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Legislation & Regulations

TEA-21 Transportation Infrastructure Finance and Innovation Act (TIFIA)

Published: June 9, 1998

SEC. 1501. SHORT TITLE. <note: 23 USC 101 note.> 

    This chapter may be cited as the ``Transportation Infrastructure 
Finance and Innovation Act of 1998''.

SEC. 1502. FINDINGS. <note: 23 USC 181 note.> 

    Congress finds that--
            (1) a well-developed system of transportation infrastructure 
        is critical to the economic well-being, health, and welfare of 
        the people of the United States;
            (2) traditional public funding techniques such as grant 
        programs are unable to keep pace with the infrastructure 
        investment needs of the United States because of budgetary 
        constraints at the Federal, State, and local levels of 
        government;
            (3) major transportation infrastructure facilities that 
        address critical national needs, such as intermodal facilities, 
        border crossings, and multistate trade corridors, are of a scale 
        that exceeds the capacity of Federal and State assistance 
        programs in effect on the date of enactment of this Act;
            (4) new investment capital can be attracted to 
        infrastructure projects that are capable of generating their own 
        revenue streams through user charges or other dedicated funding 
        sources; and
            (5) a Federal credit program for projects of national 
        significance can complement existing funding resources by 
        filling market gaps, thereby leveraging substantial private co-
        investment.

SEC. 1503. ESTABLISHMENT OF PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following:

                 ``SUBCHAPTER II--INFRASTRUCTURE FINANCE

``Sec. 181. Definitions

    ``In this subchapter, the following definitions apply:
            ``(1) 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 related to the project and improvements to land),

[[Page 112 STAT. 242]]

                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.
            ``(2) 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 subchapter 
        with respect to a project.
            ``(3) Investment-grade rating.--The term `investment-grade 
        rating' means a rating category of BBB minus, Baa3, or higher 
        assigned by a rating agency to project obligations offered into 
        the capital markets.
            ``(4) 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.
            ``(5) Line of credit.--The term `line of credit' means an 
        agreement entered into by the Secretary with an obligor under 
        section 184 to provide a direct loan at a future date upon the 
        occurrence of certain events.
            ``(6) 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.
            ``(7) Local servicer.--The term `local servicer' means--
                    ``(A) a State infrastructure bank established under 
                this title; or
                    ``(B) a State or local government or any agency of a 
                State or local government that is responsible for 
                servicing a Federal credit instrument on behalf of the 
                Secretary.
            ``(8) Obligor.--The term `obligor' means a party primarily 
        liable for payment of the principal of or interest on a Federal 
        credit instrument, which party may be a corporation, 
        partnership, joint venture, trust, or governmental entity, 
        agency, or instrumentality.
            ``(9) Project.--The term `project' means--
                    ``(A) any surface transportation project eligible 
                for Federal assistance under this title or chapter 53 of 
                title 49;
                    ``(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

[[Page 112 STAT. 243]]

                    ``(D) a project for publicly owned intermodal 
                surface freight transfer facilities, other than seaports 
                and airports, if the facilities are located on or 
                adjacent to National Highway System routes or 
                connections to the National Highway System.
            ``(10) 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.
            ``(11) Rating agency.--The term `rating agency' means a bond 
        rating agency identified by the Securities and Exchange 
        Commission as a Nationally Recognized Statistical Rating 
        Organization.
            ``(12) 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 183.
            ``(13) State.--The term `State' has the meaning given the 
        term in section 101.
            ``(14) 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, calculated on a net present value basis, excluding 
        administrative costs and any incidental effects on governmental 
        receipts or outlays in accordance with the provisions of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
            ``(15) Substantial completion.--The term `substantial 
        completion' means the opening of a project to vehicular or 
        passenger traffic.

