text: SECTION 1. SHORT TITLE; REFERENCES.
  
      (a) Short Title.--This Act may be cited as the ``Railroad 
  Infrastructure Financing Improvement Act''.
      (b) References to the Railroad Revitalization and Regulatory Reform 
  Act of 1976.--Except as otherwise expressly provided, wherever in this 
  Act an amendment or repeal is expressed in terms of an amendment to, or 
  repeal of, a section or other provision, the reference shall be 
  considered to be made to a section or other provision of the Railroad 
  Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 801 et 
  seq.).
  
  SEC. 2. DEFINITIONS.
  
      Section 501 (45 U.S.C. 821) is amended--
              (1) by redesignating paragraph (8) as paragraph (10);
              (2) by redesignating paragraphs (6) and (7) as paragraphs 
          (7) and (8), respectively;
              (3) by inserting after paragraph (5) the following:
              ``(6) The term `investment-grade rating' means a rating of 
          BBB minus, Baa 3, bbb minus, BBB(low), or higher assigned by a 
          rating agency.'';
              (4) by inserting after paragraph (8), as redesignated, the 
          following:
              ``(9) The term `master credit agreement' means an agreement 
          to make 1 or more direct loans or loan guarantees at future 
          dates for a program of related projects secured by a common 
          security pledge on terms acceptable to the Secretary.''; and
              (5) by adding at the end the following:
              ``(11) The term `project obligation' means as note, bond, 
          debenture, or other debt obligation issued by a borrower in 
          connection with the financing of a project, other than a direct 
          loan or loan guarantee under this title.
              ``(12) The term `railroad' has the meaning given the term 
          `railroad carrier' in section 20102 of title 49, United States 
          Code.
              ``(13) The term `rating agency' means a credit rating 
          agency registered with the Securities and Exchange Commission 
          as a nationally recognized statistical rating organization (as 
          defined in section 3(a) of the Securities Exchange Act of 1934 
          (15 U.S.C. 78c(a))).
              ``(14) The term `substantial completion' means--
                      ``(A) the opening of a project to passenger or 
                  freight traffic; or
                      ``(B) a comparable event, as determined by the 
                  Secretary and specified in the direct loan.''.
  
  SEC. 3. ELIGIBLE APPLICANTS.
  
      Section 502(a) (45 U.S.C. 822(a)) is amended--
              (1) in paragraph (5), by striking ``one railroad; and'' and 
          inserting ``1 of the entities described in paragraph (1), (2), 
          (3), (4), or (6);'';
              (2) by amending paragraph (6) to read as follows:
              ``(6) solely for the purpose of constructing a rail 
          connection between a plant or facility and a rail carrier, 
          limited option freight shippers that own or operate a plant or 
          other facility; and''; and
              (3) by adding at the end the following:
              ``(7) any obligor, as designated by an entity otherwise 
          eligible to receive a direct loan or loan guarantee under this 
          section, including a special purpose entity receiving user fees 
          or other payments or revenues from dedicated sources for debt 
          service and maintenance of the equipment or facilities to be 
          acquired or improved; and
              ``(8) solely for a project described in subsection 
          (b)(1)(D), a public-private partnership, private entity, or 
          consortium that specializes in real estate development.''.
  
  SEC. 4. ELIGIBLE PURPOSES.
  
      Section 502(b)(1) (45 U.S.C. 822(b)(1)) is amended--
              (1) in subparagraph (A), by inserting ``, and including 
          costs related to these activities and excluding operating 
          expenses'' after ``shops'';
              (2) in subparagraph (B), by striking ``subparagraph (A); 
          or'' and inserting ``subparagraph (A) or (C);'';
              (3) in subparagraph (C), by striking the period at the end 
          and inserting ``; or''; and
              (4) by adding at the end the following:
                      ``(D) finance economic development, including 
                  commercial and residential development, and related 
                  infrastructure and activities, that--
                              ``(i) incorporates private investment;
                              ``(ii) is physically or functionally 
                          related to a passenger rail station or 
                          multimodal station; and
                              ``(iii) is likely to increase ridership at 
                          that station.''.
  
  SEC. 5. PROGRAM ADMINISTRATION.
  
