[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1769 Placed on Calendar Senate (PCS)]
Calendar No. 213
112th CONGRESS
1st Session
S. 1769
To put workers back on the job while rebuilding and modernizing
America.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 31, 2011
Ms. Klobuchar (for herself, Mr. Manchin, Mr. Whitehouse, Mr. Reid, Mr.
Kerry, Mrs. Boxer, Mr. Coons, Mr. Begich, Mr. Lautenberg, Mr. Franken,
Mr. Schumer, Mr. Nelson of Florida, Mr. Blumenthal, Mrs. Feinstein, Mr.
Levin, Mr. Menendez, Mr. Brown of Ohio, Ms. Stabenow, and Mr. Durbin)
introduced the following bill; which was read the first time
November 1, 2011
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To put workers back on the job while rebuilding and modernizing
America.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Rebuild America
Jobs Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Buy American--Use of American iron, steel, and manufactured
goods.
Sec. 3. Wage rate and employment protection requirements.
TITLE I--CREATING JOBS THROUGH INFRASTRUCTURE MODERNIZATION
Subtitle A--Immediate Transportation Infrastructure Investments
Sec. 101. Immediate transportation infrastructure investments.
Subtitle B--Building and Upgrading Infrastructure for Long-term
Development
Sec. 121. Short title.
Sec. 122. Findings and purpose.
Sec. 123. Definitions.
Sec. 124. Establishment and general authority of American
Infrastructure Financing Authority.
Sec. 125. Voting members of the board of directors.
Sec. 126. Chief executive officer of AIFA.
Sec. 127. Powers and duties of the board of directors.
Sec. 128. Senior management.
Sec. 129. Special Inspector General for AIFA.
Sec. 130. Other personnel.
Sec. 131. Compliance.
Sec. 132. Terms and limitations on direct loans and loan guarantees.
Sec. 133. Loan terms and repayment.
Sec. 134. Compliance and enforcement.
Sec. 135. Audits; reports to the President and Congress.
Sec. 136. Administrative fees.
Sec. 137. Efficiency of AIFA.
Sec. 138. Funding.
Subtitle C--Extension of Exemption From Alternative Minimum Tax
Treatment for Certain Tax-exempt Bonds
Sec. 141. Extension of exemption from alternative minimum tax treatment
for certain tax-exempt bonds.
TITLE II--SURTAX ON MILLIONAIRES
Sec. 201. Surtax on millionaires.
SEC. 2. BUY AMERICAN--USE OF AMERICAN IRON, STEEL, AND MANUFACTURED
GOODS.
(a) In General.--None of the funds appropriated or otherwise made
available by this Act may be used for a project for the construction,
alteration, maintenance, or repair of a public building or public work
unless all of the iron, steel, and manufactured goods used in the
project are produced in the United States.
(b) Exception.--Subsection (a) shall not apply in any case or
category of cases in which the head of the Federal department or agency
involved determines that--
(1) applying subsection (a) would be inconsistent with the
public interest;
(2) iron, steel, and the relevant manufactured goods are
not produced in the United States in sufficient and reasonably
available quantities and of a satisfactory quality; or
(3) inclusion of iron, steel, and manufactured goods
produced in the United States will increase the cost of the
overall project by more than 25 percent.
(c) Waiver.--If the head of a Federal department or agency
determines that it is necessary to waive the application of subsection
(a) based on a finding under subsection (b), the head of the department
or agency shall publish in the Federal Register a detailed written
justification as to why the provision is being waived.
(d) Application.--This section shall be applied in a manner
consistent with United States obligations under international
agreements.
SEC. 3. WAGE RATE AND EMPLOYMENT PROTECTION REQUIREMENTS.
(a) In General.--All laborers and mechanics employed on projects
funded directly by, or assisted in whole or in part by and through, the
Federal Government or any other entity established pursuant to this Act
shall be paid wages at rates not less than those prevailing on projects
of a character similar in the locality as determined by the Secretary
of Labor in accordance with subchapter IV of chapter 31 of title 40,
United States Code.
(b) Authority of Secretary of Labor.--With respect to the labor
standards specified in this section, the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan Numbered
14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40,
United States Code.
(c) Employee Protective Arrangements.--Projects (as defined in
section 47102 of title 49, United States Code) that are funded directly
by, or assisted in whole or in part by and through, the Federal
Government or any other entity established pursuant to this Act shall
be subject to the requirements under section 5333(b) of title 49,
United States Code.
TITLE I--CREATING JOBS THROUGH INFRASTRUCTURE MODERNIZATION
Subtitle A--Immediate Transportation Infrastructure Investments
SEC. 101. IMMEDIATE TRANSPORTATION INFRASTRUCTURE INVESTMENTS.
(a) Grants-In-Aid for Airports.--
(1) In general.--There is made available to the Secretary
of Transportation $2,000,000,000 to carry out airport
improvement under subchapter I of chapter 471 and subchapter I
of chapter 475 of title 49, United States Code.
(2) Federal share; limitation on obligations.--The Federal
share payable of the costs for which a grant is made under this
subsection, shall be 100 percent. The amount made available
under this subsection shall not be subject to any limitation on
obligations for the Grants-In-Aid for Airports program set
forth in any Act or in title 49, United States Code.
(3) Distribution of funds.--Amounts provided to the
Secretary under this subsection shall not be subject to
apportionment formulas, special apportionment categories, or
minimum percentages under chapter 471 of title 49, United
States Code.
(4) Availability.--Amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(5) Administrative expenses.--Of the amounts made available
under this subsection, 0.3 percent--
(A) shall be available to the Secretary for
administrative expenses;
(B) shall remain available for obligation until
September 30, 2015; and
(C) may be used in conjunction with amounts
otherwise provided for the administration of the
Grants-In-Aid for Airports program.
(b) Next Generation Air Traffic Control Advancements.--
(1) In general.--There is made available to the Secretary
of Transportation $1,000,000,000 for necessary Federal Aviation
Administration capital, research and operating costs to carry
out Next Generation air traffic control system advancements.
(2) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act.
(c) Highway Infrastructure Investment.--
(1) In general.--There is made available to the Secretary
of Transportation $27,000,000,000 for--
(A) restoration, repair, construction and other
activities eligible under section 133(b) of title 23,
United States Code; and
(B) passenger and freight rail transportation and
port infrastructure projects eligible for assistance
under section 601(a)(8) of title 23, United States
Code.
(2) Federal share; limitation on obligations.--The Federal
share payable on account of any project or activity carried out
with funds made available under this subsection shall be, at
the option of the recipient, up to 100 percent of the total
cost of such project or activity. The amount made available
under this subsection shall not be subject to any limitation on
obligations for Federal-aid highways and highway safety
construction programs set forth in any Act or in title 23,
United States Code.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(4) Distribution of funds.--
(A) Apportionment.--After making the set-asides
required under paragraphs (8), (9), (10), (11), and
(13), and not later than 30 days after the date of the
enactment of this Act--
(i) 50 percent of the remaining amounts
made available under this subsection shall be
apportioned to States using the formula set
forth in section 104(b)(3) of title 23, United
States Code; and
(ii) the remaining amounts shall be
apportioned to States in the same ratio as the
obligation limitation for fiscal year 2010 was
distributed among the States in accordance with
the formula specified in section 120(a)(6) of
the Department of Transportation Appropriations
Act, 2010 (title I of division A of Public Law
111-117).
(B) State planning and oversight expenses.--Of
amounts apportioned under subparagraph (A), a State may
use up to 0.5 percent for activities related to
projects funded under this subsection, including
activities eligible under sections 134 and 135 of title
23, United States Code, State administration of
subgrants, and State oversight of subrecipients.
(5) Redistribution.--
(A) Initial allocation.--The Secretary shall, 180
days following the date of apportionment, withdraw from
each State an amount equal to 50 percent of the funds
apportioned under paragraph (4) to that State
(excluding funds suballocated within the State) less
the amount of funding obligated (excluding funds
suballocated within the State), and the Secretary shall
redistribute such amounts to other States that have had
no funds withdrawn under this subparagraph in the
manner described in section 120(c) of division A of
Public Law 111-117.
(B) Subsequent allocation.--One year following the
date of apportionment, the Secretary shall withdraw
from each recipient of funds apportioned under
paragraph (4) any unobligated funds, and the Secretary
shall redistribute such amounts to States that have had
no funds withdrawn under this paragraph (excluding
funds suballocated within the State) in the manner
described in section 120(c) of division A of Public Law
111-117.
(C) Extension.--At the request of a State, the
Secretary may provide an extension of the 1-year period
only to the extent that the Secretary determines that
the State has encountered extreme conditions that
create an unworkable bidding environment or other
extenuating circumstances. Before granting an
extension, the Secretary shall provide a thorough
justification for the extension in a written
notification submitted to the Committee on Environment
and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
(6) Transportation enhancements.--Three percent of the
amounts apportioned to a State under paragraph (4) shall be set
aside for the purposes described in section 133(d)(2) of title
23, United States Code (without regard to the comparison to
fiscal year 2005).
(7) Suballocation.--Thirty percent of the amounts
apportioned to a State under this subsection shall be
suballocated within the State in the manner and for the
purposes described in the first sentence of sections
133(d)(3)(A), 133(d)(3)(B), and 133(d)(3)(D) of title 23,
United States Code. Such suballocation shall be conducted in
every State. Amounts suballocated within a State to urbanized
areas and other areas shall not be subject to the
redistribution of amounts required 180 days after the date of
apportionment of funds provided by paragraph (6)(A).
(8) Puerto rico and territorial highway programs.--Of the
amounts provided under this subsection, $105,000,000 shall be
set aside for the Puerto Rico highway program authorized under
section 165 of title 23, United States Code, and $45,000,000
shall be for the territorial highway program authorized under
section 215 of title 23, United States Code.
(9) Federal lands and indian reservations.--Of the amounts
provided under this subsection, $550,000,000 shall be set aside
for investments in transportation at Indian reservations and
Federal lands in accordance with the following requirements:
(A) Of the funds set aside by this paragraph,
$310,000,000 shall be for the Indian Reservation Roads
program, $170,000,000 shall be for the Park Roads and
Parkways program, $60,000,000 shall be for the Forest
Highway Program, and $10,000,000 shall be for the
Refuge Roads program.
