I 

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. LUJA ́N, 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


jbell on DSKDVH8Z91PROD with BILLS
2 

•HR 402 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Infrastruc3 ture Development Bank Act of 2011’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds the following: 

6 (1) According to the American Society of Civil 

7 Engineers, the current condition of the infrastruc8 ture in the United States earns a grade point aver9 age of D, and an estimated $2,200,000,000,000 in10 vestment is needed over the next 5 years to meet 

11 adequate conditions. 

12 (2) According to the National Surface Trans13 portation Policy and Revenue Study Commission, 

14 $225,000,000,000 is needed annually from all 

15 sources for the next 50 years to upgrade our surface 

16 transportation system to a state of good repair and 

17 create a more advanced system. 

18 (3) The Environmental Protection Agency 

19 projects that— 

20 (A) $334,000,000,000 is needed to invest 

21 in infrastructure improvements over 20 years to 

22 ensure the provision of safe water; and 

23 (B) $202,500,000,000 is needed for pub24 licly owned wastewater systems-related infra25 structure needs over 20 years. 


jbell on DSKDVH8Z91PROD with BILLS
3 

•HR 402 IH

1 (4) According to the Edison Electric Institute, 

2 the electric power industry will need to invest 

3 $298,000,000,000 in the Nation’s transmission sys4 tem by 2030 in order to maintain reliable service. 

5 (5) According to the American Council on Re6 newable Energy, renewable energy could provide up 

7 to 635 gigawatts of new electricity generating capac8 ity by 2025, a substantial contribution and poten9 tially more than the Nation’s need for new capacity, 

10 according to the United States Energy Information 

11 Administration. 

12 (6) According to the United States Green 

13 Building Council, United States buildings account 

14 for nearly 39 percent of primary energy use and 38 

15 percent of carbon emissions. 

16 (7) According to the Organization for Economic 

17 Cooperation and Development (OECD), the United 

18 States ranks 14th among OECD nations in 

19 broadband access per 100 inhabitants. 

20 (8) Although grant programs of the Govern21 ment must continue to play a central role in financ22 ing the transportation, environment, energy, and 

23 telecommunications infrastructure needs of the 

24 United States, current and foreseeable demands on 

25 existing Federal, State, and local funding for infraVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
4 

•HR 402 IH

1 structure expansion exceed the resources to support 

2 these programs by margins wide enough to prompt 

3 serious concerns about the United States’ ability to 

4 sustain long-term economic development, produc5 tivity, and international competitiveness. 

6 (9) The capital markets, including central 

7 banks, pension funds, financial institutions, sov8 ereign wealth funds, and insurance companies, have 

9 a growing interest in infrastructure investment. The 

10 establishment of a United States Government-owned 

11 institution that would provide this investment oppor12 tunity through high quality bond issues that would 

13 be used to finance qualifying infrastructure projects 

14 would attract needed capital for United States infra15 structure development. 

16 SEC. 3. DEFINITIONS. 

17 For purposes of this Act, the following definitions 

18 apply unless the context requires otherwise: 

19 (1) BANK.—The term ‘‘Bank’’ means the Na20 tional Infrastructure Development Bank established 

21 under section 4(a). 

22 (2) BOARD.—The term ‘‘Board’’ means the Na23 tional Infrastructure Development Bank Board. 

24 (3) CHIEF ASSET AND LIABILITY MANAGEMENT

25 OFFICER.—The term ‘‘chief asset and liability manVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
5 

•HR 402 IH

1 agement officer’’ means the chief individual respon2 sible for coordinating the management of assets and 

3 liabilities of the Bank. 

4 (4) CHIEF COMPLIANCE OFFICER.—The term 

5 ‘‘chief compliance officer or CCO’’ means the chief 

6 individual responsible for overseeing and managing 

7 the compliance and regulatory affairs issues of the 

8 Bank. 

9 (5) CHIEF FINANCIAL OFFICER.—The term 

10 ‘‘chief financial officer or CFO’’ means the chief in11 dividual responsible for managing the financial risks, 

12 planning, and reporting of the Bank. 

13 (6) CHIEF LOAN ORIGINATION OFFICER.—The 

14 term ‘‘chief loan origination officer’’ means the chief 

15 individual responsible for the processing of new 

16 loans provided by the Bank. 

17 (7) CHIEF OPERATIONS OFFICER.—The term 

18 ‘‘chief operations officer or COO’’ means the chief 

19 individual responsible for information technology and 

20 the day to day operations of the Bank. 

21 (8) CHIEF RISK OFFICER.—The term ‘‘chief 

22 risk officer or CRO’’ means the chief individual re23 sponsible for managing operational and compliance24 related risks of the Bank. 


jbell on DSKDVH8Z91PROD with BILLS
6 

•HR 402 IH

1 (9) CHIEF TREASURY OFFICER.—The term 

2 ‘‘chief treasury officer’’ means the chief individual 

3 responsible for managing the Bank’s treasury oper4 ations. 

5 (10) DEVELOPMENT.—The terms ‘‘develop6 ment’’ and ‘‘develop’’ mean, with respect to an infra7 structure project, any— 

8 (A) preconstruction planning, feasibility re9 view, permitting, design work, and other 

10 preconstruction activities; and 

11 (B) construction, reconstruction, rehabili12 tation, replacement, or expansion. 

13 (11) DISADVANTAGED COMMUNITY.—The term 

14 ‘‘disadvantaged community’’ means a community 

15 with a median household income of less than 80 per16 cent of the statewide median household income for 

17 the State in which the community is located. 

