[Federal Register Volume 66, Number 9 (Friday, January 12, 2001)]
[Rules and Regulations]
[Pages 2827-2828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-992]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
49 CFR Part 1
[OST Docket No. OST-1999 6189; Amendment-#303].
Organization and Delegation of Powers and Duties; Delegation to
the Administrator, Federal Highway Administration
AGENCY: Office of the Secretary, DOT.
ACTION: Final rule.
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SUMMARY: The Secretary of Transportation (Secretary) delegates to the
Federal Highway Administrator his authority to implement the
Transportation Infrastructure Finance and Innovation Act of 1998
(TIFIA), codified at 23 U.S.C. 181-189. The TIFIA authorizes the
Department of Transportation (``Department of Transportation'') to
provide secured direct loans, lines of credit, and loan guarantees to
public and private sponsors of eligible surface transportation
projects. The Federal Highway Administrator is delegated authority with
respect to coordination and management of the day-to-day activities
associated with implementing the TIFIA program. The Federal Highway
Administrator may further delegate this authority. The Secretary
reserves the authority to evaluate and select individual projects to
receive TIFIA assistance and reserves authority to provide overall
policy direction and key program decisions for the TIFIA program.
EFFECTIVE DATE: This rule is effective on January 12, 2001.
FOR FURTHER INFORMATION CONTACT: Gloria Hardiman-Tobin, Office of the
Chief Counsel, HCC-40, (202) 366-1397, Department of Transportation,
Federal Highway Administration, 400 Seventh Street, SW., Washington, DC
20590. Blane Workie, Office of the General Counsel, (202) 366-9314,
Department of Transportation, 400 Seventh Street, SW., Washington, DC
20590.
ELECTRONIC ACCESS: You can view and download this document by going to
the web page of the Department's Docket Management System (http://dms.dot.gov/). On that page, click on ``search.'' On the next page,
type in the last four digits of the docket number shown on the first
page of this document. Then click on ``search.'' An electronic copy of
this document also may be downloaded by using a computer, modem, and
suitable communications software from the Government Printing Office's
Electronic Bulletin Board Service at (202) 512-1661. Internet users may
reach the Office of the Federal Register's home page at: http://www.nara.gov/fedreg and the Government Printing Office's database at:
http://www.access.gpo.gov/nara.
SUPPLEMENTARY INFORMATION: The Transportation Equity Act for the 21st
Century (TEA-21), Pub. L. 105-178, 112 Stat. 241 (1998), created the
Transportation Infrastructure Finance and Innovation Act of 1998
(TIFIA). The TIFIA establishes a new Federal credit program to provide
credit assistance to surface transportation projects. The TIFIA
authorizes the Secretary to provide secured (direct) loans, lines of
credit, and loan guarantees to private and public sponsors of eligible
transportation projects.
Funding for TIFIA is limited; therefore, the projects to receive
financial assistance will be selected on a competitive basis. In fiscal
years 1999 through 2003, TIFIA authorizes $530 million to be
appropriated from the Highway Trust Fund (other than the Mass Transit
Account) for the Secretary to provide up to $10.6 billion of credit
assistance to major surface transportation projects. The TIFIA
authorizes the Secretary to select the recipients of credit assistance
and to use up to $2 million of the budget authority provided each
fiscal year for program administration.
The TEA-21 Conference Report stated, ``To ensure the financial and
programmatic success of TIFIA, the conference strongly encourages the
Secretary to establish an organizational structure within the
Department in which financial activities and programs can be closely
coordinated and monitored.'' In June 1999, consistent with the
Conference Report language, the Secretary and the Administrators of the
Federal Highway Administration (``FHWA''), the Federal Railroad
Administration (``FRA''), and the Federal Transit Administration
(``FTA'') entered into a Memorandum of Understanding (``MOU'') to
manage the TIFIA program on an interim basis through the creation of a
TIFIA Working Group.
In December 2000, the Secretary and the Administrators of FHWA,
FRA, and FTA entered into an MOU, which amended and superseded the June
1999 MOU, to establish a TIFIA Joint Program Office (``TIFIA JPO'') to
coordinate and manage the day-to-day activities associated with
implementing the TIFIA statutory provisions. According to the 2000 MOU,
the TIFIA JPO will organizationally be located within FWHA and will
have a dual reporting structure. The TIFIA JPO will report to the
Secretary for overall policy direction and key program decisions. The
TIFIA JPO will report to the Federal Highway Administrator for
coordination and management of day-to-day operations and funding
matters.
