II 

Calendar No. 213 

112TH CONGRESS 

1ST SESSION S. 1769 

To put workers back on the job while rebuilding and modernizing America. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 31, 2011 

Ms. KLOBUCHAR (for herself, Mr. MANCHIN, Mr. WHITEHOUSE, Mr. REID, 

Mr. KERRY, Mrs. BOXER, Mr. COONS, Mr. BEGICH, Mr. LAUTENBERG, 

Mr. FRANKEN, Mr. SCHUMER, Mr. NELSON of Florida, Mr. 

BLUMENTHAL, Mrs. FEINSTEIN, Mr. LEVIN, Mr. MENENDEZ, Mr. 

BROWN of Ohio, Ms. STABENOW, and Mr. DURBIN) introduced the following bill; which was read the first time 

NOVEMBER 1, 2011 

Read the second time and placed on the calendar 

A BILL 

To put workers back on the job while rebuilding and 

modernizing America. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Rebuild America Jobs Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Buy American—Use of American iron, steel, and manufactured goods. 

Sec. 3. Wage rate and employment protection requirements. 

TITLE I—CREATING JOBS THROUGH INFRASTRUCTURE 

MODERNIZATION 

Subtitle A—Immediate Transportation Infrastructure Investments 

Sec. 101. Immediate transportation infrastructure investments. 

Subtitle B—Building and Upgrading Infrastructure for Long-term 

Development 

Sec. 121. Short title. 

Sec. 122. Findings and purpose. 

Sec. 123. Definitions. 

Sec. 124. Establishment and general authority of American Infrastructure Financing Authority. 

Sec. 125. Voting members of the board of directors. 

Sec. 126. Chief executive officer of AIFA. 

Sec. 127. Powers and duties of the board of directors. 

Sec. 128. Senior management. 

Sec. 129. Special Inspector General for AIFA. 

Sec. 130. Other personnel. 

Sec. 131. Compliance. 

Sec. 132. Terms and limitations on direct loans and loan guarantees. 

Sec. 133. Loan terms and repayment. 

Sec. 134. Compliance and enforcement. 

Sec. 135. Audits; reports to the President and Congress. 

Sec. 136. Administrative fees. 

Sec. 137. Efficiency of AIFA. 

Sec. 138. Funding. 

Subtitle C—Extension of Exemption From Alternative Minimum Tax 

Treatment for Certain Tax-exempt Bonds 

Sec. 141. Extension of exemption from alternative minimum tax treatment for 

certain tax-exempt bonds. 

TITLE II—SURTAX ON MILLIONAIRES 

Sec. 201. Surtax on millionaires. 

3 SEC. 2. BUY AMERICAN—USE OF AMERICAN IRON, STEEL, 

4 AND MANUFACTURED GOODS. 

5 (a) IN GENERAL.—None of the funds appropriated 

6 or otherwise made available by this Act may be used for 


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1 a project for the construction, alteration, maintenance, or 

2 repair of a public building or public work unless all of the 

3 iron, steel, and manufactured goods used in the project 

4 are produced in the United States. 

5 (b) EXCEPTION.—Subsection (a) shall not apply in 

6 any case or category of cases in which the head of the 

7 Federal department or agency involved determines that— 

8 (1) applying subsection (a) would be incon9 sistent with the public interest; 

10 (2) iron, steel, and the relevant manufactured 

11 goods are not produced in the United States in suffi12 cient and reasonably available quantities and of a 

13 satisfactory quality; or 

14 (3) inclusion of iron, steel, and manufactured 

15 goods produced in the United States will increase 

16 the cost of the overall project by more than 25 per17 cent. 

18 (c) WAIVER.—If the head of a Federal department 

19 or agency determines that it is necessary to waive the ap20 plication of subsection (a) based on a finding under sub21 section (b), the head of the department or agency shall 

22 publish in the Federal Register a detailed written justifica23 tion as to why the provision is being waived. 


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1 (d) APPLICATION.—This section shall be applied in 

2 a manner consistent with United States obligations under 

3 international agreements. 

4 SEC. 3. WAGE RATE AND EMPLOYMENT PROTECTION RE5 QUIREMENTS. 

6 (a) IN GENERAL.—All laborers and mechanics em7 ployed on projects funded directly by, or assisted in whole 

8 or in part by and through, the Federal Government or 

9 any other entity established pursuant to this Act shall be 

10 paid wages at rates not less than those prevailing on 

11 projects of a character similar in the locality as deter12 mined by the Secretary of Labor in accordance with sub13 chapter IV of chapter 31 of title 40, United States Code. 

14 (b) AUTHORITY OF SECRETARY OF LABOR.—With 

15 respect to the labor standards specified in this section, the 

16 Secretary of Labor shall have the authority and functions 

17 set forth in Reorganization Plan Numbered 14 of 1950 

18 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 

19 40, United States Code. 

20 (c) EMPLOYEE PROTECTIVE ARRANGEMENTS.— 

21 Projects (as defined in section 47102 of title 49, United 

22 States Code) that are funded directly by, or assisted in 

23 whole or in part by and through, the Federal Government 

24 or any other entity established pursuant to this Act shall 


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1 be subject to the requirements under section 5333(b) of 

2 title 49, United States Code. 

3 TITLE I—CREATING JOBS 

4 THROUGH INFRASTRUCTURE 

5 MODERNIZATION 

6 Subtitle A—Immediate Transpor7 tation Infrastructure Invest8 ments 

9 SEC. 101. IMMEDIATE TRANSPORTATION INFRASTRUCTURE 

10 INVESTMENTS. 

11 (a) GRANTS-IN-AID FOR AIRPORTS.— 

12 (1) IN GENERAL.—There is made available to 

13 the Secretary of Transportation $2,000,000,000 to 

14 carry out airport improvement under subchapter I of 

15 chapter 471 and subchapter I of chapter 475 of title 

16 49, United States Code. 

17 (2) FEDERAL SHARE; LIMITATION ON OBLIGA18 TIONS.—The Federal share payable of the costs for 

19 which a grant is made under this subsection, shall 

20 be 100 percent. The amount made available under 

21 this subsection shall not be subject to any limitation 

22 on obligations for the Grants-In-Aid for Airports 

23 program set forth in any Act or in title 49, United 

24 States Code. 


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1 (3) DISTRIBUTION OF FUNDS.—Amounts pro2 vided to the Secretary under this subsection shall 

3 not be subject to apportionment formulas, special 

4 apportionment categories, or minimum percentages 

5 under chapter 471 of title 49, United States Code. 

6 (4) AVAILABILITY.—Amounts made available 

7 under this subsection shall be available for obligation 

8 during the 2-year period beginning on the date of 

9 the enactment of this Act. The Secretary shall obli10 gate not less than 50 percent of the such amounts 

11 not later than 1 year after the date of the enactment 

12 of this Act and obligate the remaining amounts not 

13 later than 2 years after such date of enactment. 

14 (5) ADMINISTRATIVE EXPENSES.—Of the 

15 amounts made available under this subsection, 0.3 

16 percent— 

17 (A) shall be available to the Secretary for 

18 administrative expenses; 

19 (B) shall remain available for obligation 

20 until September 30, 2015; and 

21 (C) may be used in conjunction with 

22 amounts otherwise provided for the administra23 tion of the Grants-In-Aid for Airports program. 

24 (b) NEXT GENERATION AIR TRAFFIC CONTROL AD25 VANCEMENTS.— 


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1 (1) IN GENERAL.—There is made available to 

2 the Secretary of Transportation $1,000,000,000 for 

3 necessary Federal Aviation Administration capital, 

4 research and operating costs to carry out Next Gen5 eration air traffic control system advancements. 

6 (2) AVAILABILITY.—The amounts made avail7 able under this subsection shall be available for obli8 gation during the 2-year period beginning on the 

9 date of the enactment of this Act. 

10 (c) HIGHWAY INFRASTRUCTURE INVESTMENT.— 

11 (1) IN GENERAL.—There is made available to 

12 the Secretary of Transportation $27,000,000,000 

13 for— 

14 (A) restoration, repair, construction and 

15 other activities eligible under section 133(b) of 

16 title 23, United States Code; and 

17 (B) passenger and freight rail transpor18 tation and port infrastructure projects eligible 

19 for assistance under section 601(a)(8) of title 

20 23, United States Code. 

21 (2) FEDERAL SHARE; LIMITATION ON OBLIGA22 TIONS.—The Federal share payable on account of 

23 any project or activity carried out with funds made 

24 available under this subsection shall be, at the op25 tion of the recipient, up to 100 percent of the total 


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1 cost of such project or activity. The amount made 

2 available under this subsection shall not be subject 

3 to any limitation on obligations for Federal-aid high4 ways and highway safety construction programs set 

5 forth in any Act or in title 23, United States Code. 

6 (3) AVAILABILITY.—The amounts made avail7 able under this subsection shall be available for obli8 gation during the 2-year period beginning on the 

9 date of the enactment of this Act. The Secretary 

10 shall obligate not less than 50 percent of the such 

11 amounts not later than 1 year after the date of the 

12 enactment of this Act and obligate the remaining 

13 amounts not later than 2 years after such date of 

14 enactment. 

15 (4) DISTRIBUTION OF FUNDS.— 

16 (A) APPORTIONMENT.—After making the 

17 set-asides required under paragraphs (8), (9), 

18 (10), (11), and (13), and not later than 30 days 

19 after the date of the enactment of this Act— 

20 (i) 50 percent of the remaining 

21 amounts made available under this sub22 section shall be apportioned to States 

23 using the formula set forth in section 

24 104(b)(3) of title 23, United States Code; 

25 and 


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1 (ii) the remaining amounts shall be 

2 apportioned to States in the same ratio as 

3 the obligation limitation for fiscal year 

4 2010 was distributed among the States in 

5 accordance with the formula specified in 

6 section 120(a)(6) of the Department of 

7 Transportation Appropriations Act, 2010 

8 (title I of division A of Public Law 111– 

9 117). 

10 (B) STATE PLANNING AND OVERSIGHT EX11 PENSES.—Of amounts apportioned under sub12 paragraph (A), a State may use up to 0.5 per13 cent for activities related to projects funded 

14 under this subsection, including activities eligi15 ble under sections 134 and 135 of title 23, 

16 United States Code, State administration of 

17 subgrants, and State oversight of subrecipients. 

18 (5) REDISTRIBUTION.— 

19 (A) INITIAL ALLOCATION.—The Secretary 

20 shall, 180 days following the date of apportion21 ment, withdraw from each State an amount 

22 equal to 50 percent of the funds apportioned 

23 under paragraph (4) to that State (excluding 

24 funds suballocated within the State) less the 

25 amount of funding obligated (excluding funds 


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1 suballocated within the State), and the Sec2 retary shall redistribute such amounts to other 

3 States that have had no funds withdrawn under 

4 this subparagraph in the manner described in 

5 section 120(c) of division A of Public Law 111– 

6 117. 

7 (B) SUBSEQUENT ALLOCATION.—One year 

8 following the date of apportionment, the Sec9 retary shall withdraw from each recipient of 

10 funds apportioned under paragraph (4) any un11 obligated funds, and the Secretary shall redis12 tribute such amounts to States that have had 

13 no funds withdrawn under this paragraph (ex14 cluding funds suballocated within the State) in 

15 the manner described in section 120(c) of divi16 sion A of Public Law 111–117. 

17 (C) EXTENSION.—At the request of a 

18 State, the Secretary may provide an extension 

19 of the 1-year period only to the extent that the 

20 Secretary determines that the State has en21 countered extreme conditions that create an un22 workable bidding environment or other extenu23 ating circumstances. Before granting an exten24 sion, the Secretary shall provide a thorough jus25 tification for the extension in a written notificaVerDate Mar 15 2010 23:04 Nov 01, 2011 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1769.PCS S1769

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1 tion submitted to the Committee on Environ2 ment and Public Works of the Senate and the 

3 Committee on Transportation and Infrastruc4 ture of the House of Representatives. 

5 (6) TRANSPORTATION ENHANCEMENTS.—Three 

6 percent of the amounts apportioned to a State under 

7 paragraph (4) shall be set aside for the purposes de8 scribed in section 133(d)(2) of title 23, United 

9 States Code (without regard to the comparison to 

10 fiscal year 2005). 

11 (7) SUBALLOCATION.—Thirty percent of the 

12 amounts apportioned to a State under this sub13 section shall be suballocated within the State in the 

14 manner and for the purposes described in the first 

15 sentence of sections 133(d)(3)(A), 133(d)(3)(B), and 

16 133(d)(3)(D) of title 23, United States Code. Such 

17 suballocation shall be conducted in every State. 

18 Amounts suballocated within a State to urbanized 

19 areas and other areas shall not be subject to the re20 distribution of amounts required 180 days after the 

21 date of apportionment of funds provided by para22 graph (6)(A). 

