,,ii #aafth ,,congress #ast ,session ,s4 #bcdd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #cj1 #bjai,mr4 ,peters introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to establish a broadband infrastructure finance and innovation program to make available loans1 loan guarantees1 and lines of credit for the construction and deployment of broadband infrastructure1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,broadband ,infrastructure ,finance and ,innovation ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,sec4 #c4 ,determination of eligibility and project selection4,sec4 #d4 ,secured loans4,sec4 #e4 ,lines of credit4,sec4 #f4 ,alternative prudential lending standards for small projects4,sec4 #g4 ,program administration4,sec4 #h4 ,state and local permits4,sec4 #i4 ,regulations4,sec4 #aj4 ,funding4,sec4 #aa4 ,reports to ,congress4 #b4 ,definitions ,in this ,act3 7#a7 ,assistant ,secretary ,the term ,assistant ,secretary means the ,assistant ,secretary of ,commerce for ,communications and ,information4 7#b7 ,,bifia program ,the term ,,bifia program means the broadband infrastructure finance and innovation program established under this ,act4 7#c7 ,broadband service ,the term broadband service-- 7,a7 means broadband internet access service that is a mass-market retail service1 or a service provided to an entity described in paragraph 7#ab77;,b77ii71 by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpoints1 including any capabilities that are incidental to and enable the operation of the communications service2 7,b7 includes any service that is a functional equivalent of the service described in subparagraph 7,a72 and 7,c7 does not include dial-up internet access service4 7#d7 ,eligible project costs ,the term eligible project costs means amounts substantially all of which are paid by1 or for the account of1 an obligor in connection with a project1 including the cost of-- 7,a7 development phase activities1 including planning1 feasibility analysis1 revenue forecasting1 environmental review1 historic preservation review1 permitting1 preliminary engineering and design work1 and other preconstruction activities2 7,b7 construction and deployment phase activities1 including-- 7i7 construction1 reconstruction1 rehabilitation1 replacement1 and acquisition of real property 7including land relating to the project and improvements to land71 equipment1 instrumentation1 networking capability1 hardware and software1 and digital network technology2 7ii7 environmental mitigation2 and 7iii7 construction contingencies2 and 7,c7 capitalized interest necessary to meet market requirements1 reasonably required reserve funds1 capital issuance expenses1 and other carrying costs during construction and deployment4 7#e7 ,federal credit instrument ,the term ,federal credit instrument means a secured loan1 loan guarantee1 or line of credit authorized to be made available under the ,,bifia program with respect to a project4 7#f7 ,investment-grade rating ,the term investment-grade rating means a rating of ,,bbb minus1 ,baa#c1 bbb minus1 ,,bbb 7low71 or higher assigned by a rating agency to project obligations4 7#g7 ,lender ,the term lender means any non-,federal qualified institutional buyer 7as 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 seq4771 including-- 7,a7 a qualified retirement plan 7as defined in section #digd7;c7 of the ,internal ,revenue ,code of #aihf7 that is a qualified institutional buyer2 and 7,b7 a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf7 that is a qualified institutional buyer4 7#h7 ,letter of interest ,the term letter of interest means a letter submitted by a potential applicant prior to an application for credit assistance under the ,,bifia program in a format prescribed by the ,assistant ,secretary on the website of the ,,bifia program that-- 7,a7 describes the project and the location1 purpose1 and cost of the project2 7,b7 outlines the proposed financial plan1 including the requested credit assistance and the proposed obligor2 7,c7 provides a status of environmental review2 and 7,d7 provides information regarding satisfaction of other eligibility requirements of the ,,bifia program4 7#i7 ,line of credit ,the term line of credit means an agreement entered into by the ,assistant ,secretary with an obligor under section #e to provide a direct loan at a future date upon the occurrence of certain events4 7#aj7 ,loan guarantee ,the term loan guarantee means any guarantee or other pledge by the ,assistant ,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 lender4 7#aa7 ,obligor ,the term obligor means a party that-- 7,a7 is primarily liable for payment of the principal of or interest on a ,federal credit instrument2 and 7,b7 may be a corporation1 company1 partnership1 joint venture1 trust1 or governmental entity1 agency1 or instrumentality4 7#ab7 ,project ,the term project means a project-- 7,a7 to construct and deploy infrastructure for the provision of broadband service2 and 7,b7 that the ,assistant ,secretary determines will-- 7i7 provide access or improved access to broadband service to consumers residing in areas of the ,united ,states that have no access to broadband service or do not have access to broadband service offered-- 7,i7 with a download speed of at least #be megabits per second2 7,,ii7 with an upload speed of at least #c megabits per second2 and 7,,iii7 with latency that is sufficiently low to allow real-time1 interactive applications2 or 7ii7 provide access or improved access to broadband service to-- 7,i7 schools1 libraries1 medical and healthcare providers1 community colleges and other institutions of higher education1 and other community support organizations and entities to facilitate greater use of broadband service by or through such organizations2 7,,ii7 organizations and agencies that provide outreach1 access1 equipment1 and support services to facilitate greater use of broadband service by low-income1 unemployed1 aged1 and otherwise vulnerable populations2 7,,iii7 job-creating strategic facilities located within-- 7aa7 a ,state-designated economic zone2 7bb7 an economic development district designated by the ,secretary of ,commerce under section #dja of the ,public ,works and ,economic ,development ,act of #aife 7#db ,u4,s4,c4 #caga72 7cc7 a renewal community designated by the ,secretary of ,housing and ,urban ,development under section #adjj;,e of the ,internal ,revenue ,code of #aihf 7as in effect before the repeal of that section by section #dja7;d77#e77;,a7 of division ,u of the ,consolidated ,appropriations ,act1 #bjah 7,public ,law #aae-ada2 #acb ,stat4 #cdh772 7dd7 an empowerment zone designated by the ,secretary of ,housing and ,urban ,development under section #acia of the ,internal ,revenue ,code of #aihf2 or 7ee7 an enterprise community designated by the ,secretary of ,agriculture under section #acia of the ,internal ,revenue ,code of #aihf2 or 7,,iv7 public safety agencies4 7#ac7 ,project obligation ,the term project obligation means any note1 bond1 debenture1 or other debt obligation issued by an obligor in connection with the financing of a project1 other than a ,federal credit instrument4 7#ad7 ,public authority ,the term public authority means the ,federal ,government or a ,state1 county1 town1 township1 ,indian ,tribe1 municipal government1 or other local government1 or an instrumentality thereof1 with authority to finance1 build1 operate1 or maintain infrastructure for the provision of broadband service4 7#ae7 ,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#af7 ,secured loan ,the term secured loan means a direct loan or other debt obligation issued by an obligor and funded by the ,assistant ,secretary in connection with the financing of a project under section #d4 7#ag7 ,small project ,the term small project means a project having eligible project costs that are reasonably anticipated not to equal or exceed #bj1jjj1jjj4 7#ah7 ,state ,the term ,state has the meaning given such term in section #c of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aec74 7#ai7 ,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-- 7,a7 calculated on a net present value basis2 and 7,b7 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#bj7 ,substantial completion ,the term substantial completion means1 with respect to a project receiving credit assistance under the ,,bifia program-- 7,a7 the commencement of the provision of broadband service using the infrastructure being financed2 or 7,b7 a comparable event1 as determined by the ,assistant ,secretary and specified in the credit agreement4 #c4 ,determination of eligibility and project selection 7a7 ,eligibility 7#a7 ,in general ,a project shall be eligible to receive credit assistance under the ,,bifia program if-- 7,a7 the entity proposing to carry out the project submits a letter of interest prior to submission of a formal application for the project2 and 7,b7 the project meets the criteria described in this subsection4 7#b7 ,creditworthiness 7,a7 ,in general ,except as provided in subparagraph 7,b71 