In accordance with the December 2000 MOU, the Secretary is
delegating his authority to operate and manage the financial assistance
program under TIFIA to the Federal Highway Administrator. Operation and
management of the program consists of the initial evaluation of each
project, the negotiation and preparation of the legal documents
necessary to consummate the transaction, and the continuing oversight
of the project.
For instance, the Federal Highway Administrator will act as the
Executive Agent for the TIFIA Program and will be responsible for
managing the TIFIA funds, which are authorized to be appropriated from
the Highway Trust Fund (other than the Mass Transit Account), with
assistance from the other modal agencies and the TIFIA JPO. The Federal
Highway Administrator will also manage specific accounting and
budgeting activities to include: recording credit agreement obligations
into the accounting system; preparing requests for and entering into
loan agreements with the U.S. Treasury to borrow funds; receiving
borrower requests (original documents) for fund disbursements;
disbursing funds to borrowers; collecting and depositing payments from
borrowers; making interest payments to the U.S. Treasury for borrowed
funds; and satisfying other necessary budgetary and reporting
requirements in accordance with the Federal Credit Reform Act (FCRA)
and other relevant laws, regulations, and OMB guidelines.
Further, the Federal Highway Administrator will procure any
necessary financial, legal, or other technical support services to
assist in implementing and administering the TIFIA program and will
execute all TIFIA credit instruments, including, but not limited to,
term sheets, loan agreements, line of credit agreements, and loan
guarantee agreements under delegated authority from the Secretary to
the Federal Highway Administrator.
[[Page 2828]]
This delegation to the Federal Highway Administrator does not
affect the authority or responsibility of the Secretary to develop
credit policy and make the final selection of the projects receiving
assistance. The Secretary and the Administrators of FHWA, FRA, and FTA
intend to create a TIFIA Credit Council that will assist the Secretary
in establishing overall policy direction and key program decisions for
the TIFIA Program. The TIFIA Credit Council, with the approval of the
Secretary, will select individual projects to receive TIFIA assistance,
based on the analyses and recommendations of the TIFIA JPO. Formal
membership of the TIFIA Credit Council will include the following:
Assistant Secretary for Budget and Programs; Assistant Secretary for
Transportation Policy; Director of the Office of Intermodalism; General
Counsel; and, Administrators of FHWA, FRA and FTA. The TIFIA Credit
Council will be chaired by the Assistant Secretary for Budget and
Programs.
Since this amendment relates to Departmental organization,
procedure, and practice, notice and comment on it are unnecessary under
5 U.S.C. 553(b). Efficient execution of the TIFIA JPO is instrumental
to ensuring the financial and programmatic success of TIFIA. This
delegation of authority assists the Federal Highway Administrator in
establishing an organizational structure within the FHWA in which
financial activities and programs can be closely coordinated and
monitored. Further, since the amendment expedites the Department of
Transportation's ability to meet the statutory intent of the
Transportation Infrastructure Finance and Innovation Act of 1998, the
Secretary finds good cause under 5 U.S.C. 553(d)(3) for the final rule
to be effective on the date of publication in the Federal Register.
List of Subjects in 49 CFR Part 1
Authority delegations (Government agencies), Organization and
functions (Government agencies).
In consideration of the foregoing, Part 1 of Title 49, Code of
Federal Regulations, is amended, effective upon publication, to read as
follows:
PART 1--[AMENDED]
1. The authority citation for Part 1 continues to read as follows:
Authority: 49 U.S.C. 322; 46 U.S.C. 2104(a); 28 U.S.C. 2672; 31 U.S.C.
3711 (a) (2); Pub. L. 101-552, 104 Stat.2736; Pub. L. No. 106-159, 113
Stat. 1748
2. In Sec. 1.48, add paragraph (nn) to read as follows:
Sec. 1.48 Delegations to Federal Highway Administrator.
* * * * *
(nn) Carry out the functions and exercise the authority vested in
the Secretary by sections 1501-1504 of Public Law 105-178, 112 Stat.
241, titled Transportation Infrastructure Finance and Innovation Act of
1998 (TIFIA), to manage the day-to-day activities associated with
implementation of the TIFIA program. The Federal Highway Administrator
may further delegate this authority.
Issued on: January 5, 2001.
Rodney E. Slater,
Secretary of Transportation.
[FR Doc. 01-992 Filed 1-11-01; 8:45 am]
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