II 

113TH CONGRESS 

1ST SESSION S. 1716 

To facilitate efficient investments and financing of infrastructure projects 

and new long-term job creation through the establishment of an Infrastructure Financing Authority, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 14, 2013 

Mr. WARNER (for himself, Mr. BLUNT, Mr. GRAHAM, Mrs. GILLIBRAND, Mr. 

HELLER, Mr. COONS, Ms. KLOBUCHAR, Mr. WICKER, Mrs. MCCASKILL, 

and Mr. KIRK) introduced the following bill; which was read twice and 

referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To facilitate efficient investments and financing of infrastructure projects and new long-term job creation through 

the establishment of an Infrastructure Financing Authority, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Building and Renewing Infrastructure for Development 

6 and Growth in Employment Act’’ or the ‘‘BRIDGE 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. Findings and purpose. 

Sec. 3. Definitions. 

TITLE I—INFRASTRUCTURE FINANCING AUTHORITY 

Sec. 101. Establishment and general authority of IFA. 

Sec. 102. Voting members of the Board of Directors. 

Sec. 103. Chief executive officer of IFA. 

Sec. 104. Powers and duties of the Board of Directors. 

Sec. 105. Senior management. 

Sec. 106. Office of Technical and Rural Assistance. 

Sec. 107. Special Inspector General for IFA. 

Sec. 108. Other personnel. 

Sec. 109. Compliance. 

TITLE II—TERMS AND LIMITATIONS ON DIRECT LOANS AND 

LOAN GUARANTEES 

Sec. 201. Eligibility criteria for assistance from IFA and terms and limitations 

of loans. 

Sec. 202. Loan terms and repayment. 

Sec. 203. Compliance and enforcement. 

Sec. 204. Audits; reports to the President and Congress. 

Sec. 205. Effect on other laws. 

TITLE III—FUNDING OF IFA 

Sec. 301. Fees. 

Sec. 302. Self-sufficiency of IFA. 

Sec. 303. Funding. 

Sec. 304. Contract authority. 

Sec. 305. Limitation on authority. 

TITLE IV—BUDGETARY EFFECTS 

Sec. 401. Budgetary effects. 

3 SEC. 2. FINDINGS AND PURPOSE. 

4 (a) FINDINGS.—Congress finds that— 

5 (1) infrastructure has always been a vital ele6 ment of the economic strength of the United States 

7 and a key indicator of the international leadership of 

8 the United States; 


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1 (2) the Erie Canal, the Hoover Dam, the rail2 roads, and the interstate highway system are all tes3 taments to the ingenuity of the United States and 

4 have helped propel and maintain the United States 

5 as the largest economy in the world; 

6 (3) according to the World Economic Forum’s 

7 Global Competitiveness Report, the United States 

8 fell to fifth place in 2011, and dropped to seventh 

9 place overall in 2012, however, in the ‘‘Quality of 

10 overall infrastructure’’ category of the same report, 

11 the United States ranked 25th in the world; 

12 (4) according to the World Bank’s 2012 Logis13 tic Performance Index, the capacity of countries to 

14 efficiently move goods and connect manufacturers 

15 and consumers with international markets is improv16 ing around the world, and the United States now 

17 ranks ninth in the world in logistics-related infra18 structure behind countries from both Europe and 

19 Asia; 

20 (5) according to a January 2009 report from 

21 the University of Massachusetts/Alliance for Amer22 ican Manufacturing entitled ‘‘Employment, Produc23 tivity and Growth’’, infrastructure investment is a 

24 ‘‘highly effective engine of job creation’’ such that 


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1 $1,000,000,000 in new investment in infrastructure 

2 results in 18,000 total long-term jobs; 

3 (6) according to the American Society of Civil 

4 Engineers, the current condition of the infrastruc5 ture in the United States earns a grade point aver6 age of D+, and an estimated $1,600,000,000,000 of 

7 additional investment is needed over the next 7 

8 years to bring the infrastructure of the United 

9 States up to adequate condition; 

10 (7) according to the National Surface Trans11 portation Policy and Revenue Study Commission, 

12 $225,000,000,000 is needed annually from all 

13 sources for the next 50 years to upgrade the United 

14 States surface transportation system to a state of 

15 good repair and create a more advanced system; 

16 (8) the current infrastructure financing mecha17 nisms of the United States, both on the Federal and 

18 State level, will fail to meet current and foreseeable 

19 demands and will create large funding gaps; 

20 (9) published reports state that there may not 

21 be enough demand for municipal bonds to maintain 

22 the same level of borrowing at the same rates, re23 sulting in significantly decreased infrastructure in24 vestment at the State and local level; 


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1 (10) current funding mechanisms are not read2 ily scalable and do not— 

3 (A) serve large in-State or cross-jurisdic4 tional infrastructure projects, projects of re5 gional or national significance, or projects that 

6 cross sector silos; 

7 (B) sufficiently catalyze private sector in8 vestment; or 

9 (C) ensure the optimal return on public re10 sources; 

