I 

111TH CONGRESS 

1ST SESSION H. R. 2521 

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 

MAY 20, 2009 

Ms. DELAURO (for herself, Mr. ELLISON, Mr. ISRAEL, Mr. WEINER, Ms. 

BORDALLO, Ms. HIRONO, Mr. DELAHUNT, Ms. SUTTON, Mr. RYAN of 

Ohio, Mr. WELCH, Ms. WOOLSEY, Mr. MCGOVERN, Ms. SCHAKOWSKY, 

Mr. DRIEHAUS, Mr. MCDERMOTT, Ms. BERKLEY, Mr. MASSA, Mr. 

COURTNEY, Mr. BLUMENAUER, Mr. FRANK of Massachusetts, Ms. 

MOORE of Wisconsin, Mr. VAN HOLLEN, Mr. ETHERIDGE, Mr. FATTAH, 

Mr. YARMUTH, Mr. LARSON of Connecticut, and Mr. FARR) 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Infrastruc3 ture Development Bank Act of 2009’’. 

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) According to the Federal Highway Adminis19 tration up to $131,700,000,000 must be invested 

20 annually for a 20-year period to improve bridge effi21 ciencies and the physical condition and operational 

22 performance of the highway system of the United 

23 States. 

24 (4) According to the Federal Transit Adminis25 tration, up to $21,800,000,000 must be invested an26 nually for a 20-year period to improve conditions 


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1 and performance of the major transit systems of the 

2 United States. 

3 (5) The Environmental Protection Agency 

4 projects that— 

5 (A) $183,600,000,000 is needed for instal6 lation and maintenance of drinking water trans7 mission and distribution systems through 2022; 

8 and 

9 (B) $202,500,000,000 is needed for pub10 licly owned wastewater systems-related infra11 structure needs through 2024. 

12 (6) According to the Edison Electric Institute, 

13 to maintain current levels of service given expected 

14 growth in demand, electric utilities need to invest an 

15 annual average of— 

16 (A) $28,000,000,000 for generation; 

17 (B) $12,000,000,000 for transmission; and 

18 (C) $34,000,000,000 for distribution of 

19 electricity. 

20 (7) According to the American Council on Re21 newable Energy, renewable energy could provide up 

22 to 635 gigawatts of new electricity generating capac23 ity by 2025—a substantial contribution and poten24 tially more than the Nation’s need for new capacity, 


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1 according to the United States Energy Information 

2 Administration. 

3 (8) According to the United States Green 

4 Building Council, United States buildings account 

5 for 38.9 percent of primary energy use, 38 percent 

6 of carbon emissions, and 72 percent of electricity 

7 consumption. 

8 (9) There are over 1,200,000 units of public 

9 housing nationwide, with an accumulated capital 

10 needs backlog of approximately $18,000,000,000, 

11 with an additional $2,000,000,000 accruing each 

12 year. 

13 (10) According to the Organization for Eco14 nomic Cooperation and Development (OECD), the 

15 United States ranks 15th among OECD nations in 

16 broadband access per 100 inhabitants. 

17 (11) Although grant programs of the Govern18 ment must continue to play a central role in financ19 ing the transportation, environment, energy, and 

20 telecommunications infrastructure needs of the 

21 United States, current and foreseeable demands on 

22 existing Federal, State, and local funding for infra23 structure expansion exceed the resources to support 

24 these programs by margins wide enough to prompt 

25 serious concerns about the United States’ ability to 


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1 sustain long-term economic development, produc2 tivity, and international competitiveness. 

3 (12) The capital markets, including central 

4 banks, pension funds, financial institutions, sov5 ereign wealth funds and insurance companies, have 

6 a growing interest in infrastructure investment. The 

7 establishment of a United States Government-owned 

8 institution that would provide this investment oppor9 tunity through high quality bond issues that would 

10 be used to finance qualifying infrastructure projects 

11 would attract needed capital for United States infra12 structure development. 

13 SEC. 3. DEFINITIONS. 

14 For purposes of this Act, the following definitions 

15 apply unless the context requires otherwise: 

16 (1) BANK.—The term ‘‘Bank’’ means the Na17 tional Infrastructure Development Bank established 

18 under section 4(a). 

19 (2) BOARD.—The term ‘‘Board’’ means the Na20 tional Infrastructure Development Bank Board. 

