TIFIA. TEA-21 authorized the TIFIA program, which provides direct loans, loan guarantees and lines of credit to states, local governments and State Infrastructure Banks to finance surface transportation projects. Under SAFETEA-LU, public-private partnerships and other legal entities undertaking a project can directly apply for TIFIA assistance. The definition of eligible projects has been expanded to include public freight rail facilities or private facilities providing public benefit for highway users; intermodal freight transfer facilities; and access to freight rail or intermodal freight transfer facilities. Second, the eligibility threshold was lowered to $50 million for all but ITS projects. The threshold for ITS projects was lowered to $15 million. TIFIA loans may now be used to refinance long-term project obligations or Federal credit instruments if such refinancing provides additional funding capacity for the completion, enhancement, or expansion of the project.
State Infrastructure Banks. All States and the District of Columbia are now allowed the option to transfer a limited amount of the State's Highway Trust Fund allocations to State infrastructure banks (SIBs). SIB loans can be used to help finance state transportation projects, but they now retain their character as federal funds. Upon repayment, the SIB loans can be re-loaned to support other projects. The amounts that a State may transfer to a SIB is limited generally to 10 percent of its annual highway, transit and rail apportionments under designated sections of titles 23 and 49.
Highways for Life. Projects that use innovative technologies, manufacturing processes, financing, or contracting methods that improve safety, reduce congestion due to construction, and improve quality can qualify for special funding under the new "Highways for Life" program created under Section 1502 of the Act. This program can fund up to 20% of project costs or a maximum of $5 million per project. The program is limited to 15 projects per year between 2005 and 2009.
Karen Hedlund is the head of Nossaman's Northern Virginia office and can be reached at (703) 351-5010 or { HYPERLINK "mailto:khedlund@nossaman.com" \t "_blank" }. Nancy Smith is in Nossaman's Los Angeles office and can be reached at (213) 612-7837 or nsmith@nossaman.com.