11 (11) although grant programs of the Federal 

12 Government must continue to play a central role in 

13 financing the infrastructure needs of the United 

14 States, current and foreseeable demands on existing 

15 Federal, State, and local funding for infrastructure 

16 expansion clearly exceed the resources to support 

17 those programs by margins wide enough to prompt 

18 serious concerns about the ability of the United 

19 States to sustain long-term economic development, 

20 productivity, and international competitiveness; 

21 (12) the capital markets, including pension 

22 funds, private equity funds, mutual funds, sovereign 

23 wealth funds, and other investors, have a growing 

24 interest in infrastructure investment and represent 


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1 hundreds of billions of dollars of potential invest2 ment; and 

3 (13) the establishment of a federally owned, 

4 independent, professionally managed institution that 

5 could provide credit support to qualified infrastruc6 ture projects of regional and national significance, 

7 making transparent merit-based investment deci8 sions based on the commercial viability of infrastruc9 ture projects, would catalyze the participation of sig10 nificant private investment capital. 

11 (b) PURPOSE.—The purpose of this Act is to facili12 tate investment in, and the long-term financing of, eco13 nomically viable eligible infrastructure projects of regional 

14 or national significance that are in the public interest in 

15 a manner that complements existing Federal, State, local, 

16 and private funding sources for these projects and intro17 duces a merit-based system for financing those projects, 

18 in order to mobilize significant private sector investment, 

19 create long-term jobs, and ensure United States competi20 tiveness through a self-sustaining institution that limits 

21 the need for ongoing Federal funding. 

22 SEC. 3. DEFINITIONS. 

23 In this Act: 

24 (1) BLIND TRUST.—The term ‘‘blind trust’’ 

25 means a trust in which the beneficiary has no knowlVerDate Mar 15 2010 23:39 Nov 19, 2013 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1716.IS S1716

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1 edge of the specific holdings and no rights over how 

2 those holdings are managed by the fiduciary of the 

3 trust prior to the dissolution of the trust. 

4 (2) BOARD OF DIRECTORS.—The term ‘‘Board 

5 of Directors’’ means the Board of Directors of IFA. 

6 (3) CHAIRPERSON.—The term ‘‘Chairperson’’ 

7 means the Chairperson of the Board of Directors of 

8 IFA. 

9 (4) CHIEF EXECUTIVE OFFICER.—The term 

10 ‘‘chief executive officer’’ means the chief executive 

11 officer of IFA, appointed under section 103. 

12 (5) COST.—The term ‘‘cost’’ has the meaning 

13 given the term in section 502 of the Federal Credit 

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

15 (6) DIRECT LOAN.—The term ‘‘direct loan’’ has 

16 the meaning given the term in section 502 of the 

17 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

18 (7) ELIGIBLE ENTITY.—The term ‘‘eligible enti19 ty’’ means— 

20 (A) an individual; 

21 (B) a corporation; 

22 (C) a partnership, including a public-pri23 vate partnership; 

24 (D) a joint venture; 

25 (E) a trust; 


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1 (F) a State or any other governmental en2 tity, including a political subdivision or any 

3 other instrumentality of a State; or 

4 (G) a revolving fund. 

5 (8) ELIGIBLE INFRASTRUCTURE PROJECT.— 

6 (A) IN GENERAL.—The term ‘‘eligible in7 frastructure project’’ means the construction, 

8 consolidation, alteration, or repair of the fol9 lowing sectors: 

10 (i) Intercity passenger or freight rail 

11 lines. 

12 (ii) Intercity passenger rail facilities 

13 or equipment. 

14 (iii) Intercity freight rail facilities or 

15 equipment. 

16 (iv) Intercity passenger bus facilities 

17 or equipment. 

18 (v) Public transportation facilities or 

19 equipment. 

20 (vi) Highway facilities, including 

21 bridges and tunnels. 

22 (vii) Airports. 

23 (viii) Air traffic control systems. 


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1 (ix) Port or marine terminal facilities, 

2 including approaches to marine terminal 

3 facilities or inland port facilities. 

4 (x) Port or marine equipment, includ5 ing fixed equipment to serve approaches to 

6 marine terminals or inland ports. 

7 (xi) Transmission or distribution pipe8 lines. 

9 (xii) Inland waterways. 

10 (xiii) Intermodal facilities or equip11 ment related to 2 or more of the sectors 

12 described in clauses (i) through (xii). 

13 (xiv) Water treatment and solid waste 

14 disposal facilities, including drinking water 

15 facilities. 

16 (xv) Storm water management sys17 tems. 

18 (xvi) Dams and levees. 

19 (xvii) Facilities or equipment for en20 ergy transmission, distribution or storage. 

21 (B) AUTHORITY OF THE BOARD OF DIREC22 TORS TO MODIFY SECTORS.—The Board of Di23 rectors may make modifications, at the discre24 tion of the Board, to any of the sectors de25 scribed in subparagraph (A) by a vote of not 


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1 fewer than 5 of the voting members of the 

2 Board of Directors. 

3 (9) IFA.—The term ‘‘IFA’’ means the Infra4 structure Financing Authority established by this 

5 Act. 

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

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

8 minus, Baa3, or higher assigned to an eligible infra9 structure project by a ratings agency. 

