Technical Resources
Background Reference
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(Last Updated: April 2012)
TIFIA Credit Program Overview
Transportation Infrastructure Finance and Innovation Act (TIFIA)
Background on TIFIA
- Strategic goal - to leverage limited Federal resources and stimulate private capital investment in transportation infrastructure by providing credit assistance in the form of direct loans, loan guarantees, and standby lines of credit (rather than grants) to projects of national or regional significance.
- Key objectives
- Facilitate projects with significant public benefits
- Encourage new revenue streams and private participation
- Fill capital market gaps for secondary/subordinate capital
- Be a flexible, "patient" investor willing to take on investor concerns about investment horizon, liquidity, predictability and risk
- Limit Federal exposure by relying on market discipline
- Major requirements
- Large surface transportation projects ($50M generally, $15M for intelligent transportation systems - ITS)
- TIFIA contribution limited to 33 percent
- Senior debt must be rated investment grade
- Dedicated revenues for repayment
- Applicable Federal requirements, including but not limited to Civil Rights, NEPA, Uniform Relocation, Titles 23/49
- Public or private highway, transit, rail and port projects are eligible to apply for TIFIA assistance
- Application process - applicants must submit letters of interest and, after invitation from the TIFIA Joint Program Office (JPO), a formal application including financial plans and ratings, to DOT for consideration.
Eligible TIFIA Sponsors and Projects
| Sponsors |
Projects |
State Governments
Private Firms
Special Authorities
Local Governments
Transportation Improvement Districts |
Highways and Bridges
Intelligent Transportation Systems
Intermodal Connectors
Transit Vehicles and Facilities
Intercity Buses and Facilities
Freight Transfer Facilities
Passenger Rail Vehicles and Facilities |
Statutory Selection Criteria Weighting (percentage amounts)
| Private Participation |
20.0% |
| Environmental Impact |
20.0% |
| National or Regional Significance |
20.0% |
| Project Acceleration |
12.5% |
| Credit Worthiness |
12.5% |
| Use of New Technologies |
5.0% |
| Reduced Federal Grant Assistance |
5.0% |
| Consumption of Budget Authority |
5.0% |
Program Implementation: Selection & Funding of a TIFIA Project
- Applicant Submits
Letter of Interest to
the DOT by the NOFA Deadline
- Applicant Prepares and Submits Application to the DOT after Invitation from the TIFIA JPO
- DOT Staff Prepare Preliminary Evaluation and Arrange Presentation
- DOT Staff Prepare Final Evaluation and Make Recommendation to
DOT Credit Council
- DOT Credit Council Provides
Recommendations to the
Secretary, who Selects
Projects to Receive TIFIA
Credit Assistance
- The DOT Issues
Term Sheet and
Obligates Funds
- The DOT Executes
Credit Agreement and
Disburses Funds
TIFIA Documentation Requirements
- Letter of interest provided (Applications, Approvals, and Funding)
- Preliminary rating opinion letter obtained (Major Requirements)
- Draft EIS circulated (or Categorical Exclusion or FONSI obtained) (Major Requirements)
- Project consistent with state transportation plan and, if applicable, included in metropolitan transportation plan
- Application Submitted (Applications, Approvals, and Funding)
- ROD obtained (Major Requirements)
- Project Included in STIP (Major Requirements)
- Project selection made (Applications, Approvals, and Funding)
- Term sheet issued (Applications, Approvals, and Funding)
- Funding obligated (Applications, Approvals, and Funding)
- Investment-grade rating on senior debt submitted prior to anticipated closing date (Major Requirements)
- Credit agreement executed (Applications, Approvals, and Funding)
- Funds disbursed according to terms (Applications, Approvals, and Funding)
TIFIA Program Fees
- The TIFIA JPO will require each applicant to pay a non-refundable Application Fee of $50,000.
- Each borrower will be required to pay a Transaction Fee equal to the costs incurred by the TIFIA JPO in negotiating the credit agreement. This credit processing fee will typically range from $300,000- $500,000.
- Borrowers will be required to pay an $11,500 Loan Servicing Fee annually, due by November 15.
- Borrowers also will be required to pay a Monitoring Fee as defined in the credit agreement.
TIFIA Projects
TIFIA Projects & Project Profiles
TIFIA Portfolio
TIFIA Portfolio
TIFIA JPO Organizational Framework
A solid line connects the Secretary of Transportation
to the DOT Credit Council, which consists of:
- Deputy Secretary of Transportation (Chair)
- Assistant Secretary for Budget and Programs/CFO (Vice Chair)
- Under Secretary of Transportation For Policy
- General Counsel
- Assistant Secretary for Transportation Policy
- Director of OSDBU
- Federal Transit Administrator
- Federal Highway Administrator
- Federal Railroad Administrator
- Maritime Administrator
- 3 At-large Members
A solid line connects the DOT Credit Council to the Directory of the Office of Innovative Program Delivery, with another solid line connecting the Director of the Office of Innovative Program Delivery to the TIFIA Joint Program Office. A dotted line also connects the Assistant Secretary for Budget and Programs/CFO (Vice Chair) to the TIFIA Joint Program Office.
TIFIA Oversight: Credit Instrument Life Cycle
The TIFIA project life cycle has two distinct phases (design/construction and post construction/operations) with different potential risks. The frequency or intervals for performing various monitoring and oversight activities is determined by the Oversight Team and reflected in the oversight and monitoring plan.
During the Design/Construction phase, the following oversight and monitoring efforts occur:
- On-site inspections
- Periodic meetings
- Disbursement approvals
- Project acceptance
Following substantial completion, oversight and monitoring efforts in the operations/post-construction phase include the following:
- Performance reporting
- Revenue realization
- Change reporting
- Compliance with credit agreement
