[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 402 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 402
To facilitate efficient investments and financing of infrastructure
projects and new job creation through the establishment of a National
Infrastructure Development Bank, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2011
Ms. DeLauro (for herself, Mr. Ellison, Mr. Israel, Mr. Weiner, Mr.
Tierney, Mr. Van Hollen, Ms. Hirono, Ms. Bordallo, Ms. Lee of
California, Mr. Larson of Connecticut, Mr. Courtney, Ms. Berkley, Mr.
Himes, Mr. Boswell, Mr. Conyers, Mr. Murphy of Connecticut, Mr.
Yarmuth, Mr. Lujan, Ms. Sutton, Mr. Braley of Iowa, Mr. Lynch, Ms.
Richardson, Mr. Gonzalez, and Mr. Blumenauer) introduced the following
bill; which was referred to the Committee on Energy and Commerce, and
in addition to the Committees on Transportation and Infrastructure and
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To facilitate efficient investments and financing of infrastructure
projects and new job creation through the establishment of a National
Infrastructure Development Bank, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Infrastructure Development
Bank Act of 2011''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) According to the American Society of Civil Engineers,
the current condition of the infrastructure in the United
States earns a grade point average of D, and an estimated
$2,200,000,000,000 investment is needed over the next 5 years
to meet adequate conditions.
(2) According to the National Surface Transportation Policy
and Revenue Study Commission, $225,000,000,000 is needed
annually from all sources for the next 50 years to upgrade our
surface transportation system to a state of good repair and
create a more advanced system.
(3) The Environmental Protection Agency projects that--
(A) $334,000,000,000 is needed to invest in
infrastructure improvements over 20 years to ensure the
provision of safe water; and
(B) $202,500,000,000 is needed for publicly owned
wastewater systems-related infrastructure needs over 20
years.
(4) According to the Edison Electric Institute, the
electric power industry will need to invest $298,000,000,000 in
the Nation's transmission system by 2030 in order to maintain
reliable service.
(5) According to the American Council on Renewable Energy,
renewable energy could provide up to 635 gigawatts of new
electricity generating capacity by 2025, a substantial
contribution and potentially more than the Nation's need for
new capacity, according to the United States Energy Information
Administration.
(6) According to the United States Green Building Council,
United States buildings account for nearly 39 percent of
primary energy use and 38 percent of carbon emissions.
(7) According to the Organization for Economic Cooperation
and Development (OECD), the United States ranks 14th among OECD
nations in broadband access per 100 inhabitants.
(8) Although grant programs of the Government must continue
to play a central role in financing the transportation,
environment, energy, and telecommunications infrastructure
needs of the United States, current and foreseeable demands on
existing Federal, State, and local funding for infrastructure
expansion exceed the resources to support these programs by
margins wide enough to prompt serious concerns about the United
States' ability to sustain long-term economic development,
productivity, and international competitiveness.
(9) The capital markets, including central banks, pension
funds, financial institutions, sovereign wealth funds, and
insurance companies, have a growing interest in infrastructure
investment. The establishment of a United States Government-
owned institution that would provide this investment
opportunity through high quality bond issues that would be used
to finance qualifying infrastructure projects would attract
needed capital for United States infrastructure development.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions apply unless
the context requires otherwise:
(1) Bank.--The term ``Bank'' means the National
Infrastructure Development Bank established under section 4(a).
(2) Board.--The term ``Board'' means the National
Infrastructure Development Bank Board.
(3) Chief asset and liability management officer.--The term
``chief asset and liability management officer'' means the
chief individual responsible for coordinating the management of
assets and liabilities of the Bank.
(4) Chief compliance officer.--The term ``chief compliance
officer or CCO'' means the chief individual responsible for
overseeing and managing the compliance and regulatory affairs
issues of the Bank.
(5) Chief financial officer.--The term ``chief financial
officer or CFO'' means the chief individual responsible for
managing the financial risks, planning, and reporting of the
Bank.
(6) Chief loan origination officer.--The term ``chief loan
origination officer'' means the chief individual responsible
for the processing of new loans provided by the Bank.