10 (11) LOAN GUARANTEE.—The term ‘‘loan guar11 antee’’ has the meaning given the term in section 

12 502 of the Federal Credit Reform Act of 1990 (2 

13 U.S.C. 661a). 

14 (12) PUBLIC-PRIVATE PARTNERSHIP.—The 

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

16 entity— 

17 (A)(i) that is undertaking the development 

18 of all or part of an eligible infrastructure 

19 project that will have a measurable public ben20 efit, pursuant to requirements established in 1 

21 or more contracts between the entity and a 

22 State or an instrumentality of a State; or 

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

24 such an eligible infrastructure project, are subVerDate Mar 15 2010 03:11 Nov 20, 2013 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1716.IS S1716

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1 ject to regulation by a State or any instrumen2 tality of a State; 

3 (B) that owns, leases, or operates or will 

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

5 in part; and 

6 (C) the participants in which include not 

7 fewer than 1 nongovernmental entity with sig8 nificant investment and some control over the 

9 project or entity sponsoring the project vehicle. 

10 (13) RATING AGENCY.—The term ‘‘rating agen11 cy’’ means a credit rating agency registered with the 

12 Securities and Exchange Commission as a nationally 

13 recognized statistical rating organization (as defined 

14 in section 3(a) of the Securities Exchange Act of 

15 1934 (15 U.S.C. 78c(a))). 

16 (14) RURAL INFRASTRUCTURE PROJECT.—The 

17 term ‘‘rural infrastructure project’’— 

18 (A) has the same meaning given the term 

19 in section 601(15) of title 23, United States 

20 Code; and 

21 (B) includes any eligible infrastructure 

22 project located in an area described in such sec23 tion 601(15). 


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1 (15) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of the Treasury or the designee 

3 of the Secretary of the Treasury. 

4 (16) SENIOR MANAGEMENT.—The term ‘‘senior 

5 management’’ means the chief financial officer, chief 

6 risk officer, chief compliance officer, general counsel, 

7 chief lending officer, and chief operations officer of 

8 IFA, and such other officers as the Board of Direc9 tors may, by majority vote, add to senior manage10 ment. 

11 (17) STATE.—The term ‘‘State’’ means— 

12 (A) each of the several States of the 

13 United States; and 

14 (B) the District of Columbia. 

15 TITLE I—INFRASTRUCTURE 

16 FINANCING AUTHORITY 

17 SEC. 101. ESTABLISHMENT AND GENERAL AUTHORITY OF 

18 IFA. 

19 (a) ESTABLISHMENT OF IFA.—The Infrastructure 

20 Financing Authority is established as a wholly owned Gov21 ernment corporation. 

22 (b) GENERAL AUTHORITY OF IFA.—IFA shall— 

23 (1) provide direct loans and loan guarantees to 

24 facilitate eligible infrastructure projects that are ecoVerDate Mar 15 2010 23:39 Nov 19, 2013 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1716.IS S1716

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1 nomically viable, in the public interest, and of re2 gional or national significance; and 

3 (2) carry out any other activities and duties au4 thorized under this Act. 

5 (c) INCORPORATION.— 

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

7 appointed shall be deemed the incorporator of IFA, 

8 and the incorporation shall be held to have been ef9 fected from the date of the first meeting of the 

10 Board of Directors. 

11 (2) CORPORATE OFFICE.—IFA shall— 

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

13 and 

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

15 be considered to be a resident of Washington, 

16 DC. 

17 (d) RESPONSIBILITY OF THE SECRETARY.—The Sec18 retary shall take such action as may be necessary to assist 

19 in implementing IFA and in carrying out the purpose of 

20 this Act. 

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

22 31, United States Code, does not apply to IFA, unless oth23 erwise specifically provided in this Act. 


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1 SEC. 102. VOTING MEMBERS OF THE BOARD OF DIREC2 TORS. 

3 (a) VOTING MEMBERSHIP OF THE BOARD OF DIREC4 TORS.— 

5 (1) IN GENERAL.—IFA shall have a Board of 

6 Directors consisting of 7 voting members appointed 

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

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

9 from the same political party. 

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

11 of the Board of Directors shall be designated by the 

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

13 Senate, to serve as Chairperson of the Board of Di14 rectors. 

15 (3) CONGRESSIONAL RECOMMENDATIONS.—Not 

16 later than 30 days after the date of enactment of 

17 this Act, the majority leader of the Senate, the mi18 nority leader of the Senate, the Speaker of the 

19 House of Representatives, and the minority leader of 

20 the House of Representatives shall each submit a 

21 recommendation to the President for appointment of 

22 a member of the Board of Directors, after consulta23 tion with the appropriate committees of Congress. 

24 (4) SPECIAL CONSIDERATION OF RURAL INTER25 ESTS AND GEOGRAPHIC DIVERSITY.—In making an 

26 appointment under this subsection, the President 


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1 shall give consideration to the geographic areas of 

2 the United States in which the members of the 

3 Board of Directors live and work, particularly to en4 sure that the infrastructure priorities and concerns 

5 of each region of the country, including rural areas 

6 and small communities, are represented on the 

7 Board of Directors. 

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

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

10 of the Board of Directors. 