to be eligible for assistance under the ,,bifia program1 a project shall satisfy applicable creditworthiness standards1 which1 at a minimum1 shall include-- 7i7 adequate coverage requirements to ensure repayment2 7ii7 an investment-grade rating from at least #b rating agencies on debt senior to the ,federal credit instrument2 and 7iii7 a rating from at least #b rating agencies on the ,federal credit instrument4 7,b7 ,small projects ,in order for a small project to be eligible for assistance under the ,,bifia program1 such project shall satisfy alternative creditworthiness standards that shall be established by the ,assistant ,secretary under section #f for purposes of this paragraph4 7#c7 ,application ,a ,state1 local government1 agency or instrumentality of a ,state or local government1 public authority1 public-private partnership1 or other legal entity undertaking a project and authorized by the ,assistant ,secretary shall submit a project application that is acceptable to the ,assistant ,secretary4 7#d7 ,eligible project cost parameters for infrastructure projects ,eligible project costs shall be reasonably anticipated to equal or exceed #b1jjj1jjj in the case of a project or program of projects-- 7,a7 in which the applicant is a local government1 an instrumentality of a local government1 or a public authority 7other than a public authority that is the ,federal ,government or a ,state government1 or an instrumentality thereof72 7,b7 located on a facility owned by a local government2 or 7,c7 for which the ,assistant ,secretary determines that a local government is substantially involved in the development of the project4 7#e7 ,dedicated revenue sources ,the applicable ,federal credit instrument shall be repayable1 in whole or in part1 from-- 7,a7 amounts charged to-- 7i7 subscribers of broadband service for such service2 or 7ii7 subscribers of any related service provided over the same infrastructure for such related service2 7,b7 user fees2 7,c7 payments owing to the obligor under a public-private partnership2 or 7,d7 other dedicated revenue sources that also secure or fund the project obligations4 7#f7 ,applications where obligor will be identified later ,a ,state1 local government1 agency or instrumentality of a ,state or local government1 or public authority may submit to the ,assistant ,secretary an application under paragraph 7#c71 under which a private party to a public-private partnership will be-- 7,a7 the obligor2 and 7,b7 identified later through completion of a procurement and selection of the private party4 7#g7 ,beneficial effects ,the ,assistant ,secretary shall determine that financial assistance for a project under the ,,bifia program will-- 7,a7 foster1 if appropriate1 partnerships that attract public and private investment for the project2 7,b7 enable the project to proceed at an earlier date than the project would otherwise be able to proceed or reduce the lifecycle costs 7including debt service costs7 of the project2 and 7,c7 reduce the contribution of ,federal grant assistance for the project4 7#h7 ,project readiness ,to be eligible for assistance under the ,,bifia program1 the applicant shall demonstrate a reasonable expectation that the contracting process for the construction and deployment of infrastructure for the provision of broadband service through the project can commence by no later than #ij days after the date on which a ,federal credit instrument is obligated for the project under the ,,bifia program4 7b7 ,selection ,among ,eligible ,projects 7#a7 ,establishment of application process ,the ,assistant ,secretary shall establish a rolling application process under which projects that are eligible to receive credit assistance under subsection 7a7 shall receive credit assistance on terms acceptable to the ,assistant ,secretary1 if adequate funds are available to cover the subsidy costs associated with the ,federal credit instrument4 7#b7 ,preliminary rating opinion letter ,the ,assistant ,secretary shall require each project applicant to provide-- 7,a7 a preliminary rating opinion letter from at least #a rating agency-- 7i7 indicating that the senior obligations of the project1 which may be the ,federal credit instrument1 have the potential to achieve an investment-grade rating2 and 7ii7 including a preliminary rating opinion on the ,federal credit instrument2 or 7,b7 in the case of a small project1 alternative documentation that the ,assistant ,secretary shall require in the standards established under section #f for purposes of