(7) Chief operations officer.--The term ``chief operations
officer or COO'' means the chief individual responsible for
information technology and the day to day operations of the
Bank.
(8) Chief risk officer.--The term ``chief risk officer or
CRO'' means the chief individual responsible for managing
operational and compliance-related risks of the Bank.
(9) Chief treasury officer.--The term ``chief treasury
officer'' means the chief individual responsible for managing
the Bank's treasury operations.
(10) Development.--The terms ``development'' and
``develop'' mean, with respect to an infrastructure project,
any--
(A) preconstruction planning, feasibility review,
permitting, design work, and other preconstruction
activities; and
(B) construction, reconstruction, rehabilitation,
replacement, or expansion.
(11) Disadvantaged community.--The term ``disadvantaged
community'' means a community with a median household income of
less than 80 percent of the statewide median household income
for the State in which the community is located.
(12) Energy infrastructure project.--The term ``energy
infrastructure project'' means any project for energy
transmission, energy efficiency enhancement for buildings,
public housing, and schools, renewable energy, and energy
storage.
(13) Entity.--The term ``entity'' means an individual,
corporation, partnership (including a public-private
partnership), joint venture, trust, and a State or other
governmental entity, including a political subdivision or any
other instrumentality of a State or a revolving fund.
(14) Environmental infrastructure project.--The term
``environmental infrastructure project'' means any project for
the establishment, maintenance, or enhancement of any drinking
water and wastewater treatment facility, storm water management
system, dam, levee, open space management system, solid waste
disposal facility, hazardous waste facility, or industrial site
cleanup.
(15) Executive director.--The term ``executive director''
means the individual serving as the chief executive officer of
the Bank.
(16) General counsel.--The term ``general counsel'' means
the individual who serves as the chief lawyer for the Bank.
(17) Infrastructure project.--The term ``infrastructure
project'' means any energy, environmental, telecommunications,
or transportation infrastructure project.
(18) Public benefit bond.--The term ``public benefit bond''
means a bond issued with respect to an infrastructure project
in accordance with this Act if--
(A) the net spendable proceeds from the sale of the
issue may be used for expenditures incurred after the
date of issuance with respect to the project, subject
to the rules of the Bank;
(B) the bond issued by the Bank is in registered
form and meets the requirements of this Act and
otherwise applicable law; and
(C) the payment of principal with respect to the
bond is the obligation of the Bank.
(19) Public-private partnership.--The term ``public-private
partnership'' means any entity--
(A)(i) which is undertaking the development of all
or part of an infrastructure project, which will have a
public benefit, pursuant to requirements established in
one or more contracts between the entity and a State or
an instrumentality of a State; or
(ii) the activities of which, with respect to such
an infrastructure project, are subject to regulation by
a State or any instrumentality of a State; and
(B) which owns, leases, or operates, or will own,
lease, or operate, the project in whole or in part, and
at least one of the participants in the entity is a
nongovernmental entity.
(20) Revolving fund.--The term ``revolving fund'' means a
fund or program established by a State or a political
subdivision or other instrumentality of a State, the principal
activity of which is to make loans, commitments, or other
financial accommodation available for the development of one or
more categories of infrastructure projects.
(21) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the designee of the Secretary.
(22) Smart grid.--The term ``smart grid'' means a system
that provides for any of the smart grid functions set forth in
section 1306(d) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17386(d)).
(23) State.--The term ``State'' includes the District of
Columbia, Puerto Rico, Guam, American Samoa, the Virgin
Islands, the Commonwealth of Northern Mariana Islands, and any
other territory of the United States.
(24) Telecommunications infrastructure project.--The term
``telecommunications infrastructure project'' means any project
involving infrastructure required to provide communications by
wire or radio.
(25) Transportation infrastructure project.--The term
``transportation infrastructure project'' means any project for
the construction, maintenance, or enhancement of highways,
roads, bridges, transit and intermodal systems, inland
waterways, commercial ports, airports, high speed rail and
freight rail systems.