11 (c) QUALIFICATIONS OF VOTING MEMBERS.—Each 

12 voting member of the Board of Directors shall— 

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

14 (2) have significant demonstrated expertise in— 

15 (A) the management and administration of 

16 a financial institution relevant to the operation 

17 of IFA; or 

18 (B) the financing, development, or oper19 ation of infrastructure projects, including in the 

20 evaluation and selection of eligible infrastruc21 ture projects based on the purposes, goals, and 

22 objectives of this Act. 

23 (d) TERMS.— 


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1 (1) IN GENERAL.—Except as otherwise pro2 vided in this Act, each voting member of the Board 

3 of Directors shall be appointed for a term of 5 years. 

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

5 members first appointed to the Board of Directors— 

6 (A) the initial Chairperson and 3 of the 

7 other voting member shall each be appointed 

8 for a term of 5 years; and 

9 (B) the remaining 3 voting members shall 

10 each be appointed for a term of 2 years. 

11 (3) DATE OF INITIAL NOMINATIONS.—The ini12 tial nominations for the appointment of all voting 

13 members of the Board of Directors shall be made 

14 not later than 60 days after the date of enactment 

15 of this Act. 

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

17 the initial voting members appointed under this sec18 tion shall commence immediately upon the date of 

19 appointment, except that, for purposes of calculating 

20 the term limits specified in this subsection, the ini21 tial terms shall each be construed as beginning on 

22 January 22 of the year following the date of the ini23 tial appointment. 

24 (5) VACANCIES.— 


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1 (A) IN GENERAL.—A vacancy in the posi2 tion of a voting member of the Board of Direc3 tors shall be filled by the President, by and 

4 with the advice and consent of the Senate. 

5 (B) TERM.—A member appointed to fill a 

6 vacancy on the Board of Directors occurring be7 fore the expiration of the term for which the 

8 predecessor was appointed shall be appointed 

9 only for the remainder of that term. 

10 (e) MEETINGS.— 

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

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

13 of Directors shall be— 

14 (A) open to the public; and 

15 (B) preceded by reasonable public notice. 

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

17 meet— 

18 (A) not later than 60 days after the date 

19 on which all members of the Board of Directors 

20 are first appointed; 

21 (B) at least quarterly after the date de22 scribed in subparagraph (A); and 

23 (C) at the call of the Chairperson or 3 vot24 ing members of the Board of Directors. 

25 (3) EXCEPTION FOR CLOSED MEETINGS.— 


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1 (A) IN GENERAL.—The voting members of 

2 the Board of Directors may, by majority vote, 

3 close a meeting to the public if, during the 

4 meeting to be closed, there is likely to be dis5 closed proprietary or sensitive information re6 garding an eligible infrastructure project under 

7 consideration for assistance under this Act. 

8 (B) AVAILABILITY OF MINUTES.—The 

9 Board of Directors shall prepare minutes of any 

10 meeting that is closed to the public, which min11 utes shall be made available as soon as prac12 ticable, but not later than 1 year after the date 

13 of the closed meeting, with any necessary 

14 redactions to protect any proprietary or sen15 sitive information. 

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

17 Board of Directors, 5 voting members of the Board 

18 of Directors shall constitute a quorum. 

19 (f) COMPENSATION OF MEMBERS.—Each voting 

20 member of the Board of Directors shall be compensated 

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

22 of basic pay prescribed for level III of the Executive 

23 Schedule under section 5314 of title 5, United States 

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


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1 the member is engaged in the performance of the duties 

2 of the Board of Directors. 

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

4 the Board of Directors may not participate in any review 

5 or decision affecting an eligible infrastructure project 

6 under consideration for assistance under this Act, if the 

7 member has or is affiliated with an entity who has a finan8 cial interest in that project. 

9 SEC. 103. CHIEF EXECUTIVE OFFICER OF IFA. 

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

11 shall— 

12 (1) be a nonvoting member of the Board of Di13 rectors; 

14 (2) be responsible for all activities of IFA; and 

15 (3) support the Board of Directors in accord16 ance with this Act and as the Board of Directors de17 termines to be necessary. 

18 (b) APPOINTMENT AND TENURE OF THE CHIEF EX19 ECUTIVE OFFICER.— 

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

21 the chief executive officer, by and with the advice 

22 and consent of the Senate. 

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

24 appointed for a term of 6 years. 

25 (3) VACANCIES.— 


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1 (A) IN GENERAL.—Any vacancy in the of2 fice of the chief executive officer shall be filled 

3 by the President, by and with the advice and 

4 consent of the Senate. 

5 (B) TERM.—The person appointed to fill a 

6 vacancy in the chief executive officer position 

7 that occurs before the expiration of the term for 

8 which the predecessor was appointed shall be 

9 appointed only for the remainder of that term. 

