[Congressional Record Volume 161, Number 66 (Monday, May 4, 2015)]
[Senate]
[Pages S2601-S2602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Mr. Hoeven):
  S. 1186. A bill to amend the Internal Revenue Code of 1986 to provide 
for Move America bonds and to allow such bonds to be converted into tax 
credits to support public-private partnerships; to the Committee on 
Finance.
  Mr. WYDEN. Mr. President, modern transportation infrastructure is a 
critical building block to ensure that the U.S. economy is in a 
position for long term growth and prosperity. It creates jobs, draws 
investment and supports overall global competitiveness. With the 
deadline for the Highway Trust Fund reauthorization looming just a 
month away, we are faced with the reality that our crumbling 
transportation systems simply are not up to the job.
  Our aging infrastructure impacts everyone. Every day, Americans leave 
their homes to commute to work or school only to be faced with more 
than just snarled traffic, but roads in dire need of repair. More than 
one-fifth of U.S. roads are in poor condition, with nearly one-half 
trillion dollars in needed repairs across the country over the next 
decade.
  U.S. ports, a critical economic doorway, are struggling under the 
weight of increased cargo traffic, leading to congestion and slowing 
exports. They now require nearly $30 billion in landside investment 
alone to keep up with the general demands they are under. Our national 
infrastructure is in a clear state of decline, demanding $3.6 trillion 
in total investment by 2020, according to the American Society of Civil 
Engineers.
  For one of the largest economies in the world known for its strength 
and leadership, we are falling behind other countries. Our 
infrastructure spending has continued to decline since 1960. It is now 
at less than two percent of GDP annually. That falls behind China's 
nine percent and Europe's five. Meanwhile, our population continues to 
grow, placing new demands on our aging transportation system.
  How do we get back on track and safeguard the health of our 
transportation infrastructure? The first step is for Congress to ensure 
the solvency of the trust funds for highways, transit, airports, ports, 
and waterways. Critical infrastructure projects demand long term 
planning and certainty, not a continual cycle of start-stop efforts. We 
must aim for a long-term, bipartisan solution so that every year states 
don't have to put projects on hold for fear of running out of funds.
  Second, its time Congress looked beyond Washington and bring the 
private sector to the table to spur new financing partnerships that 
support our infrastructure needs.
  There is an untapped opportunity here: Standard and Poor's estimates 
that private investors could provide more than $100 billion in 
infrastructure investment each year. Public-private partnerships, P3s, 
are unique in that they offer upfront capital financing, along with the 
transfer of risk to the private partner, allowing for more efficient 
project design, construction and maintenance. P3s have been successful 
in the U.S., as well as other countries around the world.
  Recognizing this pressing need and opportunity, today Senator Hoeven 
and I are introducing the Move America program. Move America is 
designed to strengthen our transportation system by making it easier 
for the states to put together P3s and draw private investment. This 
unique, bipartisan driven proposal complements federal funding efforts, 
by creating cheaper and more effective financing tools to expand 
investment in roads, bridges, transit, ports, rail, and airports.
  Move America expands tax exempt private activity bonds and creates a 
new infrastructure tax credit, giving stakeholders significant 
flexibility to pursue infrastructure projects that are badly needed in 
states and localities. And these tools are available for use regardless 
of who owns the project--government or private groups--making 
financing, management, and leasing arrangements much simpler. The bonds 
also exempt the interest income from the alternative minimum tax, 
making it an attractive proposal to investors.
  For states that are hesitant to issue more debt, or that are looking 
to leverage more private equity, Move America credits would be 
available for the state to attract equity investors for infrastructure 
projects. The credits are available to the extent there is at least 
twice as much private investment in the project. This one-to-one match 
leverages additional equity investment at a lower cost to states and 
cities, lowering their capital costs or allowing them to reduce tolls 
or other revenues required for the project.
  Critical transportation projects come to life in less time and at 
less cost to taxpayers. Americans can travel on safer footing. The 
private sector finds a new investment opportunity.
  Strengthening our country's transportation infrastructure shouldn't 
be a political issue. It is time we come together and create a path to 
move America forward and build the 21st century infrastructure that our 
country deserves.

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