SEC. 4. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE DEVELOPMENT BANK.
(a) Establishment of National Infrastructure Development Bank.--The
National Infrastructure Development Bank is established as a wholly
owned Government corporation subject to chapter 91 of title 31, United
States Code (commonly known as the ``Government Corporation Control
Act''), except as otherwise provided in this Act.
(b) Responsibility of the Secretary.--The Secretary shall take such
action as may be necessary to assist in implementing the establishment
of the bank in accordance with this Act.
(c) Conforming Amendment.--Section 9101(3) of title 31, United
States Code, is amended by inserting after subparagraph (N) the
following:
``(O) the National Infrastructure Development
Bank.''.
SEC. 5. BOARD OF DIRECTORS.
(a) In General.--The Bank shall have a Board of Directors
consisting of 5 members appointed by the President by and with the
advice and consent of the Senate.
(b) Qualifications.--The directors of the Board shall include
individuals representing different regions of the United States and--
(1) 2 of the directors shall have public sector experience;
and
(2) 3 of the directors shall have private sector
experience.
(c) Chairperson and Vice Chairperson.--As designated at the time of
appointment, one of the directors of the Board shall be designated
chairperson of the Board by the President and one shall be designated
as vice chairperson of the Board by the President.
(d) Terms.--
(1) In general.--Except as provided in paragraph (2) and
subsection (f), each director shall be appointed for a term of
6 years.
(2) Initial staggered terms.--Of the initial members of the
Board--
(A) the chairperson and vice chairperson shall be
appointed for terms of 6 years;
(B) 1 shall be appointed for a term of 5 years;
(C) 1 shall be appointed for a term of 4 years; and
(D) 1 shall be appointed for a term of 3 years.
(e) Date of Initial Nominations.--The initial nominations by the
President for appointment of directors to the Board shall be made not
later than 60 days after the date of enactment of this Act.
(f) Vacancies.--
(1) In general.--A vacancy on the Board shall be filled in
the manner in which the original appointment was made.
(2) Appointment to replace during term.--Any director
appointed to fill a vacancy occurring before the expiration of
the term for which the director's predecessor was appointed
shall be appointed only for the remainder of the term.
(3) Duration.--A director may serve after the expiration of
that director's term until a successor has taken office.
(g) Quorum.--Three directors shall constitute a quorum.
(h) Reappointment.--A director of the Board appointed by the
President may be reappointed by the President in accordance with this
section.
(i) Per Diem Reimbursement.--Directors of the Board shall serve on
a part-time basis and shall receive a per diem when engaged in the
actual performance of Bank business, plus reasonable reimbursement for
travel, subsistence, and other necessary expenses incurred in the
performance of their duties.
(j) Limitations.--A director of the Board may not participate in
any review or decision affecting a project under consideration for
assistance under this Act if the director has or is affiliated with a
person who has an interest in such project.
(k) Powers and Limitations of the Board.--
(1) Powers.--In order to carry out the purposes of the Bank
as set forth in this Act, the Board shall be responsible for
monitoring and overseeing infrastructure projects and have the
following powers:
(A) To make senior and subordinated loans and
purchase senior and subordinated debt securities and
enter into a binding commitment to make any such loan
or purchase any such security, on such terms as the
Board may determine, in the Board's discretion, to be
appropriate, the proceeds of which are used to assist
in the financing or refinancing of the development of
one or more infrastructure projects.
(B) To issue and sell debt securities of the Bank
on such terms as the Board shall determine from time to
time.
(C) To issue public benefit bonds and to provide
financing to infrastructure projects from amounts made
available from the issuance of such bonds.
(D) To make loan guarantees.
(E) To make agreements and contracts with any
entity in furtherance of the business of the Bank.
(F) To borrow on the global capital market and lend
to regional, State, and local entities, and commercial
banks for the purpose of funding infrastructure
projects.
(G) To purchase in the open market any of the
Bank's outstanding obligations at any time and at any
price.
(H) To monitor and oversee infrastructure projects
financed, in whole or in part, by the Bank.