(B) For investments at Indian reservations and
Federal lands, priority shall be given to capital
investments, and to projects and activities that can be
completed within 2 years of enactment of this Act.
(C) One year following the enactment of this Act,
to ensure the prompt use of the funding provided for
investments at Indian reservations and Federal lands,
the Secretary shall have the authority to redistribute
unobligated funds within the respective program for
which the funds were appropriated.
(D) Up to 4 percent of the funding provided for
Indian Reservation Roads may be used by the Secretary
of the Interior for program management and oversight
and project-related administrative expenses.
(E) Section 134(f)(3)(C)(ii)(II) of title 23,
United States Code, shall not apply to funds set aside
under this paragraph.
(10) Job training.--
(A) In general.--Of the amounts provided under this
subsection, $50,000,000 shall be set aside for the
development and administration of transportation
training programs under section 140(b) title 23, United
States Code.
(B) Competitive award.--Amounts set aside under
this paragraph shall be competitively awarded and used
for the purpose of providing training, apprenticeship
(including Registered Apprenticeship), skill
development, and skill improvement programs, as well as
summer transportation institutes and may be transferred
to, or administered in partnership with, the Secretary
of Labor and shall demonstrate to the Secretary of
Transportation program outcomes, including--
(i) impact on areas with transportation
workforce shortages;
(ii) diversity of training participants;
(iii) number of participants obtaining
certifications or credentials required for
specific types of employment;
(iv) employment outcome metrics, such as
job placement and job retention rates,
established in consultation with the Secretary
of Labor and consistent with metrics used by
programs under the Workforce Investment Act;
(v) to the extent practical, evidence that
the program did not preclude workers that
participate in training or apprenticeship
activities under the program from being
referred to, or hired on, projects funded under
this chapter; and
(vi) identification of areas of
collaboration with the Department of Labor
programs, including co-enrollment.
(C) Certification.--To be eligible to receive a
competitively awarded grant under this subsection, a
State must certify that at least 0.1 percent of the
amounts apportioned under the Surface Transportation
Program and Bridge Program will be obligated in the
first fiscal year after the date of the enactment of
this Act for job training activities, in accordance
with section 140(b) of title 23, United States Code.
(11) Disadvantaged business enterprises.--Of the amounts
provided under this subsection, $10,000,000 shall be set aside
for training programs and assistance programs under section
140(c) of title 23, United States Code. Amounts set aside under
this paragraph should be allocated to businesses that have
proven success in adding staff while effectively completing
projects.
(12) Conditions.--Amounts made available under this
subsection--
(A) shall be administered as if apportioned under
chapter 1 of title 23, United States Code, except for--
(i) amounts made available for investments
in transportation at Indian reservations and
Federal lands and for the territorial highway
program, which shall be administered in
accordance with chapter 2 of such title 23; and
(ii) amounts made available for
disadvantaged business enterprises bonding
assistance, which shall be administered in
accordance with chapter 3 of title 49, United
States Code;
(B) may not be obligated for the purposes
authorized under section 115(b) of title 23, United
States Code;
(C) shall be in addition to any and all funds
provided for fiscal years 2011 and 2012 in any other
Act for ``Federal-aid Highways'' and shall not affect
the distribution of funds provided for ``Federal-aid
Highways'' in any other Act; and
(D) shall be subject to the requirements under
section 1101(b) of SAFETEA-LU (Public Law 109-59).
(13) Oversight.--The Administrator of the Federal Highway
Administration may set aside up to 0.15 percent of the amounts
provided under this subsection to fund the oversight by the
Administrator of projects and activities carried out with
amounts made available to the Federal Highway Administration
under this Act. Such amounts shall be available through
September 30, 2015.
(d) Capital Assistance for High-Speed Rail Corridors and Intercity
Passenger Rail Service.--
(1) In general.--
(A) Grants.--There is made available to the
Secretary of Transportation $4,000,000,000, which shall
be used--
(i) for grants for high-speed rail projects
authorized under sections 26104 and 26106 of
title 49, United States Code
(ii) for capital investment grants to
support intercity passenger rail service
authorized under section 24406 of such title
49;
(iii) congestion grants authorized under
section 24105 of such title 49; and
(iv) to enter into cooperative agreements
for the purposes set forth in clauses (i)
through (iii).
(B) Oversight.--The Administrator of the Federal
Railroad Administration may retain up to 1 percent of
the amounts made available under subparagraph (A) for
award and oversight by the Administrator of the grants
made under this subsection. Such amount shall remain
available for obligation until September 30, 2015.
(2) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(3) Federal share.--The Federal share payable of the costs
for which a grant or cooperative agreements is made under this
subsection shall be, at the option of the recipient, up to 100
percent.
(4) Interim guidance.--The Secretary shall issue interim
guidance to applicants covering application procedures and
administer the grants provided under this subsection pursuant
to that guidance until final regulations are issued.
(5) Intercity passenger rail corridors.--Not less than 85
percent of the amounts provided under this subsection shall be
for cooperative agreements that lead to the development of
entire segments or phases of intercity or high-speed rail
corridors.
(6) Conditions.--
(A) In addition to the provisions of title 49,
United States Code, that apply to each of the
individual programs funded under this subsection,
subsections (a)(2) and (i) of section 24402(i) of title
49, United States Code, and subsections (a) and (c) of
section 24403 of such title 49, shall also apply to
amounts provided under this subsection.
(B) A project need not be in a State rail plan
developed under chapter 227 of title 49, United States
Code, to be eligible for assistance under this
subsection.
(C) Recipients of grants under this paragraph shall
conduct all procurement transactions using such grant
funds in a manner that provides full and open
competition, as determined by the Secretary, in
compliance with existing labor agreements.
(e) Capital Grants to the National Railroad Passenger
Corporation.--
(1) In general.--There is made available $2,000,000,000 to
the Secretary of Transportation to award capital grants to the
National Railroad Passenger Corporation (Amtrak), as authorized
by section 101(c) of the Passenger Rail Investment and
Improvement Act of 2008 (Public Law 110-432).
(2) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(3) Project priority.--The priority for the use of funds
shall be given to projects for the repair, rehabilitation, or
upgrade of railroad assets or infrastructure, and for capital
projects that expand passenger rail capacity including the
rehabilitation of rolling stock.
(4) Conditions.--
(A) None of the amounts under this subsection shall
be used to subsidize the operating losses of Amtrak.
(B) Amounts provided under this subsection shall be
awarded not later than 90 days after the date of the
enactment of this Act.
(C) The Secretary shall take measures to ensure
that projects funded under this subsection shall be
completed not later than 2 years after the date of the
enactment of this Act, and shall serve to supplement
and not supplant planned expenditures for such
activities from other Federal, State, local and
corporate sources. The Secretary shall submit written
certification to the Committee on Appropriations of the
Senate and the Committee on Armed Services of the House
of Representatives that the Secretary is in compliance
with this subparagraph.
(5) Oversight.--The Administrator of the Federal Railroad
Administration may set aside 0.5 percent of the amounts
provided under this subsection to fund the oversight by the
Administrator of projects and activities carried out with funds
made available in this subsection, and such amounts shall be
available through September 30, 2015.
(f) Transit Capital Assistance.--
(1) In general.--There is made available to the Secretary
of Transportation $3,000,000,000 for grants for transit capital
assistance grants as defined by section 5302(a)(1) of title 49,
United States Code. Notwithstanding any provision of chapter 53
of such title 49, a recipient of funding under this subsection
may use up to 10 percent of such funding for the operating
costs of equipment and facilities for use in public
transportation or for other eligible activities.
(2) Federal share; limitation on obligations.--The
applicable requirements of chapter 53 of title 49, United
States Code, shall apply to funding provided under this
subsection, except that the Federal share of the costs for
which any grant is made under this subsection shall be, at the
option of the recipient, up to 100 percent. The amount made
available under this subsection shall not be subject to any
limitation on obligations for transit programs set forth in any
Act or chapter 53 of title 49, United States Code.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(4) Distribution of funds.--The Secretary of Transportation
shall--
(A) provide 80 percent of the funds appropriated
under this subsection for grants under section 5307 of
title 49, United States Code, and apportion such funds
in accordance with section 5336 of such title;
(B) provide 10 percent of the funds appropriated
under this subsection in accordance with section 5340
of such title; and
(C) provide 10 percent of the funds appropriated
under this subsection for grants under section 5311 of
title 49, United States Code, and apportion such funds
in accordance with such section.
(5) Apportionment.--Amounts apportioned under this
subsection shall be apportioned not later than 21 days after
the date of the enactment of this Act.
(6) Redistribution.--
(A) Initial allocation.--The Secretary of
Transportation shall, 180 days following the date of
apportionment, withdraw from each urbanized area or
State an amount equal to 50 percent of the amounts
apportioned to such urbanized areas or States less the
amount of funding obligated, and the Secretary shall
redistribute such amounts to other urbanized areas or
States that have had no funds withdrawn under this
subparagraph utilizing whatever method the determines
to be appropriate to ensure that all funds
redistributed under this subparagraph shall be utilized
promptly.
(B) Subsequent allocation.--One year following the
date of apportionment, the Secretary shall withdraw
from each urbanized area or State any unobligated
funds, and the Secretary shall redistribute such
amounts to other urbanized areas or States that have
had no amounts withdrawn under this paragraph utilizing
whatever method the determines to be appropriate to
ensure that all funds redistributed under this
subparagraph shall be utilized promptly.
(C) Extension.--At the request of an urbanized area
or State, the Secretary may provide an extension of the
1-year period only to the extent that the Secretary
determines that the urbanized area or State has
encountered an unworkable bidding environment or other
extenuating circumstances. Before granting an
extension, the Secretary shall provide a thorough
justification for the extension in a written
notification submitted to the Committee on Environment
and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
(7) Conditions.--
(A) Of the amounts provided for section 5311 of
title 49, United States Code, 2.5 percent shall be made
available for subsection (c)(1) of such section.
