[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1436 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 1436
To provide $50,000,000,000 in new transportation infrastructure funding
through bonding to empower States and local governments to complete
significant infrastructure projects across all modes of transportation,
including roads, bridges, rail and transit systems, ports, and inland
waterways, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 28, 2011
Mr. Wyden (for himself, Mr. Hoeven, and Mr. Begich) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To provide $50,000,000,000 in new transportation infrastructure funding
through bonding to empower States and local governments to complete
significant infrastructure projects across all modes of transportation,
including roads, bridges, rail and transit systems, ports, and inland
waterways, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Transportation and
Regional Infrastructure Project Bonds Act of 2011'' or ``TRIP Bonds
Act''.
(b) References to Internal Revenue Code of 1986.--Except as
otherwise expressly provided, whenever in this Act an amendment or
repeal is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue Code of
1986.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Our Nation's highways, transit systems, railroads,
ports, and inland waterways drive our economy, enabling all
industries to achieve growth and productivity that makes
America strong and prosperous.
(2) The establishment, maintenance, and improvement of the
national transportation network is a national priority, for
economic, environmental, energy, security, and other reasons.
(3) The ability to move people and goods is critical to
maintaining State, metropolitan, rural, and local economies.
(4) The construction of infrastructure requires the skills
of numerous occupations, including those in the contracting,
engineering, planning and design, materials supply,
manufacturing, distribution, and safety industries.
(5) Investing in transportation infrastructure creates
long-term capital assets for the Nation that will help the
United States address its enormous infrastructure needs and
improve its economic productivity.
(6) Investment in transportation infrastructure creates
jobs and spurs economic activity to put people back to work and
stimulate the economy.
(7) Every billion dollars in transportation investment has
the potential to create up to 30,000 jobs.
(8) Every dollar invested in the Nation's transportation
infrastructure yields at least $5.70 in economic benefits
because of reduced delays, improved safety, and reduced vehicle
operating costs.
(9) Numerous experts have noted that the estimated cost to
maintain and improve our Nation's highways, bridges, and other
critical transportation infrastructure significantly exceeds
what is currently being provided by all levels of government.
(b) Purpose.--The purpose of this Act is to provide financing for
additional transportation infrastructure capital investments.
SEC. 3. CREDIT TO HOLDERS OF TRIP BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 54G. TRIP BONDS.
``(a) TRIP Bond.--For purposes of this subpart, the term `TRIP
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for expenditures incurred after the date
of the enactment of this section for 1 or more qualified
projects pursuant to an allocation of such proceeds to such
project or projects by a State infrastructure bank,
``(2) the bond is issued by a State infrastructure bank and
is in registered form (within the meaning of section 149(a)),
``(3) the State infrastructure bank designates such bond
for purposes of this section,
``(4) the term of each bond which is part of such issue
does not exceed 30 years,
``(5) the issue meets the requirements of subsection (e),
``(6) the State infrastructure bank certifies that it meets
the State contribution requirement of subsection (h) with
respect to such project, as in effect on the date of issuance,
and
``(7) the State infrastructure bank certifies the State
meets the requirement described in subsection (i).
``(b) Qualified Project.--For purposes of this section, the term
`qualified project' means the capital improvements to any
transportation infrastructure project of any governmental unit or other
person, including roads, bridges, rail and transit systems, ports, and
inland waterways proposed and approved by a State infrastructure bank,
but does not include costs of operations or maintenance with respect to
such project.
``(c) Applicable Credit Rate.--In lieu of section 54A(b)(3), for
purposes of section 54A(b)(2), the applicable credit rate with respect
to an issue under this section is the rate equal to an average market
yield (as of the day before the date of sale of the issue) on
outstanding long-term corporate debt obligations (determined in such
manner as the Secretary prescribes).
``(d) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any State
infrastructure bank shall not exceed the TRIP bond limitation
amount allocated to such bank under paragraph (3).
``(2) National limitation amount.--There is a TRIP bond
limitation amount for each calendar year. Such limitation
amount is--
``(A) $5,000,000,000 for 2011,
``(B) $5,000,000,000 for 2012,
``(C) $10,000,000,000 for 2013,
``(D) $10,000,000,000 for 2014,
``(E) $10,000,000,000 for 2015,
``(F) $10,000,000,000 for 2016, and
``(G) except as provided in paragraph (4), zero
thereafter.
``(3) Allocations to states.--The TRIP bond limitation
amount for each calendar year shall be allocated by the
Secretary among the States such that each State is allocated 2
percent of such amount.
``(4) Carryover of unused issuance limitation.--If for any
calendar year the TRIP bond limitation amount under paragraph
(2) exceeds the amount of TRIP bonds issued during such year,
such excess shall be carried forward to 1 or more succeeding
calendar years as an addition to the TRIP bond limitation
amount under paragraph (2) for such succeeding calendar year
and until used by issuance of TRIP bonds.
``(e) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the State infrastructure bank reasonably expects--
``(A) at least 100 percent of the available project
proceeds of such issue are to be spent for 1 or more
qualified projects within the 5-year expenditure period
beginning on such date,
``(B) to incur a binding commitment with a third
party to spend at least 10 percent of the proceeds of
such issue, or to commence construction, with respect
to such projects within the 12-month period beginning
on such date, and
``(C) to proceed with due diligence to complete
such projects and to spend the proceeds of such issue.
``(2) Rules regarding continuing compliance after 5-year
determination.--To the extent that less than 100 percent of the
available project proceeds of such issue are expended by the
close of the 5-year expenditure period beginning on the date of
issuance, the State infrastructure bank shall redeem all of the
nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified
bonds required to be redeemed shall be determined in the same
manner as under section 142.
