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RULE §6.23Application Procedure

(a) Basic application. An eligible entity must submit an application to the executive director in a form prescribed by the department. The application must be accompanied by:

  (1) an overview of the project, including a description of the project, the total estimated cost of the project, and the proposed use of the requested financial assistance;

  (2) the amount of money required to supply the requested assistance, including any reserve funds that must be established and held by the bank for the applicant's benefit, but that may not be expended from the bank;

  (3) any proposed pledge of collateral or security and any prior claim to those items;

  (4) a description of the need for the project and its potential effect on traffic congestion and mobility;

  (5) the most recent offering document for any outstanding debt of the applicant payable from the revenue proposed to be used to repay the financial assistance, along with the financial documents related to that debt, including any master and supplemental resolutions, indentures of trust, and authorizing resolutions, ordinances, or orders, unless previously provided, or if not applicable, other evidence of creditworthiness, provided that the entity may provide any of the information described by this paragraph electronically;

  (6) official written approval of the project by the governing body of each entity that may become liable for repayment of any financial assistance;

  (7) a binding commitment that the environmental consequences of the proposed project will be fully considered, and that the proposed project will comply with all applicable local, state, and federal environmental laws, regulations, and requirements;

  (8) for public roadway projects, a preliminary design study, including:

    (A) an initial route and potential alignments; and

    (B) revisions or changes to state highway system facilities necessitated by the project; and

  (9) for transit projects, a preliminary scope study, including preliminary layouts, architectural drawings, equipment specifications, and other information necessary to describe the project fully and to comply with all requirements of the Federal Transit Administration.

(b) Supplemental information and data. Except as provided in subsection (c) of this section, the applicant shall submit the supplemental information and data required by this subsection.

  (1) Financial feasibility study. The applicant shall submit a financial feasibility study that includes:

    (A) a project construction or asset acquisition schedule identifying the timing, amount, and source of all funds required;

    (B) an analysis of the expected financing period of the project;

    (C) a pro forma annual cash flow analysis for the expected financing period of the project showing:

      (i) anticipated revenues to be used in repayment by source, including a preliminary traffic and revenue study, acceptable to the executive director, for toll roads;

      (ii) anticipated disbursements for preliminary studies and engineering, construction, EPIC, right of way acquisition, utility adjustments, operations, and maintenance;

      (iii) funds used to meet the requirements of any sinking funds, reserve funds, and amortization payments; and

      (iv) loan (debt service) coverage ratios and associated cash flow surpluses or deficits;

    (D) a description of the methods used in preparing the financial feasibility study, the assumptions contained in the study, and persons responsible for the preparation of the study;

    (E) the length of time the amounts will be outstanding or obligated;

    (F) the anticipated interest rates applicable during the term of the financial assistance;

    (G) any interest rate subsidies requested by:

      (i) an economically disadvantaged county, as defined in Transportation Code, §222.053;

      (ii) a city located wholly or partially within an economically disadvantaged county; or

      (iii) another public entity within whose boundary is at least one entire disadvantaged county;

    (H) the expected savings to the applicant resulting from the assistance; and

    (I) a description of how the requested assistance will:

      (i) expand the availability of funding for transportation projects;

      (ii) reduce direct state costs;

      (iii) maximize private and local participation in financing projects;

      (iv) improve the efficiency of the state's transportation systems; and

      (v) accelerate the project's transportation benefits over conventional financing methods.

  (2) Other financial information. The applicant shall submit the following information, if the information is not provided with the feasibility study:

    (A) the applicant's most recent annual budget;

    (B) the five most recent comprehensive financial reports or audits of the applicant;

    (C) the current capital planning document that addresses uses of the revenue proposed to be used for repayment of the financial assistance; and

    (D) the most recent rating agency report on the credit of the applicant, if any.

  (3) Project impacts. The applicant shall submit:

    (A) information explaining how the project will be consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan developed by an MPO;

    (B) if the project is in a Clean Air Act non-attainment area, information explaining how the project will be consistent with the Statewide Transportation Improvement Program, with the conforming plan and Transportation Improvement Program for the MPO in which the project is located (if necessary), and with the State Implementation Plan;

    (C) a preliminary identification of any known environmental, social, economic, or cultural resource issues, such as hazardous material sites, impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites; and

    (D) an explanation of the status of obtaining an environmental approval under Chapter 2 (relating to Environmental Review of Transportation Projects) and of obtaining any other required environmental permits.

(c) Waiver of required information or data. The executive director may waive submission of any individual item of information or data required by this section under either of the following circumstances:

  (1) the information or data is not relevant to the project, applicant, or financial assistance requested (in determining the relevance of supplemental information and data, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type and complexity of financial assistance requested, the complexity of the project's and the applicant's financial status, and how soon transportation benefits will begin); or

  (2) the department already possesses information or data in a format that can be substituted for the required information or data.

(d) Requirement of additional information. The executive director may require the applicant to submit explanations and expansions of information or data required by this section. In determining when additional relevant explanations and expansions of information or data will be required, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type, complexity, and amount of financial assistance requested, and the complexity of the project's and the applicant's financial status.

Source Note: The provisions of this §6.23 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective September 19, 2002, 27 TexReg 8775; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433

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