this paragraph4 7#c7 ,technology neutrality required ,in selecting projects to receive credit assistance under the ,,bifia program1 the ,assistant ,secretary may not favor a project using any particular technology4 7c7 ,federal ,requirements 7#a7 ,in general ,the following provisions of law shall apply to funds made available under the ,,bifia program and projects assisted with those funds3 7,a7 ,title ,,vi of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;d et seq474 7,b7 ,the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7,c7 ,division ,a of subtitle ,,iii of title #ed1 ,united ,states ,code 7formerly known as the ,national ,historic ,preservation ,act74 7,d7 ,the ,uniform ,relocation ,assistance and ,real ,property ,acquisition ,policies ,act of #aigj 7#db ,u4,s4,c4 #dfja et seq474 7#b7 ,,nepa ,no funding shall be obligated under the ,,bifia program for a project that has not received an environmental categorical exclusion1 a finding of no significant impact1 or a record of decision under the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7#c7 ,title ,,vi of the ,civil ,rights ,act of #aifd ,for purposes of title ,,vi of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;d et seq471 any project that receives credit assistance under the ,,bifia program shall be considered a program or activity within the meaning of section #fjf of such title 7#db ,u4,s4,c4 #bjjj;d-#d;a74 7d7 ,application ,processing ,procedures 7#a7 ,notice of complete application ,not later than #cj days after the date of receipt of an application under this section1 the ,assistant ,secretary shall provide to the applicant a written notice to inform the applicant whether-- 7,a7 the application is complete2 or 7,b7 additional information or materials are needed to complete the application4 7#b7 ,approval or denial of application ,not later than #fj days after the date of issuance of the written notice under paragraph 7#a71 the ,assistant ,secretary shall provide to the applicant a written notice informing the applicant whether the ,assistant ,secretary has approved or disapproved the application4 7#c7 ,approval before ,,nepa review ,subject to subsection 7c77#b71 an application for a project may be approved before the project receives an environmental categorical exclusion1 a finding of no significant impact1 or a record of decision under the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7e7 ,development ,phase ,activities ,any credit instrument secured under the ,,bifia program may be used to finance up to #ajj percent of the cost of development phase activities as described in section #b7d77;,a74 #d4 ,secured loans 7a7 ,in ,general 7#a7 ,agreements ,subject to paragraphs 7#b7 and 7#c71 the ,assistant ,secretary may enter into agreements with one or more obligors to make secured loans1 the proceeds of which shall be used-- 7,a7 to finance eligible project costs of any project selected under section #c2 7,b7 to refinance interim construction financing of eligible project costs of any project selected under section #c2 or 7,c7 to refinance long-term project obligations or ,federal credit instruments1 if the refinancing provides additional funding capacity for the completion1 enhancement1 or expansion of any project that-- 7i7 is selected under section #c2 or 7ii7 otherwise meets the requirements of section #c4 7#b7 ,limitation on refinancing of interim construction financing ,a loan under paragraph 7#a7 shall not refinance interim construction financing under paragraph 7#a77;,b7-- 7,a7 if the maturity of such interim construction financing is later than #a year after the substantial completion of the project2 and 7,b7 later than #a year after the date of substantial completion of the project4 7#c7 ,risk assessment ,before entering into an agreement under this subsection1 the ,assistant ,secretary1 in consultation with the ,director of the ,office of ,management and ,budget1 shall determine an appropriate capital reserve subsidy amount for each secured loan1 taking into account each rating letter provided by a rating agency under section #c7;b77#b77;,a77ii7 or1 in the case of a small project1 the alternative documentation provided under section #c7;b77#b77;,b74 7b7 ,terms and ,limitations 7#a7 ,in general ,a secured loan under this section with respect to a project shall be on such terms and conditions and contain such covenants1 representations1 warranties1 and requirements 7including requirements for audits7 as the ,assistant ,secretary determines to be appropriate4 7#b7 ,maximum amount ,the amount of a secured loan under this section shall not exceed the lesser of #di percent of the reasonably anticipated eligible project costs or1 if the secured loan is not for a small project and does not receive an investment-grade rating1 the amount of the senior project obligations4 7#c7 ,payment ,a secured loan under this section-- 7,a7 shall-- 7i7 be payable1 in whole or in part1 from-- 7,i7 amounts charged to-- 7aa7 subscribers of broadband service for such service2 or 7bb7 subscribers of any related service provided over the same infrastructure for such related service2 7,,ii7 user fees2 7,,iii7 payments owing to the obligor under a public-private partnership2 or 7,,iv7 other dedicated revenue sources that also secure the senior project obligations2 and 7ii7 include a coverage requirement or similar security feature supporting the project obligations2 and 7,b7 may have a lien on revenues described in subparagraph 7,a71 subject to any lien securing project obligations4 7#d7 ,interest rate ,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 agreement4 7#e7 ,maturity date ,the final maturity date of a secured loan under this section shall be the earlier of-- 7,a7 the date that is #ce years after the date of substantial completion of the project2 or 7,b7 the last day of the useful life of the infrastructure for the provision of broadband service being financed4 7#f7 ,nonsubordination 7,a7 ,in general ,except as provided in subparagraph 7,b71 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,b7 ,preexisting indenture 7i7 ,in general ,the ,assistant ,secretary shall waive the requirement under subparagraph 7,a7 for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture1 if-- 7,i7 the secured loan-- 7aa7 is rated in the ,a category or higher2 or 7bb7 in the case of a small project1 meets an alternative standard that the ,assistant ,secretary shall establish under section #f for purposes of this subclause2 7,,ii7 the secured loan is secured and payable from pledged revenues not affected by project performance1 such as a tax-backed revenue pledge or a system-backed pledge of project revenues2 and 7,,iii7 the ,,bifia program share of eligible project costs is #cc percent or less4 7ii7 ,limitation ,if the ,assistant ,secretary waives the nonsubordination requirement under this subparagraph-- 7,i7 the maximum credit subsidy to be paid by the ,federal ,government shall be not more than #aj percent of the principal amount of the secured loan2 and 7,,ii7 the obligor shall be responsible for paying the remainder of the subsidy cost1 if any4 7#g7 ,fees ,the ,assistant ,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 section4 7#h7 ,non-,federal share ,the proceeds of a secured loan under the ,,bifia program1 if the loan is repayable from non-,federal funds-- 7,a7 may be used for any non-,federal share of project costs required under this ,act2 and 7,b7 shall not count toward the total ,federal assistance provided for a project for purposes of paragraph 7#i74 7#i7 ,maximum ,federal involvement ,the total ,federal assistance provided for a project receiving a loan under the ,,bifia program shall not exceed #hj percent of the total project cost4 7c7 ,repayment 7#a7 ,schedule ,the ,assistant ,secretary shall establish a repayment schedule for each secured loan under this section based on-- 7,a7 the projected cash flow from project revenues and other repayment sources2 and 7,b7 the useful life of the infrastructure for the provision of broadband service being financed4 7#b7 ,commencement ,scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than #e years after the date of substantial completion of the project4 7#c7 ,deferred payments 7,a7 ,in general ,if1 at any time after the date of substantial completion of the project1 the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the secured loan1 the ,assistant ,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 under subparagraph 7,a7 shall-- 7i7 continue to accrue interest in accordance with subsection 7b77#d7 until fully repaid2 and 7ii7 be scheduled to be amortized over the remaining term of the loan4 7,c7 ,criteria 7i7 ,in general ,any payment deferral under subparagraph 7,a7 shall be contingent on the project meeting criteria established by the ,assistant ,secretary4 7ii7 ,repayment standards ,the criteria established pursuant to clause 7i7 shall include standards for reasonable assurance of repayment4 7#d7 ,prepayment 7,a7 ,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 agreement1 