18 (12) ENERGY INFRASTRUCTURE PROJECT.— 

19 The term ‘‘energy infrastructure project’’ means any 

20 project for energy transmission, energy efficiency en21 hancement for buildings, public housing, and 

22 schools, renewable energy, and energy storage. 

23 (13) ENTITY.—The term ‘‘entity’’ means an in24 dividual, corporation, partnership (including a pub25 lic-private partnership), joint venture, trust, and a 


jbell on DSKDVH8Z91PROD with BILLS
7 

•HR 402 IH

1 State or other governmental entity, including a polit2 ical subdivision or any other instrumentality of a 

3 State or a revolving fund. 

4 (14) ENVIRONMENTAL INFRASTRUCTURE

5 PROJECT.—The term ‘‘environmental infrastructure 

6 project’’ means any project for the establishment, 

7 maintenance, or enhancement of any drinking water 

8 and wastewater treatment facility, storm water man9 agement system, dam, levee, open space manage10 ment system, solid waste disposal facility, hazardous 

11 waste facility, or industrial site cleanup. 

12 (15) EXECUTIVE DIRECTOR.—The term ‘‘execu13 tive director’’ means the individual serving as the 

14 chief executive officer of the Bank. 

15 (16) GENERAL COUNSEL.—The term ‘‘general 

16 counsel’’ means the individual who serves as the 

17 chief lawyer for the Bank. 

18 (17) INFRASTRUCTURE PROJECT.—The term 

19 ‘‘infrastructure project’’ means any energy, environ20 mental, telecommunications, or transportation infra21 structure project. 

22 (18) PUBLIC BENEFIT BOND.—The term ‘‘pub23 lic benefit bond’’ means a bond issued with respect 

24 to an infrastructure project in accordance with this 

25 Act if— 


jbell on DSKDVH8Z91PROD with BILLS
8 

•HR 402 IH

1 (A) the net spendable proceeds from the 

2 sale of the issue may be used for expenditures 

3 incurred after the date of issuance with respect 

4 to the project, subject to the rules of the Bank; 

5 (B) the bond issued by the Bank is in reg6 istered form and meets the requirements of this 

7 Act and otherwise applicable law; and 

8 (C) the payment of principal with respect 

9 to the bond is the obligation of the Bank. 

10 (19) PUBLIC-PRIVATE PARTNERSHIP.—The 

11 term ‘‘public-private partnership’’ means any enti12 ty— 

13 (A)(i) which is undertaking the develop14 ment of all or part of an infrastructure project, 

15 which will have a public benefit, pursuant to re16 quirements established in one or more contracts 

17 between the entity and a State or an instru18 mentality of a State; or 

19 (ii) the activities of which, with respect to 

20 such an infrastructure project, are subject to 

21 regulation by a State or any instrumentality of 

22 a State; and 

23 (B) which owns, leases, or operates, or will 

24 own, lease, or operate, the project in whole or 


jbell on DSKDVH8Z91PROD with BILLS
9 

•HR 402 IH

1 in part, and at least one of the participants in 

2 the entity is a nongovernmental entity. 

3 (20) REVOLVING FUND.—The term ‘‘revolving 

4 fund’’ means a fund or program established by a 

5 State or a political subdivision or other instrumen6 tality of a State, the principal activity of which is to 

7 make loans, commitments, or other financial accom8 modation available for the development of one or 

9 more categories of infrastructure projects. 

10 (21) SECRETARY.—The term ‘‘Secretary’’ 

11 means the Secretary of the Treasury or the designee 

12 of the Secretary. 

13 (22) SMART GRID.—The term ‘‘smart grid’’ 

14 means a system that provides for any of the smart 

15 grid functions set forth in section 1306(d) of the 

16 Energy Independence and Security Act of 2007 (42 

17 U.S.C. 17386(d)). 

18 (23) STATE.—The term ‘‘State’’ includes the 

19 District of Columbia, Puerto Rico, Guam, American 

20 Samoa, the Virgin Islands, the Commonwealth of 

21 Northern Mariana Islands, and any other territory 

22 of the United States. 

23 (24) TELECOMMUNICATIONS INFRASTRUCTURE

24 PROJECT.—The term ‘‘telecommunications infra25 structure project’’ means any project involving infraVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
10 

•HR 402 IH

1 structure required to provide communications by 

2 wire or radio. 

3 (25) TRANSPORTATION INFRASTRUCTURE

4 PROJECT.—The term ‘‘transportation infrastructure 

5 project’’ means any project for the construction, 

6 maintenance, or enhancement of highways, roads, 

7 bridges, transit and intermodal systems, inland wa8 terways, commercial ports, airports, high speed rail 

9 and freight rail systems. 

10 SEC. 4. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE 

11 DEVELOPMENT BANK. 

12 (a) ESTABLISHMENT OF NATIONAL INFRASTRUC13 TURE DEVELOPMENT BANK.—The National Infrastruc14 ture Development Bank is established as a wholly owned 

15 Government corporation subject to chapter 91 of title 31, 

16 United States Code (commonly known as the ‘‘Govern17 ment Corporation Control Act’’), except as otherwise pro18 vided in this Act. 

19 (b) RESPONSIBILITY OF THE SECRETARY.—The Sec20 retary shall take such action as may be necessary to assist 

21 in implementing the establishment of the bank in accord22 ance with this Act. 

