224
to incorporate warranties in the letting of contracts for
highway construction projects.
(b) MAXIMUM NUMBER OF PROJECTS.—The Sec-
retary may allow not more than 15 projects a year to be
carried out under the pilot program.
(c) FEDERAL SHARE.—The Federal share of the
costs of a project under the pilot program may not exceed
90 percent.
(d) MINIMUM PROJECT COST.—The estimated total
cost of a project to be carried out under the pilot program
must be greater than $15,000,000.
(e) SELECTION PROCESS.—In the selection process
for the pilot program, the Secretary shall select, to the
extent possible, projects from several different regions of
the United States in order to demonstrate the effects that
different climates and traffic patterns have on warranty
highway construction projects.
(f) RULEMAKING.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary
shall issue a rule to implement the pilot program.
The rule shall include the following factors for eligi-
bility of a highway construction project to be in-
cluded in the program:
225
(A) A requirement that the contract for
the project must include a long-term limited
warranty that is of a duration sufficient to en-
sure that—
(i) the cost to the State of the project
that will be carried out is less than the es-
timated cost to construct the project with-
out the warranty plus the estimated costs
that would be incurred by the State and
that would otherwise be covered during the
proposed warranty period if a warranty
were in effect; and
(ii) the estimated cost to road users
during the warranty period is less than
such estimated cost without a warranty.
(B) In determining the sufficient duration
of a long-term limited warranty under subpara-
graph (A), the Secretary shall establish sepa-
rate sufficient durations for different types of
projects, such as initial construction, pavement
resurfacing and rehabilitation, and pavement
markings.
(C) A requirement that the limited war-
ranty must address, at a minimum—
226
(i) the responsibilities of the warranty
provider;
(ii) the responsibilities of the Depart-
ment of Transportation;
(iii) the terms of the warranty, includ-
ing duration and, if applicable, traffic vol-
umes and vehicle classification; and
(iv) performance criteria to be met to
determine if maintenance is required.
(2) FACTORS
TO
CONSIDER.—In issuing the
rule, the Secretary may consider the following fac-
tors as requirements for the warranty contract for
eligibility under the pilot program:
(A) A plan to account for inflation during
the warranty period.
(B) The frequency of performance assess-
ments performed.
(C) The response time for repairs.
(D) A plan for emergency repairs.
(E) Clearly set out limits of liability under
the warranty, if any.
(F) Dispute resolution provisions.
(G) A severability provision.
(H) Other provisions the Secretary con-
siders necessary for carrying out the program.
227
(g) SAVINGS.—Section 112 of title 23, United States
Code, shall apply to the projects carried out under this
section unless the Secretary determines that applying such
section to such projects is inconsistent with the provisions
of this section.
(h) REPORTS.—Not later than 5 years after the date
of enactment of this Act and every year thereafter, the
Secretary shall transmit to the Committee on Transpor-
tation and Infrastructure of the House of Representatives
and the Committee on Environment and Public Works of
the Senate a report outlining activities carried out under
the program and the results of the program.
SEC. 1503. PRIVATE INVESTMENT STUDY.
(a) STUDY.—Not later than 6 months after the date
of enactment of this Act, the Secretary shall enter into
an agreement with the National Academy of Sciences to
conduct a comprehensive study of private investment in
surface transportation infrastructure.
(b) MATTERS TO BE EVALUATED.—Under the agree-
ment, the National Academy of Sciences shall evaluate the
advantages and disadvantages of private investment in
surface transportation infrastructure and the impact of
such investment on the ability of State and local authori-
ties to use innovative financing, including—
(1) preconstruction funding requirements;
228
(2) integration of private investment in the
transportation planning process;
(3) use of toll revenues by State and local au-
thorities;
(4) use of toll credits by State and local au-
thorities;
(5) requirements for debt financing instru-
ments, reimbursable expenses, and conditions on
payments;
(6) limitation on fees charged at federally fund-
ed fringe and corridor parking facilities;
(7) revenues needed to provide a reasonable
rate of return to private investors;
(8) costs to users of facilities due to imposition
of tolls;
(9) sales-in-lease-out arrangement of transpor-
tation assets; and
(10) such other matters as the Secretary con-
siders appropriate.
(c) REPORT.—
(1) TO SECRETARY.—Under the agreement, the
National Academy of Sciences shall submit to the
Secretary a report on the results of the study by
such date as the Secretary may require.
