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Legislation & Regulations

Map-21 Conference Report To Accompany H.R. 4348

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112th Congress, 2nd Session
House of Representatives
Senate
Report 112-557

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June 28, 2012. - Ordered to be printed

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(b) EFFECT AND APPLICATION. - Nothing in this subtitle or any
amendment made by this subtitle - 
	(1) supersedes or otherwise affects any other provision of
	Federal law, including, in particular, laws providing recovery
	for injury to natural resources under the Oil Pollution Act of
	1990 (33 U.S.C. 2701 et seq.) and laws for the protection of
	public health and the environment; or
	(2) applies to any fine collected under section 311 of the
	Federal Water Pollution Control Act (33 U.S.C. 1321) for any
	incident other than the Deepwater Horizon oil spill.
(c) USE OF FUNDS. - Funds made available under this subtitle
may be used only for eligible activities specifically authorized by
this subtitle and the amendments made by this subtitle.

 SEC. 1607. RESTORATION AND PROTECTION ACTIVITY LIMITATIONS.
(a) WILLING SELLER. - Funds made available under this subtitle
may only be used to acquire land or interests in land by purchase,
exchange, or donation from a willing seller.
	(b) ACQUISITION OF FEDERAL LAND. - None of the funds made
available under this subtitle may be used to acquire land in fee title
by the Federal Government unless - 
    (1) the land is acquired by exchange or donation; or
    (2) the acquisition is necessary for the restoration and protection
	of the natural resources, ecosystems, fisheries, marine
	and wildlife habitats, beaches, and coastal wetlands of the Gulf
	Coast region and has the concurrence of the Governor of the
	State in which the acquisition will take place.

 SEC. 1608. INSPECTOR GENERAL.
	The Office of the Inspector General of the Department of the
Treasury shall have authority to conduct, supervise, and coordinate
audits and investigations of projects, programs, and activities funded
under this subtitle and the amendments made by this subtitle.

 TITLE II - AMERICA FAST FORWARD
FINANCING INNOVATION SEC. 2001. SHORT TITLE.
	This title may be cited as the "America Fast Forward Financing
Innovation Act of 2012".

 SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION
ACT OF 1998 AMENDMENTS.
	Sections 601 through 609 of title 23, United States Code, are
amended to read as follows:

 "§ 601. Generally applicable provisions
	"(a) DEFINITIONS. - In this chapter, the following definitions
apply:
    "(1) CONTINGENT COMMITMENT. - The term 'contingent commitment'
	means a commitment to obligate an amount from future
	available budget authority that is - 
    	"(A) contingent on those funds being made available in
    law at a future date; and
    	"(B) not an obligation of the Federal Government.

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    "(2) ELIGIBLE PROJECT COSTS. - The term 'eligible project
	costs' means amounts substantially all of which are paid by, or
	for the account of, an obligor in connection with a project, including
	the cost of - 
    	"(A) development phase activities, including planning,
    feasibility analysis, revenue forecasting, environmental review,
    permitting, preliminary engineering and design work,
    and other preconstruction activities;
    	"(B) construction, reconstruction, rehabilitation, replacement,
    and acquisition of real property (including land
    relating to the project and improvements to land), environmental
    mitigation, construction contingencies, and acquisition
    of equipment; and
    	"(C) capitalized interest necessary to meet market requirements,
    reasonably required reserve funds, capital
    issuance expenses, and other carrying costs during construction.
    "(3) FEDERAL CREDIT INSTRUMENT. - The term 'Federal
	credit instrument' means a secured loan, loan guarantee, or line
	of credit authorized to be made available under this chapter
	with respect to a project.
    "(4) INVESTMENT-GRADE RATING. - The term 'investment grade
	rating' means a rating of BBB minus, Baa3, bbb minus,
	BBB (low), or higher assigned by a rating agency to project obligations.
    "(5) LENDER. - The term 'lender' means any non-Federal
	qualified institutional buyer (as defined in section 230.144A(a)
	of title 17, Code of Federal Regulations (or any successor regulation),
	known as Rule 144A(a) of the Securities and Exchange
	Commission and issued under the Securities Act of 1933 (15
	U.S.C. 77a et seq.)), including - 
    	"(A) a qualified retirement plan (as defined in section
    4974(c) of the Internal Revenue Code of 1986) that is a
    qualified institutional buyer; and
    	"(B) a governmental plan (as defined in section 414(d)
    of the Internal Revenue Code of 1986) that is a qualified institutional
    buyer.
    "(6) LETTER OF INTEREST. - The term 'letter of interest'
	means a letter submitted by a potential applicant prior to an
	application for credit assistance in a format prescribed by the
	Secretary on the website of the TIFIA program that - 
    	"(A) describes the project and the location, purpose,
    and cost of the project;
    	"(B) outlines the proposed financial plan, including the
    requested credit assistance and the proposed obligor;
    	"(C) provides a status of environmental review; and
    	"(D) provides information regarding satisfaction of
    other eligibility requirements of the TIFIA program.
    "(7) LINE OF CREDIT. - The term 'line of credit' means an
	agreement entered into by the Secretary with an obligor under
	section 604 to provide a direct loan at a future date upon the
	occurrence of certain events.
    "(8) LIMITED BUYDOWN. - The term 'limited buydown'
	means, subject to the conditions described in section

