[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1250 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1250

To provide $50,000,000,000 in new transportation infrastructure funding 
  through bonding to empower States and local governments to complete 
significant infrastructure projects across all modes of transportation, 
 including roads, bridges, rail and transit systems, ports, and inland 
                   waterways, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2013

 Mr. Wyden (for himself and Mr. Hoeven) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide $50,000,000,000 in new transportation infrastructure funding 
  through bonding to empower States and local governments to complete 
significant infrastructure projects across all modes of transportation, 
 including roads, bridges, rail and transit systems, ports, and inland 
                   waterways, 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 ``Transportation and Regional 
Infrastructure Project Bonds Act of 2013'' or ``TRIP Bonds Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Our Nation's highways, transit systems, railroads, 
        ports, and inland waterways drive our economy, enabling all 
        industries to achieve growth and productivity that makes 
        America strong and prosperous.
            (2) The establishment, maintenance, and improvement of the 
        national transportation network is a national priority, for 
        economic, environmental, energy, security, and other reasons.
            (3) The ability to move people and goods is critical to 
        maintaining State, metropolitan, rural, and local economies.
            (4) The construction of infrastructure requires combining 
        skills from numerous occupations, including those in the 
        contracting, engineering, planning and design, materials 
        supply, manufacturing, distribution, and safety industries.
            (5) Investing in transportation infrastructure creates 
        long-term capital assets for the Nation that will help the 
        United States address its enormous infrastructure needs and 
        improve its economic productivity.
            (6) Investment in transportation infrastructure creates 
        jobs and spurs economic activity to put people back to work and 
        stimulate the economy.
            (7) Every billion dollars in transportation investment has 
        the potential to create up to 30,000 jobs.
            (8) Every dollar invested in the Nation's transportation 
        infrastructure yields at least $5.70 in economic benefits 
        because of reduced delays, improved safety, and reduced vehicle 
        operating costs.
            (9) Numerous experts have noted that the estimated cost to 
        maintain and improve our Nation's highways, bridges, and other 
        critical transportation infrastructure significantly exceeds 
        what is currently being provided by all levels of government.
    (b) Purpose.--The purpose of this Act is to provide financing for 
additional transportation infrastructure capital investments.

SEC. 3. CREDIT TO HOLDERS OF TRIP BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 54G. TRIP BONDS.

    ``(a) TRIP Bond.--For purposes of this subpart, the term `TRIP 
bond' means any bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for expenditures incurred after the date 
        of the enactment of this section for 1 or more qualified 
        projects pursuant to an allocation of such proceeds to such 
        project or projects by a State infrastructure bank,
            ``(2) the bond is issued by or for the benefit of a State 
        infrastructure bank and is in registered form (within the 
        meaning of section 149(a)),
            ``(3) the State infrastructure bank designates such bond 
        for purposes of this section,
            ``(4) the term of each bond which is part of such issue 
        does not exceed 30 years,
            ``(5) the issue meets the requirements of subsection (e),
            ``(6) the State infrastructure bank certifies that the 
        State meets the State contribution requirement of subsection 
        (h), as in effect on the date of issuance, and
            ``(7) the State infrastructure bank certifies the State 
        meets the requirement described in subsection (i).
    ``(b) Qualified Project.--For purposes of this section--
            ``(1) In general.--The term `qualified project' means a 
        capital transportation infrastructure project of any 
        governmental unit or other person, including roads, bridges, 
        rail and transit systems, ports, and inland waterways proposed 
        and approved by a State infrastructure bank, but does not 
        include costs of operations or maintenance with respect to such 
        project.
            ``(2) Certain projects.--Such term also includes any flood 
        damage risk reduction project with a completed Report of the 
        Chief of Engineers, with the proceeds of issued bonds available 
        for a State to provide to the United States Army Corps of 
        Engineers (under section 5 of the Act entitled `An Act 
        authorizing the construction of certain public works on rivers 
        and harbors for flood control, and for other purposes,' 
        approved June 22, 1936 (33 U.S.C. 701h)) funds in excess of any 
        required non-Federal cost share for such project.
    ``(c) Applicable Credit Rate.--In lieu of section 54A(b)(3), for 
purposes of section 54A(b)(2), the applicable credit rate with respect 
to an issue under this section is the rate equal to an average market 
yield (as of the day before the date of sale of the issue) on 
outstanding comparable-term corporate debt obligations (determined in 
such manner as the Secretary prescribes).