23 (c) CONFORMING AMENDMENT.—Section 9101(3) of 

24 title 31, United States Code, is amended by inserting after 

25 subparagraph (N) the following: 


jbell on DSKDVH8Z91PROD with BILLS
11 

•HR 402 IH

1 ‘‘(O) the National Infrastructure Develop2 ment Bank.’’. 

3 SEC. 5. BOARD OF DIRECTORS. 

4 (a) IN GENERAL.—The Bank shall have a Board of 

5 Directors consisting of 5 members appointed by the Presi6 dent by and with the advice and consent of the Senate. 

7 (b) QUALIFICATIONS.—The directors of the Board 

8 shall include individuals representing different regions of 

9 the United States and— 

10 (1) 2 of the directors shall have public sector 

11 experience; and 

12 (2) 3 of the directors shall have private sector 

13 experience. 

14 (c) CHAIRPERSON AND VICE CHAIRPERSON.—As des15 ignated at the time of appointment, one of the directors 

16 of the Board shall be designated chairperson of the Board 

17 by the President and one shall be designated as vice chair18 person of the Board by the President. 

19 (d) TERMS.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2) and subsection (f), each director shall be 

22 appointed for a term of 6 years. 

23 (2) INITIAL STAGGERED TERMS.—Of the initial 

24 members of the Board— 


jbell on DSKDVH8Z91PROD with BILLS
12 

•HR 402 IH

1 (A) the chairperson and vice chairperson 

2 shall be appointed for terms of 6 years; 

3 (B) 1 shall be appointed for a term of 5 

4 years; 

5 (C) 1 shall be appointed for a term of 4 

6 years; and 

7 (D) 1 shall be appointed for a term of 3 

8 years. 

9 (e) DATE OF INITIAL NOMINATIONS.—The initial 

10 nominations by the President for appointment of directors 

11 to the Board shall be made not later than 60 days after 

12 the date of enactment of this Act. 

13 (f) VACANCIES.— 

14 (1) IN GENERAL.—A vacancy on the Board 

15 shall be filled in the manner in which the original 

16 appointment was made. 

17 (2) APPOINTMENT TO REPLACE DURING

18 TERM.—Any director appointed to fill a vacancy oc19 curring before the expiration of the term for which 

20 the director’s predecessor was appointed shall be ap21 pointed only for the remainder of the term. 

22 (3) DURATION.—A director may serve after the 

23 expiration of that director’s term until a successor 

24 has taken office. 


jbell on DSKDVH8Z91PROD with BILLS
13 

•HR 402 IH

1 (g) QUORUM.—Three directors shall constitute a 

2 quorum. 

3 (h) REAPPOINTMENT.—A director of the Board ap4 pointed by the President may be reappointed by the Presi5 dent in accordance with this section. 

6 (i) PER DIEM REIMBURSEMENT.—Directors of the 

7 Board shall serve on a part-time basis and shall receive 

8 a per diem when engaged in the actual performance of 

9 Bank business, plus reasonable reimbursement for travel, 

10 subsistence, and other necessary expenses incurred in the 

11 performance of their duties. 

12 (j) LIMITATIONS.—A director of the Board may not 

13 participate in any review or decision affecting a project 

14 under consideration for assistance under this Act if the 

15 director has or is affiliated with a person who has an inter16 est in such project. 

17 (k) POWERS AND LIMITATIONS OF THE BOARD.— 

18 (1) POWERS.—In order to carry out the pur19 poses of the Bank as set forth in this Act, the Board 

20 shall be responsible for monitoring and overseeing 

21 infrastructure projects and have the following pow22 ers: 

23 (A) To make senior and subordinated 

24 loans and purchase senior and subordinated 

25 debt securities and enter into a binding commitVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
14 

•HR 402 IH

1 ment to make any such loan or purchase any 

2 such security, on such terms as the Board may 

3 determine, in the Board’s discretion, to be ap4 propriate, the proceeds of which are used to as5 sist in the financing or refinancing of the devel6 opment of one or more infrastructure projects. 

7 (B) To issue and sell debt securities of the 

8 Bank on such terms as the Board shall deter9 mine from time to time. 

10 (C) To issue public benefit bonds and to 

11 provide financing to infrastructure projects 

12 from amounts made available from the issuance 

13 of such bonds. 

14 (D) To make loan guarantees. 

15 (E) To make agreements and contracts 

16 with any entity in furtherance of the business 

17 of the Bank. 

18 (F) To borrow on the global capital market 

19 and lend to regional, State, and local entities, 

20 and commercial banks for the purpose of fund21 ing infrastructure projects. 

22 (G) To purchase in the open market any of 

23 the Bank’s outstanding obligations at any time 

24 and at any price. 


jbell on DSKDVH8Z91PROD with BILLS
15 

•HR 402 IH

1 (H) To monitor and oversee infrastructure 

2 projects financed, in whole or in part, by the 

3 Bank. 

4 (I) To acquire, lease, pledge, exchange, 

5 and dispose of real and personal property and 

6 otherwise exercise all the usual incidents of 

7 ownership of property to the extent the exercise 

8 of such powers are appropriate to and con9 sistent with the purposes of the Bank. 

10 (J) To sue and be sued in the Bank’s cor11 porate capacity in any court of competent juris12 diction, except that no attachment, injunction, 

13 or similar process, may be issued against the 

14 property of the Bank or against the Bank with 

15 respect to such property. 

