[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 387 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 387

  To establish the American Infrastructure Investment Fund and other 
 activities to facilitate investments in infrastructure projects that 
significantly enhance the economic competitiveness of the United States 
 by improving economic output, productivity, or competitive commercial 
                   advantage, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 2013

    Mr. Rockefeller (for himself and Mr. Lautenberg) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To establish the American Infrastructure Investment Fund and other 
 activities to facilitate investments in infrastructure projects that 
significantly enhance the economic competitiveness of the United States 
 by improving economic output, productivity, or competitive commercial 
                   advantage, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American 
Infrastructure Investment Fund Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. American infrastructure investment fund.
Sec. 3. National infrastructure investment grants.

SEC. 2. AMERICAN INFRASTRUCTURE INVESTMENT FUND.

    (a) Establishment of Fund.--Chapter 3 of title 49, United States 
Code, is amended--
            (1) in the table of sections, by adding at the end the 
        following:

        ``subchapter iv--american infrastructure investment fund

``361. Definitions.
``362. Establishment of Fund.
``363. Organizational structure and duties.
``364. Fund authorities and assistance.
``365. Studies and reports.'';
        and
            (2) by adding at the end the following:

        ``SUBCHAPTER IV--AMERICAN INFRASTRUCTURE INVESTMENT FUND

``Sec. 361. Definitions
    ``In this subchapter:
            ``(1) Board.--The term `Board' means the Board of Directors 
        of the Fund appointed pursuant to section 363(b).
            ``(2) Direct loan.--The term `direct loan' has the meaning 
        given the term under section 502(1) of the Congressional Budget 
        Act of 1974 (2 U.S.C. 661a(1)).
            ``(3) Economic competitiveness.--The term `economic 
        competitiveness' means the ability of the economy to more 
        efficiently produce goods and deliver services, including--
                    ``(A) reductions in travel time of goods and 
                people, including reductions in average delay or the 
                uncertainty of travel time; and
                    ``(B) net benefits to society through economic 
                benefits attributable to improving the spatial 
                clustering of economic activity.
            ``(4) Eligible project.--The term `eligible project' means 
        a capital project that--
                    ``(A) advances the objectives of this subchapter;
                    ``(B) is comprised of activities included in a 
                regional, State, or national plan, either at the time 
                of submission of the application or before the 
                obligation of funds from the Fund;
                    ``(C) has eligible project costs related to a 
                single project, or has aggregate eligible project costs 
                related to a program of projects that are coordinated 
                to achieve a unified improvement; and
                    ``(D) is a transportation-related project.
            ``(5) Eligible funding recipient.--The term `eligible 
        funding recipient'--
                    ``(A) means an entity that has received a financing 
                award from the Fund;
                    ``(B) shall be--
                            ``(i) a non-Federal governmental entity, 
                        agency, or instrumentality; or
                            ``(ii) a nongovernmental entity, such as a 
                        corporation, partnership, joint venture, or 
                        other instrumentality, that seeks funding for 
                        an eligible project; and
                    ``(C) shall have a non-Federal governmental 
                cosponsor of the project if it is a non-governmental 
                entity.
            ``(6) Eligible project cost.--The term `eligible project 
        cost'--
                    ``(A) includes costs associated with development 
                phase planning and design activities, construction, 
                acquisition, rehabilitation, environmental remediation, 
                interest expense during construction or reconstruction, 
                and reasonable required reserves; and
                    ``(B) excludes operating costs, research and 
                development costs, and any other costs not otherwise 
                specifically provided for in subparagraph (A).
            ``(7) Executive director.--The term `Executive Director' 
        means the Executive Director of the Fund appointed pursuant to 
        section 363(a)(1).
            ``(8) Fund.--The term `Fund' means the American 
        Infrastructure Investment Fund of the Department of 
        Transportation established under section 362.
            ``(9) Investment plan.--The term `investment plan' means a 
        written mutual agreement between the Fund and an applicant that 
        outlines the prospective terms of financial assistance to be 
        invested by the Fund.
            ``(10) Line of credit.--The term `line of credit' means an 
        agreement entered into between the Fund and an eligible funding 
        recipient to provide a direct loan at a future date upon the 
        occurrence of certain events.
            ``(11) Loan guarantee.--The term `loan guarantee' has the 
        meaning given the term under section 502(3) of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a(3)).
            ``(12) Operating guidance.--The term `Operating Guidance' 
        means the detailed description of the Fund's operating policies 
        and procedures that has been published in accordance with this 
        subchapter.
            ``(13) Qualified application.--The term `Qualified 
        Application' means an application that the Executive Director 
        has certified to have met eligibility and qualification 
        standards under this subchapter.
            ``(14) Rural.--The term `rural' means all population and 
        territory that are not within an Urbanized Area (as such term 
        is defined in the most recent decennial United States census).
            ``(15) Secretary.--Except as otherwise specified, the term 
        `Secretary' means the Secretary of Transportation.
            ``(16) Transportation-related project.--The term 
        `transportation-related project' means a project that is part 
        of, or related to, a transportation improvement, including 
        projects related to the construction or improvement of--
                    ``(A) a passenger or freight rail line;
                    ``(B) a highway;
                    ``(C) a bridge;
                    ``(D) an airport;
                    ``(E) an air traffic control system;
                    ``(F) a port or marine facility;
                    ``(G) an inland waterway;
                    ``(H) a transmission or distribution pipeline;
                    ``(I) public transportation facilities or systems;
                    ``(J) intercity passenger bus or passenger rail 
                facilities or equipment; or
                    ``(K) freight rail facilities or equipment.
``Sec. 362. Establishment of Fund
    ``(a) Establishment.--There is established in the Department of 
Transportation an entity to be known as the `American Infrastructure 
Investment Fund'.
    ``(b) Objectives.--The primary objective of the Fund shall be--
            ``(1) to invest in infrastructure projects that provide 
        measurable improvements to the economic competitiveness of all 
        or part of the United States by increasing or otherwise 
        improving economic output, productivity, or competitive 
        commercial advantage;
            ``(2) to provide funding for projects that face significant 
        funding barriers due to problems associated with the need to 
        combine resources across multiple jurisdictions or modes of 
        transportation;
            ``(3) to improve the efficiency or throughput of a national 
        or regional transportation network by--
                    ``(A) improving the integration between networks; 
                or
                    ``(B) improving the condition, performance, or 
                long-term cost structure of existing infrastructure;
            ``(4) to improve the safety of transportation facilities 
        and systems, as measured by the reduction in risk of 
        transportation-related crashes, injuries, or deaths; and
            ``(5) to improve the environmental sustainability of a 
        national or regional transportation network, as measured by--
                    ``(A) improvement in energy efficiency;
                    ``(B) reduction in greenhouse gas and other harmful 
                emissions;
                    ``(C) conservation of natural resources;
                    ``(D) improvement in water quality;
                    ``(E) improvement in infrastructure resilience to 
                environmental hazards and natural disasters; and
                    ``(F) other beneficial environmental impacts.
    ``(c) Strategy.--
            ``(1) In general.--The Fund shall advance the objectives 
        set forth in subsection (b) by providing financial assistance 
        for individual projects or programs of related projects 
        identified in State, regional, or national plans and designed 
        to significantly improve national or regional economic 
        competitiveness.
