[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2553 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2553
To facilitate efficient investments and financing of infrastructure
projects and new job creation through the establishment of a National
Infrastructure Development Bank, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2013
Ms. DeLauro (for herself, Mr. Israel, Mr. Ellison, Mr. Tierney, Mr.
Cicilline, Mr. McGovern, Ms. Meng, Mr. Maffei, Mr. Tonko, Ms.
Slaughter, Ms. Schakowsky, Mr. Sarbanes, Mrs. Christensen, Mr. Braley
of Iowa, Mr. Yarmuth, Mr. Rush, Ms. Chu, Ms. Pingree of Maine, Mr.
Larson of Connecticut, Ms. Norton, Mr. Honda, Ms. Eshoo, Mr. Lynch, Mr.
Welch, Mr. Michaud, Mr. Sires, Ms. Bordallo, Ms. Shea-Porter, Ms.
Speier, Mr. Lowenthal, Mr. Pocan, Mr. Takano, Mr. Richmond, Ms. Esty,
Mr. Courtney, Mr. Pascrell, Mr. Deutch, Mr. Langevin, Ms. Bonamici, Ms.
McCollum, Mrs. Capps, Mr. Blumenauer, Mr. Conyers, Mr. Al Green of
Texas, Mr. Watt, Mr. Moran, Mr. Grijalva, Ms. Lee of California, Mr.
Garamendi, Mr. Carson of Indiana, Mr. Keating, Mr. Veasey, Ms.
Duckworth, Mr. Van Hollen, Ms. Matsui, Mrs. Kirkpatrick, Ms. Linda T.
Sanchez of California, Mr. Lipinski, Mr. Heck of Washington, Mr.
Sherman, Mr. Himes, Mr. Price of North Carolina, and Mr. Farr)
introduced the following bill; which was referred to the Committee on
Energy and Commerce, and in addition to the Committees on
Transportation and Infrastructure, Financial Services, and Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To facilitate efficient investments and financing of infrastructure
projects and new job creation through the establishment of a National
Infrastructure Development Bank, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Infrastructure Development
Bank Act of 2013''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Investment in infrastructure has always created jobs
and economic growth for the United States and has been a key
component of maintaining a global competitive edge for the
United States.
(2) The Erie Canal, the transcontinental railroad, the
Hoover Dam, rural electrification, and the interstate highway
system are all examples of investments in infrastructure that
created the conditions for future economic growth.
(3) According to the World Economic Forum Global
Competitiveness Report, the United States ranks 14th overall in
infrastructure.
(4) 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
$3,600,000,000,000 investment is needed by 2020 to meet
adequate conditions.
(5) 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 our
surface transportation system to a state of good repair and
create a more advanced system.
(6) The Environmental Protection Agency projects that--
(A) $334,800,000,000 is needed to invest in
infrastructure improvements over 20 years to ensure the
provision of safe water; and
(B) $202,500,000,000 is needed for publicly owned
wastewater systems-related infrastructure needs over 20
years.
(7) According to the Edison Electric Institute, the
electric power industry will need to invest $298,000,000,000 in
the Nation's transmission system in the next 20 years in order
to maintain reliable service.
(8) According to the Organization for Economic Cooperation
and Development (OECD), the United States ranks 15th among OECD
nations in fixed and wireless broadband access per 100
inhabitants.
(9) Although grant programs of the Government must continue
to play a central role in financing the transportation,
environment, energy, and telecommunications infrastructure
needs of the United States, current and foreseeable demands on
existing Federal, State, and local funding for infrastructure
expansion 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.
(10) The capital markets, including central banks, pension
funds, financial institutions, sovereign wealth funds, and
insurance companies, have a growing interest in infrastructure
investment. The establishment of a United States Government-
owned institution that would provide this investment
opportunity to finance qualifying infrastructure projects would
attract needed capital for United States infrastructure
development.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions apply unless
the context requires otherwise:
(1) American infrastructure bond.--The term ``American
Infrastructure Bond'' means a bond described under section 17.
(2) Bank.--The term ``Bank'' means the National
Infrastructure Development Bank established under section 4(a).
(3) Board.--The term ``Board'' means the National
Infrastructure Development Bank Board.
(4) Chief asset and liability management officer.--The term
``chief asset and liability management officer'' means the
chief individual responsible for coordinating the management of
assets and liabilities of the Bank.
(5) Chief compliance officer.--The term ``chief compliance
officer or CCO'' means the chief individual responsible for
overseeing and managing the compliance and regulatory affairs
issues of the Bank.
(6) Chief executive officer.--The term ``chief executive
officer or CEO'' means the individual serving as the executive
director of the bank.
(7) Chief financial officer.--The term ``chief financial
officer or CFO'' means the chief individual responsible for
managing the financial risks, planning, and reporting of the
Bank.
(8) Chief loan origination officer.--The term ``chief loan
origination officer'' means the chief individual responsible
for the processing of new loans provided by the Bank.
(9) Chief operations officer.--The term ``chief operations
officer or COO'' means the chief individual responsible for
information technology and the day to day operations of the
Bank.
