H. R. 2400—138
of an intelligent transportation system, eligible project costs
shall be reasonably anticipated to equal or exceed
$30,000,000.
‘‘(4) DEDICATED REVENUE SOURCES.—Project financing shall
be repayable, in whole or in part, from tolls, user fees, or
other dedicated revenue sources.
‘‘(5) PUBLIC SPONSORSHIP OF PRIVATE ENTITIES.—In the case
of a project that is undertaken by an entity that is not a
State or local government or an agency or instrumentality
of a State or local government, the project that the entity
is undertaking shall be publicly sponsored as provided in para-
graphs (1) and (2).
‘‘(b) SELECTION AMONG ELIGIBLE PROJECTS.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish criteria
for selecting among projects that meet the eligibility criteria
specified in subsection (a).
‘‘(2) SELECTION CRITERIA.—
‘‘(A) IN GENERAL.—The selection criteria shall include
the following:
‘‘(i) The extent to which the project is nationally
or regionally significant, in terms of generating eco-
nomic benefits, supporting international commerce, or
otherwise enhancing the national transportation sys-
tem.
‘‘(ii) The creditworthiness of the project, including
a determination by the Secretary that any financing
for the project has appropriate security features, such
as a rate covenant, to ensure repayment.
‘‘(iii) The extent to which assistance under this
subchapter would foster innovative public-private part-
nerships and attract private debt or equity investment.
‘‘(iv) The likelihood that assistance under this sub-
chapter would enable the project to proceed at an ear-
lier date than the project would otherwise be able
to proceed.
‘‘(v) The extent to which the project uses new
technologies, including intelligent transportation sys-
tems, that enhance the efficiency of the project.
‘‘(vi) The amount of budget authority required to
fund the Federal credit instrument made available
under this subchapter.
‘‘(vii) The extent to which the project helps main-
tain or protect the environment.
‘‘(viii) The extent to which assistance under this
chapter would reduce the contribution of Federal grant
assistance to the project.
‘‘(B) PRELIMINARY RATING OPINION LETTER.—For pur-
poses of subparagraph (A)(ii), the Secretary shall require
each project applicant to provide a preliminary rating opin-
ion letter from at least 1 rating agency indicating that
the project’s senior obligations have the potential to achieve
an investment-grade rating.
‘‘(c) FEDERAL REQUIREMENTS.—In addition to the requirements
of this title for highway projects, chapter 53 of title 49 for transit
projects, and section 5333(a) of title 49 for rail projects, the following
provisions of law shall apply to funds made available under this
subchapter and projects assisted with the funds:
H. R. 2400—139
‘‘(1) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).
‘‘(2) The National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
‘‘(3) The Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).
‘‘§ 183. Secured loans
‘‘(a) IN GENERAL.—
‘‘(1) AGREEMENTS.—Subject to paragraphs (2) through (4),
the Secretary may enter into agreements with 1 or more obli-
gors to make secured loans, the proceeds of which shall be
used—
‘‘(A) to finance eligible project costs; or
‘‘(B) to refinance interim construction financing of
eligible project costs;
of any project selected under section 182.
‘‘(2) LIMITATION ON REFINANCING OF INTERIM CONSTRUCTION
FINANCING.—A loan under paragraph (1) shall not refinance
interim construction financing under paragraph (1)(B) later
than 1 year after the date of substantial completion of the
project.
‘‘(3) RISK ASSESSMENT.—Before entering into an agreement
under this subsection, the Secretary, in consultation with the
Director of the Office of Management and Budget and each
rating agency providing a preliminary rating opinion letter
under section 182(b)(2)(B), shall determine an appropriate cap-
ital reserve subsidy amount for each secured loan, taking into
account such letter.
‘‘(4) INVESTMENT-GRADE RATING REQUIREMENT.—The fund-
ing of a secured loan under this section shall be contingent
on the project’s senior obligations receiving an investment-
grade rating, except that—
‘‘(A) the Secretary may fund an amount of the secured
loan not to exceed the capital reserve subsidy amount
determined under paragraph (3) prior to the obligations
receiving an investment-grade rating; and
‘‘(B) the Secretary may fund the remaining portion
of the secured loan only after the obligations have received
an investment-grade rating by at least 1 rating agency.
‘‘(b) TERMS AND LIMITATIONS.—
‘‘(1) IN GENERAL.—A secured loan 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 AMOUNT.—The amount of the secured loan
shall not exceed 33 percent of the reasonably anticipated eligible
project costs.
‘‘(3) PAYMENT.—The secured loan—
‘‘(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
H. R. 2400—140
‘‘(B) may have a lien on revenues described in subpara-
graph (A) subject to any lien securing project obligations.
‘‘(4) INTEREST RATE.—The interest rate on the secured loan
shall be not less than the yield on marketable United States
Treasury securities of a similar maturity to the maturity of
the secured loan on the date of execution of the loan agreement.