(B) Amounts appropriated under this subsection
shall be subject to the requirements under section
1101(b) of SAFETEA-LU (Public Law 109-59).
(C) Amounts appropriated under this subsection may
not be commingled with amounts appropriated in any
prior fiscal year.
(8) Oversight.--Notwithstanding any other provision of
law--
(A) 0.3 percent of the amounts provided for grants
under sections 5307 and 5340 of title 49, United States
Code, and 0.3 percent of the amounts provided for
grants under section 5311 of such title 49, shall be
available for administrative expenses and program
management oversight; and
(B) amounts set aside under subparagraph (A) shall
be available through September 30, 2015.
(g) State of Good Repair.--
(1) In general.--There is made available to the Secretary
of Transportation $6,000,000,000 for capital expenditures
authorized under paragraphs (2) and (3) of section 5309(b) of
title 49, United States Code.
(2) Federal share.--The applicable requirements under
chapter 53 of title 49, United States Code, shall apply to
amounts made available under this subsection, except that the
Federal share of the costs for which a grant is made under this
subsection shall be, at the option of the recipient, up to 100
percent.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(4) Distribution of funds.--
(A) Fixed guideway systems.--Not later than 30 days
after the date of the enactment of this Act, the
Secretary of Transportation shall apportion not less
than 75 percent of the amounts made available under
this subsection for the modernization of fixed guideway
systems pursuant to the formula set forth in section
5336(b) title 49, United States Code (other than
paragraph (2)(A)(ii)).
(B) Bus systems.--Not later than 30 days after the
date of the enactment of this Act, the Secretary of
Transportation shall apportion not less than 25 percent
of the amounts appropriated under this subsection for
the restoration or replacement of existing public
transportation assets related to bus systems pursuant
to the formula set forth in section 5336 (other than
subsection (b)).
(5) Redistribution.--
(A) Initial allocation.--The Secretary of
Transportation shall, 180 days following the date of
apportionment, withdraw from each urbanized area an
amount equal to 50 percent of the amounts apportioned
to such urbanized area less the amount of funding
obligated, and the Secretary shall redistribute such
amounts to other urbanized areas that have had no funds
withdrawn under this paragraph utilizing whatever
method the determines to be appropriate to ensure that
all funds redistributed under this subparagraph shall
be utilized promptly.
(B) Subsequent allocation.--One year after the date
of apportionment, the Secretary shall withdraw from
each urbanized area any unobligated funds, and the
Secretary shall redistribute such amounts to other
urbanized areas that have had no amounts withdrawn
under this paragraph utilizing whatever method the
determines to be appropriate to ensure that all funds
redistributed under this subparagraph shall be utilized
promptly.
(C) Extension.--At the request of an urbanized
area, the Secretary may provide an extension of the 1-
year period if the Secretary determines that the
urbanized area has encountered an unworkable bidding
environment or other extenuating circumstances. Before
granting an extension, the Secretary shall provide a
thorough justification for the extension in a written
notification submitted to the Committee on Environment
and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
(6) Conditions.--
(A) Amounts appropriated under this subsection
shall be subject to the requirements under section
1101(b) of SAFETEA-LU (Public Law 109-59).
(B) Amounts appropriated under this subsection may
not be commingled with amounts appropriated in any
prior fiscal year.
(7) Oversight.--Notwithstanding any other provision of law,
0.3 percent of the funds under this subsection shall be
available for administrative expenses and program management
oversight and shall remain available for obligation until
September 30, 2015.
(h) Transportation Infrastructure Grants and Financing.--
(1) In general.--There is made available to the Secretary
of Transportation $5,000,000,000 for capital investments in
surface transportation infrastructure. The Secretary shall
distribute amounts made available under this subsection as
discretionary grants to be awarded to State and local
governments or transit agencies on a competitive basis for
projects that will have a significant impact on the Nation, a
metropolitan area, or a region.
(2) Federal share; limitation on obligations.--The Federal
share payable of the costs for which a grant is made under this
subsection shall be 100 percent.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation during the 2-year
period beginning on the date of the enactment of this Act. The
Secretary shall obligate not less than 50 percent of the such
amounts not later than 1 year after the date of the enactment
of this Act and obligate the remaining amounts not later than 2
years after such date of enactment.
(4) Project eligibility.--Projects eligible for funding
provided under this subsection include--
(A) highway or bridge projects eligible under title
23, United States Code, including interstate
rehabilitation, improvements to the rural collector
road system, the reconstruction of overpasses and
interchanges, bridge replacements, seismic retrofit
projects for bridges, and road realignments;
(B) public transportation projects eligible under
chapter 53 of title 49, United States Code, including
investments in projects participating in the New Starts
or Small Starts programs that will expedite the
completion of those projects and their entry into
revenue service;
(C) passenger and freight rail transportation
projects; and
(D) port infrastructure investments, including
projects that connect ports to other modes of
transportation and improve the efficiency of freight
movement.
(5) TIFIA program.--The Secretary may transfer amounts made
available under this subsection to the Federal Highway
Administration for the purpose of paying the subsidy and
administrative costs of projects eligible for federal credit
assistance under chapter 6 of title 23, United States Code, if
the Secretary determines that such use would advance the
purposes of this subsection.
(6) Project priority.--The Secretary shall give priority to
projects that are expected to be completed not later than 3
years after the date of the enactment of this Act.
(7) Deadline for issuance of competition criteria.--Not
later than 90 days after the date of the enactment of this Act,
the Secretary shall publish criteria on which to base the
competition for any grants awarded under this subsection. The
Secretary shall require applications for funding under this
subsection to be submitted not later than 180 days after the
publication of the criteria, and announce all projects selected
to be funded from such amounts not later than 1 year after the
date of the enactment of the Act.
(8) Applicability of title 40, united states code.--Each
project conducted using funds provided under this subsection
shall comply with the requirements under subchapter IV of
chapter 31 of title 40, United States Code.
(9) Administrative expenses.--The Secretary may retain up
to 0.5 percent of the amounts provided under this subsection,
and may transfer portions of those funds to the Administrator
of the Federal Highway Administration, the Administrator of the
Federal Transit Administration, the Administrator of the
Federal Railroad Administration, and the Administrator of the
Maritime Administration, to fund the award and oversight of
grants made under this subsection. Amounts retained under this
paragraph shall remain available for obligation until September
30, 2015.
(i) Local Hiring.--
(1) In general.--With regard to the funding made available
under subsections (a) through (h), the Secretary of
Transportation may establish standards under which a contract
for construction may be advertised that contains requirements
for the employment of individuals residing in or adjacent to
any of the areas in which the work is to be performed to
perform construction work required under the contract, if--
(A) all or part of the construction work performed
under the contract occurs in an area designated by the
Secretary as an area of high unemployment, using data
reported by the United States Department of Labor,
Bureau of Labor Statistics;
(B) the estimated cost of the project of which the
contract is a part is greater than $10,000,000, except
that the estimated cost of the project in the case of
construction funded under subsection (c) shall be
greater than $50,000,000; and
(C) the recipient may not require the hiring of
individuals who do not have the necessary skills to
perform work in any craft or trade unless the recipient
establishes reasonable provisions to train such
individuals to perform any such work under the contract
effectively.
(2) Project standards.--
(A) In general.--Any standards established by the
Secretary under this section shall ensure that any
requirements under subsection (c)(1)--
(i) do not compromise the quality of the
project;
(ii) are reasonable in scope and
application;
(iii) do not unreasonably delay the
completion of the project; and
(iv) do not unreasonably increase the cost
of the project.
(B) Available programs.--A portion of the amounts
made available under subsections (a) through (h) may be
allocated by the recipients of such funding for
training programs that comply with paragraph (1)(C).
The Secretary of Labor shall make available its
qualifying workforce and training development programs
to recipients desiring to establish training programs
that comply with paragraph (1)(C).
(3) Implementing regulations.--The Secretary shall
promulgate final regulations to implement this subsection.
(j) Administrative Provisions.--
(1) Applicability of title 40.--Each project using amounts
provided under this section shall comply with the requirements
under subchapter IV of chapter 31 of title 40, United States
Code.
(2) Buy american.--Section 1605 of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-
5) shall apply to each project conducted using amounts made
available under this section.
Subtitle B--Building and Upgrading Infrastructure for Long-term
Development
SEC. 121. SHORT TITLE.
This subtitle may be cited as the ``Building and Upgrading
Infrastructure for Long-Term Development''.
SEC. 122. FINDINGS AND PURPOSE.