21 (3) CHIEF ASSET AND LIABILITY MANAGEMENT

22 OFFICER.—The term ‘‘chief asset and liability man23 agement officer’’ means the chief individual respon24 sible for coordinating the management of assets and 

25 liabilities of the Bank. 


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1 (4) CHIEF COMPLIANCE OFFICER.—The term 

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

3 individual responsible for overseeing and managing 

4 the compliance and regulatory affairs issues of the 

5 Bank. 

6 (5) CHIEF FINANCIAL OFFICER.—The term 

7 ‘‘chief financial officer or CFO’’ means the chief in8 dividual responsible for managing the financial risks, 

9 planning, and reporting of the Bank. 

10 (6) CHIEF LOAN ORIGINATION OFFICER.—The 

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

12 individual responsible for the processing of new 

13 loans provided by the Bank. 

14 (7) CHIEF OPERATIONS OFFICER.—The term 

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

16 individual responsible for information technology and 

17 the day to day operations of the Bank. 

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

19 risk officer or CRO’’ means the chief individual re20 sponsible for managing operational and compliance21 related risks of the Bank. 

22 (9) CHIEF TREASURY OFFICER.—The term 

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

24 responsible for managing the Bank’s treasury oper25 ations. 


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1 (10) DEVELOPMENT.—The terms ‘‘develop2 ment’’ and ‘‘develop’’ mean, with respect to an infra3 structure project, any— 

4 (A) preconstruction planning, feasibility re5 view, permitting, design work, and other 

6 preconstruction activities; and 

7 (B) construction, reconstruction, rehabili8 tation, replacement, or expansion. 

9 (11) DISADVANTAGED COMMUNITY.—The term 

10 ‘‘disadvantaged community’’ means a community 

11 with a median household income of less than 80 per12 cent of the statewide median household income for 

13 the State in which the community is located. 

14 (12) ENERGY INFRASTRUCTURE PROJECT.— 

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

16 project for energy transmission, energy efficiency en17 hancement for buildings, public housing, and 

18 schools, renewable energy, and energy storage. 

19 (13) ENTITY.—The term ‘‘entity’’ means an in20 dividual, corporation, partnership (including a pub21 lic-private partnership), joint venture, trust, and a 

22 State or other governmental entity, including a polit23 ical subdivision or any other instrumentality of a 

24 State or a revolving fund. 


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1 (14) ENVIRONMENTAL INFRASTRUCTURE

2 PROJECT.—The term ‘‘environmental infrastructure 

3 project’’ means any project for the establishment, 

4 maintenance, or enhancement of any drinking water 

5 and wastewater treatment facility, storm water man6 agement system, dam, levee, open space manage7 ment system, solid waste disposal facility, hazardous 

8 waste facility, or industrial site cleanup. 

9 (15) EXECUTIVE DIRECTOR.—The term ‘‘execu10 tive director’’ means the individual serving as the 

11 chief executive officer of the Bank. 

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

13 counsel’’ means the individual who serves as the 

14 chief lawyer for the Bank. 

15 (17) INFRASTRUCTURE PROJECT.—The term 

16 ‘‘infrastructure project’’ means any energy, environ17 mental, telecommunications, or transportation infra18 structure project. 

19 (18) PUBLIC BENEFIT BOND.—The term ‘‘pub20 lic benefit bond’’ means a bond issued with respect 

21 to an infrastructure project in accordance with this 

22 Act if— 

23 (A) the net spendable proceeds from the 

24 sale of the issue may be used for expenditures 


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1 incurred after the date of issuance with respect 

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

3 (B) the bond issued by the Bank is in reg4 istered form and meets the requirements of this 

5 Act and otherwise applicable law; 

6 (C) the term of each bond which is part of 

7 the issue is greater than 30 years; and 

8 (D) 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 


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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) SMART GROWTH.—The term ‘‘smart 

19 growth’’ means growth in the center of a city to 

20 avoid urban sprawl. 

21 (24) STATE.—The term ‘‘State’’ includes the 

22 District of Columbia, Puerto Rico, Guam, American 

23 Samoa, the Virgin Islands, the Commonwealth of 

24 Northern Mariana Islands, and any other territory 

25 of the United States. 


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1 (25) TELECOMMUNICATIONS INFRASTRUCTURE

2 PROJECT.—The term ‘‘telecommunications infra3 structure project’’ means any project involving infra4 structure required to provide communications by 

5 wire or radio. 

