,i #aacth ,,congress #b;d ,session ,h4 ,r4 #cigh ,,in ,,the ,,house ,,of ,,representatives ,january #bi1 #bjad,mr4 ,sires 7for himself1 ,mr4 ,carson of ,indiana1 ,ms4 ,ros-,lehtinen1 and ,mr4 ,diaz-,balart7 introduced the following bill2 which was referred to the ,committee on ,transportation and ,infrastructure ,a ,,bill ,to authorize the ,secretary of ,transportation to establish a pedestrian and bicycle infrastructure credit assistance pilot program1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,new ,opportunities for ,bicycle and ,pedestrian ,infrastructure ,financing ,act of #bjad4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,purposes4,sec4 #c4 ,authority to provide assistance4,sec4 #d4 ,eligible entities4,sec4 #e4 ,projects eligible for assistance4,sec4 #f4 ,applications4,sec4 #g4 ,determination of eligibility and project selection4,sec4 #h4 ,secured loans and loan guarantees4,sec4 #i4 ,program administration4,sec4 #aj4 ,state and local permits4,sec4 #aa4 ,definitions4,sec4 #ab4 ,regulations4,sec4 #ac4 ,funding4,sec4 #ad4 ,report to ,congress4 #b4 ,purposes ,the purposes of this ,act are as follows3 7#a7 ,to promote investment in bicycling and walking infrastructure to create and connect transportation networks4 7#b7 ,to improve access to employment1 business districts1 and transit in communities traditionally underserved by existing transportation systems by establishing additional opportunities for financing nonmotorized infrastructure projects4 7#c7 ,to attract new investment to business districts and neighborhoods in low-income communities4 7#d7 ,to leverage ,federal funds and private investment in low-income communities and those traditionally underserved by existing transportation systems4 #c4 ,authority to provide assistance ,the ,secretary of ,transportation may provide financial assistance under this ,act to eligible entities to carry out bicycle and pedestrian infrastructure projects selected for such assistance under this ,act4 #d4 ,eligible entities ,in this ,act1 the term eligible entity means the following3 7#a7 ,a corporation4 7#b7 ,a public_/private partnership4 7#c7 ,a joint venture4 7#d7 ,a trust4 7#e7 ,a ,state infrastructure financing authority4 #e4 ,projects eligible for assistance ,financial assistance may be provided under this ,act only for the following types of projects3 7#a7 ,a project for the construction1 planning1 and design of on-road and off-road pathways for pedestrians1 bicyclists1 and other nonmotorized forms of transportation to create a comprehensive and connected transportation system1 including sidewalks1 bicycling infrastructure and parking1 pedestrian and bicycle signals1 traffic calming techniques1 lighting and other safety-related infrastructure1 and transportation projects to achieve compliance with the ,american with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaja et seq474 7#b7 ,a project for the construction1 planning1 and design of infrastructure-related projects and systems that connect existing infrastructure to create a network and improve safety and access for nonmotorized users to transit1 schools1 and commercial areas4 7#c7 ,innovative infrastructure for bicycling and walking1 such as designs included in the ,national ,association of ,city ,transportation ,officials guide for urban street design1 to enhance the ability of communities to develop solutions to increase nonmotorized travel4 7#d7 ,a project for the conversion and use of abandoned railroad corridors for trails for pedestrians1 bicyclists1 or other nonmotorized transportation users to connect to or expand an existing network of bicycle and pedestrian facilities4 7#e7 ,a bike share program as a standalone project or in conjunction with other infrastructure projects4 #f4 ,applications 7a7 ,in general ,the ,secretary shall provide for eligible entities to submit applications for selection of eligible projects to receive financial assistance under this ,act at such time1 in such manner1 and containing such information as the ,secretary may require4 7b7 ,combined projects ,the ,secretary shall provide1 only in the case of a ,state infrastructure financing authority1 that such an entity may submit a single application for a combination of projects1 each of which is an eligible project under section #h7;b74 #g4 ,determination of eligibility and project selection 7a7 ,selection of projects ,using the selection criteria under subsection 7d71 the ,secretary shall select1 from applications submitted pursuant under this ,act1 eligible projects that meet the criteria under subsections 7b7 and 7c7 for financial assistance under this ,act4 7b7 ,activities eligible for assistance ,amounts from a loan made or guaranteed under this ,act provided for an eligible project may be used to pay the costs of carrying out such project1 including costs of-- 7#a7 