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	603(b)(4)(C), a buydown of the interest rate by the obligor if the
interest rate has increased between - 
    	"(A)(i) the date on which a project application acceptable
    to the Secretary is submitted; or
        "(ii) the date on which the Secretary entered into a
    	master credit agreement; and
    	"(B) the date on which the Secretary executes the Federal
    credit instrument.
    "(9) LOAN GUARANTEE. - The term 'loan guarantee' means
	any guarantee or other pledge by the Secretary to pay all or
	part of the principal of and interest on a loan or other debt obligation
	issued by an obligor and funded by a lender.
    "(10) MASTER CREDIT AGREEMENT. - The term 'master credit
	agreement' means an agreement to extend credit assistance for
	a program of projects secured by a common security pledge
	(which shall receive an investment-grade rating from a rating
	agency), or for a single project covered under section 602(b)(2)
	that would - 
    	"(A) make contingent commitments of 1 or more secured
    loans or other Federal credit instruments at future
    dates, subject to the availability of future funds being made
    available to carry out this chapter;
    	"(B) establish the maximum amounts and general
    terms and conditions of the secured loans or other Federal
    credit instruments;
    	"(C) identify the 1 or more dedicated non-Federal revenue
    sources that will secure the repayment of the secured
    loans or secured Federal credit instruments;
    	"(D) provide for the obligation of funds for the secured
    loans or secured Federal credit instruments after all requirements
    have been met for the projects subject to the
    master credit agreement, including - 
        "(i) completion of an environmental impact statement
    	or similar analysis required under the National
    	Environmental Policy Act of 1969 (42 U.S.C. 4321 et
    	seq.);
        "(ii) compliance with such other requirements as
    	are specified in section 602(c); and
        "(iii) the availability of funds to carry out this
    	chapter; and
    	"(E) require that contingent commitments result in a financial
    close and obligation of credit assistance not later
    than 3 years after the date of entry into the master credit
    agreement, or release of the commitment, unless otherwise
    extended by the Secretary.
    "(11) OBLIGOR. - The term 'obligor' means a party that - 
    	"(A) is primarily liable for payment of the principal of
    or interest on a Federal credit instrument; and
    	"(B) may be a corporation, partnership, joint venture,
    trust, or governmental entity, agency, or instrumentality.
    "(12) PROJECT. - The term 'project' means - 
    	"(A) any surface transportation project eligible for Federal
    assistance under this title or chapter 53 of title 49;

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    	"(B) a project for an international bridge or tunnel for
which an international entity authorized under Federal or
State law is responsible;
    	"(C) a project for intercity passenger bus or rail facilities
and vehicles, including facilities and vehicles owned by
the National Railroad Passenger Corporation and components
of magnetic levitation transportation systems; and
    	"(D) a project that - 
        "(i) is a project - 
      "(I) for a public freight rail facility or a private
        facility providing public benefit for highway
        users by way of direct freight interchange between
        highway and rail carriers;
      "(II) for an intermodal freight transfer facility;
      "(III) for a means of access to a facility described
        in subclause (I) or (II);
      "(IV) for a service improvement for a facility
        described in subclause (I) or (II) (including a capital
        investment for an intelligent transportation
        system); or
      "(V) that comprises a series of projects described
        in subclauses (I) through (IV) with the
        common objective of improving the flow of goods;
        "(ii) may involve the combining of private and public
    	sector funds, including investment of public funds
    	in private sector facility improvements;
        "(iii) if located within the boundaries of a port terminal,
    	includes only such surface transportation infrastructure
    	modifications as are necessary to facilitate direct
    	intermodal interchange, transfer, and access into
    	and out of the port; and
        "(iv) is composed of related highway, surface transportation,
    	transit, rail, or intermodal capital improvement
    	projects eligible for assistance under this section
    	in order to meet the eligible project cost threshold
    	under section 602, by grouping related projects together
    	for that purpose, subject to the condition that the credit
    	assistance for the projects is secured by a common
    	pledge.
	"(13) PROJECT OBLIGATION. - The term 'project obligation'
means any note, bond, debenture, or other debt obligation
issued by an obligor in connection with the financing of a
project, other than a Federal credit instrument.
	"(14) RATING AGENCY. - The term 'rating agency' means a
credit rating agency registered with the Securities and Exchange
Commission as a nationally recognized statistical rating
organization (as that term is defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a))).
	"(15) RURAL INFRASTRUCTURE PROJECT. - The term 'rural
infrastructure project' means a surface transportation infrastructure
project located in any area other than a city with a
population of more than 250,000 inhabitants within the city
limits.
	"(16) SECURED LOAN. - The term 'secured loan' means a direct
loan or other debt obligation issued by an obligor and

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funded by the Secretary in connection with the financing of a
project under section 603.
	"(17) STATE. - The term 'State' has the meaning given the
term in section 101.
	"(18) SUBSIDY AMOUNT. - The term 'subsidy amount' means
the amount of budget authority sufficient to cover the estimated
long-term cost to the Federal Government of a Federal credit instrument - 
    "(A) calculated on a net present value basis; and
    "(B) excluding administrative costs and any incidental
	effects on governmental receipts or outlays in accordance
	with the Federal Credit Reform Act of 1990 (2 U.S.C. 661
	et seq.).
	"(19) SUBSTANTIAL COMPLETION. - The term 'substantial
completion' means - 
    "(A) the opening of a project to vehicular or passenger
	traffic; or
    "(B) a comparable event, as determined by the Secretary
	and specified in the credit agreement.
	"(20) TIFIA PROGRAM. - The term 'TIFIA program' means
the transportation infrastructure finance and innovation program
of the Department.
    "(b) TREATMENT OF CHAPTER. - For purposes of this title, this
chapter shall be treated as being part of chapter 1.