    ``(d) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any State 
        infrastructure bank shall not exceed the TRIP bond limitation 
        amount allocated to such bank under paragraph (3).
            ``(2) National limitation amount.--There is a TRIP bond 
        limitation amount for each calendar year. Such limitation 
        amount is--
                    ``(A) $5,000,000,000 for 2014,
                    ``(B) $5,000,000,000 for 2015,
                    ``(C) $10,000,000,000 for 2016,
                    ``(D) $10,000,000,000 for 2017,
                    ``(E) $10,000,000,000 for 2018,
                    ``(F) $10,000,000,000 for 2019, and
                    ``(G) except as provided in paragraph (4), zero 
                thereafter.
            ``(3) Allocations to states.--
                    ``(A) In general.--The TRIP bond limitation amount 
                for each calendar year shall be allocated by the 
                Secretary among the States such that each State is 
                allocated 2 percent of such amount.
                    ``(B) Return of unused allocations.--Any allocation 
                to a State under subparagraph (A) which remains unused 
                on the last day of the calendar year for which the 
                allocation was made shall be relinquished by the State 
                and reallocated by the Secretary proportionally among 
                participating States.
            ``(4) Carryover of unused issuance limitation.--If for any 
        calendar year the TRIP bond limitation amount under paragraph 
        (2) exceeds the amount of TRIP bonds issued during such year, 
        such excess shall be carried forward to 1 or more succeeding 
        calendar years as an addition to the TRIP bond limitation 
        amount under paragraph (2) for such succeeding calendar year 
        and until used by issuance of TRIP bonds.
    ``(e) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if, as of the date of issuance, 
        the State infrastructure bank reasonably expects--
                    ``(A) at least 100 percent of the available project 
                proceeds of such issue are to be spent for 1 or more 
                qualified projects within the 5-year expenditure period 
                beginning on such date,
                    ``(B) within the 12-month period beginning on such 
                date, to incur a binding commitment with a third party 
                for such third party--
                            ``(i) to spend at least 10 percent of the 
                        proceeds of such issue within the 12-month 
                        period following the date of entering into such 
                        commitment, or
                            ``(ii) to commence construction within the 
                        12-month period following the date of entering 
                        into such commitment with respect to any 
                        qualified project or combination of qualified 
                        projects the costs of which account for at 
                        least 10 percent of the proceeds of such issue, 
                        and
                    ``(C) to proceed with due diligence to complete 
                such projects and to spend the proceeds of such issue.
            ``(2) Rules regarding continuing compliance after 5-year 
        determination.--To the extent that less than 100 percent of the 
        available project proceeds of such issue are expended by the 
        close of the 5-year expenditure period beginning on the date of 
        issuance, the State infrastructure bank shall redeem all of the 
        nonqualified bonds within 90 days after the end of such period. 
        For purposes of this paragraph, the amount of the nonqualified 
        bonds required to be redeemed shall be determined in the same 
        manner as under section 142.
    ``(f) Recapture of Portion of Credit Where Cessation of 
Compliance.--If any bond which when issued purported to be a TRIP bond 
ceases to be such a bond, the State infrastructure bank shall pay to 
the United States (at the time required by the Secretary) an amount 
equal to the sum of--
            ``(1) the aggregate of the credits allowable under section 
        54A with respect to such bond (determined without regard to 
        section 54A(c)) for taxable years ending during the calendar 
        year in which such cessation occurs and each succeeding 
        calendar year ending with the calendar year in which such bond 
        is redeemed by the bank, and
            ``(2) interest at the underpayment rate under section 6621 
        on the amount determined under paragraph (1) for each calendar 
        year for the period beginning on the first day of such calendar 
        year.
    ``(g) TRIP Bonds Trust Accounts.--
            ``(1) In general.--The following amounts shall be held in a 
        TRIP Bonds Trust Account (including 1 or more subaccounts) by 
        each State infrastructure bank:
                    ``(A) The proceeds from the sale of all bonds 
                issued by or for the benefit of such bank under this 
                section.
                    ``(B) The amounts described in subsection (h).
                    ``(C) Any earnings on any amounts described in 
                subparagraph (A) or (B).
