section (b) of this section for financial assistance under 
section 208. 
(b) PROJECT REQUIREMENTS.—An eligible project 
may not be selected to receive financial assistance under 
section 208 unless the Secretary determines that the 
project meets all of the following criteria: 
(1) CREDITWORTHINESS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the project shall be creditworthy, as 
determined by the Secretary as applicable, to 
shall ensure that any financing for the project 
has appropriate security features, such as a 
rate covenant, to ensure repayment. 
(B) PRELIMINARY RATING OPINION LET-
TER.—The Secretary shall require the applicant 
for each project to provide, as part of the appli-
cation for the project under section 206, a pre-
liminary rating opinion letter from at least one 
rating agency indicating that the senior project 
obligations of the project (which may be the 
Federal credit instrument) have the potential to 
achieve an investment-grade rating. 
(C) SPECIAL
RULE
FOR
CERTAIN
COM-
BINED PROJECTS.—The Secretary shall develop 
a credit evaluation process for a Federal credit 
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instrument provided to a State infrastructure 
financing authority for a project described in 
section 206(b), which may include requiring the 
provision of a preliminary rating opinion letter 
from at least one rating agency. 
(2) ELIGIBLE PROJECT COSTS.—The costs of 
the eligible project shall be reasonably anticipated to 
be not less than $20,000,000. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument for the project shall be repay-
able, in whole or in part, from dedicated revenue 
sources that also secure the project obligations. 
(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. 
(c) SELECTION CRITERIA.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for the selection of projects that meet 
the eligibility requirements of subsection (b). Such 
criteria shall be designed to ensure a diversity of 
project types and geographical locations, and shall 
include the following: 
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(A) The extent to which the project is 
statewide or regionally significant, with respect 
to the generation of increased recreational op-
portunities. 
(B) The extent to which assistance under 
this title would foster innovative public-private 
partnerships and attract private debt or equity 
investment. 
(C) The likelihood that assistance under 
this title would enable the project to proceed at 
an earlier date than the project would otherwise 
be able to proceed. 
(D) The extent to which the project uses 
new or innovative approaches. 
(E) The amount of budget authority re-
quired to fund the Federal credit instrument 
for the project made available under this title. 
(F) The extent to which the project helps 
maintain or protect the environment. 
(G) The extent to which assistance under 
this section reduces the contribution of Federal 
grant assistance to the project. 
(2) SPECIAL
RULE
FOR
CERTAIN
COMBINED 
PROJECTS.—For a project described in section 
206(b), the Secretary shall only consider the criteria 
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described in subparagraphs (B) through (G) of para-
graph (1). 
(d) FEDERAL REQUIREMENTS.—Nothing in this sec-
tion may be construed to alter, affect, or annul the appli-
cability of any other Federal laws or regulations. 
SEC. 208. SECURED LOANS AND LOAN GUARANTEES. 
(a) AUTHORITY.—The Secretary may enter into 
agreements with eligible entities to make, and may make, 
secured loans to such entities as provided under this sec-
tion for eligible projects selected under section 207 for fi-
nancial assistance under this section. 
(b) USE.— 
(1) IN GENERAL.—The proceeds of a secured 
loan under this section shall be used only— 
(A) to finance eligible project costs of an 
eligible project selected under section 207; 
(B) subject to paragraph (2) of this sub-
section, to refinance interim construction fi-
nancing of eligible project costs of an eligible 
project selected under section 207; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if such refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of a 
project that— 
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(i) is selected under section 207; or 
(ii) was originally financed, in whole 
or in part, with amounts provided other 
than under this title, if the project other-
wise meets the requirements of section 
207. 
(2) LIMITATION ON REFINANCING OF INTERIM 
CONSTRUCTION FINANCING.—The proceeds of a se-
cured loan under this section made for an eligible 
project may not be used for the purpose under para-
graph (1)(B) after the expiration of the 12-month 
period beginning upon the date of substantial com-
pletion of the project. 
(c) 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 and each rating agency pro-
viding a preliminary rating opinion letter under section 
207(b)(1)(B), shall determine an appropriate capital re-
serve subsidy amount for the secured loan, taking into ac-
count each such preliminary rating opinion letter. 
(d) INVESTMENT-GRADE RATING REQUIREMENT FOR 
SENIOR OBLIGATIONS.—The execution of a secured loan 
under this section shall be contingent on receipt by the 
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