229
(2) TO CONGRESS.—Not later than January 1,
2007, the Secretary shall transmit to the Committee
on Transportation and Infrastructure of the House
of Representatives and the Committee on Environ-
ment and Public Works of the Senate a copy of the
report of the National Academy of Sciences, together
with such recommendations as the Secretary con-
siders appropriate.
SEC. 1504. HIGHWAYS FOR LIFE PILOT PROGRAM.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary shall establish
and implement a pilot program to be known as the
‘‘Highways for LIFE pilot program’’.
(2) PURPOSE.—The purpose of the pilot pro-
gram shall be to advance longer-lasting highways
using innovative technologies and practices to ac-
complish the fast construction of efficient and safe
highways and bridges.
(3) OBJECTIVES.—Under the pilot program,
the Secretary shall provide leadership and incentives
to demonstrate and promote state-of-the-art tech-
nologies, elevated performance standards, and new
business practices in the highway construction proc-
ess that result in improved safety, faster construc-
230
tion, reduced congestion from construction, and im-
proved quality and user satisfaction.
(b) PROJECTS.—
(1) APPLICATIONS.—To be eligible to partici-
pate in the pilot program, a State shall submit to
the Secretary an application that is in such form
and contains such information as the Secretary re-
quires. Each application shall contain a description
of proposed projects to be carried by the State under
the pilot program.
(2) ELIGIBILITY.—A proposed project shall be
eligible for assistance under the pilot program if the
project—
(A) constructs, reconstructs, or rehabili-
tates a route or connection on a Federal-aid
highway eligible for assistance under chapter 1
of title 23, United States Code;
(B) uses innovative technologies, manufac-
turing processes, financing, or contracting
methods that improve safety, reduce congestion
due to construction, and improve quality; and
(C) meets additional criteria as determined
by the Secretary.
(3) PROJECT
PROPOSAL.—A project proposal
submitted under paragraph (1) shall contain—
231
(A) an identification and description of the
projects to be delivered;
(B) a description of how the projects will
result in improved safety, faster construction,
reduced congestion due to construction, user
satisfaction, and improved quality;
(C) a description of the innovative tech-
nologies, manufacturing processes, financing,
and contracting methods that will be used for
the proposed projects; and
(D) such other information as the Sec-
retary may require.
(4) 
SELECTION
CRITERIA.—In 
selecting
projects for approval under this section, the Sec-
retary shall ensure that the projects provide an eval-
uation of a broad range of technologies in a wide va-
riety of project types and shall give priority to the
projects that—
(A) address achieving the Highways for
LIFE performance standards for quality, safe-
ty, and speed of construction;
(B) deliver and deploy innovative tech-
nologies, manufacturing processes, financing,
contracting practices, and performance meas-
ures that will demonstrate substantial improve-
232
ments in safety, congestion, quality, and cost-
effectiveness;
(C) include innovation that will lead to
change in the administration of the State’s
transportation program to more quickly con-
struct long-lasting, high-quality, cost-effective
projects that improve safety and reduce conges-
tion;
(D) are or will be ready for construction
within 12 months of approval of the project
proposal; and
(E) meet such other criteria as the Sec-
retary determines appropriate.
(5) FINANCIAL ASSISTANCE.—
(A) FUNDS
FOR
HIGHWAYS
FOR
LIFE
PROJECTS.—Out of amounts made available to
carry out this section for a fiscal year, the Sec-
retary may allocate to a State up to 20 percent,
but not more than $15,000,000, of the total
cost of a project approved under this section.
Notwithstanding any other provision of law,
funds allocated to a State under this subpara-
graph may be applied to the non-Federal share
of the cost of construction of a project under
title 23, United States Code.
233
(B) USE
OF
APPORTIONED
FUNDS.—A
State may obligate not more than 10 percent of
the amount apportioned to the State under 1 or
more of paragraphs (1), (2), (3), and (4) of sec-
tion 104(b) of title 23, United States Code, for
a fiscal year for projects approved under this
section.
(C) INCREASED
FEDERAL
SHARE.—Not-
withstanding sections 120 and 129 of title 23,
United States Code, the Federal share payable
on account of any project constructed with Fed-
eral funds allocated under this section, or ap-
portioned under section 104(b) of such title, to
a State under such title and approved under
this section may amount to 100 percent of the
cost of construction of such project.
