---
kind: "section"
citation: "42 U.S.C. § 16372"
title: "42"
title_heading: "The Public Health and Welfare"
number: "16372"
heading: "Determination of eligibility and project selection"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/16372"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter IX — Research and Development"
  - "Part J — Carbon Dioxide Transportation Infrastructure Finance and Innovation"
---

# §16372. Determination of eligibility and project selection

- (a) **Establishment of program—** The [Secretary](/usc/42/15801.md?p=4) shall establish and carry out a carbon dioxide transportation infrastructure finance and innovation program, under which the [Secretary](/usc/42/15801.md?p=4) shall provide for eligible [projects](/usc/42/16371.md?p=12) in accordance with this part—
  - (1) a [Federal credit instrument](/usc/42/16371.md?p=5) under [section 16373 of this title](/usc/42/16373.md);
  - (2) a grant under [section 16374 of this title](/usc/42/16374.md); or
  - (3) both a [Federal credit instrument](/usc/42/16371.md?p=5) and a grant.
- (b) **Eligibility—**
  - (1) **In general—** A [project](/usc/42/16371.md?p=12) shall be eligible to receive a [Federal credit instrument](/usc/42/16371.md?p=5) or a grant under the [CIFIA program](/usc/42/16371.md?p=1) if—
    - (A) the entity proposing to carry out the [project](/usc/42/16371.md?p=12) submits a [letter of interest](/usc/42/16371.md?p=7) prior to submission of an application under [paragraph (3)](#b-3) for the [project](/usc/42/16371.md?p=12); and
    - (B) the [project](/usc/42/16371.md?p=12) meets the criteria described in this subsection.
  - (2) **Creditworthiness—**
    - (A) **In general—** Each [project](/usc/42/16371.md?p=12) and [obligor](/usc/42/16371.md?p=10) that receives a [Federal credit instrument](/usc/42/16371.md?p=5) or a grant under the [CIFIA program](/usc/42/16371.md?p=1) shall be creditworthy, such that there exists a reasonable prospect of repayment of the principal and interest on the [Federal credit instrument](/usc/42/16371.md?p=5), as determined by the [Secretary](/usc/42/15801.md?p=4) under [subparagraph (B)](#b-2-B).
    - (B) **Reasonable prospect of repayment—** The [Secretary](/usc/42/15801.md?p=4) shall base a determination of whether there is a reasonable prospect of repayment under [subparagraph (A)](#b-2-A) on a comprehensive evaluation of whether the [obligor](/usc/42/16371.md?p=10) has a reasonable prospect of repaying the [Federal credit instrument](/usc/42/16371.md?p=5) for the eligible [project](/usc/42/16371.md?p=12), including evaluation of—
      - (i) the strength of the contractual terms of an eligible [project](/usc/42/16371.md?p=12) (if available for the applicable market segment);
      - (ii) the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the [Secretary](/usc/42/15801.md?p=4), and cash sweeps or other structural enhancements;
      - (iii) the projected financial strength of the [obligor](/usc/42/16371.md?p=10)—
        - (I) at the time of loan close; and
        - (II) throughout the loan term, including after the [project](/usc/42/16371.md?p=12) is completed;
      - (iv) the financial strength of the investors and strategic partners of the [obligor](/usc/42/16371.md?p=10), if applicable; and
      - (v) other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating [agencies](/usc/42/8262.md?p=1), as determined appropriate by the [Secretary](/usc/42/15801.md?p=4).
  - (3) **Applications—** To be eligible for assistance under the [CIFIA program](/usc/42/16371.md?p=1), an [obligor](/usc/42/16371.md?p=10) shall submit to the [Secretary](/usc/42/15801.md?p=4) a [project](/usc/42/16371.md?p=12) application at such time, in such manner, and containing such information as the [Secretary](/usc/42/15801.md?p=4) determines to be appropriate.
  - (4) **Eligible project costs—** A [project](/usc/42/16371.md?p=12) under the [CIFIA program](/usc/42/16371.md?p=1) shall have [eligible project costs](/usc/42/16371.md?p=4) that are reasonably anticipated to equal or exceed $100,000,000.
  - (5) **Revenue sources—** The applicable [Federal credit instrument](/usc/42/16371.md?p=5) shall be repayable, in whole or in part, from—
    - (A) user fees;
    - (B) payments owing to the [obligor](/usc/42/16371.md?p=10) under a public-private partnership; or
    - (C) other revenue sources that also secure or fund the [project obligations](/usc/42/16371.md?p=13).
  - (6) **Obligor will be identified later—** A [State](/usc/42/15951.md?p=b-2), local government, [agency](/usc/42/8262.md?p=1), or instrumentality of a [State](/usc/42/15951.md?p=b-2) or local government, or a public authority, may submit to the [Secretary](/usc/42/15801.md?p=4) an application under [paragraph (3)](#b-3), under which a private party to a public-private partnership will be—
