2 DE Admin. Code 2312. Regulations Governing the Practice and Procedure for Administering the Transportation Infrastructure Investment Fund

DEPARTMENT OF TRANSPORTATION

Division of Planning

2300 Division of Planning and Policy

2312 Regulations Governing the Practice and Procedure for Administering the Transportation Infrastructure Investment Fund

1.0 Authorization

This regulation is adopted pursuant to 29 Del.C. §8422(d) .

2.0 Purpose

The purpose of this regulation is to establish the practice and procedure for the administration of the Transportation Infrastructure Investment Fund (the "Fund"). This regulation contains procedures governing the process for applying to the council for economic assistance under the Fund, pre-closing and post-closing procedures and criteria for the approval or disapproval of an application for economic assistance under the Fund.

29 DE Reg. 800 (03/01/26)

3.0 Definitions

The following words and terms, when used in this regulation, shall have the following respective meanings:

" Application " means an application made to the council on the form or forms, together with all relevant attachments, as the council may, in its sole discretion, require in connection with administration of the Fund.

" Applicant " means a person, including individuals, firms, partnerships, trusts, public or private corporations, or other legal entities, for which a project is undertaken or proposed to be undertaken.

" Council " means the Transportation Infrastructure Investment Fund Council as set forth in 29 Del.C. §8422 .

" DelDOT " means the Delaware Department of Transportation.

" Final approval " means the final approval of an application by the Secretary of the Department of Transportation and the Secretary of State.

" Grant " means a financial award in the form of funds to applicants for the specific intended use of the proceeds from the Fund.

" Grantee " means an applicant who has been awarded a grant.

" Project " means economic development or redevelopment activity to attract or expand employment

inal approval of an application by the Secretary of the Department of Transportation and the Secretary of State.

" Grant " means a financial award in the form of funds to applicants for the specific intended use of the proceeds from the Fund.

" Grantee " means an applicant who has been awarded a grant.

" Project " means economic development or redevelopment activity to attract or expand employment.

" Public endorser " means the State of Delaware or an agency thereof, or a county, municipality, local political subdivision within the State of Delaware.

" Secretaries " means the Cabinet Secretary of State and the Cabinet Secretary of Transportation jointly.

" TIIF scope of work " means the transportation infrastructure for which funding from the Fund is requested or awarded.

" Transportation infrastructure " for purposes of this regulation, shall include the following:

• A project that would construct, maintain, extend or enhance a highway, or road or bridge.

• A project that would construct, maintain, extend or enhance access to a transit or intermodal system.

• A project that would construct, maintain, extend or enhance access to commercial ports or airports.

29 DE Reg. 800 (03/01/26)

4.0 Infrastructure Grants

4.1 Grant Description. Proceeds of a grant are to be used to reimburse work performed for renovation, construction or other type of improvements to transportation infrastructure.

4.2 Eligibility Standards. To be eligible for a grant, a project must have at least 1 public endorser and expand employment in the State. Grants would only be authorized for transportation infrastructure located within the public right-of-way or on public land.

4.3 Project Approval Standards

4.3.1 Findings. As a precondition to approving a grant, the council shall find that the project would create a significant number of direct, permanent, quality, full-time jobs, and the associated transportation infrastructure improvements would benefit the public by improving infrastructure within the State

re located within the public right-of-way or on public land.

4.3 Project Approval Standards

4.3.1 Findings. As a precondition to approving a grant, the council shall find that the project would create a significant number of direct, permanent, quality, full-time jobs, and the associated transportation infrastructure improvements would benefit the public by improving infrastructure within the State. The council shall apply the following standards, where applicable, in making those findings and determinations:

4.3.1.1 Employment Standard. The council will review information concerning the applicant as submitted in an application. As a condition precedent to making a grant, the council shall determine that the applicant intends to provide gainful employment within the State. The standards to be considered by the council will include, the number of permanent, quality, full-time jobs created as a result of the project, the wage scale applicable to persons to be employed as a result of the project, the effect of the project on the tax base of the State or the county or municipality in which the project is to be located, and the expected impact that the project will have on the development of new or expanded economic activity within the State.

4.3.1.2 In determining whether the project will assist in creating "direct, permanent, quality full-time jobs" in the State, the applicant shall demonstrate to the council that the applicant, operator or principal user thereof has the capability to operate and maintain the project efficiently and that the applicant has not been convicted of a major labor law violation or of a violation involving moral turpitude by an agency or court of the federal government or agency or court of a state in the 2-year period immediately before the approval of the applicant’s application. In this regard, the council may, in its discretion, rely on a sworn affidavit of the applicant or an officer of the applicant or an opinion of counsel of the applicant to the effect

w violation or of a violation involving moral turpitude by an agency or court of the federal government or agency or court of a state in the 2-year period immediately before the approval of the applicant’s application. In this regard, the council may, in its discretion, rely on a sworn affidavit of the applicant or an officer of the applicant or an opinion of counsel of the applicant to the effect. If an applicant has been convicted of a violation, the council, in its sole discretion, may decline to consider the application. If requested by the council, the applicant shall provide similar proof from an operator or principal user of the project.