‘‘(5) MATURITY
DATE.—The final maturity date of the
secured loan shall be not later than 35 years after the date
of substantial completion of the project.
‘‘(6) NONSUBORDINATION.—The secured loan shall not be
subordinated to the claims of any holder of project obligations
in the event of bankruptcy, insolvency, or liquidation of the
obligor.
‘‘(7) FEES.—The Secretary may establish fees at a level
sufficient to cover all or a portion of the costs to the Federal
Government of making a secured loan under this section.
‘‘(8) NON-FEDERAL SHARE.—The proceeds of a secured loan
under this subchapter may be used for any non-Federal share
of project costs required under this title or chapter 53 of title
49, if the loan is repayable from non-Federal funds.
‘‘(c) REPAYMENT.—
‘‘(1) SCHEDULE.—The Secretary shall establish a repayment
schedule for each secured loan under this section based on
the projected cash flow from project revenues and other repay-
ment sources.
‘‘(2) COMMENCEMENT.—Scheduled loan repayments of prin-
cipal or interest on a secured loan under this section shall
commence not later than 5 years after the date of substantial
completion of the project.
‘‘(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.
‘‘(4) DEFERRED PAYMENTS.—
‘‘(A) AUTHORIZATION.—If, at any time during the 10
years after the date of substantial completion of the project,
the project is unable to generate sufficient revenues to
pay the scheduled loan repayments of principal and interest
on the secured loan, the Secretary may, subject to subpara-
graph (C), allow the obligor to add unpaid principal and
interest to the outstanding balance of the secured loan.
‘‘(B) INTEREST.—Any payment deferred under subpara-
graph (A) shall—
‘‘(i) continue to accrue interest in accordance with
subsection (b)(4) until fully repaid; and
‘‘(ii) be scheduled to be amortized over the remain-
ing term of the loan beginning not later than 10 years
after the date of substantial completion of the project
in accordance with paragraph (1).
‘‘(C) CRITERIA.—
‘‘(i) IN
GENERAL.—Any payment deferral under
subparagraph (A) shall be contingent on the project
meeting criteria established by the Secretary.
‘‘(ii) REPAYMENT STANDARDS.—The criteria estab-
lished under clause (i) shall include standards for
reasonable assurance of repayment.
‘‘(5) PREPAYMENT.—
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‘‘(A) USE OF EXCESS REVENUES.—Any excess revenues
that remain after satisfying scheduled debt service require-
ments on the project obligations and secured loan and
all deposit requirements under the terms of any trust
agreement, bond resolution, or similar agreement securing
project obligations may be applied annually to prepay the
secured loan without penalty.
‘‘(B) USE OF PROCEEDS OF REFINANCING.—The secured
loan may be prepaid at any time without penalty from
the proceeds of refinancing from non-Federal funding
sources.
‘‘(d) SALE OF SECURED LOANS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), as soon as
practicable after substantial completion of a project and after
notifying the obligor, the Secretary may sell to another entity
or reoffer into the capital markets a secured loan for the project
if the Secretary determines that the sale or reoffering can
be made on favorable terms.
‘‘(2) CONSENT OF OBLIGOR.—In making a sale or reoffering
under paragraph (1), the Secretary may not change the original
terms and conditions of the secured loan without the written
consent of the obligor.
‘‘(e) LOAN GUARANTEES.—
‘‘(1) IN
GENERAL.—The Secretary may provide a loan
guarantee to a lender in lieu of making a secured loan if
the Secretary determines that the budgetary cost of the loan
guarantee is substantially the same as that of a secured loan.
‘‘(2) TERMS.—The terms of a guaranteed loan shall be
consistent with the terms set forth in this section for a secured
loan, except that the rate on the guaranteed loan and any
prepayment features shall be negotiated between the obligor
and the lender, with the consent of the Secretary.
‘‘§ 184. Lines of credit
‘‘(a) IN GENERAL.—
‘‘(1) AGREEMENTS.—Subject to paragraphs (2) through (4),
the Secretary may enter into agreements to make available
lines of credit to 1 or more obligors in the form of direct
loans to be made by the Secretary at future dates on the
occurrence of certain events for any project selected under
section 182.
‘‘(2) USE OF PROCEEDS.—The proceeds of a line of credit
made available under this section shall be available to pay
debt service on project obligations issued to finance eligible
project costs, extraordinary repair and replacement costs, oper-
ation and maintenance expenses, and costs associated with
unexpected Federal or State environmental restrictions.
‘‘(3) RISK ASSESSMENT.—Before entering into an agreement
under this subsection, the Secretary, in consultation with the
Director of the Office of Management and Budget and each
rating agency providing a preliminary rating opinion letter
under section 182(b)(2)(B), shall determine an appropriate cap-
ital reserve subsidy amount for each line of credit, taking
into account such letter.
‘‘(4) INVESTMENT-GRADE RATING REQUIREMENT.—The fund-
ing of a line of credit under this section shall be contingent