      (a) Application Processing Procedures.--Section 502(i) (45 U.S.C. 
  822(i)) is amended to read as follows:
      ``(i) Application Processing Procedures.--
              ``(1) Application status notices.--Not later than 30 days 
          after the date that the Secretary receives an application under 
          this section, the Secretary shall provide the applicant written 
          notice as to whether the application is complete or incomplete.
              ``(2) Incomplete applications.--If the Secretary determines 
          that an application is incomplete, the Secretary shall--
                      ``(A) provide the applicant with a description of 
                  all of the specific information or material that is 
                  needed to complete the application; and
                      ``(B) allow the applicant to resubmit the 
                  information and material described under subparagraph 
                  (A) to complete the application without prejudice.
              ``(3) Application approvals and disapprovals.--Not later 
          than 60 days after the date the Secretary notifies an applicant 
          that an application is complete under paragraph (1), the 
          Secretary shall provide the applicant written notice as to 
          whether the Secretary has approved or disapproved the 
          application.
              ``(4) Expedited processing.--The Secretary shall implement 
          procedures and measures to economize the time and cost involved 
          in obtaining an approval or a disapproval of credit assistance 
          under this title.''.
      (b) Administration of Direct Loans and Loan Guarantees.--Section 
  503 (45 U.S.C. 823) is amended--
              (1) in subsection (a), by striking the period at the end 
          and inserting ``, including a program guide and standard term 
          sheet, application deadlines, and specific timetables.'';
              (2) by redesignating subsections (c) through (l) as 
          subsections (d) through (m), respectively;
              (3) by striking ``(b) Assignment of Loan Guarantees.--'' 
          and inserting ``(c) Assignment of Loan Guarantees.--'';
              (4) in subsection (d), as redesignated--
                      (A) in paragraph (1), by striking ``; and'' and 
                  inserting a semicolon;
                      (B) in paragraph (2), by striking the period at the 
                  end and inserting ``; and''; and
                      (C) by adding at the end the following:
              ``(3) the modification cost has been covered under section 
          502(f).''; and
              (5) by amending subsection (l), as redesignated, to read as 
          follows:
      ``(l) Charges.--
              ``(1) Purposes.--The Secretary may collect from each 
          applicant a reasonable charge for--
                      ``(A) the cost of evaluating the application, 
                  amendments, modifications, and waivers, including 
                  appraisal of the value of the equipment or facilities 
                  for which the direct loan or loan guarantee is sought, 
                  and for making necessary determinations and findings;
                      ``(B) the cost of award management and project 
                  management oversight;
                      ``(C) the cost of services from expert firms, 
                  including counsel, in the field of railroad, municipal, 
                  and project finance, to assist in the underwriting, 
                  auditing, servicing, and exercise of rights with 
                  respect to direct loans and loan guarantees; and
                      ``(D) the cost of all other expenses incurred as a 
                  result of a breach of any term or condition or any 
                  event of default on a direct loan or loan guarantee.
              ``(2) Standards.--The Secretary shall prescribe standards 
          for applying a charge under this subsection to ensure that it 
          does not prevent an applicant from having adequate access to 
          direct loans and loan guarantees under this title.
              ``(3) Safety and operations account.--Amounts collected 
          under this subsection shall be credited directly to the Safety 
          and Operations account of the Federal Railroad Administration, 
          and shall remain available until expended to pay for the costs 
          described in this subsection.''.
  
  SEC. 6. LOAN TERMS AND REPAYMENT.
  
      (a) Prerequisites for Assistance.--Section 502(g)(1) (45 U.S.C. 
  822(g)(1)) is amended by striking ``35 years from the date of its 
  execution'' and inserting ``the lesser of 50 years or 90 percent of the 
  estimated useful life of the rail equipment or facilities to be 
  acquired, rehabilitated, improved, developed, or established''.
      (b) Repayment Schedules.--Section 502(j) (45 U.S.C. 822(j)) is 
  amended--
              (1) in paragraph (1), by striking ``the sixth anniversary 
          date of the original loan disbursement'' and inserting ``5 
          years after the date of substantial completion''; and
              (2) by adding at the end the following:
              ``(3) Deferred payments.--
                      ``(A) In general.--If at any time after the date of 
                  substantial completion the project is unable to 
                  generate sufficient revenues to pay the scheduled loan 
                  repayments of principal and interest on the direct 
                  loan, the Secretary, subject to subparagraph (B), may 
                  allow the obligor to add unpaid principal and interest 
                  to the outstanding balance of the direct loan.
                      ``(B) Interest.--A payment deferred under 
                  subparagraph (A) shall--
                              ``(i) continue to accrue interest under 
                          paragraph (2) until the loan is fully repaid; 
                          and
                              ``(ii) be scheduled to be amortized over 
                          the remaining term of the loan.
              ``(4) Prepayments.--
                      ``(A) Use of excess revenues.--Any excess revenues 
                  that remain after satisfying scheduled debt service 
                  requirements on the project obligations and direct loan 
                  and all deposit requirements under the terms of any 
                  trust agreement, bond resolution, or similar agreement 
                  securing project obligations may be applied annually to 
                  prepay the direct loan without penalty.
                      ``(B) Use of proceeds of refinancing.--The direct 
                  loan may be prepaid at any time without penalty from 
                  the proceeds of refinancing from non-Federal funding 
                  sources.''.
  
