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Section 7: Alternate Financial Assistance to the Utility

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State Infrastructure Bank (SIB)

A utility’s inability to pay for adjustments can be addressed by utilizing the State Infrastructure Bank (SIB), or a SIB that operates chiefly as a revolving loan fund and can provide a wide range of financial assistance in addition to loans. In 1997, the 75th Texas Legislature passed Senate Bill 370, which created the Texas State Infrastructure Bank administered by the Texas Transportation Commission, the governing body of TxDOT. In September 1997, the Texas Transportation Commission approved administrative rules that govern the State Infrastructure Bank.

TxDOT has designed the SIB to enable qualified borrowers to access funds at negotiated interest rates and terms. Applications may be submitted to the local TxDOT District or to the TxDOT Project Finance, Debt, and Strategic Contracts (PFD) Division. Approval for financial assistance to a private entity shall be limited to an eligible project that:

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  • provides transportation services or facilities that demonstrate public benefit; or
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  • is constructed or operated in cooperation with a state agency or political subdivision in accordance with an agreement between that state agency or political subdivision and the private entity.

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State Participation 2125 (SP2125)

The State Participation 2125 (SP2125) Program assists political subdivisons by alleviating financial hardships caused by required utility relocations on TxDOT's transportation projects. In 2019, the 86th Texas Legislature passed Senate Bill 1512, which amended Texas Transportation Code Section 203.092 to add subsection (a-4) and created the State Participation Program administered by the Texas Transportation Commission, the governing body of TxDOT. In February 2020, the Texas Transportation Commission approved administrative rules that govern the State Participation 2125 Program. Texas Administrative Code Title 43, Part 1, Chapter 21, Subchapter B, Rule §21.25, "State Participation in the Relocation of Certain Publicly-Owned Utility Facilities" prescribes the procedures to be taken by the utility to apply for state participation in the relocation of utility facilities and by the department and commission in determining whether all or part of the expense of the relocation of the facility will be reim-bursed by the state. Applications may be submitted to the local TxDOT District.

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