6 (26) TRANSPORTATION INFRASTRUCTURE

7 PROJECT.—The term ‘‘transportation infrastructure 

8 project’’ means any project for the construction, 

9 maintenance, or enhancement of highways, roads, 

10 bridges, transit and intermodal systems, inland wa11 terways, commercial ports, airports, high speed rail 

12 and freight rail systems. 

13 SEC. 4. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE 

14 DEVELOPMENT BANK. 

15 (a) ESTABLISHMENT OF NATIONAL INFRASTRUC16 TURE DEVELOPMENT BANK.—The National Infrastruc17 ture Development Bank is established as a wholly owned 

18 Government corporation subject to chapter 91 of title 31, 

19 United States Code (commonly known as the ‘‘Govern20 ment Corporation Control Act’’), except as otherwise pro21 vided in this Act. 

22 (b) RESPONSIBILITY OF THE SECRETARY.—The Sec23 retary shall take such action as may be necessary to assist 

24 in implementing the establishment of the bank in accord25 ance with this Act. 


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

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

3 subparagraph (N) the following: 

4 ‘‘(O) the National Infrastructure Develop5 ment Bank.’’. 

6 SEC. 5. BOARD OF DIRECTORS. 

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

8 Directors consisting of 5 members appointed by the Presi9 dent by and with the advice and consent of the Senate. 

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

11 shall include individuals representing different regions of 

12 the United States and— 

13 (1) 2 of the directors shall have public sector 

14 experience; and 

15 (2) 3 of the directors shall have private sector 

16 experience. 

17 (c) CHAIRPERSON AND VICE CHAIRPERSON.—As des18 ignated at the time of appointment, one of the directors 

19 of the Board shall be designated chairperson of the Board 

20 by the President and one shall be designated as vice chair21 person of the Board by the President. 

22 (d) TERMS.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2) and subsection (f), each director shall be 

25 appointed for a term of 6 years. 


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

2 members of the Board— 

3 (A) the chairperson and vice chairperson 

4 shall be appointed for terms of 6 years; 

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

6 years; 

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

8 years; and 

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

10 years. 

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

12 nominations by the President for appointment of directors 

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

14 the date of enactment of this Act. 

15 (f) VACANCIES.— 

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

17 shall be filled in the manner in which the original 

18 appointment was made. 

19 (2) APPOINTMENT TO REPLACE DURING

20 TERM.—Any director appointed to fill a vacancy oc21 curring before the expiration of the term for which 

22 the director’s predecessor was appointed shall be ap23 pointed only for the remainder of the term. 


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

2 expiration of that director’s term until a successor 

3 has taken office. 

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

5 quorum. 

6 (h) REAPPOINTMENT.—A director of the Board ap7 pointed by the President may be reappointed by the Presi8 dent in accordance with this section. 

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

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

11 a per diem when engaged in the actual performance of 

12 Bank business, plus reasonable reimbursement for travel, 

13 subsistence, and other necessary expenses incurred in the 

14 performance of their duties. 

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

16 participate in any review or decision affecting a project 

17 under consideration for assistance under this Act if the 

18 director has or is affiliated with a person who has an inter19 est in such project. 

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

21 (1) POWERS.—In order to carry out the pur22 poses of the Bank as set forth in this Act, the Board 

23 shall be responsible for monitoring and overseeing 

24 infrastructure projects and have the following pow25 ers: 


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1 (A) To make senior and subordinated 

2 loans and purchase senior and subordinated 

3 debt securities and enter into a binding commit4 ment to make any such loan or purchase any 

5 such security, on such terms as the Board may 

6 determine, in the Board’s discretion, to be ap7 propriate, the proceeds of which are to be used 

8 to finance or refinance the development of one 

9 or more infrastructure projects. 

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

11 Bank on such terms as the Board shall deter12 mine from time to time. 

13 (C) To issue public benefit bonds and to 

14 provide direct subsidies to infrastructure 

15 projects from amounts made available from the 

16 issuance of such bonds. 

17 (D) To make loan guarantees. 

18 (E) To make agreements and contracts 

19 with any entity in furtherance of the business 

20 of the Bank. 

21 (F) To borrow on the global capital market 

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

23 and commercial banks for the purpose of fund24 ing infrastructure projects. 


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1 (G) To purchase, pool, and sell infrastruc2 ture-related loans and securities on the global 

3 capital market. 

4 (H) To purchase in the open market any 

5 of the Bank’s outstanding obligations at any 

6 time and at any price. 