``Sec. 182. Determination of eligibility and project selection

    ``(a) Eligibility.--To be eligible to receive financial assistance 
under this subchapter, a project shall meet the following criteria:
            ``(1) Inclusion in transportation plans and programs.--The 
        project--
                    ``(A) shall be included in the State transportation 
                plan required under section 135; and
                    ``(B) at such time as an agreement to make available 
                a Federal credit instrument is entered into under this 
                subchapter, shall be included in the approved State 
                transportation improvement program required under 
                section 134.
            ``(2) Application.--A State, a local servicer identified 
        under section 185(a), or the entity undertaking the project 
        shall submit a project application to the Secretary.
            ``(3) Eligible project costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible for assistance under 
                this subchapter, a project shall have eligible project 
                costs that are reasonably anticipated to equal or exceed 
                the lesser of--
                          ``(i) $100,000,000; or
                          ``(ii) 50 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

[[Page 112 STAT. 244]]

                of an intelligent transportation system, eligible 
                project costs shall be reasonably anticipated to equal 
                or exceed $30,000,000.
            ``(4) Dedicated revenue sources.--Project financing shall be 
        repayable, in whole or in part, from tolls, user fees, or other 
        dedicated revenue sources.
            ``(5) 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 paragraphs (1) and 
        (2).

    ``(b) Selection Among Eligible Projects.--
            ``(1) Establishment.--The Secretary shall establish criteria 
        for selecting among projects that meet the eligibility criteria 
        specified in subsection (a).
            ``(2) Selection criteria.--
                    ``(A) In general.--The selection criteria shall 
                include the following:
                          ``(i) The extent to which the project is 
                      nationally or regionally significant, in terms of 
                      generating economic benefits, supporting 
                      international commerce, or otherwise enhancing the 
                      national transportation system.
                          ``(ii) The creditworthiness of the project, 
                      including a determination by the Secretary that 
                      any financing for the project has appropriate 
                      security features, such as a rate covenant, to 
                      ensure repayment.
                          ``(iii) The extent to which assistance under 
                      this subchapter would foster innovative public-
                      private partnerships and attract private debt or 
                      equity investment.
                          ``(iv) The likelihood that assistance under 
                      this subchapter would enable the project to 
                      proceed at an earlier date than the project would 
                      otherwise be able to proceed.
                          ``(v) The extent to which the project uses new 
                      technologies, including intelligent transportation 
                      systems, that enhance the efficiency of the 
                      project.
                          ``(vi) The amount of budget authority required 
                      to fund the Federal credit instrument made 
                      available under this subchapter.
                          ``(vii) The extent to which the project helps 
                      maintain or protect the environment.
                          ``(viii) The extent to which assistance under 
                      this chapter would reduce the contribution of 
                      Federal grant assistance to the project.
                    ``(B) Preliminary rating opinion letter.--For 
                purposes of subparagraph (A)(ii), the Secretary shall 
                require each project applicant to provide a preliminary 
                rating opinion letter from at least 1 rating agency 
                indicating that the project's senior obligations have 
                the potential to achieve an investment-grade rating.

    ``(c) Federal Requirements.--In addition to the requirements of this 
title for highway projects, chapter 53 of title 49 for transit projects, 
and section 5333(a) of title 49 for rail projects, the following 
provisions of law shall apply to funds made available under this 
subchapter and projects assisted with the funds:

[[Page 112 STAT. 245]]

            ``(1) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
        2000d et seq.).
            ``(2) The National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.).
            ``(3) The Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

``Sec. 183. Secured loans

    ``(a) In General.--
            ``(1) Agreements.--Subject to paragraphs (2) through (4), 
        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; or
                    ``(B) to refinance interim construction financing of 
                eligible project costs;
        of any project selected under section 182.
            ``(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 and each rating 
        agency providing a preliminary rating opinion letter under 
        section 182(b)(2)(B), shall determine an appropriate capital 
        reserve subsidy amount for each secured loan, taking into 
        account such letter.
            ``(4) Investment-grade rating requirement.--The funding of a 
        secured loan under this section shall be contingent on the 
        project's senior obligations receiving an investment-grade 
        rating, except that--
                    ``(A) the Secretary may fund an amount of the 
                secured loan not to exceed the capital reserve subsidy 
                amount determined under paragraph (3) prior to the 
                obligations receiving an investment-grade rating; and
                    ``(B) the Secretary may fund the remaining portion 
                of the secured loan only after the obligations have 
                received an investment-grade rating by at least 1 rating 
                agency.