(I) To acquire, lease, pledge, exchange, and
dispose of real and personal property and otherwise
exercise all the usual incidents of ownership of
property to the extent the exercise of such powers are
appropriate to and consistent with the purposes of the
Bank.
(J) To sue and be sued in the Bank's corporate
capacity in any court of competent jurisdiction, except
that no attachment, injunction, or similar process, may
be issued against the property of the Bank or against
the Bank with respect to such property.
(K) To indemnify the directors and officers of the
Bank for liabilities arising out of the actions of the
directors and officers in such capacity, in accordance
with, and subject to the limitations contained in, this
Act.
(L) To serve as the primary liaison between the
Bank, Congress, the executive branch, and State and
local governments and to represent the Bank's
interests.
(M) To exercise all other lawful powers which are
necessary or appropriate to carry out, and are
consistent with, the purposes of the Bank.
(2) Limitations.--
(A) Issuance of debt security.--The Board may not
issue any debt security without the prior consent of
the Secretary.
(B) Issuance of voting security.--The Board may not
issue any voting security in the Bank to any entity
other than the Secretary.
(3) Actions consistent with self-supporting entity
status.--The Board shall conduct its business in a manner
consistent with the requirements of this section.
(4) Coordination with state and local regulatory
authority.--The provision of financial assistance by the Board
pursuant to this Act shall not be construed as--
(A) limiting the right of any State or political
subdivision or other instrumentality of a State to
approve or regulate rates of return on private equity
invested in a project; or
(B) otherwise superseding any State law or
regulation applicable to a project.
(5) Federal personnel requests.--The Board shall have the
power to request the detail, on a reimbursable basis, of
personnel from other Federal agencies with specific expertise
not available from within the Bank or elsewhere. The head of
any Federal agency may detail, on a reimbursable basis, any
personnel of such agency requested by the Board and shall not
withhold unreasonably the detail of any personnel requested by
the Board.
(l) Meetings.--
(1) Open to the public; notice.--All meetings of the Board
held to conduct the business of the Bank shall be open to the
public and shall be preceded by reasonable notice.
(2) Initial meeting.--The Board shall meet not later than
90 days after the date on which all directors of the Board are
first appointed and otherwise at the call of the Chairperson.
(3) Exception for closed meetings.--Pursuant to such rules
as the Board may establish through their bylaws, the directors
may close a meeting of the Board if, at the meeting, there is
likely to be disclosed information which could adversely affect
or lead to speculation relating to an infrastructure project
under consideration for assistance under this Act or in
financial or securities or commodities markets or institutions,
utilities, or real estate. The determination to close any
meeting of the Board shall be made in a meeting of the Board,
open to the public, and preceded by reasonable notice. The
Board shall prepare minutes of any meeting which is closed to
the public and make such minutes available as soon as the
considerations necessitating closing such meeting no longer
apply.
SEC. 6. EXECUTIVE COMMITTEE.
(a) In General.--The Board shall have an executive committee
consisting of 9 members, headed by the executive director of the Bank.
(b) Executive Director.--A majority of the Board shall have the
authority to appoint and reappoint the executive director.
(c) CEO.--The executive director shall be the chief executive
officer of the Bank, with such executive functions, powers, and duties
as may be prescribed by this Act, the bylaws of the Bank, or the Board.
(d) Other Executive Officers.--The Board shall appoint, remove, fix
the compensation, and define duties of 8 other executive officers to
serve on the Executive Committee as the--
(1) chief compliance officer;
(2) chief financial officer;
(3) chief asset and liability management officer;
(4) chief loan origination officer;
(5) chief operations officer;
(6) chief risk officer;
(7) chief treasury officer; and
(8) general counsel.
(e) Qualifications.--The executive director and other executive
officers shall have demonstrated experience and expertise in one or
more of the following:
(1) Transportation infrastructure.
(2) Environmental infrastructure.
(3) Energy infrastructure.
(4) Telecommunications infrastructure.
(5) Economic development.
(6) Workforce development.
(7) Public health.
