[Federal Register Volume 59, Number 68 (Friday, April 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8501]
[[Page Unknown]]
[Federal Register: April 8, 1994]
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DEPARTMENT OF TRANSPORTATION
Innovative Financing; Test and Evaluation Project TE-045;
Information
AGENCY: Federal Highway Administration (FHWA), (DOT).
ACTION: Notice.
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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
