Collapse to view only § 16371. Definitions
- § 16371. Definitions
- § 16372. Determination of eligibility and project selection
- § 16373. Secured loans
- § 16374. Future growth grants
- § 16375. Program administration
- § 16376. State and local permits
- § 16377. Regulations
- § 16378. Authorization of appropriations; contract authority
§ 16371. DefinitionsIn this part:
(1) CIFIA program
(2) Common carrierThe term “common carrier” means a transportation infrastructure operator or owner that—
(A) publishes a publicly available tariff containing the just and reasonable rates, terms, and conditions of nondiscriminatory service; and
(B) holds itself out to provide transportation services to the public for a fee.
(3) Contingent commitmentThe term “contingent commitment” means a commitment to obligate funds from future available budget authority that is—
(A) contingent on those funds being made available in law at a future date; and
(B) not an obligation of the Federal Government.
(4) Eligible project costsThe term “eligible project costs” means amounts substantially all of which are paid by, or for the account of, an obligor in connection with a project, including—
(A) the cost of—
(i) development-phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;
(ii) construction, reconstruction, rehabilitation, replacement, and acquisition of real property (including land relating to the project and improvements to land), environmental mitigation, construction contingencies, and acquisition and installation of equipment (including labor); and
(iii) capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction; and
(B) transaction costs associated with financing the project, including—
(i) the cost of legal counsel and technical consultants; and
(ii) any subsidy amount paid in accordance with section 16372(c)(3)(B)(ii) of this title or section 16373(b)(6)(B)(ii) of this title.
(5) Federal credit instrument
(6) Lender
(7) Letter of interestThe term “letter of interest” means a letter submitted by a potential applicant prior to an application for credit assistance in a format prescribed by the Secretary on the website of the CIFIA program that—
(A) describes the project and the location, purpose, and cost of the project;
(B) outlines the proposed financial plan, including the requested credit and grant assistance and the proposed obligor;
(C) provides a status of environmental review; and
(D) provides information regarding satisfaction of other eligibility requirements of the CIFIA program.
(8) Loan guarantee
(9) Master credit agreementThe term “master credit agreement” means a conditional agreement that—
(A) is for the purpose of extending credit assistance for—
(i) a project of high priority under section 16372(c)(3)(A) of this title; or
(ii) a project covered under section 16372(c)(3)(B) of this title;
(B) does not provide for a current obligation of Federal funds; and
(C) would—
(i) make a contingent commitment of a Federal credit instrument or grant at a future date, subject to—(I) the availability of future funds being made available to carry out the CIFIA program; and(II) the satisfaction of all conditions for the provision of credit assistance under the CIFIA program, including section 16373(b) of this title;
(ii) establish the maximum amounts and general terms and conditions of the Federal credit instruments or grants;
(iii) identify the 1 or more revenue sources that will secure the repayment of the Federal credit instruments;
(iv) provide for the obligation of funds for the Federal credit instruments or grants after all requirements have been met for the projects subject to the agreement, including—(I) compliance with all applicable requirements specified under the CIFIA program, including sections 16372(d) and 16373(b)(1) of this title; and(II) the availability of funds to carry out the CIFIA program; and
(v) require that contingent commitments shall result in a financial close and obligation of credit or grant assistance by not later than 4 years after the date of entry into the agreement or release of the commitment, as applicable, unless otherwise extended by the Secretary.
(10) Obligor
(11) Produced in the United States
(12) Project
(13) Project obligation
(14) Secured loan
(15) Subsidy amountThe 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—
(A) calculated on a net present value basis; and
(B) excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
(16) Substantial completionThe term “substantial completion”, with respect to a project, means the date—
(A) on which the project commences transportation of carbon dioxide; or
(B) of a comparable event to the event described in subparagraph (A), as determined by the Secretary and specified in the project credit agreement.
(Pub. L. 109–58, title IX, § 999A, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 988.)