 "§ 602. Determination of eligibility and project selection
	"(a) ELIGIBILITY. - 
    "(1) IN GENERAL. - A project shall be eligible to receive credit
	assistance under this chapter if - 
    	"(A) the entity proposing to carry out the project submits
    a letter of interest prior to submission of a formal application
    for the project; and
    	"(B) the project meets the criteria described in this subsection.
    "(2) CREDITWORTHINESS. - 
    	"(A) IN GENERAL. - To be eligible for assistance under
    this chapter, a project shall satisfy applicable creditworthiness
    standards, which, at a minimum, shall include - 
        "(i) a rate covenant, if applicable;
        "(ii) adequate coverage requirements to ensure repayment;
        "(iii) an investment grade rating from at least 2
    	rating agencies on debt senior to the Federal credit instrument;
    	and
        "(iv) a rating from at least 2 rating agencies on the
    	Federal credit instrument, subject to the condition that,
    	with respect to clause (iii), if the total amount of the
    	senior debt and the Federal credit instrument is less
    	than $75,000,000, 1 rating agency opinion for each of
    	the senior debt and Federal credit instrument shall be
    	sufficient.
    	"(B) SENIOR DEBT. - Notwithstanding subparagraph
    (A), in a case in which the Federal credit instrument is the
	senior debt, the Federal credit instrument shall be required
	to receive an investment grade rating from at least 2 rating

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	agencies, unless the credit instrument is for an amount less
	than $75,000,000, in which case 1 rating agency opinion
	shall be sufficient.
    "(3) INCLUSION IN TRANSPORTATION PLANS AND PROGRAMS. - 
	A project shall satisfy the applicable planning and
	programming requirements of sections 134 and 135 at such
	time as an agreement to make available a Federal credit instrument
	is entered into under this chapter.
    "(4) APPLICATION. - A State, local government, public authority,	
	public-private partnership, or any other legal entity undertaking
	the project and authorized by the Secretary shall submit
	a project application that is acceptable to the Secretary.
    "(5) ELIGIBLE PROJECT COSTS. - 
    	"(A) IN GENERAL. - Except as provided in subparagraph
    	(B), to be eligible for assistance under this chapter, a
    project shall have eligible project costs that are reasonably
    anticipated to equal or exceed the lesser of - 
        "(i)(I) $50,000,000; or
        "(II) in the case of a rural infrastructure project,
    	$25,000,000; and
        "(ii) 331⁄3 percent of the amount of Federal highway
    	assistance funds apportioned for the most recently
    	completed fiscal year to the State in which the project
    	is located.
    	"(B) INTELLIGENT TRANSPORTATION SYSTEM
    PROJECTS. - In the case of a project principally involving
    the installation of an intelligent transportation system, eligible
    project costs shall be reasonably anticipated to equal
    or exceed $15,000,000.
    "(6) DEDICATED REVENUE SOURCES. - The applicable Federal
	credit instrument shall be repayable, in whole or in part,
	from - 
    	"(A) tolls;
    	"(B) user fees;
    	"(C) payments owing to the obligor under a public-private
    partnership; or
    	"(D) other dedicated revenue sources that also secure or
    fund the project obligations.
    "(7) PUBLIC SPONSORSHIP OF PRIVATE ENTITIES. - In the
	case of a project that is undertaken by an entity that is not a
	State or local government or an agency or instrumentality of a
	State or local government, the project that the entity is undertaking
	shall be publicly sponsored as provided in paragraph
	(3).
    "(8) APPLICATIONS WHERE OBLIGOR WILL BE IDENTIFIED
	LATER. - A State, local government, agency or instrumentality of
	a State or local government, or public authority may submit to
	the Secretary an application under paragraph (4), under which
	a private party to a public-private partnership will be - 
    	"(A) the obligor; and
    	"(B) identified later through completion of a procurement
    and selection of the private party.
    "(9) BENEFICIAL EFFECTS. - The Secretary shall determine
	that financial assistance for the project under this chapter
	will - 