23 (8) PUERTO RICO AND TERRITORIAL HIGHWAY

24 PROGRAMS.—Of the amounts provided under this 

25 subsection, $105,000,000 shall be set aside for the 


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1 Puerto Rico highway program authorized under sec2 tion 165 of title 23, United States Code, and 

3 $45,000,000 shall be for the territorial highway pro4 gram authorized under section 215 of title 23, 

5 United States Code. 

6 (9) FEDERAL LANDS AND INDIAN RESERVA7 TIONS.—Of the amounts provided under this sub8 section, $550,000,000 shall be set aside for invest9 ments in transportation at Indian reservations and 

10 Federal lands in accordance with the following re11 quirements: 

12 (A) Of the funds set aside by this para13 graph, $310,000,000 shall be for the Indian 

14 Reservation Roads program, $170,000,000 

15 shall be for the Park Roads and Parkways pro16 gram, $60,000,000 shall be for the Forest 

17 Highway Program, and $10,000,000 shall be 

18 for the Refuge Roads program. 

19 (B) For investments at Indian reservations 

20 and Federal lands, priority shall be given to 

21 capital investments, and to projects and activi22 ties that can be completed within 2 years of en23 actment of this Act. 

24 (C) One year following the enactment of 

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1 ing provided for investments at Indian reserva2 tions and Federal lands, the Secretary shall 

3 have the authority to redistribute unobligated 

4 funds within the respective program for which 

5 the funds were appropriated. 

6 (D) Up to 4 percent of the funding pro7 vided for Indian Reservation Roads may be 

8 used by the Secretary of the Interior for pro9 gram management and oversight and project-re10 lated administrative expenses. 

11 (E) Section 134(f)(3)(C)(ii)(II) of title 23, 

12 United States Code, shall not apply to funds set 

13 aside under this paragraph. 

14 (10) JOB TRAINING.— 

15 (A) IN GENERAL.—Of the amounts pro16 vided under this subsection, $50,000,000 shall 

17 be set aside for the development and adminis18 tration of transportation training programs 

19 under section 140(b) title 23, United States 

20 Code. 

21 (B) COMPETITIVE AWARD.—Amounts set 

22 aside under this paragraph shall be competi23 tively awarded and used for the purpose of pro24 viding training, apprenticeship (including Reg25 istered Apprenticeship), skill development, and 


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1 skill improvement programs, as well as summer 

2 transportation institutes and may be trans3 ferred to, or administered in partnership with, 

4 the Secretary of Labor and shall demonstrate 

5 to the Secretary of Transportation program 

6 outcomes, including— 

7 (i) impact on areas with transpor8 tation workforce shortages; 

9 (ii) diversity of training participants; 

10 (iii) number of participants obtaining 

11 certifications or credentials required for 

12 specific types of employment; 

13 (iv) employment outcome metrics, 

14 such as job placement and job retention 

15 rates, established in consultation with the 

16 Secretary of Labor and consistent with 

17 metrics used by programs under the Work18 force Investment Act; 

19 (v) to the extent practical, evidence 

20 that the program did not preclude workers 

21 that participate in training or apprentice22 ship activities under the program from 

23 being referred to, or hired on, projects 

24 funded under this chapter; and 


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1 (vi) identification of areas of collabo2 ration with the Department of Labor pro3 grams, including co-enrollment. 

4 (C) CERTIFICATION.—To be eligible to re5 ceive a competitively awarded grant under this 

6 subsection, a State must certify that at least 

7 0.1 percent of the amounts apportioned under 

8 the Surface Transportation Program and 

9 Bridge Program will be obligated in the first 

10 fiscal year after the date of the enactment of 

11 this Act for job training activities, in accord12 ance with section 140(b) of title 23, United 

13 States Code. 

14 (11) DISADVANTAGED BUSINESS ENTER15 PRISES.—Of the amounts provided under this sub16 section, $10,000,000 shall be set aside for training 

17 programs and assistance programs under section 

18 140(c) of title 23, United States Code. Amounts set 

19 aside under this paragraph should be allocated to 

20 businesses that have proven success in adding staff 

21 while effectively completing projects. 

22 (12) CONDITIONS.—Amounts made available 

23 under this subsection— 


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1 (A) shall be administered as if apportioned 

2 under chapter 1 of title 23, United States Code, 

3 except for— 

4 (i) amounts made available for invest5 ments in transportation at Indian reserva6 tions and Federal lands and for the terri7 torial highway program, which shall be ad8 ministered in accordance with chapter 2 of 

9 such title 23; and 

10 (ii) amounts made available for dis11 advantaged business enterprises bonding 

12 assistance, which shall be administered in 

13 accordance with chapter 3 of title 49, 

14 United States Code; 

15 (B) may not be obligated for the purposes 

16 authorized under section 115(b) of title 23, 

17 United States Code; 

18 (C) shall be in addition to any and all 

19 funds provided for fiscal years 2011 and 2012 

20 in any other Act for ‘‘Federal-aid Highways’’ 

21 and shall not affect the distribution of funds 

22 provided for ‘‘Federal-aid Highways’’ in any 

23 other Act; and 


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1 (D) shall be subject to the requirements 

2 under section 1101(b) of SAFETEA-LU (Pub3 lic Law 109–59). 

4 (13) OVERSIGHT.—The Administrator of the 

5 Federal Highway Administration may set aside up 

6 to 0.15 percent of the amounts provided under this 

7 subsection to fund the oversight by the Adminis8 trator of projects and activities carried out with 

9 amounts made available to the Federal Highway Ad10 ministration under this Act. Such amounts shall be 

11 available through September 30, 2015. 

12 (d) CAPITAL ASSISTANCE FOR HIGH-SPEED RAIL

13 CORRIDORS AND INTERCITY PASSENGER RAIL SERV14 ICE.— 

15 (1) IN GENERAL.— 

16 (A) GRANTS.—There is made available to 

17 the Secretary of Transportation 

18 $4,000,000,000, which shall be used— 

19 (i) for grants for high-speed rail 

20 projects authorized under sections 26104 

21 and 26106 of title 49, United States Code 

22 (ii) for capital investment grants to 

23 support intercity passenger rail service au24 thorized under section 24406 of such title 

25 49; 


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1 (iii) congestion grants authorized 

2 under section 24105 of such title 49; and 

3 (iv) to enter into cooperative agree4 ments for the purposes set forth in clauses 

5 (i) through (iii). 

6 (B) OVERSIGHT.—The Administrator of 

7 the Federal Railroad Administration may retain 

8 up to 1 percent of the amounts made available 

9 under subparagraph (A) for award and over10 sight by the Administrator of the grants made 

11 under this subsection. Such amount shall re12 main available for obligation until September 

13 30, 2015. 

14 (2) AVAILABILITY.—The amounts made avail15 able under this subsection shall be available for obli16 gation during the 2-year period beginning on the 

17 date of the enactment of this Act. The Secretary 

18 shall obligate not less than 50 percent of the such 

19 amounts not later than 1 year after the date of the 

20 enactment of this Act and obligate the remaining 

21 amounts not later than 2 years after such date of 

22 enactment. 

23 (3) FEDERAL SHARE.—The Federal share pay24 able of the costs for which a grant or cooperative 


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1 agreements is made under this subsection shall be, 

2 at the option of the recipient, up to 100 percent. 

3 (4) INTERIM GUIDANCE.—The Secretary shall 

4 issue interim guidance to applicants covering appli5 cation procedures and administer the grants pro6 vided under this subsection pursuant to that guid7 ance until final regulations are issued. 

8 (5) INTERCITY PASSENGER RAIL CORRIDORS.— 

9 Not less than 85 percent of the amounts provided 

10 under this subsection shall be for cooperative agree11 ments that lead to the development of entire seg12 ments or phases of intercity or high-speed rail cor13 ridors. 

14 (6) CONDITIONS.— 

15 (A) In addition to the provisions of title 

16 49, United States Code, that apply to each of 

17 the individual programs funded under this sub18 section, subsections (a)(2) and (i) of section 

19 24402(i) of title 49, United States Code, and 

20 subsections (a) and (c) of section 24403 of such 

21 title 49, shall also apply to amounts provided 

22 under this subsection. 

23 (B) A project need not be in a State rail 

24 plan developed under chapter 227 of title 49, 


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1 United States Code, to be eligible for assistance 

2 under this subsection. 

3 (C) Recipients of grants under this para4 graph shall conduct all procurement trans5 actions using such grant funds in a manner 

6 that provides full and open competition, as de7 termined by the Secretary, in compliance with 

8 existing labor agreements. 

9 (e) CAPITAL GRANTS TO THE NATIONAL RAILROAD

10 PASSENGER CORPORATION.— 

11 (1) IN GENERAL.—There is made available 

12 $2,000,000,000 to the Secretary of Transportation 

13 to award capital grants to the National Railroad 

14 Passenger Corporation (Amtrak), as authorized by 

15 section 101(c) of the Passenger Rail Investment and 

16 Improvement Act of 2008 (Public Law 110–432). 

17 (2) AVAILABILITY.—The amounts made avail18 able under this subsection shall be available for obli19 gation during the 2-year period beginning on the 

20 date of the enactment of this Act. The Secretary 

21 shall obligate not less than 50 percent of the such 

22 amounts not later than 1 year after the date of the 

23 enactment of this Act and obligate the remaining 

24 amounts not later than 2 years after such date of 

25 enactment. 


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1 (3) PROJECT PRIORITY.—The priority for the 

2 use of funds shall be given to projects for the repair, 

3 rehabilitation, or upgrade of railroad assets or infra4 structure, and for capital projects that expand pas5 senger rail capacity including the rehabilitation of 

6 rolling stock. 

7 (4) CONDITIONS.— 

8 (A) None of the amounts under this sub9 section shall be used to subsidize the operating 

10 losses of Amtrak. 

11 (B) Amounts provided under this sub12 section shall be awarded not later than 90 days 

13 after the date of the enactment of this Act. 

14 (C) The Secretary shall take measures to 

15 ensure that projects funded under this sub16 section shall be completed not later than 2 

17 years after the date of the enactment of this 

18 Act, and shall serve to supplement and not sup19 plant planned expenditures for such activities 

20 from other Federal, State, local and corporate 

21 sources. The Secretary shall submit written cer22 tification to the Committee on Appropriations 

23 of the Senate and the Committee on Armed 

24 Services of the House of Representatives that 


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1 the Secretary is in compliance with this sub2 paragraph. 

3 (5) OVERSIGHT.—The Administrator of the 

4 Federal Railroad Administration may set aside 0.5 

5 percent of the amounts provided under this sub6 section to fund the oversight by the Administrator of 

7 projects and activities carried out with funds made 

8 available in this subsection, and such amounts shall 

9 be available through September 30, 2015. 

10 (f) TRANSIT CAPITAL ASSISTANCE.— 

11 (1) IN GENERAL.—There is made available to 

12 the Secretary of Transportation $3,000,000,000 for 

13 grants for transit capital assistance grants as de14 fined by section 5302(a)(1) of title 49, United 

15 States Code. Notwithstanding any provision of chap16 ter 53 of such title 49, a recipient of funding under 

17 this subsection may use up to 10 percent of such 

18 funding for the operating costs of equipment and fa19 cilities for use in public transportation or for other 

20 eligible activities. 

21 (2) FEDERAL SHARE; LIMITATION ON OBLIGA22 TIONS.—The applicable requirements of chapter 53 

23 of title 49, United States Code, shall apply to fund24 ing provided under this subsection, except that the 

25 Federal share of the costs for which any grant is 


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1 made under this subsection shall be, at the option of 

2 the recipient, up to 100 percent. The amount made 

3 available under this subsection shall not be subject 

4 to any limitation on obligations for transit programs 

5 set forth in any Act or chapter 53 of title 49, United 

6 States Code. 

7 (3) AVAILABILITY.—The amounts made avail8 able under this subsection shall be available for obli9 gation during the 2-year period beginning on the 

10 date of the enactment of this Act. The Secretary 

11 shall obligate not less than 50 percent of the such 

12 amounts not later than 1 year after the date of the 

13 enactment of this Act and obligate the remaining 

14 amounts not later than 2 years after such date of 

15 enactment. 

16 (4) DISTRIBUTION OF FUNDS.—The Secretary 

17 of Transportation shall— 

18 (A) provide 80 percent of the funds appro19 priated under this subsection for grants under 

20 section 5307 of title 49, United States Code, 

21 and apportion such funds in accordance with 

22 section 5336 of such title; 

23 (B) provide 10 percent of the funds appro24 priated under this subsection in accordance 

25 with section 5340 of such title; and 


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1 (C) provide 10 percent of the funds appro2 priated under this subsection for grants under 

3 section 5311 of title 49, United States Code, 

4 and apportion such funds in accordance with 

5 such section. 

6 (5) APPORTIONMENT.—Amounts apportioned 

7 under this subsection shall be apportioned not later 

8 than 21 days after the date of the enactment of this 

9 Act. 

10 (6) REDISTRIBUTION.— 

11 (A) INITIAL ALLOCATION.—The Secretary 

12 of Transportation shall, 180 days following the 

13 date of apportionment, withdraw from each ur14 banized area or State an amount equal to 50 

15 percent of the amounts apportioned to such ur16 banized areas or States less the amount of 

17 funding obligated, and the Secretary shall redis18 tribute such amounts to other urbanized areas 

19 or States that have had no funds withdrawn 

20 under this subparagraph utilizing whatever 

21 method the determines to be appropriate to en22 sure that all funds redistributed under this sub23 paragraph shall be utilized promptly. 