(1) Findings.--Congress finds that--
(A) infrastructure has always been a vital element
of the economic strength of the United States and a key
indicator of the international leadership of the United
States;
(B) the Erie Canal, the Hoover Dam, the railroads,
and the interstate highway system are all testaments to
American ingenuity and have helped propel and maintain
the United States as the world's largest economy;
(C) according to the World Economic Forum's Global
Competitiveness Report, the United States fell to
second place in 2009, and dropped to fourth place
overall in 2010, however, in the ``Quality of overall
infrastructure'' category of the same report, the
United States ranked 23rd in the world;
(D) according to the World Bank's 2010 Logistic
Performance Index, the capacity of countries to
efficiently move goods and connect manufacturers and
consumers with international markets is improving
around the world, and the United States now ranks
seventh in the world in logistics-related
infrastructure behind countries from both Europe and
Asia;
(E) according to a January 2009 report from the
University of Massachusetts/Alliance for American
Manufacturing entitled ``Employment, Productivity and
Growth,'' infrastructure investment is a ``highly
effective engine of job creation'';
(F) according to the American Society of Civil
Engineers, the current condition of the infrastructure
in the United States earns a grade point average of D,
and an estimated $2,200,000,000,000 investment is
needed over the next 5 years to bring American
infrastructure up to adequate condition;
(G) according to the National Surface
Transportation Policy and Revenue Study Commission,
$225,000,000,000 is needed annually from all sources
for the next 50 years to upgrade the United States
surface transportation system to a state of good repair
and create a more advanced system;
(H) the current infrastructure financing mechanisms
of the United States, both on the Federal and State
level, will fail to meet current and foreseeable
demands and will create large funding gaps;
(I) published reports state that there may not be
enough demand for municipal bonds to maintain the same
level of borrowing at the same rates, resulting in
significantly decreased infrastructure investment at
the State and local level;
(J) current funding mechanisms are not readily
scalable and do not--
(i) serve large in-State or cross
jurisdiction infrastructure projects, projects
of regional or national significance, or
projects that cross sector silos;
(ii) sufficiently catalyze private sector
investment; or
(iii) ensure the optimal return on public
resources;
(K) although grant programs of the United States
Government must continue to play a central role in
financing the transportation, environment, and energy
infrastructure needs of the United States, current and
foreseeable demands on existing Federal, State, and
local funding for infrastructure expansion clearly
exceed the resources to support these programs by
margins wide enough to prompt serious concerns about
the United States ability to sustain long-term economic
development, productivity, and international
competitiveness;
(L) the capital markets, including pension funds,
private equity funds, mutual funds, sovereign wealth
funds, and other investors, have a growing interest in
infrastructure investment and represent hundreds of
billions of dollars of potential investment; and
(M) the establishment of a United States
Government-owned, independent, professionally managed
institution that could provide credit support to
qualified infrastructure projects of regional and
national significance, making transparent merit-based
investment decisions based on the commercial viability
of infrastructure projects, would catalyze the
participation of significant private investment
capital.
(2) Purpose.--The purpose of this subtitle is to facilitate
investment in, and long-term financing of, economically viable
infrastructure projects of regional or national significance in
a manner that--
(A) complements existing Federal, State, local, and
private funding sources for these projects;
(B) introduces a merit-based system for financing
such projects; and
(C) mobilizes significant private sector
investment, creates jobs, and ensures United States
competitiveness through an institution that limits the
need for ongoing Federal funding.
SEC. 123. DEFINITIONS.
In this subtitle:
(1) AIFA.--The term ``AIFA'' means the American
Infrastructure Financing Authority established under this
subtitle.
(2) Blind trust.--The term ``blind trust'' means a trust in
which the beneficiary has no knowledge of the specific holdings
and no rights over how those holdings are managed by the
fiduciary of the trust prior to the dissolution of the trust.
(3) Board of directors.--The term ``Board of Directors''
means Board of Directors of AIFA.
(4) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board of Directors of AIFA.
(5) Chief executive officer.--The term ``chief executive
officer'' means the chief executive officer of AIFA, appointed
under section 126.
(6) Cost; direct loan.--The terms ``cost'' and ``direct
loan'' have the meanings given such terms in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(7) Eligible entity.--The term ``eligible entity'' means an
individual, corporation, partnership (including a public-
private partnership), joint venture, trust, State, or other
non-Federal governmental entity, including a political
subdivision or any other instrumentality of a State, or a
revolving fund.
(8) Infrastructure projects.--
(A) In general.--The term ``eligible infrastructure
project'' means any non-Federal transportation, water,
or energy infrastructure project, or an aggregation of
such infrastructure projects, as provided in this
subtitle.
(B) Transportation infrastructure project.--The
term ``transportation infrastructure project'' means
the construction, alteration, or repair, including the
facilitation of intermodal transit, of the following
subsectors:
(i) Highway or road.
(ii) Bridge.
(iii) Mass transit.
(iv) Inland waterways.
(v) Commercial ports.
(vi) Airports.
(vii) Air traffic control systems.
(viii) Passenger rail, including high-speed
rail.
(ix) Freight rail systems.
(C) Water infrastructure project.--The term ``water
infrastructure project'' means the construction,
consolidation, alteration, or repair of the following
subsectors:
(i) Wastewater treatment facility.
(ii) Storm water management system.
(iii) Dam.
(iv) Solid waste disposal facility.
(v) Drinking water treatment facility.
(vi) Levee.
(vii) Open space management system.
(D) Energy infrastructure project.--The term
``energy infrastructure project'' means the
construction, alteration, or repair of the following
subsectors:
(i) Pollution reduced energy generation.
(ii) Transmission and distribution.
(iii) Storage.
(iv) Energy efficiency enhancements for
buildings, including public and commercial
buildings.
(E) Board authority to modify subsectors.--The
Board of Directors may make modifications to the
subsectors set forth in subparagraphs (B) through (D)
by a vote of not fewer than 5 of the voting members of
the Board of Directors.
(9) Investment prospectus.--
(A) In general.--The term ``investment prospectus''
means the processes and publications described in this
subsection that will guide the priorities and strategic
focus for the Bank's investments. The investment
prospectus shall follow rulemaking procedures under
section 553 of title 5, United States Code.
(B) Publication.--Not later than 1 year after the
date of the enactment of this Act, the Bank shall
publish a detailed description of its strategy in an
Investment Prospectus that--
(i) specifies what the Bank shall consider
significant to the economic competitiveness of
the United States or a region thereof in a
manner consistent with the primary objective;
(ii) specifies the priorities and strategic
focus of the Bank in forwarding its strategic
objectives and carrying out the Bank strategy;
(iii) specifies the priorities and
strategic focus of the Bank in promoting
greater efficiency in the movement of freight;
(iv) specifies the priorities and strategic
focus of the Bank in promoting the use of
innovation and best practices in the planning,
design, development and delivery of projects;
(v) describes in detail the framework and
methodology for calculating application
qualification scores and associated ranges as
specified in this subchapter, along with the
data to be requested from applicants and the
mechanics of calculations to be applied to that
data to determine qualification scores and
ranges;
(vi) describes how selection criteria will
be applied by the Chief Executive Officer in
determining the competitiveness of an
application and its qualification score and
range relative to other current applications
and previously funded applications; and
(vii) describes how the qualification score
and range methodology and project selection
framework are consistent with maximizing the
Bank goals in urban and rural areas.
(C) Approval.--The Investment Prospectus and any
subsequent updates to the Investment Prospectus shall
be approved by a majority vote of the Board of
Directors prior to publication.
(D) Updates.--The Bank shall update the Investment
Prospectus on every biennial anniversary of its
original publication.
(10) Investment-grade rating.--The term ``investment-grade
rating'' means a rating of BBB minus, Baa3, or higher assigned
to an infrastructure project by a ratings agency.
(11) Loan guarantee.--The term ``loan guarantee'' has the
meaning given such term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a).
(12) Public-private partnership.--The term ``public-private
partnership'' means any eligible entity--
(A)(i) which is undertaking the development of all
or part of an infrastructure project that will have a
public benefit, pursuant to requirements established in
one or more contracts between the entity and a State or
an instrumentality of a State; or
(ii) the activities of which, with respect to such
an infrastructure project, are subject to regulation by
a State or any instrumentality of a State;
(B) which owns, leases, or operates or will own,
lease, or operate, the project in whole or in part; and
(C) the participants in which include not fewer
than 1 nongovernmental entity with significant
investment and some control over the project or project
vehicle.
(13) Rural infrastructure project.--The term ``rural
infrastructure project'' means an infrastructure project in a
rural area (as defined in section 343(a)(13)(A) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(13)(A))).
(14) Secretary.--Unless the context otherwise requires, the
term ``Secretary'' means the Secretary of the Treasury or the
designee of the Secretary of the Treasury.
(15) Senior management.--The term ``senior management''
means--
(A) the chief financial officer, chief risk
officer, chief compliance officer, general counsel,
chief lending officer, and chief operations officer of
AIFA established under section 128; and
(B) such other officers as the Board of Directors
may, by majority vote, add to senior management.
(16) State.--The term ``State'' includes the District of
Columbia, Puerto Rico, Guam, American Samoa, the Virgin
Islands, the Commonwealth of Northern Mariana Islands, and any
other territory of the United States.
SEC. 124. ESTABLISHMENT AND GENERAL AUTHORITY OF AMERICAN
INFRASTRUCTURE FINANCING AUTHORITY.
(a) Establishment of AIFA.--The American Infrastructure Financing
Authority is established as a wholly owned Government corporation.
(b) General Authority of AIFA.--AIFA shall provide direct loans and
loan guarantees to facilitate infrastructure projects that are both
economically viable and of regional or national significance, and shall
have such other authority, as provided in this subtitle.
(c) Incorporation.--
(1) In general.--The Board of Directors first appointed
shall be deemed the incorporator of AIFA, and the incorporation
shall be held to have been effected from the date of the first
meeting of the Board of Directors.
(2) Corporate office.--AIFA shall--
(A) maintain an office in Washington, DC; and
(B) for purposes of venue in civil actions, be
considered to be a resident of Washington, DC.
(d) Responsibility of the Secretary.--The Secretary shall take such
action as may be necessary to assist in implementing AIFA, and in
carrying out the purpose of this Act.
(e) Rule of Construction.--Chapter 91 of title 31, United States
Code, does not apply to AIFA, unless otherwise specifically provided in
this subtitle.
SEC. 125. VOTING MEMBERS OF THE BOARD OF DIRECTORS.
(a) Voting Membership of the Board of Directors.--
(1) In general.--AIFA shall have a Board of Directors
consisting of 7 voting members appointed by the President, by
and with the advice and consent of the Senate, not more than 4
of whom shall be from the same political party.
(2) Chairperson.--One of the voting members of the Board of
Directors shall be designated by the President to serve as
Chairperson.
(3) Congressional recommendations.--Not later than 30 days
after the date of the enactment of this Act, the majority
leader of the Senate, the minority leader of the Senate, the
Speaker of the House of Representatives, and the minority
leader of the House of Representatives shall each submit a
recommendation to the President for appointment of a member of
the Board of Directors, after consultation with the appropriate
committees of Congress.
(b) Voting Rights.--Each voting member of the Board of Directors
shall have an equal vote in all decisions of the Board of Directors.