7 (I) To monitor and oversee infrastructure 

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

9 Bank. 

10 (J) To acquire, lease, pledge, exchange, 

11 and dispose of real and personal property and 

12 otherwise exercise all the usual incidents of 

13 ownership of property to the extent the exercise 

14 of such powers are appropriate to and con15 sistent with the purposes of the Bank. 

16 (K) To sue and be sued in the Bank’s cor17 porate capacity in any court of competent juris18 diction, except that no attachment, injunction, 

19 or similar process, may be issued against the 

20 property of the Bank or against the Bank with 

21 respect to such property. 

22 (L) To indemnify the directors and officers 

23 of the Bank for liabilities arising out of the ac24 tions of the directors and officers in such capacVerDate Nov 24 2008 00:09 May 27, 2009 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H2521.IH H2521

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1 ity, in accordance with, and subject to the limi2 tations contained in, this Act. 

3 (M) To serve as the primary liaison be4 tween the Bank, Congress, the executive 

5 branch, and State and local governments and to 

6 represent the Bank’s interests. 

7 (N) To exercise all other lawful powers 

8 which are necessary or appropriate to carry out, 

9 and are consistent with, the purposes of the 

10 Bank. 

11 (2) LIMITATIONS.— 

12 (A) ISSUANCE OF DEBT SECURITY.—The 

13 Board may not issue any debt security without 

14 the prior consent of the Secretary. 

15 (B) ISSUANCE OF VOTING SECURITY.—The 

16 Board may not issue any voting security in the 

17 Bank to any entity other than the Secretary. 

18 (3) ACTIONS CONSISTENT WITH SELF-SUP19 PORTING ENTITY STATUS.—The Board shall conduct 

20 its business in a manner consistent with the require21 ments of this section. 

22 (4) COORDINATION WITH STATE AND LOCAL

23 REGULATORY AUTHORITY.—The provision of finan24 cial assistance by the Board pursuant to this Act 

25 shall not be construed as— 


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1 (A) limiting the right of any State or polit2 ical subdivision or other instrumentality of a 

3 State to approve or regulate rates of return on 

4 private equity invested in a project; or 

5 (B) otherwise superseding any State law or 

6 regulation applicable to a project. 

7 (5) FEDERAL PERSONNEL REQUESTS.—The 

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

9 a reimbursable basis, of personnel from other Fed10 eral agencies with specific expertise not available 

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

12 Federal agency may detail, on a reimbursable basis, 

13 any personnel of such agency requested by the 

14 Board and shall not withhold unreasonably the de15 tail of any personnel requested by the Board. 

16 (l) MEETINGS.— 

17 (1) OPEN TO THE PUBLIC; NOTICE.—All meet18 ings of the Board held to conduct the business of the 

19 Bank shall be open to the public and shall be pre20 ceded by reasonable notice. 

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

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

23 directors of the Board are first appointed and other24 wise at the call of the Chairperson. 


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1 (3) EXCEPTION FOR CLOSED MEETINGS.—Pur2 suant to such rules as the Board may establish 

3 through their bylaws, the directors may close a 

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

5 likely to be disclosed information which could ad6 versely affect or lead to speculation relating to an in7 frastructure project under consideration for assist8 ance under this Act or in financial or securities or 

9 commodities markets or institutions, utilities, or real 

10 estate. The determination to close any meeting of 

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

12 open to the public, and preceded by reasonable no13 tice. The Board shall prepare minutes of any meet14 ing which is closed to the public and make such min15 utes available as soon as the considerations necessi16 tating closing such meeting no longer apply. 

17 SEC. 6. EXECUTIVE COMMITTEE. 

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

19 committee consisting of 9 members, headed by the execu20 tive director of the Bank. 

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

22 shall have the authority to appoint and reappoint the exec23 utive director. 

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

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1 tions, powers, and duties as may be prescribed by this Act, 

2 the bylaws of the Bank, or the Board. 

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

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

5 of 8 other executive officers to serve on the Executive 

6 Committee as the— 

7 (1) chief compliance officer; 

8 (2) chief financial officer; 

9 (3) chief asset and liability management officer; 

10 (4) chief loan origination officer; 

11 (5) chief operations officer; 

12 (6) chief risk officer; 

13 (7) chief treasury officer; and 

14 (8) general counsel. 

15 (e) QUALIFICATIONS.—The executive director and 

16 other executive officers shall have demonstrated experience 

17 and expertise in one or more of the following: 

18 (1) Transportation infrastructure. 

19 (2) Environmental infrastructure. 

20 (3) Energy infrastructure. 

21 (4) Telecommunications infrastructure. 

22 (5) Economic development. 

23 (6) Workforce development. 

24 (7) Public health. 

25 (8) Private or public finance. 


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

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

3 shall— 

4 (1) establish disclosure and application proce5 dures for entities nominating projects for assistance 

6 under this Act; 

7 (2) accept, for consideration, project proposals 

8 relating to the development of infrastructure 

9 projects, which meet the basic criteria established by 

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

11 (3) provide recommendations to the Board and 

12 place project proposals accepted by the executive 

13 committee on a list for consideration for financial 

14 assistance from the Board; 

15 (4) provide technical assistance to entities re16 ceiving financing from the Bank and otherwise im17 plement decisions of the Board. 

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

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

20 appointment was made. 

21 (h) COMPENSATION.—The compensation of the exec22 utive director and other executive officers of the executive 

23 committee shall be determined by the Board. 


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1 (i) REMOVAL.—The executive director and other ex2 ecutive officers may be removed at the discretion of a ma3 jority of the Board. 

4 (j) TERM.—The executive director and other execu5 tive officers shall serve a 6-year term and may be re6 appointed in accordance with this section. 

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

8 executive officers shall not— 

9 (1) hold any other public office; 

10 (2) have any interest in an infrastructure 

11 project considered by the Board; 

12 (3) have any interest in an investment institu13 tion, commercial bank, or other entity seeking finan14 cial assistance for any infrastructure project from 

15 the Bank; and 

16 (4) have any such interest during the 2-year pe17 riod beginning on the date such officer ceases to 

18 serve in such capacity. 

19 SEC. 7. RISK MANAGEMENT COMMITTEE. 

20 (a) ESTABLISHMENT OF RISK MANAGEMENT COM21 MITTEE.—The Bank shall establish a risk management 

22 committee consisting of 5 members, headed by the chief 

23 risk officer. 


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

2 have the authority to appoint and reappoint the CRO of 

3 the Bank. 

4 (c) FUNCTIONS; DUTIES.— 

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

6 functions, powers, and duties as may be prescribed 

7 by one or more of the following: this Act, the bylaws 

8 of the Bank, and the Board. The CRO shall report 

9 directly to the Board. 

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

11 carry out the purposes of this Act, the risk manage12 ment committee shall— 

13 (A) create financial, credit, and operational 

14 risk management guidelines and policies to be 

15 adhered to by the Bank; 

16 (B) set guidelines to ensure diversification 

17 of lending activities by both region and infra18 structure project type; 

19 (C) create conforming standards for infra20 structure finance securities; 

21 (D) monitor financial, credit and oper22 ational exposure of the Bank; and 

23 (E) provide financial recommendations to 

24 the Board. 


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1 (d) OTHER RISK MANAGEMENT OFFICERS.—The 

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

3 define the duties of 4 other risk management officers to 

4 serve on the risk management committee. 

5 (e) QUALIFICATIONS.—The CRO and other risk man6 agement officers shall have demonstrated experience and 

7 expertise in one or more of the following: 

8 (1) Treasury and asset and liability manage9 ment. 

10 (2) Investment regulations. 

11 (3) Insurance. 

12 (4) Credit risk management and credit evalua13 tions. 

14 (5) Related disciplines. 

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

16 any other risk management officer shall be filled in the 

17 manner in which the original appointment was made. 

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

19 and other risk management officers shall be determined 

20 by the Board. 

21 (h) REMOVAL.—The CRO and any other risk man22 agement officers may be removed at the discretion of a 

23 majority of the Board. 


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1 (i) TERM.—The CRO and other risk management of2 ficers shall serve a 6-year term and may be reappointed 

3 in accordance with this section. 

4 (j) LIMITATIONS.—The CRO and other risk manage5 ment officers shall not— 

6 (1) hold any other public office; 

7 (2) have any interest in an infrastructure 

8 project considered by the Board; 

9 (3) have any interest in an investment institu10 tion, commercial bank, or other entity seeking finan11 cial assistance for any infrastructure project from 

12 the Bank; and 

13 (4) have any such interest during the 2-year pe14 riod beginning on the date such officer ceases to 

15 serve in such capacity. 

16 SEC. 8. AUDIT COMMITTEE. 

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

18 committee consisting of 5 members, headed by the chief 

19 compliance officer of the Bank. 