(D) LIMITATION
ON
STATUTORY
CON-
STRUCTION.—Except as provided in subpara-
graph (C), nothing in this subsection shall be
construed as altering or otherwise affecting the
applicability of the requirements of chapter 1 of
title 23, United States Code (including require-
ments relating to the eligibility of a project for
assistance under the program and the location
of the project), to amounts apportioned to a
234
State for a program under section 104(b) that
are obligated by the State for projects approved
under this subsection.
(6) PROJECT
SELECTIONS.—In the period of
fiscal years 2005 through 2009, the Secretary shall
approve at least one project in each State for par-
ticipation in the pilot program and for financial as-
sistance under paragraph (5) if the State submits an
application and the project meets the eligibility re-
quirements and selection criteria under this sub-
section.
(c) TECHNOLOGY PARTNERSHIPS.—
(1) IN
GENERAL.—The Secretary may make
grants or enter into cooperative agreements or other
transactions to foster the development, improvement,
and creation of innovative technologies and facilities
to improve safety, enhance the speed of highway
construction, and improve the quality and durability
of highways.
(2) FEDERAL SHARE.—The Federal share of
the cost of an activity carried out under this sub-
section shall not exceed 80 percent.
(d) TECHNOLOGY TRANSFER
AND INFORMATION
DISSEMINATION.—
235
(1) IN GENERAL.—The Secretary shall conduct
a Highways for LIFE technology transfer program.
(2) AVAILABILITY OF INFORMATION.—The Sec-
retary shall ensure that the information and tech-
nology used, developed, or deployed under this sub-
section is made available to the transportation com-
munity and the public.
(e) STAKEHOLDER INPUT AND INVOLVEMENT.—The
Secretary shall establish a process for stakeholder input
and involvement in the development, implementation, and
evaluation of the Highways for LIFE pilot program. The
process may include participation by representatives of
State departments of transportation and other interested
persons.
(f) PROJECT MONITORING AND EVALUATION.—The
Secretary shall monitor and evaluate the effectiveness of
any activity carried out under this section.
(g) CONTRACT AUTHORITY.—Funds authorized to be
appropriated to carry out this section shall be available
for obligation in the same manner as if the funds were
apportioned under chapter 1 of title 23, United States
Code.
(h) STATE DEFINED.—In this section, the term
‘‘State’’ has the meaning such term has under section
101(a) of title 23, United States Code.
236
Subtitle F—Finance
SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE
AND INNOVATION ACT.
(a) DEFINITIONS.—Section 181 of title 23, United
States Code, is amended—
(1) in paragraph (3)—
(A) by striking ‘‘category’’; and
(B) by striking ‘‘offered into the capital
markets’’;
(2) by striking paragraph (7);
(3) by redesignating paragraphs (8) through
(15) as paragraphs (7) through (14), respectively;
(4) by striking the period at the end of para-
graph (8)(B) (as so redesignated) and inserting a
semicolon; and
(5) in paragraph (10) (as so redesignated) by
striking ‘‘bond’’ and inserting ‘‘credit’’.
(b) 
DETERMINATION
OF
ELIGIBILITY.—Section
182(a) of such title is amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following:
‘‘(1) INCLUSION
IN
TRANSPORTATION
PLANS
AND PROGRAMS.—The project shall satisfy the appli-
cable planning and programming requirements of
sections 134 and 135 at such time as an agreement
237
to make available a Federal credit instrument is en-
tered into under this subchapter.
‘‘(2) APPLICATION.—A State, a local govern-
ment, public authority, public-private partnership, or
any other legal entity undertaking the project and
authorized by the Secretary, shall submit a project
application to the Secretary.’’;
(2) 
in 
paragraph 
(3)(A)(i) 
by 
striking
‘‘$100,000,000’’ and inserting ‘‘$50,000,000’’;
(3) 
in 
paragraph 
(3)(B) 
by 
striking
‘‘$30,000,000’’ and inserting ‘‘$15,000,000’’; and
(4) in paragraph (4)—
(A) by striking ‘‘Project financing’’ and in-
serting ‘‘The Federal credit instrument’’; and
(B) by inserting before the period at the
end ‘‘that also secure the project obligations’’.
(c) PROJECT SELECTION.—Section 182(b) of such
title is amended—
(1) in paragraph (1) by striking ‘‘criteria’’ the
second place it appears and inserting ‘‘require-
ments’’; and
(2) in paragraph (2)(B) by inserting ‘‘, which
may be the Federal credit instrument,’’ after ‘‘obli-
gations’’.