(c) Qualifications of Voting Members.--Each voting member of the
Board of Directors shall--
(1) be a citizen of the United States; and
(2) have significant demonstrated expertise in--
(A) the management and administration of a
financial institution relevant to the operation of
AIFA; or a public financial agency or authority; or
(B) the financing, development, or operation of
infrastructure projects; or
(C) analyzing the economic benefits of
infrastructure investment.
(d) Terms.--
(1) In general.--Except as otherwise provided in this
subtitle, each voting member of the Board of Directors shall be
appointed for a term of 4 years.
(2) Initial staggered terms.--Of the voting members first
appointed to the Board of Directors--
(A) the initial Chairperson and 3 of the other
voting members shall each be appointed for a term of 4
years; and
(B) the remaining 3 voting members shall each be
appointed for a term of 2 years.
(3) Date of initial nominations.--The initial nominations
for the appointment of all voting members of the Board of
Directors shall be made not later than 60 days after the date
of the enactment of this Act.
(4) Beginning of term.--The term of each of the initial
voting members appointed under this subtitle shall commence
immediately upon the date of appointment, except that, for
purposes of calculating the term limits specified in this
section, the initial terms shall each be construed as beginning
on January 22 of the year following the date of the initial
appointment.
(5) Vacancies.--A vacancy in the position of a voting
member of the Board of Directors shall be filled by the
President, and a member appointed to fill a vacancy on the
Board of Directors occurring before the expiration of the term
for which the predecessor was appointed shall be appointed only
for the remainder of that term.
(e) Meetings.--
(1) Open to the public; notice.--Except as provided in
paragraph (3), all meetings of the Board of Directors shall
be--
(A) open to the public; and
(B) preceded by reasonable public notice.
(2) Frequency.--The Board of Directors shall meet not later
than 60 days after the date on which all members of the Board
of Directors are first appointed, at least quarterly
thereafter, and otherwise at the call of either the Chairperson
or 5 voting members of the Board of Directors.
(3) Exception for closed meetings.--The voting members of
the Board of Directors may, by majority vote, close a meeting
to the public if, during the meeting to be closed, there is
likely to be disclosed proprietary or sensitive information
regarding an infrastructure project under consideration for
assistance under this Act. The Board of Directors shall prepare
minutes of any meeting that is closed to the public, and shall
make such minutes available as soon as practicable, not later
than 1 year after the date of the closed meeting, with any
necessary redactions to protect any proprietary or sensitive
information.
(4) Quorum.--For purposes of meetings of the Board of
Directors, 5 voting members of the Board of Directors shall
constitute a quorum.
(f) Compensation of Members.--Each voting member of the Board of
Directors shall be compensated at a rate equal to the daily equivalent
of the annual rate of basic pay prescribed for level III of the
Executive Schedule under section 5314 of title 5, United States Code,
for each day (including travel time) during which the member is engaged
in the performance of the duties of the Board of Directors.
(g) Conflicts of Interest.--A voting member of the Board of
Directors may not participate in any review or decision affecting an
infrastructure project under consideration for assistance under this
subtitle, if the member has or is affiliated with an entity who has a
financial interest in such project.
SEC. 126. CHIEF EXECUTIVE OFFICER OF AIFA.
(a) In General.--The chief executive officer of AIFA shall be a
nonvoting member of the Board of Directors, who shall be responsible
for all activities of AIFA, and shall support the Board of Directors as
set forth in this Act and as the Board of Directors deems necessary or
appropriate.
(b) Appointment and Tenure of the Chief Executive Officer.--
(1) In general.--The President shall appoint the chief
executive officer, by and with the advice and consent of the
Senate.
(2) Term.--The chief executive officer shall be appointed
for a term of 6 years.
(3) Vacancies.--Any vacancy in the office of the chief
executive officer shall be filled by the President, and the
person appointed to fill a vacancy in that position occurring
before the expiration of the term for which the predecessor was
appointed shall be appointed only for the remainder of that
term.
(c) Qualifications.--The chief executive officer--
(1) shall have significant expertise in management and
administration of a financial institution, or significant
expertise in the financing and development of infrastructure
projects, or significant expertise in analyzing the economic
benefits of infrastructure investment; and
(2) may not--
(A) hold any other public office;
(B) have any financial interest in an
infrastructure project then being considered by the
Board of Directors, unless that interest is placed in a
blind trust; or
(C) have any financial interest in an investment
institution or its affiliates or any other entity
seeking or likely to seek financial assistance for any
infrastructure project from AIFA, unless any such
interest is placed in a blind trust for the tenure of
the service of the chief executive officer plus 2
additional years.
(d) Responsibilities.--The chief executive officer shall have such
executive functions, powers, and duties as may be prescribed by this
Act, the bylaws of AIFA, or the Board of Directors, including--
(1) responsibility for the development and implementation
of the strategy of AIFA, including--
(A) the development and submission to the Board of
Directors of the investment prospectus, the annual
business plans and budget;
(B) the development and submission to the Board of
Directors of a long-term strategic plan; and
(C) the development, revision, and submission to
the Board of Directors of internal policies; and
(2) responsibility for the management and oversight of the
daily activities, decisions, operations, and personnel of AIFA,
including--
(A) the appointment of senior management, subject
to approval by the voting members of the Board of
Directors, and the hiring and termination of all other
AIFA personnel;
(B) requesting the detail, on a reimbursable basis,
of personnel from any Federal agency having specific
expertise not available from within AIFA, following
which request the head of the Federal agency may
detail, on a reimbursable basis, any personnel of such
agency reasonably requested by the chief executive
officer;
(C) assessing and recommending in the first
instance, for ultimate approval or disapproval by the
Board of Directors, compensation and adjustments to
compensation of senior management and other personnel
of AIFA as may be necessary for carrying out the
functions of AIFA;
(D) ensuring, in conjunction with the general
counsel of AIFA, that all activities of AIFA are
carried out in compliance with applicable law;
(E) overseeing the involvement of AIFA in all
projects, including--
(i) developing eligible projects for AIFA
financial assistance;
(ii) determining the terms and conditions
of all financial assistance packages;
(iii) monitoring all infrastructure
projects assisted by AIFA, including
responsibility for ensuring that the proceeds
of any loan made, guaranteed, or participated
in are used only for the purposes for which the
loan or guarantee was made;
(iv) preparing and submitting for approval
by the Board of Directors the documents
required under paragraph (1); and
(v) ensuring the implementation of
decisions of the Board of Directors; and
(F) such other activities as may be necessary or
appropriate in carrying out this Act.
(e) Compensation.--
(1) In general.--Any compensation assessment or
recommendation by the chief executive officer under this
subtitle shall be without regard to the provisions of chapter
51 or subchapter III of chapter 53 of title 5, United States
Code.
(2) Considerations.--The compensation assessment or
recommendation required under this section shall take into
account merit principles, where applicable, as well as the
education, experience, level of responsibility, geographic
differences, and retention and recruitment needs in determining
compensation of personnel.
SEC. 127. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.
The Board of Directors shall--
(a) as soon as is practicable after the date on which all members
are appointed, approve or disapprove senior management appointed by the
chief executive officer;
(b) not later than 180 days after the date on which all members are
appointed--
(1) develop and approve the bylaws of AIFA, including
bylaws for the regulation of the affairs and conduct of the
business of AIFA, consistent with the purpose, goals,
objectives, and policies set forth in this subtitle;
(2) establish subcommittees, including an audit committee
that is composed solely of members of the Board of Directors
who are independent of the senior management of AIFA;
(3) develop and approve, in consultation with senior
management, a conflict-of-interest policy for the Board of
Directors and for senior management;
(4) approve or disapprove internal policies that the chief
executive officer shall submit to the Board of Directors,
including--
(A) policies regarding the loan application and
approval process, including--
(i) disclosure and application procedures
to be followed by entities in the course of
nominating infrastructure projects for
assistance under this Act;
(ii) guidelines for the selection and
approval of projects;
(iii) specific criteria for determining
eligibility for project selection, consistent
with title II; and
(iv) standardized terms and conditions, fee
schedules, or legal requirements of a contract
or program, so as to carry out this Act; and
(B) operational guidelines; and
(5) approve or disapprove a multi-year or 1-year business
plan and budget for AIFA;
(c) ensure that AIFA is at all times operated in a manner that is
consistent with this subtitle, by--
(1) monitoring and assessing the effectiveness of AIFA in
achieving its strategic goals;
(2) periodically reviewing internal policies;
(3) reviewing and approving annual business plans, annual
budgets, and long-term strategies submitted by the chief
executive officer;
(4) reviewing and approving annual reports submitted by the
chief executive officer;
(5) engaging one or more external auditors, as set forth in
this subtitle; and
(6) reviewing and approving all changes to the organization
of senior management;
(d) appoint and fix, by a vote of 5 of the 7 voting members of the
Board of Directors, and without regard to the provisions of chapter 51
or subchapter III of chapter 53 of title 5, United States Code, the
compensation and adjustments to compensation of all AIFA personnel,
provided that in appointing and fixing any compensation or adjustments
to compensation under this subsection, the Board shall--
(1) consult with, and seek to maintain comparability with,
other comparable Federal personnel;
(2) consult with the Office of Personnel Management; and
(3) carry out such duties consistent with merit principles,
where applicable, as well as the education, experience, level
of responsibility, geographic differences, and retention and
recruitment needs in determining compensation of personnel;
(e) establish such other criteria, requirements, or procedures as
the Board of Directors may consider to be appropriate in carrying out
this subtitle;
(f) serve as the primary liaison for AIFA in interactions with
Congress, the Executive Branch, and State and local governments, and to
represent the interests of AIFA in such interactions and others;
(g) approve by a vote of 5 of the 7 voting members of the Board of
Directors any changes to the bylaws or internal policies of AIFA;
(h) have the authority and responsibility--
(1) to oversee entering into and carry out such contracts,
leases, cooperative agreements, or other transactions as are
necessary to carry out this subtitle with--
(A) any Federal department or agency;
(B) any State, territory, or possession (or any
political subdivision thereof, including State
infrastructure banks) of the United States; and
(C) any individual, public-private partnership,
firm, association, or corporation;
(2) to approve of the acquisition, lease, pledge, exchange,
and disposal of real and personal property by AIFA and
otherwise approve the exercise by AIFA of all of the usual
incidents of ownership of property, to the extent that the
exercise of such powers is appropriate to and consistent with
the purposes of AIFA;
(3) to determine the character of, and the necessity for,
the obligations and expenditures of AIFA, and the manner in
which the obligations and expenditures will be incurred,
allowed, and paid, subject to this Act and other Federal law
specifically applicable to wholly owned Federal corporations;
(4) to execute, in accordance with applicable bylaws and
regulations, appropriate instruments;
(5) to approve other forms of credit enhancement that AIFA
may provide to eligible projects, as long as the forms of
credit enhancements are consistent with the purposes of this
subtitle and terms set forth in this subtitle;
(6) to exercise all other lawful powers which are necessary
or appropriate to carry out, and are consistent with, the
purposes of AIFA;
(7) to sue or be sued in the corporate capacity of AIFA in
any court of competent jurisdiction;
(8) to indemnify the members of the Board of Directors and
officers of AIFA for any liabilities arising out of the actions
of the members and officers in such capacity, in accordance
with, and subject to the limitations contained in this
subtitle;
(9) to review all financial assistance packages to all
eligible infrastructure projects, as submitted by the chief
executive officer and to approve, postpone, or deny the same by
majority vote;
(10) to review all restructuring proposals submitted by the
chief executive officer, including assignation, pledging, or
disposal of the interest of AIFA in a project, including
payment or income from any interest owned or held by AIFA, and
to approve, postpone, or deny the same by majority vote; and
(11) to enter into binding commitments, as specified in
approved financial assistance packages;
(i) delegate to the chief executive officer those duties that the
Board of Directors deems appropriate, to better carry out the powers
and purposes of the Board of Directors under this section; and
(j) to approve a maximum aggregate amount of outstanding
obligations of AIFA at any given time, taking into consideration
funding, and the size of AIFA's addressable market for infrastructure
projects.