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    	"(A) foster, if appropriate, partnerships that attract
    public and private investment for the project;
    	"(B) enable the project to proceed at an earlier date
    than the project would otherwise be able to proceed or reduce
    the lifecycle costs (including debt service costs) of the
    project; and
    	"(C) reduce the contribution of Federal grant assistance
    for the project.
    "(10) PROJECT READINESS. - To be eligible for assistance
	under this chapter, the applicant shall demonstrate a reasonable
	expectation that the contracting process for construction of
	the project can commence by not later than 90 days after the
	date on which a Federal credit instrument is obligated for the
	project under this chapter.
	"(b) SELECTION AMONG ELIGIBLE PROJECTS. - 
    "(1) ESTABLISHMENT. - The Secretary shall establish a rolling
	application process under which projects that are eligible to
	receive credit assistance under subsection (a) shall receive credit
	assistance on terms acceptable to the Secretary, if adequate
	funds are available to cover the subsidy costs associated with
	the Federal credit instrument.
    "(2) ADEQUATE FUNDING NOT AVAILABLE. - If the Secretary
	fully obligates funding to eligible projects in a fiscal year, and
	adequate funding is not available to fund a credit instrument,
	a project sponsor of an eligible project may elect to enter into
	a master credit agreement and wait until the earlier of - 
    	"(A) the following fiscal year; and
    	"(B) the fiscal year during which additional funds are
    available to receive credit assistance.
    "(3) PRELIMINARY RATING OPINION LETTER. - The Secretary
	shall require each project applicant to provide a preliminary
	rating opinion letter from at least 1 rating agency - 
    	"(A) indicating that the senior obligations of the
    project, which may be the Federal credit instrument, have
    the potential to achieve an investment-grade rating; and
    	"(B) including a preliminary rating opinion on the Federal
    credit instrument.
    "(c) FEDERAL REQUIREMENTS. - 
    	"(1) IN GENERAL. - In addition to the requirements of this
        title for highway projects, the requirements of chapter 53 of title
        49 for transit projects, and the requirements of section 5333(a)
        of title 49 for rail projects, the following provisions of law shall
        apply to funds made available under this chapter and projects
        assisted with those funds:
        "(A) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
    	2000d et seq.).
        "(B) The National Environmental Policy Act of 1969
    	(42 U.S.C. 4321 et seq.).
        "(C) The Uniform Relocation Assistance and Real Property
    	Acquisition Policies Act of 1970 (42 U.S.C. 4601 et
    	seq.).
    	"(2) NEPA. - No funding shall be obligated for a project
    	that has not received an environmental categorical exclusion, a
    	finding of no significant impact, or a record of decision under

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    	the National Environmental Policy Act of 1969 (42 U.S.C. 4321
    	et seq.).
    "(d) APPLICATION PROCESSING PROCEDURES. - 
    	"(1) NOTICE OF COMPLETE APPLICATION. - Not later than 30
    days after the date of receipt of an application under this section,
    the Secretary shall provide to the applicant a written notice
    to inform the applicant whether - 
        "(A) the application is complete; or
        "(B) additional information or materials are needed to
    	complete the application.
    	"(2) APPROVAL OR DENIAL OF APPLICATION. - Not later than
    60 days after the date of issuance of the written notice under
    paragraph (1), the Secretary shall provide to the applicant a
    written notice informing the applicant whether the Secretary
    has approved or disapproved the application.
    "(e) DEVELOPMENT PHASE ACTIVITIES. - Any credit instrument
	secured under this chapter may be used to finance up to 100 percent
	of the cost of development phase activities as described in section
	601(a)(1)(A).

 "§ 603. Secured loans
    "(a) IN GENERAL. - 
    	"(1) AGREEMENTS. - Subject to paragraphs (2) and (3), the
    Secretary may enter into agreements with 1 or more obligors to
    make secured loans, the proceeds of which shall be used - 
        "(A) to finance eligible project costs of any project selected
    	under section 602;
        "(B) to refinance interim construction financing of eligible
    	project costs of any project selected under section 602;
        "(C) to refinance existing Federal credit instruments for
    	rural infrastructure projects; or
        "(D) to refinance long-term project obligations or Federal
    	credit instruments, if the refinancing provides additional
    	funding capacity for the completion, enhancement, or
    	expansion of any project that - 
      "(i) is selected under section 602; or
      "(ii) otherwise meets the requirements of section
        602.
    	"(2) LIMITATION ON REFINANCING OF INTERIM CONSTRUCTION
    FINANCING. - A loan under paragraph (1) shall not refinance
    interim construction financing under paragraph (1)(B)
    later than 1 year after the date of substantial completion of the
    project.
    	"(3) RISK ASSESSMENT. - Before entering into an agreement
    under this subsection, the Secretary, in consultation with the
    Director of the Office of Management and Budget, shall determine
    an appropriate capital reserve subsidy amount for each secured
    loan, taking into account each rating letter provided by
    an agency under section 602(b)(3)(B).
    "(b) TERMS AND LIMITATIONS. - 
    	"(1) IN GENERAL. - A secured loan under this section with
    respect to a project shall be on such terms and conditions and
    contain such covenants, representations, warranties, and requirements
    (including requirements for audits) as the Secretary
    determines to be appropriate.

