sources that also secure or fund the project obliga-
tions. 
(4) PUBLIC SPONSORSHIP OF PRIVATE ENTI-
TIES.—In the case of a project carried out by an en-
tity that is not a State or local government or an 
agency or instrumentality of a State or local govern-
ment, the project shall be publicly sponsored as dem-
onstrated by certification of the same by an agency 
of the relevant State, inclusion in the relevant 
State’s official improvement plan or by other means 
acceptable to the Secretary. 
(d) RECEIPT OF OTHER FEDERAL FUNDING.—Re-
ceipt of a Federal grant or contract or other Federal fund-
ing to support an eligible project shall preclude the project 
from being eligible for assistance under this Act. 
SEC. 6. SELECTION CRITERIA. 
(a) ESTABLISHMENT.—The Secretary shall establish 
criteria for the selection of one or more projects that meet 
the eligibility requirements section 5 in accordance with 
paragraph (2). The Secretary may enter into a master 
credit agreement for a projects secured by a common secu-
rity pledge on terms acceptable to the Secretary. 
(b) CRITERIA.—The selection criteria shall include 
the following: 
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(1) The extent to which the project is nationally 
or regionally significant. 
(2) The extent to which assistance under this 
section would foster innovative public-private part-
nerships and attract private debt or equity invest-
ment. 
(3) The likelihood that assistance under this 
section would enable the project to proceed at an 
earlier date than the project would otherwise be able 
to proceed. 
(4) The extent to which the project uses new or 
innovative approaches. 
(5) The amount of budget authority required to 
fund the Federal credit instrument made available 
under this Act. 
(6) The extent to which the project helps main-
tain or protect the environment. 
SEC. 7. FEDERAL REQUIREMENTS. 
(a) EFFECT OF SECTION.—Nothing in this section 
supersedes the applicability of other requirements of Fed-
eral law (including regulations). 
(b) NEPA.—A Federal action carried out regarding 
a loan or loan guarantee provided under this Act shall not 
be considered to be a Federal action for purposes of the 
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National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). 
SEC. 8. SECURED LOANS. 
(a) AGREEMENTS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
through (4), the Secretary may enter into agree-
ments with one or more obligors to make secured 
loans, the proceeds of which shall be used— 
(A) to finance eligible project costs of any 
project selected under section 6; 
(B) to refinance interim construction fi-
nancing of eligible project costs of any project 
selected under section 6; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if that refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of 
any project that is selected under section 6. 
(2) LIMITATION ON REFINANCING OF INTERIM 
CONSTRUCTION FINANCING.—A secured loan under 
paragraph (1) shall not be used to refinance interim 
construction financing under paragraph (1)(B)— 
(A) if the maturity of such interim con-
struction financing is later than 1 year after 
the substantial completion of the project; and 
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(B) later than 1 year after the date of sub-
stantial completion of the applicable project. 
(3) RISK
ASSESSMENT.—Before entering into 
an agreement under this subsection for a secured 
loan, the Secretary, in consultation with the Director 
of the Office of Management and Budget shall deter-
mine an appropriate capital reserve subsidy amount 
for the secured loan, taking into account each such 
preliminary rating opinion letter. 
(4) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—The execution of a secured loan under this 
section shall be contingent on receipt by the senior 
obligations of the project secured by the same rev-
enue pledge of an investment-grade rating from at 
least one rating agency. 
(b) TERMS AND LIMITATIONS.— 
(1) IN GENERAL.—A secured loan provided for 
a project under this section shall be subject to such 
terms and conditions, and contain such covenants, 
representations, warranties, and requirements (in-
cluding requirements for audits), as the Secretary 
determines to be appropriate. 
(2) MAXIMUM AMOUNT.—The amount of a se-
cured loan under this section shall not exceed the 
lesser of— 
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(A) an amount equal to 49 percent of the 
reasonably anticipated eligible project costs; and 
(B) if the secured loan does not receive an 
investment-grade rating, the amount of the sen-
ior project obligations of the project. 
(3) PAYMENT.—A secured loan under this sec-
tion— 
(A) shall be payable, in whole or in part, 
from State or local taxes, user fees, or other 
dedicated revenue sources that also secure the 
senior project obligations of the relevant 
project; 
(B) shall include a rate covenant, coverage 
requirement, or similar security feature sup-
porting the project obligations; and 
(C) may have a lien on revenues described 
in subparagraph (A), subject to any lien secur-
ing project obligations. 
(4) INTEREST RATE.—The interest rate on a 
secured loan under this section shall not be less than 
a rate equal to the yield on United States Treasury 
securities of a similar maturity to the maturity of 
the secured loan on the date of execution of the loan 
agreement. 
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