(8) Private or public finance.
(f) Duties.--In order to carry out the purposes of the Bank as set
forth in this Act, the executive committee shall--
(1) establish disclosure and application procedures for
entities nominating projects for assistance under this Act;
(2) accept, for consideration, project proposals relating
to the development of infrastructure projects, which meet the
basic criteria established by the Board, and which are
submitted by an entity;
(3) provide recommendations to the Board and place project
proposals accepted by the executive committee on a list for
consideration for financial assistance from the Board; and
(4) provide technical assistance to entities receiving
financing from the Bank and otherwise implement decisions of
the Board.
(g) Vacancy.--A vacancy in the position of executive director shall
be filled in the manner in which the original appointment was made.
(h) Compensation.--The compensation of the executive director and
other executive officers of the executive committee shall be determined
by the Board.
(i) Removal.--The executive director and other executive officers
may be removed at the discretion of a majority of the Board.
(j) Term.--The executive director and other executive officers
shall serve a 6-year term and may be reappointed in accordance with
this section.
(k) Limitations.--The executive director and other executive
officers shall not--
(1) hold any other public office;
(2) have any interest in an infrastructure project
considered by the Board;
(3) have any interest in an investment institution,
commercial bank, or other entity seeking financial assistance
for any infrastructure project from the Bank; and
(4) have any such interest during the 2-year period
beginning on the date such officer ceases to serve in such
capacity.
SEC. 7. RISK MANAGEMENT COMMITTEE.
(a) Establishment of Risk Management Committee.--The Bank shall
establish a risk management committee consisting of 5 members, headed
by the chief risk officer.
(b) Appointments.--A majority of the Board shall have the authority
to appoint and reappoint the CRO of the Bank.
(c) Functions; Duties.--
(1) In general.--The CRO shall have such functions, powers,
and duties as may be prescribed by one or more of the
following: This Act, the bylaws of the Bank, and the Board. The
CRO shall report directly to the Board.
(2) Risk management duties.--In order to carry out the
purposes of this Act, the risk management committee shall--
(A) create financial, credit, and operational risk
management guidelines and policies to be adhered to by
the Bank;
(B) set guidelines to ensure diversification of
lending activities by both region and infrastructure
project type;
(C) create conforming standards for infrastructure
finance securities;
(D) monitor financial, credit and operational
exposure of the Bank; and
(E) provide financial recommendations to the Board.
(d) Other Risk Management Officers.--The Board shall appoint,
remove, fix the compensation, and define the duties of 4 other risk
management officers to serve on the risk management committee.
(e) Qualifications.--The CRO and other risk management officers
shall have demonstrated experience and expertise in one or more of the
following:
(1) Treasury and asset and liability management.
(2) Investment regulations.
(3) Insurance.
(4) Credit risk management and credit evaluations.
(5) Related disciplines.
(f) Vacancy.--A vacancy in the position of CRO or any other risk
management officer shall be filled in the manner in which the original
appointment was made.
(g) Compensation.--The compensation of the CRO and other risk
management officers shall be determined by the Board.
(h) Removal.--The CRO and any other risk management officers may be
removed at the discretion of a majority of the Board.
(i) Term.--The CRO and other risk management officers shall serve a
6-year term and may be reappointed in accordance with this section.
(j) Limitations.--The CRO and other risk management officers shall
not--
(1) hold any other public office;
(2) have any interest in an infrastructure project
considered by the Board;
(3) have any interest in an investment institution,
commercial bank, or other entity seeking financial assistance
for any infrastructure project from the Bank; and
(4) have any such interest during the 2-year period
beginning on the date such officer ceases to serve in such
capacity.
SEC. 8. AUDIT COMMITTEE.
(a) In General.--The Bank shall have an audit committee consisting
of 5 members, headed by the chief compliance officer of the Bank.
(b) Appointments.--A majority of the Board shall have the authority
to appoint and reappoint the CCO of the Bank.
(c) Functions; Duties.--The CCO shall have such functions, powers,
and duties as may be prescribed by one or more of the following: This
Act, the bylaws of the Bank, and the Board. The CCO shall report
directly to the Board.
