TEA-21 - Transportation Equity Act for the 21st Century
Moving Americans into the 21st Century
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STATE INFRASTRUCTURE BANK PROGRAM
TEA-21 establishes a new State Infrastructure Bank (SIB) pilot program under which four StatesCalifornia, Florida, Missouri, and Rhode Islandare authorized to enter into cooperative agreements with the Secretary to set up infrastructure revolving funds eligible to be capitalized with Federal transportation funds authorized for the FY1998-2003 period. [1511(b)]
This new SIB program gives States the capacity to increase the efficiency of their transportation investment and significantly leverage Federal resources by attracting non-Federal public and private investment. The program provides greater flexibility to the States by allowing other types of project assistance in addition to the traditional reimbursable grant. [1511(d)(1)]
SIBs provide various forms of non-grant assistance to eligible projects, including below-market rate subordinate loans, interest rate buy-downs on third-party loans, and guarantees and other forms of credit enhancement. Any debt that the SIB issues or guarantees must be of investment-grade caliber. [1511(d)]
The four States participating in the new pilot program may capitalize their SIBs with funds from the following Federal-aid categories without limitation: National Highway System, Surface Transportation Program (except safety and enhancements), Bridge, Minimum Guarantee, and Interstate Maintenance; funds provided under section 5302 of Title 49; and funds provided under subtitle V of Title 49 that are made available to the State. [1511(c)]
Federal capitalization grants funded from Interstate Maintenance funds and from Title 49 Rail project funds may only be used to provide credit assistance for related-purpose projects. [1511(e)]
Federal capitalization grants will be disbursed over a five-year period. [1511(h)(1)]
Projects eligible for SIB assistance under the new TEA-21 pilot include highway and transit capital projects eligible under Title 23 and chapter 53 of Title 49, as well as other surface transportation projects designated by the Secretary.
Both the initial credit assistance funded with Federal capitalization grants and any subsequent assistance funded with loan repayments and other recycled funds will be subject to the requirements of Titles 23 and 49, as applicable.
SIBs Authorized by the NHS Designation Act
Thirty-four other States and the Commonwealth of Puerto Rico, which had been approved to establish SIBs under an earlier SIB pilot program authorized by the National Highway System Designation Act of 1995, will continue to operate their SIBs under the provisions of the NHS Designation Act and related guidance.
TEA-21 funds may not be used to capitalize these SIBs.
September 14, 1998