I 

110TH CONGRESS 

1ST SESSION H. R. 2573 

To establish State infrastructure banks for education. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2007 

Mrs. TAUSCHER (for herself, Mrs. MCCARTHY of New York, Mrs. 

NAPOLITANO, and Mr. SCHIFF) introduced the following bill; which was 

referred to the Committee on Education and Labor 

A BILL 

To establish State infrastructure banks for education. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Investing for Tomor5 row’s Schools Act of 2007’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) According to a 2005 study conducted by the 

9 American School & University, $29.08 billion was 

10 spent to address the Nation’s education infrastrucVerDate Aug 31 2005 20:48 Jun 06, 2007 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2573.IH H2573

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1 ture needs in 2004, with the average total cost of a 

2 new high school at $27 million. 

3 (2) According to the National Center for Edu4 cation Statistics, an estimated $127 billion in school 

5 repair, modernization, expansion, and construction is 

6 needed. 

7 (3) Approximately 14 million American stu8 dents attend schools which report the need for exten9 sive repair or replacement of one or more buildings. 

10 (4) Academic research has proven a direct cor11 relation between the condition of school facilities and 

12 student achievement. At Georgetown University, re13 searchers found that students assigned to schools in 

14 poor conditions can be expected to fall 10.9 percent15 age points behind those in buildings in excellent con16 dition. Similar studies have demonstrated up to a 20 

17 percent improvement in test scores when students 

18 were moved from a poor facility to a new facility. 

19 (5) The Director of Education and Employment 

20 Issues at the Government Accounting Office testified 

21 that nearly 52 percent of schools, affecting 21.3 mil22 lion students, reported insufficient technology ele23 ments for 6 or more areas. 


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1 (6) Large numbers of local educational agencies 

2 have difficulties securing financing for school facility 

3 improvement. 

4 (7) The challenges facing our Nation’s public 

5 elementary and secondary schools and libraries re6 quire the concerted efforts of all levels of govern7 ment and all sectors of the community. 

8 (8) The United States’ competitive position 

9 within the world economy is vulnerable if America’s 

10 future workforce continues to be educated in schools 

11 and libraries not equipped for the 21st century. 

12 (9) The deplorable state of collections in Amer13 ica’s public school libraries has increased the de14 mands on public libraries. In many instances, public 

15 libraries substitute for school libraries creating a 

16 higher demand for material and physical space to 

17 house literature and educational computer equip18 ment. 

19 (10) Research shows that 50 percent of a 

20 child’s intellectual development takes place before 

21 age 4. Our Nation’s public and school libraries play 

22 a critical role in a child’s early development because 

23 they provide a wealth of books and other resources 

24 that can give every child a head start on life and 

25 learning. 


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1 SEC. 3. STATE INFRASTRUCTURE BANK PILOT PROGRAM. 

2 (a) ESTABLISHMENT.— 

3 (1) COOPERATIVE AGREEMENTS.—Subject to 

4 the provisions of this section, the Secretary of the 

5 Treasury, in consultation with the Secretary of Edu6 cation, may enter into cooperative agreements with 

7 States for the establishment of State infrastructure 

8 banks and multistate infrastructure banks for mak9 ing loans to local educational agencies for building 

10 or repairing elementary or secondary schools which 

11 provide free public education (as such terms are de12 fined in section 14101 of the Elementary and Sec13 ondary Education Act of 1965 (20 U.S.C. 8801)) 

14 and to public libraries for building or repairing li15 brary facilities. 

16 (2) INTERSTATE COMPACTS.—Congress grants 

17 consent to 2 or more of the States, entering into a 

18 cooperative agreement under paragraph (1) with the 

19 Secretary of the Treasury for the establishment of a 

20 multistate infrastructure bank, to enter into an 

21 interstate compact establishing such bank in accord22 ance with this section. 

23 (b) FUNDING.—The Secretary of the Treasury, in 

24 consultation with the Secretary of Education, shall make 

25 grants to State infrastructure banks and multistate infra26 structure banks in a State in a cooperative agreement 


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1 under subsection (a)(1) to provide initial capital for loans 

2 provided under this section to local educational agencies 

3 and public libraries. Each bank shall apply repayments of 

4 principal and interest on loans to the making of additional 

5 loans. The Secretary shall take final action on an applica6 tion for a grant under this subsection within 90 days of 

7 the date of the submittal of such application. 

8 (c) INFRASTRUCTURE BANK REQUIREMENTS.—In 

9 order to establish an infrastructure bank under this sec10 tion, each State establishing the bank shall— 

11 (1) contribute, at a minimum, in each account 

12 of the bank from non-Federal sources an amount 

13 equal to 25 percent of the amount of each capitaliza14 tion grant made to the State and contributed to the 

15 bank under subsection (b); 

16 (2) identify an operating entity of the State as 

17 recipient of the grant if the entity has the capacity 

18 to manage loan funds and issue debt instruments of 

19 the State for purposes of leveraging the funds; 

20 (3) allow such funds to be used as reserve for 

21 debt issued by the State so long as proceeds are de22 posited in the fund for loan purposes; 

23 (4) ensure that investment income generated by 

24 funds contributed to an account of the bank will 

25 be— 


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1 (A) credited to the account; 

2 (B) available for use in providing loans to 

3 projects eligible for assistance from the account; 

4 and 

5 (C) invested in United States Treasury se6 curities, bank deposits, or such other financing 

7 instruments as the Secretary may approve to 

8 earn interest to enhance the leveraging of 

9 projects assisted by the bank; 

10 (5) ensure that any loan from the bank will 

11 bear interest at or below the lowest interest rates 

12 being offered for bonds the income from which is ex13 empt from Federal taxation, as determined by the 

14 State, to make the project that is the subject of the 

15 loan feasible; 

16 (6) ensure that repayment of any loan from the 

17 bank will commence not later than 1 year after the 

18 project has been completed; 

19 (7) ensure that the term for repaying any loan 

20 will not exceed 30 years after the date of the first 

21 payment on the loan under paragraph (5); and 

22 (8) require the bank to make an annual report 

23 to the Secretary on its status and make such other 

24 reports as the Secretary may require by guidelines. 


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1 (d) FORMS OF ASSISTANCE FROM INFRASTRUCTURE

2 BANKS.— 

3 (1) IN GENERAL.—An infrastructure bank es4 tablished under this section may make loans to a 

5 local educational agency or a public library in an 

6 amount equal to all or part of the cost of carrying 

7 out a project eligible for assistance under this sec8 tion. 

9 (2) APPLICATIONS FOR LOANS.—An application 

10 to an infrastructure bank by a local educational 

11 agency or a public library for a loan shall include— 

12 (A) in the case of a renovation project, a 

13 description of each architectural, civil, struc14 tural, mechanical, or electrical deficiency to be 

15 corrected with funds under a loan and the pri16 orities to be applied; 

17 (B) a description of the criteria used by 

18 the applicant to determine the type of corrective 

19 action necessary for the renovation of a facility; 

20 (C) a description of improvements to be 

21 made and a cost estimate for the improvements; 

22 (D) a description of how work undertaken 

23 with the loan will promote energy conservation; 

24 and 


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1 (E) such other information as the infra2 structure bank may require. 

3 An infrastructure bank shall take final action on a 

4 completed application submitted to it within 90 days 

5 after the date of its submittal. 

6 (3) CRITERIA FOR LOANS.—In considering ap7 plications for a loan an infrastructure bank shall 

8 consider— 

9 (A) the extent to which the local edu10 cational agency or public library involved lacks 

11 the fiscal capacity, including the ability to raise 

12 funds through the full use of such agency’s 

13 bonding capacity and otherwise, to undertake 

14 the project for which the loan would be used 

15 without the loan; 

16 (B) in the case of a local educational agen17 cy, the threat that the condition of the physical 

18 plant in the project poses to the safety and 

19 well-being of students; 

20 (C) the demonstrated need for the con21 struction, reconstruction, or renovation based 

22 on the condition of the facility in the project; 

23 and 

24 (D) the age of such facility. 