bond resolution1 or similar agreement securing project obligations may be applied annually to prepay the secured loan without penalty4 7,b7 ,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 sources4 7d7 ,sale of ,secured ,loans 7#a7 ,in general ,subject to paragraph 7#b71 as soon as practicable after substantial completion of a project and after notifying the obligor1 the ,assistant ,secretary may sell to another entity or reoffer into the capital markets a secured loan for the project if the ,assistant ,secretary determines that the sale or reoffering can be made on favorable terms4 7#b7 ,consent of obligor ,in making a sale or reoffering under paragraph 7#a71 the ,assistant ,secretary may not change the original terms and conditions of the secured loan without the written consent of the obligor4 7e7 ,loan ,guarantees 7#a7 ,in general ,the ,assistant ,secretary may provide a loan guarantee to a lender in lieu of making a secured loan under this section if the ,assistant ,secretary determines that the budgetary cost of the loan guarantee is substantially the same as that of a secured loan4 7#b7 ,terms ,the terms of a loan guarantee under paragraph 7#a7 shall be consistent with the terms required under this section for a secured loan1 except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the lender1 with the consent of the ,assistant ,secretary4 7f7 ,streamlined ,application ,process 7#a7 ,in general ,the ,assistant ,secretary shall develop one or more expedited application processes1 available at the request of entities seeking secured loans under the ,,bifia program1 that use a set or sets of conventional terms established pursuant to this section4 7#b7 ,terms ,in establishing the streamlined application process required by this subsection1 the ,assistant ,secretary may allow for an expedited application period and include terms such as those that require-- 7,a7 that the project be a small project2 7,b7 the secured loan to be secured and payable from pledged revenues not affected by project performance1 such as a tax-backed revenue pledge1 tax increment financing1 or a system-backed pledge of project revenues2 and 7,c7 repayment of the loan to commence not later than #e years after disbursement4 #e4 ,lines of credit 7a7 ,in ,general 7#a7 ,agreements ,subject to paragraphs 7#b7 through 7#d71 the ,assistant ,secretary may enter into agreements to make available to one or more obligors lines of credit in the form of direct loans to be made by the ,assistant ,secretary at future dates on the occurrence of certain events for any project selected under section #c4 7#b7 ,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 costs1 extraordinary repair and replacement costs1 operation and maintenance expenses1 and costs associated with unexpected ,federal or ,state environmental restrictions4 7#c7 ,risk assessment 7,a7 ,in general ,except as provided in subparagraph 7,b71 before entering into an agreement under this subsection1 the ,assistant ,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 #c7;b77#b77;,a71 shall determine an appropriate capital reserve subsidy amount for each line of credit1 taking into account the rating opinion letter4 7,b7 ,small projects ,before entering into an agreement under this subsection to make available a line of credit for a small project1 the ,assistant ,secretary1 in consultation with the ,director of the ,office of ,management and ,budget1 shall determine an appropriate capital reserve subsidy amount for each such line of credit1 taking into account the alternative documentation provided under section #c7;b77#b77;,b7 instead of preliminary rating opinion letters provided under section #c7;b77#b77;,a74 7#d7 ,investment-grade rating requirement ,the funding of a line of credit under this section shall be contingent on-- 7,a7 the senior obligations of the project receiving an investment-grade rating from #b rating agencies2 or 7,b7 in the case of a small project1 the project meeting an alternative standard that the ,assistant ,secretary shall establish under section #f for purposes of this paragraph4 7b7 ,terms and ,limitations 7#a7 ,in general ,a line of credit under this section with respect to a project shall be on such terms and conditions and contain such covenants1 representations1 warranties1 and requirements 7including requirements for audits7 as the ,assistant ,secretary determines to be appropriate4 7#b7 ,maximum amounts ,the total amount of a line of credit under this section shall not exceed #cc percent of the