16 (K) To indemnify the directors and officers 

17 of the Bank for liabilities arising out of the ac18 tions of the directors and officers in such capac19 ity, in accordance with, and subject to the limi20 tations contained in, this Act. 

21 (L) To serve as the primary liaison be22 tween the Bank, Congress, the executive 

23 branch, and State and local governments and to 

24 represent the Bank’s interests. 


jbell on DSKDVH8Z91PROD with BILLS
16 

•HR 402 IH

1 (M) To exercise all other lawful powers 

2 which are necessary or appropriate to carry out, 

3 and are consistent with, the purposes of the 

4 Bank. 

5 (2) LIMITATIONS.— 

6 (A) ISSUANCE OF DEBT SECURITY.—The 

7 Board may not issue any debt security without 

8 the prior consent of the Secretary. 

9 (B) ISSUANCE OF VOTING SECURITY.—The 

10 Board may not issue any voting security in the 

11 Bank to any entity other than the Secretary. 

12 (3) ACTIONS CONSISTENT WITH SELF-SUP13 PORTING ENTITY STATUS.—The Board shall conduct 

14 its business in a manner consistent with the require15 ments of this section. 

16 (4) COORDINATION WITH STATE AND LOCAL

17 REGULATORY AUTHORITY.—The provision of finan18 cial assistance by the Board pursuant to this Act 

19 shall not be construed as— 

20 (A) limiting the right of any State or polit21 ical subdivision or other instrumentality of a 

22 State to approve or regulate rates of return on 

23 private equity invested in a project; or 

24 (B) otherwise superseding any State law or 

25 regulation applicable to a project. 


jbell on DSKDVH8Z91PROD with BILLS
17 

•HR 402 IH

1 (5) FEDERAL PERSONNEL REQUESTS.—The 

2 Board shall have the power to request the detail, on 

3 a reimbursable basis, of personnel from other Fed4 eral agencies with specific expertise not available 

5 from within the Bank or elsewhere. The head of any 

6 Federal agency may detail, on a reimbursable basis, 

7 any personnel of such agency requested by the 

8 Board and shall not withhold unreasonably the de9 tail of any personnel requested by the Board. 

10 (l) MEETINGS.— 

11 (1) OPEN TO THE PUBLIC; NOTICE.—All meet12 ings of the Board held to conduct the business of the 

13 Bank shall be open to the public and shall be pre14 ceded by reasonable notice. 

15 (2) INITIAL MEETING.—The Board shall meet 

16 not later than 90 days after the date on which all 

17 directors of the Board are first appointed and other18 wise at the call of the Chairperson. 

19 (3) EXCEPTION FOR CLOSED MEETINGS.—Pur20 suant to such rules as the Board may establish 

21 through their bylaws, the directors may close a 

22 meeting of the Board if, at the meeting, there is 

23 likely to be disclosed information which could ad24 versely affect or lead to speculation relating to an in25 frastructure project under consideration for assistVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
18 

•HR 402 IH

1 ance under this Act or in financial or securities or 

2 commodities markets or institutions, utilities, or real 

3 estate. The determination to close any meeting of 

4 the Board shall be made in a meeting of the Board, 

5 open to the public, and preceded by reasonable no6 tice. The Board shall prepare minutes of any meet7 ing which is closed to the public and make such min8 utes available as soon as the considerations necessi9 tating closing such meeting no longer apply. 

10 SEC. 6. EXECUTIVE COMMITTEE. 

11 (a) IN GENERAL.—The Board shall have an executive 

12 committee consisting of 9 members, headed by the execu13 tive director of the Bank. 

14 (b) EXECUTIVE DIRECTOR.—A majority of the Board 

15 shall have the authority to appoint and reappoint the exec16 utive director. 

17 (c) CEO.—The executive director shall be the chief 

18 executive officer of the Bank, with such executive func19 tions, powers, and duties as may be prescribed by this Act, 

20 the bylaws of the Bank, or the Board. 

21 (d) OTHER EXECUTIVE OFFICERS.—The Board shall 

22 appoint, remove, fix the compensation, and define duties 

23 of 8 other executive officers to serve on the Executive 

24 Committee as the— 

25 (1) chief compliance officer; 


jbell on DSKDVH8Z91PROD with BILLS
19 

•HR 402 IH

1 (2) chief financial officer; 

2 (3) chief asset and liability management officer; 

3 (4) chief loan origination officer; 

4 (5) chief operations officer; 

5 (6) chief risk officer; 

6 (7) chief treasury officer; and 

7 (8) general counsel. 

8 (e) QUALIFICATIONS.—The executive director and 

9 other executive officers shall have demonstrated experience 

10 and expertise in one or more of the following: 

11 (1) Transportation infrastructure. 

12 (2) Environmental infrastructure. 

13 (3) Energy infrastructure. 

14 (4) Telecommunications infrastructure. 

15 (5) Economic development. 

16 (6) Workforce development. 

17 (7) Public health. 

18 (8) Private or public finance. 

19 (f) DUTIES.—In order to carry out the purposes of 

20 the Bank as set forth in this Act, the executive committee 

21 shall— 

22 (1) establish disclosure and application proce23 dures for entities nominating projects for assistance 

24 under this Act; 


jbell on DSKDVH8Z91PROD with BILLS
20 

•HR 402 IH

1 (2) accept, for consideration, project proposals 

2 relating to the development of infrastructure 

3 projects, which meet the basic criteria established by 

4 the Board, and which are submitted by an entity; 

5 (3) provide recommendations to the Board and 

6 place project proposals accepted by the executive 

7 committee on a list for consideration for financial 

8 assistance from the Board; and 

9 (4) provide technical assistance to entities re10 ceiving financing from the Bank and otherwise im11 plement decisions of the Board. 