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

21 have the authority to appoint and reappoint the CCO of 

22 the Bank. 

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

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

25 or more of the following: this Act, the bylaws of the Bank, 


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

2 Board. 

3 (d) AUDIT DUTIES.—In order to carry out the pur4 poses of the Bank under this Act, the audit committee 

5 shall— 

6 (1) provide internal controls and internal audit7 ing activities for the Bank; 

8 (2) maintain responsibility for the accounting 

9 activities of the Bank; 

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

11 (4) complete reports with outside auditors and 

12 public accountants appointed by the Board. 

13 (e) OTHER AUDIT OFFICERS.—The Board shall ap14 point, remove, fix the compensation, and define the duties 

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

16 (f) QUALIFICATIONS.—The CCO and other audit offi17 cers shall have demonstrated experience and expertise in 

18 one or more of the following: 

19 (1) Internal auditing. 

20 (2) Internal investigations. 

21 (3) Accounting practices. 

22 (4) Financing practices. 

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

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

25 which the original appointment was made. 


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

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

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

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

5 Board. 

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

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

8 with this section. 

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

10 shall not— 

11 (1) hold any other public office; 

12 (2) have any interest in an infrastructure 

13 project considered by the Board; 

14 (3) have any interest in an investment institu15 tion, commercial bank, or other entity seeking finan16 cial assistance for any infrastructure project from 

17 the Bank; and 

18 (4) have any such interest during the 2-year pe19 riod beginning on the date such officer ceases to 

20 serve in such capacity. 

21 SEC. 9. PERSONNEL. 

22 The chairperson of the Board, executive director, 

23 chief risk officer, and chief compliance officer shall ap24 point, remove, fix the compensation of, and define the du25 ties of such qualified personnel to serve under the Board, 


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1 executive committee, risk management committee, or 

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

3 prescribed by one or more of the following: this Act, the 

4 bylaws of the Bank, and the Board. 

5 SEC. 10. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

6 BANK. 

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

8 available under this Act from the Bank unless the appli9 cant for such assistance has demonstrated to the satisfac10 tion of the Board that the project for which such assist11 ance is being sought meets— 

12 (1) the requirements of this Act; and 

13 (2) any criteria established in accordance with 

14 this Act by the Board. 

15 (b) ESTABLISHMENT OF PROJECT CRITERIA.— 

16 (1) IN GENERAL.—Consistent with the require17 ments of subsections (c) and (d), the Board shall es18 tablish— 

19 (A) criteria for determining eligibility for 

20 financial assistance under this Act; 

21 (B) disclosure and application procedures 

22 to be followed by entities to nominate projects 

23 for assistance under this Act; and 


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1 (C) such other criteria as the Board may 

2 consider to be appropriate for purposes of car3 rying out this Act. 

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

5 (A) IN GENERAL.—The Bank shall con6 duct an analysis that takes into account the 

7 economic, environmental, social benefits, and 

8 costs of each project under consideration for fi9 nancial assistance under this Act, prioritizing 

10 projects that contribute to economic growth, 

11 lead to job creation, and are of regional or na12 tional significance. 

13 (B) CRITERIA.—The criteria established 

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

15 the consideration of the following factors in 

16 considering eligibility for financial assistance 

17 under this Act: 

18 (i) The means by which development 

19 of the infrastructure project under consid20 eration is being financed, including— 

21 (I) the terms and conditions and 

22 financial structure of the proposed fi23 nancing; and 


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1 (II) the financial assumptions 

2 and projections on which the project 

3 is based. 

4 (ii) The likelihood that the provision 

5 of assistance by the Bank will cause such 

6 development to proceed more promptly and 

7 with lower costs for financing than would 

8 be the case without such assistance. 

9 (iii) The extent to which the provision 

10 of assistance by the Bank maximizes the 

11 level of private investment in the infra12 structure project while providing a public 

13 benefit. 

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

15 (1) TRANSPORTATION INFRASTRUCTURE

16 PROJECTS.—For any transportation infrastructure 

17 project, the Board shall consider the following: 

18 (A) Job creation, including workforce de19 velopment for women and minorities, respon20 sible employment practices, and quality job 

21 training opportunities. 

22 (B) Reduction in carbon emissions. 

23 (C) Reduction in surface and air traffic 

24 congestion. 

25 (D) Smart growth in urban areas. 