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

11 (1) shall have significant expertise in manage12 ment and administration of a financial institution, 

13 or significant expertise in the financing and develop14 ment of infrastructure projects; and 

15 (2) may not— 

16 (A) hold any other public office; 

17 (B) have any financial interest in an eligi18 ble infrastructure project then being considered 

19 by the Board of Directors, unless that interest 

20 is placed in a blind trust; or 

21 (C) have any financial interest in an in22 vestment institution or its affiliates or any 

23 other entity seeking or likely to seek financial 

24 assistance for any eligible infrastructure project 

25 from IFA, unless any such interest is placed in 


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1 a blind trust for the tenure of the service of the 

2 chief executive officer plus 2 additional years. 

3 (d) RESPONSIBILITIES.—The chief executive officer 

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

5 may be prescribed by this Act, the bylaws of IFA, or the 

6 Board of Directors, including— 

7 (1) responsibility for the development and im8 plementation of the strategy of IFA, including— 

9 (A) the development and submission to the 

10 Board of Directors of the annual business plans 

11 and budget; 

12 (B) the development and submission to the 

13 Board of Directors of a long-term strategic 

14 plan; and 

15 (C) the development, revision, and submis16 sion to the Board of Directors of internal poli17 cies; and 

18 (2) responsibility for the management and over19 sight of the daily activities, decisions, operations, 

20 and personnel of IFA. 

21 (e) COMPENSATION.— 

22 (1) IN GENERAL.—Any compensation assess23 ment or recommendation by the chief executive offi24 cer under this section 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 subsection 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. 104. POWERS AND DUTIES OF THE BOARD OF DIREC11 TORS. 

12 The Board of Directors shall— 

13 (1) as soon as practicable after the date on 

14 which all members are appointed, approve or dis15 approve senior management appointed by the chief 

16 executive officer; 

17 (2) not later than 180 days after the date on 

18 which all members are appointed— 

19 (A) develop and approve the bylaws of 

20 IFA, including bylaws for the regulation of the 

21 affairs and conduct of the business of IFA, con22 sistent with the purpose, goals, objectives, and 

23 policies set forth in this Act; 

24 (B) establish subcommittees, including an 

25 audit committee that is composed solely of 


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1 members of the Board of Directors, other than 

2 the chief executive officer; 

3 (C) develop and approve, in consultation 

4 with senior management, a conflict-of-interest 

5 policy for the Board of Directors and for senior 

6 management; 

7 (D) approve or disapprove internal policies 

8 that the chief executive officer shall submit to 

9 the Board of Directors, including— 

10 (i) policies regarding the loan applica11 tion and approval process, including appli12 cation procedures and project approval 

13 processes; 

14 (ii) operational guidelines; and 

15 (E) approve or disapprove a 1-year busi16 ness plan and budget for IFA; 

17 (3) ensure that IFA is at all times operated in 

18 a manner that is consistent with this Act, by— 

19 (A) monitoring and assessing the effective20 ness of IFA in achieving its strategic goals; 

21 (B) reviewing and approving internal poli22 cies, annual business plans, annual budgets, 

23 and long-term strategies submitted by the chief 

24 executive officer; 


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1 (C) reviewing and approving annual re2 ports submitted by the chief executive officer; 

3 (D) engaging 1 or more external auditors, 

4 as set forth in this Act; and 

5 (E) reviewing and approving all changes to 

6 the organization of senior management; 

7 (4) appoint and fix, by a vote of not less than 

8 5 of the 7 voting members of the Board of Direc9 tors, and without regard to the provisions of chapter 

10 51 or subchapter III of chapter 53 of title 5, United 

11 Sates Code, the compensation and adjustments to 

12 compensation of all IFA personnel, provided that in 

13 appointing and fixing any compensation or adjust14 ments to compensation under this paragraph, the 

15 Board shall— 

16 (A) consult with, and seek to maintain 

17 comparability with, other comparable Federal 

18 personnel, as the Board of Directors may deter19 mine to be appropriate; 

20 (B) consult with the Office of Personnel 

21 Management; and 

22 (C) carry out those duties consistent with 

23 merit principles, where applicable, as well as the 

24 education, experience, level of responsibility, ge25 ographic differences, comparability to private 


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1 sector positions, and retention and recruitment 

2 needs in determining compensation of per3 sonnel; 

4 (5) serve as the primary liaison for IFA in 

5 interactions with Congress, the Secretary of Trans6 portation and other Executive Branch officials, and 

7 State and local governments, and to represent the 

8 interests of IFA in those interactions and others; 

9 (6) approve by a vote of not less than 5 of the 

10 7 voting members of the Board of Directors any 

11 changes to the bylaws or internal policies of IFA; 

12 (7) have the authority and responsibility— 

13 (A) to oversee entering into and carrying 

14 out such contracts, leases, cooperative agree15 ments, or other transactions as are necessary to 

16 carry out this Act; 

17 (B) to approve of the acquisition, lease, 

18 pledge, exchange, and disposal of real and per19 sonal property by IFA and otherwise approve 

20 the exercise by IFA of all of the usual incidents 

21 of ownership of property, to the extent that the 

22 exercise of those powers is appropriate to and 

23 consistent with the purposes of IFA; 

24 (C) to determine the character of, and the 

25 necessity for, the obligations and expenditures 


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1 of IFA, and the manner in which the obliga2 tions and expenditures will be incurred, allowed, 

