R940. Transportation Commission, Administration.R940-3. State Infrastructure Bank Fund.
R940-3-1. Authority and Purpose.
(1) Authority to make this rule is by Sections 72-2-202 and 72-2-203.
(2) The purpose of this rule is to establish procedures, standards, and a prioritization process the commission will follow to approve infrastructure loans and infrastructure assistance through the State Infrastructure Bank Fund created by Subsection 72-2-202(1).
R940-3-2. Definitions.
(1) The definitions in Section 72-2-201 apply to this rule.
(2) In addition:
(a) "Commission" means the Transportation Commission created by Section 72-1-301.
(b) "Department" means the Department of Transportation created by Section 72-1-201.
(c) "Greenfield" means the same as that term is defined in Section 17C-1-102.
(d) "Project" includes a transportation project or a publicly owned infrastructure project.
(e) "SIB" means the State Infrastructure Bank Fund.
R940-3-3. Procedures and Standards for an Infrastructure Loan or Assistance from the SIB.
(1) Procedures.
(a) Under Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, and this rule, a public entity is eligible to apply for and receive an infrastructure loan or assistance through the SIB.
(b) A public entity must request an infrastructure loan or infrastructure assistance using an application form provided by the department.
(c) The public entity must complete and submit the application according to the application instructions.
(d) The public entity must state clearly if it is applying for an infrastructure loan or infrastructure assistance.
(e) If applicable, the public entity must state if it is applying for an infrastructure loan or infrastructure assistance in a greenfield area.
(f) The application form with instructions is available on the department's website at udot.utah.gov/go/SIB.
(2) Standards.
(a) A loan from the SIB fund must bear interest at or above the market interest rate available to the state.
(b) The commission will determine the interest rate for an infrastructure loan by adding 0.5% to the rate for AAA Municipal General Obligation Bonds obtained from the state treasurer as of the date of the completed application.
(c) The public entity must begin repaying the infrastructure loan no later than the completion date of the project or the date the public entity opens the facility to traffic in the case of a highway project. Interest will accrue during the period between loan closing and the agreed-upon estimated project completion date and will be capitalized and added to the loan's principal balance.
(d) The repayment period for an infrastructure loan may not exceed the term identified in Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund.
(e) Loan documents must state the execution date and repayment deadline date for the loan.
(f) The public entity may pledge any of a revenue source controlled by the public entity to repay the loan.
(g) The public entity must repay loans in monthly, quarterly, or yearly installments.
(h) If the applicant does not fully execute the assistance or loan within 180 days of the date the commission approves the application, the application will expire unless the applicant requests and the commission approves a continuation of the terms. Continuations are limited to a maximum of 180 days each.
R940-3-4. Prioritizing Requests for an Infrastructure Loan or Infrastructure Assistance.
(1) Criteria. The commission will follow a prioritization framework that may include the following criteria to evaluate and prioritize requests for a loan or assistance:
(a) availability of money in the fund, including for a loan or assistance related to a project in a greenfield area, whether money is available in the separate account created for projects in greenfield areas as described in Subsection 72-2-202(5);
(b) evidence the project will encourage, enhance, or create economic benefits to the state or political subdivision;
(c) the likelihood that a loan or assistance will enable the project to proceed at an earlier date than would otherwise be possible;
(d) the extent to which assistance will foster innovative public-private partnerships and attract private investment;
(e) the project demonstrates that it provides a benefit to the state highway system, including safety or mobility improvements;
(f) the proposed assistance amount as a percentage of the overall project costs with an emphasis on local and private participation;
(g) the extent to which the project provides intermodal connectivity with public transportation, pedestrian, or nonmotorized transportation facilities; or
(h) other provisions the commission considers appropriate.