            ``(2) Project portfolio.--The Fund shall--
                    ``(A) target projects or programs of related 
                projects with a demonstrated difficulty in obtaining 
                complete financing through other available public or 
                private sources of funds, for reasons including project 
                complexity, modes, or other comparable transactional 
                barriers;
                    ``(B) seek to identify appropriate Investment Plans 
                for selected projects and programs of projects; and
                    ``(C) use Fund resources to build a portfolio of 
                transformational investments that--
                            ``(i) promotes greater efficiency in the 
                        movement of freight or the provision of 
                        services;
                            ``(ii) promotes greater efficiency in the 
                        movement of people;
                            ``(iii) integrates multiple transportation 
                        modes in the movement of passengers or freight;
                            ``(iv) promotes the use of innovation and 
                        best practices in the planning, design, 
                        development, and delivery of projects, 
                        including practices that promote performance-
                        based decision making to achieve national, 
                        State, or regional objectives;
                            ``(v) promotes cross-jurisdictional 
                        infrastructure planning and coinvestment among 
                        a broad range of participants, including 
                        States, tribal governments, municipalities, and 
                        public and private investors; and
                            ``(vi) integrates transportation 
                        infrastructure investment planning, such as 
                        regional transportation plans, with land-use 
                        economic development and other infrastructure 
                        Investment Plans.
            ``(3) Investment prospectus.--
                    ``(A) Publication.--Not later than 1 year after the 
                date of enactment of the American Infrastructure 
                Investment Fund Act, the Fund shall publish a detailed 
                description of its strategy in an Investment Prospectus 
                that--
                            ``(i) specifies what will be considered 
                        significant to the economic competitiveness of 
                        all or part of the United States in a manner 
                        consistent with the primary objective set forth 
                        in subsection (b)(1);
                            ``(ii) specifies the priorities and 
                        strategic focus of the Fund in--
                                    ``(I) reaching the objectives set 
                                forth in subsection (b); and
                                    ``(II) carrying out the Fund 
                                strategy described in this subsection;
                            ``(iii) describes in detail--
                                    ``(I) the framework and methodology 
                                for calculating the qualification score 
                                assigned under section 364(f)(3);
                                    ``(II) the data to be requested 
                                from applicants; and
                                    ``(III) the formula to be applied 
                                to such data to calculate the 
                                qualification score;
                            ``(iv) describes how selection criteria 
                        will be applied by the Fund to determine the 
                        competitiveness of an application and its 
                        qualification score relative to other current 
                        applications and previously funded 
                        applications; and
                            ``(v) describes how the qualification score 
                        methodology and project selection framework are 
                        consistent with maximizing the Fund's goals in 
                        urban and rural areas.
                    ``(B) Updates.--Not later than 2 years after the 
                original publication of the Investment Prospectus, and 
                biennially thereafter, the Fund shall publish an 
                updated Investment Prospectus.
                    ``(C) Approval.--The Fund may not publish the 
                Investment Prospectus or any subsequent updates under 
                subparagraph (B) until the Board has approved the 
                Investment Prospectus by a majority vote.
            ``(4) Operating guidance.--
                    ``(A) Publication.--Not later than 1 year after the 
                date of enactment of the American Infrastructure 
                Investment Fund Act, the Fund shall establish and 
                publish its Operating Guidance for the management of 
                the Fund, which shall--
                            ``(i) establish general operating 
                        procedures to be followed by the Fund in 
                        carrying out its authorities under this 
                        subchapter;
                            ``(ii) establish criteria, requirements, 
                        and standards regarding the provisions of 
                        various forms of assistance authorized under 
                        this subchapter, including the various forms 
                        and terms of credit assistance that are 
                        consistent with the requirements under this 
                        subchapter;
                            ``(iii) establish an application and award 
                        process for Planning and Feasibility Loans in 
                        accordance with the provisions under this 
                        subchapter;
                            ``(iv) establish disclosure and application 
                        procedures for nominating or otherwise 
                        proposing applications for project assistance, 
                        either solicited or unsolicited, that are 
                        consistent with the requirements under this 
                        subchapter;
                            ``(v) describe in detail the form and 
                        timing of data and other information required 
                        of applicants in conjunction with consideration 
                        of an application for financial assistance 
                        under this subchapter; and
                            ``(vi) establish a schedule of regular time 
                        intervals for the submission for consideration 
                        of sets of 1 or more Investment Plans to the 
                        Board.
                    ``(B) Review and update.--The Fund shall 
                periodically review, and may update, the Operating 
                Guidance published under subparagraph (A).
            ``(5) Rulemaking.--Paragraphs (3) and (4) shall be carried 
        out in accordance with the rulemaking procedures set forth in 
        section 553 of title 5, United States Code.
``Sec. 363. Organizational structure and duties
    ``(a) Executive Director.--
            ``(1) Appointment; authority.--The President shall appoint, 
        by and with the advice and consent of the Senate, an Executive 
        Director, who shall be the chief executive officer of the Fund, 
        and shall have such executive functions, powers, and duties as 
        set forth in this subchapter or prescribed by the Board.
            ``(2) Supervision.--The Executive Director shall be subject 
        to the supervision and direction of the Secretary of 
        Transportation, consistent with the Executive Director's duties 
        under this subchapter and other requirements set forth in the 
        Operating Guidance referred to in section 362(c)(4).
            ``(3) Qualifications.--The Executive Director shall have 
        demonstrated expertise in at least 2 of the following 3 areas:
                    ``(A) Economic analysis.
                    ``(B) Project, public, or corporate finance.
                    ``(C) Organizational management.
            ``(4) Term of service; vacancy.--The Executive Director 
        shall serve a 5-year term, which may be renewed in accordance 
        with paragraph (1). A vacancy in the position of Executive 
        Director shall be filled as expeditiously as possible in the 
        manner in which the original appointment was made.
            ``(5) Duties.--In addition to the other activities required 
        to carry out the authorities and purposes of the Fund under 
        this subchapter, the Executive Director shall--
                    ``(A) be responsible for the day-to-day operations 
                of the Fund;
                    ``(B) establish and approve the Operating Guidance 
                in accordance with section 362(c)(4);
                    ``(C) establish and maintain a project application 
                origination capability at the Fund that consists of a 
                staff of qualified transportation infrastructure 
                planning professionals;
                    ``(D) establish and maintain an analysis capability 
                at the Fund that consists of a staff of qualified 
                economics professionals directed to collect application 
                data, analyze that data, and report to the Executive 
                Director on qualification scores and ranges, measures 
                of uncertainty, and other analyses of applications;
                    ``(E) establish and maintain an investment planning 
                process capability at the Fund that consists of a staff 
                of qualified project finance professionals directed to 
                review qualified applications and to structure 
                Investment Plans; and
                    ``(F) establish and maintain a technical assistance 
                capability at the Fund that consists of a staff of 
                qualified project management professionals directed to 
                assist those entities receiving funding from the Fund 
                in the successful execution of their Investment Plans 
                and to otherwise implement the funding decisions of the 
                Secretary.
            ``(6) Other authority.--The Executive Director shall have 
        the authority to hire contractors to establish and maintain the 
        expertise as described in paragraph (5).
            ``(7) Compensation.--The Executive Director shall be a 
        position compensated on the General Executive Schedule.
    ``(b) Board of Directors.--
            ``(1) Establishment.--There is established within the Fund 
        a deliberative body to be known as the `Board of Directors'.
            ``(2) Membership.--The Board shall be composed of 8 
        members, including--
                    ``(A) the Secretary of the Treasury, the Secretary 
                of Commerce, the Secretary of Energy, the Secretary of 
                Housing and Urban Development, and the Administrator of 
                the Environmental Protection Agency, who shall serve as 
                permanent members; and
                    ``(B) 3 executives of the Department of 
                Transportation appointed by the Secretary, of whom--
                            ``(i) not more than 1 shall serve 
                        concurrently as--
                                    ``(I) the Deputy Secretary;
                                    ``(II) the Under Secretary of 
                                Transportation for Policy;
                                    ``(III) the General Counsel;
                                    ``(IV) the Chief Financial Officer;
                                    ``(V) the Assistant Secretary of 
                                Transportation for Policy; or
                                    ``(VI) the Assistant Secretary of 
                                Transportation for Aviation and 
                                International Affairs; and
                            ``(ii) not more than 2 shall serve for not 
                        longer than 2 years, while concurrently serving 
                        as--
                                    ``(I) the Administrator of the 
                                Federal Aviation Administration;
                                    ``(II) the Administrator of the 
                                Federal Highway Administration;
                                    ``(III) the Administrator of the 
                                Federal Railroad Administration;
                                    ``(IV) the Administrator of the 
                                Federal Transit Administration;
                                    ``(V) the Administrator of the 
                                Maritime Administration;
                                    ``(VI) the Administrator of the 
                                Pipeline and Hazardous Materials Safety 
                                Administration; or
                                    ``(VII) the Administrator of the 
                                Federal Motor Carrier Safety 
                                Administration.