(d) Audit Duties.--In order to carry out the purposes of the Bank
under this Act, the audit committee shall--
(1) provide internal controls and internal auditing
activities for the Bank;
(2) maintain responsibility for the accounting activities
of the Bank;
(3) issue financial reports of the Bank; and
(4) complete reports with outside auditors and public
accountants appointed by the Board.
(e) Other Audit Officers.--The Board shall appoint, remove, fix the
compensation, and define the duties of 4 other audit officers to serve
on the audit committee.
(f) Qualifications.--The CCO and other audit officers shall have
demonstrated experience and expertise in one or more of the following:
(1) Internal auditing.
(2) Internal investigations.
(3) Accounting practices.
(4) Financing practices.
(g) Vacancy.--A vacancy in the position of CCO or any other audit
officer shall be filled in the manner in which the original appointment
was made.
(h) Compensation.--The compensation of the CCO and other audit
officers shall be determined by the Board.
(i) Removal.--The CCO and other audit officers may be removed at
the discretion of a majority of the Board.
(j) Term.--The CCO and other audit officers shall serve a 6-year
term and may be reappointed in accordance with this section.
(k) Limitations.--The CCO and other audit officers shall not--
(1) hold any other public office;
(2) have any interest in an infrastructure project
considered by the Board;
(3) have any interest in an investment institution,
commercial bank, or other entity seeking financial assistance
for any infrastructure project from the Bank; and
(4) have any such interest during the 2-year period
beginning on the date such officer ceases to serve in such
capacity.
SEC. 9. PERSONNEL.
The chairperson of the Board, executive director, chief risk
officer, and chief compliance officer shall appoint, remove, fix the
compensation of, and define the duties of such qualified personnel to
serve under the Board, executive committee, risk management committee,
or audit committee, as the case may be, as necessary and prescribed by
one or more of the following: This Act, the bylaws of the Bank, and the
Board.
SEC. 10. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM BANK.
(a) In General.--No financial assistance shall be available under
this Act from the Bank unless the applicant for such assistance has
demonstrated to the satisfaction of the Board that the project for
which such assistance is being sought meets--
(1) the requirements of this Act; and
(2) any criteria established in accordance with this Act by
the Board.
(b) Establishment of Project Criteria.--
(1) In general.--Consistent with the requirements of
subsections (c) and (d), the Board shall establish--
(A) criteria for determining eligibility for
financial assistance under this Act;
(B) disclosure and application procedures to be
followed by entities to nominate projects for
assistance under this Act; and
(C) such other criteria as the Board may consider
to be appropriate for purposes of carrying out this
Act.
(2) Factors to be taken into account.--
(A) In general.--The Bank shall conduct an analysis
that takes into account the economic, environmental,
social benefits, and costs of each project under
consideration for financial assistance under this Act,
prioritizing projects that contribute to economic
growth, lead to job creation, and are of regional or
national significance.
(B) Criteria.--The criteria established pursuant to
paragraph (1)(A) shall provide for the consideration of
the following factors in considering eligibility for
financial assistance under this Act:
(i) The means by which development of the
infrastructure project under consideration is
being financed, including--
(I) the terms and conditions and
financial structure of the proposed
financing;
(II) the financial assumptions and
projections on which the project is
based; and
(III) the extent to which the
infrastructure project maximizes
investment from other sources.
(ii) The likelihood that the provision of
assistance by the Bank will cause such
development to proceed more promptly and with
lower costs for financing than would be the
case without such assistance.
(iii) The extent to which the provision of
assistance by the Bank maximizes the level of
private investment in the infrastructure
project while providing a public benefit.
(c) Factors for Specific Types of Projects.--
(1) Transportation infrastructure projects.--For any
transportation infrastructure project, the Board shall consider
the following:
(A) Job creation, including workforce development
for women and minorities, responsible employment
practices, and quality job training opportunities.
(B) Reduction in carbon emissions.