4.3.1.3 Financial Stability and Economic Sustainability. The applicant shall demonstrate to the council that it possesses financial stability and can also demonstrate that the project is economically sustainable. The applicant must meet all of the following:

4.3.1.3.1 Validly exist as a corporation, limited liability company, or other regulated entity.

4.3.1.3.2 Be in good standing under the laws of this State, duly-qualified to do business.

4.3.1.3.3 Be in good standing in other jurisdictions in which its conduct of business requires this qualification.

4.3.1.3.4 Possess business and professional licenses required under Titles 24 and 30 of the Delaware Code.

4.3.1.4 Public Purpose Standard. When applying the "public purpose standard", the council shall take into consideration whether the transportation infrastructure improvements associated with the project will enhance the infrastructure of the State and that it would have a positive impact on Delaware's future economic health and competitiveness

required under Titles 24 and 30 of the Delaware Code.

4.3.1.4 Public Purpose Standard. When applying the "public purpose standard", the council shall take into consideration whether the transportation infrastructure improvements associated with the project will enhance the infrastructure of the State and that it would have a positive impact on Delaware's future economic health and competitiveness. Factors to be considered by the council shall include whether the transportation infrastructure improvements will benefit the greater public and not just the applicant, whether the transportation infrastructure improvements will help attract additional economic development to the area where the project is being built, whether the transportation infrastructure would have otherwise required the use of State funding to be completed.

4.3.2 Clawback Provision. The council shall determine appropriate clawback provisions for applicants under which the applicant may be required to repay some or all of the grant.

4.3.3 Post-Grant Period - Annual Reporting. Unless waived or amended by the council, the applicant shall, for a period of 7 years following the award of grant, submit to the Division of Small Business, on an annual basis, financial statements in a form acceptable to the council, a progress report on the status of the project, including, the number of permanent, quality, full-time jobs created or saved as a result of the project and the wage scale applicable to those persons, an economic impact of the funding (sales, costs, etc.) and other information required by the council. Applicants shall report to the Division of Small Business no later than June 30 of the years for which the report is required.

29 DE Reg. 800 (03/01/26)

5.0 Application Procedure

5.1 Applicants may obtain application forms through DelDOT.

5.2 To apply for the grant, an applicant must submit a completed application concerning the project to DelDOT

tc.) and other information required by the council. Applicants shall report to the Division of Small Business no later than June 30 of the years for which the report is required.

29 DE Reg. 800 (03/01/26)

5.0 Application Procedure

5.1 Applicants may obtain application forms through DelDOT.

5.2 To apply for the grant, an applicant must submit a completed application concerning the project to DelDOT. An application must include the written certification of at least one public endorser for the project, a narrative of the transportation infrastructure needed to support the project outlining both the direct need and the benefits to the general public, proof of employment standards, financial stability and economic sustainability.

5.3 Completed applications will be reviewed by DelDOT and the Division of Small Business. DelDOT and the Division of Small Business shall use its reasonable best efforts to complete its review of the application within 60 days from the application deadline. No application will be reviewed by the council until it is complete to the satisfaction of DelDOT and the Division of Small Business.

5.4 Applications will be accepted on a quarterly basis, unless otherwise directed by the council.

5.5 A business applying to the Transportation Infrastructure Investment Fund shall validly exist as a corporation, limited liability company or other regulated entity and shall be in good standing under the laws of the State of Delaware, duly qualified to do business and shall be in good standing in other jurisdictions in which its conduct of business requires this qualification. An applying business shall possess required business and professional licenses in accordance with Titles 24 and 30 of the Delaware Code.

29 DE Reg

ity company or other regulated entity and shall be in good standing under the laws of the State of Delaware, duly qualified to do business and shall be in good standing in other jurisdictions in which its conduct of business requires this qualification. An applying business shall possess required business and professional licenses in accordance with Titles 24 and 30 of the Delaware Code.

29 DE Reg. 800 (03/01/26)

6.0 Approval Process

6.1 The council shall use its reasonable best efforts to complete its review of the application for preliminary approval or disapproval within 30 days from the date DelDOT and the Division of Small Business deems an application is complete, provided, however, that if no meeting of quorum of council is scheduled or held within 30 days of the application being deemed complete, the application will be considered at the next meeting of the council at which quorum is present.