    ``(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 appropriate.
            ``(2) Maximum amount.--The amount of the secured loan shall 
        not exceed 33 percent of the reasonably anticipated eligible 
        project costs.
            ``(3) Payment.--The secured loan--
                    ``(A) shall--
                          ``(i) be payable, in whole or in part, from 
                      tolls, user fees, or other dedicated revenue 
                      sources; and
                          ``(ii) include a rate covenant, coverage 
                      requirement, or similar security feature 
                      supporting the project obligations; and

[[Page 112 STAT. 246]]

                    ``(B) may have a lien on revenues described in 
                subparagraph (A) subject to any lien securing project 
                obligations.
            ``(4) Interest rate.--The interest rate on the secured loan 
        shall be not less than the yield on marketable United States 
        Treasury securities of a similar maturity to the maturity of the 
        secured loan on the date of execution of the loan agreement.
            ``(5) Maturity date.--The final maturity date of the secured 
        loan shall be not later than 35 years after the date of 
        substantial completion of the project.
            ``(6) Nonsubordination.--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.
            ``(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 subchapter 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.

    ``(c) Repayment.--
            ``(1) Schedule.--The Secretary shall establish a repayment 
        schedule for each secured loan under this section based on the 
        projected cash flow from project revenues and other repayment 
        sources.
            ``(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) Sources of repayment funds.--The sources of funds for 
        scheduled loan repayments under this section shall include 
        tolls, user fees, or other dedicated revenue sources.
            ``(4) Deferred payments.--
                    ``(A) Authorization.--If, at any time during the 10 
                years 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 beginning not later 
                      than 10 years after the date of substantial 
                      completion of the project in accordance with 
                      paragraph (1).
                    ``(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 under clause (i) shall include 
                      standards for reasonable assurance of repayment.
            ``(5) Prepayment.--

[[Page 112 STAT. 247]]

                    ``(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 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 guaranteed loan shall be 
        consistent with the terms set forth in 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.

``Sec. 184. Lines of credit

    ``(a) In General.--
            ``(1) Agreements.--Subject to paragraphs (2) through (4), 
        the Secretary may enter into agreements to make available lines 
        of credit to 1 or more obligors 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 182.
            ``(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 182(b)(2)(B), shall determine an appropriate capital 
        reserve subsidy amount for each line of credit, taking into 
        account such letter.
            ``(4) Investment-grade rating requirement.--The funding of a 
        line of credit under this section shall be contingent

[[Page 112 STAT. 248]]

        on the project's senior obligations receiving an investment-
        grade rating from at least 1 rating agency.

    ``(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 appropriate.
            ``(2) Maximum amounts.--
                    ``(A) Total amount.--The total amount of the line of 
                credit shall not exceed 33 percent of the reasonably 
                anticipated eligible project costs.
                    ``(B) 1-year draws.--The amount drawn in any 1 year 
                shall not exceed 20 percent of the total amount of the 
                line of credit.
            ``(3) Draws.--Any draw on the line of credit shall represent 
        a direct loan and shall be made only if net revenues from the 
        project (including capitalized interest, any debt service 
        reserve fund, and any other available reserve) are insufficient 
        to pay the costs specified in subsection (a)(2).
            ``(4) Interest rate.--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 marketable United States Treasury 
        securities as of the date on which the line of credit is 
        obligated.
            ``(5) Security.--The line of credit--
                    ``(A) shall--
                          ``(i) be payable, in whole or in part, from 
                      tolls, user fees, or other dedicated revenue 
                      sources; 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 line of credit shall be 
        available during the period beginning on the date of substantial 
        completion of the project and ending not later than 10 years 
        after that date.
            ``(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 the 
                line of credit.
                    ``(B) Assignment.--An obligor may assign the line of 
                credit to 1 or more lenders or to a trustee on the 
                lenders' behalf.
            ``(8) Nonsubordination.--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.
            ``(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 183 of an 
        amount that, combined with the amount of the line of credit, 
        exceeds 33 percent of eligible project costs.

[[Page 112 STAT. 249]]

    ``(c) Repayment.--
            ``(1) Terms and conditions.--The Secretary shall establish 
        repayment terms and conditions for each direct loan under this 
        section based on the projected cash flow from project revenues 
        and other repayment sources.
            ``(2) Timing.--All scheduled repayments of principal or 
        interest on a direct loan under this section shall commence not 
        later than 5 years after the end of the period of availability 
        specified in subsection (b)(6) and be fully repaid, with 
        interest, by the date that is 25 years after the end of the 
        period of availability specified in subsection (b)(6).
            ``(3) Sources of repayment funds.--The sources of funds for 
        scheduled loan repayments under this section shall include 
        tolls, user fees, or other dedicated revenue sources.