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1 (E) Poverty and inequality reduction 

2 through targeted training and employment op3 portunities for low-income workers. 

4 (F) Use of smart tolling, such as vehicle 

5 miles traveled and congestion pricing, for high6 way, road, and bridge projects. 

7 (G) Public health benefits. 

8 (2) ENVIRONMENTAL INFRASTRUCTURE

9 PROJECT.—For any environmental infrastructure 

10 project, the Board shall consider the following: 

11 (A) Public health benefits. 

12 (B) Pollution reductions. 

13 (C) Job creation, including workforce de14 velopment for women and minorities, respon15 sible employment practices, and quality job 

16 training opportunities. 

17 (D) Poverty and inequality reduction 

18 through targeted training and employment op19 portunities for low-income workers. 

20 (3) ENERGY INFRASTRUCTURE PROJECT.—For 

21 any energy infrastructure project, the Board shall 

22 consider the following: 

23 (A) Job creation, including workforce de24 velopment for women and minorities, responVerDate Nov 24 2008 00:09 May 27, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H2521.IH H2521

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1 sible employment practices, and quality job 

2 training opportunities. 

3 (B) Poverty and inequality reduction 

4 through targeted training and employment op5 portunities for low-income workers. 

6 (C) Reduction in carbon emissions. 

7 (D) Smart growth in urban areas. 

8 (E) Expanded use of renewable energy, in9 cluding hydroelectric, solar, and wind. 

10 (F) Development of a smart grid. 

11 (G) Energy efficient building, housing, and 

12 school modernization. 

13 (H) In any case in which the project is 

14 also a public housing project— 

15 (i) improvement of the physical shape 

16 and layout; 

17 (ii) environmental improvement; and 

18 (iii) mobility improvements for resi19 dents. 

20 (I) Public health benefits. 

21 (4) TELECOMMUNICATIONS.—For any tele22 communications project, the Board shall consider 

23 the following: 


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1 (A) The extent to which assistance ex2 pands or improves broadband and wireless serv3 ices in rural and disadvantaged communities. 

4 (B) Poverty and inequality reduction 

5 through targeted training and employment op6 portunities for low-income workers. 

7 (C) Job creation, including work force de8 velopment for women and minorities, respon9 sible employment practices, and quality job 

10 training opportunities. 

11 (d) CONSIDERATION OF PROJECT PROPOSALS.— 

12 (1) PARTICIPATION BY OTHER AGENCY PER13 SONNEL.—Consideration of projects by the executive 

14 committee and the Board shall be conducted with 

15 personnel on detail to the Bank from relevant Fed16 eral agencies from among individuals who are famil17 iar with and experienced in the selection criteria for 

18 competitive projects. 

19 (2) FEES.—A fee may be charged for the re20 view of any project proposal in such amount as 

21 maybe considered appropriate by the executive com22 mittee to cover the cost of such review. 

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

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

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


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1 such assistance is provided, including the terms, condi2 tions, fees, and charges shall be at the sole discretion of 

3 the Board. 

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

5 provision of assistance by the Board in accordance with 

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

7 assistance or the related project of any obligation to obtain 

8 required State and local permits and approvals. 

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

10 from the Board shall make annual reports to the Board 

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

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

13 entities with a development, ownership, or operational in14 terest in a project assisted or proposed to be assisted 

15 under this Act. 

16 SEC. 11. EXEMPTION FROM LOCAL TAXATION. 

17 All notes, debentures, bonds or other such obligations 

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

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

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

21 local taxing authority. 

22 SEC. 12. STATUS AND APPLICABILITY OF CERTAIN FED23 ERAL LAWS; FULL FAITH AND CREDIT. 

24 (a) BUDGETING AND AUDITORS PRACTICES.—The 

25 Bank shall comply with all Federal laws regulating the 


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1 budgetary and auditing practices of a government corpora2 tion, except as otherwise provided in this Act. 

3 (b) FULL FAITH AND CREDIT.—Any bond or other 

4 obligation issued by the Bank under this Act shall be an 

5 obligation supported by the full faith and credit of the 

6 United States. 

7 (c) EFFECT OF AND EXEMPTIONS FROM OTHER

8 LAWS.— 

9 (1) EXEMPT SECURITIES.—All debt securities 

10 and other obligations issued by the Bank pursuant 

11 to this Act shall be deemed to be exempt securities 

12 within the meaning of laws administered by the Se13 curities and Exchange Commission to the same ex14 tent as securities which are direct obligations of, or 

15 obligations fully guaranteed as to principal or inter16 est by, the United States. 