(d) SECURED LOANS.—
238
(1) AGREEMENTS.—Section 183(a)(1) of such
title is amended—
(A) in each of subparagraphs (A) and (B)
by inserting ‘‘of any project selected under sec-
tion 602’’ after ‘‘costs’’; and
(B) by striking the semicolon at the end of
subparagraph (B) and all that follows through
‘‘under section 602’’.
(2) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—Section 
183(a)(4) 
of 
such 
title 
is
amended—
(A) by striking ‘‘The funding’’ and insert-
ing ‘‘The execution’’; and
(B) by striking the first comma and all
that follows through ‘‘1 rating agency’’.
(3) TERMS AND LIMITATIONS.—Section 183(b)
of such title is amended—
(A) in paragraph (2) by inserting ‘‘the
lesser of’’ after ‘‘exceed’’;
(B) in paragraph (2) by inserting ‘‘or the
amount of the senior project obligations’’ after
‘‘costs’’;
(C) in paragraph (3)(A)(i) by inserting
‘‘that also secure the senior project obligations’’
after ‘‘sources’’; and
239
(D) in paragraph (4) by striking ‘‘market-
able’’.
(4) REPAYMENT.—Section 183(c) is amended—
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively.
(e) LINES OF CREDIT.—
(1) TERMS AND LIMITATIONS.—Section 184(b)
of such title is amended—
(A) in paragraph (3)—
(i) by striking the first comma; and
(ii) by striking ‘‘any debt service re-
serve fund, and any other available re-
serve’’ and inserting ‘‘but not including
reasonably required financing reserves’’;
(B) in paragraph (4)—
(i) by striking ‘‘marketable’’;
(ii) by striking ‘‘on which’’ and insert-
ing ‘‘of execution of’’; and
(iii) by striking ‘‘is obligated’’ and in-
serting ‘‘agreement’’; and
(C) in paragraph (5)(A)(i) by inserting
‘‘that also secure the senior project obligations’’
after ‘‘sources’’; and
240
(2) REPAYMENT.—Section 184(c) of such title
is amended—
(A) in paragraph (2)—
(i) by striking ‘‘scheduled’’;
(ii) by inserting ‘‘be scheduled to’’
after ‘‘shall’’; and
(iii) by striking ‘‘be fully repaid, with
interest,’’ and inserting ‘‘conclude, with
full repayment of principal and interest,’’;
and
(B) by striking paragraph (3).
(f) PROGRAM ADMINISTRATION.—Section 185 of
such title is amended to read as follows:
‘‘§ 185. Program administration
‘‘(a) REQUIREMENT.—The Secretary shall establish
a uniform system to service the Federal credit instrument
made available under this chapter.
‘‘(b) FEES.—The Secretary may establish fees at a
level to cover all or a portion of the costs to the Federal
Government of servicing the Federal credit instrument.
‘‘(c) SERVICES.—The Secretary may identify a finan-
cial entity to assist the Secretary in servicing a Federal
credit instrument. The services—
‘‘(1) shall act as the agent for the Secretary;
and
241
‘‘(2) shall receive a servicing fee, subject to ap-
proval by the Secretary.
‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec-
retary may retain the services of one or more expert firms,
including counsel, in the field of municipal and project fi-
nance to assist in the underwriting and servicing of Fed-
eral credit instruments.’’.
(g) FUNDING.—Section 188 of such title is amended
to read as follows:
‘‘§ 188. Special rules
‘‘(a) AVAILABILITY.—Amounts made available to
carry out this chapter shall remain available until ex-
pended.
‘‘(b) ADMINISTRATIVE COSTS.—From funds made
available to carry out this chapter, the Secretary may use,
for the administration of this subchapter, not more than
$3,000,000 for each of fiscal years 2004 through 2009.
‘‘(c) LIMITATIONS ON CREDIT AMOUNTS.—For each
of fiscal years 2004 through 2009, principal amounts of
Federal credit instruments made available under this
chapter shall be limited to $2,600,000,000.’’.
SEC. 1602. STATE INFRASTRUCTURE BANKS.
(a) IN GENERAL.—Section 189 of title 23, United
States Code, is amended to read as follows:
242
‘‘§ 189. State infrastructure bank program
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) CAPITAL
PROJECT.—The term ‘capital
project’ has the meaning such term has under sec-
tion 5302 of title 49, United States Code.