12 (g) VACANCY.—A vacancy in the position of executive 

13 director shall be filled in the manner in which the original 

14 appointment was made. 

15 (h) COMPENSATION.—The compensation of the exec16 utive director and other executive officers of the executive 

17 committee shall be determined by the Board. 

18 (i) REMOVAL.—The executive director and other ex19 ecutive officers may be removed at the discretion of a ma20 jority of the Board. 

21 (j) TERM.—The executive director and other execu22 tive officers shall serve a 6-year term and may be re23 appointed in accordance with this section. 

24 (k) LIMITATIONS.—The executive director and other 

25 executive officers shall not— 


jbell on DSKDVH8Z91PROD with BILLS
21 

•HR 402 IH

1 (1) hold any other public office; 

2 (2) have any interest in an infrastructure 

3 project considered by the Board; 

4 (3) have any interest in an investment institu5 tion, commercial bank, or other entity seeking finan6 cial assistance for any infrastructure project from 

7 the Bank; and 

8 (4) have any such interest during the 2-year pe9 riod beginning on the date such officer ceases to 

10 serve in such capacity. 

11 SEC. 7. RISK MANAGEMENT COMMITTEE. 

12 (a) ESTABLISHMENT OF RISK MANAGEMENT COM13 MITTEE.—The Bank shall establish a risk management 

14 committee consisting of 5 members, headed by the chief 

15 risk officer. 

16 (b) APPOINTMENTS.—A majority of the Board shall 

17 have the authority to appoint and reappoint the CRO of 

18 the Bank. 

19 (c) FUNCTIONS; DUTIES.— 

20 (1) IN GENERAL.—The CRO shall have such 

21 functions, powers, and duties as may be prescribed 

22 by one or more of the following: This Act, the by23 laws of the Bank, and the Board. The CRO shall re24 port directly to the Board. 


jbell on DSKDVH8Z91PROD with BILLS
22 

•HR 402 IH

1 (2) RISK MANAGEMENT DUTIES.—In order to 

2 carry out the purposes of this Act, the risk manage3 ment committee shall— 

4 (A) create financial, credit, and operational 

5 risk management guidelines and policies to be 

6 adhered to by the Bank; 

7 (B) set guidelines to ensure diversification 

8 of lending activities by both region and infra9 structure project type; 

10 (C) create conforming standards for infra11 structure finance securities; 

12 (D) monitor financial, credit and oper13 ational exposure of the Bank; and 

14 (E) provide financial recommendations to 

15 the Board. 

16 (d) OTHER RISK MANAGEMENT OFFICERS.—The 

17 Board shall appoint, remove, fix the compensation, and 

18 define the duties of 4 other risk management officers to 

19 serve on the risk management committee. 

20 (e) QUALIFICATIONS.—The CRO and other risk man21 agement officers shall have demonstrated experience and 

22 expertise in one or more of the following: 

23 (1) Treasury and asset and liability manage24 ment. 

25 (2) Investment regulations. 


jbell on DSKDVH8Z91PROD with BILLS
23 

•HR 402 IH

1 (3) Insurance. 

2 (4) Credit risk management and credit evalua3 tions. 

4 (5) Related disciplines. 

5 (f) VACANCY.—A vacancy in the position of CRO or 

6 any other risk management officer shall be filled in the 

7 manner in which the original appointment was made. 

8 (g) COMPENSATION.—The compensation of the CRO 

9 and other risk management officers shall be determined 

10 by the Board. 

11 (h) REMOVAL.—The CRO and any other risk man12 agement officers may be removed at the discretion of a 

13 majority of the Board. 

14 (i) TERM.—The CRO and other risk management of15 ficers shall serve a 6-year term and may be reappointed 

16 in accordance with this section. 

17 (j) LIMITATIONS.—The CRO and other risk manage18 ment officers shall not— 

19 (1) hold any other public office; 

20 (2) have any interest in an infrastructure 

21 project considered by the Board; 

22 (3) have any interest in an investment institu23 tion, commercial bank, or other entity seeking finan24 cial assistance for any infrastructure project from 

25 the Bank; and 


jbell on DSKDVH8Z91PROD with BILLS
24 

•HR 402 IH

1 (4) have any such interest during the 2-year pe2 riod beginning on the date such officer ceases to 

3 serve in such capacity. 

4 SEC. 8. AUDIT COMMITTEE. 

5 (a) IN GENERAL.—The Bank shall have an audit 

6 committee consisting of 5 members, headed by the chief 

7 compliance officer of the Bank. 

8 (b) APPOINTMENTS.—A majority of the Board shall 

9 have the authority to appoint and reappoint the CCO of 

10 the Bank. 

11 (c) FUNCTIONS; DUTIES.—The CCO shall have such 

12 functions, powers, and duties as may be prescribed by one 

13 or more of the following: This Act, the bylaws of the Bank, 

14 and the Board. The CCO shall report directly to the 

15 Board. 

16 (d) AUDIT DUTIES.—In order to carry out the pur17 poses of the Bank under this Act, the audit committee 

18 shall— 

19 (1) provide internal controls and internal audit20 ing activities for the Bank; 

21 (2) maintain responsibility for the accounting 

22 activities of the Bank; 

23 (3) issue financial reports of the Bank; and 

24 (4) complete reports with outside auditors and 

25 public accountants appointed by the Board. 


jbell on DSKDVH8Z91PROD with BILLS
25 

•HR 402 IH

1 (e) OTHER AUDIT OFFICERS.—The Board shall ap2 point, remove, fix the compensation, and define the duties 

3 of 4 other audit officers to serve on the audit committee. 

