H.R.402 - National Infrastructure Development Bank Act of 2011
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.
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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.CommentsClose CommentsPermalink
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 concernedCommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
SEC. 2. FINDINGS.
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 3. DEFINITIONS.
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(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.CommentsClose CommentsPermalink
(24) TELECOMMUNICATIONS INFRASTRUCTURE PROJECT- The term ‘telecommunications infrastructure project’ means any project involving infrastructure required to provide communications by wire or radio.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 5. BOARD OF DIRECTORS.
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 6. EXECUTIVE COMMITTEE.
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
SEC. 7. RISK MANAGEMENT COMMITTEE.
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 8. AUDIT COMMITTEE.
(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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(3) NO PRIORITY AS A FEDERAL CLAIM- The priority established in favor of the United States by
(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.CommentsClose CommentsPermalink
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
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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink