Credit assistance raises several unique issues with respect to the conditions that apply to Federal grants. There are a number of specific provisions that extend certain requirements to projects funded under certain credit programs. Also, the scope of a Federal approval might be quite large for some loans because of the nature of the credit arrangement or instrument that is being approved by the USDOT.
Credit assistance is authorized for four types of programs in Title 23, and each of these programs have somewhat different consequences:
∙ Toll projects funded with a combination of grants and bonds (usually issued by a State, local government, or toll authority) under 23 U.S.C. 129. Section 129 covers bridges, tunnels, new construction and major reconstruction of highways (other than Interstate highways), and ferries. These types of projects are treated as regular Federal-aid projects. Toll revenues must be used for maintenance, debt service, and a reasonable return on investment. Excess toll revenues must be used for purposes eligible under title 23, U.S.C.
∙ Federal funds are available for loans for transportation projects under 23 U.S.C. 129(a)(7). Projects constructed with these types of loans are treated as normal Federal-aid projects. [421] However, the only condition that applies to projects funded by monies repaid on this initial loan is that such funds be used for projects eligible for Title 23, United States Code, assistance (but are not otherwise constrained by Federal requirements).[422]
∙ Funds made available through a State Infrastructure Bank. Two SIB pilot programs are authorized, the first under section 350 of the National Highway System Designation Act of 1995 (NHS Act) and the second under section 1511 of TEA-21.[423] Federal requirements do not apply to SIB assistance from repaid SIB loan funds for the 39 SIBs authorized under the 1995 National Highway System Act. Federal requirements do apply to SIB assistance from SIB repayments for SIBs authorized under the TEA-21 (2 currently in operation).
∙ Funds made available through TIFIA credit instruments. TIFIA is the most complex and most far reaching of the credit assistance programs. Because funds can be made available directly to a public-private partnership, it is often viewed as the most critical transportation program created by Congress that is aimed at the public-private partnerships discussed in this report. Certain Federal conditions apply comprehensively to an action that is the beneficiary of a TIFIA loan. These include Title VI of the Civil Rights Act of 1964, NEPA, and the Uniform Act. Other Federal requirements would apply to the same extent that would be the case if the TIFIA project were to be funded with grant funds (i.e., Davis-Bacon, DBE). Thus, the extent to which Federal conditions apply depends upon what types of funds are being applied to the specific construction project contract being undertaken by the recipient of the TIFIA loan.
Title 23, United States Code