25 (e) QUALIFYING PROJECTS.— 


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1 (1) IN GENERAL.—A project is eligible for a 

2 loan from an infrastructure bank if it is a project 

3 that consists of— 

4 (A) the construction of new elementary or 

5 secondary schools to meet the needs imposed by 

6 enrollment growth; 

7 (B) the repair or upgrading of classrooms 

8 or structures related to academic learning, in9 cluding the repair of leaking roofs, crumbling 

10 walls, inadequate plumbing, poor ventilation 

11 equipment, and inadequate heating or light 

12 equipment; 

13 (C) an activity to increase physical safety 

14 at the educational facility involved; 

15 (D) an activity to enhance the educational 

16 facility involved to provide access for students, 

17 teachers, and other individuals with disabilities; 

18 (E) an activity to address environmental 

19 hazards at the educational facility involved, 

20 such as poor ventilation, indoor air quality, or 

21 lighting; 

22 (F) the provision of basic infrastructure 

23 that facilitates educational technology, such as 

24 communications outlets, electrical systems, 

25 power outlets, or a communication closet; 


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1 (G) work that will bring an educational fa2 cility into conformity with the requirements 

3 of— 

4 (i) environmental protection or health 

5 and safety programs mandated by Federal, 

6 State, or local law if such requirements 

7 were not in effect when the facility was ini8 tially constructed; and 

9 (ii) hazardous waste disposal, treat10 ment, and storage requirements mandated 

11 by the Resource Conservation and Recov12 ery Act of 1976 or similar State laws; 

13 (H) work that will enable efficient use of 

14 available energy resources, especially coal, solar 

15 power, and other renewable energy resources; 

16 (I) work to detect, remove, or otherwise 

17 contain asbestos hazards in educational facili18 ties; or 

19 (J) work to construct new public library 

20 facilities or repair or upgrade existing public li21 brary facilities. 

22 (2) DAVIS-BACON.—The wage requirements of 

23 the Act of March 3, 1931 (referred to as the ‘‘Davis24 Bacon Act’’, 40 U.S.C. 276a et seq.) shall apply 


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1 with respect to individuals employed on the projects 

2 described in paragraph (1). 

3 (3) HEALTHY HIGH PERFORMANCE SCHOOLS.— 

4 (A) ESTABLISHMENT OF GUIDELINES.— 

5 After consultation with States and consider6 ation of leading green building standards, the 

7 Secretary, in consultation with the Secretary of 

8 Energy and the Administrator of the Environ9 mental Protection Agency, shall establish 

10 Healthy, High Performance School Guidelines, 

11 which shall provide guidance for the construc12 tion and renovation of schools, education facili13 ties, and libraries relating to energy efficiency, 

14 renewable energy, water use, building materials, 

15 indoor environmental quality, and such other 

16 matters as the Secretary considers to be appro17 priate. 

18 (B) APPLICABILITY OF GUIDELINES.—A 

19 local educational agency or public library using 

20 a loan under this section to fund a new con21 struction or renovation project described in 

22 paragraph (1) shall ensure that the project con23 forms, to the maximum extent practicable, to 

24 the Healthy, High Performance School Guide25 lines in subparagraph (A). 


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1 (f) SUPPLEMENTATION.—Any loan made by an infra2 structure bank shall be used to supplement and not sup3 plant other Federal, State, and local funds available. 

4 (g) LIMITATION ON REPAYMENTS.—Notwithstanding 

5 any other provision of law, the repayment of a loan from 

6 an infrastructure bank under this section may not be cred7 ited towards the non-Federal share of the cost of any 

8 project. 

9 (h) SECRETARIAL REQUIREMENTS.—In admin10 istering this section, the Secretary of the Treasury shall 

11 specify procedures and guidelines for establishing, oper12 ating, and providing assistance from an infrastructure 

13 bank. 