§ 16372. Determination of eligibility and project selection
(a) Establishment of programThe Secretary shall establish and carry out a carbon dioxide transportation infrastructure finance and innovation program, under which the Secretary shall provide for eligible projects in accordance with this part—
(1) a Federal credit instrument under section 16373 of this title;
(2) a grant under section 16374 of this title; or
(3) both a Federal credit instrument and a grant.
(b) Eligibility
(1) In generalA project shall be eligible to receive a Federal credit instrument or a grant under the CIFIA program if—
(A) the entity proposing to carry out the project submits a letter of interest prior to submission of an application under paragraph (3) for the project; and
(B) the project meets the criteria described in this subsection.
(2) Creditworthiness
(A) In general
(B) Reasonable prospect of repaymentThe Secretary shall base a determination of whether there is a reasonable prospect of repayment under subparagraph (A) on a comprehensive evaluation of whether the obligor has a reasonable prospect of repaying the Federal credit instrument for the eligible project, including evaluation of—
(i) the strength of the contractual terms of an eligible project (if available for the applicable market segment);
(ii) the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary, and cash sweeps or other structural enhancements;
(iii)(I) at the time of loan close; and(II) throughout the loan term, including after the project is completed;
(iv) the financial strength of the investors and strategic partners of the obligor, if applicable; and
(v) other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies, as determined appropriate by the Secretary.
(3) Applications
(4) Eligible project costs
(5) Revenue sourcesThe applicable Federal credit instrument shall be repayable, in whole or in part, from—
(A) user fees;
(B) payments owing to the obligor under a public-private partnership; or
(C) other revenue sources that also secure or fund the project obligations.
(6) Obligor will be identified laterA State, local government, agency, or instrumentality of a State or local government, or a public authority, may submit to the Secretary an application under paragraph (3), under which a private party to a public-private partnership will be—
(A) the obligor; and
(B) identified at a later date through completion of a procurement and selection of the private party.
(7) Beneficial effectsThe Secretary shall determine that financial assistance for each project under the CIFIA program will—
(A) attract public or private investment for the project; or
(B) enable the project to proceed at an earlier date than the project would otherwise be able to proceed or reduce the lifecycle costs (including debt service costs) of the project.
(8) Project readiness
(c) Selection among eligible projects
(1) Establishment of application processThe Secretary shall establish an application process under which projects that are eligible to receive assistance under subsection (b) may—
(A) receive credit assistance on terms acceptable to the Secretary, if adequate funds are available (including any funds provided on behalf of an eligible project under paragraph (3)(B)(ii)) to cover the subsidy amount associated with the Federal credit instrument; and
(B) receive grants under section 16374 of this title if—
(i) adequate funds are available to cover the amount of the grant; and
(ii) the Secretary determines that the project is eligible under subsection (b).
(2) PriorityIn selecting projects to receive credit assistance under subsection (b), the Secretary shall give priority to projects that—
(A) are large-capacity, common carrier infrastructure;
(B) have demonstrated demand for use of the infrastructure by associated projects that capture carbon dioxide from anthropogenic sources or ambient air;
(C) enable geographical diversity in associated projects that capture carbon dioxide from anthropogenic sources or ambient air, with the goal of enabling projects in all major carbon dioxide-emitting regions of the United States; and
(D) are sited within, or adjacent to, existing pipeline or other linear infrastructure corridors, in a manner that minimizes environmental disturbance and other siting concerns.
(3) Master credit agreements
(A) Priority projectsThe Secretary may enter into a master credit agreement for a project that the Secretary determines—
(i) will likely be eligible for credit assistance under subsection (b), on obtaining—(I) additional commitments from associated carbon capture projects to use the project; or(II) all necessary permits and approvals; and
(ii) is a project of high priority, as determined in accordance with the criteria described in paragraph (2).