‘‘(2) OTHER FORMS OF CREDIT ASSISTANCE.—
The term ‘other forms of credit 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 insure or guarantee letters of cred-
it and credit instruments against credit risk of
loss;
‘‘(E) to finance purchase and lease agree-
ments with respect to transit projects;
‘‘(F) to provide bond or debt financing in-
strument security; and
‘‘(G) to provide other forms of debt financ-
ing and methods of leveraging funds that are
approved by the Secretary and that relate to
the project with respect to which such assist-
ance is being provided.
243
‘‘(3) STATE.—The term ‘State’ has the mean-
ing such term has under section 401 of this title.
‘‘(4) CAPITALIZATION.—The term ‘capitaliza-
tion’ means the process used for depositing funds as
initial capital into a State infrastructure bank to es-
tablish the infrastructure bank.
‘‘(5) COOPERATIVE
AGREEMENT.—The term
‘cooperative agreement’ means written consent be-
tween a State and the Secretary which sets forth the
manner in which the infrastructure bank established
by the State in accordance with this section will be
administered.
‘‘(6) LOAN.—The term ‘loan’ means any form
of direct financial assistance from a State infra-
structure bank that is required to be repaid over a
period of time and that is provided to a project
sponsor for all or part of the costs of the project.
‘‘(7) 
GUARANTEE.—The 
term 
‘guarantee’
means a contract entered into by a State infrastruc-
ture bank in which the bank agrees to take responsi-
bility for all or a portion of a project sponsor’s fi-
nancial obligations for a project under specified con-
ditions.
‘‘(8) INITIAL
ASSISTANCE.—The term ‘initial
assistance’ means the first round of funds that are
244
loaned or used for credit enhancement by a State in-
frastructure bank for projects eligible for assistance
under this section.
‘‘(9) LEVERAGE.—The term ‘leverage’ means a
financial structure used to increase funds in a State
infrastructure bank through the issuance of debt in-
struments.
‘‘(10) LEVERAGED.—The term ‘leveraged’, as
used with respect to a State infrastructure bank,
means that the bank has total potential liabilities
that exceed the capital of the bank.
‘‘(b) COOPERATIVE AGREEMENTS.—Subject to the
provisions of this section, the Secretary may enter into co-
operative agreements with States for the establishment of
State infrastructure banks for making loans and providing
other forms of credit assistance to public and private enti-
ties carrying out or proposing to carry out projects eligible
for assistance under this section.
‘‘(d) FUNDING.—
‘‘(1) HIGHWAY
ACCOUNT.—Subject to sub-
section (j), the Secretary may permit a State enter-
ing into a cooperative agreement under this section
to establish a State infrastructure bank to deposit
into the highway account of the bank not to
exceed—
245
‘‘(A) 10 percent of the funds apportioned
to the State for each of fiscal years 2005
through 2009 under each of sections 104(b)(1),
104(b)(3), 104(b)(4), and 144; and
‘‘(B) 10 percent of the funds allocated to
the State for each of such fiscal years under
section 105.
‘‘(2) TRANSIT ACCOUNT.—Subject to subsection
(j), the Secretary may permit a State entering into
a cooperative agreement under this section to estab-
lish a State infrastructure bank, and any other re-
cipient of Federal assistance under section 5307,
5309, or 5311 of title 49, to deposit into the transit
account of the bank not to exceed 10 percent of the
funds made available to the State or other recipient
in each of fiscal years 2005 through 2009 for capital
projects under each of such sections.
‘‘(3) RAIL ACCOUNT.—Subject to subsection (j),
the Secretary may permit a State entering into a co-
operative agreement under this section to establish
a State infrastructure bank, and any other recipient
of Federal assistance under subtitle V of title 49, to
deposit into the rail account of the bank funds made
available to the State or other recipient in each of
246
fiscal years 2005 through 2009 for capital projects
under such subtitle.
‘‘(4) CAPITAL GRANTS.—
‘‘(A) HIGHWAY ACCOUNT.—Federal funds
deposited into a highway account of a State in-
frastructure bank under paragraph (1) shall
constitute for purposes of this section a capital-
ization grant for the highway account of the
bank.
‘‘(B) TRANSIT
ACCOUNT.—Federal funds
deposited into a transit account of a State in-
frastructure bank under paragraph (2) shall
constitute for purposes of this section a capital-
ization grant for the transit account of the
bank.