(10) Chief risk officer.--The term ``chief risk officer or
CRO'' means the chief individual responsible for managing
operational and compliance-related risks of the Bank.
(11) Chief treasury officer.--The term ``chief treasury
officer'' means the chief individual responsible for managing
the Bank's treasury operations.
(12) Development.--The terms ``development'' and
``develop'' mean, with respect to an infrastructure project,
any--
(A) preconstruction planning, feasibility review,
permitting, design work, life-cycle maintenance
planning, and other preconstruction activities; and
(B) construction, reconstruction, rehabilitation,
replacement, or expansion.
(13) Direct loan.--The term ``direct loan'' has the same
meaning as in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a).
(14) Disadvantaged community.--The term ``disadvantaged
community'' means a community with a median household income of
less than 80 percent of the statewide median household income
for the State in which the community is located.
(15) Energy infrastructure project.--The term ``energy
infrastructure project'' means any project for energy
transmission and distribution, energy efficiency enhancement
for buildings, public housing, health facilities, schools, and
energy storage.
(16) Entity.--The term ``entity'' means an individual,
corporation, partnership (including a public-private
partnership), joint venture, trust, and a State or other
governmental entity, including a political subdivision or any
other instrumentality of a State or a revolving fund.
(17) Environmental infrastructure project.--The term
``environmental infrastructure project'' means any project for
the establishment, maintenance, or enhancement of any drinking
water and wastewater treatment facility, storm water management
system, flood gate, dam, levee, dredging, open space management
system, wetland restoration, infill development, solid waste
disposal facility, hazardous waste facility, or industrial site
cleanup or remediation projects.
(18) General counsel.--The term ``general counsel'' means
the individual who serves as the chief lawyer for the Bank.
(19) Greenhouse gases.--The term ``greenhouse gases'' means
any of the following:
(A) Carbon dioxide.
(B) Methane.
(C) Nitrous oxide.
(D) Sulfur hexafluoride.
(E) Hydrofluorocarbons
(F) Any perfluorocarbon.
(G) Nitrogen trifluoride.
(H) Any other anthropogenic gas designated as a
greenhouse gas by the Environmental Protection Agency
Administrator.
(20) Infrastructure project.--The term ``infrastructure
project'' means any energy, environmental, telecommunications,
or transportation infrastructure project.
(21) Loan guarantee.--The term ``loan guarantee'' has the
same meaning as in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(22) Public benefit bond.--The term ``Public Benefit Bond''
means any bond issued in accordance with this Act if--
(A) the proceeds from the sale of the bond are to
be used for expenditures incurred after the date of
issuance with respect to any infrastructure project or
other purpose, subject to such rules as the Bank may
provide;
(B) the bond is issued in registered form;
(C) the bond has such terms, and carries interest
in such an amount, as determined by the Bank; and
(D) payments of interest and principal with respect
to the bond is the obligation of the Bank and is backed
by the full faith and credit of the United States.
(23) Public-private partnership.--The term ``public-private
partnership'' means any entity--
(A)(i) which is undertaking the development of all
or part of an infrastructure project, which 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; and
(B) which owns, leases, or operates, or will own,
lease, or operate, the project in whole or in part, and
at least one of the participants in the entity is a
nongovernmental entity.
(24) Revolving fund.--The term ``revolving fund'' means a
fund or program established by a State or a political
subdivision or other instrumentality of a State, the principal
activity of which is to make loans, commitments, or other
financial accommodation available for the development of one or
more categories of infrastructure projects.
(25) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the designee of the Secretary.
(26) Smart grid.--The term ``smart grid'' means a system
that provides for any of the smart grid functions set forth in
section 1306(d) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17386(d)).
(27) 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.
(28) Telecommunications infrastructure project.--The term
``telecommunications infrastructure project'' means any project
involving infrastructure required to provide communications by
wire or radio.
(29) Transportation infrastructure project.--The term
``transportation infrastructure project'' means any project for
the construction, maintenance, or enhancement of highways,
roads, bridges, transit and intermodal systems, inland
waterways, commercial ports, airports, high speed rail and
freight rail systems.
SEC. 4. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE DEVELOPMENT BANK.
(a) Establishment of National Infrastructure Development Bank.--The
National Infrastructure Development Bank is established as a wholly
owned Government corporation subject to chapter 91 of title 31, United
States Code (commonly known as the ``Government Corporation Control
Act''), except as otherwise provided in this Act.
(b) Responsibility of the Secretary.--The Secretary shall take such
action as may be necessary to assist in implementing the establishment
of the bank in accordance with this Act.
(c) Conforming Amendment.--Section 9101(3) of title 31, United
States Code, is amended by inserting after subparagraph (N) the
following:
``(O) the National Infrastructure Development
Bank.''.
SEC. 5. BOARD OF DIRECTORS.
(a) In General.--The Bank shall have a Board of Directors
consisting of 7 members appointed by the President and with the advice
and consent of the Senate.
(b) Qualifications.--The directors of the Board shall include
individuals representing different regions of the United States and--
(1) 2 of the directors shall have public sector experience;
(2) 2 of the directors shall have private sector
experience; and
(3) 3 of the directors shall have finance experience.
