23 U.S.C. § 129 : US Code - Section 129: Toll roads, bridges, tunnels, and ferries

Search 23 U.S.C. § 129 : US Code - Section 129: Toll roads, bridges, tunnels, and ferries

(a) Basic Program. -
(1) Authorization for federal participation. - Notwithstanding
section 301 of this title and subject to the provisions of this
section, the Secretary shall permit Federal participation in -
(A) initial construction of a toll highway, bridge, or tunnel
(other than a highway, bridge, or tunnel on the Interstate
System) or approach thereto;
(B) reconstructing, resurfacing, restoring, and
rehabilitating a toll highway, bridge, or tunnel (including a
toll highway, bridge, or tunnel subject to an agreement entered
into under this section or section 119(e) as in effect on the
day before the date of the enactment of the Intermodal Surface
Transportation Efficiency Act of 1991) or approach thereto;
(C) reconstruction or replacement of a toll-free bridge or
tunnel and conversion of the bridge or tunnel to a toll
facility;
(D) reconstruction of a toll-free Federal-aid highway (other
than a highway on the Interstate System) and conversion of the
highway to a toll facility; and
(E) preliminary studies to determine the feasibility of a
toll facility for which Federal participation is authorized
under subparagraph (A), (B), (C), or (D);
on the same basis and in the same manner as in the construction
of free highways under this chapter.
(2) Ownership. - Each highway, bridge, tunnel, or approach
thereto constructed under this subsection must -
(A) be publicly owned, or
(B) be privately owned if the public authority having
jurisdiction over the highway, bridge, tunnel, or approach has
entered into a contract with a private person or persons to
design, finance, construct, and operate the facility and the
public authority will be responsible for complying with all
applicable requirements of this title with respect to the
facility.
(3) Limitations on use of revenues. - Before the Secretary may
permit Federal participation under this subsection in
construction of a highway, bridge, or tunnel located in a State,
the public authority (including the State transportation
department) having jurisdiction over the highway, bridge, or
tunnel must enter into an agreement with the Secretary which
provides that all toll revenues received from operation of the
toll facility will be used first for debt service, for reasonable
return on investment of any private person financing the project,
and for the costs necessary for the proper operation and
maintenance of the toll facility, including reconstruction,
resurfacing, restoration, and rehabilitation. If the State
certifies annually that the tolled facility is being adequately
maintained, the State may use any toll revenues in excess of
amounts required under the preceding sentence for any purpose for
which Federal funds may be obligated by a State under this title.
(4) Special rule for funding. - In the case of a toll highway,
bridge, or tunnel under the jurisdiction of a public authority of
a State (other than the State transportation department), upon
request of the State transportation department and subject to
such terms and conditions as such department and public authority
may agree, the Secretary shall reimburse such public authority
for the Federal share of the costs of construction of the project
carried out on the toll facility under this subsection in the
same manner and to the same extent as such department would be
reimbursed if such project was being carried out by such
department. The reimbursement of funds under this paragraph shall
be from sums apportioned to the State under this chapter and
available for obligations on projects on the Federal-aid system
in such State on which the project is being carried out.
(5) Limitation on federal share. - The Federal share payable
for a project described in paragraph (1) shall be a percentage
determined by the State but not to exceed 80 percent.
(6) Modifications. - If a public authority (including a State
transportation department) having jurisdiction over a toll
highway, bridge, or tunnel subject to an agreement under this
section or section 119(e), as in effect on the day before the
effective date of title I of the Intermodal Surface
Transportation Efficiency Act of 1991, requests modification of
such agreement, the Secretary shall modify such agreement to
allow the continuation of tolls in accordance with paragraph (3)
without repayment of Federal funds.
(7) Loans. -
(A) In general. - A State may loan to a public or private
entity constructing or proposing to construct under this
section a toll facility or non-toll facility with a dedicated
revenue source an amount equal to all or part of the Federal
share of the cost of the project if the project has a revenue
source specifically dedicated to it. Dedicated revenue sources
for non-toll facilities include excise taxes, sales taxes,
motor vehicle use fees, tax on real property, tax increment
financing, and such other dedicated revenue sources as the
Secretary determines appropriate.
