Determination of eligibility and project selection

(a) Selection of projects Using the selection criteria under subsection (c) of this section, the Secretary shall select, from applications submitted pursuant to section 206, eligible projects that meet the criteria under subsection (b) of this section for financial assistance under section 208. (b) Project requirements An eligible project may not be selected to receive financial assistance under section 208 unless the Secretary determines that the project meets all of the following criteria: (1) Creditworthiness (A) In general Subject to subparagraph (B), the project shall be creditworthy, as determined by the Secretary as applicable, to shall ensure that any financing for the project has appropriate security features, such as a rate covenant, to ensure repayment. (B) Preliminary rating opinion letter The Secretary shall require the applicant for each project to provide, as part of the application for the project under section 206, a preliminary rating opinion letter from at least one rating agency indicating that the senior project obligations of the project (which may be the Federal credit instrument) have the potential to achieve an investment-grade rating. (C) Special rule for certain combined projects The Secretary shall develop a credit evaluation process for a Federal credit instrument provided to a State infrastructure financing authority for a project described in section 206(b), which may include requiring the provision of a preliminary rating opinion letter from at least one rating agency. (2) Eligible project costs The costs of the eligible project shall be reasonably anticipated to be not less than $20,000,000. (3) Dedicated revenue sources The Federal credit instrument for the project shall be repayable, in whole or in part, from dedicated revenue sources that also secure the project obligations. (4) Public sponsorship of private entities In the case of a project carried out by an entity that is not a State or local government or an agency or instrumentality of a State or local government, the project shall be publicly sponsored. (c) Selection criteria (1) Establishment The Secretary shall establish criteria for the selection of projects that meet the eligibility requirements of subsection (b). Such criteria shall be designed to ensure a diversity of project types and geographical locations, and shall include the following: (A) The extent to which the project is statewide or regionally significant, with respect to the generation of increased recreational opportunities. (B) The extent to which assistance under this title would foster innovative public-private partnerships and attract private debt or equity investment. (C) The likelihood that assistance under this title would enable the project to proceed at an earlier date than the project would otherwise be able to proceed. (D) The extent to which the project uses new or innovative approaches. (E) The amount of budget authority required to fund the Federal credit instrument for the project made available under this title. (F) The extent to which the project helps maintain or protect the environment. (G) The extent to which assistance under this section reduces the contribution of Federal grant assistance to the project. (2) Special rule for certain combined projects For a project described in section 206(b), the Secretary shall only consider the criteria described in subparagraphs (B) through (G) of paragraph (1). (d) Federal requirements Nothing in this section may be construed to alter, affect, or annul the applicability of any other Federal laws or regulations.