FAST Act Overview $305 billion 5 year bill – FY ‘16 – FY ’20 FY 2016 is 6.6% above 2015 levels Overall growth of 3.2% over life of bill 92% contract authority (not subject to annual appropriations Includes for the first time, passenger rail funding New discretionary grant programs Creates a new freight program RRIF Reforms

New Freight Programs $6.3B in National Highway Freight Program Formula program Up to 10% for port projects $4.5B in Nationally Significant Freight and Highway Projects Program Discretionary program $500M available for intermodal projects including rail and port related projects State freight plans now required Establishes a National Highway Freight Network Creates a National Multimodal Freight Network o Projects must be able to commence within 18 months. o HTF resources can be diverted to freight rail projects up to a maximum of $500M over the next 5 years. · State freight plans are required, with new stipulation of a 5-year project list approximating a freight TIP o A National Freight Strategic Plan is required within 2 years, with 5 year updates

$4.5B Nationally Significant Freight and Highway Projects (NSFHP) First grant program to specifically focus on freight Not just highways Regional and national significance Public benefits $800M appropriated for FY ‘16 NOFO to be issued shortly!

NSFHP – Eligible Projects Highway freight project on the National Highway Freight Network Highway or bridge project on the National Highway System, including: Adds capacity (e.g. truck-only lanes; Chicago – crosstown expressway) National scenic area A freight project that is: Freight intermodal or freight rail project, or Within boundaries of public or private intermodal, port, or freight rail facility Only portion that benefits the public $500M limit through 2020 Rail-highway grade crossing or grade separation project

NSFHP – Key Criteria Improve safety, efficiency, and reliability Regional economic benefits and international competitiveness Reduce congestion and bottleneck Intermodal connectivity Resiliency and protect the environment Improve roadways vital to “national energy security” Mitigate community impacts Address impacts of population growth

NSFHP – Minimum Project and Grant Size Project size: $100M minimum 10% reserved for small projects Grant size $25M $5M for “small projects” 25 percent set-aside for rural projects (large or small) Eligible costs can include: Development phase activities Environmental mitigation TIFIA subsidy and administrative amounts

NSFHP – Additional Requirements “Shovel ready” Reasonably expect to commence construction in 18 months Based on results of preliminary engineering Stable and dependable source of non-federal commitment Federal share up to 60%, but additional 20% can be federally sourced Contingency amounts are available Will generate national or regional benefits Applicants – broad range of state and local governmental agencies, also tribes, and multi-state and multi-jurisdictional entities

National Surface Transportation and Innovative Finance Bureau Established in Office of the Secretary and Administers TIFIA RRIF Private Activity Bonds Nationally Significant Freight and Highway Program Develops innovative financing best practices Serves as Departmental liaison for environmental permitting & reviews The new Finance Bureau will: · Administer RRIF, TIFIA and nationally significant freight highway projects programs for the Department. · Perform the role of the Secretary in private activity bond allocation · Develop innovative financing best practices · Serve as DOT liaison for environmental policy and process improvement in environmental review and permitting. Almost an infrastructure bank. We have done a lot of work for the BATIC – which this continues. There is broadened eligibility for projects as small as $10 million, including transit oriented development projects – also now eligible under RRIF. States may use loans from the TIFIA program to capitalize state infrastructure banks.

RRIF Changes Streamlines USDOT’s approval processes But credit risk premium no longer subject to repayment, except outstanding loans Expands eligibility to include TOD. Maximum term of 35 years from substantial completion Principal deferment of up to 5 years from substantial completion Master credit agreement provision allows RRIF to support a program of projects, and advance loan commitments Sets deadlines for review and approval of applications.