17 (2) OPEN MARKET OPERATIONS AND STATE

18 TAX EXEMPT STATUS.—The obligations of the Bank 

19 shall be deemed to be obligations of the United 

20 States for the purposes of the provision designated 

21 as (b)(2) of the 2nd undesignated paragraph of sec22 tion 14 of the Federal Reserve Act (12 U.S.C. 355) 

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

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

25 priority established in favor of the United States by 


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

2 not apply with respect to any indebtedness of the 

3 Bank. 

4 (d) FEDERAL RESERVE BANKS AS DEPOSITORIES, 

5 CUSTODIANS, AND FISCAL AGENTS.—The Federal reserve 

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

7 agents of, the Bank. 

8 (e) ACCESS TO BOOK-ENTRY SYSTEM.—The Sec9 retary may authorize the Bank to use the book-entry sys10 tem of the Federal reserve system. 

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

12 All laborers and mechanics employed by contractors 

13 and subcontractors on projects funded directly by or as14 sisted in whole or in part by and through the Bank pursu15 ant to this Act shall be paid wages at rates not less than 

16 those prevailing on projects of a character similar in the 

17 locality as determined by the Secretary of Labor in accord18 ance with subchapter IV of chapter 31 of part A of title 

19 40, United States Code. With respect to the labor stand20 ards specified in this section, the Secretary of Labor shall 

21 have the authority and functions set forth in Reorganiza22 tion Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

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


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1 SEC. 14. APPLICABILITY OF CERTAIN STATE LAWS. 

2 The receipt by any entity of any assistance under this 

3 Act, directly or indirectly, and any financial assistance 

4 provided by any governmental entity in connection with 

5 such assistance under this Act shall be valid and lawful 

6 notwithstanding any State or local restrictions regarding 

7 extensions of credit or other benefits to private persons 

8 or entities, or other similar restrictions. 

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

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

11 shall be maintained in accordance with generally accepted 

12 accounting principles and shall be subject to an annual 

13 audit by independent public accountants appointed by the 

14 Board and of nationally recognized standing. 

15 (b) REPORTS.— 

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

17 President and Congress, within 90 days after the 

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

19 report with respect to the preceding fiscal year, set20 ting forth— 

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

22 for such preceding fiscal year; 

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

24 and capital securities outstanding at the end of 

25 such preceding fiscal year, with a statement of 


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1 the amounts issued and redeemed or paid dur2 ing such preceding fiscal year; and 

3 (C) the status of projects receiving funding 

4 or other assistance pursuant to this Act, includ5 ing disclosure of all entities with a development, 

6 ownership, or operational interest in such 

7 projects. 

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

9 date of enactment of this Act, the Comptroller Gen10 eral of the United States shall submit to Congress 

11 a report evaluating activities of the Bank for the fis12 cal years covered by the report that includes an as13 sessment of the impact and benefits of each funded 

14 project, including a review of how effectively each 

15 project accomplished the goals prioritized by the 

16 Bank’s project criteria. 

17 (c) BOOKS AND RECORDS.— 

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

19 adequate books and records to support the financial 

20 transactions of the Bank with a description of finan21 cial transactions and infrastructure projects receiv22 ing funding, and the amount of funding for each 

23 project maintained on a publically accessible data24 base. 


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

2 The books and records of the Bank shall be main3 tained in accordance with recommended accounting 

4 practices and shall be open to inspection by the Sec5 retary and the Comptroller General of the United 

6 States. 

7 SEC. 16. CAPITALIZATION OF BANK. 

8 (a) AUTHORIZATION OF APPROPRIATION.—There is 

9 authorized to be appropriated to the Secretary for pur10 chase of the shares of the Bank $5,000,000,000 for each 

11 of fiscal years 2010, 2011, 2012, 2013, and 2014 with 

12 the aggregate representing 10 percent of the total sub13 scribed capital of the Bank. 

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

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

16 subject to call from the Secretary only as and when re17 quired by the Bank to meet its obligations on borrowing 

18 of funds for inclusion in its ordinary capital resources or 

19 guarantees chargeable to such resources. 

20 (c) OUTSTANDING LOANS.—At any time, the aggre21 gate amount outstanding of bonds issued by the Bank 

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


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1 SEC. 17. SUNSET. 

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

3 of enactment of this Act. 

Æ 


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