SEC. 128. SENIOR MANAGEMENT.
(a) In General.--Senior management shall support the chief
executive officer in the discharge of the responsibilities of the chief
executive officer.
(b) Appointment of Senior Management.--The chief executive officer
shall appoint such senior managers as are necessary to carry out the
purpose of AIFA, as approved by a majority vote of the voting members
of the Board of Directors.
(c) Term.--Each member of senior management shall serve at the
pleasure of the chief executive officer and the Board of Directors.
(d) Removal of Senior Management.--Any member of senior management
may be removed, either by a majority of the voting members of the Board
of Directors upon request by the chief executive officer, or otherwise
by vote of not fewer than 5 voting members of the Board of Directors.
(e) Senior Management.--
(1) In general.--Each member of senior management shall
report directly to the chief executive officer, other than the
Chief Risk Officer, who shall report directly to the Board of
Directors.
(2) Duties and responsibilities.--
(A) Chief financial officer.--The Chief Financial
Officer shall be responsible for all financial
functions of AIFA, provided that, at the discretion of
the Board of Directors, specific functions of the Chief
Financial Officer may be delegated externally.
(B) Chief risk officer.--The Chief Risk Officer
shall be responsible for all functions of AIFA relating
to--
(i) the creation of financial, credit, and
operational risk management guidelines and
policies;
(ii) credit analysis for infrastructure
projects;
(iii) the creation of conforming standards
for infrastructure finance agreements;
(iv) the monitoring of the financial,
credit, and operational exposure of AIFA; and
(v) risk management and mitigation actions,
including by reporting such actions, or
recommendations of such actions to be taken,
directly to the Board of Directors.
(C) Chief compliance officer.--The Chief Compliance
Officer shall be responsible for all functions of AIFA
relating to internal audits, accounting safeguards, and
the enforcement of such safeguards and other applicable
requirements.
(D) General counsel.--The General Counsel shall be
responsible for all functions of AIFA relating to legal
matters and, in consultation with the chief executive
officer, shall be responsible for ensuring that AIFA
complies with all applicable law.
(E) Chief operations officer.--The Chief Operations
Officer shall be responsible for all operational
functions of AIFA, including those relating to the
continuing operations and performance of all
infrastructure projects in which AIFA retains an
interest and for all AIFA functions related to human
resources.
(F) Chief lending officer.--The Chief Lending
Officer shall be responsible for--
(i) all functions of AIFA relating to the
development of project pipeline, financial
structuring of projects, selection of
infrastructure projects to be reviewed by the
Board of Directors, preparation of
infrastructure projects to be presented to the
Board of Directors, and set aside for rural
infrastructure projects;
(ii) the creation and management of--
(I) a Center for Excellence to
provide technical assistance to public
sector borrowers in the development and
financing of infrastructure projects;
and
(II) an Office of Rural Assistance
to provide technical assistance in the
development and financing of rural
infrastructure projects; and
(iii) the establishment of guidelines to
ensure diversification of lending activities by
region, infrastructure project type, and
project size.
(f) Changes to Senior Management.--The Board of Directors, in
consultation with the chief executive officer, may alter the structure
of the senior management of AIFA at any time to better accomplish the
goals, objectives, and purposes of AIFA, provided that the functions of
the Chief Financial Officer set forth in subsection (e)(2)(A) remain
separate from the functions of the Chief Risk Officer set forth in
subsection (e)(2)(B).
(g) Conflicts of Interest.--No individual appointed to senior
management may--
(1) hold any other public office;
(2) have any financial interest in an infrastructure
project then being considered by the Board of Directors, unless
that interest is placed in a blind trust; or
(3) have any financial interest in an investment
institution or its affiliates, AIFA or its affiliates, or other
entity then seeking or likely to seek financial assistance for
any infrastructure project from AIFA, unless any such interest
is placed in a blind trust during the term of service of that
individual in a senior management position, and for a period of
2 years thereafter.
SEC. 129. SPECIAL INSPECTOR GENERAL FOR AIFA.
(a) In General.--During the first 5 operating years of AIFA, the
Office of the Inspector General of the Department of the Treasury shall
have responsibility for AIFA.
(b) Office of the Special Inspector General.--Effective 5 years
after the date of the commencement of the operations of AIFA, there is
established the Office of the Special Inspector General for AIFA.
(c) Appointment of Inspector General; Removal.--
(1) Head of office.--The head of the Office of the Special
Inspector General for AIFA shall be the Special Inspector
General for AIFA (referred to in this section as the ``Special
Inspector General''), who shall be appointed by the President,
by and with the advice and consent of the Senate.
(2) Basis of appointment.--The appointment of the Special
Inspector General shall be made on the basis of integrity and
demonstrated ability in accounting, auditing, financial
analysis, law, management analysis, public administration, or
investigations.
(3) Timing of nomination.--The nomination of an individual
as Special Inspector General shall be made as soon as is
practicable after the effective date under subsection (b).
(4) Removal.--The Special Inspector General shall be
removable from office in accordance with the provisions of
section 3(b) of the Inspector General Act of 1978 (5 U.S.C.
App.).
(5) Rule of construction.--For purposes of section 7324 of
title 5, United States Code, the Special Inspector General
shall not be considered an employee who determines policies to
be pursued by the United States in the nationwide
administration of Federal law.
(6) Rate of pay.--The annual rate of basic pay of the
Special Inspector General shall be the annual rate of basic pay
for an Inspector General under section 3(e) of the Inspector
General Act of 1978 (5 U.S.C. App.).
(d) Duties.--
(1) In general.--The Special Inspector General shall
conduct, supervise, and coordinate audits and investigations of
the business activities of AIFA.
(2) Other systems, procedures, and controls.--The Special
Inspector General shall establish, maintain, and oversee such
systems, procedures, and controls as the Special Inspector
General considers appropriate to discharge the duty described
in paragraph (1).
(3) Additional duties.--In addition to the duties specified
in paragraphs (1) and (2), the Inspector General shall have the
duties and responsibilities of inspectors general under the
Inspector General Act of 1978.
(e) Powers and Authorities.--
(1) In general.--In carrying out the duties specified in
subsection (d), the Special Inspector General shall have the
authorities provided in section 6 of the Inspector General Act
of 1978.
(2) Additional authority.--The Special Inspector General
shall carry out the duties specified in subsection (d)(1) in
accordance with section 4(b)(1) of the Inspector General Act of
1978.
(f) Personnel, Facilities, and Other Resources.--
(1) Additional officers.--
(A) The Special Inspector General may select,
appoint, and employ such officers and employees as may
be necessary for carrying out the duties of the Special
Inspector General, subject to the provisions of title
5, United States Code, governing appointments in the
competitive service, and the provisions of chapter 51
and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay
rates.
(B) The Special Inspector General may exercise the
authorities under subsections (b) through (i) of
section 3161 of title 5, United States Code (without
regard to subsection (a) of that section).
(2) Retention of services.--The Special Inspector General
may obtain services as authorized by section 3109 of title 5,
United States Code, at daily rates not to exceed the equivalent
rate prescribed for grade GS-15 of the General Schedule by
section 5332 of such title.
(3) Ability to contract for audits, studies, and other
services.--The Special Inspector General may enter into
contracts and other arrangements for audits, studies, analyses,
and other services with public agencies and with private
persons, and make such payments as may be necessary to carry
out the duties of the Special Inspector General.
(4) Request for information.--
(A) In general.--Upon request of the Special
Inspector General for information or assistance from
any department, agency, or other entity of the Federal
Government, the head of such entity shall, insofar as
is practicable and not in contravention of any existing
law, furnish such information or assistance to the
Special Inspector General, or an authorized designee.
(B) Refusal to comply.--Whenever information or
assistance requested by the Special Inspector General
is, in the judgment of the Special Inspector General,
unreasonably refused or not provided, the Special
Inspector General shall report the circumstances to the
Secretary of the Treasury, without delay.
(g) Reports.--
(1) Annual report.--Not later than 1 year after the
confirmation of the Special Inspector General, and every
calendar year thereafter, the Special Inspector General shall
submit to the President a report summarizing the activities of
the Special Inspector General during the previous 1-year period
ending on the date of such report.