24 (B) SUBSEQUENT ALLOCATION.—One year 

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1 retary shall withdraw from each urbanized area 

2 or State any unobligated funds, and the Sec3 retary shall redistribute such amounts to other 

4 urbanized areas or States that have had no 

5 amounts withdrawn under this paragraph uti6 lizing whatever method the determines to be ap7 propriate to ensure that all funds redistributed 

8 under this subparagraph shall be utilized 

9 promptly. 

10 (C) EXTENSION.—At the request of an ur11 banized area or State, the Secretary may pro12 vide an extension of the 1-year period only to 

13 the extent that the Secretary determines that 

14 the urbanized area or State has encountered an 

15 unworkable bidding environment or other ex16 tenuating circumstances. Before granting an ex17 tension, the Secretary shall provide a thorough 

18 justification for the extension in a written noti19 fication submitted to the Committee on Envi20 ronment and Public Works of the Senate and 

21 the Committee on Transportation and Infra22 structure of the House of Representatives. 

23 (7) CONDITIONS.— 

24 (A) Of the amounts provided for section 

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1 cent shall be made available for subsection 

2 (c)(1) of such section. 

3 (B) Amounts appropriated under this sub4 section shall be subject to the requirements 

5 under section 1101(b) of SAFETEA-LU (Pub6 lic Law 109–59). 

7 (C) Amounts appropriated under this sub8 section may not be commingled with amounts 

9 appropriated in any prior fiscal year. 

10 (8) OVERSIGHT.—Notwithstanding any other 

11 provision of law— 

12 (A) 0.3 percent of the amounts provided 

13 for grants under sections 5307 and 5340 of 

14 title 49, United States Code, and 0.3 percent of 

15 the amounts provided for grants under section 

16 5311 of such title 49, shall be available for ad17 ministrative expenses and program management 

18 oversight; and 

19 (B) amounts set aside under subparagraph 

20 (A) shall be available through September 30, 

21 2015. 

22 (g) STATE OF GOOD REPAIR.— 

23 (1) IN GENERAL.—There is made available to 

24 the Secretary of Transportation $6,000,000,000 for 

25 capital expenditures authorized under paragraphs 


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1 (2) and (3) of section 5309(b) of title 49, United 

2 States Code. 

3 (2) FEDERAL SHARE.—The applicable require4 ments under chapter 53 of title 49, United States 

5 Code, shall apply to amounts made available under 

6 this subsection, except that the Federal share of the 

7 costs for which a grant is made under this sub8 section shall be, at the option of the recipient, up to 

9 100 percent. 

10 (3) AVAILABILITY.—The amounts made avail11 able under this subsection shall be available for obli12 gation during the 2-year period beginning on the 

13 date of the enactment of this Act. The Secretary 

14 shall obligate not less than 50 percent of the such 

15 amounts not later than 1 year after the date of the 

16 enactment of this Act and obligate the remaining 

17 amounts not later than 2 years after such date of 

18 enactment. 

19 (4) DISTRIBUTION OF FUNDS.— 

20 (A) FIXED GUIDEWAY SYSTEMS.—Not 

21 later than 30 days after the date of the enact22 ment of this Act, the Secretary of Transpor23 tation shall apportion not less than 75 percent 

24 of the amounts made available under this sub25 section for the modernization of fixed guideway 


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1 systems pursuant to the formula set forth in 

2 section 5336(b) title 49, United States Code 

3 (other than paragraph (2)(A)(ii)). 

4 (B) BUS SYSTEMS.—Not later than 30 

5 days after the date of the enactment of this 

6 Act, the Secretary of Transportation shall ap7 portion not less than 25 percent of the amounts 

8 appropriated under this subsection for the res9 toration or replacement of existing public trans10 portation assets related to bus systems pursu11 ant to the formula set forth in section 5336 

12 (other than subsection (b)). 

13 (5) REDISTRIBUTION.— 

14 (A) INITIAL ALLOCATION.—The Secretary 

15 of Transportation shall, 180 days following the 

16 date of apportionment, withdraw from each ur17 banized area an amount equal to 50 percent of 

18 the amounts apportioned to such urbanized 

19 area less the amount of funding obligated, and 

20 the Secretary shall redistribute such amounts to 

21 other urbanized areas that have had no funds 

22 withdrawn under this paragraph utilizing what23 ever method the determines to be appropriate to 

24 ensure that all funds redistributed under this 

25 subparagraph shall be utilized promptly. 


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1 (B) SUBSEQUENT ALLOCATION.—One year 

2 after the date of apportionment, the Secretary 

3 shall withdraw from each urbanized area any 

4 unobligated funds, and the Secretary shall re5 distribute such amounts to other urbanized 

6 areas that have had no amounts withdrawn 

7 under this paragraph utilizing whatever method 

8 the determines to be appropriate to ensure that 

9 all funds redistributed under this subparagraph 

10 shall be utilized promptly. 

11 (C) EXTENSION.—At the request of an ur12 banized area, the Secretary may provide an ex13 tension of the 1-year period if the Secretary de14 termines that the urbanized area has encoun15 tered an unworkable bidding environment or 

16 other extenuating circumstances. Before grant17 ing an extension, the Secretary shall provide a 

18 thorough justification for the extension in a 

19 written notification submitted to the Committee 

20 on Environment and Public Works of the Sen21 ate and the Committee on Transportation and 

22 Infrastructure of the House of Representatives. 

23 (6) CONDITIONS.— 

24 (A) Amounts appropriated under this sub25 section shall be subject to the requirements 


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1 under section 1101(b) of SAFETEA-LU (Pub2 lic Law 109–59). 

3 (B) Amounts appropriated under this sub4 section may not be commingled with amounts 

5 appropriated in any prior fiscal year. 

6 (7) OVERSIGHT.—Notwithstanding any other 

7 provision of law, 0.3 percent of the funds under this 

8 subsection shall be available for administrative ex9 penses and program management oversight and shall 

10 remain available for obligation until September 30, 

11 2015. 

12 (h) TRANSPORTATION INFRASTRUCTURE GRANTS

13 AND FINANCING.— 

14 (1) IN GENERAL.—There is made available to 

15 the Secretary of Transportation $5,000,000,000 for 

16 capital investments in surface transportation infra17 structure. The Secretary shall distribute amounts 

18 made available under this subsection as discretionary 

19 grants to be awarded to State and local governments 

20 or transit agencies on a competitive basis for 

21 projects that will have a significant impact on the 

22 Nation, a metropolitan area, or a region. 

23 (2) FEDERAL SHARE; LIMITATION ON OBLIGA24 TIONS.—The Federal share payable of the costs for 


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1 which a grant is made under this subsection shall be 

2 100 percent. 

3 (3) AVAILABILITY.—The amounts made avail4 able under this subsection shall be available for obli5 gation during the 2-year period beginning on the 

6 date of the enactment of this Act. The Secretary 

7 shall obligate not less than 50 percent of the such 

8 amounts not later than 1 year after the date of the 

9 enactment of this Act and obligate the remaining 

10 amounts not later than 2 years after such date of 

11 enactment. 

12 (4) PROJECT ELIGIBILITY.—Projects eligible for 

13 funding provided under this subsection include— 

14 (A) highway or bridge projects eligible 

15 under title 23, United States Code, including 

16 interstate rehabilitation, improvements to the 

17 rural collector road system, the reconstruction 

18 of overpasses and interchanges, bridge replace19 ments, seismic retrofit projects for bridges, and 

20 road realignments; 

21 (B) public transportation projects eligible 

22 under chapter 53 of title 49, United States 

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1 grams that will expedite the completion of those 

2 projects and their entry into revenue service; 

3 (C) passenger and freight rail transpor4 tation projects; and 

5 (D) port infrastructure investments, in6 cluding projects that connect ports to other 

7 modes of transportation and improve the effi8 ciency of freight movement. 

9 (5) TIFIA PROGRAM.—The Secretary may 

10 transfer amounts made available under this sub11 section to the Federal Highway Administration for 

12 the purpose of paying the subsidy and administrative 

13 costs of projects eligible for federal credit assistance 

14 under chapter 6 of title 23, United States Code, if 

15 the Secretary determines that such use would ad16 vance the purposes of this subsection. 

17 (6) PROJECT PRIORITY.—The Secretary shall 

18 give priority to projects that are expected to be com19 pleted not later than 3 years after the date of the 

20 enactment of this Act. 

21 (7) DEADLINE FOR ISSUANCE OF COMPETITION

22 CRITERIA.—Not later than 90 days after the date of 

23 the enactment of this Act, the Secretary shall pub24 lish criteria on which to base the competition for any 

25 grants awarded under this subsection. The Secretary 


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1 shall require applications for funding under this sub2 section to be submitted not later than 180 days after 

3 the publication of the criteria, and announce all 

4 projects selected to be funded from such amounts 

5 not later than 1 year after the date of the enactment 

6 of the Act. 

7 (8) APPLICABILITY OF TITLE 40, UNITED

8 STATES CODE.—Each project conducted using funds 

9 provided under this subsection shall comply with the 

10 requirements under subchapter IV of chapter 31 of 

11 title 40, United States Code. 

12 (9) ADMINISTRATIVE EXPENSES.—The Sec13 retary may retain up to 0.5 percent of the amounts 

14 provided under this subsection, and may transfer 

15 portions of those funds to the Administrator of the 

16 Federal Highway Administration, the Administrator 

17 of the Federal Transit Administration, the Adminis18 trator of the Federal Railroad Administration, and 

19 the Administrator of the Maritime Administration, 

20 to fund the award and oversight of grants made 

21 under this subsection. Amounts retained under this 

22 paragraph shall remain available for obligation until 

23 September 30, 2015. 

24 (i) LOCAL HIRING.— 


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1 (1) IN GENERAL.—With regard to the funding 

2 made available under subsections (a) through (h), 

3 the Secretary of Transportation may establish stand4 ards under which a contract for construction may be 

5 advertised that contains requirements for the em6 ployment of individuals residing in or adjacent to 

7 any of the areas in which the work is to be per8 formed to perform construction work required under 

9 the contract, if— 

10 (A) all or part of the construction work 

11 performed under the contract occurs in an area 

12 designated by the Secretary as an area of high 

13 unemployment, using data reported by the 

14 United States Department of Labor, Bureau of 

15 Labor Statistics; 

16 (B) the estimated cost of the project of 

17 which the contract is a part is greater than 

18 $10,000,000, except that the estimated cost of 

19 the project in the case of construction funded 

20 under subsection (c) shall be greater than 

21 $50,000,000; and 

22 (C) the recipient may not require the hir23 ing of individuals who do not have the nec24 essary skills to perform work in any craft or 

25 trade unless the recipient establishes reasonable 


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1 provisions to train such individuals to perform 

2 any such work under the contract effectively. 

3 (2) PROJECT STANDARDS.— 

4 (A) IN GENERAL.—Any standards estab5 lished by the Secretary under this section shall 

6 ensure that any requirements under subsection 

7 (c)(1)— 

8 (i) do not compromise the quality of 

9 the project; 

10 (ii) are reasonable in scope and appli11 cation; 

12 (iii) do not unreasonably delay the 

13 completion of the project; and 

14 (iv) do not unreasonably increase the 

15 cost of the project. 

16 (B) AVAILABLE PROGRAMS.—A portion of 

17 the amounts made available under subsections 

18 (a) through (h) may be allocated by the recipi19 ents of such funding for training programs that 

20 comply with paragraph (1)(C). The Secretary of 

21 Labor shall make available its qualifying work22 force and training development programs to re23 cipients desiring to establish training programs 

24 that comply with paragraph (1)(C). 


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1 (3) IMPLEMENTING REGULATIONS.—The Sec2 retary shall promulgate final regulations to imple3 ment this subsection. 

4 (j) ADMINISTRATIVE PROVISIONS.— 

5 (1) APPLICABILITY OF TITLE 40.—Each project 

6 using amounts provided under this section shall 

7 comply with the requirements under subchapter IV 

8 of chapter 31 of title 40, United States Code. 

9 (2) BUY AMERICAN.—Section 1605 of division 

10 A of the American Recovery and Reinvestment Act 

11 of 2009 (Public Law 111–5) shall apply to each 

12 project conducted using amounts made available 

13 under this section. 

14 Subtitle B—Building and Upgrad15 ing Infrastructure for Long16 term Development 

17 SEC. 121. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘Building and Up19 grading Infrastructure for Long-Term Development’’. 

20 SEC. 122. FINDINGS AND PURPOSE. 

21 (1) FINDINGS.—Congress finds that— 

22 (A) infrastructure has always been a vital 

23 element of the economic strength of the United 

24 States and a key indicator of the international 

25 leadership of the United States; 


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1 (B) the Erie Canal, the Hoover Dam, the 

2 railroads, and the interstate highway system 

3 are all testaments to American ingenuity and 

4 have helped propel and maintain the United 

5 States as the world’s largest economy; 

6 (C) according to the World Economic Fo7 rum’s Global Competitiveness Report, the 

8 United States fell to second place in 2009, and 

9 dropped to fourth place overall in 2010, how10 ever, in the ‘‘Quality of overall infrastructure’’ 

11 category of the same report, the United States 

12 ranked 23rd in the world; 

13 (D) according to the World Bank’s 2010 

14 Logistic Performance Index, the capacity of 

15 countries to efficiently move goods and connect 

16 manufacturers and consumers with inter17 national markets is improving around the 

18 world, and the United States now ranks seventh 

19 in the world in logistics-related infrastructure 

20 behind countries from both Europe and Asia; 

21 (E) according to a January 2009 report 

22 from the University of Massachusetts/Alliance 

23 for American Manufacturing entitled ‘‘Employ24 ment, Productivity and Growth,’’ infrastructure 


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1 investment is a ‘‘highly effective engine of job 

2 creation’’; 

3 (F) according to the American Society of 

4 Civil Engineers, the current condition of the in5 frastructure in the United States earns a grade 

6 point average of D, and an estimated 

7 $2,200,000,000,000 investment is needed over 

8 the next 5 years to bring American infrastruc9 ture up to adequate condition; 

10 (G) according to the National Surface 

11 Transportation Policy and Revenue Study Com12 mission, $225,000,000,000 is needed annually 

13 from all sources for the next 50 years to up14 grade the United States surface transportation 

15 system to a state of good repair and create a 

16 more advanced system; 

17 (H) the current infrastructure financing 

18 mechanisms of the United States, both on the 

19 Federal and State level, will fail to meet current 

20 and foreseeable demands and will create large 

21 funding gaps; 

22 (I) published reports state that there may 

23 not be enough demand for municipal bonds to 

24 maintain the same level of borrowing at the 

25 same rates, resulting in significantly decreased 


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1 infrastructure investment at the State and local 

2 level; 

3 (J) current funding mechanisms are not 

4 readily scalable and do not— 

5 (i) serve large in-State or cross juris6 diction infrastructure projects, projects of 

7 regional or national significance, or 

8 projects that cross sector silos; 

9 (ii) sufficiently catalyze private sector 

10 investment; or 

11 (iii) ensure the optimal return on pub12 lic resources; 

13 (K) although grant programs of the United 

14 States Government must continue to play a 

15 central role in financing the transportation, en16 vironment, and energy infrastructure needs of 

17 the United States, current and foreseeable de18 mands on existing Federal, State, and local 

19 funding for infrastructure expansion clearly ex20 ceed the resources to support these programs 

21 by margins wide enough to prompt serious con22 cerns about the United States ability to sustain 

23 long-term economic development, productivity, 

24 and international competitiveness; 


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1 (L) the capital markets, including pension 

2 funds, private equity funds, mutual funds, sov3 ereign wealth funds, and other investors, have 

4 a growing interest in infrastructure investment 

5 and represent hundreds of billions of dollars of 

6 potential investment; and 

7 (M) the establishment of a United States 

8 Government-owned, independent, professionally 

9 managed institution that could provide credit 

10 support to qualified infrastructure projects of 

11 regional and national significance, making 

12 transparent merit-based investment decisions 

13 based on the commercial viability of infrastruc14 ture projects, would catalyze the participation 

15 of significant private investment capital. 

16 (2) PURPOSE.—The purpose of this subtitle is 

17 to facilitate investment in, and long-term financing 

18 of, economically viable infrastructure projects of re19 gional or national significance in a manner that— 

20 (A) complements existing Federal, State, 

21 local, and private funding sources for these 

22 projects; 

23 (B) introduces a merit-based system for fi24 nancing such projects; and 


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1 (C) mobilizes significant private sector in2 vestment, creates jobs, and ensures United 

3 States competitiveness through an institution 

4 that limits the need for ongoing Federal fund5 ing. 

6 SEC. 123. DEFINITIONS. 

7 In this subtitle: 

8 (1) AIFA.—The term ‘‘AIFA’’ means the 

9 American Infrastructure Financing Authority estab10 lished under this subtitle. 

11 (2) BLIND TRUST.—The term ‘‘blind trust’’ 

12 means a trust in which the beneficiary has no knowl13 edge of the specific holdings and no rights over how 

14 those holdings are managed by the fiduciary of the 

15 trust prior to the dissolution of the trust. 

16 (3) BOARD OF DIRECTORS.—The term ‘‘Board 

17 of Directors’’ means Board of Directors of AIFA. 

18 (4) CHAIRPERSON.—The term ‘‘Chairperson’’ 

19 means the Chairperson of the Board of Directors of 

20 AIFA. 

21 (5) CHIEF EXECUTIVE OFFICER.—The term 

22 ‘‘chief executive officer’’ means the chief executive 

23 officer of AIFA, appointed under section 126. 

24 (6) COST; DIRECT LOAN.—The terms ‘‘cost’’ 

25 and ‘‘direct loan’’ have the meanings given such 


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1 terms in section 502 of the Federal Credit Reform 

2 Act of 1990 (2 U.S.C. 661a). 

3 (7) ELIGIBLE ENTITY.—The term ‘‘eligible enti4 ty’’ means an individual, corporation, partnership 

5 (including a public-private partnership), joint ven6 ture, trust, State, or other non-Federal govern7 mental entity, including a political subdivision or any 

8 other instrumentality of a State, or a revolving fund. 

9 (8) INFRASTRUCTURE PROJECTS.— 

10 (A) IN GENERAL.—The term ‘‘eligible in11 frastructure project’’ means any non-Federal 

12 transportation, water, or energy infrastructure 

13 project, or an aggregation of such infrastruc14 ture projects, as provided in this subtitle. 

15 (B) TRANSPORTATION INFRASTRUCTURE

16 PROJECT.—The term ‘‘transportation infra17 structure project’’ means the construction, al18 teration, or repair, including the facilitation of 

19 intermodal transit, of the following subsectors: 

20 (i) Highway or road. 

21 (ii) Bridge. 

22 (iii) Mass transit. 

23 (iv) Inland waterways. 

24 (v) Commercial ports. 

25 (vi) Airports. 


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1 (vii) Air traffic control systems. 

2 (viii) Passenger rail, including high3 speed rail. 

4 (ix) Freight rail systems. 

5 (C) WATER INFRASTRUCTURE PROJECT.— 

6 The term ‘‘water infrastructure project’’ means 

7 the construction, consolidation, alteration, or 

8 repair of the following subsectors: 

9 (i) Wastewater treatment facility. 

10 (ii) Storm water management system. 

11 (iii) Dam. 

12 (iv) Solid waste disposal facility. 

13 (v) Drinking water treatment facility. 

14 (vi) Levee. 

15 (vii) Open space management system. 

16 (D) ENERGY INFRASTRUCTURE

17 PROJECT.—The term ‘‘energy infrastructure 

18 project’’ means the construction, alteration, or 

19 repair of the following subsectors: 

20 (i) Pollution reduced energy genera21 tion. 

22 (ii) Transmission and distribution. 

23 (iii) Storage. 


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1 (iv) Energy efficiency enhancements 

2 for buildings, including public and com3 mercial buildings. 

4 (E) BOARD AUTHORITY TO MODIFY SUB5 SECTORS.—The Board of Directors may make 

6 modifications to the subsectors set forth in sub7 paragraphs (B) through (D) by a vote of not 

8 fewer than 5 of the voting members of the 

9 Board of Directors. 

10 (9) INVESTMENT PROSPECTUS.— 

11 (A) IN GENERAL.—The term ‘‘investment 

12 prospectus’’ means the processes and publica13 tions described in this subsection that will guide 

14 the priorities and strategic focus for the Bank’s 

15 investments. The investment prospectus shall 

16 follow rulemaking procedures under section 553 

17 of title 5, United States Code. 

18 (B) PUBLICATION.—Not later than 1 year 

19 after the date of the enactment of this Act, the 

20 Bank shall publish a detailed description of its 

21 strategy in an Investment Prospectus that— 

22 (i) specifies what the Bank shall con23 sider significant to the economic competi24 tiveness of the United States or a region 


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1 thereof in a manner consistent with the 

2 primary objective; 

3 (ii) specifies the priorities and stra4 tegic focus of the Bank in forwarding its 

5 strategic objectives and carrying out the 

6 Bank strategy; 

7 (iii) specifies the priorities and stra8 tegic focus of the Bank in promoting 

9 greater efficiency in the movement of 

10 freight; 

11 (iv) specifies the priorities and stra12 tegic focus of the Bank in promoting the 

13 use of innovation and best practices in the 

14 planning, design, development and delivery 

15 of projects; 

16 (v) describes in detail the framework 

17 and methodology for calculating applica18 tion qualification scores and associated 

19 ranges as specified in this subchapter, 

20 along with the data to be requested from 

21 applicants and the mechanics of calcula22 tions to be applied to that data to deter23 mine qualification scores and ranges; 

24 (vi) describes how selection criteria 

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1 cer in determining the competitiveness of 

2 an application and its qualification score 

3 and range relative to other current applica4 tions and previously funded applications; 

5 and 

6 (vii) describes how the qualification 

7 score and range methodology and project 

8 selection framework are consistent with 

9 maximizing the Bank goals in urban and 

10 rural areas. 

11 (C) APPROVAL.—The Investment Pro12 spectus and any subsequent updates to the In13 vestment Prospectus shall be approved by a ma14 jority vote of the Board of Directors prior to 

15 publication. 

16 (D) UPDATES.—The Bank shall update 

17 the Investment Prospectus on every biennial an18 niversary of its original publication. 

19 (10) INVESTMENT-GRADE RATING.—The term 

20 ‘‘investment-grade rating’’ means a rating of BBB 

21 minus, Baa3, or higher assigned to an infrastructure 

22 project by a ratings agency. 

23 (11) LOAN GUARANTEE.—The term ‘‘loan guar24 antee’’ has the meaning given such term in section 


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1 502 of the Federal Credit Reform Act of 1990 (2 

2 U.S.C. 661a). 

3 (12) PUBLIC-PRIVATE PARTNERSHIP.—The 

4 term ‘‘public-private partnership’’ means any eligible 

5 entity— 

6 (A)(i) which is undertaking the develop7 ment of all or part of an infrastructure project 

8 that will have a public benefit, pursuant to re9 quirements established in one or more contracts 

10 between the entity and a State or an instru11 mentality of a State; or 

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

13 such an infrastructure project, are subject to 

14 regulation by a State or any instrumentality of 

15 a State; 

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

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

18 in part; and 

19 (C) the participants in which include not 

20 fewer than 1 nongovernmental entity with sig21 nificant investment and some control over the 

22 project or project vehicle. 

23 (13) RURAL INFRASTRUCTURE PROJECT.—The 

24 term ‘‘rural infrastructure project’’ means an infra25 structure project in a rural area (as defined in secVerDate Mar 15 2010 23:04 Nov 01, 2011 Jkt 019200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S1769.PCS S1769

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1 tion 343(a)(13)(A) of the Consolidated Farm and 

2 Rural Development Act (7 U.S.C. 1991(a)(13)(A))). 

3 (14) SECRETARY.—Unless the context other4 wise requires, the term ‘‘Secretary’’ means the Sec5 retary of the Treasury or the designee of the Sec6 retary of the Treasury. 

7 (15) SENIOR MANAGEMENT.—The term ‘‘senior 

8 management’’ means— 

9 (A) the chief financial officer, chief risk of10 ficer, chief compliance officer, general counsel, 

11 chief lending officer, and chief operations offi12 cer of AIFA established under section 128; and 

13 (B) such other officers as the Board of Di14 rectors may, by majority vote, add to senior 

15 management. 

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

17 District of Columbia, Puerto Rico, Guam, American 

18 Samoa, the Virgin Islands, the Commonwealth of 

19 Northern Mariana Islands, and any other territory 

20 of the United States. 


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1 SEC. 124. ESTABLISHMENT AND GENERAL AUTHORITY OF 

2 AMERICAN INFRASTRUCTURE FINANCING 

3 AUTHORITY. 

4 (a) ESTABLISHMENT OF AIFA.—The American In5 frastructure Financing Authority is established as a whol6 ly owned Government corporation. 

7 (b) GENERAL AUTHORITY OF AIFA.—AIFA shall 

8 provide direct loans and loan guarantees to facilitate infra9 structure projects that are both economically viable and 

10 of regional or national significance, and shall have such 

11 other authority, as provided in this subtitle. 

12 (c) INCORPORATION.— 

13 (1) IN GENERAL.—The Board of Directors first 

14 appointed shall be deemed the incorporator of AIFA, 

15 and the incorporation shall be held to have been ef16 fected from the date of the first meeting of the 

17 Board of Directors. 

18 (2) CORPORATE OFFICE.—AIFA shall— 

19 (A) maintain an office in Washington, DC; 

20 and 

21 (B) for purposes of venue in civil actions, 

22 be considered to be a resident of Washington, 

23 DC. 

24 (d) RESPONSIBILITY OF THE SECRETARY.—The Sec25 retary shall take such action as may be necessary to assist 


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1 in implementing AIFA, and in carrying out the purpose 

2 of this Act. 

3 (e) RULE OF CONSTRUCTION.—Chapter 91 of title 

4 31, United States Code, does not apply to AIFA, unless 

5 otherwise specifically provided in this subtitle. 