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    	"(2) MAXIMUM AMOUNT. - The amount of a secured loan
    under this section shall not exceed the lesser of 49 percent of the
    reasonably anticipated eligible project costs or if the secured
    loan does not receive an investment grade rating, the amount
    of the senior project obligations.
    	"(3) PAYMENT. - A secured loan under this section - 
        "(A) shall - 
      "(i) be payable, in whole or in part, from - 
            "(I) tolls;
            "(II) user fees;
            "(III) payments owing to the obligor under a
      public-private partnership; or
            "(IV) other dedicated revenue sources that also
      secure the senior project obligations; and
      "(ii) include a rate covenant, coverage requirement,
        or similar security feature supporting the project obligations;
        and
        "(B) may have a lien on revenues described in subparagraph
    (A), subject to any lien securing project obligations.
	"(4) INTEREST RATE. - 
    	"(A) IN GENERAL. - Except as provided in subparagraphs
    	(B) and (C), the interest rate on a secured loan
    	under this section shall be not less than the yield on United
    	States Treasury securities of a similar maturity to the maturity
    	of the secured loan on the date of execution of the
    	loan agreement.
    	"(B) RURAL INFRASTRUCTURE PROJECTS. - 
        "(i) IN GENERAL. - The interest rate of a loan offered
    	to a rural infrastructure project under this chapter
    	shall be at 1⁄2 of the Treasury Rate in effect on the
    	date of execution of the loan agreement.
        "(ii) APPLICATION. - The rate described in clause (i)
    	shall only apply to any portion of a loan the subsidy
    	cost of which is funded by amounts set aside for rural
    	infrastructure projects under section 608(a)(3)(A).
    "(C) LIMITED BUYDOWNS. - The interest rate of a secured	
	loan under this section may not be lowered by more
	than the lower of - 
    "(i) 11⁄2 percentage points (150 basis points); or
    "(ii) the amount of the increase in the interest rate.
	"(5) MATURITY DATE. - The final maturity date of the secured
	loan shall be the lesser of - 
    	"(A) 35 years after the date of substantial completion of
    the project; and
    	"(B) if the useful life of the capital asset being financed
    is of a lesser period, the useful life of the asset.
    "(6) NONSUBORDINATION. - 
    	"(A) IN GENERAL. - Except as provided in subparagraph
    (B), the secured loan shall not be subordinated to the
claims of any holder of project obligations in the event of
bankruptcy, insolvency, or liquidation of the obligor.
    	"(B) PREEXISTING INDENTURE. - 
        "(i) IN GENERAL. - The Secretary shall waive the requirement
    	under subparagraph (A) for a public agency
    	borrower that is financing ongoing capital programs

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    	and has outstanding senior bonds under a preexisting
    	indenture, if - 
      "(I) the secured loan is rated in the A category
        or higher;
      "(II) the secured loan is secured and payable
        from pledged revenues not affected by project performance,
        such as a tax-backed revenue pledge or
        a system-backed pledge of project revenues; and
      "(III) the TIFIA program share of eligible
        project costs is 33 percent or less.
        "(ii) LIMITATION. - If the Secretary waives the nonsubordination
    	requirement under this subparagraph - 
      "(I) the maximum credit subsidy to be paid by
        the Federal Government shall be not more than 10
        percent of the principal amount of the secured
        loan; and
      "(II) the obligor shall be responsible for paying
        the remainder of the subsidy cost, if any.
	"(7) FEES. - The Secretary may establish fees at a level sufficient
to cover all or a portion of the costs to the Federal Government
of making a secured loan under this section.
	"(8) NON-FEDERAL SHARE. - The proceeds of a secured loan
under this chapter may be used for any non-Federal share of
project costs required under this title or chapter 53 of title 49,
if the loan is repayable from non-Federal funds.
	"(9) MAXIMUM FEDERAL INVOLVEMENT. - The total Federal
assistance provided on a project receiving a loan under this
chapter shall not exceed 80 percent of the total project cost.
	"(c) REPAYMENT. - 
	"(1) SCHEDULE. - The Secretary shall establish a repayment
schedule for each secured loan under this section based on - 
    "(A) the projected cash flow from project revenues and
	other repayment sources; and
    "(B) the useful life of the project.
	"(2) COMMENCEMENT. - Scheduled loan repayments of principal
	or interest on a secured loan under this section shall commence
	not later than 5 years after the date of substantial completion
	of the project.
	"(3) DEFERRED PAYMENTS. - 
    "(A) IN GENERAL. - If, at any time after the date of substantial
	completion of the project, the project is unable to
	generate sufficient revenues to pay the scheduled loan repayments
	of principal and interest on the secured loan, the
	Secretary may, subject to subparagraph (C), allow the obligor
	to add unpaid principal and interest to the outstanding
	balance of the secured loan.
    	"(B) INTEREST. - Any payment deferred under subparagraph
    (A) shall - 
        "(i) continue to accrue interest in accordance with
    	subsection (b)(4) until fully repaid; and
        "(ii) be scheduled to be amortized over the remaining
    	term of the loan.
    	"(C) CRITERIA. - 

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        "(i) IN GENERAL. - Any payment deferral under
    	subparagraph (A) shall be contingent on the project
    	meeting criteria established by the Secretary.
        "(ii) REPAYMENT STANDARDS. - The criteria established
    	pursuant to clause (i) shall include standards
    	for reasonable assurance of repayment.
	"(4) PREPAYMENT. - 
    "(A) USE OF EXCESS REVENUES. - Any excess revenues
	that remain after satisfying scheduled debt service requirements
	on the project obligations and secured loan and all
	deposit requirements under the terms of any trust agreement,
	bond resolution, or similar agreement securing
	project obligations may be applied annually to prepay the
	secured loan without penalty.
    "(B) USE OF PROCEEDS OF REFINANCING. - The secured
	loan may be prepaid at any time without penalty from the
	proceeds of refinancing from non-Federal funding sources.
	"(d) SALE OF SECURED LOANS. - 
    "(1) IN GENERAL. - Subject to paragraph (2), as soon as
	practicable after substantial completion of a project and after
	notifying the obligor, the Secretary may sell to another entity or
	reoffer into the capital markets a secured loan for the project if
	the Secretary determines that the sale or reoffering can be made
	on favorable terms.
    "(2) CONSENT OF OBLIGOR. - In making a sale or reoffering
	under paragraph (1), the Secretary may not change the original
	terms and conditions of the secured loan without the written
	consent of the obligor.
	"(e) LOAN GUARANTEES. - 
    "(1) IN GENERAL. - The Secretary may provide a loan guarantee
	to a lender in lieu of making a secured loan under this
	section if the Secretary determines that the budgetary cost of the
	loan guarantee is substantially the same as that of a secured
	loan.
    "(2) TERMS. - The terms of a loan guarantee under paragraph
	(1) shall be consistent with the terms required under this
	section for a secured loan, except that the rate on the guaranteed	
	loan and any prepayment features shall be negotiated between
	the obligor and the lender, with the consent of the Secretary.