3 and paid, subject to this Act and other Federal 

4 law specifically applicable to wholly owned Fed5 eral corporations; 

6 (D) to execute, in accordance with applica7 ble bylaws and regulations, appropriate instru8 ments; 

9 (E) to approve other forms of credit en10 hancement that IFA may provide to eligible 

11 projects, as long as the forms of credit enhance12 ments are consistent with the purposes of this 

13 Act and terms set forth in title II; 

14 (F) to exercise all other lawful powers 

15 which are necessary or appropriate to carry out, 

16 and are consistent with, the purposes of IFA; 

17 (G) to sue or be sued in the corporate ca18 pacity of IFA in any court of competent juris19 diction; 

20 (H) to indemnify the members of the 

21 Board of Directors and officers of IFA for any 

22 liabilities arising out of the actions of the mem23 bers and officers in that capacity, in accordance 

24 with, and subject to the limitations contained in 

25 this Act; 


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1 (I) to review all financial assistance pack2 ages to all eligible infrastructure projects, as 

3 submitted by the chief executive officer and to 

4 approve, postpone, or deny the same by major5 ity vote; 

6 (J) to review all restructuring proposals 

7 submitted by the chief executive officer, includ8 ing assignation, pledging, or disposal of the in9 terest of IFA in a project, including payment or 

10 income from any interest owned or held by 

11 IFA, and to approve, postpone, or deny the 

12 same by majority vote; 

13 (K) to enter into binding commitments, as 

14 specified in approved financial assistance pack15 ages; 

16 (L) to determine whether— 

17 (i) to obtain a lien on the assets of an 

18 eligible entity that receives assistance 

19 under this Act; and 

20 (ii) to subordinate a lien under clause 

21 (i) to any other lien securing project obli22 gations; and 

23 (M) to ensure a measurable public benefit 

24 in the selection of eligible infrastructure 


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1 projects and to provide for reasonable public 

2 input in the selection of such projects; 

3 (8) delegate to the chief executive officer those 

4 duties that the Board of Directors determines to be 

5 appropriate, to better carry out the powers and pur6 poses of the Board of Directors under this section; 

7 and 

8 (9) to approve a maximum aggregate amount of 

9 principal exposure of IFA at any given time. 

10 SEC. 105. SENIOR MANAGEMENT. 

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

12 the chief executive officer in the discharge of the respon13 sibilities of the chief executive officer. 

14 (b) APPOINTMENT OF SENIOR MANAGEMENT.—The 

15 chief executive officer shall appoint such senior managers 

16 as are necessary to carry out the purposes of IFA, as ap17 proved by a majority vote of the voting members of the 

18 Board of Directors, including a chief compliance officer, 

19 general counsel, chief operating officer, chief lending offi20 cer, and other positions as determined to be appropriate 

21 by the chief executive officer and Board of Directors. 

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

23 shall serve at the pleasure of the chief executive officer 

24 and the Board of Directors. 


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1 (d) REMOVAL OF SENIOR MANAGEMENT.—Any mem2 ber of senior management may be removed— 

3 (1) by a majority of the voting members of the 

4 Board of Directors at the request of the chief execu5 tive officer; or 

6 (2) by a vote of not fewer than 5 voting mem7 bers of the Board of Directors. 

8 (e) SENIOR MANAGEMENT.— 

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

10 management shall report directly to the chief execu11 tive officer, other than the chief risk officer, who 

12 shall report directly to the Board of Directors. 

13 (2) CHIEF RISK OFFICER.—The chief risk offi14 cer shall be responsible for all functions of IFA re15 lating to— 

16 (A) the creation of financial, credit, and 

17 operational risk management guidelines and 

18 policies; 

19 (B) the establishment of guidelines to en20 sure diversification of lending activities by re21 gion, infrastructure project type, and project 

22 size; 

23 (C) the creation of conforming standards 

24 for infrastructure finance agreements; 


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1 (D) the monitoring of the financial, credit, 

2 and operational exposure of IFA; and 

3 (E) risk management and mitigation ac4 tions, including by reporting those actions, or 

5 recommendations of actions to be taken, di6 rectly to the Board of Directors. 

7 (f) CONFLICTS OF INTEREST.—No individual ap8 pointed to senior management may— 

9 (1) hold any other public office; 

10 (2) have any financial interest in an eligible in11 frastructure project then being considered by the 

12 Board of Directors, unless that interest is placed in 

13 a blind trust; or 

14 (3) have any financial interest in an investment 

15 institution or its affiliates, IFA or its affiliates, or 

16 other entity then seeking or likely to seek financial 

17 assistance for any eligible infrastructure project 

18 from IFA, unless any such interest is placed in a 

19 blind trust during the term of service of that indi20 vidual in a senior management position, and for a 

21 period of 2 years thereafter. 

22 SEC. 106. OFFICE OF TECHNICAL AND RURAL ASSISTANCE. 

23 (a) IN GENERAL.—The chief executive officer shall 

24 create and manage within IFA an office, to be known as 

25 the ‘‘Office of Technical and Rural Assistance’’. 