            ``(3) Duties.--The Board shall--
                    ``(A) not later than 180 days after the date of 
                enactment of the American Infrastructure Investment 
                Fund Act, establish and approve the Investment 
                Prospectus, in consultation with the Fund Advisory 
                Committee;
                    ``(B) on each biennial anniversary of its original 
                publication, update the Investment Prospectus, in 
                consultation with the Fund Advisory Committee;
                    ``(C) review Investment Plans, related application 
                materials, and other analyses provided to the Board by 
                the Executive Director;
                    ``(D) determine by majority vote whether or not to 
                recommend Investment Plans submitted by the Executive 
                Director to the Secretary; and
                    ``(E) certify reports to Congress and other 
                publications of the Fund.
            ``(4) Majority vote required.--Each action or decision by 
        the Board shall be by majority vote of all members, whether in 
        person or in absentia. Each member shall be provided a 
        reasonable opportunity to vote on all matters before the Board.
    ``(c) Fund Advisory Committee.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of enactment of the American Infrastructure Investment 
        Fund Act, the President shall establish an advisory committee, 
        to be known as the `Fund Advisory Committee'.
            ``(2) Membership.--
                    ``(A) Appointment.--The President shall appoint not 
                fewer than 5 people and not more than 7 people to serve 
                3-year terms as members of the Fund Advisory Committee, 
                including 1 member to serve as Chair of the Committee.
                    ``(B) Qualifications.--Each member shall have 
                expertise in--
                            ``(i) economics and economic analysis;
                            ``(ii) project or fund management;
                            ``(iii) portfolio or fund management;
                            ``(iv) organized labor interests;
                            ``(v) environmental interests;
                            ``(vi) American business and trade 
                        interests;
                            ``(vii) rural community and economic 
                        development;
                            ``(viii) metropolitan economic development 
                        and clustering of economic development;
                            ``(ix) State Department of Transportation 
                        or Metropolitan Planning Organization policies 
                        and priorities; or
                            ``(x) other infrastructure planning, 
                        redevelopment, and development-related codes 
                        and policies.
                    ``(C) Representation.--The President shall ensure 
                that the membership of the Fund Advisory Committee--
                            ``(i) is bipartisan;
                            ``(ii) is geographically and economically 
                        balanced; and
                            ``(iii) is balanced in terms of the 
                        functions to be performed by the Fund Advisory 
                        Committee.
            ``(3) Advice.--The Fund Advisory Committee shall advise the 
        Board and the Secretary with respect to--
                    ``(A) the alignment of the Investment Prospectus 
                with the primary and secondary objectives, and other 
                elements of the Fund strategy described in section 
                362(c);
                    ``(B) the alignment of the framework and 
                methodology used to determine qualification scores and 
                uncertainty estimates with the primary objective, 
                secondary objectives, and the Fund strategy;
                    ``(C) the consistency of the calculation of 
                qualification scores and uncertainty estimates with 
                academic standards for analytical rigor and data 
                quality typically applied to peer-reviewed research;
                    ``(D) the alignment of investment decision 
                mechanics and outcomes with the Investment Prospectus 
                and the requirements under this subchapter;
                    ``(E) the integrity and effectiveness of Fund 
                operations and performance, including application 
                evaluation processes, Investment Plan processes and 
                determinations, and the optimization of the Fund's 
                performance as a portfolio; and
                    ``(F) prospects for the extension of the Fund's 
                activities to nontransportation infrastructure sectors 
                likely to benefit the United States, including 
                renewable energy generation, energy transmission and 
                storage, energy efficiency, drinking water and 
                wastewater systems, and telecommunications.
            ``(4) Applicability of faca.--The Fund Advisory Committee 
        shall be subject to the Federal Advisory Committee Act (5 
        U.S.C. App.).
``Sec. 364. Fund authorities and assistance
    ``(a) Agreements With Other Organizations.--The Fund may--
            ``(1) enter into an agreement with any organization within 
        the Department of Transportation to obtain necessary technical 
        expertise and assistance; and
            ``(2) request any Federal agency to detail employees to the 
        Fund for purposes of carrying out its duties under this 
        subchapter.
    ``(b) Fees for Services.--
            ``(1) Administrative fees.--The Fund may establish and 
        collect fees from eligible funding recipients, including 
        application and processing fees and other fees associated with 
        the costs of loan servicing, at a level sufficient to cover all 
        or a portion of the administrative costs to the Federal 
        Government of providing funding assistance and servicing the 
        credit instruments entered into under this subchapter.
            ``(2) Other fees.--The Fund may establish and collect fees 
        from eligible funding recipients at a level sufficient to cover 
        all or a portion of 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.
            ``(3) Limitation.--The Fund may not collect fees under 
        paragraph (1) or (2) that originate as a loan or a debt 
        obligation guaranteed by the Federal Government.
            ``(4) Availability of amounts.--Amounts collected under 
        paragraphs (1) and (2) shall be available to be expended to 
        carry out the duties under this subchapter.
    ``(c) Planning and Feasibility Loans.--
            ``(1) In general.--The Fund may provide loans, which may be 
        forgivable, to eligible funding recipients to fund activities 
        related to the planning, preparation, or design of an eligible 
        project proposal, including costs associated with--
                    ``(A) planning and formulating optimal project 
                design;
                    ``(B) assessing project technical feasibility; and
                    ``(C) assessing potential project performance.
            ``(2) Loan program criteria.--In providing loans under this 
        subsection, the Fund shall give priority to activities that are 
        likely to lead to projects that--
                    ``(A) advance the objectives set forth in section 
                362(b); and
                    ``(B) are consistent with the strategy described in 
                section 362(c).
            ``(3) Federal share.--The Fund may enter into a loan 
        agreement with an eligible recipient in which the Fund agrees 
        to pay up to 100 percent of eligible planning and feasibility 
        costs of an eligible project under this subsection.
            ``(4) Eligible costs.--Loan amounts received under this 
        subsection may be used for--
                    ``(A) any activity reasonably necessary to obtain 
                Federal, State, and local permits, licenses, and 
                approvals for an eligible project, including--
                            ``(i) concept development and preliminary 
                        design;
                            ``(ii) economic and environmental analyses; 
                        and
                            ``(iii) application, licensing, and permit 
                        fees; or
                    ``(B) the preparation of financial analyses and 
                other economic analyses that are reasonably necessary 
                to secure funding to implement an eligible project.
            ``(5) Alignment with investment prospectus.--The Fund may 
        not provide a loan for a project under this subsection unless 
        the application materials demonstrate that the eligible project 
        is aligned with the strategy outlined in the Investment 
        Prospectus.
            ``(6) Designation for receipt of certain funds.--If a non-
        Federal governmental entity, agency, or instrumentality is 
        carrying out the planning and feasibility activities, the 
        eligible funding recipient may designate such entity, agency, 
        or instrumentality to receive loan amounts for such activities 
        directly from the Fund.
    ``(d) Direct Loans and Loan Guarantees.--
            ``(1) Direct loans.--
                    ``(A) Agreements.--The Fund is authorized to make 
                direct loans to eligible funding recipients for 
                eligible projects on such terms and conditions, and 
                containing such covenants, representations, warranties, 
                and requirements, including required audits, as the 
                Fund determines appropriate, in accordance with the 
                provisions under this subchapter, the Operating 
                Guidance, and all other statutory and regulatory 
                requirements.