6 SEC. 125. VOTING MEMBERS OF THE BOARD OF DIREC7 TORS. 

8 (a) VOTING MEMBERSHIP OF THE BOARD OF DIREC9 TORS.— 

10 (1) IN GENERAL.—AIFA shall have a Board of 

11 Directors consisting of 7 voting members appointed 

12 by the President, by and with the advice and consent 

13 of the Senate, not more than 4 of whom shall be 

14 from the same political party. 

15 (2) CHAIRPERSON.—One of the voting members 

16 of the Board of Directors shall be designated by the 

17 President to serve as Chairperson. 

18 (3) CONGRESSIONAL RECOMMENDATIONS.—Not 

19 later than 30 days after the date of the enactment 

20 of this Act, the majority leader of the Senate, the 

21 minority leader of the Senate, the Speaker of the 

22 House of Representatives, and the minority leader of 

23 the House of Representatives shall each submit a 

24 recommendation to the President for appointment of 


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1 a member of the Board of Directors, after consulta2 tion with the appropriate committees of Congress. 

3 (b) VOTING RIGHTS.—Each voting member of the 

4 Board of Directors shall have an equal vote in all decisions 

5 of the Board of Directors. 

6 (c) QUALIFICATIONS OF VOTING MEMBERS.—Each 

7 voting member of the Board of Directors shall— 

8 (1) be a citizen of the United States; and 

9 (2) have significant demonstrated expertise in— 

10 (A) the management and administration of 

11 a financial institution relevant to the operation 

12 of AIFA; or a public financial agency or author13 ity; or 

14 (B) the financing, development, or oper15 ation of infrastructure projects; or 

16 (C) analyzing the economic benefits of in17 frastructure investment. 

18 (d) TERMS.— 

19 (1) IN GENERAL.—Except as otherwise pro20 vided in this subtitle, each voting member of the 

21 Board of Directors shall be appointed for a term of 

22 4 years. 

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

24 members first appointed to the Board of Directors— 


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1 (A) the initial Chairperson and 3 of the 

2 other voting members shall each be appointed 

3 for a term of 4 years; and 

4 (B) the remaining 3 voting members shall 

5 each be appointed for a term of 2 years. 

6 (3) DATE OF INITIAL NOMINATIONS.—The ini7 tial nominations for the appointment of all voting 

8 members of the Board of Directors shall be made 

9 not later than 60 days after the date of the enact10 ment of this Act. 

11 (4) BEGINNING OF TERM.—The term of each of 

12 the initial voting members appointed under this sub13 title shall commence immediately upon the date of 

14 appointment, except that, for purposes of calculating 

15 the term limits specified in this section, the initial 

16 terms shall each be construed as beginning on Janu17 ary 22 of the year following the date of the initial 

18 appointment. 

19 (5) VACANCIES.—A vacancy in the position of 

20 a voting member of the Board of Directors shall be 

21 filled by the President, and a member appointed to 

22 fill a vacancy on the Board of Directors occurring 

23 before the expiration of the term for which the pred24 ecessor was appointed shall be appointed only for 

25 the remainder of that term. 


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1 (e) MEETINGS.— 

2 (1) OPEN TO THE PUBLIC; NOTICE.—Except as 

3 provided in paragraph (3), all meetings of the Board 

4 of Directors shall be— 

5 (A) open to the public; and 

6 (B) preceded by reasonable public notice. 

7 (2) FREQUENCY.—The Board of Directors shall 

8 meet not later than 60 days after the date on which 

9 all members of the Board of Directors are first ap10 pointed, at least quarterly thereafter, and otherwise 

11 at the call of either the Chairperson or 5 voting 

12 members of the Board of Directors. 

13 (3) EXCEPTION FOR CLOSED MEETINGS.—The 

14 voting members of the Board of Directors may, by 

15 majority vote, close a meeting to the public if, dur16 ing the meeting to be closed, there is likely to be dis17 closed proprietary or sensitive information regarding 

18 an infrastructure project under consideration for as19 sistance under this Act. The Board of Directors 

20 shall prepare minutes of any meeting that is closed 

21 to the public, and shall make such minutes available 

22 as soon as practicable, not later than 1 year after 

23 the date of the closed meeting, with any necessary 

24 redactions to protect any proprietary or sensitive in25 formation. 


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1 (4) QUORUM.—For purposes of meetings of the 

2 Board of Directors, 5 voting members of the Board 

3 of Directors shall constitute a quorum. 

4 (f) COMPENSATION OF MEMBERS.—Each voting 

5 member of the Board of Directors shall be compensated 

6 at a rate equal to the daily equivalent of the annual rate 

7 of basic pay prescribed for level III of the Executive 

8 Schedule under section 5314 of title 5, United States 

9 Code, for each day (including travel time) during which 

10 the member is engaged in the performance of the duties 

11 of the Board of Directors. 

12 (g) CONFLICTS OF INTEREST.—A voting member of 

13 the Board of Directors may not participate in any review 

14 or decision affecting an infrastructure project under con15 sideration for assistance under this subtitle, if the member 

16 has or is affiliated with an entity who has a financial inter17 est in such project. 

18 SEC. 126. CHIEF EXECUTIVE OFFICER OF AIFA. 

19 (a) IN GENERAL.—The chief executive officer of 

20 AIFA shall be a nonvoting member of the Board of Direc21 tors, who shall be responsible for all activities of AIFA, 

22 and shall support the Board of Directors as set forth in 

23 this Act and as the Board of Directors deems necessary 

24 or appropriate. 


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1 (b) APPOINTMENT AND TENURE OF THE CHIEF EX2 ECUTIVE OFFICER.— 

3 (1) IN GENERAL.—The President shall appoint 

4 the chief executive officer, by and with the advice 

5 and consent of the Senate. 

6 (2) TERM.—The chief executive officer shall be 

7 appointed for a term of 6 years. 

8 (3) VACANCIES.—Any vacancy in the office of 

9 the chief executive officer shall be filled by the Presi10 dent, and the person appointed to fill a vacancy in 

11 that position occurring before the expiration of the 

12 term for which the predecessor was appointed shall 

13 be appointed only for the remainder of that term. 

14 (c) QUALIFICATIONS.—The chief executive officer— 

15 (1) shall have significant expertise in manage16 ment and administration of a financial institution, 

17 or significant expertise in the financing and develop18 ment of infrastructure projects, or significant exper19 tise in analyzing the economic benefits of infrastruc20 ture investment; and 

21 (2) may not— 

22 (A) hold any other public office; 

23 (B) have any financial interest in an infra24 structure project then being considered by the 


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1 Board of Directors, unless that interest is 

2 placed in a blind trust; or 

3 (C) have any financial interest in an in4 vestment institution or its affiliates or any 

5 other entity seeking or likely to seek financial 

6 assistance for any infrastructure project from 

7 AIFA, unless any such interest is placed in a 

8 blind trust for the tenure of the service of the 

9 chief executive officer plus 2 additional years. 

10 (d) RESPONSIBILITIES.—The chief executive officer 

11 shall have such executive functions, powers, and duties as 

12 may be prescribed by this Act, the bylaws of AIFA, or 

13 the Board of Directors, including— 

14 (1) responsibility for the development and im15 plementation of the strategy of AIFA, including— 

16 (A) the development and submission to the 

17 Board of Directors of the investment pro18 spectus, the annual business plans and budget; 

19 (B) the development and submission to the 

20 Board of Directors of a long-term strategic 

21 plan; and 

22 (C) the development, revision, and submis23 sion to the Board of Directors of internal poli24 cies; and 


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1 (2) responsibility for the management and over2 sight of the daily activities, decisions, operations, 

3 and personnel of AIFA, including— 

4 (A) the appointment of senior manage5 ment, subject to approval by the voting mem6 bers of the Board of Directors, and the hiring 

7 and termination of all other AIFA personnel; 

8 (B) requesting the detail, on a reimburs9 able basis, of personnel from any Federal agen10 cy having specific expertise not available from 

11 within AIFA, following which request the head 

12 of the Federal agency may detail, on a reim13 bursable basis, any personnel of such agency 

14 reasonably requested by the chief executive offi15 cer; 

16 (C) assessing and recommending in the 

17 first instance, for ultimate approval or dis18 approval by the Board of Directors, compensa19 tion and adjustments to compensation of senior 

20 management and other personnel of AIFA as 

21 may be necessary for carrying out the functions 

22 of AIFA; 

23 (D) ensuring, in conjunction with the gen24 eral counsel of AIFA, that all activities of 


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1 AIFA are carried out in compliance with appli2 cable law; 

3 (E) overseeing the involvement of AIFA in 

4 all projects, including— 

5 (i) developing eligible projects for 

6 AIFA financial assistance; 

7 (ii) determining the terms and condi8 tions of all financial assistance packages; 

9 (iii) monitoring all infrastructure 

10 projects assisted by AIFA, including re11 sponsibility for ensuring that the proceeds 

12 of any loan made, guaranteed, or partici13 pated in are used only for the purposes for 

14 which the loan or guarantee was made; 

15 (iv) preparing and submitting for ap16 proval by the Board of Directors the docu17 ments required under paragraph (1); and 

18 (v) ensuring the implementation of de19 cisions of the Board of Directors; and 

20 (F) such other activities as may be nec21 essary or appropriate in carrying out this Act. 

22 (e) COMPENSATION.— 

23 (1) IN GENERAL.—Any compensation assess24 ment or recommendation by the chief executive offi25 cer under this subtitle shall be without regard to the 


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1 provisions of chapter 51 or subchapter III of chapter 

2 53 of title 5, United States Code. 

3 (2) CONSIDERATIONS.—The compensation as4 sessment or recommendation required under this 

5 section shall take into account merit principles, 

6 where applicable, as well as the education, experi7 ence, level of responsibility, geographic differences, 

8 and retention and recruitment needs in determining 

9 compensation of personnel. 

10 SEC. 127. POWERS AND DUTIES OF THE BOARD OF DIREC11 TORS. 

12 The Board of Directors shall— 

13 (a) as soon as is practicable after the date on which 

14 all members are appointed, approve or disapprove senior 

15 management appointed by the chief executive officer; 

16 (b) not later than 180 days after the date on which 

17 all members are appointed— 

18 (1) develop and approve the bylaws of AIFA, 

19 including bylaws for the regulation of the affairs and 

20 conduct of the business of AIFA, consistent with the 

21 purpose, goals, objectives, and policies set forth in 

22 this subtitle; 

23 (2) establish subcommittees, including an audit 

24 committee that is composed solely of members of the 


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1 Board of Directors who are independent of the sen2 ior management of AIFA; 

3 (3) develop and approve, in consultation with 

4 senior management, a conflict-of-interest policy for 

5 the Board of Directors and for senior management; 

6 (4) approve or disapprove internal policies that 

7 the chief executive officer shall submit to the Board 

8 of Directors, including— 

9 (A) policies regarding the loan application 

10 and approval process, including— 

11 (i) disclosure and application proce12 dures to be followed by entities in the 

13 course of nominating infrastructure 

14 projects for assistance under this Act; 

15 (ii) guidelines for the selection and 

16 approval of projects; 

17 (iii) specific criteria for determining 

18 eligibility for project selection, consistent 

19 with title II; and 

20 (iv) standardized terms and condi21 tions, fee schedules, or legal requirements 

22 of a contract or program, so as to carry 

23 out this Act; and 

24 (B) operational guidelines; and 


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1 (5) approve or disapprove a multi-year or 1- 

2 year business plan and budget for AIFA; 

3 (c) ensure that AIFA is at all times operated in a 

4 manner that is consistent with this subtitle, by— 

5 (1) monitoring and assessing the effectiveness 

6 of AIFA in achieving its strategic goals; 

7 (2) periodically reviewing internal policies; 

8 (3) reviewing and approving annual business 

9 plans, annual budgets, and long-term strategies sub10 mitted by the chief executive officer; 

11 (4) reviewing and approving annual reports 

12 submitted by the chief executive officer; 

13 (5) engaging one or more external auditors, as 

14 set forth in this subtitle; and 

15 (6) reviewing and approving all changes to the 

16 organization of senior management; 

17 (d) appoint and fix, by a vote of 5 of the 7 voting 

18 members of the Board of Directors, and without regard 

19 to the provisions of chapter 51 or subchapter III of chap20 ter 53 of title 5, United States Code, the compensation 

21 and adjustments to compensation of all AIFA personnel, 

22 provided that in appointing and fixing any compensation 

23 or adjustments to compensation under this subsection, the 

24 Board shall— 


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1 (1) consult with, and seek to maintain com2 parability with, other comparable Federal personnel; 

3 (2) consult with the Office of Personnel Man4 agement; and 

5 (3) carry out such duties consistent with merit 

6 principles, where applicable, as well as the education, 

7 experience, level of responsibility, geographic dif8 ferences, and retention and recruitment needs in de9 termining compensation of personnel; 

10 (e) establish such other criteria, requirements, or pro11 cedures as the Board of Directors may consider to be ap12 propriate in carrying out this subtitle; 

13 (f) serve as the primary liaison for AIFA in inter14 actions with Congress, the Executive Branch, and State 

