California Department of Transportation
 

Innovative Finance Mechanisms for Transportation Projects

Program

Purpose

Funding level

Repayment

Interest

SHA Short Term Loans (AB 1012) (CTC approval - State Funds)
 
 
Short-term financing (4 years or less) of projects in regional transportation plans. Projects of $10 million or more, or up to 50% of STIP County Share in counties under 500,000 population
Up to $ 500 million of outstanding loans at any one time. (Loans may not be made unless the cash balance in the SHA is above $400 mil.)
Loan repayments must be made in cash from non-State revenue sources
 
Pooled Money Investment Account (PMIA) interest rate
 
 
GARVEE Bonds
Long-Term (CTC approval - Federal Funds)
Advance project construction by assessing future federal funds.
4.82 billion annual debt service. Amount is limited to 15% annual Federal fund receipt
Counted against future STIP County Share or STIP Inter-regional Share.
Market rates or below.
 
Transportation Financing Bank
(CTIB)
(CTC approval - Federal Funds)

Provide credit enhancements such as bond guarantees and bond insurance to leverage private sector investment in revenue generating projects.
 
$3 million of Federal funds and a State commitment to use future federal funds to pay debt service in case of default on a loan guarantee
 
Repayment of expenditures by the TFB from a dedicated project revenue source identified in financing agreement.
Market rates or below.
 
 
 
TIFIA Long-Term Financing
(Federal approval-Federal Funds)

Federal Loans, credit enhancements, and loan guarantees for large projects over $100 million for highway or rail projects, intelligent Transportation System projects over $30 million)
Authorizing level $750 million (2013) to $1 billion (2014)
Project revenues or a revenue stream dedicated to the project.
Equal to or greater than US Treasury Securities.
 
STIP Advance/Reserve (CTC approval - Federal and State Funds)
 
 
 
Current access to future STIP cycle County Share funds for one project (advance) and future access to current shares until later time to fund higher cost project (reserve)
 
Advances apply only to regions with a population under one million and can be requested in an amount up to 200% of current STIP county share. Reserves may be requested by any region.
Counted against future STIP County Share.
 
 
 
 
None
 
 
 
 
Advance Project Development Element (CTC approval - Federal and State Funds)
 
Access to future STIP cycle County Share funds for one project.
 
 
25% of the funding levels estimated for the 1st and 2nd year following the period of the STIP. ($375 million targeted in the 2000 STIP)
Counted against future STIP county or inter-regional shares.
 
None
 
 
 

For additional information, please contact the Office of Innovative Finance.