                    ``(B) Approved investment plan.--Direct loans made 
                under this paragraph--
                            ``(i) may only be used to fund eligible 
                        project costs covered in an Investment Plan 
                        approved by the Secretary; and
                            ``(ii) are subject to the terms and 
                        conditions of the approved Investment Plan.
                    ``(C) Terms, conditions, and limitations.--Direct 
                loans made under this paragraph will be on such terms, 
                conditions, and limitations as the Executive Director 
                may prescribe, except that--
                            ``(i) the Fund may not provide credit 
                        assistance to any prospective borrower unless 
                        such assistance--
                                    ``(I) is necessary--
                                            ``(aa) to alleviate a 
                                        credit market imperfection; or
                                            ``(bb) to achieve specified 
                                        Federal objectives by providing 
                                        credit assistance; and
                                    ``(II) is the most efficient way to 
                                meet such objectives on a borrower-by-
                                borrower basis;
                            ``(ii) loans made under this paragraph may 
                        not be subordinated to other debt contracted by 
                        the borrower or any other claims against the 
                        borrower in case of default unless such 
                        subordination is necessary to achieve Federal 
                        objectives, consistent with the criteria and 
                        policies set forth in the Operating Guidance;
                            ``(iii) direct loans or interest 
                        supplements on loan guarantees shall be at an 
                        interest rate that is set by reference to a 
                        benchmark interest rate (yield) on marketable 
                        Treasury securities with a similar maturity to 
                        the direct loans being made or the non-Federal 
                        loans being guaranteed, and includes any 
                        necessary credit risk premium at a level 
                        consistent with the interest rate policy set 
                        forth in the Operating Guidance;
                            ``(iv) the Executive Director--
                                    ``(I) shall prescribe explicit 
                                standards for use in periodically 
                                assessing the credit risk of new and 
                                existing direct loans and guaranteed 
                                loans; and
                                    ``(II) may not extend credit 
                                assistance without determining that 
                                there is a reasonable assurance of 
                                repayment;
                            ``(v) new direct loans may not be obligated 
                        and new loan guarantees may not be committed 
                        except to the extent that appropriations of 
                        budget authority to cover their costs are made 
                        in advance, as required under section 504 of 
                        the Federal Credit Reform Act of 1990 (2 U.S.C. 
                        661c);
                            ``(vi) the total principal amount of the 
                        direct loan or loan guarantee may not exceed--
                                    ``(I) the lower of 70 percent of 
                                total eligible project cost less the 
                                percentage of eligible project costs 
                                that are otherwise funded by the Fund; 
                                or
                                    ``(II) another level prescribed in 
                                the Operating Guidance; and
                            ``(vii) notwithstanding any other provision 
                        of law relating to the acquisition, handling, 
                        or disposal of property by the Federal 
                        Government, the Fund may complete, recondition, 
                        reconstruct, renovate, repair, maintain, 
                        operate, or sell any property acquired by the 
                        Fund under this subchapter.
                    ``(D) Repayment.--
                            ``(i) Policies.--The Fund shall--
                                    ``(I) adhere to the policies set 
                                forth in the Operating Guidance 
                                concerning repayment terms; and
                                    ``(II) establish repayment terms 
                                for each direct loan based on the 
                                projected cash flow from project 
                                revenues or other repayment sources.
                            ``(ii) Maturity date.--The final maturity 
                        date of a direct loan under this paragraph--
                                    ``(I) shall not exceed 90 percent 
                                of the estimated useful economic life 
                                of the asset being financed, except 
                                under conditions set forth in the 
                                Operating Guidance; and
                                    ``(II) may not be later than the 
                                estimated useful economic life of the 
                                asset being financed.
                    ``(E) Risk assessment.--Before entering in any 
                agreement under this section, the Executive Director 
                shall complete a risk assessment of the project to be 
                funded. Requirements for risk assessment shall be 
                outlined in the Operating Guidance.
            ``(2) Loan guarantees.--
                    ``(A) In general.--The Fund is authorized to 
                provide loan guarantees to eligible funding recipients 
                on such terms and conditions and containing such 
                covenants, representations, warranties, and 
                requirements (including required audits) as the Fund 
                determines appropriate, in accordance with the 
                provisions under this subchapter, the Operating 
                Guidance, and all other statutory and regulatory 
                requirements.
                    ``(B) Approved investment plan.--Loan guarantees 
                provided under this paragraph--
                            ``(i) may only cover eligible project costs 
                        in an approved Investment Plan; and
                            ``(ii) are subject to the terms and 
                        conditions of the approved Investment Plan.
                    ``(C) Terms, conditions, and limitations.--
                            ``(i) In general.--The terms, conditions, 
                        and limitations of a guaranteed loan shall 
                        comply with the terms, conditions, and 
                        limitations set forth in paragraph (1) for a 
                        direct loan, including maximum Fund share 
                        requirements, except that the interest rate on 
                        the guaranteed loan and any repayment features 
                        shall be negotiated between the eligible 
                        funding recipient and the lender in accordance 
                        with the policies set forth in the Operating 
                        Guidance, and with the consent of the 
                        Secretary.
                            ``(ii) Income excluded.--A loan may not be 
                        guaranteed under this paragraph if--
                                    ``(I) the income from such loan is 
                                excluded from gross income for the 
                                purposes of chapter 1 of the Internal 
                                Revenue Code of 1986; or
                                    ``(II) the guarantee provides 
                                significant collateral or security, as 
                                determined by the Executive Director, 
                                for other obligations generating income 
                                that is similarly excluded.
                            ``(iii) Fees.--Fees or premiums for a loan 
                        guarantee or insurance coverage shall be set at 
                        levels that minimize the cost to the Government 
                        (as defined in section 502(5) of the Federal 
                        Credit Reform Act of 1990 (2 U.S.C. 661a(5))) 
                        of such coverage, while supporting achievement 
                        of the program's objectives, in accordance with 
                        policies set forth in the Operating Guidance.
                            ``(iv) Percent guaranteed.--A loan 
                        guarantee under this paragraph may not exceed 
                        80 percent of the loss of the loan. Borrowers 
                        who pose less of a risk shall receive a lower 
                        guarantee as a percentage of the loan amount.
                            ``(v) Criteria.--A loan may not be 
                        guaranteed under this paragraph unless the 
                        Executive Director determines that--
                                    ``(I) the lender is responsible; 
                                and
                                    ``(II) adequate provision is made 
                                for servicing the loan on reasonable 
                                terms.
                            ``(vi) Conclusive evidence.--Any guarantee 
                        shall be conclusive evidence that--
                                    ``(I) such guarantee has been 
                                properly obtained;
                                    ``(II) the underlying loan 
                                qualified for such guarantee; and
                                    ``(III) such guarantee is presumed 
                                to be valid, legal, and enforceable, 
                                unless such guarantee was obtained 
                                through fraud or material 
                                misrepresentation by the holder.
                            ``(vii) Effect of default.--If, as a result 
                        of a default by a borrower under a guaranteed 
                        loan, after the holder of the loan has made 
                        such further collection efforts and instituted 
                        such enforcement proceedings as the Executive 
                        Director may require, the Executive Director 
                        determines that the holder has suffered a loss, 
                        the Executive Director--
                                    ``(I) shall pay to the holder not 
                                more than 80 percent of such loss, as 
                                specified in the guarantee contract;
                                    ``(II) upon making such payment, 
                                shall be subrogated to all the rights 
                                of the recipient of the payment; and
                                    ``(III) shall be entitled to 
                                recover from the borrower the amount of 
                                any payments made pursuant to any 
                                guarantee entered into under this 
                                paragraph.