15 and local governments, and to represent the interests of 

16 AIFA in such interactions and others; 

17 (g) approve by a vote of 5 of the 7 voting members 

18 of the Board of Directors any changes to the bylaws or 

19 internal policies of AIFA; 

20 (h) have the authority and responsibility— 

21 (1) to oversee entering into and carry out such 

22 contracts, leases, cooperative agreements, or other 

23 transactions as are necessary to carry out this sub24 title with— 

25 (A) any Federal department or agency; 


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1 (B) any State, territory, or possession (or 

2 any political subdivision thereof, including State 

3 infrastructure banks) of the United States; and 

4 (C) any individual, public-private partner5 ship, firm, association, or corporation; 

6 (2) to approve of the acquisition, lease, pledge, 

7 exchange, and disposal of real and personal property 

8 by AIFA and otherwise approve the exercise by 

9 AIFA of all of the usual incidents of ownership of 

10 property, to the extent that the exercise of such pow11 ers is appropriate to and consistent with the pur12 poses of AIFA; 

13 (3) to determine the character of, and the ne14 cessity for, the obligations and expenditures of 

15 AIFA, and the manner in which the obligations and 

16 expenditures will be incurred, allowed, and paid, 

17 subject to this Act and other Federal law specifically 

18 applicable to wholly owned Federal corporations; 

19 (4) to execute, in accordance with applicable by20 laws and regulations, appropriate instruments; 

21 (5) to approve other forms of credit enhance22 ment that AIFA may provide to eligible projects, as 

23 long as the forms of credit enhancements are con24 sistent with the purposes of this subtitle and terms 

25 set forth in this subtitle; 


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1 (6) to exercise all other lawful powers which are 

2 necessary or appropriate to carry out, and are con3 sistent with, the purposes of AIFA; 

4 (7) to sue or be sued in the corporate capacity 

5 of AIFA in any court of competent jurisdiction; 

6 (8) to indemnify the members of the Board of 

7 Directors and officers of AIFA for any liabilities 

8 arising out of the actions of the members and offi9 cers in such capacity, in accordance with, and sub10 ject to the limitations contained in this subtitle; 

11 (9) to review all financial assistance packages 

12 to all eligible infrastructure projects, as submitted 

13 by the chief executive officer and to approve, post14 pone, or deny the same by majority vote; 

15 (10) to review all restructuring proposals sub16 mitted by the chief executive officer, including assig17 nation, pledging, or disposal of the interest of AIFA 

18 in a project, including payment or income from any 

19 interest owned or held by AIFA, and to approve, 

20 postpone, or deny the same by majority vote; and 

21 (11) to enter into binding commitments, as 

22 specified in approved financial assistance packages; 

23 (i) delegate to the chief executive officer those duties 

24 that the Board of Directors deems appropriate, to better 


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1 carry out the powers and purposes of the Board of Direc2 tors under this section; and 

3 (j) to approve a maximum aggregate amount of out4 standing obligations of AIFA at any given time, taking 

5 into consideration funding, and the size of AIFA’s ad6 dressable market for infrastructure projects. 

7 SEC. 128. SENIOR MANAGEMENT. 

8 (a) IN GENERAL.—Senior management shall support 

9 the chief executive officer in the discharge of the respon10 sibilities of the chief executive officer. 

11 (b) APPOINTMENT OF SENIOR MANAGEMENT.—The 

12 chief executive officer shall appoint such senior managers 

13 as are necessary to carry out the purpose of AIFA, as 

14 approved by a majority vote of the voting members of the 

15 Board of Directors. 

16 (c) TERM.—Each member of senior management 

17 shall serve at the pleasure of the chief executive officer 

18 and the Board of Directors. 

19 (d) REMOVAL OF SENIOR MANAGEMENT.—Any mem20 ber of senior management may be removed, either by a 

21 majority of the voting members of the Board of Directors 

22 upon request by the chief executive officer, or otherwise 

23 by vote of not fewer than 5 voting members of the Board 

24 of Directors. 

25 (e) SENIOR MANAGEMENT.— 


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1 (1) IN GENERAL.—Each member of senior 

2 management shall report directly to the chief execu3 tive officer, other than the Chief Risk Officer, who 

4 shall report directly to the Board of Directors. 

5 (2) DUTIES AND RESPONSIBILITIES.— 

6 (A) CHIEF FINANCIAL OFFICER.—The 

7 Chief Financial Officer shall be responsible for 

8 all financial functions of AIFA, provided that, 

9 at the discretion of the Board of Directors, spe10 cific functions of the Chief Financial Officer 

11 may be delegated externally. 

12 (B) CHIEF RISK OFFICER.—The Chief 

13 Risk Officer shall be responsible for all func14 tions of AIFA relating to— 

15 (i) the creation of financial, credit, 

16 and operational risk management guide17 lines and policies; 

18 (ii) credit analysis for infrastructure 

19 projects; 

20 (iii) the creation of conforming stand21 ards for infrastructure finance agreements; 

22 (iv) the monitoring of the financial, 

23 credit, and operational exposure of AIFA; 

24 and 


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1 (v) risk management and mitigation 

2 actions, including by reporting such ac3 tions, or recommendations of such actions 

4 to be taken, directly to the Board of Direc5 tors. 

6 (C) CHIEF COMPLIANCE OFFICER.—The 

7 Chief Compliance Officer shall be responsible 

8 for all functions of AIFA relating to internal 

9 audits, accounting safeguards, and the enforce10 ment of such safeguards and other applicable 

11 requirements. 

12 (D) GENERAL COUNSEL.—The General 

13 Counsel shall be responsible for all functions of 

14 AIFA relating to legal matters and, in consulta15 tion with the chief executive officer, shall be re16 sponsible for ensuring that AIFA complies with 

17 all applicable law. 

18 (E) CHIEF OPERATIONS OFFICER.—The 

19 Chief Operations Officer shall be responsible for 

20 all operational functions of AIFA, including 

21 those relating to the continuing operations and 

22 performance of all infrastructure projects in 

23 which AIFA retains an interest and for all 

24 AIFA functions related to human resources. 


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1 (F) CHIEF LENDING OFFICER.—The Chief 

2 Lending Officer shall be responsible for— 

3 (i) all functions of AIFA relating to 

4 the development of project pipeline, finan5 cial structuring of projects, selection of in6 frastructure projects to be reviewed by the 

7 Board of Directors, preparation of infra8 structure projects to be presented to the 

9 Board of Directors, and set aside for rural 

10 infrastructure projects; 

11 (ii) the creation and management of— 

12 (I) a Center for Excellence to 

13 provide technical assistance to public 

14 sector borrowers in the development 

15 and financing of infrastructure 

16 projects; and 

17 (II) an Office of Rural Assistance 

18 to provide technical assistance in the 

19 development and financing of rural in20 frastructure projects; and 

21 (iii) the establishment of guidelines to 

22 ensure diversification of lending activities 

23 by region, infrastructure project type, and 

24 project size. 


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1 (f) CHANGES TO SENIOR MANAGEMENT.—The Board 

2 of Directors, in consultation with the chief executive offi3 cer, may alter the structure of the senior management of 

4 AIFA at any time to better accomplish the goals, objec5 tives, and purposes of AIFA, provided that the functions 

6 of the Chief Financial Officer set forth in subsection 

7 (e)(2)(A) remain separate from the functions of the Chief 

8 Risk Officer set forth in subsection (e)(2)(B). 

9 (g) CONFLICTS OF INTEREST.—No individual ap10 pointed to senior management may— 

11 (1) hold any other public office; 

12 (2) have any financial interest in an infrastruc13 ture project then being considered by the Board of 

14 Directors, unless that interest is placed in a blind 

15 trust; or 

16 (3) have any financial interest in an investment 

17 institution or its affiliates, AIFA or its affiliates, or 

18 other entity then seeking or likely to seek financial 

19 assistance for any infrastructure project from AIFA, 

20 unless any such interest is placed in a blind trust 

21 during the term of service of that individual in a 

22 senior management position, and for a period of 2 

23 years thereafter. 


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1 SEC. 129. SPECIAL INSPECTOR GENERAL FOR AIFA. 

2 (a) IN GENERAL.—During the first 5 operating years 

3 of AIFA, the Office of the Inspector General of the De4 partment of the Treasury shall have responsibility for 

5 AIFA. 

6 (b) OFFICE OF THE SPECIAL INSPECTOR GEN7 ERAL.—Effective 5 years after the date of the commence8 ment of the operations of AIFA, there is established the 

9 Office of the Special Inspector General for AIFA. 

10 (c) APPOINTMENT OF INSPECTOR GENERAL; RE11 MOVAL.— 

12 (1) HEAD OF OFFICE.—The head of the Office 

13 of the Special Inspector General for AIFA shall be 

14 the Special Inspector General for AIFA (referred to 

15 in this section as the ‘‘Special Inspector General’’), 

16 who shall be appointed by the President, by and 

17 with the advice and consent of the Senate. 

18 (2) BASIS OF APPOINTMENT.—The appoint19 ment of the Special Inspector General shall be made 

20 on the basis of integrity and demonstrated ability in 

21 accounting, auditing, financial analysis, law, man22 agement analysis, public administration, or inves23 tigations. 

24 (3) TIMING OF NOMINATION.—The nomination 

25 of an individual as Special Inspector General shall 


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1 be made as soon as is practicable after the effective 

2 date under subsection (b). 

3 (4) REMOVAL.—The Special Inspector General 

4 shall be removable from office in accordance with 

5 the provisions of section 3(b) of the Inspector Gen6 eral Act of 1978 (5 U.S.C. App.). 

7 (5) RULE OF CONSTRUCTION.—For purposes of 

8 section 7324 of title 5, United States Code, the Spe9 cial Inspector General shall not be considered an em10 ployee who determines policies to be pursued by the 

11 United States in the nationwide administration of 

12 Federal law. 

13 (6) RATE OF PAY.—The annual rate of basic 

14 pay of the Special Inspector General shall be the an15 nual rate of basic pay for an Inspector General 

16 under section 3(e) of the Inspector General Act of 

17 1978 (5 U.S.C. App.). 

18 (d) DUTIES.— 

19 (1) IN GENERAL.—The Special Inspector Gen20 eral shall conduct, supervise, and coordinate audits 

21 and investigations of the business activities of AIFA. 

22 (2) OTHER SYSTEMS, PROCEDURES, AND CON23 TROLS.—The Special Inspector General shall estab24 lish, maintain, and oversee such systems, procedures, 

25 and controls as the Special Inspector General conVerDate Mar 15 2010 23:04 Nov 01, 2011 Jkt 019200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S1769.PCS S1769

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1 siders appropriate to discharge the duty described in 

2 paragraph (1). 

3 (3) ADDITIONAL DUTIES.—In addition to the 

4 duties specified in paragraphs (1) and (2), the In5 spector General shall have the duties and respon6 sibilities of inspectors general under the Inspector 

7 General Act of 1978. 

8 (e) POWERS AND AUTHORITIES.— 

9 (1) IN GENERAL.—In carrying out the duties 

10 specified in subsection (d), the Special Inspector 

11 General shall have the authorities provided in section 

12 6 of the Inspector General Act of 1978. 

13 (2) ADDITIONAL AUTHORITY.—The Special In14 spector General shall carry out the duties specified 

15 in subsection (d)(1) in accordance with section 

16 4(b)(1) of the Inspector General Act of 1978. 

17 (f) PERSONNEL, FACILITIES, AND OTHER RE18 SOURCES.— 

19 (1) ADDITIONAL OFFICERS.— 

20 (A) The Special Inspector General may se21 lect, appoint, and employ such officers and em22 ployees as may be necessary for carrying out 

23 the duties of the Special Inspector General, 

24 subject to the provisions of title 5, United 

25 States Code, governing appointments in the 


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1 competitive service, and the provisions of chap2 ter 51 and subchapter III of chapter 53 of such 

3 title, relating to classification and General 

4 Schedule pay rates. 

5 (B) The Special Inspector General may ex6 ercise the authorities under subsections (b) 

7 through (i) of section 3161 of title 5, United 

8 States Code (without regard to subsection (a) 

9 of that section). 

10 (2) RETENTION OF SERVICES.—The Special In11 spector General may obtain services as authorized by 

12 section 3109 of title 5, United States Code, at daily 

13 rates not to exceed the equivalent rate prescribed for 

14 grade GS–15 of the General Schedule by section 

15 5332 of such title. 

16 (3) ABILITY TO CONTRACT FOR AUDITS, STUD17 IES, AND OTHER SERVICES.—The Special Inspector 

18 General may enter into contracts and other arrange19 ments for audits, studies, analyses, and other serv20 ices with public agencies and with private persons, 

21 and make such payments as may be necessary to 

22 carry out the duties of the Special Inspector Gen23 eral. 

24 (4) REQUEST FOR INFORMATION.— 


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1 (A) IN GENERAL.—Upon request of the 

2 Special Inspector General for information or as3 sistance from any department, agency, or other 

4 entity of the Federal Government, the head of 

5 such entity shall, insofar as is practicable and 

6 not in contravention of any existing law, furnish 

7 such information or assistance to the Special 

8 Inspector General, or an authorized designee. 

9 (B) REFUSAL TO COMPLY.—Whenever in10 formation or assistance requested by the Spe11 cial Inspector General is, in the judgment of the 

12 Special Inspector General, unreasonably refused 

13 or not provided, the Special Inspector General 

14 shall report the circumstances to the Secretary 

15 of the Treasury, without delay. 

