ISTEA HELP FOR LARGE PROJECTS, MAYBE

No matter what happens with funding levels and formulas, transportation lobbyists say two innovative finance bills are likely to be on the table late this fall as trade bait during the House-Senate conference on the reauthorization of the Intermodal Surface Transportation Efficiency Act (ISTEA). The Transportation Infrastructure Finance and Innovation Act of 1997 (TIFIA) would provide $530 million from the Highway Trust Fund over 6 years for the U.S. Department of Transportation to make long-term loans, guarantees, or credit assistance. The credits would be issued to public entities at Treasury rates for up to one-third the expected cost of large road, rail, and port projects of national or regional significance. The Highway Infrastructure Privatization Act (HIPA) would allow the Treasury Department to select up to 15 public-private toll highway demonstration projects to be financed using tax-exempt debt that would not be subject to state volume caps on private activity bonds.