reasonably anticipated eligible project costs4 7#c7 ,draws ,any draw on a line of credit under this section shall-- 7,a7 represent a direct loan2 and 7,b7 be made only if net revenues from the project 7including capitalized interest1 but not including reasonably required financing reserves7 are insufficient to pay the costs specified in subsection 7a77#b74 7#d7 ,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 #cj-year ,united ,states ,treasury securities1 as of the date of execution of the line of credit agreement4 7#e7 ,security ,a line of credit issued under this section-- 7,a7 shall-- 7i7 be payable1 in whole or in part1 from-- 7,i7 amounts charged to-- 7aa7 subscribers of broadband service for such service2 or 7bb7 subscribers of any related service provided over the same infrastructure for such related service2 7,,ii7 user fees2 7,,iii7 payments owing to the obligor under a public-private partnership2 or 7,,iv7 other dedicated revenue sources that also secure the senior project obligations2 and 7ii7 include a coverage requirement or similar security feature supporting the project obligations2 and 7,b7 may have a lien on revenues described in subparagraph 7,a71 subject to any lien securing project obligations4 7#f7 ,period of availability ,the full amount of a line of credit under this section1 to the extent not drawn upon1 shall be available during the #aj-year period beginning on the date of substantial completion of the project4 7#g7 ,rights of third-party creditors 7,a7 ,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 section4 7,b7 ,assignment ,an obligor may assign a line of credit under this section to-- 7i7 one or more lenders2 or 7ii7 a trustee on the behalf of such a lender4 7#h7 ,nonsubordination 7,a7 ,in general ,except as provided in subparagraph 7,b71 a direct 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,b7 ,pre-existing indenture 7i7 ,in general ,the ,assistant ,secretary shall waive the requirement of subparagraph 7,a7 for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture1 if-- 7,i7 the line of credit-- 7aa7 is rated in the ,a category or higher2 or 7bb7 in the case of a small project1 meets an alternative standard that the ,assistant ,secretary shall establish under section #f for purposes of this subclause2 7,,ii7 the ,,bifia program loan resulting from a draw on the line of credit is payable from pledged revenues not affected by project performance1 such as a tax-backed revenue pledge or a system-backed pledge of project revenues2 and 7,,iii7 the ,,bifia program share of eligible project costs is #cc percent or less4 7ii7 ,limitation ,if the ,assistant ,secretary waives the nonsubordination requirement under this subparagraph-- 7,i7 the maximum credit subsidy to be paid by the ,federal ,government shall be not more than #aj percent of the principal amount of the secured loan2 and 7,,ii7 the obligor shall be responsible for paying the remainder of the subsidy cost4 7#i7 ,fees ,the ,assistant ,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 section4 7#aj7 ,relationship to other credit instruments ,a project that receives a line of credit under this section may not also receive a secured loan or loan guarantee under section #d in an amount that1 combined with the amount of the line of credit1 exceeds #di percent of eligible project costs4 7c7 ,repayment 7#a7 ,terms and conditions ,the ,assistant ,secretary shall establish repayment terms and conditions for each direct loan under this section based on-- 7,a7 the projected cash flow from project revenues and other repayment sources2 and 7,b7 the useful life of the infrastructure for the provision of broadband service being financed4 7#b7 ,timing ,all repayments of principal or interest on a direct loan under this section shall be scheduled-- 7,a7 to commence not later than #e years after the end of the period of availability specified in subsection 7b77#f72 and 7,b7 to conclude1 with full repayment of principal and interest1 by the date that is #be years after the end of the period of availability specified in subsection 7b77#f74 #f4 ,alternative prudential lending standards for small projects ,not later than #ahj days after the date of the enactment of this ,act1 the ,assistant ,secretary shall establish alternative1 streamlined prudential lending standards for small projects receiving credit assistance under the ,,bifia program to ensure that such projects pose no additional risk to the ,federal ,government1 as compared with projects that are not small projects4 #g4 ,program administration 7a7 ,requirement ,the ,assistant ,secretary shall establish a uniform system to service the ,federal credit instruments made available under the ,,bifia program4 7b7 ,fees ,the ,assistant ,secretary may collect and spend fees1 contingent on authority being provided in appropriations ,acts1 at a level that is sufficient to cover-- 7#a7 the costs of services of expert firms retained pursuant to subsection 7d72 and 7#b7 all or a portion of the costs to the ,federal ,government of servicing the ,federal credit instruments4 7c7 ,servicer 7#a7 ,in general ,the ,assistant ,secretary may appoint a financial entity to assist the ,assistant ,secretary in servicing the ,federal credit instruments4 7#b7 ,duties ,a servicer appointed under paragraph 7#a7 shall act as the agent for the ,assistant ,secretary4 7#c7 ,fee ,a servicer appointed under paragraph 7#a7 shall receive a servicing fee1 subject to approval by the ,assistant ,secretary4 7d7 ,assistance ,from ,expert ,firms ,the ,assistant ,secretary may retain the services of expert firms1 including counsel1 in the field of municipal and project finance to assist in the underwriting and servicing of ,federal credit instruments4 7e7 ,expedited ,processing ,the ,assistant ,secretary shall implement procedures and measures to economize the time and cost involved in obtaining approval and the issuance of credit assistance under the ,,bifia program4 7f7 ,assistance to ,small ,projects ,of the amount appropriated under section #aj7;a71 and after the set-aside for administrative expenses under section #aj7;b71 not less than #bj percent shall be made available for the ,assistant ,secretary to use in lieu of fees collected under subsection 7b7 for small projects4 #h4 ,state and local permits ,the provision of credit assistance under the ,,bifia program with respect to a project shall not-- 7#a7 relieve any recipient of the 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 7including any regulation7 applicable to the construction or operation of the project4 #i4 ,regulations ,the ,assistant ,secretary may promulgate such regulations as the ,assistant ,secretary determines to be appropriate to carry out the ,,bifia program4 #aj4 ,funding 7a7 ,authorization of appropriations ,there are authorized to be appropriated to the ,assistant ,secretary to carry out this ,act #e1jjj1jjj1jjj for fiscal year #bjbj1 to remain available until expended4 7b7 ,administrative expenses ,of the amount appropriated under subsection 7a71 the ,assistant ,secretary may use not more than #e percent for the administration of the ,,bifia program4 #aa4 ,reports to ,congress 7a7 ,in ,general ,not later than #a year after the date of the enactment of this ,act1 and every #b years thereafter1 the ,assistant ,secretary shall submit to ,congress a report summarizing the financial performance of the projects that are receiving1 or have received1 assistance under the ,,bifia program1 including a recommendation as to whether the objectives of the ,,bifia program are best served by-- 7#a7 continuing the program under the authority of the ,assistant ,secretary2 or 7#b7 establishing a ,federal corporation or federally sponsored enterprise to administer the program4 7b7 ,application ,process ,report 7#a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 and annually thereafter1 the ,assistant ,secretary shall submit to the ,committee on ,energy and ,commerce of the ,house of ,representatives and the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate a report that includes a list of all of the letters of interest and applications received for assistance under the ,,bifia program during the preceding fiscal year4 7#b7 ,inclusions 7,a7 ,in general ,each report under paragraph 7#a7 shall include1 at a minimum1 a description of1 with respect to each letter of interest and application included in the report-- 7i7 the date on which the letter of interest or application was received2 7ii7 the date on which a notification was provided to the applicant regarding whether the application was complete or incomplete2 7iii7 the date on which a revised and completed application was submitted 7if applicable72 7iv7 the date on which a notification was provided to the applicant regarding whether the project was approved or disapproved2 and 7v7 if the project was not approved1 the reason for the disapproval4 7,b7 ,correspondence ,each report under paragraph 7#a7 shall include copies of any correspondence provided to the applicant in accordance with section #c7;d74