                            ``(viii) Enforcement.--The Attorney General 
                        shall take such action as may be appropriate to 
                        enforce any right accruing to the United States 
                        as a result of the issuance of any loan 
                        guarantee under this paragraph.
                            ``(ix) Savings provision.--Nothing in this 
                        paragraph may be construed to preclude any 
                        forbearance for the benefit of the borrower, 
                        which may be agreed upon by the Executive 
                        Director, if budget authority for any resulting 
                        modification cost (as defined under section 502 
                        of the Congressional Budget Act of 1974 (2 
                        U.S.C. 661a)) is available.
                    ``(D) Repayment.--The Fund shall adhere to policies 
                set forth in the Operating Guidance concerning 
                repayment terms and shall establish repayment terms for 
                each direct loan based on the projected cash flow from 
                project revenues or other repayment sources.
                    ``(E) Risk assessment.--Requirements for risk 
                assessment shall be outlined in the Operating Guidance.
    ``(e) Application Evaluation and Qualification.--
            ``(1) Application eligibility standard.--An application for 
        financial assistance from the Fund may not be considered 
        unless--
                    ``(A) funding recipient or recipients, project or 
                program of related projects, and associated project 
                costs identified in the application are eligible for 
                such funding under this subchapter;
                    ``(B) eligible project costs identified in the 
                application--
                            ``(i) are greater than $50,000,000; or
                            ``(ii) if the application is for a project 
                        or program of related projects located entirely 
                        in a rural area, are greater than $10,000,000;
                    ``(C) the application identifies financial 
                assistance from sources outside of the Fund equal to at 
                least 30 percent of the total eligible project costs;
                    ``(D) the application identifies project benefits 
                that are distributed broadly, either at a national or a 
                regional level; and
                    ``(E) the applicant is not ineligible to receive 
                Federal loans, loan guarantees, or insurance due to a 
                delinquency on Federal tax or non-tax debts, including 
                judgment liens against property for a debt to the 
                Federal Government.
            ``(2) Resolution of debts.--The Fund shall use credit 
        bureaus as a screening tool and ask applicants about 
        delinquencies described in paragraph (1)(E) on the application 
        form. An application from an applicant that is delinquent on a 
        debt to the Federal Government may not be processed until after 
        the applicant satisfactorily resolves the debts in compliance 
        with section 3720B of title 31, United States Code, and section 
        285.13 of title 31, Code of Federal Regulations.
            ``(3) Qualification score.--
                    ``(A) Assignment.--The Fund shall assign to each 
                eligible application a single numerical factor, which 
                shall be--
                            ``(i) based upon an evaluation of the 
                        information and data collected from the 
                        applicant or otherwise obtained in the course 
                        of due diligence on the application;
                            ``(ii) referred to as the `qualification 
                        score'; and
                            ``(iii) equal to the ratio between the 
                        present value of benefits to the present value 
                        of costs reasonably expected to result from the 
                        funding of the project or projects proposed in 
                        the application.
                    ``(B) Calculation.--The calculation of the 
                qualification score shall be determined through a 
                consistently and transparently applied analytic and 
                systematic framework. In order to indicate the 
                potential uncertainty of the qualification score, the 
                Fund shall use a measure of the uncertainty of expected 
                project benefits and costs to derive a range of ratio 
                values with the qualification score as the midpoint of 
                that range.
                    ``(C) Methodology.--The methodology used to 
                calculate the qualification score and uncertainty 
                measures shall--
                            ``(i) apply equal weighting to all measures 
                        of the net present value of benefits and costs;
                            ``(ii) include standardized measures of the 
                        expected uncertainty in both total and specific 
                        benefits and costs associated with the project; 
                        and
                            ``(iii) include a descriptive statement 
                        delineating the significant factors and 
                        analysis that went into determination of the 
                        score and the range.
                    ``(D) Publication.--
                            ``(i) Investment prospectus.--The 
                        methodology of the framework for calculating 
                        the qualification score, including the specific 
                        mechanics of its calculation, shall be 
                        published in the Investment Prospectus.
                            ``(ii) Methodology.--The quantification 
                        score, the methodology used to calculate the 
                        qualification score, the calculation of the 
                        qualification score, and the measure of 
                        uncertainty shall be--
                                    ``(I) provided to the applicant not 
                                later than 15 days after their final 
                                determination; and
                                    ``(II) published on the Fund's 
                                website not later than 30 days after 
                                their final determination.
            ``(4) Application certification.--The Executive Director 
        may not certify an application as qualified for financial 
        assistance on the basis of an evaluation of the information and 
        data collected from the applicant unless the Executive Director 
        determines that the application's qualification score--
                    ``(A) has been calculated on the basis of data, 
                estimates, and assumptions that are defensible 
                according to accepted standards of economic analysis;
                    ``(B) appears valid based on efforts by the Fund to 
                conduct due diligence and verification;
                    ``(C) is greater than the threshold for 
                qualification published in the Investment Prospectus; 
                and
                    ``(D) is competitive with scores issued to 
                applications currently under consideration and scores 
                issued to applications previously funded under this 
                section, after taking into account the extent to which 
                the application under consideration, in order of 
                priority--
                            ``(i) advances the objectives of the Fund 
                        set forth in section 362(b);
                            ``(ii) addresses a special infrastructure 
                        investment challenge due to cost, complexity, 
                        cross-jurisdictional scope, multi-modal 
                        features, or the use of innovative 
                        technologies;
                            ``(iii) provides a cost-effective approach 
                        to achieving the benefits described in the 
                        application relative to alternative approaches 
                        to achieving comparable benefits, after taking 
                        into account the estimated uncertainty in 
                        measures of costs and benefits associated with 
                        the project;
                            ``(iv) combines amounts received from the 
                        Fund with other revenue sources to leverage 
                        substantial co-investment from non-Federal 
                        sources;
                            ``(v) delivers revenue streams from public 
                        or private sources dedicated to pay debt 
                        service, meet ongoing operating expenses, or 
                        provide for needed maintenance and capital 
                        renewal over the life cycle of the funded 
                        asset; and
                            ``(vi) encourages the use of innovative 
                        procurement, asset management, or financing to 
                        optimize the all-in-life-cycle cost-
                        effectiveness of a project.
    ``(f) Investment Plans.--
            ``(1) Qualified application requirement.--After an 
        application is certified by the Executive Director as qualified 
        under subsection (e)(4), the Executive Director and the 
        applicant shall enter a process for producing a mutually 
        agreeable Investment Plan. Financial assistance may not be 
        provided to an applicant under this section unless the 
        applicant's Investment Plan has been recommended by the Board 
        and approved by the Secretary.
            ``(2) Investment planning process.--The Fund shall 
        establish an investment planning process for determining the 
        level, form, and terms of financial assistance to be offered by 
        the Fund, including a mutually agreeable financing package 
        that--
                    ``(A) is adequate to fund the project or projects 
                included in the application;
                    ``(B) maximizes total expected project benefits 
                relative to total expected costs; and
                    ``(C) considers the portion of total costs to be 
                financed by the Fund.
            ``(3) Considerations.--When considering the appropriate 
        level and form of Fund resources to include in an Investment 
        Plan, the Fund shall--
                    ``(A) consider the qualification score achieved by 
                the application relative to other current applications 
                and previously funded applications;
                    ``(B) strive to make investment plan decisions on 
                the basis of maximizing total net benefits relative to 
                cost; and
                    ``(C) consider--
                            ``(i) the amount of Fund budgetary 
                        resources required to complete a financing 
                        package;
                            ``(ii) the percentage of Federal resources 
                        included in the Investment Plan in the form of 
                        grants;
                            ``(iii) the level of certainty of the 
                        proposed net benefits, including the risks to 
                        the Federal taxpayer and the project sponsor in 
                        the event of project cost overrun or failure; 
                        and
                            ``(iv) the percentage of eligible project 
                        costs to be funded through non-Federal 
                        resources pledged by the applicant to complete 
                        a financing package.