‘‘(C) RAIL ACCOUNT.—Federal funds de-
posited into a rail account of a State infrastruc-
ture bank under paragraph 3 shall constitute
for purposes of this section a capitalization
grant for the rail account of the bank.
‘‘(5) SPECIAL RULE FOR URBANIZED AREAS OF
OVER 200,000.—Funds in a State infrastructure bank
that are attributed to urbanized areas of a State
with urbanized populations of over 200,000 under
section 133(d)(3) may be used to provide assistance
247
with respect to a project only if the metropolitan
planning organization designated for such area con-
curs, in writing, with the provision of such assist-
ance.
‘‘(6) DISCONTINUANCE
OF
FUNDING.—If the
Secretary determines that a State is not imple-
menting the State’s infrastructure bank in accord-
ance with a cooperative agreement entered into
under subsection (b), the Secretary may prohibit the
State from contributing additional Federal funds to
the bank.
‘‘(e) FORMS
OF ASSISTANCE FROM INFRASTRUC-
TURE BANKS.—An infrastructure bank established under
this section may make loans or provide other forms of
credit assistance to a public or private entity in an amount
equal to all or a part of the cost of carrying out a project
eligible for assistance under this section. The amount of
any loan or other form of credit assistance provided for
the project may be subordinated to any other debt financ-
ing for the project. Initial assistance provided with respect
to a project from Federal funds deposited into an infra-
structure bank under this section may not be made in the
form of a grant.
‘‘(f) ELIGIBLE PROJECTS.—Subject to subsection (e),
funds in an infrastructure bank established under this sec-
248
tion may be used only to provide assistance for projects
eligible for assistance under this title and capital projects
defined in section 5302 of title 49, and any other projects
related to surface transportation that the Secretary deter-
mines to be appropriate.
‘‘(g) INFRASTRUCTURE BANK REQUIREMENTS.—In
order to establish an infrastructure bank under this sec-
tion, the State establishing the bank shall—
‘‘(1) deposit in cash, at a minimum, into each
account of the bank from non-Federal sources an
amount equal to 25 percent of the amount of each
capitalization grant made to the State and deposited
into such account; except that, if the deposit is into
the highway account of the bank and the State has
a non-Federal share under section 120(b) that is
less than 25 percent, the percentage to be deposited
from non-Federal sources shall be the lower percent-
age of such grant;
‘‘(2) ensure that the bank maintains on a con-
tinuing basis an investment grade rating on its debt,
or has a sufficient level of bond or debt financing in-
strument insurance, to maintain the viability of the
bank;
249
‘‘(3) ensure that investment income derived
from funds deposited to an account of the bank
are—
‘‘(A) credited to the account;
‘‘(B) available for use in providing loans
and other forms of credit assistance to projects
eligible for assistance from the account; and
‘‘(C) invested in United States Treasury
securities, bank deposits, or such other financ-
ing instruments as the Secretary may approve
to earn interest to enhance the leveraging of
projects assisted by the bank;
‘‘(4) ensure that any loan from the bank will
bear interest at or below market interest rates, as
determined by the State, to make the project that is
the subject of the loan feasible;
‘‘(5) ensure that repayment of any loan from
the bank will commence not later than 5 years after
the project has been completed or, in the case of a
highway project, the facility has opened to traffic,
whichever is later;
‘‘(6) ensure that the term for repaying any loan
will not exceed 30 years after the date of the first
payment on the loan; and
250
‘‘(7) require the bank to make an annual report
to the Secretary on its status no later than Sep-
tember 30 of each year and such other reports as
the Secretary may require under guidelines issued to
carry out this section.
‘‘(i) UNITED STATES NOT OBLIGATED.—The deposit
of Federal funds into an infrastructure bank established
under this section shall not be construed as a commitment,
guarantee, or obligation on the part of the United States
to any third party, nor shall any third party have any right
against the United States for payment solely by virtue of
the contribution. Any security or debt-financing instru-
ment issued by the infrastructure bank shall expressly
state that the security or instrument does not constitute
a commitment, guarantee, or obligation of the United
States.
‘‘(j) MANAGEMENT OF FEDERAL FUNDS.—Sections
3335 and 6503 of title 31, shall not apply to funds depos-
ited into an infrastructure bank under this section.