16 (g) REPORTS.— 

17 (1) ANNUAL REPORT.—Not later than 1 year 

18 after the confirmation of the Special Inspector Gen19 eral, and every calendar year thereafter, the Special 

20 Inspector General shall submit to the President a re21 port summarizing the activities of the Special In22 spector General during the previous 1-year period 

23 ending on the date of such report. 


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1 (2) PUBLIC DISCLOSURES.—Nothing in this 

2 section shall be construed to authorize the public 

3 disclosure of information that is— 

4 (A) specifically prohibited from disclosure 

5 by any other provision of law; 

6 (B) specifically required by Executive order 

7 to be protected from disclosure in the interest 

8 of national defense or national security or in 

9 the conduct of foreign affairs; or 

10 (C) a part of an ongoing criminal inves11 tigation. 

12 SEC. 130. OTHER PERSONNEL. 

13 Except as otherwise provided in the bylaws of AIFA, 

14 the chief executive officer, in consultation with the Board 

15 of Directors, shall appoint, remove, and define the duties 

16 of such qualified personnel as are necessary to carry out 

17 the powers, duties, and purpose of AIFA, other than sen18 ior management, who shall be appointed in accordance 

19 with section 249. 

20 SEC. 131. COMPLIANCE. 

21 The provision of assistance by the Board of Directors 

22 pursuant to this Act shall not be construed as superseding 

23 any provision of State law or regulation otherwise applica24 ble to an infrastructure project. 


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1 SEC. 132. TERMS AND LIMITATIONS ON DIRECT LOANS AND 

2 LOAN GUARANTEES. 

3 (a) ELIGIBILITY CRITERIA FOR ASSISTANCE FROM

4 AIFA AND TERMS AND LIMITATIONS OF LOANS.—Any 

5 project whose use or purpose is private and for which no 

6 public benefit is created shall not be eligible for financial 

7 assistance from AIFA under this subtitle. Financial assist8 ance under this subtitle shall only be made available if 

9 the applicant for such assistance has demonstrated to the 

10 satisfaction of the Board of Directors that the infrastruc11 ture project for which such assistance is being sought— 

12 (1) is not for the refinancing of an existing in13 frastructure project; and 

14 (2) meets— 

15 (A) any pertinent requirements set forth in 

16 this subtitle; 

17 (B) any criteria established by the Board 

18 of Directors or chief executive officer in accord19 ance with this subtitle; and 

20 (C) the definition of a transportation infra21 structure project, water infrastructure project, 

22 or energy infrastructure project. 

23 (b) CONSIDERATIONS.—The criteria established by 

24 the Board of Directors pursuant to this subtitle shall pro25 vide adequate consideration of— 


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1 (1) the economic, financial, technical, environ2 mental, and public benefits and costs of each infra3 structure project under consideration for financial 

4 assistance under this subtitle, prioritizing infrastruc5 ture projects that— 

6 (A) contribute to regional or national eco7 nomic growth; 

8 (B) offer value for money to taxpayers; 

9 (C) demonstrate a clear and significant 

10 public benefit; 

11 (D) lead to job creation; and 

12 (E) mitigate environmental concerns; 

13 (2) the means by which development of the in14 frastructure project under consideration is being fi15 nanced, including— 

16 (A) the terms, conditions, and structure of 

17 the proposed financing; 

18 (B) the credit worthiness and standing of 

19 the project sponsors, providers of equity, and 

20 co-financiers; 

21 (C) the financial assumptions and projec22 tions on which the infrastructure project is 

23 based; and 


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1 (D) whether there is sufficient State or 

2 municipal political support for the successful 

3 completion of the infrastructure project; 

4 (3) the likelihood that the provision of assist5 ance by AIFA will cause such development to pro6 ceed more promptly and with lower costs than would 

7 be the case without such assistance; 

8 (4) the extent to which the provision of assist9 ance by AIFA maximizes the level of private invest10 ment in the infrastructure project or supports a 

11 public-private partnership, while providing a signifi12 cant public benefit; 

13 (5) the extent to which the provision of assist14 ance by AIFA can mobilize the participation of other 

15 financing partners in the infrastructure project; 

16 (6) the technical and operational viability of the 

17 infrastructure project; 

18 (7) the proportion of financial assistance from 

19 AIFA; 

20 (8) the geographic location of the project in an 

21 effort to have geographic diversity of projects funded 

22 by AIFA; 

23 (9) the size of the project and its impact on the 

24 resources of AIFA; 


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1 (10) the infrastructure sector of the project, in 

2 an effort to have projects from more than one sector 

3 funded by AIFA; and 

4 (11) encourages use of innovative procurement, 

5 asset management, or financing to minimize the all6 in-life-cycle cost, and improve the cost-effectiveness 

7 of a project. 

8 (c) APPLICATION.— 

9 (1) IN GENERAL.—Any eligible entity seeking 

10 assistance from AIFA under this Act for an eligible 

11 infrastructure project shall submit an application to 

12 AIFA at such time, in such manner, and containing 

13 such information as the Board of Directors or the 

14 chief executive officer may require. 

15 (2) REVIEW OF APPLICATIONS.—AIFA shall re16 view applications for assistance under this Act on an 

17 ongoing basis. The chief executive officer, working 

18 with the senior management, shall prepare eligible 

19 infrastructure projects for review and approval by 

20 the Board of Directors. 

21 (3) DEDICATED REVENUE SOURCES.—The Fed22 eral credit instrument shall be repayable, in whole or 

23 in part, from tolls, user fees, or other dedicated rev24 enue sources that also secure the infrastructure 

25 project obligations. 


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1 (d) ELIGIBLE INFRASTRUCTURE PROJECT COSTS.— 

2 (1) IN GENERAL.—Except as provided in para3 graph (2), to be eligible for assistance under this 

4 subtitle, an infrastructure project shall have project 

5 costs that are reasonably anticipated to equal or ex6 ceed $100,000,000. 

7 (2) RURAL INFRASTRUCTURE PROJECTS.—To 

8 be eligible for assistance under this subtitle, a rural 

9 infrastructure project shall have project costs that 

10 are reasonably anticipated to equal or exceed 

11 $25,000,000. 

12 (e) LOAN ELIGIBILITY AND MAXIMUM AMOUNTS.— 

13 (1) IN GENERAL.—The amount of a direct loan 

14 or loan guarantee under this subtitle may not exceed 

15 the lesser of 50 percent of the reasonably anticipated 

16 eligible infrastructure project costs or, if the direct 

17 loan or loan guarantee does not receive an invest18 ment grade rating, the amount of the senior project 

19 obligations. 

20 (2) MAXIMUM ANNUAL LOAN AND LOAN GUAR21 ANTEE VOLUME.—The aggregate amount of direct 

22 loans and loan guarantees made by AIFA in any 

23 single fiscal year may not exceed— 

24 (A) during the first 2 fiscal years of the 

25 operations of AIFA, $10,000,000,000; 


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1 (B) during fiscal years 3 through 9 of the 

2 operations of AIFA, $20,000,000,000; or 

3 (C) during any fiscal year thereafter, 

4 $50,000,000,000. 

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

6 provision of assistance by the Board of Directors pursuant 

7 to this subtitle shall not be deemed to relieve any recipient 

8 of such assistance, or the related infrastructure project, 

9 of any obligation to obtain required State and local per10 mits and approvals. 

11 SEC. 133. LOAN TERMS AND REPAYMENT. 

12 (a) IN GENERAL.—A direct loan or loan guarantee 

13 under this subtitle with respect to an eligible infrastruc14 ture project shall be on such terms, subject to such condi15 tions, and contain such covenants, representations, war16 ranties, and requirements (including requirements for au17 dits) as the chief executive officer determines appropriate. 

18 (b) TERMS.—A direct loan or loan guarantee under 

19 this subtitle— 

20 (1) shall— 

21 (A) be payable, in whole or in part, from 

22 tolls, user fees, or other dedicated revenue 

23 sources that also secure the senior project obli24 gations (such as availability payments and dedi25 cated State or local revenues); and 


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1 (B) include a rate covenant, coverage re2 quirement, or similar security feature sup3 porting the project obligations; and 

4 (2) may have a lien on revenues described in 

5 paragraph (1), subject to any lien securing project 

6 obligations. 

7 (c) BASE INTEREST RATE.—The base interest rate 

8 on a direct loan under this subtitle shall be not less than 

9 the yield on United States Treasury obligations of a simi10 lar maturity to the maturity of the direct loan. 

11 (d) RISK ASSESSMENT.—Before entering into an 

12 agreement for assistance under this subtitle, the chief ex13 ecutive officer, in consultation with the Director of the Of14 fice of Management and Budget and considering rating 

15 agency preliminary or final rating opinion letters of the 

16 project under this subtitle, shall estimate an appropriate 

17 Federal credit subsidy amount for each direct loan and 

18 loan guarantee, taking into account such letter, as well 

19 as any comparable market rates available for such a loan 

20 or loan guarantee, should any exist. The final credit sub21 sidy cost for each loan and loan guarantee shall be deter22 mined consistent with the Federal Credit Reform Act, 2 

23 U.S.C. 661a et seq. 

24 (e) CREDIT FEE.—With respect to each agreement 

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1 cer may charge a credit fee to the recipient of such assist2 ance to pay for, over time, all or a portion of the Federal 

3 credit subsidy determined under subsection (d), with the 

4 remainder paid by the account established for AIFA; pro5 vided, that the source of fees paid under this subtitle shall 

6 not be a loan or debt obligation guaranteed by the Federal 

7 Government. In the case of a direct loan, such credit fee 

8 shall be in addition to the base interest rate established 

9 under subsection (c). 

10 (f) MATURITY DATE.—The final maturity date of a 

11 direct loan or loan guaranteed by AIFA under this subtitle 

12 shall be not later than 35 years after the date of substan13 tial completion of the infrastructure project, as determined 

14 by the chief executive officer. 

15 (g) RATING OPINION LETTER.— 

16 (1) IN GENERAL.—The chief executive officer 

17 shall require each applicant for assistance under this 

18 subtitle to provide a rating opinion letter from at 

19 least 1 ratings agency, indicating that the senior ob20 ligations of the infrastructure project, which may be 

21 the Federal credit instrument, have the potential to 

22 achieve an investment-grade rating. 

23 (2) RURAL INFRASTRUCTURE PROJECTS.—With 

24 respect to a rural infrastructure project, a rating 

25 agency opinion letter described in paragraph (1) 


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1 shall not be required, except that the loan or loan 

2 guarantee shall receive an internal rating score, 

3 using methods similar to the ratings agencies gen4 erated by AIFA, measuring the proposed direct loan 

5 or loan guarantee against comparable direct loans or 

6 loan guarantees of similar credit quality in a similar 

7 sector. 

8 (h) INVESTMENT-GRADE RATING REQUIREMENT.— 

9 (1) LOANS AND LOAN GUARANTEES.—The exe10 cution of a direct loan or loan guarantee under this 

11 subtitle shall be contingent on the senior obligations 

12 of the infrastructure project receiving an investment13 grade rating. 

14 (2) RATING OF AIFA OVERALL PORTFOLIO.— 

15 The average rating of the overall portfolio of AIFA 

16 shall be not less than investment grade after 5 years 

17 of operation. 

18 (i) TERMS AND REPAYMENT OF DIRECT LOANS.— 

19 (1) SCHEDULE.—The chief executive officer 

20 shall establish a repayment schedule for each direct 

21 loan under this subtitle, based on the projected cash 

22 flow from infrastructure project revenues and other 

23 repayment sources. 

24 (2) COMMENCEMENT.—Scheduled loan repay25 ments of principal or interest on a direct loan under 


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1 this subtitle shall commence not later than 5 years 

2 after the date of substantial completion of the infra3 structure project, as determined by the chief execu4 tive officer of AIFA. 

5 (3) DEFERRED PAYMENTS OF DIRECT

6 LOANS.— 

7 (A) AUTHORIZATION.—If, at any time 

8 after the date of substantial completion of an 

9 infrastructure project assisted under this sub10 title, the infrastructure project is unable to gen11 erate sufficient revenues to pay the scheduled 

12 loan repayments of principal and interest on the 

13 direct loan under this subtitle, the chief execu14 tive officer may allow the obligor to add unpaid 

15 principal and interest to the outstanding bal16 ance of the direct loan, if the result would ben17 efit the taxpayer. 

18 (B) INTEREST.—Any payment deferred 

19 under subparagraph (A) shall— 

20 (i) continue to accrue interest, in ac21 cordance with the terms of the obligation, 

22 until fully repaid; and 

23 (ii) be scheduled to be amortized over 

24 the remaining term of the loan. 

25 (C) CRITERIA.— 


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1 (i) IN GENERAL.—Any payment defer2 ral under subparagraph (A) shall be con3 tingent on the infrastructure project meet4 ing criteria established by the Board of Di5 rectors. 

