1. (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. (1) an overview of the project, including a description of the project, the total cost of the project, and the proposed use of the requested financial assistance;
   2. (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. (3) any proposed pledge of collateral or security and any prior claim to those items;
   4. (4) a description of the need for the project and its potential effect on traffic congestion and mobility; and
   5. (5) the latest bond rating obtained by the applicant when using the sources of revenue to be pledged, or if not applicable, other evidence of creditworthiness;
   6. (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. (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. (8) for public roadway projects, a preliminary design study, including:

      1. (A) an initial route and potential alignments; and
      2. (B) revisions or changes to state highway system facilities necessitated by the project; and
   9. (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.

2. (b) Supplemental information and data. The applicant may be required to submit any or all of the following supplemental information and data if the executive director finds that information or data to be relevant to the project and the requested financing. 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.

   1. (1) Financial feasibility study. The applicant may be required to submit a financial feasibility study, including:

      1. (A) a project construction or asset acquisition schedule identifying the timing, amount, and source of all cash required;
      2. (B) an analysis of the expected financing period of the project;

      3. (C) a pro forma analysis based on generally accepted accounting principles for the expected financing period of the project, including:

         1. (i) anticipated revenues to be used in repayment by source;
         2. (ii) anticipated disbursements by category, including disbursements for operations, maintenance, renewal, and replacement;
         3. (iii) anticipated balances at the close of each calendar or fiscal year; and
         4. (iv) funds used to meet the requirements of any sinking funds, reserve funds, and amortization payments;
      4. (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;
      5. (E) the length of time the amounts will be outstanding or obligated;
      6. (F) the anticipated interest rates applicable during the term of the financial assistance;
      7. (G) any interest rate subsidies requested;
      8. (H) the expected savings to the applicant resulting from the assistance; and

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

         1. (i) expand the availability of funding for transportation projects;
         2. (ii) reduce direct state costs;
         3. (iii) maximize private and local participation in financing projects;
         4. (iv) improve the efficiency of the state's transportation systems; and
         5. (v) accelerate the project's transportation benefits over conventional financing methods.

   2. (2) Project impacts. The applicant may be required to conduct studies analyzing the impact of the project, including:

      1. (A) how the project will be consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan (MTP) developed by an MPO;
      2. (B) if the project is in a Clean Air Act non-attainment area, how the project will be consistent with the Statewide Transportation Improvement Program (STIP), with the conforming plan and Transportation Improvement Program (TIP) for the MPO in which the project is located (if necessary), and with the State Implementation Plan (SIP);
      3. (C) the economic impact based on a study assessing the potential impact of the project on the economy of the region in which the project is to be located, including the economies of each county in which the project is to be located and of the municipalities within those counties;
      4. (D) a preliminary identification of potential social, economic, and environmental impacts; and
      5. (E) appropriate documentary evidence of community involvement in the development of the proposed project and of public support for it.

3. (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. (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. (2) the department already possesses information or data in a format that can be substituted for the required information or data.
4. (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.