            ``(4) Investment plans.--As part of the investment planning 
        process--
                    ``(A) the Fund shall have the sole discretion to 
                determine the terms of assistance to be offered to 
                applicants, subject to the provisions under this 
                subchapter, the availability of funding, and any other 
                statutory and regulatory requirements;
                    ``(B) if the Fund and the applicant are able to 
                reach mutually agreeable terms, the Fund shall record 
                the determination on Fund assistance and the details of 
                the complete financing package in an Investment Plan;
                    ``(C) the Fund may not approve an Investment Plan 
                that does not identify a complete financing package; 
                and
                    ``(D) the Fund is not required or compelled to 
                reach agreement on an Investment Plan.
            ``(5) Submission to board.--The Executive Director shall 
        advance Investment Plans for qualified applications to the 
        Board at regular submission intervals, as set forth in the 
        Operating Guidance.
            ``(6) Conflict of interest protections.--The Secretary of 
        Transportation and the Fund shall jointly establish, in 
        operating procedures and in the Operating Guidance, 
        communications practices and compliance procedures that protect 
        professional staff of the Fund who are responsible for 
        negotiating Investment Plans from outside or otherwise 
        inappropriate influence, and conflicts of interest, including 
        necessary restrictions on communications between staff of the 
        Fund who are responsible for the investment planning process 
        and individuals and organizations within and outside the 
        Department of Transportation, including--
                    ``(A) the Board;
                    ``(B) the Office of the Secretary;
                    ``(C) the Secretary; and
                    ``(D) others needed to safeguard the ability of the 
                Fund to fairly and independently formulate Investment 
                Plans under this subsection.
    ``(g) Funding Decisions.--
            ``(1) Investment plan submission requirement.--The Board 
        may not consider recommending an application for funding before 
        receiving an Investment Plan from the Executive Director.
            ``(2) Application funding recommendation.--Not later than 
        15 days after receiving an Investment Plan from the Executive 
        Director, the Board shall--
                    ``(A) vote on whether to recommend funding for the 
                Investment Plan;
                    ``(B) notify the Secretary of the outcome of such 
                vote; and
                    ``(C) if funding is recommended, forward the 
                Investment Plan to the Secretary for approval.
            ``(3) No modification.--Neither the Board nor the Secretary 
        may modify any Investment Plan.
            ``(4) Funding consideration.--
                    ``(A) Determination.--After considering an 
                Investment Plan recommended by the Board, the Secretary 
                shall approve or reject the Investment Plan.
                    ``(B) Approval.--If the Investment Plan is approved 
                by the Secretary, it shall be funded in accordance with 
                the provisions of the Investment Plan.
                    ``(C) Rejection.--If the Investment Plan is 
                rejected by the Secretary, the Investment Plan--
                            ``(i) shall be returned to the Executive 
                        Director with a detailed justification for 
                        rejecting the Investment Plan, which shall be 
                        forwarded to the applicant; and
                            ``(ii) may be reconsidered by the Fund not 
                        earlier than 1 year after such date of return.
    ``(h) Project Sponsorship; Public Benefit Analysis; Legal 
Compliance.--
            ``(1) Compliance with applicable laws.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the Fund shall determine which requirements under 
                this title or title 23 shall be applicable to projects 
                receiving financial assistance under this subchapter 
                that would otherwise be eligible for financial 
                assistance under such titles.
                    ``(B) Labor standards.--
                            ``(i) In general.--All laborers and 
                        mechanics employed on projects assisted in 
                        whole or in part by and through the Fund 
                        pursuant to this subchapter 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.
                            ``(ii) Authority; functions.--With respect 
                        to the labor standards specified in this 
                        subparagraph, 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.
                            ``(iii) Requirements.--Projects funded 
                        directly by or assisted in whole or in part by 
                        and through the Fund pursuant to this 
                        subchapter shall be subject to the requirements 
                        of section 5333(b) of title 49, United States 
                        Code.
                    ``(C) Planning and environmental laws.--A project 
                that receives financial assistance under this 
                subchapter shall comply with--
                            ``(i) the applicable planning and 
                        programming requirements under section 134 and 
                        135 of title 23; and
                            ``(ii) all applicable environmental laws 
                        and requirements, including the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.) and the National Historic 
                        Preservation Act of 1966 (16 U.S.C. 470 et 
                        seq.).
            ``(2) Lead agency.--
                    ``(A) In general.--The Department of Transportation 
                shall be the Federal lead agency in the environmental 
                review process for a project that receives financial 
                assistance under this subchapter. Subject to 
                subparagraphs (B) through (D), the Secretary of 
                Transportation may delegate this responsibility to an 
                operating administration.
                    ``(B) Joint lead federal agency.--Nothing in this 
                paragraph precludes another Federal agency from being a 
                joint lead agency in accordance with the regulations 
                adopted by the President's Council on Environmental 
                Quality.
                    ``(C) Joint lead state agency.--A non-Federal 
                government entity, agency, or instrumentality receiving 
                funds under this subchapter may--
                            ``(i) serve as a joint lead agency with the 
                        Department of Transportation under the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.); and
                            ``(ii) at the discretion of the lead 
                        Federal agency, prepare any environmental 
                        document required in support of the project if 
                        the lead Federal agency--
                                    ``(I) furnishes guidance in such 
                                preparation; and
                                    ``(II) independently evaluates, 
                                approves, and adopts the State or local 
                                government's environmental 
                                documentation before taking any action 
                                on the project.
                    ``(D) Nongovernmental funding recipients.--If a 
                project is undertaken by a nongovernmental entity, the 
                non-Federal government entity, agency, or 
                instrumentality cosponsor of the project shall--
                            ``(i) serve as a joint lead agency with the 
                        Department of Transportation; and
                            ``(i) have the authority to prepare the 
                        environmental documents described in 
                        subparagraph (C)(ii).
            ``(3) Determination of applicable modal requirements.--If a 
        project has cross-modal components, the Fund may designate the 
        specific requirements that shall apply to the project.
            ``(4) Use of american iron, steel, and manufactured 
        goods.--
                    ``(A) In general.--None of the funds made available 
                under this subchapter 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.--Subparagraph (A) shall not apply 
                in any case or category of cases in which the Secretary 
                finds that--
                            ``(i) applying subparagraph (A) would be 
                        inconsistent with the public interest;
                            ``(ii) 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
                            ``(iii) 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) Publication of waivers.--If the Secretary 
                determines that it is necessary to waive the 
                application of subparagraph (A) based on a finding 
                under subparagraph (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) International agreements.--This paragraph 
                shall be applied in a manner consistent with United 
                States obligations under international agreements.
    ``(i) Investment-Grade Rating Requirement.--The Fund shall maintain 
a portfolio of projects whose average rating is not less than 
investment grade.
``Sec. 365. Studies and reports
    ``(a) Annual Financial Audits.--
            ``(1) In general.--The Fund shall be subject to an annual 
        financial audit by an independent public accounting firm 
        selected by the Board to ensure that its operations meet 
        generally accepted accounting principles.
            ``(2) Dissemination.--The Fund shall--
                    ``(A) submit the results of each audit under 
                paragraph (1) to the Committee on Commerce, Science, 
                and Transportation of the Senate and the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives; and
                    ``(B) post such audit results on the Fund's 
                website.
    ``(b) Comptroller General Report.--
            ``(1) In general.--Not later than 5 years after the date of 
        enactment of the American Infrastructure Investment Fund Act, 
        the Comptroller General of the United States shall prepare and 
        submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on 
        Transportation and Infrastructure in the House of 
        Representatives a report that evaluates the operations of the 
        Fund and assesses the effectiveness of the Fund at facilitating 
        and financing infrastructure projects. The Comptroller General 
        shall provide periodic oversight and monitoring of the Fund as 
        it is established and report on such oversight, as agreed to 
        with the appropriate congressional committees.