(C) Reduction in surface and air traffic
congestion.
(D) Poverty and inequality reduction through
targeted training and employment opportunities for low-
income workers.
(E) Use of smart tolling, such as vehicle miles
traveled and congestion pricing, for highway, road, and
bridge projects.
(F) Public health benefits.
(2) Environmental infrastructure project.--For any
environmental infrastructure project, the Board shall consider
the following:
(A) Public health benefits.
(B) Pollution reductions.
(C) Job creation, including workforce development
for women and minorities, responsible employment
practices, and quality job training opportunities.
(D) Poverty and inequality reduction through
targeted training and employment opportunities for low-
income workers.
(3) Energy infrastructure project.--For any energy
infrastructure project, the Board shall consider the following:
(A) Job creation, including workforce development
for women and minorities, responsible employment
practices, and quality job training opportunities.
(B) Poverty and inequality reduction through
targeted training and employment opportunities for low-
income workers.
(C) Reduction in carbon emissions.
(D) Expanded use of renewable energy.
(E) Development of a smart grid.
(F) Energy efficient building, housing, and school
modernization.
(G) In any case in which the project is also a
public housing project--
(i) improvement of the physical shape and
layout;
(ii) environmental improvement; and
(iii) mobility improvements for residents.
(H) Public health benefits.
(4) Telecommunications.--For any telecommunications
project, the Board shall consider the following:
(A) The extent to which assistance expands or
improves broadband and wireless services in rural and
disadvantaged communities.
(B) Poverty and inequality reduction through
targeted training and employment opportunities for low-
income workers.
(C) Job creation, including work force development
for women and minorities, responsible employment
practices, and quality job training opportunities.
(d) Consideration of Project Proposals.--
(1) Participation by other agency personnel.--Consideration
of projects by the executive committee and the Board shall be
conducted with personnel on detail to the Bank from relevant
Federal agencies from among individuals who are familiar with
and experienced in the selection criteria for competitive
projects.
(2) Fees.--A fee may be charged for the review of any
project proposal in such amount as maybe considered appropriate
by the executive committee to cover the cost of such review.
(e) Discretion of Board.--Consistent with other provisions of this
Act, any determination of the Board to provide assistance to any
project, and the manner in which such assistance is provided, including
the terms, conditions, fees, and charges shall be at the sole
discretion of the Board.
(f) State and Local Permits Required.--The provision of assistance
by the Board in accordance with this Act shall not be deemed to relieve
any recipient of assistance or the related project of any obligation to
obtain required State and local permits and approvals.
(g) Annual Report.--An entity receiving assistance from the Board
shall make annual reports to the Board on the use of any such
assistance, compliance with the criteria set forth in this section, and
a disclosure of all entities with a development, ownership, or
operational interest in a project assisted or proposed to be assisted
under this Act.
SEC. 11. EXEMPTION FROM LOCAL TAXATION.
All notes, debentures, bonds or other such obligations issued by
the Bank, and the interest on or credits with respect to such bonds or
other obligations, shall not be subject to taxation by any State,
county, municipality, or local taxing authority.
SEC. 12. STATUS AND APPLICABILITY OF CERTAIN FEDERAL LAWS; NO FULL
FAITH AND CREDIT.
(a) Budgeting and Auditors Practices.--The Bank shall comply with
all Federal laws regulating the budgetary and auditing practices of a
government corporation, except as otherwise provided in this Act.
(b) No Full Faith and Credit of the United States.--Obligations of
the Bank shall not be obligations of, or guaranteed as to principal or
interest by, the United States or any agency of the United States and
the obligations shall so plainly state.
(c) Effect of and Exemptions From Other Laws.--
(1) Exempt securities.--All debt securities and other
obligations issued by the Bank pursuant to this Act shall be
deemed to be exempt securities within the meaning of laws
administered by the Securities and Exchange Commission to the
same extent as securities which are direct obligations of, or
obligations fully guaranteed as to principal or interest by,
the United States.