(c) Chairperson and Vice Chairperson.--As designated at the time of
appointment, one of the directors of the Board shall be designated
chairperson of the Board by the President and one shall be designated
as vice chairperson of the Board by the President.
(d) Terms.--
(1) In general.--Except as provided in paragraph (2) and
subsection (f), each director shall be appointed for a term of
6 years.
(2) Initial staggered terms.--Of the initial members of the
Board--
(A) the chairperson and vice chairperson shall each
be appointed for terms of 6 years;
(B) 3 shall be appointed for a term of 4 years; and
(C) 2 shall be appointed for a term of 2 years.
(e) Congressional Recommendations.--Not later than 30 days after
the date of 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.
(f) Date of Initial Nominations.--The initial nominations by the
President for appointment of directors to the Board shall be made not
later than 60 days after the date of enactment of this Act.
(g) Vacancies.--
(1) In general.--A vacancy on the Board shall be filled in
the manner in which the original appointment was made.
(2) Appointment to replace during term.--Any director
appointed to fill a vacancy occurring before the expiration of
the term for which the director's predecessor was appointed
shall be appointed only for the remainder of the term.
(3) Duration.--A director may serve after the expiration of
that director's term until a successor has taken office.
(h) Quorum.--Four directors shall constitute a quorum.
(i) Reappointment.--A director of the Board appointed by the
President may be reappointed by the President in accordance with this
section.
(j) Per Diem Reimbursement.--Directors of the Board shall serve on
a part-time basis and shall receive a per diem when engaged in the
actual performance of Bank business, plus reasonable reimbursement for
travel, subsistence, and other necessary expenses incurred in the
performance of their duties.
(k) Limitations.--A director of the Board may not participate in
any review or decision affecting a project under consideration for
assistance under this Act if the director has or is affiliated with a
person who has an interest in such project.
(l) Responsibilities.--The Board shall--
(1) as soon as is practicable after the date on which the
last director is appointed, establish an Executive Committee,
Risk Management Committee and Audit Committee as prescribed by
this Act;
(2) not later than 180 days after the date on which the
last director is appointed develop and approve the bylaws of
the Bank, including bylaws for the regulation of the affairs
and conduct of the business of the Bank, consistent with the
purpose, goals, objectives, and policies set forth in this Act;
(3) ensure that the Bank is at all times operated in a
manner that is consistent with this Act, by--
(A) monitoring and assessing the effectiveness of
the Bank in achieving its strategic goals;
(B) periodically reviewing internal policies
submitted by the chief executive officer;
(C) reviewing and approving annual business plans,
annual budgets, and long-term strategies submitted by
the chief executive officer;
(D) reviewing and approving annual reports
submitted by the chief executive officer;
(E) reviewing risk management and audit practices
of the Bank; and
(F) reviewing and approving all changes to the
organization of the Bank; and
(4) establish such other criteria, requirements, or
procedures as the Board may consider to be appropriate in
carrying out this Act.
(m) Meetings.--
(1) Open to the public; notice.--All meetings of the Board
held to conduct the business of the Bank shall be open to the
public and shall be preceded by reasonable notice.
(2) Initial meeting.--The Board shall meet not later than
90 days after the date on which the last director is appointed
and otherwise at the call of the Chairperson.
(3) Exception for closed meetings.--Pursuant to such rules
as the Board may establish through their bylaws, the directors
may close a meeting of the Board if, at the meeting, there is
likely to be disclosed information which could adversely affect
or lead to speculation relating to an infrastructure project
under consideration for assistance under this Act or in
financial or securities or commodities markets or institutions,
utilities, or real estate. The determination to close any
meeting of the Board shall be made in a meeting of the Board,
open to the public, and preceded by reasonable notice. The
Board shall prepare minutes of any meeting which is closed to
the public and make such minutes available as soon as the
considerations necessitating closing such meeting no longer
apply.
SEC. 6. POWERS AND LIMITATIONS OF THE BOARD.
(a) Powers.--In order to carry out the purposes of the Bank as set
forth in this Act, the Board shall be responsible for monitoring and
overseeing infrastructure projects and have the following powers:
(1) To make senior and subordinated direct loans on such
terms as the Board may determine, in the Board's discretion, to
be appropriate to assist in the financing or refinancing of an
infrastructure project.
(2) To make loan guarantees on such terms as the Board may
determine, in the Board's discretion, to be appropriate to
assist in the financing or refinancing of an infrastructure
project.
(3) To issue Public Benefit Bonds, to provide financing to
infrastructure projects from amounts made available from the
issuance of such bonds.
(4) To pay an interest subsidy on American Infrastructure
Bonds to the issuer of such bonds.
(5) To make agreements and contracts with any entity in
furtherance of the business of the Bank.
(6) To monitor and oversee infrastructure projects
financed, in whole or in part, by the Bank.
(7) To sue and be sued in the Bank's corporate capacity in
any court of competent jurisdiction, except that no attachment,
injunction, or similar process, may be issued against the
property of the Bank or against the Bank with respect to such
property.
