The U.S. Department of Transportation (USDOT) is accepting applications from sponsors interested in receiving authority to use a portion of the $30 billion in Private Activity Bonds (PABs) available. While USDOT has not specified a fixed format for PAB applications, it has identified several pieces of information that would help facilitate its consideration of applications. These include:

• Amount of Allocation Requested

• Proposed Date of Bond Issuance
  • The approximate date when the tax-exempt bonds are anticipated to be issued should USDOT allocate the authority to do so.
• Date of Inducement by the Bond Issuer
  • A copy of a resolution adopted in accordance with state or local law authorizing the issuance of a specific issue of obligations. The resolution may state that the issuance of obligations is contingent upon receipt of an allocation from the USDOT Secretary.
• Draft Bond Counsel Opinion Letter
  • Form of Bond Counsel Opinion or date by which a draft letter will be submitted.
• Financing/Development Team Information
  • The names of the issuer of the bonds and any other key participants in the financing, with complete contact information, including Federal taxpayer identification numbers.
• Borrower Information
  • For each borrower, the official business name, ownership, legal structure (corporation, partnership, or sole proprietorship), Federal taxpayer identification number, and prior experience as it relates to carrying out projects similar to that proposed. For the purposes of this Notice, the term "borrower" includes any borrower of the bond proceeds or any other entity responsible for repaying the bonds.
• Project Description
  • Description of the project as a whole and the proposed organizational and legal structure of the project (ownership, franchise or lease arrangements, etc.). Describe the portion of the project and all capital assets to be funded with the proceeds of the exempt facility bonds. If the application is for an international bridge or tunnel under section 142(m)(1)(B), the project description should include a representation that the international entity that has responsibility for the project is authorized under Federal or state law.
• Project Schedule
  • A timeline showing the estimated start and completion dates for each major phase or milestone of project development. Indicate the current status of milestones on this timeline, including all necessary permits and environmental approvals.
• Financial Structure
  • A statement of anticipated sources and uses of funds for the project, including separate line items, as applicable, for proceeds of exempt facility bonds or other borrowing, federal grants, state and local grants, other credit assistance, and private investment. Provide sources of security and repayment for the bonds. Provide information on sources of security and repayment for the bonds. If your project's funding plan includes federal grants, please indicate the program's name that provided the funding (formula funds or federal discretionary grant programs).
• Description of Title 23/49 funding received by the project
  • The date (or anticipated date) of receipt, types, and amount of financial assistance.
• Project Readiness
  • Description of the financing/development team's capacity to undertake this project. Discuss readiness to begin the project. List all major permits and approvals necessary for the construction of the project and the date, or projected date, of the receipt of such permits or approvals. Include information on the engineering work and procurement of construction.
• Signatures
  • Applications should be signed by a duly authorized representative of the proposed issuer and a duly authorized representative of each proposed borrower. The proposed issuer or the proposed borrower may submit applications.
• Declarations
  • Each application, including any supporting reports or other document, should include the following declaration signed by an individual who has personal knowledge of the relevant facts and circumstances: "Under penalties of perjury, I declare that I have examined this document and, to the best of my knowledge and belief, the document contains all the relevant facts relating to the document, and such facts are true, correct, and complete."
• Addresses
  • Applications should be submitted to: BuildAmerica@dot.gov

Review of Applications

Upon receipt, USDOT will consider applications in light of applicable statutory requirements and the availability of tax-exempt authority for the type and location of the project for which the allocation is requested. If needed, USDOT will contact the applicant to arrange for the submission of additional required information. Applicants should note that there are no specific standards beyond those set forth in applicable laws or regulations that apply when considering the applications. The intent is to provide maximum flexibility for USDOT's award of the $30 billion bonding authority. USDOT is particularly concerned that tax-exempt facility bonds are issued promptly once an allocation is made. Hence, the allocation may be withdrawn if the schedules agreed upon in the final allocation action are not met.