federal tools for financing idle reduction federal highway administration national resource center...
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![Page 1: Federal Tools for Financing Idle Reduction Federal Highway Administration National Resource Center Jennifer R. Mayer Jennifer.mayer@fhwa.dot.gov (415)744-2634](https://reader036.vdocument.in/reader036/viewer/2022082821/5697bfc81a28abf838ca87e3/html5/thumbnails/1.jpg)
Federal Tools for Financing Idle Reduction
Federal Highway AdministrationNational Resource CenterJennifer R. [email protected]
(415)744-2634
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Innovative Financial Tools
State-Based Tools CMAQ funds State Infrastructure Banks (SIBs) Section 129 Loans GARVEEs
Federal-Based ToolsTransportation Infrastructure Finance
and Innovation Act (TIFIA)
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Common Aspects of Tools
Must be eligible for federal funds under Title 23 of the United States Code (typically CMAQ)Must follow federal requirements (although some flexibility for private projects)All roads usually lead to state DOTs except for TIFIA
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State Infrastructure Banks
State DOTs often have these banks, which are a federally-capitalized fund source of low-cost financing for eligible projectsMaximum loan term is 35 years; interest rate set by stateCan make a large project affordable for a nonprofit or local community (I.e., $200,000 over 30 years at 5% interest = a mortgage payment).
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Flow of Funds – State Infrastructure Banks
Federal Aid (80%)Initial
Projects
Second RoundProjects
CapitalizationGrants
Loans
Loans
Repayments
Repayments2
1
3
4
Initial
Second RoundSIB
Products Available:
•Direct Loans
•Credit Enhancements
•Other
State funds (20%)
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SECTION 129 LOAN EXAMPLE
PROJECTSPONSOR
STATE DOT
$10 million loan$ 8 million Federal-aid$ 2 million match
Repaymentsfrom any dedicatedsource
*Can use repayments for any Title 23 project
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GARVEEs
Permits states to borrow against future Federal-aid fundingStates pay debt payments with Federal aidAlso spreads out cost of expensive projects over many years
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TIFIA (Direct Federal Credit)
Transportation Infrastructure Finance and Innovation Act (TIFIA)Currently limited to $100 million or greater size (proposed $50 million)CMAQ-eligible projects can apply (and have!)
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For More Information
Contact your local FHWA Division Office (one in every state capital)For financial questions, contact Jennifer Mayer at the FHWA National Resource Center, (415)744-2634, [email protected]