(8) To indemnify the directors and officers of the Bank for
liabilities arising out of the actions of the directors and
officers in such capacity, in accordance with, and subject to
the limitations contained in, this Act.
(9) To serve as the primary liaison between the Bank and
the Congress, the executive branch, and State and local
governments, and to represent the Bank's interests.
(10) To exercise all other lawful powers which are
necessary or appropriate to carry out, and are consistent with,
the purposes of the Bank.
(b) Limitations.--
(1) Issuance of public benefit bonds.--The Board may not
issue any Public Benefit Bond without the prior consent of the
Secretary.
(2) Employee protections.--Prior to providing any financial
assistance for an infrastructure project involving
reconstruction, rehabilitation, replacement or expansion that
may impact current employees on the project site, the interests
of employees affected by the financial assistance shall be
protected under arrangements the Secretary of Labor concludes
are fair and equitable in accordance with section 5333(b)(2) of
title 49.
(c) Actions Consistent With Self-Supporting Entity Status.--The
Board shall conduct its business in a manner consistent with the
requirements of this section.
(d) Coordination With State and Local Regulatory Authority.--The
provision of financial assistance by the Board pursuant to this Act
shall not be construed as--
(1) limiting the right of any State or political
subdivision or other instrumentality of a State to approve or
regulate rates of return on private equity invested in a
project; or
(2) otherwise superseding any State law or regulation
applicable to a project.
(e) Federal Personnel Requests.--The Board shall have the power to
request the detail, on a reimbursable basis, of personnel from other
Federal agencies with specific expertise not available from within the
Bank or elsewhere. The head of any Federal agency may detail, on a
reimbursable basis, any personnel of such agency requested by the Board
and shall not withhold unreasonably the detail of any personnel
requested by the Board.
SEC. 7. EXECUTIVE COMMITTEE.
(a) In General.--The Board shall establish an Executive Committee
consisting of 9 members, headed by the chief executive officer of the
Bank.
(b) CEO.--A majority of the Board shall have the authority to
appoint and reappoint the chief executive officer with such executive
functions, powers, and duties as may be prescribed by this Act, the
bylaws of the Bank, or the Board.
(c) CEO Responsibilities.--The CEO shall have responsibility for
the development and implementation of the strategy of Bank, including--
(1) the development and submission to the Board of the
annual business plans and budget;
(2) the development and submission to the Board of a long-
term strategic plan; and
(3) the development, revision, and submission to the Board
of Directors of internal policies.
(d) Other Executive Officers.--The Board shall appoint, remove, fix
the compensation, and define duties of 8 other executive officers to
serve on the Executive Committee as the--
(1) chief compliance officer;
(2) chief financial officer;
(3) chief asset and liability management officer;
(4) chief loan origination officer;
(5) chief operations officer;
(6) chief risk officer;
(7) chief treasury officer; and
(8) general counsel.
(e) Qualifications.--The CEO shall have experience and expertise in
finance and the other executive officers shall have demonstrated
experience and expertise in one or more of the following:
(1) Transportation infrastructure.
(2) Environmental infrastructure.
(3) Energy infrastructure.
(4) Telecommunications infrastructure.
(5) Economic development.
(6) Workforce development.
(7) Public health.
(8) Private or public finance.
(f) Duties.--In order to carry out the purposes of the Bank as set
forth in this Act, the Executive Committee shall--
(1) establish and submit to the Board disclosure and
application procedures for entities nominating projects for
assistance under this Act;
(2) establish and submit to the Board standardized terms
and conditions, fee schedules, or legal requirements of a
contract or program to carry out this Act;
(3) establish and submit to the Board guidelines for the
selection and approval of projects and specific criteria for
determining eligibility for project selection;
(4) accept, for consideration, project proposals relating
to the development of infrastructure projects, which meet the
basic criteria established by the Executive Committee, and
which are submitted by an entity;
(5) provide recommendations to the Board and place project
proposals accepted by the Executive Committee on a list for
consideration for financial assistance from the Board;
(6) recommend to the Board the percentage subsidy amount
for an approved application for an American Infrastructure
Bond, with such recommendation based on the strength of the
related infrastructure project's ability to meet the criteria
described under section 11 and the ability of such project to
attract private investment in an infrastructure project's early
development stages;
(7) provide technical assistance, including public-private
partnership infrastructure project value for money assessments,
long-term economic benefit projections, and contract
evaluations, to entities receiving financing from the Bank and
otherwise implement decisions of the Board; and
(8) provide technical assistance to State and local
governments who wish to have the Bank's approval to issue
American Infrastructure bonds.
(g) Vacancy.--A vacancy in the position of CEO and other executive
officers of the Executive Committee shall be filled in the manner in
which the original appointment was made.
(h) Compensation.--The compensation of the CEO and other executive
officers of the Executive Committee shall be determined by the Board.
(i) Removal.--The CEO and other executive officers of the Executive
Committee may be removed at the discretion of a majority of the Board.
(j) Term.--The CEO and other executive officers of the Executive
Committee shall serve a 6-year term and may be reappointed in
accordance with this section.