``Sec. 185. Project servicing

    ``(a) Requirement.--The State in which a project that receives 
financial assistance under this subchapter is located may identify a 
local servicer to assist the Secretary in servicing the Federal credit 
instrument made available under this subchapter.
    ``(b) Agency; Fees.--If a State identifies a local servicer under 
subsection (a), the local servicer--
            ``(1) shall act as the agent for the Secretary; and
            ``(2) may receive a servicing fee, subject to approval by 
        the Secretary.

    ``(c) Liability.--A local servicer identified under subsection (a) 
shall not be liable for the obligations of the obligor to the Secretary 
or any lender.
    ``(d) Assistance From Expert Firms.--The Secretary may retain the 
services of expert firms in the field of municipal and project finance 
to assist in the underwriting and servicing of Federal credit 
instruments.

``Sec. 186. State and local permits

    ``The provision of financial assistance under this subchapter 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.

``Sec. 187. Regulations

    ``The Secretary may issue such regulations as the Secretary 
determines appropriate to carry out this subchapter.

``Sec. 188. Funding

    ``(a) Funding.--
            ``(1) In general.--There are authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) to carry out this subchapter--
                    ``(A) $80,000,000 for fiscal year 1999;
                    ``(B) $90,000,000 for fiscal year 2000;

[[Page 112 STAT. 250]]

                    ``(C) $110,000,000 for fiscal year 2001;
                    ``(D) $120,000,000 for fiscal year 2002; and
                    ``(E) $130,000,000 for fiscal year 2003.
            ``(2) Administrative costs.--From funds made available under 
        paragraph (1), the Secretary may use, for the administration of 
        this subchapter, not more than $2,000,000 for each of fiscal 
        years 1998 through 2003.
            ``(3) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.

    ``(b) Contract Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, approval by the Secretary of a Federal credit instrument 
        that uses funds made available under this subchapter shall be 
        deemed to be acceptance by the United States of a contractual 
        obligation to fund the Federal credit instrument.
            ``(2) Availability.--Amounts authorized under this section 
        for a fiscal year shall be available for obligation on October 1 
        of the fiscal year.

    ``(c) Limitations on Credit Amounts.--For each of fiscal years 1998 
through 2003, principal amounts of Federal credit instruments made 
available under this subchapter shall be limited to the amounts 
specified in the following table:

                                                          Maximum amount
``Fiscal year:                                                of credit:
  1998...................................................$1,200,000,000 
  1999...................................................$1,200,000,000 
  2000...................................................$1,800,000,000 
  2001...................................................$1,800,000,000 
  2002...................................................$2,300,000,000 
  2003...................................................$2,300,000,000.

``Sec. 189. Report to Congress

    ``Not later than 4 years after the date of enactment of this 
subchapter, the Secretary shall submit to Congress a report summarizing 
the financial performance of the projects that are receiving, or have 
received, assistance under this subchapter, including a recommendation 
as to whether the objectives of this subchapter are best served--
            ``(1) by continuing the program under the authority of the 
        Secretary;
            ``(2) by establishing a Government corporation or 
        Government-sponsored enterprise to administer the program; or
            ``(3) by phasing out the program and relying on the capital 
        markets to fund the types of infrastructure investments assisted 
        by this subchapter without Federal participation.''.

    (b) Conforming Amendments.--Chapter 1 of title 23, United States 
Code, is amended--
            (1) in the analysis--
                    (A) by inserting before ``Sec.'' the following:

                  ``SUBCHAPTER I--GENERAL PROVISIONS'';

                and
                    (B) by adding at the end the following:

                 ``SUBCHAPTER II--INFRASTRUCTURE FINANCE

``181. Definitions.
``182. Determination of eligibility and project selection.
``183. Secured loans.
``184. Lines of credit.
``185. Project servicing.

[[Page 112 STAT. 251]]

``186. State and local permits.
``187. Regulations.
``188. Funding.
``189. Report to Congress.'';

                and
            (2) by inserting before section 101 the following:

                  ``SUBCHAPTER I--GENERAL PROVISIONS''.

SEC. 1504. DUTIES OF THE SECRETARY.

    Section 301 of title 49, United States Code, is amended--
            (1) in paragraph (7) by striking ``and'' at the end;
            (2) in paragraph (8) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) develop and coordinate Federal policy on financing 
        transportation infrastructure, including the provision of direct 
        Federal credit assistance and other techniques used to leverage 
        Federal transportation funds.''.