TE-045 - Innovative Finance Test and Evaluation Program
In response to Executive Order 12893 and in recognition of the need to explore new financing strategies, FHWA announced the Innovative Finance Program - Test and Evaluation Project (TE-045) in a Federal Register notice dated April 8, 1994. The program was established using statutory authority granted under Section 307(a) of Title 23 of the U.S. Code. Section 307(a) permits FHWA to engage in a wide range of research projects, including those related to highway finance. As part of this research effort, FHWA was able to waive selected policies and procedures so that specific transportation projects could be advanced through the use of non-traditional financing concepts.
NCHRP Synthesis 395: Debt Finance Practices for Surface Transportation
This report presents basic principles of debt issuance for public agencies. The primary focus is on the current practices of state agencies with responsibilities for surface transportation investment. The report may be useful in assisting in the decision on when and how to best use debt financing techniques to fund investments in transportation infrastructure. Anticipated audiences include those with financial oversight responsibilities for state DOTs, public authorities, and local governments. Others who may benefit include legislative oversight committees and the media. Information for this report was gathered through a literature review, a comprehensive survey of state DOTs, selected interviews, and a study of selected state policies, guidelines, and documentation. Among the debt financing tools studied in this project were GARVEEs, SIBs, TIFIA, PABs, and state and local finance mechanisms.
NCHRP Web-Only Document 102: Future Financing Options to Meet Highway and Transit Needs
This report presents options for all levels of government to close the nation's highway and transit investment deficits on a sustainable basis. The study estimated the needs and revenues available at all levels of government from 2007 to 2017; examined existing and emerging revenue options; and demonstrated potential portfolios of funding options to close the revenue gap. The report also discusses necessary implementation steps to help secure the needed additional transportation investment.
Performance Review of U.S. DOT Innovative Finance Initiatives
This 2002 report prepared by FHWA provides the first comprehensive evaluation of the innovative finance programs established in the 1990s with the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), Executive Order 12893 of 1994, the TE- 045 program, the National Highway System Designation (NHS) Act of 1995 and, the Transportation Equity Act for the 21st Century (TEA-21) of 1998. Chapter 2.0 describes the approaches used to measure the performance of these initiatives, which involve both quantitative and qualitative methodologies. Chapter 3.0 presents the quantitative results of the performance review, in terms of the ability of the innovative finance tools to leverage transportation investment, accelerate projects, and yield economic benefits. Chapter 4.0 contains case studies of 11 projects that have used one or a combination of innovative finance tools to overcome a project funding challenge. Finally, Chapter 5.0 offers observations and conclusions on the effectiveness of U.S. DOT/FHWA-sponsored innovative finance initiatives, and suggests ways in which continued experimentation with new tools could afford additional benefits for the nation's surface transportation system.