            ``(2) Contents.--
                    ``(A) In general.--The Comptroller General shall 
                review and include in the report under paragraph (1), 
                at minimum, the following:
                            ``(i) The type of projects selected and 
                        financing used.
                            ``(ii) The level of Federal funding 
                        provided to support the Fund and the projects 
                        selected for funding.
                            ``(iii) The level of private sector funds 
                        that were contributed to specific projects.
                            ``(iv) The process, criteria, and analysis 
                        used to select projects and how the process, 
                        criteria, and analysis could be improved.
                            ``(v) The monitoring and evaluation 
                        processes the Fund uses to determine if an 
                        individual project is meeting its objectives.
                    ``(B) Considerations.--The Government 
                Accountability Office shall--
                            ``(i) analyze current trends in the 
                        financing infrastructure in the United States;
                            ``(ii) identify lessons the analysis under 
                        clause (i) may imply for improvements or 
                        modifications to the structure or operations of 
                        the Fund;
                            ``(iii) analyze the experiences of other 
                        industrialized countries that have developed 
                        alternative forms of financing public 
                        infrastructure; and
                            ``(iv) identify lessons that the foreign 
                        experiences under clause (iii) may have for the 
                        operations and efficiency of the Fund.
    ``(c) Biennial Report.--
            ``(1) In general.--Every 2 years after the date of the 
        enactment of the American Infrastructure Investment Fund Act, 
        the Board, in consultation with the Director of the Office of 
        Management and Budget and the Fund Advisory Committee--
                    ``(A) shall prepare a report that--
                            ``(i) evaluates the Fund's performance; and
                            ``(ii) includes an assessment of the Fund 
                        as a model for infrastructure investment; and
                    ``(B) may include a recommendation in the report 
                under subparagraph (A) on whether to extend the Fund's 
                activities to nontransportation infrastructure sectors 
                likely to benefit the United States, including--
                            ``(i) renewable energy generation;
                            ``(ii) energy transmission and storage;
                            ``(iii) energy efficiency;
                            ``(iv) drinking water and wastewater 
                        systems;
                            ``(v) telecommunications; and
                            ``(vi) other infrastructure activities.
            ``(2) Dissemination.--The Board shall--
                    ``(A) submit the report prepared under paragraph 
                (1) to the Committee on Commerce, Science, and 
                Transportation of the Senate and the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives; and
                    ``(B) post the report on the Fund's website.
    ``(d) Investment Plan and Decisions.--Not later than 90 days after 
the Board's decision on an Investment Plan, the Fund Advisory Committee 
shall post a report on the Fund's website that assesses--
            ``(1) the adherence of each funding decision to the 
        requirements of the Investment Prospectus, Operating Guidance, 
        and this subchapter;
            ``(2) the consistency of funded applications with the 
        primary objective, the secondary objectives, the Fund strategy, 
        and the requirements under this subchapter;
            ``(3) the validity of the qualification certification of 
        each funded application;
            ``(4) the return on Federal investment likely to result 
        from each funded Investment Plan; and
            ``(5) the return on total investment likely to result from 
        each funded Investment Plan.''.
    (b) Authorization of Appropriations.--
            (1) Amounts authorized.--
                    (A) In general.--There is authorized to be 
                appropriated to carry out subchapter IV of chapter 3 of 
                title 49, United States Code, as added by subsection 
                (a), $5,000,000,000 for each of fiscal years 2014 and 
                2015.
                    (B) Availability of funds.--Amounts made available 
                under subparagraph (A) shall remain available until 
                expended.
            (2) Administrative expenses.--Of the amounts appropriated 
        under paragraph (1), the Fund may expend, to pay the reasonable 
        costs of administering such subchapter IV, inclusive of any 
        fees collected under such subchapter--
                    (A) not more than $50,000,000 in fiscal year 2014; 
                and
                    (B) not more than $51,000,000 in fiscal year 2015.

SEC. 3. NATIONAL INFRASTRUCTURE INVESTMENT GRANTS.

    (a) Establishment of Program.--Chapter 55 of title 49, United 
States Code, is amended by adding at the end the following:

                 ``SUBCHAPTER III--FINANCIAL ASSISTANCE

``Sec. 5581. National infrastructure investment grants
    ``(a) Establishment of Program.--The Secretary of Transportation 
shall establish a competitive grant program to provide financial 
assistance for projects that will have a significant impact on the 
Nation, a metropolitan area, or a region.
    ``(b) Eligible Projects.--An applicant is eligible for a grant 
under this section for a project that is part of, or related to, a 
transportation improvement, including projects related to the 
construction or improvement of--
            ``(1) a passenger or freight rail line;
            ``(2) a highway;
            ``(3) a bridge;
            ``(4) an airport;
            ``(5) an air traffic control system;
            ``(6) a port or marine facility;
            ``(7) an inland waterway;
            ``(8) a transmission or distribution pipeline;
            ``(9) public transportation facilities or systems;
            ``(10) intercity passenger bus or passenger rail facilities 
        or equipment;
            ``(11) freight rail facilities or equipment; or
            ``(12) planning, preparation, or design of any project 
        described in paragraphs (1) through (11).
    ``(c) Project Selection Criteria.--In determining whether to award 
a grant to an eligible applicant under this section, the Secretary 
shall consider the extent to which the project--
            ``(1) leverages Federal investment by encouraging non-
        Federal contributions to the project, including contributions 
        from public-private partnerships;
            ``(2) improves the mobility of people, goods, and 
        commodities;
            ``(3) incorporates new and innovative technologies, 
        including intelligent transportation systems;
            ``(4) improves energy efficiency or reduces greenhouse gas 
        emissions;
            ``(5) helps maintain or protect the environment, including 
        reducing air and water pollution;
            ``(6) reduces congestion;
            ``(7) improves the condition of transportation 
        infrastructure, including bringing it into a state of good 
        repair;
            ``(8) improves safety, including reducing transportation 
        accidents, injuries, and fatalities;
            ``(9) demonstrates that the proposed project cannot be 
        readily and efficiently realized without Federal support and 
        participation; and
            ``(10) enhances national or regional economic development, 
        growth, and competitiveness.
    ``(d) Priority.--The Secretary shall give priority to projects that 
have the highest system performance improvement relative to their 
benefit-cost analysis.
    ``(e) Letters of Intent.--
            ``(1) In general.--The Secretary may issue a letter of 
        intent to an applicant announcing an intention to obligate, for 
        a major capital project under this subsection, an amount from 
        future available budget authority specified in law that is not 
        more than the amount stipulated as the financial participation 
        of the Secretary in the project.
            ``(2) Notification.--Not later than 30 days before issuing 
        a letter under paragraph (1), the Secretary shall submit 
        written notification of the proposed letter or agreement to the 
        Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Transportation and Infrastructure 
        of the House of Representatives, which shall include--
                    ``(A) a copy of the proposed letter or agreement;
                    ``(B) the criteria used under subsection (c) for 
                selecting the project for a grant award; and
                    ``(C) a description of how the project meets such 
                criteria.
            ``(3) Commitment.--An obligation or administrative 
        commitment may be made only when amounts are made available. 
        The letter of intent shall state that the contingent commitment 
        is not an obligation of the Federal Government, and is subject 
        to the availability of funds under Federal law and to Federal 
        laws in force or enacted after the date of the contingent 
        commitment.
    ``(f) Federal Share of Net Project Cost.--
            ``(1) In general.--The Federal share of a grant for the 
        project shall not exceed 80 percent of the project net capital 
        cost.