    - (A) the [obligor](/usc/42/16371.md?p=10); and
    - (B) identified at a later date through completion of a procurement and selection of the private party.
  - (7) **Beneficial effects—** The [Secretary](/usc/42/15801.md?p=4) shall determine that financial assistance for each [project](/usc/42/16371.md?p=12) under the [CIFIA program](/usc/42/16371.md?p=1) will—
    - (A) attract public or private investment for the [project](/usc/42/16371.md?p=12); or
    - (B) enable the [project](/usc/42/16371.md?p=12) to proceed at an earlier date than the [project](/usc/42/16371.md?p=12) would otherwise be able to proceed or reduce the lifecycle costs (including debt service costs) of the [project](/usc/42/16371.md?p=12).
  - (8) **Project readiness—** To be eligible for assistance under the [CIFIA program](/usc/42/16371.md?p=1), the applicant shall demonstrate a reasonable expectation that the contracting process for [construction](/usc/42/300s–3.md?p=7) of the [project](/usc/42/16371.md?p=12) can commence by not later than 90 days after the date on which a [Federal credit instrument](/usc/42/16371.md?p=5) or grant is obligated for the [project](/usc/42/16371.md?p=12) under the [CIFIA program](/usc/42/16371.md?p=1).
- (c) **Selection among eligible projects—**
  - (1) **Establishment of application process—** The [Secretary](/usc/42/15801.md?p=4) shall establish an application process under which [projects](/usc/42/16371.md?p=12) that are eligible to receive assistance under [subsection (b)](#b) may—
    - (A) receive credit assistance on terms acceptable to the [Secretary](/usc/42/15801.md?p=4), if adequate funds are available (including any funds provided on behalf of an eligible [project](/usc/42/16371.md?p=12) under [paragraph (3)(B)(ii)](#c-3-B-ii)) to cover the [subsidy amount](/usc/42/16371.md?p=15) associated with the [Federal credit instrument](/usc/42/16371.md?p=5); and
    - (B) receive grants under [section 16374 of this title](/usc/42/16374.md) if—
      - (i) adequate funds are available to cover the amount of the grant; and
      - (ii) the [Secretary](/usc/42/15801.md?p=4) determines that the [project](/usc/42/16371.md?p=12) is eligible under [subsection (b)](#b).
  - (2) **Priority—** In selecting [projects](/usc/42/16371.md?p=12) to receive credit assistance under [subsection (b)](#b), the [Secretary](/usc/42/15801.md?p=4) shall give priority to [projects](/usc/42/16371.md?p=12) that—
    - (A) are large-capacity, [common carrier](/usc/42/16371.md?p=2) infrastructure;
    - (B) have demonstrated demand for use of the infrastructure by associated [projects](/usc/42/16371.md?p=12) that capture carbon dioxide from anthropogenic sources or ambient air;
    - (C) enable geographical diversity in associated [projects](/usc/42/16371.md?p=12) that capture carbon dioxide from anthropogenic sources or ambient air, with the goal of enabling [projects](/usc/42/16371.md?p=12) in all major carbon dioxide-emitting regions of the United States; and
    - (D) are sited within, or adjacent to, existing pipeline or other linear infrastructure corridors, in a manner that minimizes environmental disturbance and other siting concerns.
  - (3) **Master credit agreements—**
    - (A) **Priority projects—** The [Secretary](/usc/42/15801.md?p=4) may enter into a [master credit agreement](/usc/42/16371.md?p=9) for a [project](/usc/42/16371.md?p=12) that the [Secretary](/usc/42/15801.md?p=4) determines—
      - (i) will likely be eligible for credit assistance under [subsection (b)](#b), on obtaining—
        - (I) additional commitments from associated carbon capture [projects](/usc/42/16371.md?p=12) to use the [project](/usc/42/16371.md?p=12); or
        - (II) all necessary permits and approvals; and
      - (ii) is a [project](/usc/42/16371.md?p=12) of high priority, as determined in accordance with the criteria described in [paragraph (2)](#c-2).
    - (B) **Adequate funding not available—** If the [Secretary](/usc/42/15801.md?p=4) fully obligates funding to eligible [projects](/usc/42/16371.md?p=12) for a fiscal year and adequate funding is not available to fund a [Federal credit instrument](/usc/42/16371.md?p=5), a [project](/usc/42/16371.md?p=12) sponsor (including a unit of [State](/usc/42/15951.md?p=b-2) or local government) of an eligible [project](/usc/42/16371.md?p=12) may elect—
      - (i)
        - (I) to enter into a [master credit agreement](/usc/42/16371.md?p=9) in lieu of the [Federal credit instrument](/usc/42/16371.md?p=5); and