‘‘(k) PROGRAM ADMINISTRATION.—For each of fiscal
years 2005 through 2009, a State may expend not to ex-
ceed 2 percent of the Federal funds contributed to an in-
frastructure bank established by the State under this sec-
tion to pay the reasonable costs of administering the
bank.’’.
251
(b) PREPARATORY AMENDMENTS.—
(1) SECTION 181.—Section 181 of such title is
further amended—
(A) by striking the section designator and
heading and inserting the following:
‘‘§ 181. Generally applicable provisions’’;
(B) by striking ‘‘In this subchapter’’ and
inserting ‘‘(a) DEFINITIONS.—In this chapter’’;
(C) in paragraph (5) by striking ‘‘184’’
and inserting ‘‘604’’;
(D) in paragraph (11) (as redesignated by
section 1601(a) of this Act) by striking ‘‘183’’
and inserting ‘‘603’’; and
(E) by adding at the end the following:
‘‘(b) TREATMENT OF CHAPTER.—For purposes of
this title, this chapter shall be treated as being part of
chapter 1.’’.
(2) SECTION 182.—Section 182(b)(2)(A)(viii) of
such title is further amended by inserting ‘‘and
chapter 1’’ after ‘‘this chapter’’.
(3) SECTION 183.—Section 183(a) of such title
is further amended—
(A) in paragraph (1) by striking ‘‘182’’
and inserting ‘‘602’’; and
252
(B) 
in 
paragraph 
(3) 
by 
striking
‘‘182(b)(2)(B)’’ and inserting ‘‘602(b)(2)(B)’’.
(4) SECTION 184.—Section 184 of such title is
further amended—
(A) in subsection (a)(1) by striking ‘‘182’’
and inserting ‘‘602’’;
(B) in subsection (a)(3) by striking
‘‘182(b)(2)(B)’’ and inserting ‘‘602(b)(2)(B)’’;
and
(C) in subsection (b)(10) by striking
‘‘183’’ and inserting ‘‘603’’.
(5) 
REFERENCES
IN
SUBCHAPTER.—Sub-
chapter II of chapter 1 of such title is amended by
striking ‘‘this subchapter’’ each place it appears and
inserting ‘‘this chapter’’.
(6) SUBCHAPTER
HEADINGS.—Chapter 1 of
such title is further amended—
(A) by striking ‘‘SUBCHAPTER I—GEN-
ERAL
PROVISIONS’’ preceding section 101;
and
(B) by striking ‘‘SUBCHAPTER
II—IN-
FRASTRUCTURE FINANCE’’ preceding section
181.
(c) CHAPTER 6.—Such title is further amended by
adding at the end the following:
253
‘‘CHAPTER 6—INFRASTRUCTURE FINANCE
‘‘Sec.
‘‘601. Generally applicable provisions.
‘‘602. Determination of eligibility and project selection.
‘‘603. Secured loans.
‘‘604. Lines of credit.
‘‘605. Program administration.
‘‘606. State and local permits.
‘‘607. Regulations.
‘‘608. Special rules.
‘‘609. State infrastructure bank program.’’.
(d) MOVING AND REDESIGNATING.—Such title is fur-
ther amended—
(1) by redesignating sections 181 through 189
as sections 601 through 609, respectively;
(2) by moving such sections from chapter 1 to
chapter 6 (as added by subsection (c)); and
(3) by inserting such sections after the analysis
for chapter 6.
(e) ANALYSIS FOR CHAPTER 1 AND TABLE OF CHAP-
TERS.—
(1) ANALYSIS FOR CHAPTER 1.—The analysis
for chapter 1 of such title is amended—
(A) by striking the headings for sub-
chapters I and II; and
(B) by striking the items relating to sec-
tions 181 through 189.
(2) TABLE OF CHAPTERS.—The table of chap-
ters for such title is amended by inserting after the
item relating to chapter 5 the following:
‘‘6. Infrastructure Finance .......................................................................
601’’.
254
SEC. 1603. INTERSTATE SYSTEM RECONSTRUCTION AND
REHABILITATION TOLL PILOT PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall establish
and implement an Interstate System reconstruction and
rehabilitation toll pilot program under which the Sec-
retary, notwithstanding sections 129 and 301 of title 23,
United States Code, may permit a State to collect tolls
on a highway, bridge, or tunnel on the Interstate System
for the purpose of reconstructing and rehabilitating the
facility.
(b) LIMITATION ON NUMBER OF FACILITIES.—The
Secretary may permit the collection of tolls under this sec-
tion on 3 facilities on the Interstate System. Each of such
facilities shall be located in a different State.
