Innovative Financing; Test and Evaluation Project TE-045; Information |
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Rodney E. Slater
Federal Highway Administration
April 8, 1994
[Federal Register Volume 59, Number 68 (Friday, April 8, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: 94-8501] [[Page Unknown]] [Federal Register: April 8, 1994] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Innovative Financing; Test and Evaluation Project TE-045; Information AGENCY: Federal Highway Administration (FHWA), (DOT). ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The purpose of this notice is to assure wide dissemination of information about the FHWA Innovative Financing-Test and Evaluation Project TE-045. The FHWA, which established this project by a March 14, 1994, memorandum to its regional and division offices, is publishing the memorandum. The FHWA's authority to advance this project is contained in 23 U.S.C. 307(a) and is part of the FHWA implementation of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) (Pub. L. 102-240, 105 Stat. 1914). FOR FURTHER INFORMATION CONTACT: Specific questions on FHWA innovative financing; Test and Evaluation Project TE-045 should be directed to the contact persons named in the memorandum or to FHWA Regional Office or FHWA Division Office in your State. Issued on: April 4, 1994. Rodney E. Slater, Federal Highway Administrator. Memorandum U.S. Department of Transportation, Federal Highway Administration, Date: March 14, 1994. Innovative Financing--Test and Evaluation Project, TE-045, From: Administrator. Foreword The President's vision for long-term prosperity for the Nation means investing in America. That investment includes transportation. Our network of highways sustains our economy and ties our country together by ensuring the safe and rapid transport of people and products. Executive Order 12893, ``Principles for Federal Infrastructure Investments,'' signed by the President on January 26, 1994, signals the Administration's belief that investment in transportation will lay the foundation for economic growth in the next century. The challenge is to encourage prudent investment, to tap into the potential of global competitiveness, and to boldly create a dynamic period of construction within the budgetary constraints facing all levels of government. Secretary Pena, responding to that challenge, has asked us to explore innovative ways to meet the transportation needs of the Nation. In support of the Secretary's initiative, FHWA has formed an Innovative Financing Task Force. The Task Force recognizes that the Intermodal Surface Transportation Efficiency Act (ISTEA) provides the States with new flexibility for funding their surface transportation capital programs. While the States have been strong supporters of the flexibility provided by ISTEA and have demonstrated an increasing use of this flexibility, the complexity and newness of some financing issues have challenged their ability to use the innovative financing provisions. The goal for FHWA is to identify additional actions, including establishing incentives and the removal of existing barriers, to encourage States, private investors, and the financial community to increase investment in transportation. The FHWA can provide national leadership on innovative financing with the States by creating a record of achievement. We believe the best approach to this challenge is to identify specific projects, develop a plan of finance, and offer those projects as examples of creative financing solutions. Developing good examples is a key element of this proactive effort. To stimulate and advance such projects, I have, by this memorandum, established FHWA Test and Evaluation Project TE-045 ``Innovative Financing.'' Test and Evaluation Projects These Test and Evaluation Projects should develop innovative financing concepts which hold the most potential to increase investment or reduce public agency costs. For example, areas suggested for consideration include: 1. Broader interpretation of ISTEA section 1012 (ISTEA Toll Provisions) to permit more flexible definition of certain section 1012 terms, loan provisions, and increased local discretion, and investment opportunities; 2. More flexible interpretation of current title 23 State matching share requirements to allow ``adjustable'' matching, section 1044 ``soft-match'' credits, other changes in State matching funds, or other cash flow management modifications; 3. Increased ability to generate and use for highway purposes highway-related income from leases, lease options, air rights, license fees, easements, rights-of-way and concessions, or a combination thereof to increase the marketability of transportation investment opportunities; 4. Expanded interpretation of highway bond regulations to allow for innovative debt or credit enhancement instruments or other investment banking arrangements; 5. Use of Federal aid to promote public-private partnerships in investment, and permit more innovative contracting; and 6. Increased incentives to encourage that revenues from taxes, tolls, fees, or other sources be pledged to capital highway bonds, and/ or create transportation revolving funds. These concepts are offered as illustrations only. Other ideas with the potential to leverage investment or reduce public agency costs are encouraged and will be considered. The FHWA has general discretion to conduct financing, research and development under 23 U.S.C. 307(a). Under Test and Evaluation Projects, FHWA will make full use of ISTEA and other FHWA regulatory and statutory flexibility. TE-045 projects must comply with non-title 23 statutory and regulatory requirements such as the National Environmental Policy Act, Civil Rights, relocation assistance, and the Clean Air Act as well as with title 23 statutory and regulatory environmental requirements (e.g., section 4(f)(23 U.S.C. 138)). Proposals The proposals for candidate projects should describe: 1. The project specifics; 2. Project funding--regular Federal aid as well as other funding sources; 3. Status of major Federal clearances and design; 4. Financing innovation, and how its use on a test and evaluation basis could benefit other projects; 5. Incentives required (i.e., financial, administrative, design, project fast-tracking); 6. How the proposed project will leverage public investment in highways; and 7. The timeline for advancing the project including key milestones. Proposals must be for ISTEA-eligible projects; new construction and reconstruction projects are appropriate. Those proposals which meet major Federal clearance requirements will receive preference in the review process. Upon acceptance of a State's proposal, the project will be advanced by the FHWA offices in a normal but expedited manner. States' proposals should be submitted to the Office of the FHWA Deputy Administrator (HOA-2) through the regional and division offices with an initial submission by April 29. Questions may be directed to either Mr. Jerry Poston--HNG-12 (202) 366-0450 or Mr. Bruce Cannon-- HPP-20 (202) 366-9208. [FR Doc. 94-8501 Filed 4-7-94; 8:45 am] BILLING CODE 4910-22-P