘‘(i) be payable, in whole or in part, from tolls,
user fees, or other dedicated revenue sources; 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 subpara-
graph (A) subject to any lien securing project obligations.
‘‘(6) PERIOD OF AVAILABILITY.—The line of credit shall be
available during the period beginning on the date of substantial
completion of the project and ending not later than 10 years
after that date.
‘‘(7) RIGHTS OF THIRD-PARTY CREDITORS.—
‘‘(A) AGAINST
FEDERAL
GOVERNMENT.—A third-party
creditor of the obligor shall not have any right against
the Federal Government with respect to any draw on the
line of credit.
‘‘(B) ASSIGNMENT.—An obligor may assign the line of
credit to 1 or more lenders or to a trustee on the lenders’
behalf.
‘‘(8) NONSUBORDINATION.—A direct loan under this section
shall not be subordinated to the claims of any holder of project
obligations in the event of bankruptcy, insolvency, or liquidation
of the obligor.
‘‘(9) FEES.—The Secretary may establish fees at a level
sufficient to cover all or a portion of the costs to the Federal
Government of providing a line of credit under this section.
‘‘(10) RELATIONSHIP
TO
OTHER
CREDIT
INSTRUMENTS.—A
project that receives a line of credit under this section also
shall not receive a secured loan or loan guarantee under section
183 of an amount that, combined with the amount of the
line of credit, exceeds 33 percent of eligible project costs.
H. R. 2400—143
‘‘(c) REPAYMENT.—
‘‘(1) TERMS AND CONDITIONS.—The Secretary shall establish
repayment terms and conditions for each direct loan under
this section based on the projected cash flow from project reve-
nues and other repayment sources.
‘‘(2) TIMING.—All scheduled repayments of principal or
interest on a direct loan under this section shall commence
not later than 5 years after the end of the period of availability
specified in subsection (b)(6) and be fully repaid, with interest,
by the date that is 25 years after the end of the period of
availability specified in subsection (b)(6).
‘‘(3) SOURCES OF REPAYMENT FUNDS.—The sources of funds
for scheduled loan repayments under this section shall include
tolls, user fees, or other dedicated revenue sources.
‘‘§ 185. Project servicing
‘‘(a) REQUIREMENT.—The State in which a project that receives
financial assistance under this subchapter is located may identify
a local servicer to assist the Secretary in servicing the Federal
credit instrument made available under this subchapter.
‘‘(b) AGENCY; FEES.—If a State identifies a local servicer under
subsection (a), the local servicer—
‘‘(1) shall act as the agent for the Secretary; and
‘‘(2) may receive a servicing fee, subject to approval by
the Secretary.
‘‘(c) LIABILITY.—A local servicer identified under subsection (a)
shall not be liable for the obligations of the obligor to the Secretary
or any lender.
‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Secretary may
retain the services of expert firms in the field of municipal and
project finance to assist in the underwriting and servicing of Federal
credit instruments.
‘‘§ 186. State and local permits
‘‘The provision of financial assistance under this subchapter
with respect to a 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 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 project; or
‘‘(3) otherwise supersede any State or local law (including
any regulation) applicable to the construction or operation of
the project.
‘‘§ 187. Regulations
‘‘The Secretary may issue such regulations as the Secretary
determines appropriate to carry out this subchapter.
‘‘§ 188. Funding
‘‘(a) FUNDING.—
‘‘(1) IN GENERAL.—There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this subchapter—
‘‘(A) $80,000,000 for fiscal year 1999;
‘‘(B) $90,000,000 for fiscal year 2000;
H. R. 2400—144
‘‘(C) $110,000,000 for fiscal year 2001;
‘‘(D) $120,000,000 for fiscal year 2002; and
‘‘(E) $130,000,000 for fiscal year 2003.
‘‘(2) ADMINISTRATIVE COSTS.—From funds made available
under paragraph (1), the Secretary may use, for the administra-
tion of this subchapter, not more than $2,000,000 for each
of fiscal years 1998 through 2003.
‘‘(3) AVAILABILITY.—Amounts made available under para-
graph (1) shall remain available until expended.
‘‘(b) CONTRACT AUTHORITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, approval by the Secretary of a Federal credit instrument
that uses funds made available under this subchapter shall
be deemed to be acceptance by the United States of a contrac-
tual obligation to fund the Federal credit instrument.