development-phase activities1 including planning1 feasibility analysis1 revenue forecasting1 environmental review1 permitting1 preliminary engineering and design work1 and other preconstruction activities2 7#b7 construction1 reconstruction1 rehabilitation1 and replacement activities2 7#c7 the acquisition of real property 7including land relating to the project and improvements to land71 environmental mitigation1 construction contingencies1 and acquisition of equipment2 7#d7 capitalized interest necessary to meet market requirements1 reasonably required reserve funds1 capital issuance expenses1 and other carrying costs during construction2 and 7#e7 refinancing interim construction funding1 long-term project obligations1 or a secured loan or loan guarantee made under this ,act4 7c7 ,project requirements ,an eligible project may not be selected to receive financial assistance under this ,act unless the ,secretary determines that the project meets all of the following criteria3 7#a7 ,creditworthiness 7,a7 ,in general ,subject to subparagraph 7,b71 the project shall be creditworthy1 as determined by the ,secretary as applicable1 to ensure that any financing for the project has appropriate security features1 such as a rate covenant1 to ensure repayment4 7,b7 ,preliminary rating opinion letter ,the ,secretary shall require an applicant for each project to provide1 as part of the application for the project under this section1 a preliminary rating opinion letter from at least one rating agency indicating that the senior project obligations of the project 7which may be the ,federal credit instrument7 have the potential to achieve an investment-grade rating4 7,c7 ,special rule for certain combined projects ,the ,secretary shall develop a credit evaluation process for a ,federal credit instrument provided to a ,state infrastructure financing authority for a project described in subsection 7b71 which may include requiring the provision of a preliminary rating opinion letter from at least one rating agency4 7#b7 ,eligible project costs ,the costs of an eligible project shall be reasonably anticipated to be not less than #b1jjj1jjj4 7#c7 ,dedicated revenue sources ,the ,federal credit instrument for the project shall be repayable1 in whole or in part1 from dedicated revenue sources that also secure the project obligations4 7#d7 ,public sponsorship of private entities ,in the case of a project carried out by an entity that is not a ,state or local government or an agency or instrumentality of a ,state or local government1 the project shall be publicly sponsored4 7#e7 ,public involvement process ,the applicant shall show evidence of having incorporated a public involvement process in the application1 and plans for continued public involvement through the implementation of the process4 ,the public involvement processes shall be proactive and provide complete information1 timely public notice1 full public access to key decisions1 and opportunities for early and continuing involvement4 ,the processes shall provide for-- 7,a7 reasonable public access to technical and policy information used in the development of the application2 7,b7 adequate public notice of public involvement activities and time for public review and comment at key decision points2 7,c7 a process for demonstrating explicit consideration and response to public input during the planning and program development process2 and 7,d7 a process for seeking out and considering the needs of those traditionally underserved by existing transportation systems1 such as low-income and minority households which may face challenges accessing employment and other amenities4 7d7 ,selection ,among ,eligible ,projects 7#a7 ,establishment ,the ,secretary shall establish a rolling application process in which projects that are eligible to receive credit assistance under subsection 7a7 shall receive credit assistance on terms acceptable to the ,secretary1 if adequate funds are available to cover the subsidy costs associated with the ,federal credit instrument4 7#b7 ,adequate funding not available ,if the ,secretary fully obligates funding to eligible projects in a given fiscal year1 and adequate funding is not available to fund a credit instrument1 a project sponsor of an eligible project may elect to enter into a master credit agreement and wait until the following fiscal year or until additional funds are available to receive credit assistance4 7e7 ,low-,income communities ,the ,secretary shall ensure that not less that #be percent of funds under this section are used to support projects in low-income communities4 7f7 ,federal requirements ,nothing in this section may be construed to alter1 affect1 or annul the applicability of any other ,federal law4 #h4 ,secured loans and loan guarantees 7a7 ,authority ,the ,secretary may enter into agreements with eligible entities