About Innovative Finance
Grant Anticipation Revenue Vehicles (GARVEE) Bond Program
GARVEE bonds are tax-exempt debt instrument financing mechanisms that are backed by annual federal appropriations for federal-aid transportation projects. Proceeds from the financing can be used for the costs of right of way and/or construction of highway or other transportation projects that are eligible under Title 23 of the United States Code and that meet all federal requirements. Additionally, projects must have environmental clearance and completed project design, be designated for GARVEE financing by the California Transportation Commission (CTC), and eligible through Federal Highway Administration (FHWA) for advance construction using GARVEE financing.
Public-Private Partnerships (PPP)
California recognizes the desire to introduce private sector capital and expertise to the building of transportation infrastructure through the Public-Private Partnerships (PPP) program. By offering reasonable investment returns, California's public sector intends to partner with the private sector to develop, construct, and operate additional transportation projects to accelerate goods movement, improve air quality and facilitate California's economic development.
State Highway Account (SHA) Loan Program
This program offers short-term (maximum four-year) construction loans to local entities for State Transportation Improvement Program (STIP)-eligible projects included within an adopted Regional Transportation Plan. Total project costs must be greater than $10 million; however, for counties with populations under 500,000, this requirement may be waived.
Transportation Finance Bank (TFB) Loan Program
The U.S. Department of Transportation (US DOT) designated California to participate in its State Infrastructure Bank (SIB) Pilot Program, authorized under the National Highway System Designation Act of 1995. The SIB Program was established to provide flexible project financing through loans, debt service guarantees, lines of credit and other capital financing support. California established its SIB, the Transportation Finance Bank, to offer flexible, short- term loans (maximum six- year) to public and private entities for any stage of an eligible highway construction or transit capital project.
Transportation Infrastructure Finance and Innovation Act (TIFIA) of 1998
The Federal TIFIA Program offers credit assistance on flexible terms for major transportation projects of critical national importance. Credit assistance, in the form of direct loans, loan guarantees, and standby lines of credit, is available to public and private sponsors. Projects must: meet certain minimum project cost requirements, be supported by project revenues or a non-federal dedicated funding source, and be included in the STIP. While applications for assistance are submitted directly to the US DOT. Caltrans' Office of Innovative Finance staff is available to assist in the application process and providing support for eligible projects.
Partnership Ventures (PV)
Partnership Ventures administered the Caltrans private toll road program authorized by Streets and Highways Code Section 143 (Assembly Bill 680 Baker) Chapter 107, Statutes of 1989). This statute authorized Caltrans to solicit proposals and enter into agreements with the private sector to develop, construct and operate four privately-financed public transportation demonstration projects. In addition to the toll road program, Partnership Ventures were also responsible for identifying and developing other private partnerships which would generate revenues and/or additional infrastructure for the State.
For additional information, please contact Office of Innovative Finance.