 "§ 604. Lines of credit
	"(a) IN GENERAL. - 
    "(1) AGREEMENTS. - Subject to paragraphs (2) through (4),
	the Secretary may enter into agreements to make available to
	1 or more obligors lines of credit in the form of direct loans to
	be made by the Secretary at future dates on the occurrence of
	certain events for any project selected under section 602.
    "(2) USE OF PROCEEDS. - The proceeds of a line of credit
	made available under this section shall be available to pay debt
	service on project obligations issued to finance eligible project
	costs, extraordinary repair and replacement costs, operation
	and maintenance expenses, and costs associated with unexpected
	Federal or State environmental restrictions.

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    "(3) RISK ASSESSMENT. - Before entering into an agreement
	under this subsection, the Secretary, in consultation with the
	Director of the Office of Management and Budget and each rating
	agency providing a preliminary rating opinion letter under
	section 602(b)(3), shall determine an appropriate capital reserve
	subsidy amount for each line of credit, taking into account the
	rating opinion letter.
    "(4) INVESTMENT-GRADE RATING REQUIREMENT. - The funding
	of a line of credit under this section shall be contingent on
	the senior obligations of the project receiving an investment grade
	rating from 2 rating agencies.
	"(b) TERMS AND LIMITATIONS. - 
    "(1) IN GENERAL. - A line of credit under this section with
	respect to a project shall be on such terms and conditions and
	contain such covenants, representations, warranties, and requirements
	(including requirements for audits) as the Secretary
	determines to be appropriate.
    "(2) MAXIMUM AMOUNTS. - The total amount of a line of
	credit under this section shall not exceed 33 percent of the reasonably
	anticipated eligible project costs.
    "(3) DRAWS. - Any draw on a line of credit under this section
	shall - 
    	"(A) represent a direct loan; and
    	"(B) be made only if net revenues from the project (including
    capitalized interest, but not including reasonably
    required financing reserves) are insufficient to pay the costs
    specified in subsection (a)(2).
    	"(4) INTEREST RATE. - Except as provided in subparagraphs
    (B) and (C) of section 603(b)(4), the interest rate on a direct
    loan resulting from a draw on the line of credit shall be not less
    than the yield on 30-year United States Treasury securities, as
    of the date of execution of the line of credit agreement.
    	"(5) SECURITY. - A line of credit issued under this section - 
        "(A) shall - 
      "(i) be payable, in whole or in part, from - 
            "(I) tolls;
            "(II) user fees;
            "(III) payments owing to the obligor under a
      public-private partnership; or
            "(IV) other dedicated revenue sources that also
        secure the senior project obligations; and
      "(ii) include a rate covenant, coverage requirement,
        or similar security feature supporting the project obligations;
        and
        "(B) may have a lien on revenues described in subparagraph
    	(A), subject to any lien securing project obligations.
    	"(6) PERIOD OF AVAILABILITY. - The full amount of a line of
    	credit under this section, to the extent not drawn upon, shall be
    	available during the 10-year period beginning on the date of
    	substantial completion of the project.
    	"(7) RIGHTS OF THIRD-PARTY CREDITORS. - 
        "(A) AGAINST FEDERAL GOVERNMENT. - A third-party
    	creditor of the obligor shall not have any right against the
    	Federal Government with respect to any draw on a line of
    	credit under this section.

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        "(B) ASSIGNMENT. - An obligor may assign a line of
    	credit under this section to - 
      "(i) 1 or more lenders; or
      "(ii) a trustee on the behalf of such a lender.
    	"(8) NONSUBORDINATION. - 
      "(A) IN GENERAL. - Except as provided in subparagraph
        (B), a direct loan under this section shall not be subordinated
        to the claims of any holder of project obligations in
        the event of bankruptcy, insolvency, or liquidation of the
        obligor.
      "(B) PRE-EXISTING INDENTURE. - 
            "(i) IN GENERAL. - The Secretary shall waive the requirement
      of subparagraph (A) for a public agency borrower
      that is financing ongoing capital programs and
      has outstanding senior bonds under a preexisting indenture,
      if - 
          "(I) the line of credit is rated in the A category
            or higher;
          "(II) the TIFIA program loan resulting from a
            draw on the line of credit is payable from pledged
            revenues not affected by project performance, such
            as a tax-backed revenue pledge or a system-backed
            pledge of project revenues; and
          "(III) the TIFIA program share of eligible
            project costs is 33 percent or less.
            "(ii) LIMITATION. - If the Secretary waives the nonsubordination
      requirement under this subparagraph - 
          "(I) the maximum credit subsidy to be paid by
      the Federal Government shall be not more than 10
      percent of the principal amount of the secured
      loan; and
          "(II) the obligor shall be responsible for paying
      the remainder of the subsidy cost.
    	"(9) FEES. - The Secretary may establish fees at a level sufficient
    to cover all or a portion of the costs to the Federal Government
    of providing a line of credit under this section.
    	"(10) RELATIONSHIP TO OTHER CREDIT INSTRUMENTS. - A
    project that receives a line of credit under this section also shall
    not receive a secured loan or loan guarantee under section 603
    in an amount that, combined with the amount of the line of
    credit, exceeds 49 percent of eligible project costs.
    "(c) REPAYMENT. - 
    	"(1) TERMS AND CONDITIONS. - The Secretary shall establish
    repayment terms and conditions for each direct loan under this
    section based on - 
        "(A) the projected cash flow from project revenues and
    	other repayment sources; and
        "(B) the useful life of the asset being financed.
    	"(2) TIMING. - All repayments of principal or interest on a
    direct loan under this section shall be scheduled - 
        "(A) to commence not later than 5 years after the end
    	of the period of availability specified in subsection (b)(6);
    	and

