Local legislator introduces bill to expand roles of county infrastructure banks
A local state representative introduced a bill to let county infrastructure banks apply for loans from the Pennsylvania Infrastructure Bank.
Rep. Ryan Warner, R-Perryopolis, said there is a need to improve the state鈥檚 transportation and infrastructure system, and said the work of infrastructure banks at the county level can 鈥済ive local governments more options to address their transportation and infrastructure needs.鈥�
Warner said the prospective legislation would not require counties to create their own infrastructure banks.
鈥淗owever, there are a few of them in place already that seem to be working well, and we anticipate this legislation would spur the creation of additional infrastructure banks,鈥� he said.
According to the state Department of Transportation website, the 鈥淧ennsylvania Infrastructure Bank (PIB) is a PennDOT program that provides low-interest loans to help fund transportation projects within the Commonwealth.鈥�
The website notes that the 鈥済oal of the PIB is to leverage state and federal funds, accelerate priority transportation projects, spur economic development and assist local governments with their transportation needs.鈥�
The PIB Interest Rate currently stands at 2.375%.
鈥淐urrently,鈥� Warner wrote in a memo for the bill, 鈥渢he money within the (PIB) is appropriated by PennDOT for financing transportation related projects. However, it was never authorized to make direct loans to a county infrastructure bank or provide special terms and lower interest rates that are otherwise unavailable to a county infrastructure bank.鈥�
The bill is designed to change those things.
Under the prospective legislation, the PIB would be able to 鈥渕ake loans to a county infrastructure bank to finance the costs of qualified projects within the county; and 鈥� provide special terms and lower interest rates for loans made to a county infrastructure bank that are otherwise unavailable to the county infrastructure bank.鈥�
The bill also notes that a 鈥渃ounty infrastructure bank applying for a loan must submit a 30-year infrastructure plan and any other documentation deemed necessary by (PennDOT) to demonstrate that the loan will be used exclusively for qualified projects approved by (PennDOT).鈥�
Warner said the legislation was developed as part of a package of bills being recommended by the Transportation Infrastructure Task Force. He was appointed to that task force last year.
The bill is currently before the state鈥檚 Committee on Transportation.