to make1 and may make1 secured loans to such entities as provided under this section for eligible projects selected under section #h4 7b7 ,use 7#a7 ,in general ,the proceeds of a secured loan under this section shall be used only-- 7,a7 to finance project costs of an eligible project selected under section #h2 7,b7 subject to paragraph 7#b71 to refinance interim construction financing of eligible project costs of an eligible project selected under section #h2 or 7,c7 to refinance long-term project obligations or ,federal credit instruments1 if such refinancing provides additional funding capacity for the completion1 enhancement1 or expansion of a project that-- 7i7 is selected under section #h2 or 7ii7 was originally financed1 in whole or in part1 with amounts provided other than under this ,act1 if the project otherwise meets the requirements of section #h4 7#b7 ,limitation on refinancing of interim construction financing ,the proceeds of a secured loan under this section made for an eligible project may not be used for the purpose under paragraph 7#a77;,b7 after the expiration of the #ab-month period beginning on the date of substantial completion of the project4 7c7 ,risk assessment ,before entering into an agreement under this subsection for a secured loan1 the ,secretary1 in consultation with the ,director of the ,office of ,management and ,budget and each rating agency providing a preliminary rating opinion letter under section #h7;c77#a77;,b71 shall determine an appropriate capital reserve subsidy amount for the secured loan1 taking into account each such preliminary rating opinion letter4 7d7 ,investment-,grade rating requirement for senior obligations ,the execution of a secured loan under this section shall be contingent on receipt by the senior obligations of the project of an investment-grade rating4 7e7 ,terms and limitations 7#a7 ,maximum amount ,the amount of a secured loan under this section shall not exceed the lesser of-- 7,a7 an amount equal to #di percent of the reasonably anticipated eligible project costs2 or 7,b7 if the secured loan does not receive an investment-grade rating1 the amount of the senior project obligations of the project4 7#b7 ,payment ,a secured loan under this section-- 7,a7 shall be payable1 in whole or in part1 from ,state or local taxes1 user fees1 or other dedicated revenue sources that also secure the senior project obligations of the relevant project2 7,b7 shall include a rate covenant1 coverage requirement1 or similar security feature supporting the project obligations2 and 7,c7 may have a lien on revenues described in subparagraph 7,a71 subject to any lien securing project obligations4 7#c7 ,interest rate ,the interest rate on a secured loan under this section shall be-- 7,a7 equal to 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 agreement2 and 7,b7 fixed for the term of the loan4 7#d7 ,maturity date 7,a7 ,in general ,except as provided in subparagraph 7,b71 the final maturity date of a secured loan under this section for an eligible project shall be not later than #ce years after the date of substantial completion of the project4 7,b7 ,special rule for state infrastructure financing authorities ,the final maturity date of a secured loan under this section made to a ,state infrastructure financing authority shall be not later than #ce years after the date on which loan amounts are first disbursed4 7#e7 ,nonsubordination ,a secured loan under this section shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy1 insolvency1 or liquidation of the obligor4 7#f7 ,fees ,the ,secretary may establish fees in connection with a secured loan under this section1 in amounts sufficient to cover all or a portion of the costs to the ,federal ,government of secured loans under this section4 7#g7 ,use of proceeds for payment of non-federal share ,the proceeds of a secured loan under this section may be used to pay any non-,federal share required with respect to other funding obtained for project costs1 but only if such secured loan is repaid using non-,federal funds4 7#h7 ,maximum federal involvement ,for any project for which assistance is provided under this ,act1 the total amount of ,federal assistance from all sources1 including this ,act1 shall not exceed #hj percent of the total project cost4 7#i7 ,other terms and conditions ,a secured loan provided for a project under this section shall be subject to such other terms and conditions1 and contain such covenants1 representations1 warranties1 and requirements 7including requirements for audits71 as the ,secretary determines to be appropriate4 7f7 ,repayment 7#a7 ,schedule ,the ,secretary shall establish a repayment schedule for each secured loan provided under this section1 based on the projected cash flow from project revenues and other repayment sources4 7#b7 ,commencement 7,a7 ,in general ,except as provided in subparagraph 7,b71 scheduled loan repayments of principal or interest on a secured loan under this section for an eligible project shall commence not later than #e years after the date of substantial completion of the project4 7,b7 ,special rule for state infrastructure financing authorities ,scheduled loan repayments of principal or interest on a secured loan made under this section to a ,state infrastructure financing authority shall commence not later than #e years after the date on which amounts are first disbursed4 7#c7 ,deferred payments 7,a7 ,in general ,if1 at any time after the date of substantial completion of a project for which a secured loan is provided under this section1 the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the loan1 the ,secretary may1 subject to subparagraph 7,c71 allow the obligor to add unpaid principal and interest to the outstanding balance of the secured loan4 7,b7 ,interest ,any payment deferred pursuant to subparagraph 7,a7 shall-- 7i7 continue to accrue interest in accordance with subsection 7e77#c7 until fully repaid2 and 7ii7 be amortized over the remaining term of the secured loan4 7,c7 ,criteria ,any payment deferral pursuant to subparagraph 7,a7 shall be contingent on the project meeting-- 7i7 standards for reasonable assurance of repayment1 as the ,secretary shall establish2 and 7ii7 such other criteria as the ,secretary may establish4 7#d7 ,prepayment 7,a7 ,use of excess revenues ,any excess revenues from an eligible project 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 agreement1 bond resolution1 or similar agreement securing project obligations may be applied annually to prepay a secured loan under this section without penalty4 7,b7 ,use of proceeds of refinancing ,a secured loan under this section may be prepaid at any time1 without penalty1 from the proceeds of refinancing from non-,federal funding sources4 7g7 ,sale of secured loans 7#a7 ,in general ,subject to paragraph 7#b71 if the ,secretary determines that the sale or reoffering of a secured loan under this section for an eligible project can be made on favorable terms1 the ,secretary may sell the loan to another entity or reoffer the loan into the capital markets as soon as practicable after the date of substantial completion of a project and after providing notice to the obligor4 7#b7 ,consent of obligor ,in making a sale or reoffering under paragraph 7#a71 the ,secretary may not change the original terms and conditions of the secured loan without the written consent of the obligor4 7h7 ,loan guarantees 7#a7 ,in general ,in lieu of making a secured loan under this section for an eligible project1 the ,secretary may provide a loan guarantee for a project obligation for a project funded by a qualified lender 7as such term is defined in section #ab71 but only if the ,secretary determines that the cost as such term is defined in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a7 of the loan guarantee is substantially the same as or less than that of making a secured loan4 7#b7 ,terms ,the terms of a loan guarantee provided under this subsection shall be consistent with the terms established in this section for a secured loan1 except that the interest rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the qualified lender1 subject to the consent of the ,secretary4 #i4 ,program administration 7a7 ,requirement ,the ,secretary shall establish a uniform system to service the ,federal credit instruments made available under this ,act4 7b7 ,servicer 7#a7 ,in general ,the ,secretary may appoint a financial entity to assist the ,secretary in servicing ,federal credit instruments provided under this ,act4 7#b7 ,duties ,a servicer appointed under paragraph 7#a7 shall act as the agent for the ,secretary4 7c7 ,assistance from experts ,the ,secretary may retain the services1 including counsel1 of organizations and entities with expertise in the field of municipal and project finance to assist in the underwriting and servicing of ,federal credit instruments provided under this ,act4 #aj4 ,state and local permits ,the provision of financial assistance under this ,act for an eligible project shall not-- 7#a7 relieve any recipient of such assistance of any obligation to obtain any required ,state or local permit or approval with respect to the project2 7#b7 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 project2 or 7#c7 otherwise supersede any ,state or local law or regulation applicable to the construction or operation of the project4 #aa4 ,definitions ,in this ,act1 the following definitions shall apply3 7#a7 ,eligible entity ,the term eligible entity means an entity listed in section #e to receive financial assistance under this ,act4 7#b7 ,eligible project ,the term eligible project means a project described in section #f4 7#c7 ,eligible project