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        "(B) to conclude, with full repayment of principal and
    	interest, by the date that is 25 years after the end of the period
    	of availability specified in subsection (b)(6).

 "§ 605. Program administration
	"(a) REQUIREMENT. - The Secretary shall establish a uniform
system to service the Federal credit instruments made available
under this chapter.
	"(b) FEES. - The Secretary may collect and spend fees, contingent
on authority being provided in appropriations Acts, at a level
that is sufficient to cover - 
    	"(1) the costs of services of expert firms retained pursuant
    to subsection (d); and
    	"(2) all or a portion of the costs to the Federal Government
    of servicing the Federal credit instruments.
	"(c) SERVICER. - 
    	"(1) IN GENERAL. - The Secretary may appoint a financial
    entity to assist the Secretary in servicing the Federal credit instruments.
    	"(2) DUTIES. - A servicer appointed under paragraph (1)
    shall act as the agent for the Secretary.
    	"(3) FEE. - A servicer appointed under paragraph (1) shall
    receive a servicing fee, subject to approval by the Secretary.
	"(d) ASSISTANCE FROM EXPERT FIRMS. - The Secretary may retain
the services of expert firms, including counsel, in the field of
municipal and project finance to assist in the underwriting and
servicing of Federal credit instruments.
	"(e) EXPEDITED PROCESSING. - The Secretary shall implement
procedures and measures to economize the time and cost involved
in obtaining approval and the issuance of credit assistance under
this chapter.

 "§ 606. State and local permits
	"The provision of credit assistance under this chapter with respect
to a project shall not - 
    "(1) relieve any recipient of the assistance of any obligation
	to obtain any required State or local permit or approval with
	respect to the project;
    "(2) limit the right of any unit of State or local government
	to approve or regulate any rate of return on private equity invested
	in the project; or
    "(3) otherwise supersede any State or local law (including
	any regulation) applicable to the construction or operation of
	the project.

 "§ 607. Regulations
	"The Secretary may promulgate such regulations as the Secretary
determines to be appropriate to carry out this chapter.

 "§ 608. Funding
	"(a) FUNDING. - 
    "(1) SPENDING AND BORROWING AUTHORITY. - Spending and
	borrowing authority for a fiscal year to enter into Federal credit
	instruments shall be promptly apportioned to the Secretary on
	a fiscal-year basis.

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    "(2) REESTIMATES. - If the subsidy cost of a Federal credit
	instrument is reestimated, the cost increase or decrease of the
	reestimate shall be borne by, or benefit, the general fund of the
	Treasury, consistent with section 504(f) the Congressional
	Budget Act of 1974 (2 U.S.C. 661c(f)).
    "(3) RURAL SET-ASIDE. - 
    	"(A) IN GENERAL. - Of the total amount of funds made
    available to carry out this chapter for each fiscal year, not
    more than 10 percent shall be set aside for rural infrastructure
    projects.
    	"(B) REOBLIGATION. - Any amounts set aside under
    subparagraph (A) that remain unobligated by June 1 of the
    fiscal year for which the amounts were set aside shall be
    available for obligation by the Secretary on projects other
    than rural infrastructure projects.
    	"(4) REDISTRIBUTION OF AUTHORIZED FUNDING. - 
        "(A) IN GENERAL. - Beginning in fiscal year 2014, on
    	April 1 of each fiscal year, if the cumulative unobligated
    	and uncommitted balance of funding available exceeds 75
    	percent of the amount made available to carry out this
    	chapter for that fiscal year, the Secretary shall distribute to
    	the States the amount of funds and associated obligation
    	authority in excess of that amount.
        "(B) DISTRIBUTION. - The amounts and obligation authority
    	distributed under this paragraph shall be distributed,
    	in the same manner as obligation authority is distributed
    	to the States for the fiscal year, based on the proportion
    	that - 
      "(i) the relative share of each State of obligation
        authority for the fiscal year; bears to
      "(ii) the total amount of obligation authority distributed
        to all States for the fiscal year.
        "(C) PURPOSE. - Funds distributed under subparagraph
    	(B) shall be available for any purpose described in
    	section 133(b).
    "(5) AVAILABILITY. - Amounts made available to carry out
	this chapter shall remain available until expended.
    "(6) ADMINISTRATIVE COSTS. - Of the amounts made available
	to carry out this chapter, the Secretary may use not more
	than 0.50 percent for each fiscal year for the administration of
	this chapter.
    	"(b) CONTRACT AUTHORITY. - 
        "(1) IN GENERAL. - Notwithstanding any other provision of
    	law, execution of a term sheet by the Secretary of a Federal
    	credit instrument that uses amounts made available under this
    	chapter shall impose on the United States a contractual obligation
    	to fund the Federal credit investment.
        "(2) AVAILABILITY. - Amounts made available to carry out
    	this chapter for a fiscal year shall be available for obligation
    	on October 1 of the fiscal year.