(2) Public disclosures.--Nothing in this section shall be
construed to authorize the public disclosure of information
that is--
(A) specifically prohibited from disclosure by any
other provision of law;
(B) specifically required by Executive order to be
protected from disclosure in the interest of national
defense or national security or in the conduct of
foreign affairs; or
(C) a part of an ongoing criminal investigation.
SEC. 130. OTHER PERSONNEL.
Except as otherwise provided in the bylaws of AIFA, the chief
executive officer, in consultation with the Board of Directors, shall
appoint, remove, and define the duties of such qualified personnel as
are necessary to carry out the powers, duties, and purpose of AIFA,
other than senior management, who shall be appointed in accordance with
section 249.
SEC. 131. COMPLIANCE.
The provision of assistance by the Board of Directors pursuant to
this Act shall not be construed as superseding any provision of State
law or regulation otherwise applicable to an infrastructure project.
SEC. 132. TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN GUARANTEES.
(a) Eligibility Criteria for Assistance From AIFA and Terms and
Limitations of Loans.--Any project whose use or purpose is private and
for which no public benefit is created shall not be eligible for
financial assistance from AIFA under this subtitle. Financial
assistance under this subtitle shall only be made available if the
applicant for such assistance has demonstrated to the satisfaction of
the Board of Directors that the infrastructure project for which such
assistance is being sought--
(1) is not for the refinancing of an existing
infrastructure project; and
(2) meets--
(A) any pertinent requirements set forth in this
subtitle;
(B) any criteria established by the Board of
Directors or chief executive officer in accordance with
this subtitle; and
(C) the definition of a transportation
infrastructure project, water infrastructure project,
or energy infrastructure project.
(b) Considerations.--The criteria established by the Board of
Directors pursuant to this subtitle shall provide adequate
consideration of--
(1) the economic, financial, technical, environmental, and
public benefits and costs of each infrastructure project under
consideration for financial assistance under this subtitle,
prioritizing infrastructure projects that--
(A) contribute to regional or national economic
growth;
(B) offer value for money to taxpayers;
(C) demonstrate a clear and significant public
benefit;
(D) lead to job creation; and
(E) mitigate environmental concerns;
(2) the means by which development of the infrastructure
project under consideration is being financed, including--
(A) the terms, conditions, and structure of the
proposed financing;
(B) the credit worthiness and standing of the
project sponsors, providers of equity, and co-
financiers;
(C) the financial assumptions and projections on
which the infrastructure project is based; and
(D) whether there is sufficient State or municipal
political support for the successful completion of the
infrastructure project;
(3) the likelihood that the provision of assistance by AIFA
will cause such development to proceed more promptly and with
lower costs than would be the case without such assistance;
(4) the extent to which the provision of assistance by AIFA
maximizes the level of private investment in the infrastructure
project or supports a public-private partnership, while
providing a significant public benefit;
(5) the extent to which the provision of assistance by AIFA
can mobilize the participation of other financing partners in
the infrastructure project;
(6) the technical and operational viability of the
infrastructure project;
(7) the proportion of financial assistance from AIFA;
(8) the geographic location of the project in an effort to
have geographic diversity of projects funded by AIFA;
(9) the size of the project and its impact on the resources
of AIFA;
(10) the infrastructure sector of the project, in an effort
to have projects from more than one sector funded by AIFA; and
(11) encourages use of innovative procurement, asset
management, or financing to minimize the all-in-life-cycle
cost, and improve the cost-effectiveness of a project.
(c) Application.--
(1) In general.--Any eligible entity seeking assistance
from AIFA under this Act for an eligible infrastructure project
shall submit an application to AIFA at such time, in such
manner, and containing such information as the Board of
Directors or the chief executive officer may require.
(2) Review of applications.--AIFA shall review applications
for assistance under this Act on an ongoing basis. The chief
executive officer, working with the senior management, shall
prepare eligible infrastructure projects for review and
approval by the Board of Directors.
(3) Dedicated revenue sources.--The Federal credit
instrument shall be repayable, in whole or in part, from tolls,
user fees, or other dedicated revenue sources that also secure
the infrastructure project obligations.
(d) Eligible Infrastructure Project Costs.--
(1) In general.--Except as provided in paragraph (2), to be
eligible for assistance under this subtitle, an infrastructure
project shall have project costs that are reasonably
anticipated to equal or exceed $100,000,000.
(2) Rural infrastructure projects.--To be eligible for
assistance under this subtitle, a rural infrastructure project
shall have project costs that are reasonably anticipated to
equal or exceed $25,000,000.
(e) Loan Eligibility and Maximum Amounts.--
(1) In general.--The amount of a direct loan or loan
guarantee under this subtitle may not exceed the lesser of 50
percent of the reasonably anticipated eligible infrastructure
project costs or, if the direct loan or loan guarantee does not
receive an investment grade rating, the amount of the senior
project obligations.
(2) Maximum annual loan and loan guarantee volume.--The
aggregate amount of direct loans and loan guarantees made by
AIFA in any single fiscal year may not exceed--
(A) during the first 2 fiscal years of the
operations of AIFA, $10,000,000,000;
(B) during fiscal years 3 through 9 of the
operations of AIFA, $20,000,000,000; or
(C) during any fiscal year thereafter,
$50,000,000,000.
(f) State and Local Permits Required.--The provision of assistance
by the Board of Directors pursuant to this subtitle shall not be deemed
to relieve any recipient of such assistance, or the related
infrastructure project, of any obligation to obtain required State and
local permits and approvals.
SEC. 133. LOAN TERMS AND REPAYMENT.
(a) In General.--A direct loan or loan guarantee under this
subtitle with respect to an eligible infrastructure project shall be on
such terms, subject to such conditions, and contain such covenants,
representations, warranties, and requirements (including requirements
for audits) as the chief executive officer determines appropriate.
(b) Terms.--A direct loan or loan guarantee under this subtitle--
(1) shall--
(A) be payable, in whole or in part, from tolls,
user fees, or other dedicated revenue sources that also
secure the senior project obligations (such as
availability payments and dedicated State or local
revenues); and
(B) include a rate covenant, coverage requirement,
or similar security feature supporting the project
obligations; and
(2) may have a lien on revenues described in paragraph (1),
subject to any lien securing project obligations.
(c) Base Interest Rate.--The base interest rate on a direct loan
under this subtitle shall be not less than the yield on United States
Treasury obligations of a similar maturity to the maturity of the
direct loan.
(d) Risk Assessment.--Before entering into an agreement for
assistance under this subtitle, the chief executive officer, in
consultation with the Director of the Office of Management and Budget
and considering rating agency preliminary or final rating opinion
letters of the project under this subtitle, shall estimate an
appropriate Federal credit subsidy amount for each direct loan and loan
guarantee, taking into account such letter, as well as any comparable
market rates available for such a loan or loan guarantee, should any
exist. The final credit subsidy cost for each loan and loan guarantee
shall be determined consistent with the Federal Credit Reform Act, 2
U.S.C. 661a et seq.
(e) Credit Fee.--With respect to each agreement for assistance
under this subtitle, the chief executive officer may charge a credit
fee to the recipient of such assistance to pay for, over time, all or a
portion of the Federal credit subsidy determined under subsection (d),
with the remainder paid by the account established for AIFA; provided,
that the source of fees paid under this subtitle shall not be a loan or
debt obligation guaranteed by the Federal Government. In the case of a
direct loan, such credit fee shall be in addition to the base interest
rate established under subsection (c).
(f) Maturity Date.--The final maturity date of a direct loan or
loan guaranteed by AIFA under this subtitle shall be not later than 35
years after the date of substantial completion of the infrastructure
project, as determined by the chief executive officer.
(g) Rating Opinion Letter.--
(1) In general.--The chief executive officer shall require
each applicant for assistance under this subtitle to provide a
rating opinion letter from at least 1 ratings agency,
indicating that the senior obligations of the infrastructure
project, which may be the Federal credit instrument, have the
potential to achieve an investment-grade rating.
(2) Rural infrastructure projects.--With respect to a rural
infrastructure project, a rating agency opinion letter
described in paragraph (1) shall not be required, except that
the loan or loan guarantee shall receive an internal rating
score, using methods similar to the ratings agencies generated
by AIFA, measuring the proposed direct loan or loan guarantee
against comparable direct loans or loan guarantees of similar
credit quality in a similar sector.
(h) Investment-grade Rating Requirement.--
(1) Loans and loan guarantees.--The execution of a direct
loan or loan guarantee under this subtitle shall be contingent
on the senior obligations of the infrastructure project
receiving an investment-grade rating.
(2) Rating of aifa overall portfolio.--The average rating
of the overall portfolio of AIFA shall be not less than
investment grade after 5 years of operation.
(i) Terms and Repayment of Direct Loans.--
(1) Schedule.--The chief executive officer shall establish
a repayment schedule for each direct loan under this subtitle,
based on the projected cash flow from infrastructure project
revenues and other repayment sources.
(2) Commencement.--Scheduled loan repayments of principal
or interest on a direct loan under this subtitle shall commence
not later than 5 years after the date of substantial completion
of the infrastructure project, as determined by the chief
executive officer of AIFA.
(3) Deferred payments of direct loans.--
(A) Authorization.--If, at any time after the date
of substantial completion of an infrastructure project
assisted under this subtitle, the infrastructure
project is unable to generate sufficient revenues to
pay the scheduled loan repayments of principal and
interest on the direct loan under this subtitle, the
chief executive officer may allow the obligor to add
unpaid principal and interest to the outstanding
balance of the direct loan, if the result would benefit
the taxpayer.
(B) Interest.--Any payment deferred under
subparagraph (A) shall--
(i) continue to accrue interest, in
accordance with the terms of the obligation,
until fully repaid; and
(ii) be scheduled to be amortized over the
remaining term of the loan.
(C) Criteria.--
(i) In general.--Any payment deferral under
subparagraph (A) shall be contingent on the
infrastructure project meeting criteria
established by the Board of Directors.