costs ,the term eligible project costs means1 with respect to an eligible project1 any costs of the project eligible under section #h to be paid with amounts from a loan made or guaranteed under this ,act4 7#d7 ,federal credit instrument ,the term ,federal credit instrument means a secured loan made1 or loan guarantee provided1 under section #i4 7#e7 ,investment-grade rating ,the term investment-grade rating means1 with respect to project obligations1 a rating of ,,bbb minus1 ,baa#c1 bbb minus1 ,,bbb 7low71 or higher as assigned by a rating agency4 7#f7 ,loan guarantee ,the term loan guarantee means any guarantee or other pledge by the ,secretary to pay all or part of the principal of1 and interest on1 a loan or other debt obligation4 7#g7 ,obligor ,the term obligor means-- 7,a7 with respect to a ,federal credit instrument that is a secured loan under section #i1 the eligible entity that is primarily liable for payment of the principal of1 or interest on1 the loan2 and 7,b7 with respect to a ,federal credit instrument that is a loan guarantee under section #i7;h71 the eligible entity that is primarily liable for payment of the loan or other debt obligation repayment of which is guaranteed pursuant to such section4 7#h7 ,project obligation ,the term project obligation means1 with respect to an eligible project1 any note1 bond1 debenture1 or other debt obligation issued by an obligor in connection with the financing of the project4 ,such term does not include a ,federal credit instrument4 7#i7 ,qualified lender 7,a7 ,in general ,the term qualified lender means any non-,federal qualified institutional buyer1 as such term is defined in section #bcj4add;,a7a7 of title #ag1 ,code of ,federal ,regulations 7or any successor regulation71 known as ,rule #add;,a7a7 of the ,securities and ,exchange ,commission and issued under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;a et seq474 7,b7 ,inclusions ,such term includes-- 7i7 a qualified retirement plan 7as defined in section #digd7;c7 of the ,internal ,revenue ,code of #aihf7 that is a qualified institutional buyer2 and 7ii7 a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf7 that is a qualified institutional buyer4 7#aj7 ,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 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a7774 7#aa7 ,secretary ,the term ,secretary means the ,secretary of ,transportation4 7#ab7 ,secured loan ,the term secured loan means a direct loan or other debt obligation issued by an obligor and funded by the ,secretary pursuant to section #i4 7#ac7 ,state ,the term ,state means a ,state1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 and any other territory or possession of the ,united ,states4 7#ad7 ,state infrastructure financing authority ,the term ,state infrastructure financing authority means the ,state entity established or designated by the ,governor of a ,state to receive assistance under this ,act4 7#ae7 ,subsidy amount ,the term subsidy amount means1 with respect to a ,federal credit instrument1 the amount of budget authority sufficient to cover the estimated long-term cost to the ,federal ,government of the ,federal credit instrument1 as calculated on a net present value basis1 excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa et seq474 7#af7 ,substantial completion ,the term substantial completion means1 with respect to a project1 the earliest date on which a project is considered capable of performing the functions for which the project is designed4 #ab4 ,regulations ,the ,secretary may issue such regulations as the ,secretary considers appropriate to carry out this ,act4 #ac4 ,funding ,section #fjh7;a7 of title #bc1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraphs 7#d7 through 7#f7 as paragraphs 7#e7 through 7#g71 respectively2 and 7#b7 by inserting after paragraph 7#c7 the following3 7#d7 ,set asides ,of the total amount of funds made available to carry out this chapter for each fiscal year-- 7,a7 #aa1jjj1jjj shall be set aside for pedestrian and bicycle infrastructure projects described in the ,new ,opportunities for ,bicycle and ,pedestrian ,infrastructure ,financing ,act of #bjac unless and until the pilot program established by that ,act is terminated2 and 7,b7 #a1jjj1jjj for shall be set aside for administrative costs of the program4 4 #ad4 ,report to ,congress ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report summarizing the financial performance of the projects that are receiving1 or have received1 assistance under this ,act1 including a recommendation as to whether the objectives of this ,act are best served-- 7#a7 by continuing the program under the authority of the ,secretary2 and 7#b7 by phasing out the program and relying on the capital markets to fund the types of infrastructure investments assisted by this ,act without ,federal participation4