``(f) Recapture of Portion of Credit Where Cessation of
Compliance.--If any bond which when issued purported to be a TRIP bond
ceases to be such a bond, the State infrastructure bank shall pay to
the United States (at the time required by the Secretary) an amount
equal to the sum of--
``(1) the aggregate of the credits allowable under section
54A with respect to such bond (determined without regard to
section 54A(c)) for taxable years ending during the calendar
year in which such cessation occurs and each succeeding
calendar year ending with the calendar year in which such bond
is redeemed by the bank, and
``(2) interest at the underpayment rate under section 6621
on the amount determined under paragraph (1) for each calendar
year for the period beginning on the first day of such calendar
year.
``(g) TRIP Bonds Trust Account.--
``(1) In general.--The following amounts shall be held in a
TRIP Bonds Trust Account:
``(A) The proceeds from the sale of all bonds
issued under this section.
``(B) The investment earnings on proceeds from the
sale of such bonds.
``(C) The amount described in paragraph (2).
``(D) Any earnings on any amounts described in
subparagraph (A), (B), or (C).
``(2) Appropriation of revenues.--There is hereby
transferred to the TRIP Bonds Trust Account an amount equal to
the lesser of--
``(A) the revenues resulting from the imposition of
fees pursuant to section 13031 of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c) for fiscal years beginning after September 30,
2011, or
``(B) $50,000,000,000.
``(3) Use of funds.--Amounts in the TRIP Bonds Trust
Account may be used only to pay costs of qualified projects and
redeem TRIP bonds, except that amounts withdrawn from the TRIP
Bonds Trust Account to pay costs of qualified projects may not
exceed the proceeds from the sale of TRIP bonds described in
subsection (a)(1).
``(4) Use of remaining funds in trip bonds trust account.--
Upon the redemption of all TRIP bonds issued under this
section, any remaining amounts in the TRIP Bonds Trust Account
shall be available to pay the costs of any qualified project.
``(5) Applicability of federal law.--The requirements of
any Federal law, including titles 23, 40, and 49 of the United
States Code, which would otherwise apply to projects to which
the United States is a party or to funds made available under
such law and projects assisted with those funds shall apply
to--
``(A) funds made available under the TRIP Bonds
Trust Account for similar qualified projects, including
contributions required under subsection (h), and
``(B) similar qualified projects assisted through
the use of such funds.
``(6) Investment.--Subject to subsections (e) and (f), it
shall be the duty of the Secretary to invest in investment
grade obligations such portion of the TRIP Bonds Trust Account
as is not, in the judgment of the Secretary, required to meet
current withdrawals. To the maximum extent practicable,
investments should be made in securities that support
infrastructure investment at the State and local level.
``(h) State Contribution Requirements.--
``(1) In general.--For purposes of subsection (a)(6), the
State contribution requirement of this subsection is met with
respect to any qualified project if the Secretary has received
from 1 or more States, not later than the date of issuance of
the bond, written commitments for matching contributions of not
less than 20 percent (or such smaller percentage as determined
under title 23, United States Code, for such State) of the cost
of the qualified project.
``(2) State matching contributions may not include federal
funds.--For purposes of this subsection, State matching
contributions shall not be derived, directly or indirectly,
from Federal funds, including any transfers from the Highway
Trust Fund under section 9503.
``(i) Utilization of Updated Construction Technology for Qualified
Projects.--For purposes of subsection (a)(7), the requirement of this
subsection is met if the appropriate State agency relating to the
qualified project is utilizing updated construction technologies.
``(j) Other Definitions and Special Rules.--For purposes of this
section--
``(1) State infrastructure bank.--
``(A) In general.--The term `State infrastructure
bank' means a State infrastructure bank established
under section 610 of title 23, United States Code, and
includes a joint venture among 2 or more State
infrastructure banks.
``(B) Special authority.--Notwithstanding any other
provision of law, a State infrastructure bank shall be
authorized to perform any of the functions necessary to
carry out the purposes of this section, including the
making of direct grants to qualified projects from
available project proceeds of TRIP bonds issued by such
bank.
``(2) Credits may be transferred.--Nothing in any law or
rule of law shall be construed to limit the transferability of
the credit or bond allowed by this section through sale and
repurchase agreements.
``(3) Prohibition on use of highway trust fund.--
Notwithstanding any other provision of law, no funds derived
from the Highway Trust Fund established under section 9503
shall be used to pay for credits under this section.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``or'' at the end of subparagraph
(D),
(B) by inserting ``or'' at the end of subparagraph
(E),
(C) by inserting after subparagraph (E) the
following new subparagraph:
``(F) a TRIP bond,'', and
(D) by inserting ``(paragraphs (3), (4), and (6),
in the case of a TRIP bond)'' after ``and (6)''.
(2) Subparagraph (C) of section 54A(d)(2) of such Code is
amended by striking ``and'' at the end of clause (iv), by
striking the period at the end of clause (v) and inserting ``,
and'', and by adding at the end the following new clause:
``(vi) in the case of a TRIP bond, a
purpose specified in section 54G(a)(1).''.
(c) Clerical Amendment.--The table of sections for subpart I of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 54G. TRIP bonds.''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 4. ADDITIONAL REVENUES THROUGH EXTENSION OF CUSTOMS USER FEES.
Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)), as amended by the
Omnibus Trade Act of 2010, is amended--
(1) by striking ``January 7, 2020'' in subparagraph (A) and
inserting ``January 7, 2048'', and
(2) by striking ``January 14, 2020'' in subparagraph (B)(i)
and inserting ``January 14, 2048''.
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