(B) Adequate funding not availableIf the Secretary fully obligates funding to eligible projects for a fiscal year and adequate funding is not available to fund a Federal credit instrument, a project sponsor (including a unit of State or local government) of an eligible project may elect—
(i)(I) to enter into a master credit agreement in lieu of the Federal credit instrument; and(II) to wait to execute a Federal credit instrument until the fiscal year for which additional funds are available to receive credit assistance; or
(ii) if the lack of adequate funding is solely with respect to amounts available for the subsidy amount, to pay the subsidy amount to fund the Federal credit instrument.
(d) Federal requirements
(1) In general
(2) NEPA
(e) Use of American iron, steel, and manufactured goods
(1) In general
(2) ExceptionsParagraph (1) shall not apply in any case or category of cases with respect to which the Secretary determines that—
(A) the application would be inconsistent with the public interest;
(B) iron, steel, or a relevant manufactured good is not produced in the United States in sufficient and reasonably available quantity, or of a satisfactory quality; or
(C) the inclusion of iron, steel, or a manufactured good produced in the United States will increase the cost of the overall project by more than 25 percent.
(3) WaiversIf the Secretary receives a request for a waiver under this subsection, the Secretary shall—
(A) make available to the public a copy of the request, together with any information available to the Secretary concerning the request—
(i) on an informal basis; and
(ii) by electronic means, including on the official public website of the Department;
(B) allow for informal public comment relating to the request for not fewer than 15 days before making a determination with respect to the request; and
(C) approve or disapprove the request by not later than the date that is 120 days after the date of receipt of the request.
(4) Applicability
(f) Application processing procedures
(1) Notice of complete applicationNot later than 30 days after the date of receipt of an application under this section, the Secretary shall provide to the applicant a written notice describing whether—
(A) the application is complete; or
(B) additional information or materials are needed to complete the application.
(2) Approval or denial of application
(g) Development-phase activities
(Pub. L. 109–58, title IX, § 999B, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 991.)
§ 16373. Secured loans
(a) Agreements
(1) In generalSubject to paragraph (2), the Secretary may enter into agreements with 1 or more obligors to make secured loans, the proceeds of which—
(A) shall be used—
(i) to finance eligible project costs of any project selected under section 16372 of this title;
(ii) to refinance interim construction financing of eligible project costs of any project selected under section 16372 of this title; or
(iii) to refinance long-term project obligations or Federal credit instruments, if the refinancing provides additional funding capacity for the completion, enhancement, or expansion of any project that—(I) is selected under section 16372 of this title; or(II) otherwise meets the requirements of that section; and
(B) may be used in accordance with subsection (b)(7) to pay any fees collected by the Secretary under subparagraph (B) of that subsection.
(2) Risk assessment
(b) Terms and limitations
(1) In general
(2) Maximum amount
(3) PaymentA secured loan under this section shall be payable, in whole or in part, from—
(A) user fees;
(B) payments owing to the obligor under a public-private partnership; or
(C) other revenue sources that also secure or fund the project obligations.
(4) Interest rate
(A) In general
(B) Limited buydowns
(i) In generalSubject to clause (iii), the Secretary may lower the interest rate of a secured loan under this section to not lower than the interest rate described in clause (ii), if the interest rate has increased during the period—(I) beginning on, as applicable—(aa) the date on which an application acceptable to the Secretary is submitted for the applicable project; or(bb) the date on which the Secretary entered into a master credit agreement for the applicable project; and(II) ending on the date on which the Secretary executes the Federal credit instrument for the applicable project that is the subject of the secured loan.
(ii) Description of interest rateThe interest rate referred to in clause (i) is the interest rate reflected in the yield on United States Treasury securities of a similar maturity to the maturity of the secured loan in effect, as applicable to the project that is the subject of the secured loan, on—(I) the date described in clause (i)(I)(aa); or(II) the date described in clause (i)(I)(bb).