(2) Open market operations and state tax exempt status.--
The obligations of the Bank shall be deemed to be obligations
of the United States for the purposes of the provision
designated as (b)(2) of the 2nd undesignated paragraph of
section 14 of the Federal Reserve Act (12 U.S.C. 355) and
section 3124 of title 31, United States Code.
(3) No priority as a federal claim.--The priority
established in favor of the United States by section 3713 of
title 31, United States Code, shall not apply with respect to
any indebtedness of the Bank.
(d) Federal Reserve Banks as Depositories, Custodians, and Fiscal
Agents.--The Federal reserve banks may act as depositaries for, or
custodians or fiscal agents of, the Bank.
(e) Access to Book-Entry System.--The Secretary may authorize the
Bank to use the book-entry system of the Federal reserve system.
SEC. 13. COMPLIANCE WITH DAVIS-BACON ACT.
All laborers and mechanics employed by contractors and
subcontractors on projects funded directly by or assisted in whole or
in part by and through the Bank pursuant to this Act shall be paid
wages at rates not less than those prevailing on projects of a
character similar in the locality as determined by the Secretary of
Labor in accordance with subchapter IV of chapter 31 of part A of title
40, United States Code. With respect to the labor standards specified
in this section, the Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950 (64
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States
Code.
SEC. 14. APPLICABILITY OF CERTAIN STATE LAWS.
The receipt by any entity of any assistance under this Act,
directly or indirectly, and any financial assistance provided by any
governmental entity in connection with such assistance under this Act
shall be valid and lawful notwithstanding any State or local
restrictions regarding extensions of credit or other benefits to
private persons or entities, or other similar restrictions.
SEC. 15. AUDITS; REPORTS TO PRESIDENT AND CONGRESS.
(a) Accounting.--The books of account of the Bank shall be
maintained in accordance with generally accepted accounting principles
and shall be subject to an annual audit by independent public
accountants appointed by the Board and of nationally recognized
standing.
(b) Reports.--
(1) Board.--The Board shall submit to the President and
Congress, within 90 days after the last day of each fiscal
year, a complete and detailed report with respect to the
preceding fiscal year, setting forth--
(A) a summary of the Bank's operations, for such
preceding fiscal year;
(B) a schedule of the Bank's obligations and
capital securities outstanding at the end of such
preceding fiscal year, with a statement of the amounts
issued and redeemed or paid during such preceding
fiscal year; and
(C) the status of projects receiving funding or
other assistance pursuant to this Act, including
disclosure of all entities with a development,
ownership, or operational interest in such projects.
(2) GAO.--Not later than 5 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report evaluating activities
of the Bank for the fiscal years covered by the report that
includes an assessment of the impact and benefits of each
funded project, including a review of how effectively each
project accomplished the goals prioritized by the Bank's
project criteria.
(c) Books and Records.--
(1) In general.--The Bank shall maintain adequate books and
records to support the financial transactions of the Bank with
a description of financial transactions and infrastructure
projects receiving funding, and the amount of funding for each
project maintained on a publically accessible database.
(2) Audits by the secretary and gao.--The books and records
of the Bank shall be maintained in accordance with recommended
accounting practices and shall be open to inspection by the
Secretary and the Comptroller General of the United States.
SEC. 16. CAPITALIZATION OF BANK.
(a) Authorization of Appropriation.--There is authorized to be
appropriated to the Secretary for purchase of the shares of the Bank
$5,000,000,000 for each of fiscal years 2012, 2013, 2014, 2015, and
2016 with the aggregate representing 10 percent of the total subscribed
capital of the Bank.
(b) Callable Capital.--Of the total subscribed capital of the Bank,
90 percent shall be callable capital subject to call from the Secretary
only as and when required by the Bank to meet its obligations on
borrowing of funds for inclusion in its ordinary capital resources or
guarantees chargeable to such resources.
(c) Outstanding Loans.--At any time, the aggregate amount
outstanding of bonds issued by the Bank shall not exceed 250 percent of
its total subscribed capital.
SEC. 17. SUNSET.
The Bank shall cease to exist 15 years after the date of enactment
of this Act.
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