(k) Limitations.--The CEO and other executive officers of the
Executive Committee shall not--
(1) hold any other public office;
(2) have any interest in an infrastructure project
considered by the Board;
(3) have any interest in an investment institution,
commercial bank, or other entity seeking financial assistance
for any infrastructure project from or investing in the Bank;
and
(4) have any such interest during the 2-year period
beginning on the date such officer ceases to serve in such
capacity.
SEC. 8. RISK MANAGEMENT COMMITTEE.
(a) Establishment of Risk Management Committee.--The Board shall
establish a risk management committee consisting of 5 members, headed
by the chief risk officer.
(b) Appointments.--A majority of the Board shall have the authority
to appoint and reappoint the CRO of the Bank.
(c) Functions; Duties.--
(1) In general.--The CRO shall have such functions, powers,
and duties as may be prescribed by one or more of the
following: This Act, the bylaws of the Bank, and the Board. The
CRO shall report directly to the Board.
(2) Risk management duties.--In order to carry out the
purposes of this Act, the risk management committee shall--
(A) create financial, credit, and operational risk
management guidelines and policies to be adhered to by
the Bank;
(B) set guidelines to ensure diversification of
lending activities by both geographic region and
infrastructure project type;
(C) create conforming standards for all financial
assistance provided by the Bank;
(D) monitor financial, credit and operational
exposure of the Bank; and
(E) provide financial recommendations to the Board.
(d) Duty With Respect to American Infrastructure Bonds.--The risk
management committee shall ensure that the aggregate amount of interest
subsidies provided for American Infrastructure Bonds in a given
calendar year do not exceed an amount equal to 28 percent of interest
payable under all such bonds.
(e) Other Risk Management Officers.--The Board shall appoint,
remove, fix the compensation, and define the duties of 4 other risk
management officers to serve on the risk management committee.
(f) Qualifications.--The CRO and other risk management officers
shall have demonstrated experience and expertise in one or more of the
following:
(1) Treasury and asset and liability management.
(2) Investment regulations.
(3) Insurance.
(4) Credit risk management and credit evaluations.
(5) Related disciplines.
(g) Vacancy.--A vacancy in the position of CRO and other risk
management officers of the risk management committee shall be filled in
the manner in which the original appointment was made.
(h) Compensation.--The compensation of the CRO and other risk
management officers of the risk management committee shall be
determined by the Board.
(i) Removal.--The CRO and other risk management officers of the
risk management committee may be removed at the discretion of a
majority of the Board.
(j) Term.--The CRO and other risk management officers of the risk
management committee shall serve a 6-year term and may be reappointed
in accordance with this section.
(k) Limitations.--The CRO and other risk management officers of the
risk management committee shall not--
(1) hold any other public office;
(2) have any interest in an infrastructure project
considered by the Board;
(3) have any interest in an investment institution,
commercial bank, or other entity seeking financial assistance
for any infrastructure project from or investing in the Bank;
and
(4) have any such interest during the 2-year period
beginning on the date such officer ceases to serve in such
capacity.
SEC. 9. AUDIT COMMITTEE.
(a) In General.--The Bank shall establish an audit committee
consisting of 5 members, headed by the chief compliance officer of the
Bank.
(b) Appointments.--A majority of the Board shall have the authority
to appoint and reappoint the CCO of the Bank.
(c) Functions; Duties.--The CCO shall have such functions, powers,
and duties as may be prescribed by one or more of the following: This
Act, the bylaws of the Bank, and the Board. The CCO shall report
directly to the Board.
(d) Audit Duties.--In order to carry out the purposes of the Bank
under this Act, the audit committee shall--
(1) provide internal controls and internal auditing
activities for the Bank;
(2) maintain responsibility for the accounting activities
of the Bank;
(3) issue financial reports of the Bank; and
(4) complete reports with outside auditors and public
accountants appointed by the Board.
(e) Other Audit Officers.--The Board shall appoint, remove, fix the
compensation, and define the duties of 4 other audit officers to serve
on the audit committee.
(f) Qualifications.--The CCO and other audit officers shall have
demonstrated experience and expertise in one or more of the following:
(1) Internal auditing.
(2) Internal investigations.
(3) Accounting practices.
(4) Financing practices.
(g) Vacancy.--A vacancy in the position of CCO and other audit
officers of the audit committee shall be filled in the manner in which
the original appointment was made.
(h) Compensation.--The compensation of the CCO and other audit
officers of the audit committee shall be determined by the Board.
(i) Removal.--The CCO and other audit officers of the audit
committee may be removed at the discretion of a majority of the Board.
(j) Term.--The CCO and other audit officers of the audit committee
shall serve a 6-year term and may be reappointed in accordance with
this section.
(k) Limitations.--The CCO and other audit officers of the audit
committee shall not--
(1) hold any other public office;
(2) have any interest in an infrastructure project
considered by the Board;
(3) have any interest in an investment institution,
commercial bank, or other entity seeking financial assistance
for any infrastructure project from or investing in the Bank;
and
(4) have any such interest during the 2-year period
beginning on the date such officer ceases to serve in such
capacity.