            ``(2) Use of funds.--Amounts in each TRIP Bonds Trust 
        Account may be used only to pay costs of qualified projects, 
        pay interest (if any) on TRIP bonds, and redeem TRIP bonds, 
        except that amounts withdrawn from the TRIP Bonds Trust Account 
        to pay costs of qualified projects may not exceed the proceeds 
        from the sale of TRIP bonds described in subsection (a)(1).
            ``(3) Use of remaining funds in trip bonds trust account.--
        Upon the redemption of all TRIP bonds issued by the State 
        infrastructure bank under this section, any remaining amounts 
        in the TRIP Bonds Trust Account held by such bank shall be 
        available to pay the costs of any qualified project in such 
        State.
            ``(4) Applicability of federal law.--The requirements of 
        any Federal law, including titles 23, 40, and 49 of the United 
        States Code, which would otherwise apply to projects to which 
        the United States is a party or to funds made available under 
        such law and projects assisted with those funds shall apply 
        to--
                    ``(A) funds made available under each TRIP Bonds 
                Trust Account for similar qualified projects, other 
                than contributions required under subsection (h), and
                    ``(B) similar qualified projects assisted through 
                the use of such funds.
            ``(5) Investment.--Subject to subsections (e) and (f), it 
        shall be the duty of the State infrastructure bank to invest in 
        investment grade obligations such portion of the TRIP Bonds 
        Trust Account held by such Bank as is not, in the judgment of 
        such bank, required to meet current withdrawals. To the extent 
        cost-effective, investments should be made in securities that 
        support infrastructure investment at the State and local level.
    ``(h) State Contribution Requirements.--
            ``(1) In general.--For purposes of subsection (a)(6), the 
        State contribution requirement of this subsection is met if the 
        State infrastructure bank has obtained a commitment, not later 
        than the date of issuance of the bond, for deposit into the 
        TRIP Bonds Trust Account equal annual installments sufficient, 
        together with earnings thereon, to repay the principal of the 
        TRIP bond at maturity.
            ``(2) State contributions may not include federal funds.--
        For purposes of this subsection, State contributions shall not 
        be derived, directly or indirectly, from Federal funds, 
        including any transfers from the Highway Trust Fund under 
        section 9503.
            ``(3) Requirements in lieu of any other matching 
        contribution requirements.--For purposes of subsection (g)(4), 
        the TRIP bond proceeds may be applied toward any State matching 
        contribution requirement under any other Federal law.
    ``(i) Utilization of Updated Construction Technology for Qualified 
Projects.--For purposes of subsection (a)(7), the requirement of this 
subsection is met if the appropriate State agency relating to the 
qualified project is utilizing updated construction technologies.
    ``(j) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) State infrastructure bank.--
                    ``(A) In general.--The term `State infrastructure 
                bank' means a State infrastructure bank established 
                under section 610 of title 23, United States Code, and 
                includes a joint venture among 2 or more State 
                infrastructure banks. Such term also includes, with 
                respect to any State that has not established a State 
                infrastructure bank prior to the date of the enactment 
                of this section, the State Department of Transportation 
                of such State, or such other public instrumentality 
                designated by the State to issue bonds under this 
                section.
                    ``(B) Special authority.--Notwithstanding any other 
                provision of law, a State infrastructure bank shall be 
                authorized to perform any of the functions necessary to 
                carry out the purposes of this section, including the 
                making of direct grants to qualified projects from 
                available project proceeds of TRIP bonds issued by such 
                bank.
            ``(2) Prohibition on use of highway trust fund.--
        Notwithstanding any other provision of law, no funds derived 
        from the Highway Trust Fund established under section 9503 
        shall be used to pay for credits under this section.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (D),
                    (B) by inserting ``or'' at the end of subparagraph 
                (E),
                    (C) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) a TRIP bond,'', and
                    (D) by inserting ``(paragraphs (3), (4), and (6), 
                in the case of a TRIP bond)'' after ``and (6)''.
            (2) Subparagraph (C) of section 54A(d)(2) of such Code is 
        amended by striking ``and'' at the end of clause (iv), by 
        striking the period at the end of clause (v) and inserting ``, 
        and'', and by adding at the end the following new clause:
                            ``(vi) in the case of a TRIP bond, a 
                        purpose specified in section 54G(a)(1).''.
    (c) Clerical Amendment.--The table of sections for subpart I of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 54G. TRIP bonds.''.
    (d) Effective Date.--The amendments made by this Act shall apply to 
bonds issued after December 31, 2013.
                                 <all>