4 (f) QUALIFICATIONS.—The CCO and other audit offi5 cers shall have demonstrated experience and expertise in 

6 one or more of the following: 

7 (1) Internal auditing. 

8 (2) Internal investigations. 

9 (3) Accounting practices. 

10 (4) Financing practices. 

11 (g) VACANCY.—A vacancy in the position of CCO or 

12 any other audit officer shall be filled in the manner in 

13 which the original appointment was made. 

14 (h) COMPENSATION.—The compensation of the CCO 

15 and other audit officers shall be determined by the Board. 

16 (i) REMOVAL.—The CCO and other audit officers 

17 may be removed at the discretion of a majority of the 

18 Board. 

19 (j) TERM.—The CCO and other audit officers shall 

20 serve a 6-year term and may be reappointed in accordance 

21 with this section. 

22 (k) LIMITATIONS.—The CCO and other audit officers 

23 shall not— 

24 (1) hold any other public office; 


jbell on DSKDVH8Z91PROD with BILLS
26 

•HR 402 IH

1 (2) have any interest in an infrastructure 

2 project considered by the Board; 

3 (3) have any interest in an investment institu4 tion, commercial bank, or other entity seeking finan5 cial assistance for any infrastructure project from 

6 the Bank; and 

7 (4) have any such interest during the 2-year pe8 riod beginning on the date such officer ceases to 

9 serve in such capacity. 

10 SEC. 9. PERSONNEL. 

11 The chairperson of the Board, executive director, 

12 chief risk officer, and chief compliance officer shall ap13 point, remove, fix the compensation of, and define the du14 ties of such qualified personnel to serve under the Board, 

15 executive committee, risk management committee, or 

16 audit committee, as the case may be, as necessary and 

17 prescribed by one or more of the following: This Act, the 

18 bylaws of the Bank, and the Board. 

19 SEC. 10. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

20 BANK. 

21 (a) IN GENERAL.—No financial assistance shall be 

22 available under this Act from the Bank unless the appli23 cant for such assistance has demonstrated to the satisfac24 tion of the Board that the project for which such assist25 ance is being sought meets— 


jbell on DSKDVH8Z91PROD with BILLS
27 

•HR 402 IH

1 (1) the requirements of this Act; and 

2 (2) any criteria established in accordance with 

3 this Act by the Board. 

4 (b) ESTABLISHMENT OF PROJECT CRITERIA.— 

5 (1) IN GENERAL.—Consistent with the require6 ments of subsections (c) and (d), the Board shall es7 tablish— 

8 (A) criteria for determining eligibility for 

9 financial assistance under this Act; 

10 (B) disclosure and application procedures 

11 to be followed by entities to nominate projects 

12 for assistance under this Act; and 

13 (C) such other criteria as the Board may 

14 consider to be appropriate for purposes of car15 rying out this Act. 

16 (2) FACTORS TO BE TAKEN INTO ACCOUNT.— 

17 (A) IN GENERAL.—The Bank shall con18 duct an analysis that takes into account the 

19 economic, environmental, social benefits, and 

20 costs of each project under consideration for fi21 nancial assistance under this Act, prioritizing 

22 projects that contribute to economic growth, 

23 lead to job creation, and are of regional or na24 tional significance. 


jbell on DSKDVH8Z91PROD with BILLS
28 

•HR 402 IH

1 (B) CRITERIA.—The criteria established 

2 pursuant to paragraph (1)(A) shall provide for 

3 the consideration of the following factors in 

4 considering eligibility for financial assistance 

5 under this Act: 

6 (i) The means by which development 

7 of the infrastructure project under consid8 eration is being financed, including— 

9 (I) the terms and conditions and 

10 financial structure of the proposed fi11 nancing; 

12 (II) the financial assumptions 

13 and projections on which the project 

14 is based; and 

15 (III) the extent to which the in16 frastructure project maximizes invest17 ment from other sources. 

18 (ii) The likelihood that the provision 

19 of assistance by the Bank will cause such 

20 development to proceed more promptly and 

21 with lower costs for financing than would 

22 be the case without such assistance. 

23 (iii) The extent to which the provision 

24 of assistance by the Bank maximizes the 

25 level of private investment in the infraVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
29 

•HR 402 IH

1 structure project while providing a public 

2 benefit. 

3 (c) FACTORS FOR SPECIFIC TYPES OF PROJECTS.— 

4 (1) TRANSPORTATION INFRASTRUCTURE

5 PROJECTS.—For any transportation infrastructure 

6 project, the Board shall consider the following: 

7 (A) Job creation, including workforce de8 velopment for women and minorities, respon9 sible employment practices, and quality job 

10 training opportunities. 

11 (B) Reduction in carbon emissions. 

12 (C) Reduction in surface and air traffic 

13 congestion. 

14 (D) Poverty and inequality reduction 

15 through targeted training and employment op16 portunities for low-income workers. 

17 (E) Use of smart tolling, such as vehicle 

18 miles traveled and congestion pricing, for high19 way, road, and bridge projects. 

20 (F) Public health benefits. 