SEC. 10. PERSONNEL.
The chairperson of the Board, chief executive officer, chief risk
officer, and chief compliance officer shall appoint, remove, fix the
compensation of, and define the duties of such qualified personnel to
serve under the Board, Executive Committee, risk management committee,
or audit committee, as the case may be, as necessary and prescribed by
one or more of the following: This Act, the bylaws of the Bank, and the
Board.
SEC. 11. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM BANK.
(a) In General.--Any entity proposing a project for which the use
or purpose is private and without public benefit shall not be eligible
for financial assistance from the Bank under this Act. No financial
assistance shall be available from the Bank unless the entity for such
assistance has demonstrated to the satisfaction of the Board that the
project for which such assistance is being sought meets the
requirements of this Act.
(b) Establishment of Project Criteria.--
(1) In general.--Consistent with the requirements of
subsections (c) and (d), the Board shall approve--
(A) criteria for determining eligibility for
financial assistance established by the Executive
Committee under this Act;
(B) revisions to criteria for determining
eligibility for financial assistance established by the
Executive Committee under this Act;
(C) the weight given to factors to be taken into
account established by the Executive Committee;
(D) disclosure and application procedures to be
followed by entities to nominate projects for
assistance established by the Executive Committee under
this Act; and
(E) such other criteria as the Board may consider
to be appropriate for the purposes of carrying out this
Act.
(2) Factors to be taken into account.--
(A) In general.--The Executive Committee shall
conduct an analysis that takes into account the
economic, environmental, and social benefits, and costs
of each project under consideration for financial
assistance under this Act, prioritizing projects that
contribute to economic growth, lead to job creation,
and are of regional or national significance.
(B) Criteria.--The criteria established pursuant to
paragraph (1)(A) shall provide for the consideration of
the following factors in considering eligibility for
financial assistance under this Act:
(i) The means by which development of the
infrastructure project under consideration is
being financed, including--
(I) the terms and conditions and
financial structure of the proposed
financing;
(II) the credit worthiness and
standing of the project sponsors,
providers of equity, and cofinanciers;
(III) the financial assumptions and
projections on which the project is
based; and
(IV) the extent to which the
infrastructure project maximizes
investment from other sources.
(ii) The likelihood that the provision of
assistance by the Bank will cause such
development to proceed more promptly and with
lower costs for financing than would be the
case without such assistance.
(iii) The extent to which the provision of
assistance by the Bank maximizes the level of
private investment in the infrastructure
project while providing a public benefit.
(C) Dedicated revenue sources.--Any financial
assistance for an infrastructure project shall be
repayable, in whole or in part, from dedicated revenue
sources that also secure the infrastructure project
obligations.
(D) Amount of financial assistance.--The amount of
financial assistance under this Act shall not exceed
the lesser of 50 percent of the reasonably anticipated
eligible infrastructure project costs.
(c) Public Input.--In developing proposed infrastructure project
criteria and conducting reviews of infrastructure project criteria for
the Board, the Executive Committee shall seek input from the public
including views related to--
(1) the weight given to different factors to be taken into
account;
(2) measuring whether projects are meeting approved
criteria; and
(3) any other input considered by the Executive Committee
and the public for the purposes of carrying out this Act.
(d) Factors for Specific Types of Projects.--
(1) Transportation infrastructure projects.--For any
transportation infrastructure project, the Board shall consider
the following:
(A) Job creation, including workforce development
for women and minorities, responsible employment
practices, and targeted job training and employment
opportunities for low income workers.
(B) Reduction in greenhouse gases.
(C) Reduction in surface and air traffic
congestion.
(D) Use of smart tolling, such as vehicle miles
traveled and congestion pricing, for highway, road, and
bridge projects.
(E) Increased access to transportation options.
(F) Increased safety of transportation systems for
motorized and non-motorized users.
(G) Public health benefits, including the removal
of lead coatings or other hazardous chemicals and
materials.
(H) Reduction in risk of structural failure over
the service life of the project.
(2) Environmental infrastructure project.--For any
environmental infrastructure project, the Board shall consider
the following:
(A) Job creation, including workforce development
for women and minorities, responsible employment
practices, and targeted job training and employment
opportunities for low income workers.
(B) Public health benefits, including the removal
of lead coatings or other hazardous materials.
(C) Pollution reductions.
(D) Reductions in greenhouse gas.
(E) Increased coastal and inland flood mitigation
and protection.
(F) Reduction in risk of structural failure over
the service life of the project.
(3) Energy infrastructure project.--For any energy
infrastructure project, the Board shall consider the following:
(A) Job creation, including workforce development
for women and minorities, responsible employment
practices, and targeted job training and employment
opportunities for low income workers.
(B) Reduction in greenhouse gas.
(C) Expanded use of renewable energy.
(D) Development of a smart grid.
(E) Energy efficient building, housing, and school
modernization, including renewable energy designated
retrofits.
(F) In any case in which the project is also a
public housing project--
(i) improvement of the physical shape and
layout;
(ii) environmental improvement; and
(iii) mobility improvements for residents.
