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Asset improvement program - 74 Pa. Cons. Stat. § 1514

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     § 1514.  Asset improvement program.
        (a)  Eligible applicants.--
            (1)  The following may apply for financial assistance for
        improvement, replacement or expansion of capital projects
        under this section:
                (i)  A local transportation organization.
                (ii)  An agency or instrumentality of the
            Commonwealth.
                (iii)  A person responsible for coordinating
            community transportation program services.
                (iv)  Any other person the department deems to be
            eligible.
            (2)  The department shall develop and maintain four-year
        and 12-year plans that summarize the capital projects and
        financial assistance commitments for each applicant. The
        department may enter into multiyear agreements to provide
        financial assistance for capital projects based upon cash
        flow and revenue projections for the fund. Each capital
        project shall be based on the plan developed by the
        department.
        (b)  Applications.--In addition to information required under
     section 1507 (relating to application and approval process), an
     application for financial assistance under this section shall
     include the following:
            (1)  Evidence satisfactory to the department that the
        proposed capital project is included in the first year of the
        applicant's four-year capital plan and its federally approved
        transportation improvement program.
            (2)  If an applicant is requesting financial assistance
        for replacement of a capital project, evidence satisfactory
        to the department that the capital project to be replaced has
        exceeded the useful life criteria as defined by the
        department. At its discretion, the department may approve
        funding to replace a capital project that does not exceed the
        useful life criteria if the applicant provides documentation
        acceptable to the department to justify the early replacement
        of the capital project.
            (3)  If the applicant is requesting financial assistance
        for expansion of a capital project, evidence satisfactory to
        the department that the applicant will have sufficient future
        annual operating funds to support the proposed expansion.
            (4)  Any other information required by the department,
        including a return on investment analysis or a life cycle
        cost analysis, or both.
        (c)  Local match requirements.--Financial assistance under
     this section shall be matched by local or private cash funding
     in an amount not less than 3.33% of the amount of the financial
     assistance being provided. The source of funds for the local
     match shall be subject to the requirements of section 1513(d)(3)
     (relating to operating program).
        (d)  Conditions for receipt of bond funding.--Financial
     assistance that is funded by proceeds of Commonwealth capital
     bonds may be provided to an applicant if all of the following
     conditions are met:
            (1)  The applicant's capital project has been authorized
        by a capital budget project itemization act.
            (2)  The applicant's capital project was included in the
        department's approved annual release request approving the
        use of the funds for the proposed capital project in the
        fiscal year in which the funds are expected to be expended.
            (3)  The department has approved the underlying
        application for the capital project.
        (e)  Priorities.--The award of financial assistance under
     this section shall be subject to the following set of priorities
     in descending order of significance unless a compelling return
     on investment analysis for a project in a lower category is
     provided to and approved by the department:
            (1)  Requests for funds required to support existing
        local bond issues currently supported with State revenue
        sources, such as debt service and asset leases. The
        Commonwealth pledges to and agrees with any person, firm or
        corporation holding any bonds previously issued by, or any
        other debt incurred by, a local transportation organization
        and secured in whole or part by a pledge of the funds
        provided to the local transportation organization from the
        fund that the Commonwealth will not limit or alter rights
        vested in a local transportation organization in any manner
        inconsistent with obligations of the local transportation
        organization to the obligees of the local transportation
        organization until all bonds previously issued or other debt
        incurred, together with the interest thereon, is fully paid
        or provided for.
            (2)  Requests for funds required to match federally
        approved capital projects funded under 49 U.S.C. §§ 5307
        (relating to urbanized area formula grants) and 5309
        (relating to capital investment grants and loans) and other
        federally approved capital projects.
            (3)  Other non-Federal capital projects as determined by
        the department, which shall be further subject to the
        following set of priorities in descending order of
        significance:
                (i)  Essential emergency asset improvement projects.
                (ii)  Standard replacement of existing assets that
            have exceeded their useful life.
                (iii)  Asset improvement projects to extend the
            useful life of the affected assets.
                (iv)  Acquisition of new assets and other acceptable
            purposes, other than projects to be funded under the new
            initiatives program described in section 1515 (relating
            to new initiatives program), as determined by the
            department.
        (f)  Bonding by award recipients.--With the approval of the
     department, an award recipient that is permitted by law to issue
     bonds may do so for the purpose of financing a multiyear capital
     project. The department shall enter into an agreement with the
     award recipient providing that payments of the awarded funds
     sufficient to satisfy requirements of the bonds issued be made
     directly to the trustee of the bondholders until such time as
     the bonds are retired.

        Cross References.  Section 1514 is referred to in sections
     1506, 1515 of this title.

Last modified: November 27, 2007