(iii) Limitation
(5) Maturity dateThe final maturity date of the secured loan shall be the earlier of—
(A) the date that is 35 years after the date of substantial completion of the project; and
(B) if the useful life of the capital asset being financed is of a lesser period, the date that is the end of the useful life of the asset.
(6) Nonsubordination
(A) In general
(B) Preexisting indenture
(i) In generalThe Secretary shall waive the requirement under subparagraph (A) for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture, if—(I) the secured loan is rated in the A category or higher; and(II) the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues.
(ii) LimitationIf the Secretary waives the nonsubordination requirement under this subparagraph—(I) the maximum credit subsidy amount to be paid by the Federal Government shall be not more than 10 percent of the principal amount of the secured loan; and(II) the obligor shall be responsible for paying the remainder of the subsidy amount, if any.
(7) Fees
(A) In general
(B) Amendment to add cost of fees to secured loan
(8) Maximum Federal involvement
(c) Repayment
(1) ScheduleThe Secretary shall establish a repayment schedule for each secured loan under this section based on—
(A) the projected cash flow from project revenues and other repayment sources; and
(B) the useful life of the project.
(2) Commencement
(3) Deferred payments
(A) In general
(B) InterestAny payment deferred under subparagraph (A) shall—
(i) continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and
(ii) be scheduled to be amortized over the remaining term of the loan.
(C) Criteria
(i) In general
(ii) Repayment standards
(4) Prepayment
(A) Use of excess revenues
(B) Use of proceeds of refinancing
(d) Sale of secured loans
(1) In general
(2) Consent of obligor
(e) Loan guarantees
(1) In general
(2) Terms
(Pub. L. 109–58, title IX, § 999C, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 995.)
§ 16374. Future growth grants
(a) Establishment
The Secretary may provide grants to pay a portion of the cost differential, with respect to any projected future increase in demand for carbon dioxide transportation by an infrastructure project described in subsection (b), between—
(1) the cost of constructing the infrastructure asset with the capacity to transport an increased flow rate of carbon dioxide, as made practicable under the project; and
(2) the cost of constructing the infrastructure asset with the capacity to transport carbon dioxide at the flow rate initially required, based on commitments for the use of the asset.
(b) Eligibility
To be eligible to receive a grant under this section, an entity shall—
(1) be eligible to receive credit assistance under the CIFIA program;
(2) carry out, or propose to carry out, a project for large-capacity, common carrier infrastructure with a probable future increase in demand for carbon dioxide transportation; and
(3) submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines to be appropriate.
(c) Use of funds
(d) Maximum amount
(Pub. L. 109–58, title IX, § 999D, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 998.)
§ 16375. Program administration
(a) Requirement
(b) Fees
(c) Servicer
(1) In general
(2) Duties
(3) Fee
(d) Assistance from expert firms
(e) Expedited processing
(Pub. L. 109–58, title IX, § 999E, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 999.)
§ 16376. State and local permits
The provision of credit assistance under the CIFIA program with respect to a project shall not—
(1) relieve any recipient of the assistance of any project obligation to obtain any required State or local permit or approval with respect to the project;
(2) 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 project; or
(3) otherwise supersede any State or local law (including any regulation) applicable to the construction or operation of the project.
(Pub. L. 109–58, title IX, § 999F, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 999.)
§ 16377. Regulations
The Secretary may promulgate such regulations as the Secretary determines to be appropriate to carry out the CIFIA program.
(Pub. L. 109–58, title IX, § 999G, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 1000.)
§ 16378. Authorization of appropriations; contract authority
(a) Authorization of appropriations
(1) In general
There are authorized to be appropriated to the Secretary to carry out this part—
(A) $600,000,000 for each of fiscal years 2022 and 2023; and
(B) $300,000,000 for each of fiscal years 2024 through 2026.
(2) Spending and borrowing authority
(3) Reestimates
(4) Administrative costs
(b) Contract authority
(1) In general
(2) Availability
(Pub. L. 109–58, title IX, § 999H, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 1000.)