(B) Compliance with federal laws. - As a condition of
receiving a loan under this paragraph, the public or private
entity that receives the loan shall ensure that the project
will be carried out in accordance with this title and any other
applicable Federal law, including any applicable provision of a
Federal environmental law.
(C) Subordination of debt. - The amount of any loan received
for a project under this paragraph may be subordinated to any
other debt financing for the project.
(D) Obligation of funds loaned. - Funds loaned under this
paragraph may only be obligated for projects under this
paragraph.
(E) Repayment. - The repayment of a loan made under this
paragraph shall commence not later than 5 years after date on
which the facility that is the subject of the loan is open to
traffic.
(F) Term of loan. - The term of a loan made under this
paragraph shall not exceed 30 years from the date on which the
loan funds are obligated.
(G) Interest. - A loan made under this paragraph shall bear
interest at or below market interest rates, as determined by
the State, to make the project that is the subject of the loan
feasible.
(H) Reuse of funds. - Amounts repaid to a State from a loan
made under this paragraph may be obligated -
(i) for any purpose for which the loan funds were available
under this title; and
(ii) for the purchase of insurance or for use as a capital
reserve for other forms of credit enhancement for project
debt in order to improve credit market access or to lower
interest rates for projects eligible for assistance under
this title.
(I) Guidelines. - The Secretary shall establish procedures
and guidelines for making loans under this paragraph.
(8) Initial construction defined. - For purposes of this
subsection, the term "initial construction" means the
construction of a highway, bridge, or tunnel at any time before
it is open to traffic and does not include any improvement to a
highway, bridge, or tunnel after it is open to traffic.
(b) Notwithstanding the provisions of section 301 of this title,
the Secretary may permit Federal participation under this title in
the construction of a project constituting an approach to a ferry,
whether toll or free, the route of which is a public road and has
not been designated as a route on the Interstate System. Such ferry
may be either publicly or privately owned and operated, but the
operating authority and the amount of fares charged for passage
shall be under the control of a State agency or official, and all
revenues derived from publicly owned or operated ferries shall be
applied to payment of the cost of construction or acquisition
thereof, including debt service, and to actual and necessary costs
of operation, maintenance, repair, and replacement.
(c) Notwithstanding section 301 of this title, the Secretary may
permit Federal participation under this title in the construction
of ferry boats and ferry terminal facilities, whether toll or free,
subject to the following conditions:
(1) It is not feasible to build a bridge, tunnel, combination
thereof, or other normal highway structure in lieu of the use of
such ferry.
(2) The operation of the ferry shall be on a route classified
as a public road within the State and which has not been
designated as a route on the Interstate System. Projects under
this subsection may be eligible for both ferry boats carrying
cars and passengers and ferry boats carrying passengers only.
(3) Such ferry boat or ferry terminal facility shall be
publicly owned or operated or majority publicly owned if the
Secretary determines with respect to a majority publicly owned
ferry or ferry terminal facility that such ferry boat or ferry
terminal facility provides substantial public benefits.
(4) The operating authority and the amount of fares charged for
passage on such ferry shall be under the control of the State or
other public entity, and all revenues derived therefrom shall be
applied to actual and necessary costs of operation, maintenance,
and (!1) repair, debt service, negotiated management fees, and,
in the case of a privately operated toll ferry, for a reasonable
rate of return.
(5) Such ferry may be operated only within the State (including
the islands which comprise the State of Hawaii and the islands
which comprise any territory of the United States) or between
adjoining States or between a point in a State and a point in the
Dominion of Canada. Except with respect to operations between the
islands which comprise the State of Hawaii, operations between
the islands which comprise any territory of the United States,
operations between a point in a State and a point in the Dominion
of Canada, and operations between any two points in Alaska and
between Alaska and Washington, including stops at appropriate
points in the Dominion of Canada, no part of such ferry operation
shall be in any foreign or international waters.
(6) No such ferry shall be sold, leased, or otherwise disposed
of without the approval of the Secretary. The Federal share of
any proceeds from such a disposition shall be credited to the
unprogramed balance of Federal-aid highway funds of the same
class last apportioned to such State. Any amount so credited
shall be in addition to all other funds then apportioned to such
State and available for expenditure in accordance with the
provisions of this title.