(G) Public health benefits including the removal of
lead coatings or other hazardous chemicals and
materials.
(H) Reduction in risk of structural failure over
the service life of the project.
(4) Telecommunications.--For any telecommunications
project, the Board shall consider the following:
(A) Job creation, including workforce development
for women and minorities, responsible employment
practices, and targeted job training and employment
opportunities for low income workers.
(B) The extent to which assistance expands or
improves broadband and wireless services in rural and
disadvantaged communities.
(e) Consideration of Project Proposals.--
(1) Participation by other agency personnel.--Consideration
of a project under this section by the Executive Committee and
the Board shall be conducted with personnel on detail to the
Bank from relevant Federal agencies among individuals who are
familiar with and experienced in the selection criteria for
competitive infrastructure projects.
(2) Fees.--A fee may be charged for the review of any
project proposal in such amount as may be considered
appropriate by the Executive Committee approved by the Board to
cover the cost of such review.
(f) Discretion of Board.--Consistent with other provisions of this
Act, any determination of the Board to provide assistance to any
infrastructure project, and the manner in which such assistance is
provided, including the terms, conditions, fees, and charges shall be
at the sole discretion of the Board.
(g) State and Local Permits Required.--The provision of assistance
by the Board in accordance with this Act shall not be deemed to relieve
any recipient of assistance or the related infrastructure project of
any obligation to obtain required State and local permits and
approvals.
(h) Annual Report.--An entity receiving assistance from the Board
shall make annual reports to the Board on the use of any such
assistance, compliance with the criteria set forth in this section, and
a disclosure of all entities with a development, ownership, or
operational interest in a infrastructure project assisted or proposed
to be assisted under this Act.
SEC. 12. EXEMPTION FROM LOCAL TAXATION.
All bonds issued by the Bank, and the interest on or credits with
respect to such bonds, shall not be subject to taxation by any State,
county, municipality, or local taxing authority.
SEC. 13. STATUS AND APPLICABILITY OF CERTAIN FEDERAL LAWS.
(a) Compliance With Davis-Bacon Act.--All laborers and mechanics
employed by contractors and subcontractors on infrastructure projects
funded directly by or assisted in whole or in part by and through the
Bank 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 part A of title 40, United States Code. 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.
(b) No Priority as a Federal Claim.--The priority established in
favor of the United States by section 3713 of title 31, United States
Code, shall not apply with respect to any indebtedness of the Bank.
(c) Employee Protective Arrangements.--Recipients of any financial
assistance authorized under this Act that funds public transportation
capital projects, as defined in section 5302 of title 49, United States
Code, must comply with the grant requirements described under section
5309 of such title.
SEC. 14. COMPLIANCE WITH CERTAIN DOMESTIC CONTENT STATUTES.
The financing provided for an infrastructure project shall be in
accordance with the following statutory provisions of the United States
Code under the jurisdiction of the Department of Transportation:
section 24305 of title 49, United States Code (AMTRAK), section 313 of
title 23, United States Code (FHWA), section 5323(j) of title 49,
United States Code (FTA), section 24405 of title 49, United States Code
(Intercity Rail Passenger Corporation) and sections 50101 and 50105 of
title 49, United States Code (FAA).
SEC. 15. USE OF IRON, STEEL, AND MANUFACTURED GOODS IN INFRASTRUCTURE
PROJECTS.
(a) Buy America.--None of the financing provided for by the Bank
may be used for a public infrastructure project unless all of the iron,
steel, and manufactured goods used for the construction, alteration,
maintenance or repair of 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 Secretary of the Treasury finds 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 infrastructure project by more than 25 percent.
(c) Publication of Waivers.--If the Secretary of the Treasury
determines that it is necessary to waive the application of subsection
(a) based on a finding under subsection (b), the Treasury Secretary
shall publish in the Federal Register a detailed written justification
as to why the provision is being waived.
(d) Application of Section.--This section shall be applied in a
manner consistent with the United States obligations under
international agreements.
(e) Consultations.--The Secretary of the Treasury shall consult
with the Board and may consult with the Secretary of Transportation and
other Federal Secretaries and Administrators when applying this
section.
SEC. 16. AUDITS; REPORTS TO PRESIDENT AND CONGRESS.
(a) Accounting.--The books of account of the Bank shall be
maintained in accordance with generally accepted accounting principles
and shall be subject to an annual audit by independent public
accountants appointed by the Board and of nationally recognized
standing.
(b) Reports.--
(1) Board.--The Board shall submit to the President and
Congress, within 90 days after the last day of each fiscal
year, a complete and detailed report with respect to the
preceding fiscal year, setting forth--
(A) a summary of the Bank's operations, for such
preceding fiscal year;
(B) a schedule of the Bank's obligations
outstanding at the end of such preceding fiscal year,
with a statement of the amounts issued and redeemed or
paid during such preceding fiscal year; and
(C) the status of infrastructure projects receiving
funding or other assistance pursuant to this Act,
including disclosure of all entities with a
development, ownership, or operational interest in such
projects.
(2) GAO.--Not later than 5 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report evaluating activities
of the Bank 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 project accomplished the goals prioritized by
the Bank's project criteria.
