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MAP-21 Legislation

      
                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.
                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
                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;
                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
                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
                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) INTELLIGENTTRANSPORTATION 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 under-taking
                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-
                   ''(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
                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.
                      ''(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 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.
                          ''(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 para-
                    graph (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. 
                          ''(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. 
                       ''(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 
                       ''(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. 
                          ''(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 
                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).''.