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1 (b) DUTIES.—The Office of Technical and Rural As2 sistance shall— 

3 (1) in consultation with the Secretary, the Sec4 retary of Transportation, and the heads of other rel5 evant Federal agencies, as determined by the chief 

6 executive officer, provide technical assistance to 

7 State and local governments and parties in public8 private partnerships in the development and financ9 ing of eligible infrastructure projects, including rural 

10 infrastructure projects; 

11 (2) assist the entities described in paragraph 

12 (1) with coordinating loan and loan guarantee pro13 grams available through Federal agencies, including 

14 the Department of Transportation and other Federal 

15 agencies as appropriate; and 

16 (3) work with the entities described in para17 graph (1) to identify and develop a pipeline of 

18 projects suitable for financing through innovative 

19 project financing and performance based project de20 livery, including those projects with the potential for 

21 financing through IFA. 

22 SEC. 107. SPECIAL INSPECTOR GENERAL FOR IFA. 

23 (a) IN GENERAL.— 

24 (1) INITIAL PERIOD.—For the 5-year period be25 ginning on the date of enactment of this Act, the InVerDate Mar 15 2010 23:39 Nov 19, 2013 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1716.IS S1716

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1 spector General of the Department of Treasury shall 

2 serve as the Special Inspector General for IFA in 

3 addition to the existing duties of the Inspector Gen4 eral of the Department of Treasury. 

5 (2) OFFICE OF THE SPECIAL INSPECTOR GEN6 ERAL.—Effective beginning on the day that is 5 

7 years after the date of enactment of this Act, there 

8 is established the Office of the Special Inspector 

9 General for IFA. 

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

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

13 of the Special Inspector General for IFA shall be the 

14 Special Inspector General for IFA (referred to in 

15 this Act as the ‘‘Special Inspector General’’), who 

16 shall be appointed by the President, by and with the 

17 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 practicable after the date of en2 actment of this Act. 

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 (c) DUTIES.—The Special Inspector General shall— 

19 (1) conduct, supervise, and coordinate audits 

20 and investigations of the business activities of IFA; 

21 (2) establish, maintain, and oversee such sys22 tems, procedures, and controls as the Special Inspec23 tor General considers appropriate to discharge the 

24 duty under paragraph (1); and 


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1 (3) carry out any other duties and responsibil2 ities of inspectors general under the Inspector Gen3 eral Act of 1978 (5 U.S.C. App.). 

4 (d) POWERS AND AUTHORITIES.— 

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

6 specified in subsection (c), the Special Inspector 

7 General shall have the authorities provided in section 

8 6 of the Inspector General Act of 1978 (5 U.S.C. 

9 App.). 

10 (2) ADDITIONAL AUTHORITY.—The Special In11 spector General shall carry out the duties specified 

12 in subsection (c)(1) in accordance with section 

13 4(b)(1) of the Inspector General Act of 1978 (5 

14 U.S.C. App.). 

15 (e) PERSONNEL, FACILITIES, AND OTHER RE16 SOURCES.— 

17 (1) ADDITIONAL OFFICERS.— 

18 (A) IN GENERAL.—The Special Inspector 

19 General may select, appoint, and employ such 

20 officers and employees as may be necessary for 

21 carrying out the duties of the Special Inspector 

22 General, subject to the provisions of title 5, 

23 United States Code, governing appointments in 

24 the competitive service, and the provisions of 

25 chapter 51 and subchapter III of chapter 53 of 


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1 such title, relating to classification and General 

2 Schedule pay rates. 

3 (B) EMPLOYMENT AND COMPENSATION.— 

4 The Special Inspector General may exercise the 

5 authorities of subsections (b) through (i) of sec6 tion 3161 of title 5, United States Code (with7 out regard to subsection (a) of that section). 

8 (2) RETENTION OF SERVICES.—The Special In9 spector General may obtain services as authorized by 

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

11 rates not to exceed the equivalent rate prescribed for 

12 grade GS–15 of the General Schedule by section 

13 5332 of such title. 

14 (3) ABILITY TO CONTRACT FOR AUDITS, STUD15 IES, AND OTHER SERVICES.—The Special Inspector 

16 General may enter into contracts and other arrange17 ments for audits, studies, analyses, and other serv18 ices with public agencies and with private persons, 

19 and make such payments as may be necessary to 

20 carry out the duties of the Special Inspector Gen21 eral. 

22 (4) REQUEST FOR INFORMATION.— 

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

24 Special Inspector General for information or as25 sistance from any department, agency, or other 


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1 entity of the Federal Government, the head of 

2 that entity shall, insofar as is practicable and 

3 not in contravention of any existing law, furnish 

4 the information or assistance to the Special In5 spector General or an authorized designee. 

6 (B) REFUSAL TO COMPLY.—If information 

7 or assistance requested by the Special Inspector 

8 General is, in the judgment of the Special In9 spector General, unreasonably refused or not 

10 provided, the Special Inspector General shall re11 port the circumstances to the Secretary, with12 out delay. 