6 (ii) REPAYMENT STANDARDS.—The 

7 criteria established under clause (i) shall 

8 include standards for reasonable assurance 

9 of repayment. 

10 (4) PREPAYMENT OF DIRECT LOANS.— 

11 (A) USE OF EXCESS REVENUES.—Any ex12 cess revenues that remain after satisfying 

13 scheduled debt service requirements on the in14 frastructure project obligations and direct loan 

15 and all deposit requirements under the terms of 

16 any trust agreement, bond resolution, or similar 

17 agreement securing project obligations under 

18 this subtitle may be applied annually to prepay 

19 the direct loan, without penalty. 

20 (B) USE OF PROCEEDS OF REFI21 NANCING.—A direct loan under this subtitle 

22 may be prepaid at any time, without penalty, 

23 from the proceeds of refinancing from non-Fed24 eral funding sources. 

25 (5) SALE OF DIRECT LOANS.— 


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1 (A) IN GENERAL.—As soon as is prac2 ticable after substantial completion of an infra3 structure project assisted under this subtitle, 

4 and after notifying the obligor, the chief execu5 tive officer may sell to another entity, or reoffer 

6 into the capital markets, a direct loan for the 

7 infrastructure project, if the chief executive offi8 cer determines that the sale or reoffering can 

9 be made on favorable terms for the taxpayer. 

10 (B) CONSENT OF OBLIGOR.—In making a 

11 sale or reoffering under subparagraph (A), the 

12 chief executive officer may not change the origi13 nal terms and conditions of the direct loan, 

14 without the written consent of the obligor. 

15 (j) LOAN GUARANTEES.— 

16 (1) TERMS.—The terms of a loan guaranteed 

17 by AIFA under this subtitle shall be consistent with 

18 the terms set forth in this subtitle for a direct loan, 

19 except that the rate on the guaranteed loan and any 

20 payment, pre-payment, or refinancing features shall 

21 be negotiated between the obligor and the lender, 

22 with the consent of the chief executive officer. 

23 (2) GUARANTEED LENDER.—A guaranteed 

24 lender shall be limited to those lenders meeting the 


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1 definition of that term in section 601(a) of title 23, 

2 United States Code. 

3 (k) COMPLIANCE WITH FCRA—IN GENERAL.—Di4 rect loans and loan guarantees authorized by this subtitle 

5 shall be subject to the provisions of the Federal Credit 

6 Reform Act of 1990 (2 U.S.C. 661 et seq.). 

7 SEC. 134. COMPLIANCE AND ENFORCEMENT. 

8 (a) CREDIT AGREEMENT.—Notwithstanding any 

9 other provision of law, each eligible entity that receives 

10 assistance under this subtitle from AIFA shall enter into 

11 a credit agreement that requires such entity to comply 

12 with all applicable policies and procedures of AIFA, in ad13 dition to all other provisions of the loan agreement. 

14 (b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 

15 case in which a recipient of assistance under this subtitle 

16 is materially out of compliance with the loan agreement, 

17 or any applicable policy or procedure of AIFA, the Board 

18 of Directors may take action to cancel unutilized loan 

19 amounts, or to accelerate the repayment terms of any out20 standing obligation. 

21 (c) RULE OF CONSTRUCTION.—Nothing in this sub22 title is intended to affect existing provisions of law applica23 ble to the planning, development, construction, or oper24 ation of projects funded under this subtitle. 


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1 SEC. 135. AUDITS; REPORTS TO THE PRESIDENT AND CON2 GRESS. 

3 (a) ACCOUNTING.—The books of account of AIFA 

4 shall be maintained in accordance with generally accepted 

5 accounting principles, and shall be subject to an annual 

6 audit by independent public accountants of nationally rec7 ognized standing appointed by the Board of Directors. 

8 (b) REPORTS.— 

9 (1) BOARD OF DIRECTORS.—Not later than 90 

10 days after the last day of each fiscal year, the Board 

11 of Directors shall submit to the President and Con12 gress a complete and detailed report with respect to 

13 the preceding fiscal year, setting forth— 

14 (A) a summary of the operations of AIFA, 

15 for such fiscal year; 

16 (B) a schedule of the obligations of AIFA 

17 and capital securities outstanding at the end of 

18 such fiscal year, with a statement of the 

19 amounts issued and redeemed or paid during 

20 such fiscal year; 

21 (C) the status of infrastructure projects re22 ceiving funding or other assistance pursuant to 

23 this subtitle during such fiscal year, including 

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1 ship, or operational interest in such infrastruc2 ture projects; 

3 (D) a description of the successes and 

4 challenges encountered in lending to rural com5 munities, including the role of the Center for 

6 Excellence and the Office of Rural Assistance 

7 established under this subtitle; and 

8 (E) an assessment of the risks of the port9 folio of AIFA, prepared by an independent 

10 source. 

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

12 date of the enactment of this Act, the Comptroller 

13 General of the United States shall conduct an eval14 uation of, and shall submit to Congress a report on, 

15 activities of AIFA for the fiscal years covered by the 

16 report that includes an assessment of the impact 

17 and benefits of each funded infrastructure project, 

18 including a review of how effectively each such infra19 structure project accomplished the goals prioritized 

20 by the infrastructure project criteria of AIFA. 

21 (c) BOOKS AND RECORDS.— 

22 (1) IN GENERAL.—AIFA shall maintain ade23 quate books and records to support the financial 

24 transactions of AIFA, with a description of financial 

25 transactions and infrastructure projects receiving 


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1 funding, and the amount of funding for each such 

2 project maintained on a publically accessible data3 base. 

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

5 The books and records of AIFA shall at all times be 

6 open to inspection by the Secretary of the Treasury, 

7 the Special Inspector General, and the Comptroller 

8 General of the United States. 

9 SEC. 136. ADMINISTRATIVE FEES. 

10 (a) IN GENERAL.—In addition to fees that may be 

11 collected under section 133(e), the chief executive officer 

12 shall establish and collect fees from eligible funding recipi13 ents with respect to loans and loan guarantees under this 

14 subtitle that— 

15 (1) are sufficient to cover all or a portion of the 

16 administrative costs to the Federal Government for 

17 the operations of AIFA, including the costs of expert 

18 firms, including counsel in the field of municipal and 

19 project finance, and financial advisors to assist with 

20 underwriting, credit analysis, or other independent 

21 reviews, as appropriate; 

22 (2) may be in the form of an application or 

23 transaction fee, or other form established by the 

24 CEO; and 


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1 (3) may be based on the risk premium associ2 ated with the loan or loan guarantee, taking into 

3 consideration— 

4 (A) the price of United States Treasury 

5 obligations of a similar maturity; 

6 (B) prevailing market conditions; 

7 (C) the ability of the infrastructure project 

8 to support the loan or loan guarantee; and 

9 (D) the total amount of the loan or loan 

10 guarantee. 

11 (b) AVAILABILITY OF AMOUNTS.—Amounts collected 

12 under paragraphs (1), (2), and (3) of subsection (a) shall 

13 be available without further action; provided further, that 

14 the source of fees paid under this section shall not be a 

15 loan or debt obligation guaranteed by the Federal Govern16 ment. 

17 SEC. 137. EFFICIENCY OF AIFA. 

18 The chief executive officer shall, to the extent pos19 sible, take actions consistent with this subtitle to minimize 

20 the risk and cost to the taxpayer of AIFA activities. Fees 

21 and premiums for loan guarantee or insurance coverage 

22 will be set at levels that minimize administrative and Fed23 eral credit subsidy costs to the Government (as defined 

24 in section 502 of the Federal Credit Reform Act of 1990) 

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1 gram’s objectives, consistent with policies as set forth in 

2 the Business Plan. 

3 SEC. 138. FUNDING. 

4 There is appropriated to AIFA to carry out this sub5 title, for the cost of direct loans and loan guarantees sub6 ject to the limitations under section 132, and for adminis7 trative costs, $10,000,000,000, to remain available until 

8 expended. Such costs, including the costs of modifying 

9 such loans, shall be as defined in section 502 of the Fed10 eral Credit Reform Act of 1990. Of this amount, not more 

11 than $25,000,000 for each of fiscal years 2012 through 

12 2013, and not more than $50,000,000 for fiscal year 2014 

13 may be used for administrative costs of AIFA. Not more 

14 than 5 percent of such amount shall be used to offset sub15 sidy costs associated with rural projects. Amounts author16 ized shall be available without further action. 

17 Subtitle C—Extension of Exemp18 tion From Alternative Minimum 

19 Tax Treatment for Certain Tax20 exempt Bonds 

21 SEC. 141. EXTENSION OF EXEMPTION FROM ALTERNATIVE 

22 MINIMUM TAX TREATMENT FOR CERTAIN 

23 TAX-EXEMPT BONDS. 

24 (a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 

25 of the Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘January 1, 2011’’ in subclause 

2 (I) and inserting ‘‘January 1, 2013’’; and 

3 (2) by striking ‘‘AND 2010’’ in the heading and 

4 inserting ‘‘, 2010, 2011, AND 2012’’. 

5 (b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 

6 section 56(g)(4)(B) of the Internal Revenue Code of 1986 

7 is amended— 

8 (1) by striking ‘‘January 1, 2011’’ in subclause 

9 (I) and inserting ‘‘January 1, 2013’’; and 

10 (2) by striking ‘‘AND 2010’’ in the heading and 

11 inserting ‘‘, 2010, 2011, AND 2012’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to obligations issued after Decem14 ber 31, 2010. 

15 TITLE II—SURTAX ON 

16 MILLIONAIRES 

17 SEC. 201. SURTAX ON MILLIONAIRES. 

18 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

19 Internal Revenue Code of 1986 is amended by adding at 

20 the end the following new part: 

21 ‘‘PART VIII—SURTAX ON MILLIONAIRES 

‘‘Sec. 59B. Surtax on millionaires. 

22 ‘‘SEC. 59B. SURTAX ON MILLIONAIRES. 

23 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

24 other than a corporation for any taxable year beginning 


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1 after 2012, there is hereby imposed (in addition to any 

2 other tax imposed by this subtitle) a tax equal to 0.7 per3 cent of so much of the modified adjusted gross income 

4 of the taxpayer for such taxable year as exceeds 

5 $1,000,000 ($500,000, in the case of a married individual 

6 filing a separate return). 

7 ‘‘(b) INFLATION ADJUSTMENT.— 

8 ‘‘(1) IN GENERAL.—In the case of any taxable 

9 year beginning after 2013, each dollar amount under 

10 subsection (a) shall be increased by an amount equal 

11 to— 

12 ‘‘(A) such dollar amount, multiplied by 

13 ‘‘(B) the cost-of-living adjustment deter14 mined under section 1(f)(3) for the calendar 

15 year in which the taxable year begins, deter16 mined by substituting ‘calendar year 2011’ for 

17 ‘calendar year 1992’ in subparagraph (B) 

18 thereof. 

19 ‘‘(2) ROUNDING.—If any amount as adjusted 

20 under paragraph (1) is not a multiple of $10,000, 

21 such amount shall be rounded to the next highest 

22 multiple of $10,000. 

23 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

24 purposes of this section, the term ‘modified adjusted gross 

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1 duction (not taken into account in determining adjusted 

2 gross income) allowed for investment interest (as defined 

3 in section 163(d)). In the case of an estate or trust, ad4 justed gross income shall be determined as provided in sec5 tion 67(e). 

6 ‘‘(d) SPECIAL RULES.— 

7 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

8 nonresident alien individual, only amounts taken 

9 into account in connection with the tax imposed 

10 under section 871(b) shall be taken into account 

11 under this section. 

12 ‘‘(2) CITIZENS AND RESIDENTS LIVING

13 ABROAD.—The dollar amount in effect under sub14 section (a) shall be decreased by the excess of— 

15 ‘‘(A) the amounts excluded from the tax16 payer’s gross income under section 911, over 

17 ‘‘(B) the amounts of any deductions or ex18 clusions disallowed under section 911(d)(6) 

19 with respect to the amounts described in sub20 paragraph (A). 

21 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

22 shall not apply to a trust all the unexpired interests 

23 in which are devoted to one or more of the purposes 

24 described in section 170(c)(2)(B). 


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1 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

2 CHAPTER FOR CERTAIN PURPOSES.—The tax im3 posed under this section shall not be treated as tax 

4 imposed by this chapter for purposes of determining 

5 the amount of any credit under this chapter or for 

6 purposes of section 55.’’. 

7 (b) CLERICAL AMENDMENT.—The table of parts for 

8 subchapter A of chapter 1 of the Internal Revenue Code 

9 of 1986 is amended by adding at the end the following 

10 new item: 

‘‘PART VIII. SURTAX ON MILLIONAIRES.’’. 

11 (c) SECTION 15 NOT TO APPLY.—The amendment 

12 made by subsection (a) shall not be treated as a change 

13 in a rate of tax for purposes of section 15 of the Internal 

14 Revenue Code of 1986. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 December 31, 2012. 


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Calendar No. 213 

112TH CONGRESS 

1ST SESSION S. 1769 

A BILL 

To put workers back on the job while rebuilding 

and modernizing America. 

NOVEMBER 1, 2011 

Read the second time and placed on the calendar 


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