6.2 If a majority of the council present determines that a project meets the approval standards outlined in subsection 6.1, and that the grant award would represent a prudent use of the Fund, then the council shall adopt a resolution recommending the issuance of the grant to the Secretaries for consideration for final approval.

6.3 Final approval is binding, however, the Secretaries may withdraw final approval before the disbursement of the grant, if it determines that:

6.3.1 The applicant’s circumstances have changed adversely since the date of final approval or since completion of the application, if this adverse change did not come to the council’s attention before final approval; or

6.3.2 The application contained a statement that was materially false or failed to include information necessary to prevent the application from being materially false; or

6.3.3 The applicant fails to enter into an agreement detailing the terms and conditions of the commitment letter within 1 year from the date of the commitment letter as detailed in subsection 6.5

ention before final approval; or

6.3.2 The application contained a statement that was materially false or failed to include information necessary to prevent the application from being materially false; or

6.3.3 The applicant fails to enter into an agreement detailing the terms and conditions of the commitment letter within 1 year from the date of the commitment letter as detailed in subsection 6.5.

6.4 The council will establish the term of the grant and the reimbursement schedule. The council may make recommendations on limitations or grant extensions and may only recommend withdrawal as set forth in subsection 6.3.

6.5 The applicant shall be issued a commitment letter outlining the terms and conditions of the final approval. The grant is encumbered from the Fund for the transportation infrastructure associated with the project on the execution of an agreement detailing the terms and conditions of the commitment letter.

6.6 The applicant shall enter into an agreement as set forth in subsection 6.5 within 1 year from the date of the commitment letter, or the grant may be forfeited as detailed in subsection 6.3.

29 DE Reg. 800 (03/01/26)

7.0 Assignment Process

7.1 Following execution of an agreement and before requesting reimbursement for the TIIF scope of work, the grantee may make a request to the council for consideration of assignment of the grant in its entirety to another business entity, provided the grantee is proposing:

7.1.1 No changes to the TIIF scope of work;

7.1.2 No changes in the previously awarded funding amount; and

7.1.3 No changes to the employment standard in the grantee’s original application.

7.2 The grantee shall include a written explanation of the reason for the assignment request

nsideration of assignment of the grant in its entirety to another business entity, provided the grantee is proposing:

7.1.1 No changes to the TIIF scope of work;

7.1.2 No changes in the previously awarded funding amount; and

7.1.3 No changes to the employment standard in the grantee’s original application.

7.2 The grantee shall include a written explanation of the reason for the assignment request.

7.3 A business entity under consideration for assignment of the grant shall validly exist as a corporation, limited liability company or other regulated entity and shall be in good standing under the laws of the State of Delaware, duly qualified to do business and shall be in good standing in other jurisdictions in which its conduct of business requires this qualification. A business entity shall possess required business and professional licenses in accordance with Titles 24 and 30 of the Delaware Code.

7.4 The grantee shall submit the assignment request with evidence of good standing under the laws of the State of Delaware, proof of qualification to do business, and required business and professional licenses per subsection 7.3 and at least 3 years of financial statements and personal financial statements, incomes tax returns and other documentation necessary for the Division of Small Business to determine the good standing and financial stability of the business entity under consideration for assignment.

7.5 Complete assignment requests will be reviewed by DelDOT and the Division of Small Business. DelDOT and the Division of Small Business shall use their reasonable best efforts to complete their review of the assignment request within 60 days from receipt of all required documentation per subsections 7.2 and 7.4. No assignment request shall be considered by the council until it is complete to the satisfaction of DelDOT and the Division of Small Business

T and the Division of Small Business. DelDOT and the Division of Small Business shall use their reasonable best efforts to complete their review of the assignment request within 60 days from receipt of all required documentation per subsections 7.2 and 7.4. No assignment request shall be considered by the council until it is complete to the satisfaction of DelDOT and the Division of Small Business.

7.6 If the council determines that an assignment request meets the approval standard outlined in subsections 7.1, 7.2, 7.3, 7.4, and 7.5 and that the grant assignment would represent a prudent use of the Fund, then the council shall adopt a resolution recommending the assignment of the grant to the Secretaries for consideration for final approval.

7.7 Following the council’s recommendation of the assignment, the assignment process shall follow subsections 6.3, 6.4, 6.5, and 6.6 of this regulation.

7.8 A grantee that submits an assignment request that proposes changes to the TIIF scope of work or changes in the previously awarded funding amount or changes to the employment standard in the grantee’s original application shall follow the application procedure in Section 5.0 and approval process in Section 6.0 contained in this regulation.

29 DE Reg. 800 (03/01/26)

23 DE Reg. 400 (11/01/19)

29 DE Reg. 800 (03/01/26)