  SEC. 7. CREDIT RISK PREMIUMS.
  
      Section 502(f) (45 U.S.C. 822(f)) is amended--
              (1) in paragraph (1), by amending the first sentence to 
          read as follows: ``In lieu of or in combination with 
          appropriations of budget authority to cover the costs of direct 
          loans and loan guarantees as required under section 504(b)(1) 
          of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)(1)), 
          including the cost of a modification thereof, the Secretary may 
          accept on behalf of an applicant for assistance under this 
          section a commitment from a non-Federal source, including a 
          State or local government or agency thereof, to fund in whole 
          or in part credit risk premiums and modification costs with 
          respect to the loan that is the subject of the application or 
          modification.'';
              (2) in paragraph (2)--
                      (A) in subparagraph (D), by adding ``and'' after 
                  the semicolon;
                      (B) by striking subparagraph (E); and
                      (C) by redesignating subparagraph (F) as 
                  subparagraph (E);
              (3) by striking paragraph (4);
              (4) by redesignating paragraph (3) as paragraph (4);
              (5) by inserting after paragraph (2) the following:
              ``(3) Creditworthiness.--An applicant may propose and the 
          Secretary may accept as a basis for determining the amount of 
          the credit risk premium under paragraph (2) any of the 
          following in lieu of the value of any tangible asset as 
          collateral under paragraph (2)(A):
                      ``(A) A rate covenant, if applicable.
                      ``(B) Adequate coverage requirements to ensure 
                  repayment, on a non-recourse basis, from cash flows 
                  generated by the project or any other dedicated revenue 
                  source, including--
                              ``(i) tolls;
                              ``(ii) user fees; or
                              ``(iii) payments owing to the obligor under 
                          a public-private partnership.
                      ``(C) An investment-grade rating on debt senior to 
                  the direct loan or loan guarantee.
                      ``(D) A rating on the direct loan or loan 
                  guarantee, as applicable.'';
              (6) in paragraph (4), as redesignated, by striking 
          ``amounts'' and inserting ``amounts (and in the case of a 
          modification, before the modification is executed), to the 
          extent appropriations are not available to the Secretary to 
          meet the costs of direct loans and loan guarantees, including 
          costs of modifications thereof''; and
              (7) by adding at the end the following:
              ``(5) Use of other federal funds.--Notwithstanding any 
          other provision of law, an applicant may use other Federal 
          funds to pay part or all of a credit risk premium under this 
          subsection.''.
  
  SEC. 8. MASTER CREDIT AGREEMENTS.
  
      Section 502 (45 U.S.C. 822) is amended by adding at the end the 
  following:
      ``(k) Master Credit Agreements.--
              ``(1) In general.--Subject to section 502(d) and paragraph 
          (2) of this subsection, the Secretary may enter into a master 
          credit agreement if--
                      ``(A) the common security pledge receives an 
                  investment-grade rating from a rating agency prior to 
                  the Secretary entering into the master credit 
                  agreement; and
                      ``(B) all of the conditions for the provision of 
                  direct loans or loan guarantees, as applicable, under 
                  this title are satisfied.
              ``(2) Conditions.--Each master credit agreement shall--
                      ``(A) establish the maximum amount and general 
                  terms and conditions of each applicable direct loan or 
                  loan guarantee;
                      ``(B) identify 1 or more dedicated non-Federal 
                  revenue sources that will secure the repayment of each 
                  applicable direct loan or loan guarantee;
                      ``(C) provide for the obligation of funds for the 
                  direct loans or loan guarantees after all requirements 
                  have been met for the projects subject to the master 
                  credit agreement; and
                      ``(D) unless otherwise extended by the Secretary, 
                  require that each applicable direct loan and loan 
                  guarantee results in a financial close and obligation 
                  of assistance, or release of the master credit 
                  agreement, not later than 3 years after the date of 
                  entry by the Secretary into the agreement.
      ``(l) Non-Federal Share.--The proceeds of a direct loan under this 
  title may be used for any non-Federal share of project costs required 
  under chapter 244 of title 49, United States Code, if the loan is 
  repayable from non-Federal funds.''.
  