(c) ELIGIBILITY.—To be eligible to participate in the
pilot program, a State shall submit to the Secretary an
application that contains, at a minimum, the following:
(1) An identification of the facility on the Inter-
state System proposed to be a toll facility, including
the age, condition, and intensity of use of the facil-
ity.
(2) In the case of a facility that affects a met-
ropolitan area, an assurance that the metropolitan
planning organization designated under chapter 52
of title 49, United States Code, for the area has
255
been consulted concerning the placement and
amount of tolls on the facility.
(3) An analysis demonstrating that financing
the reconstruction or rehabilitation of the facility
with the collection of tolls under the pilot program
is the most efficient and economical way to advance
the project.
(4) A facility management plan that includes—
(A) a plan for implementing the imposition
of tolls on the facility;
(B) a schedule and finance plan for the re-
construction or rehabilitation of the facility
using toll revenues;
(C) a description of the public transpor-
tation agency that will be responsible for imple-
mentation and administration of the pilot pro-
gram;
(D) a description of whether consideration
will be given to privatizing the maintenance and
operational aspects of the facility, while retain-
ing legal and administrative control of the por-
tion of the Interstate route; and
(E) such other information as the Sec-
retary may require.
256
(d) SELECTION CRITERIA.—The Secretary may ap-
prove the application of a State under subsection (c) only
if the Secretary determines that—
(1) the State’s analysis under subsection (c)(3)
is reasonable;
(2) the facility has a sufficient intensity of use,
age, or condition to warrant the collection of tolls;
(3) the State plan for implementing tolls on the
facility takes into account the interests of local, re-
gional, and interstate travelers;
(4) the State plan for reconstruction or reha-
bilitation of the facility using toll revenues is reason-
able;
(5) the State will develop, manage, and main-
tain a system that will automatically collect the tolls;
and
(6) the State has given preference to the use of
a public toll agency with demonstrated capability to
build, operate, and maintain a toll expressway sys-
tem meeting criteria for the Interstate System.
(e) PROHIBITION ON NONCOMPETE AGREEMENTS.—
Before the Secretary may permit a State to participate
in the pilot program, the State must enter into an agree-
ment with the Secretary that provides that the State will
not enter into an agreement with a private person under
257
which the State is prevented from improving or expanding
the capacity of public roads adjacent to the toll facility
to address conditions resulting from traffic diverted to
such roads from the toll facility, including—
(1) excessive congestion;
(2) pavement wear; and
(3) an increased incidence of traffic accidents,
injuries, or fatalities.
(f) LIMITATIONS ON USE OF REVENUES; AUDITS.—
Before the Secretary may permit a State to participate
in the pilot program, the State must enter into an agree-
ment with the Secretary that provides that—
(1) all toll revenues received from operation of
the toll facility will be used only for—
(A) debt service;
(B) reasonable return on investment of any
private person financing the project; and
(C) any costs necessary for the improve-
ment of and the proper operation and mainte-
nance of the toll facility, including reconstruc-
tion, resurfacing, restoration, and rehabilitation
of the toll facility; and
(2) regular audits will be conducted to ensure
compliance with paragraph (1) and the results of
such audits will be transmitted to the Secretary.
258
(g) LIMITATION ON USE OF INTERSTATE MAINTE-
NANCE FUNDS.—During the term of the pilot program,
funds apportioned for Interstate maintenance under sec-
tion 104(b)(4) of title 23, United States Code, may not
be used on a facility for which tolls are being collected
under the program.
(h) PROGRAM TERM.—The Secretary may approve
an application of a State for permission to collect a toll
under this section only if the application is received by
the Secretary before the last day of the 10-year period
beginning on the date of enactment of this Act.
(i) INTERSTATE SYSTEM DEFINED.—In this section,
the term ‘‘Interstate System’’ has the meaning such term
has under section 101 of title 23, United States Code.
(j) REPORT.—Not later than September 30, 2011,
the Secretary shall transmit to the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives and the Committee on Environment and Public
Works of the Senate a report on traffic congestion on,
pavement wear of, and incidence of accidents, injuries, and
fatalities on public roads adjacent to toll facilities estab-
lished under this section and section 1604.
(k) REPEAL.—Section 1216(b) of the Transportation
Equity Act for the 21st Century (23 U.S.C. 129 note; 112
Stat. 212) is repealed.