‘‘(2) AVAILABILITY.—Amounts authorized under this section
for a fiscal year shall be available for obligation on October
1 of the fiscal year.
‘‘(c) LIMITATIONS ON CREDIT AMOUNTS.—For each of fiscal years
1998 through 2003, principal amounts of Federal credit instruments
made available under this subchapter shall be limited to the
amounts specified in the following table:
Maximum amount
‘‘Fiscal year:
of credit:
1998 ..................................................................................................... $1,200,000,000
1999 ..................................................................................................... $1,200,000,000
2000 ..................................................................................................... $1,800,000,000
2001 ..................................................................................................... $1,800,000,000
2002 ..................................................................................................... $2,300,000,000
2003 ..................................................................................................... $2,300,000,000.
‘‘§ 189. Report to Congress
‘‘Not later than 4 years after the date of enactment of this
subchapter, the Secretary shall submit to Congress a report
summarizing the financial performance of the projects that are
receiving, or have received, assistance under this subchapter,
including a recommendation as to whether the objectives of this
subchapter are best served—
‘‘(1) by continuing the program under the authority of
the Secretary;
‘‘(2) by establishing a Government corporation or Govern-
ment-sponsored enterprise to administer the program; or
‘‘(3) by phasing out the program and relying on the capital
markets to fund the types of infrastructure investments assisted
by this subchapter without Federal participation.’’.
(b) CONFORMING AMENDMENTS.—Chapter 1 of title 23, United
States Code, is amended—
(1) in the analysis—
(A) by inserting before ‘‘Sec.’’ the following:
‘‘SUBCHAPTER I—GENERAL PROVISIONS’’;
and
(B) by adding at the end the following:
‘‘SUBCHAPTER II—INFRASTRUCTURE FINANCE
‘‘181. Definitions.
‘‘182. Determination of eligibility and project selection.
‘‘183. Secured loans.
‘‘184. Lines of credit.
‘‘185. Project servicing.
H. R. 2400—145
‘‘186. State and local permits.
‘‘187. Regulations.
‘‘188. Funding.
‘‘189. Report to Congress.’’;
and
(2) by inserting before section 101 the following:
‘‘SUBCHAPTER I—GENERAL PROVISIONS’’.
SEC. 1504. DUTIES OF THE SECRETARY.
Section 301 of title 49, United States Code, is amended—
(1) in paragraph (7) by striking ‘‘and’’ at the end;
(2) in paragraph (8) by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(9) develop and coordinate Federal policy on financing
transportation infrastructure, including the provision of direct
Federal credit assistance and other techniques used to leverage
Federal transportation funds.’’.
CHAPTER 2—STATE INFRASTRUCTURE BANK PILOT
PROGRAM
SEC. 1511. STATE INFRASTRUCTURE BANK PILOT PROGRAM.
(a) DEFINITIONS.—In this section:
(1) OTHER
ASSISTANCE.—The term ‘‘other assistance’’
includes any use of funds in an infrastructure bank—
(A) to provide credit enhancements;
(B) to serve as a capital reserve for bond or debt
instrument financing;
(C) to subsidize interest rates;
(D) to ensure the issuance of letters of credit and
credit instruments;
(E) to finance purchase and lease agreements with
respect to transit projects;
(F) to provide bond or debt financing instrument secu-
rity; and
(G) to provide other forms of debt financing and meth-
ods of leveraging funds that are approved by the Secretary
and that relate to the project with respect to which the
assistance is being provided.
(2) STATE.—The term ‘‘State’’ has the meaning given the
term under section 401 of title 23, United States Code.
(b) COOPERATIVE AGREEMENTS.—
(1) IN GENERAL.—
(A) PURPOSE OF AGREEMENTS.—Subject to this section,
the Secretary may enter into cooperative agreements with
the States of California, Florida, Missouri, and Rhode
Island for the establishment of State infrastructure banks
and multistate infrastructure banks for making loans and
providing other assistance to public and private entities
carrying out or proposing to carry out projects eligible
for assistance under this section.
(B) CONTENTS
OF
AGREEMENTS.—Each cooperative
agreement shall specify procedures and guidelines for
establishing, operating, and providing assistance from the
infrastructure bank.