  SEC. 9. MISCELLANEOUS PROVISIONS.
  
      (a) Priority Projects.--Section 502(c)(5) (45 U.S.C. 822(c)(5)) is 
  amended by inserting ``or chapter 227 of title 49'' after ``section 135 
  of title 23''.
      (b) Conditions of Assistance.--Section 502(h) (45 U.S.C. 822(h)) is 
  amended--
              (1) in paragraph (2), by inserting ``, if applicable'' 
          after ``project''; and
              (2) by adding at the end the following:
              ``(4) For a project described in subsection (b)(1)(D), the 
          Secretary shall require the applicant to pay, in addition to 
          the interest required under subsection (e), a fee or payment in 
          an amount determined appropriate by the Secretary to provide an 
          equitable share of revenue to support capital or operating 
          costs of routes serving the passenger rail station or 
          multimodal station where the development is located.''.
  
  SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
  
      There is authorized to be appropriated for each of fiscal years 
  2015 through 2020 $100,000,000, to remain available until expended, for 
  the cost of direct loans and loan guarantees under sections 502 through 
  504 of the Railroad Revitalization and Regulatory Reform Act of 1976 
  (45 U.S.C. 801 et seq.).
  
  SEC. 11. SAVINGS PROVISION.
  
      This Act, and the amendments made by this Act, shall not affect any 
  direct loan (or direct loan obligation) or an outstanding loan 
  guarantee (or loan guarantee commitment) that was in effect prior to 
  the date of enactment of this Act. Any such transaction entered into 
  before the date of enactment of this Act shall be administered until 
  completion under its terms as if this Act were not enacted.
target: Railroad Infrastructure Financing Improvement Act This bill amends the Railroad Revitalization and Regulatory Reform Act of 1976 to direct the Department of Transportation (DOT) to make direct loans and loan guarantees to:   joint ventures that include, instead of at least one railroad, at least one railroad, state or local government, interstate compact, or government sponsored authority or corporation (entity); and any obligor, as designated by such an entity, including a special purpose entity receiving user fees or other payments or revenues from dedicated sources for debt service and maintenance of the equipment or facilities to be acquired or improved.  Direct loans and loan guarantees may also be solely for a public-private partnership, private entity, a consortium that specializes in real estate development, or an economic development project physically or functionally related to a passenger rail station or multimodal station. DOT shall notify direct loan or loan guarantee applicants if their applications are incomplete, and within another 60 days approve or disapprove a resubmitted application. Charges may be collected for certain costs additional to the evaluation of applications. The current formula cap on such a charge is repealed. The term for repayment of a direct loan or loan guarantee may extend from a maximum of 35 years to a maximum of the lesser of 50 years or 90% of the estimated useful life of the rail equipment or facilities to be acquired, rehabilitated, improved, developed, or established. DOT may allow an obligor to add unpaid principal and interest to the outstanding balance if at any time after the date of substantial completion the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on a direct loan. Prepayments without penalty are also allowed. Authority for cohorts of loans is repealed.  A direct loan or loan guarantee applicant may propose, and DOT may accept as collateral, as a basis for determining the amount of a credit risk premium any of the following in lieu of the value of any tangible asset:  a rate covenant; adequate coverage requirements to ensure repayment, on a non-recourse basis, from cash flows generated by the project or any other dedicated revenue source; an investment-grade rating on debt senior to the direct loan or loan guarantee; or a rating on the direct loan or loan guarantee.  DOT may enter into a master credit agreement (to make one or more direct loans or loan guarantees at future dates for a program of related projects secured by a common security pledge) if:  the common security pledge receives an investment-grade rating (BBB minus, Baa 3, bbb minus, BBB[low], or higher) from a rating agency before entry into the master credit agreement; and all specified conditions for the provision of direct loans or loan guarantees, as applicable, are satisfied.  DOT must require the applicant for an economic development project to pay, in addition to interest, a fee to provide an equitable share of revenue to support capital or operating costs of routes serving the passenger rail station or multimodal station where the development is located.
feat_title: Railroad Infrastructure Financing Improvement Act