        - (II) to wait to execute a [Federal credit instrument](/usc/42/16371.md?p=5) until the fiscal year for which additional funds are available to receive credit assistance; or
      - (ii) if the lack of adequate funding is solely with respect to amounts available for the [subsidy amount](/usc/42/16371.md?p=15), to pay the [subsidy amount](/usc/42/16371.md?p=15) to fund the [Federal credit instrument](/usc/42/16371.md?p=5).
- (d) **Federal requirements—**
  - (1) **In general—** Nothing in this part supersedes the applicability of any other requirement under Federal law (including regulations).
  - (2) **NEPA—** Federal credit assistance may only be provided under this part for a [project](/usc/42/16371.md?p=12) that has received an environmental categorical exclusion, a finding of no significant impact, or a record of decision under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.).
- (e) **Use of American iron, steel, and manufactured goods—**
  - (1) **In general—** Except as provided in [paragraph (2)](#e-2), no [Federal credit instrument](/usc/42/16371.md?p=5) or grant provided under the [CIFIA program](/usc/42/16371.md?p=1) shall be made available for a [project](/usc/42/16371.md?p=12) unless all iron, steel, and manufactured goods used in the [project](/usc/42/16371.md?p=12) are [produced in the United States](/usc/42/16371.md?p=11).
  - (2) **Exceptions—** [Paragraph (1)](#e-1) shall not apply in any case or category of cases with respect to which the [Secretary](/usc/42/15801.md?p=4) determines that—
    - (A) the application would be inconsistent with the public interest;
    - (B) iron, steel, or a relevant manufactured good is not [produced in the United States](/usc/42/16371.md?p=11) in sufficient and reasonably available quantity, or of a satisfactory quality; or
    - (C) the inclusion of iron, steel, or a manufactured good [produced in the United States](/usc/42/16371.md?p=11) will increase the cost of the overall [project](/usc/42/16371.md?p=12) by more than 25 percent.
  - (3) **Waivers—** If the [Secretary](/usc/42/15801.md?p=4) receives a request for a waiver under this subsection, the [Secretary](/usc/42/15801.md?p=4) shall—
    - (A) make available to the public a copy of the request, together with any information available to the [Secretary](/usc/42/15801.md?p=4) concerning the request—
      - (i) on an informal basis; and
      - (ii) by electronic means, including on the official public website of the [Department](/usc/42/15801.md?p=1);
    - (B) allow for informal public comment relating to the request for not fewer than 15 days before making a determination with respect to the request; and
    - (C) approve or disapprove the request by not later than the date that is 120 days after the date of receipt of the request.
  - (4) **Applicability—** This subsection shall be applied in accordance with any applicable obligations of the United States under international agreements.
- (f) **Application processing procedures—**
  - (1) **Notice of complete application—** Not later than 30 days after the date of receipt of an application under this section, the [Secretary](/usc/42/15801.md?p=4) shall provide to the applicant a written notice describing whether—
    - (A) the application is complete; or
    - (B) additional information or materials are needed to complete the application.
  - (2) **Approval or denial of application—** Not later than 60 days after the date of issuance of a written notice under [paragraph (1)](#f-1), the [Secretary](/usc/42/15801.md?p=4) shall provide to the applicant a written notice informing the applicant whether the [Secretary](/usc/42/15801.md?p=4) has approved or disapproved the application.
- (g) **Development-phase activities—** Any [Federal credit instrument](/usc/42/16371.md?p=5) provided under the [CIFIA program](/usc/42/16371.md?p=1) may be used to finance up to 100 percent of the cost of development-phase activities, as described in [section 16371(4)(A) of this title](/usc/42/16371.md?p=4-A).

## Source credit

(Pub. L. 109–58, title IX, § 999B, as added Pub. L. 117–58, div. D, title III, § 40304(a), Nov. 15, 2021, 135 Stat. 991.)

## Notes

### Editorial Notes

### References in Text

The National Environmental Policy Act of 1969, referred to in subsec. (d)(2), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of this title and Tables.

### Prior Provisions

A prior section 16372, Pub. L. 109–58, title IX, § 999B, Aug. 8, 2005, 119 Stat. 917, related to administration of the program under former part J, prior to repeal by Pub. L. 113–67, div. A, title III, § 301(a), Dec. 26, 2013, 127 Stat. 1181.

### Statutory Notes and Related Subsidiaries

### Wage Rate Requirements

For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of this title.