21 (2) ENVIRONMENTAL INFRASTRUCTURE

22 PROJECT.—For any environmental infrastructure 

23 project, the Board shall consider the following: 

24 (A) Public health benefits. 

25 (B) Pollution reductions. 


jbell on DSKDVH8Z91PROD with BILLS
30 

•HR 402 IH

1 (C) Job creation, including workforce de2 velopment for women and minorities, respon3 sible employment practices, and quality job 

4 training opportunities. 

5 (D) Poverty and inequality reduction 

6 through targeted training and employment op7 portunities for low-income workers. 

8 (3) ENERGY INFRASTRUCTURE PROJECT.—For 

9 any energy infrastructure project, the Board shall 

10 consider the following: 

11 (A) Job creation, including workforce de12 velopment for women and minorities, respon13 sible employment practices, and quality job 

14 training opportunities. 

15 (B) Poverty and inequality reduction 

16 through targeted training and employment op17 portunities for low-income workers. 

18 (C) Reduction in carbon emissions. 

19 (D) Expanded use of renewable energy. 

20 (E) Development of a smart grid. 

21 (F) Energy efficient building, housing, and 

22 school modernization. 

23 (G) In any case in which the project is also 

24 a public housing project— 


jbell on DSKDVH8Z91PROD with BILLS
31 

•HR 402 IH

1 (i) improvement of the physical shape 

2 and layout; 

3 (ii) environmental improvement; and 

4 (iii) mobility improvements for resi5 dents. 

6 (H) Public health benefits. 

7 (4) TELECOMMUNICATIONS.—For any tele8 communications project, the Board shall consider 

9 the following: 

10 (A) The extent to which assistance ex11 pands or improves broadband and wireless serv12 ices in rural and disadvantaged communities. 

13 (B) Poverty and inequality reduction 

14 through targeted training and employment op15 portunities for low-income workers. 

16 (C) Job creation, including work force de17 velopment for women and minorities, respon18 sible employment practices, and quality job 

19 training opportunities. 

20 (d) CONSIDERATION OF PROJECT PROPOSALS.— 

21 (1) PARTICIPATION BY OTHER AGENCY PER22 SONNEL.—Consideration of projects by the executive 

23 committee and the Board shall be conducted with 

24 personnel on detail to the Bank from relevant Fed25 eral agencies from among individuals who are familVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
32 

•HR 402 IH

1 iar with and experienced in the selection criteria for 

2 competitive projects. 

3 (2) FEES.—A fee may be charged for the re4 view of any project proposal in such amount as 

5 maybe considered appropriate by the executive com6 mittee to cover the cost of such review. 

7 (e) DISCRETION OF BOARD.—Consistent with other 

8 provisions of this Act, any determination of the Board to 

9 provide assistance to any project, and the manner in which 

10 such assistance is provided, including the terms, condi11 tions, fees, and charges shall be at the sole discretion of 

12 the Board. 

13 (f) STATE AND LOCAL PERMITS REQUIRED.—The 

14 provision of assistance by the Board in accordance with 

15 this Act shall not be deemed to relieve any recipient of 

16 assistance or the related project of any obligation to obtain 

17 required State and local permits and approvals. 

18 (g) ANNUAL REPORT.—An entity receiving assistance 

19 from the Board shall make annual reports to the Board 

20 on the use of any such assistance, compliance with the 

21 criteria set forth in this section, and a disclosure of all 

22 entities with a development, ownership, or operational in23 terest in a project assisted or proposed to be assisted 

24 under this Act. 


jbell on DSKDVH8Z91PROD with BILLS
33 

•HR 402 IH

1 SEC. 11. EXEMPTION FROM LOCAL TAXATION. 

2 All notes, debentures, bonds or other such obligations 

3 issued by the Bank, and the interest on or credits with 

4 respect to such bonds or other obligations, shall not be 

5 subject to taxation by any State, county, municipality, or 

6 local taxing authority. 

7 SEC. 12. STATUS AND APPLICABILITY OF CERTAIN FED8 ERAL LAWS; NO FULL FAITH AND CREDIT. 

9 (a) BUDGETING AND AUDITORS PRACTICES.—The 

10 Bank shall comply with all Federal laws regulating the 

11 budgetary and auditing practices of a government corpora12 tion, except as otherwise provided in this Act. 

13 (b) NO FULL FAITH AND CREDIT OF THE UNITED

14 STATES.—Obligations of the Bank shall not be obligations 

15 of, or guaranteed as to principal or interest by, the United 

16 States or any agency of the United States and the obliga17 tions shall so plainly state. 

18 (c) EFFECT OF AND EXEMPTIONS FROM OTHER

19 LAWS.— 

20 (1) EXEMPT SECURITIES.—All debt securities 

21 and other obligations issued by the Bank pursuant 

22 to this Act shall be deemed to be exempt securities 

23 within the meaning of laws administered by the Se24 curities and Exchange Commission to the same ex25 tent as securities which are direct obligations of, or 


jbell on DSKDVH8Z91PROD with BILLS
34 

•HR 402 IH

1 obligations fully guaranteed as to principal or inter2 est by, the United States. 

3 (2) OPEN MARKET OPERATIONS AND STATE

4 TAX EXEMPT STATUS.—The obligations of the Bank 

5 shall be deemed to be obligations of the United 

6 States for the purposes of the provision designated 

7 as (b)(2) of the 2nd undesignated paragraph of sec8 tion 14 of the Federal Reserve Act (12 U.S.C. 355) 

9 and section 3124 of title 31, United States Code. 

