PNWER RIA Hosts Innovative Financing Webinar with USDOT Build America Bureau
In the Pacific Northwest, transportation infrastructure projects span multiple modes, rural and urban communities and diverse landscapes – but how are these projects funded? The PNWER Regional Infrastructure Accelerator (RIA) teamed up with the U.S. Department of Transportation’s Build America Bureau (Bureau) on May 20 to host a virtual crash course on innovative financing tools for our region’s project sponsors.
This was the first of a new PNWER RIA webinar series designed to enable Pacific Northwest communities, Tribal nations and project sponsors to better understand and navigate the USDOT’s financing tools, public-private partnerships (P3s), project bundling and alternative project delivery models. Click the button below to view the webinar recording, or use headers below to jump to specific presentations.
Why Innovative Financing?
Innovative financing tools can bridge funding gaps, accelerate project delivery and reduce reliance on limited public grant funding. Low-interest federal loans, P3s and state infrastructure banks can offer project sponsors greater diversity in the project funding mix and help projects reach the finish line faster, but small communities may lack the resources or expertise to fully leverage these tools.
Education and assistance are guiding principles of the PNWER RIA and our Build Northwest Council. We work with project sponsors across Alaska, Idaho, Montana, Oregon and Washington to build knowledge and capacity around federal financing tools. This includes exploring best-fit funding opportunities, developing compelling TIFIA/RRIF loan letters of interest, and bundling projects along corridors and gateways to achieve financing eligibility.
Here’s What We Learned
USDOT Grant and Credit Programs
Carl Ringgold, Regional Infrastructure Accelerator program manager at the Bureau, shared a high-level overview of grant and credit programs offered through the USDOT.
The Bureau administers a suite of customizable financing tools that provide project finance assistance to state, local and private project sponsors to accelerate delivery of critical infrastructure projects.
Two of the Bureau’s financing programs – TIFIA and RRIF – were showcased as advantageous tools for Pacific Northwest project sponsors, as the low-interest loans can be tailored to project needs and offer flexible repayment terms.
About TIFIA
The Transportation Finance and Innovation Act (TIFIA) program provides credit assistance for large-scale (over $10 million) surface transportation projects, such as highways, transit, railroad, intermodal freight and port access improvements. Featured benefits include:
Finance 33-49% of eligible project costs
Low interest rates
Interest does not accrue until proceeds are drawn
Flexible amortization
Up to 35 year repayment period – in some cases, up to 75 years
No prepayment penalty
TIFIA Rural Project Initiative
The Pacific Northwest region comprises sprawling rural communities in each of its states. These communities often face barriers to funding critical infrastructure projects that provide access to medical care, education, groceries and employment opportunities.
Qualified rural communities are eligible for TIFIA Rural Project Initiative financing for projects between $10 and $100 million in total cost – and at fixed interest rates equal to half of the U.S. Treasury rate at the time of closing the loan. For projects under $75 million in total costs, the Bureau can waive advisor and administrative fees.
About RRIF
Railroad Rehabilitation and Improvement Financing (RRIF) provides direct loans that can fund up to 100% of a railroad project – acquiring, improving or rehabilitation of intermodal or rail equipment; developing or establishing new intermodal or railroad facilities; or financing transit oriented development.
Learn more about the Bureau’s innovative financing tools here.
Sam Beydoun, senior advisor, overviewed the Build America Center (BAC) as an institutional resource to project sponsors across the country. The BAC partners with the USDOT and higher education institutions to mobilize the use of innovative financing, funding and project delivery solutions to advance transportation infrastructure development.
Learn more about the Build America Center here.
From LOI (Letter of Interest) to Loan: TIFIA Case Studies
Dozens of projects in the Pacific Northwest have leveraged TIFIA and RRIF loans to close funding gaps and deliver projects faster. Representatives from two TIFIA recipients, Mount Vernon, Washington, and Bay Area Rapid Transit, joined the webinar to share firsthand perspectives – both rural and urban – on using TIFIA financing for their projects.
Mount Vernon Library Commons (Photo by HKP Architects)
Mount Vernon Library Commons
The Mount Vernon Library Commons is a newly-completed, multi-use community space situated along Interstate 5 in the City of Mount Vernon, Washington. The Commons include meeting spaces, community kitchen, parking structure and library facilities – all positioned near a transit stop.
Jill Boudreau, project administrator for the Commons, shared details about the experience navigating a TIFIA loan as a rural city. A $61 million investment, the Library Commons project leveraged a diverse funding mix that included a $19.2 million TIFIA Transit Oriented Development (TOD) loan. This loan was used in conjunction with state, city and county funding, and qualified for the Bureau’s Rural Project Initiative, which covered some advisor costs and had an interest rate of one half the U.S. Treasury rate.
Learn more about Mount Vernon’s TIFIA experience here.
BART Train Car (Photo by BART)
Bay Area Rapid Transit
Bay Area Rapid Transit (BART) serves as the transportation spine of the San Francisco Bay Area, connecting urban and suburban areas along 131 miles of dual mainline track with 50 stations. BART is also an active Regional Infrastructure Accelerator program that aims to enhance its Capital Project Prioritization and Selection (CPPS) process and identify capital projects eligible for TIFIA and RRIF financing.
Priya Mathur, director of funding strategy at BART, outlined the agency’s journey with pursuing innovative financing for a $7 billion total project that includes train capacity improvements, policy department headquarters facilities, substation renovation, rail car replacement and station renovations.
The BART team submitted a TIFIA letter of interest (LOI) for the rail car replacement project after determining that the 35-year term, no prepayment penalty and prior federalization fulfilled both project and agency needs. BART closed on its TIFIA loan for up to $544.6 million in October 2024 and is working towards project completion.
Learn more about BART’s experience here.
Thank you to our presenters for sharing your expertise—your insight made this webinar impactful and actionable!
Upcoming Events
2025 PNWER Annual Summit
Legislators, business leaders, academics, and policymakers from the U.S. and Canada will gather in Bellevue, Washington for PNWER's 34th Annual Summit from July 20-24 to discuss regional economic best practices and trade concerns. Transportation topics include supply chain resilience, marine highways, economic corridors and more. Explore the agenda here.
Pacific Northwest Rail Summit
The Pacific Northwest Rail Summit brings together rail industry leaders, experts, users and advocates to enhance and expand the freight and passenger rail network in the Greater Pacific Northwest. Save the date to join us in Portland, Oregon, October 15-17, 2025. This event is co-located with the PNWER Build Northwest Forum, which will take place on October 14. Learn more here.
Get in Touch!
If you’re a project sponsor seeking funding for a transportation project or looking to explore innovative financing strategies, we’d love to hear from you. Our team can help with navigating available federal funding sources, understanding innovative financing tools, or identifying public/private partnership opportunities.