            ``(2) Estimate.--The Secretary shall estimate the net 
        project cost based on engineering studies, studies of economic 
        feasibility, and information on the expected use of equipment 
        or facilities.
            ``(3) Priority.--The Secretary shall give priority in 
        allocating future obligations and contingent commitments to 
        incur obligations to grant requests seeking a lower Federal 
        share of the project net capital cost.
    ``(g) Cooperative Agreements.--
            ``(1) In general.--An applicant may enter into an agreement 
        with any public, private, or nonprofit entity to cooperatively 
        implement any project funded with a grant under this 
        subchapter.
            ``(2) Forms of participation.--Participation by an entity 
        under paragraph (1) may consist of--
                    ``(A) ownership or operation of any land, facility, 
                vehicle, or other physical asset associated with the 
                project;
                    ``(B) cost-sharing of any project expense or non-
                Federal share of the project cost, including in-kind 
                contributions;
                    ``(C) carrying out administration, construction 
                management, project management, project operation, or 
                any other management or operational duty associated 
                with the project; and
                    ``(D) any other form of participation approved by 
                the Secretary.
    ``(h) Oversight Program.--
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary shall establish an 
                oversight program to monitor the effective and 
                efficient use of funds authorized to carry out this 
                section.
                    ``(B) Minimum requirement.--At a minimum, the 
                program shall be responsive to all areas relating to 
                financial integrity and project delivery.
            ``(2) Financial integrity.--
                    ``(A) Financial management systems.--The Secretary 
                shall perform annual reviews that address elements of 
                the applicant's financial management systems that 
                affect projects approved under subsection (a).
                    ``(B) Project costs.--The Secretary shall develop 
                minimum standards for estimating project costs and 
                shall periodically evaluate the practices of applicants 
                for estimating project costs, awarding contracts, and 
                reducing project costs.
            ``(3) Project delivery.--The Secretary shall perform annual 
        reviews that address elements of the project delivery system of 
        an applicant, which elements include one or more activities 
        that are involved in the life cycle of a project from 
        conception to completion of the project.
            ``(4) Responsibility of the applicants.--
                    ``(A) In general.--Each applicant shall submit to 
                the Secretary for approval such plans, specifications, 
                and estimates for each proposed project as the 
                Secretary may require.
                    ``(B) Applicant subrecipients.--The applicant shall 
                be responsible for determining that a subrecipient of 
                Federal funds under this section has--
                            ``(i) adequate project delivery systems for 
                        projects approved under this section; and
                            ``(ii) sufficient accounting controls to 
                        properly manage such Federal funds.
                    ``(C) Periodic review.--The Secretary shall 
                periodically review the monitoring of subrecipients by 
                the applicant.
            ``(5) Specific oversight responsibilities.--Nothing in this 
        section shall affect or discharge any oversight responsibility 
        of the Secretary specifically provided for under this title or 
        other Federal law.
    ``(i)  Major Projects.--
            ``(1) In general.--A recipient of a grant for a project 
        under this section with an estimated total cost of $500,000,000 
        or more, and a recipient for such other projects as may be 
        identified by the Secretary, shall submit to the Secretary for 
        each project--
                    ``(A) a project management plan; and
                    ``(B) an annual financial plan.
            ``(2) Project management plan.--A project management plan 
        shall document--
                    ``(A) the procedures and processes that are in 
                effect to provide timely information to the project 
                decision makers to effectively manage the scope, costs, 
                schedules, and quality of, and the Federal requirements 
                applicable to, the project; and
                    ``(B) the role of the agency leadership and 
                management team in the delivery of the project.
            ``(3) Financial plan.--A financial plan shall--
                    ``(A) be based on detailed estimates of the cost to 
                complete the project; and
                    ``(B) provide for the annual submission of updates 
                to the Secretary that are based on reasonable 
                assumptions, as determined by the Secretary, of future 
                increases in the cost to complete the project.
    ``(j)  Other Projects.--A recipient of Federal financial assistance 
for a project under this section with an estimated total cost of 
$100,000,000 or more that is not covered by subsection (i) shall 
prepare an annual financial plan. Annual financial plans prepared under 
this subsection shall be made available to the Secretary for review 
upon the request of the Secretary.
    ``(k) Other Terms and Conditions.--The Secretary shall determine 
what additional grant terms and conditions are necessary and 
appropriate to meet the requirements of this section.
    ``(l) Regulations.--Not later than 1 year after the date of 
enactment of the American Infrastructure Investment Fund Act, the 
Secretary shall prescribe regulations to implement this section.
    ``(m) Applicant Defined.--In this subchapter, the term `applicant' 
includes a State, a political subdivision of a State, government-
sponsored authorities and corporations, and the District of Columbia.
    ``(n) Secretarial Oversight.--
            ``(1) Construction management contracts.--The Secretary may 
        use not more than 1 percent of amounts made available in a 
        fiscal year for capital projects under this subchapter to enter 
        into contracts to oversee the construction of such projects.
            ``(2) Compliance reviews.--The Secretary may use amounts 
        available under paragraph (1) to make contracts for safety, 
        procurement, management, and financial compliance reviews and 
        audits of a recipient of amounts under paragraph (1).
            ``(3) Federal costs.--The Federal Government shall pay the 
        entire cost of carrying out a contract under this subsection.
    ``(o) Compliance With Applicable Laws.--
            ``(1) Labor standards.--The provisions of subchapter IV of 
        chapter 31 of title 40, shall apply to funds made available 
        under this subchapter.
            ``(2) Planning and environmental laws.--A project that 
        receives financial assistance under this subchapter shall 
        comply with--
                    ``(A) the applicable planning and programming 
                requirements under sections 134 and 135 of title 23; 
                and
                    ``(B) all applicable environmental laws and 
                requirements, including the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the 
                National Historic Preservation Act of 1966 (16 U.S.C. 
                470 et seq.).
    ``(p) User of American Iron, Steel, and Manufactured Goods.--
            ``(1) In general.--None of the funds made available under 
        this subchapter 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.
            ``(2) Exception.--Paragraph (1) shall not apply in any case 
        or category of cases in which the Secretary finds that--
                    ``(A) applying paragraph (1) would be inconsistent 
                with the public interest;
                    ``(B) 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
                    ``(C) 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.
            ``(3) Publication of waivers.--If the Secretary determines 
        that it is necessary to waive the application of paragraph (1) 
        based on a finding under paragraph (2), 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.
            ``(4) International agreements.--This subsection shall be 
        applied in a manner consistent with United States obligations 
        under international agreements.
    ``(q) Performance Evaluation.--
            ``(1) Annual reports.--
                    ``(A) In general.--The Comptroller General of the 
                United States shall conduct an annual assessment to 
                evaluate the overall performance of grants made under 
                the program established under subsection (a).
                    ``(B) Dissemination.--The Comptroller General shall 
                submit a report containing the results of the 
                evaluation under subparagraph (A) to the Committee on 
                Commerce, Science, and Transportation of the Senate and 
                the Committee on Transportation and Infrastructure of 
                the House of Representatives.
            ``(2) Biannual report.--Not later than 1 year after the 
        date of enactment of the American Infrastructure Investment 
        Fund Act, and every 6 months thereafter, the Secretary of 
        Transportation shall submit a report to the congressional 
        committees set forth in paragraph (1)(B) that documents--
                    ``(A) the number of applications received under 
                this section;
                    ``(B) the status of such applications;
                    ``(C) the outcome of application evaluations; and
                    ``(D) the status of grants awarded under the 
                program established under subsection (a).
    ``(r) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $600,000,000 for each of fiscal years 
2014 and 2015 to carry out this section.''.
    (b) Conforming Amendment.--The table of sections for chapter 55 of 
title 49, United States Code, is amended by adding at the end the 
following:

                 ``subchapter iii--financial assistance

``5581. National infrastructure investment grants.''.
                                 <all>