(ii) Repayment standards.--The criteria
established under clause (i) shall include
standards for reasonable assurance of
repayment.
(4) Prepayment of direct loans.--
(A) Use of excess revenues.--Any excess revenues
that remain after satisfying scheduled debt service
requirements on the infrastructure project obligations
and direct loan and all deposit requirements under the
terms of any trust agreement, bond resolution, or
similar agreement securing project obligations under
this subtitle may be applied annually to prepay the
direct loan, without penalty.
(B) Use of proceeds of refinancing.--A direct loan
under this subtitle may be prepaid at any time, without
penalty, from the proceeds of refinancing from non-
Federal funding sources.
(5) Sale of direct loans.--
(A) In general.--As soon as is practicable after
substantial completion of an infrastructure project
assisted under this subtitle, and after notifying the
obligor, the chief executive officer may sell to
another entity, or reoffer into the capital markets, a
direct loan for the infrastructure project, if the
chief executive officer determines that the sale or
reoffering can be made on favorable terms for the
taxpayer.
(B) Consent of obligor.--In making a sale or
reoffering under subparagraph (A), the chief executive
officer may not change the original terms and
conditions of the direct loan, without the written
consent of the obligor.
(j) Loan Guarantees.--
(1) Terms.--The terms of a loan guaranteed by AIFA under
this subtitle shall be consistent with the terms set forth in
this subtitle for a direct loan, except that the rate on the
guaranteed loan and any payment, pre-payment, or refinancing
features shall be negotiated between the obligor and the
lender, with the consent of the chief executive officer.
(2) Guaranteed lender.--A guaranteed lender shall be
limited to those lenders meeting the definition of that term in
section 601(a) of title 23, United States Code.
(k) Compliance With FCRA--In General.--Direct loans and loan
guarantees authorized by this subtitle shall be subject to the
provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.).
SEC. 134. COMPLIANCE AND ENFORCEMENT.
(a) Credit Agreement.--Notwithstanding any other provision of law,
each eligible entity that receives assistance under this subtitle from
AIFA shall enter into a credit agreement that requires such entity to
comply with all applicable policies and procedures of AIFA, in addition
to all other provisions of the loan agreement.
(b) AIFA Authority on Noncompliance.--In any case in which a
recipient of assistance under this subtitle is materially out of
compliance with the loan agreement, or any applicable policy or
procedure of AIFA, the Board of Directors may take action to cancel
unutilized loan amounts, or to accelerate the repayment terms of any
outstanding obligation.
(c) Rule of Construction.--Nothing in this subtitle is intended to
affect existing provisions of law applicable to the planning,
development, construction, or operation of projects funded under this
subtitle.
SEC. 135. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.
(a) Accounting.--The books of account of AIFA shall be maintained
in accordance with generally accepted accounting principles, and shall
be subject to an annual audit by independent public accountants of
nationally recognized standing appointed by the Board of Directors.
(b) Reports.--
(1) Board of directors.--Not later than 90 days after the
last day of each fiscal year, the Board of Directors shall
submit to the President and Congress a complete and detailed
report with respect to the preceding fiscal year, setting
forth--
(A) a summary of the operations of AIFA, for such
fiscal year;
(B) a schedule of the obligations of AIFA and
capital securities outstanding at the end of such
fiscal year, with a statement of the amounts issued and
redeemed or paid during such fiscal year;
(C) the status of infrastructure projects receiving
funding or other assistance pursuant to this subtitle
during such fiscal year, including all nonperforming
loans, and including disclosure of all entities with a
development, ownership, or operational interest in such
infrastructure projects;
(D) a description of the successes and challenges
encountered in lending to rural communities, including
the role of the Center for Excellence and the Office of
Rural Assistance established under this subtitle; and
(E) an assessment of the risks of the portfolio of
AIFA, prepared by an independent source.
(2) GAO.--Not later than 5 years after the date of the
enactment of this Act, the Comptroller General of the United
States shall conduct an evaluation of, and shall submit to
Congress a report on, activities of AIFA for the fiscal years
covered by the report that includes an assessment of the impact
and benefits of each funded infrastructure project, including a
review of how effectively each such infrastructure project
accomplished the goals prioritized by the infrastructure
project criteria of AIFA.
(c) Books and Records.--
(1) In general.--AIFA shall maintain adequate books and
records to support the financial transactions of AIFA, with a
description of financial transactions and infrastructure
projects receiving funding, and the amount of funding for each
such project maintained on a publically accessible database.
(2) Audits by the secretary and gao.--The books and records
of AIFA shall at all times be open to inspection by the
Secretary of the Treasury, the Special Inspector General, and
the Comptroller General of the United States.
SEC. 136. ADMINISTRATIVE FEES.
(a) In General.--In addition to fees that may be collected under
section 133(e), the chief executive officer shall establish and collect
fees from eligible funding recipients with respect to loans and loan
guarantees under this subtitle that--
(1) are sufficient to cover all or a portion of the
administrative costs to the Federal Government for the
operations of AIFA, including the costs of expert firms,
including counsel in the field of municipal and project
finance, and financial advisors to assist with underwriting,
credit analysis, or other independent reviews, as appropriate;
(2) may be in the form of an application or transaction
fee, or other form established by the CEO; and
(3) may be based on the risk premium associated with the
loan or loan guarantee, taking into consideration--
(A) the price of United States Treasury obligations
of a similar maturity;
(B) prevailing market conditions;
(C) the ability of the infrastructure project to
support the loan or loan guarantee; and
(D) the total amount of the loan or loan guarantee.
(b) Availability of Amounts.--Amounts collected under paragraphs
(1), (2), and (3) of subsection (a) shall be available without further
action; provided further, that the source of fees paid under this
section shall not be a loan or debt obligation guaranteed by the
Federal Government.
SEC. 137. EFFICIENCY OF AIFA.
The chief executive officer shall, to the extent possible, take
actions consistent with this subtitle to minimize the risk and cost to
the taxpayer of AIFA activities. Fees and premiums for loan guarantee
or insurance coverage will be set at levels that minimize
administrative and Federal credit subsidy costs to the Government (as
defined in section 502 of the Federal Credit Reform Act of 1990) of
such coverage, while supporting achievement of the program's
objectives, consistent with policies as set forth in the Business Plan.
SEC. 138. FUNDING.
There is appropriated to AIFA to carry out this subtitle, for the
cost of direct loans and loan guarantees subject to the limitations
under section 132, and for administrative costs, $10,000,000,000, to
remain available until expended. Such costs, including the costs of
modifying such loans, shall be as defined in section 502 of the Federal
Credit Reform Act of 1990. Of this amount, not more than $25,000,000
for each of fiscal years 2012 through 2013, and not more than
$50,000,000 for fiscal year 2014 may be used for administrative costs
of AIFA. Not more than 5 percent of such amount shall be used to offset
subsidy costs associated with rural projects. Amounts authorized shall
be available without further action.
Subtitle C--Extension of Exemption From Alternative Minimum Tax
Treatment for Certain Tax-exempt Bonds
SEC. 141. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT
FOR CERTAIN TAX-EXEMPT BONDS.
(a) In General.--Clause (vi) of section 57(a)(5)(C) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``January 1, 2011'' in subclause (I) and
inserting ``January 1, 2013''; and
(2) by striking ``and 2010'' in the heading and inserting
``, 2010, 2011, and 2012''.
(b) Adjusted Current Earnings.--Clause (iv) of section 56(g)(4)(B)
of the Internal Revenue Code of 1986 is amended--
(1) by striking ``January 1, 2011'' in subclause (I) and
inserting ``January 1, 2013''; and
(2) by striking ``and 2010'' in the heading and inserting
``, 2010, 2011, and 2012''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2010.
TITLE II--SURTAX ON MILLIONAIRES
SEC. 201. SURTAX ON MILLIONAIRES.
(a) In General.--Subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new part:
``PART VIII--SURTAX ON MILLIONAIRES
``Sec. 59B. Surtax on millionaires.
``SEC. 59B. SURTAX ON MILLIONAIRES.
``(a) General Rule.--In the case of a taxpayer other than a
corporation for any taxable year beginning after 2012, there is hereby
imposed (in addition to any other tax imposed by this subtitle) a tax
equal to 0.7 percent of so much of the modified adjusted gross income
of the taxpayer for such taxable year as exceeds $1,000,000 ($500,000,
in the case of a married individual filing a separate return).
``(b) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2013, each dollar amount under subsection (a)
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2011' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $10,000, such amount shall be rounded
to the next highest multiple of $10,000.
``(c) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means adjusted gross
income reduced by any deduction (not taken into account in determining
adjusted gross income) allowed for investment interest (as defined in
section 163(d)). In the case of an estate or trust, adjusted gross
income shall be determined as provided in section 67(e).
``(d) Special Rules.--
``(1) Nonresident alien.--In the case of a nonresident
alien individual, only amounts taken into account in connection
with the tax imposed under section 871(b) shall be taken into
account under this section.
``(2) Citizens and residents living abroad.--The dollar
amount in effect under subsection (a) shall be decreased by the
excess of--
``(A) the amounts excluded from the taxpayer's
gross income under section 911, over
``(B) the amounts of any deductions or exclusions
disallowed under section 911(d)(6) with respect to the
amounts described in subparagraph (A).
``(3) Charitable trusts.--Subsection (a) shall not apply to
a trust all the unexpired interests in which are devoted to one
or more of the purposes described in section 170(c)(2)(B).
``(4) Not treated as tax imposed by this chapter for
certain purposes.--The tax imposed under this section shall not
be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter or for
purposes of section 55.''.
(b) Clerical Amendment.--The table of parts for subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``part viii. surtax on millionaires.''.
(c) Section 15 Not to Apply.--The amendment made by subsection (a)
shall not be treated as a change in a rate of tax for purposes of
section 15 of the Internal Revenue Code of 1986.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
Calendar No. 213
112th CONGRESS
1st Session
S. 1769
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A BILL
To put workers back on the job while rebuilding and modernizing
America.
_______________________________________________________________________
November 1, 2011
Read the second time and placed on the calendar