"§ 609. Reports to Congress
	"(a) IN GENERAL. - On June 1, 2012, and every 2 years thereafter,
the Secretary shall submit to Congress a report summarizing
the financial performance of the projects that are receiving, or have

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received, assistance under this chapter (other than section 610), including
a recommendation as to whether the objectives of this chapter
(other than section 610) are best served by - 
    "(1) continuing the program under the authority of the Secretary;
    "(2) establishing a Federal corporation or federally sponsored
	enterprise to administer the program; or
    "(3) phasing out the program and relying on the capital
	markets to fund the types of infrastructure investments assisted
	by this chapter (other than section 610) without Federal participation.
    	"(b) APPLICATION PROCESS REPORT. - 
        "(1) IN GENERAL. - Not later than December 1, 2012, and
    	annually thereafter, the Secretary shall submit to the Committee
    	on Transportation and Infrastructure of the House of
    	Representatives and the Committee on Environment and Public
    	Works of the Senate a report that includes a list of all of the
    	letters of interest and applications received from project sponsors
    	for assistance under this chapter (other than section 610)
    	during the preceding fiscal year.
        "(2) INCLUSIONS. - 
      "(A) IN GENERAL. - Each report under paragraph (1)
        shall include, at a minimum, a description of, with respect
        to each letter of interest and application included in the report - 
            "(i) the date on which the letter of interest or application
      was received;
            "(ii) the date on which a notification was provided
      to the project sponsor regarding whether the application
      was complete or incomplete;
            "(iii) the date on which a revised and completed
      application was submitted (if applicable);
            "(iv) the date on which a notification was provided
      to the project sponsor regarding whether the project
      was approved or disapproved; and
            "(v) if the project was not approved, the reason for
      the disapproval.
        "(B) CORRESPONDENCE. - Each report under paragraph
      (1) shall include copies of any correspondence provided to
        the project sponsor in accordance with section 602(d).".

 DIVISION B - PUBLIC TRANSPORTATION SEC. 20001. SHORT TITLE.
	This division may be cited as the "Federal Public Transportation
Act of 2012".

 SEC. 20002. REPEALS.
	(a) CHAPTER 53. - Chapter 53 of title 49, United States Code, is
amended by striking sections 5308, 5316, 5317, 5320, and 5328.
	(b) TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY. - 
Section 3038 of the Transportation Equity Act for the 21st Century
(49 U.S.C. 5310 note) is repealed.
	(c) SAFETEA - LU. - The following provisions are repealed:

599

tegic Plan, encourages state freight plans and advisory committees,
and provides incentives for states that fund projects to improve
freight movement.

 America fast forward

	Given our massive investment needs and the limited funding
available, we need to find ways to better leverage Federal dollars
by encouraging additional non-Federal investment and helping to
accelerate the benefits of State and locally funded transportation
projects.
	This conference report builds upon the success of the TIFIA
program to help communities leverage their transportation resources
and stretch Federal dollars further than they have been
stretched before. The conference report modifies the TIFIA program
by increasing funding for the program to $1 billion per year, by increasing
the maximum share of project costs from 33 percent to 49
percent, by allowing TIFIA to be used to support a related set of
projects, and by setting aside funding for projects in rural areas at
more favorable terms.
 Gulf Coast restoration

	The conference report modifies a Senate provision related to
Gulf Coast restoration known as the Resources and Ecosystems
Sustainability, Tourism Opportunities and Revived Economies of
the Gulf Coast States Act of 2012 (RESTORE Act). The provision
establishes the Gulf Coast Restoration Trust Fund and places in
the Trust Fund 80% of all civil penalties paid by responsible parties
in connection with the Deepwater Horizon oil spill. Funding
may be used to invest in projects and activities to restore the longterm
health of the coastal ecosystem and local economies in the
Gulf Coast Region, which includes the states of Mississippi, Louisiana,
Alabama, Florida, and Texas. A portion of the funds will be
allocated directly and equally to the five Gulf Coast states for ecological
and economic recovery along the coast. A portion will be provided
to the Gulf Coast Ecosystem Restoration Council established
by the bill to develop and fund a comprehensive plan for the restoration
of Gulf Coast ecosystems. A portion will be allocated
among the states using an impact-based formula to implement
state plans that have been approved by the Council. Finally, a portion
of the fines will be allocated to a Gulf Coast ecosystem restoration,
science, observation, monitoring and technology program and
for grants to nongovernmental entities for the establishment of
Gulf Coast centers of excellence.
 Harbor maintenance

	The Conference report modifies a Senate provision highlighting
the significance of the nation's ports for efficient movement of
goods and products and the need for increased investment in the
maintenance of these ports to promote the economic competitiveness
of the United States. The provision states the Sense of Congress
that the Administration should request and the Congress should
fully expend each year all of the revenues collected in the Harbor
Maintenance Trust Fund (HMTF) for the operation and maintenance
of the nation's federally maintained ports. The provision also
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