14 (i) UNITED STATES NOT OBLIGATED.—The con15 tribution of Federal funds into an infrastructure bank es16 tablished under this section shall not be construed as a 

17 commitment, guarantee, or obligation on the part of the 

18 United States to any third party, nor shall any third party 

19 have any right against the United States for payment sole20 ly by virtue of the contribution. Any security or debt fi21 nancing instrument issued by the infrastructure bank 

22 shall expressly state that the security or instrument does 

23 not constitute a commitment, guarantee, or obligation of 

24 the United States. 


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1 (j) MANAGEMENT OF FEDERAL FUNDS.—Sections 

2 3335 and 6503 of title 31, United States Code, shall not 

3 apply to funds contributed under this section. 

4 (k) PROGRAM ADMINISTRATION.—For each of fiscal 

5 years 2008 through 2012, a State may expend not to ex6 ceed 2 percent of the Federal funds contributed to an in7 frastructure bank established by the State under this sec8 tion to pay the reasonable costs of administering the bank. 

9 (l) SECRETARIAL REVIEW.—The Secretary of the 

10 Treasury shall review the financial condition of each infra11 structure bank established under this section and transmit 

12 to Congress a report on the results of such review not later 

13 than 90 days after the completion of the review. 

14 (m) AUTHORIZATION OF APPROPRIATIONS.—For 

15 grants to States for the initial capitalization of infrastruc16 ture banks there are authorized to be appropriated 

17 $500,000,000 for fiscal year 2008 and for each of the next 

18 4 fiscal years. 

19 SEC. 4. DEFINITIONS. 

20 For purposes of this Act: 

21 (1) LOCAL EDUCATIONAL AGENCY.—(A) The 

22 term ‘‘local educational agency’’ means a public 

23 board of education or other public authority legally 

24 constituted within a State for either administrative 

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1 tion for, public elementary or secondary schools in a 

2 city, county, township, school district, or other polit3 ical subdivision of a State, or for such combination 

4 of school districts or counties as are recognized in a 

5 State as an administrative agency for its public ele6 mentary or secondary schools. 

7 (B) The term includes any other public institu8 tion or agency having administrative control and di9 rection of a public elementary or secondary school. 

10 (C) The term includes an elementary or sec11 ondary school funded by the Bureau of Indian Af12 fairs but only to the extent that such inclusion 

13 makes such school eligible for programs for which 

14 specific eligibility is not provided to such school in 

15 another provision of law and such school does not 

16 have a student population that is smaller than the 

17 student population of the local educational agency 

18 receiving assistance under this Act with the smallest 

19 student population, except that such school shall not 

20 be subject to the jurisdiction of any State edu21 cational agency other than the Bureau of Indian Af22 fairs. 

23 (2) OUTLYING AREA.—The term ‘‘outlying 

24 area’’ means the Virgin Islands, Guam, American 

25 Samoa, the Commonwealth of the Northern Mariana 


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1 Islands, the Republic of the Marshall Islands, the 

2 Federated States of Micronesia, and the Republic of 

3 Palau. 

4 (3) PUBLIC LIBRARY.—The term ‘‘public li5 brary’’ means a library that serves free of charge all 

6 residents of a community, district, or region, and re7 ceives its financial support in whole or in part from 

8 public funds. Such term also includes a research li9 brary, which, for the purposes of this sentence, 

10 means a library that— 

11 (A) makes its services available to the pub12 lic free of charge; 

13 (B) has extensive collections of books, 

14 manuscripts, and other materials suitable for 

15 scholarly research which are not available to the 

16 public through public libraries; 

17 (C) engages in the dissemination of hu18 manistic knowledge through services to readers, 

19 fellowships, educational and cultural programs, 

20 publication of significant research, and other 

21 activities; and 

22 (D) is not an integral part of an institu23 tion of higher education. 

24 (4) STATE.—The term ‘‘State’’ means each of 

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1 monwealth of Puerto Rico, and each of the outlying 

2 areas. 

Æ 


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