10 (3) NO PRIORITY AS A FEDERAL CLAIM.—The 

11 priority established in favor of the United States by 

12 section 3713 of title 31, United States Code, shall 

13 not apply with respect to any indebtedness of the 

14 Bank. 

15 (d) FEDERAL RESERVE BANKS AS DEPOSITORIES, 

16 CUSTODIANS, AND FISCAL AGENTS.—The Federal reserve 

17 banks may act as depositaries for, or custodians or fiscal 

18 agents of, the Bank. 

19 (e) ACCESS TO BOOK-ENTRY SYSTEM.—The Sec20 retary may authorize the Bank to use the book-entry sys21 tem of the Federal reserve system. 

22 SEC. 13. COMPLIANCE WITH DAVIS-BACON ACT. 

23 All laborers and mechanics employed by contractors 

24 and subcontractors on projects funded directly by or as25 sisted in whole or in part by and through the Bank pursuVerDate Mar 15 2010 04:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H402.IH H402

jbell on DSKDVH8Z91PROD with BILLS
35 

•HR 402 IH

1 ant to this Act shall be paid wages at rates not less than 

2 those prevailing on projects of a character similar in the 

3 locality as determined by the Secretary of Labor in accord4 ance with subchapter IV of chapter 31 of part A of title 

5 40, United States Code. With respect to the labor stand6 ards specified in this section, the Secretary of Labor shall 

7 have the authority and functions set forth in Reorganiza8 tion Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

9 App.) and section 3145 of title 40, United States Code. 

10 SEC. 14. APPLICABILITY OF CERTAIN STATE LAWS. 

11 The receipt by any entity of any assistance under this 

12 Act, directly or indirectly, and any financial assistance 

13 provided by any governmental entity in connection with 

14 such assistance under this Act shall be valid and lawful 

15 notwithstanding any State or local restrictions regarding 

16 extensions of credit or other benefits to private persons 

17 or entities, or other similar restrictions. 

18 SEC. 15. AUDITS; REPORTS TO PRESIDENT AND CONGRESS. 

19 (a) ACCOUNTING.—The books of account of the Bank 

20 shall be maintained in accordance with generally accepted 

21 accounting principles and shall be subject to an annual 

22 audit by independent public accountants appointed by the 

23 Board and of nationally recognized standing. 

24 (b) REPORTS.— 


jbell on DSKDVH8Z91PROD with BILLS
36 

•HR 402 IH

1 (1) BOARD.—The Board shall submit to the 

2 President and Congress, within 90 days after the 

3 last day of each fiscal year, a complete and detailed 

4 report with respect to the preceding fiscal year, set5 ting forth— 

6 (A) a summary of the Bank’s operations, 

7 for such preceding fiscal year; 

8 (B) a schedule of the Bank’s obligations 

9 and capital securities outstanding at the end of 

10 such preceding fiscal year, with a statement of 

11 the amounts issued and redeemed or paid dur12 ing such preceding fiscal year; and 

13 (C) the status of projects receiving funding 

14 or other assistance pursuant to this Act, includ15 ing disclosure of all entities with a development, 

16 ownership, or operational interest in such 

17 projects. 

18 (2) GAO.—Not later than 5 years after the 

19 date of enactment of this Act, the Comptroller Gen20 eral of the United States shall submit to Congress 

21 a report evaluating activities of the Bank for the fis22 cal years covered by the report that includes an as23 sessment of the impact and benefits of each funded 

24 project, including a review of how effectively each 


jbell on DSKDVH8Z91PROD with BILLS
37 

•HR 402 IH

1 project accomplished the goals prioritized by the 

2 Bank’s project criteria. 

3 (c) BOOKS AND RECORDS.— 

4 (1) IN GENERAL.—The Bank shall maintain 

5 adequate books and records to support the financial 

6 transactions of the Bank with a description of finan7 cial transactions and infrastructure projects receiv8 ing funding, and the amount of funding for each 

9 project maintained on a publically accessible data10 base. 

11 (2) AUDITS BY THE SECRETARY AND GAO.— 

12 The books and records of the Bank shall be main13 tained in accordance with recommended accounting 

14 practices and shall be open to inspection by the Sec15 retary and the Comptroller General of the United 

16 States. 

17 SEC. 16. CAPITALIZATION OF BANK. 

18 (a) AUTHORIZATION OF APPROPRIATION.—There is 

19 authorized to be appropriated to the Secretary for pur20 chase of the shares of the Bank $5,000,000,000 for each 

21 of fiscal years 2012, 2013, 2014, 2015, and 2016 with 

22 the aggregate representing 10 percent of the total sub23 scribed capital of the Bank. 

24 (b) CALLABLE CAPITAL.—Of the total subscribed 

25 capital of the Bank, 90 percent shall be callable capital 


jbell on DSKDVH8Z91PROD with BILLS
38 

•HR 402 IH

1 subject to call from the Secretary only as and when re2 quired by the Bank to meet its obligations on borrowing 

3 of funds for inclusion in its ordinary capital resources or 

4 guarantees chargeable to such resources. 

5 (c) OUTSTANDING LOANS.—At any time, the aggre6 gate amount outstanding of bonds issued by the Bank 

7 shall not exceed 250 percent of its total subscribed capital. 

8 SEC. 17. SUNSET. 

9 The Bank shall cease to exist 15 years after the date 

10 of enactment of this Act. 

Æ 


jbell on DSKDVH8Z91PROD with BILLS