(c) Books and Records.--
(1) In general.--The Bank shall maintain adequate books and
records to support the financial transactions of the Bank with
a description of financial transactions and infrastructure
projects receiving funding, and the amount of funding for each
project maintained on a publically accessible database.
(2) Public comment period.--The Bank shall post
infrastructure financing agreements on the database providing
30 days for public comments before providing final financing
for the infrastructure project.
(3) Audits by the secretary and gao.--The books and records
of the Bank shall be maintained in accordance with recommended
accounting practices and shall be open to inspection by the
Secretary and the Comptroller General of the United States.
SEC. 17. AMERICAN INFRASTRUCTURE BOND.
(a) In General.--In the case of an American Infrastructure Bond,
the Bank shall pay (contemporaneously with each interest payment date
under such bond) to the issuer of such bond (or to any person who makes
such interest payments on behalf of the issuer) the applicable
percentage of the interest payable under such bond on such date.
(b) American Infrastructure Bond.--
(1) In general.--For purposes of this section, the term
``American Infrastructure Bond'' means any obligation (other
than a private activity bond) if--
(A) the interest on such obligation would (but for
this section) be excludable from gross income under
section 103 of the Internal Revenue Code of 1986;
(B) such obligation would have been a qualified
bond under section 54AA of such Code (determined
without regard to subparagraphs (B) and (C) of
subsection (d)(1) and subsection (g)(2)(B) thereof);
(C) such obligation is approved under the American
Infrastructure Bond program; and
(D) the issuer makes an irrevocable election to
have this section apply.
(2) Applicable rules.--For purposes of applying paragraph
(1)--
(A) for purposes of section 149(b) of such Code, an
American Infrastructure Bond shall not be treated as
federally guaranteed by reason of the subsidy provided
under subsection (a);
(B) for purposes of section 148 of such Code, the
yield on an American Infrastructure Bond shall be
determined without regard to the subsidy provided under
subsection (a); and
(C) a bond shall not be treated as an American
Infrastructure Bond if the issue price has more than a
de minimis amount (determined under rules similar to
the rules of section 1273(a)(3) of such Code) of
premium over the stated principal amount of the bond.
(c) Interest on Bonds Included in Gross Income.--For purposes of
the Internal Revenue Code of 1986, interest on any American
Infrastructure Bond shall be includible in gross income.
(d) Definitions.--For purposes of this section--
(1) Interest payment date.--The term ``interest payment
date'' means any date on which the holder of record of the
American Infrastructure Bond is entitled to a payment of
interest under such bond.
(2) Applicable percentage.--The applicable percentage with
respect to the interest subsidy provided for any bond under the
American Infrastructure Bond program shall be a percentage
recommended by the Executive Committee, reviewed by the risk
management committee, and approved by the Board.
(e) American Infrastructure Bond Program.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Board, in consultation with the
Executive Committee, risk management committee, and the
Secretary of the Treasury, shall establish an American
Infrastructure Bond program, under which the Board may--
(A) approve bond issuances for purposes of this
section, and
(B) assign an applicable percentage with respect to
any bond so approved.
(2) Application.--Issuers may apply for the approval of a
bond issuance for purposes of this section, and any such
application shall contain such information as the Executive
Committee and the risk management committee may require in
order to accept or reject an application and to assign an
applicable percentage to such bond.
(3) Criteria.--Approval of an application and the
applicable percentage subsidy assigned under the program shall
be based on the ability of each project to meet the criteria
established under section 8(d).
(4) Limitations.--
(A) Per bond subsidy.--The applicable percentage
with respect to any bond may not exceed 40 percent.
(B) Aggregate subsidy limitation.--For any calendar
year, the aggregate amount of interest subsidies
provided under this section with respect to all
American Infrastructure Bonds shall not exceed an
amount equal to 28 percent of interest payable under
all such bonds.
SEC. 18. NATIONAL INFRASTRUCTURE DEVELOPMENT BANK TRUST FUND.
(a) In General.--There is established in the Treasury of the United
States a trust fund to be known as the ``National Infrastructure
Development Bank Trust Fund'' consisting of such amounts as may be
appropriated to such trust fund as provided in this section.
(b) Transfer to Trust Fund.--There are hereby appropriated to the
National Infrastructure Development Bank Trust Fund such amount as the
Secretary of the Treasury estimates is equivalent to the tax receipts
attributable to interest payable under American Infrastructure Bonds.
(c) Expenditures From Trust Fund.--Amounts in the National
Infrastructure Development Bank Trust Fund shall be available, as
provided in appropriation Acts, only for purposes of the Secretary
making transfers to the National Infrastructure Development Bank for
infrastructure project assistance provided by the Bank under this Act.
SEC. 19. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $5,000,000,000 for each of
fiscal years 2014, 2015, 2016, 2017, and 2018 to capitalize the Bank
and to remain available until expended, of which not more than
$25,000,000 for each of fiscal years 2014 and 2015, and not more than
$50,000,000 for each fiscal year thereafter, may be used for
administrative costs of the Bank.
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