13 (f) REPORTS.— 

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

15 after the date on which the Special Inspector Gen16 eral is confirmed, and every calendar year thereafter, 

17 the Special Inspector General shall submit to the 

18 President and appropriate committees of Congress a 

19 report summarizing the activities of the Special In20 spector General during the previous 1-year period 

21 ending on the date of that report. 

22 (2) PUBLIC DISCLOSURES.—Nothing in this 

23 subsection authorizes the public disclosure of infor24 mation that is— 


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1 (A) specifically prohibited from disclosure 

2 by any other provision of law; 

3 (B) specifically required by Executive order 

4 to be protected from disclosure in the interest 

5 of national defense or national security or in 

6 the conduct of foreign affairs; or 

7 (C) a part of an ongoing criminal inves8 tigation. 

9 SEC. 108. OTHER PERSONNEL. 

10 (a) APPOINTMENT, REMOVAL, AND DEFINITION OF

11 DUTIES.—Except as otherwise provided in the bylaws of 

12 IFA, the chief executive officer, in consultation with the 

13 Board of Directors, shall appoint, remove, and define the 

14 duties of such qualified personnel as are necessary to carry 

15 out the powers, duties, and purpose of IFA, other than 

16 senior management, who shall be appointed in accordance 

17 with section 105. 

18 (b) COORDINATION IN IDENTIFYING QUALIFICA19 TIONS AND EXPERTISE.—In appointing qualified per20 sonnel pursuant to subsection (a), the chief executive offi21 cer shall coordinate with, and seek assistance from, the 

22 Secretary of Transportation in identifying the appropriate 

23 qualifications and expertise in infrastructure project fi24 nance. 


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1 SEC. 109. COMPLIANCE. 

2 The provision of assistance by IFA pursuant to this 

3 Act does not supersede any provision of State law or regu4 lation otherwise applicable to an eligible infrastructure 

5 project. 

6 TITLE II—TERMS AND LIMITA7 TIONS ON DIRECT LOANS AND 

8 LOAN GUARANTEES 

9 SEC. 201. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

10 IFA AND TERMS AND LIMITATIONS OF LOANS. 

11 (a) PUBLIC BENEFIT REQUIRED.— 

12 (1) IN GENERAL.—Any project the use or pur13 pose of which is private and for which no public ben14 efit is created, as determined by the Board of Direc15 tors, shall not be eligible for financial assistance 

16 from IFA under this Act. 

17 (2) CRITERIA.—Financial assistance under this 

18 Act shall only be made available if the applicant for 

19 assistance has demonstrated to the satisfaction of 

20 the Board of Directors that— 

21 (A) the eligible infrastructure project for 

22 which assistance is being sought— 

23 (i) is not for the refinancing of an ex24 isting infrastructure project; and 

25 (ii) meets— 


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1 (I) any pertinent requirements 

2 set forth in this Act; 

3 (II) any criteria established by 

4 the Board of Directors or chief execu5 tive officer in accordance with this 

6 Act; and 

7 (III) the definition of an eligible 

8 infrastructure project; and 

9 (B) for projects involving public-private 

10 partnerships, the project has received contrib11 uted capital or commitments for contributed 

12 capital equal to not less than 10 percent of the 

13 total cost of the eligible infrastructure project 

14 for which assistance is being sought, where 

15 such contributed capital includes 1 or more of 

16 the following— 

17 (i) equity; 

18 (ii) deeply subordinate loans or other 

19 credit and debt instruments, which shall be 

20 junior to any IFA assistance provided for 

21 the project; 

22 (iii) appropriated funds or grants 

23 from governmental sources other than the 

24 Federal Government; or 


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1 (iv) irrevocable private contributions 

2 of funds, grants, property (including 

3 rights-of way), and other assets that di4 rectly reduce or offset project costs. 

5 (b) CONSIDERATIONS.—The criteria established by 

6 the Board of Directors pursuant to this Act shall provide 

7 adequate consideration of— 

8 (1) the economic, financial, technical, environ9 mental, and public benefits and costs of each eligible 

10 infrastructure project under consideration for finan11 cial assistance under this Act, prioritizing eligible in12 frastructure projects that— 

13 (A) demonstrate a clear and measurable 

14 public benefit; 

15 (B) offer value for money to taxpayers; 

16 (C) contribute to regional or national eco17 nomic growth; 

18 (D) lead to long-term job creation; and 

19 (E) mitigate environmental concerns; 

20 (2) the means by which development of the eli21 gible infrastructure project under consideration is 

22 being financed, including— 

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

24 the proposed financing; 


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1 (B) the creditworthiness and standing of 

2 the project sponsors, providers of equity, and 

3 cofinanciers; 

4 (C) the financial assumptions and projec5 tions on which the eligible infrastructure project 

6 is based; and 

7 (D) whether there is sufficient State or 

8 municipal political support for the successful 

9 completion of the eligible infrastructure project; 

10 (3) the likelihood that the provision of assist11 ance by IFA will cause the development to proceed 

12 more promptly and with lower costs for financing 

13 than would be the case without IFA assistance; 

14 (4) the extent to which the provision of assist15 ance by IFA maximizes the level of private invest16 ment in the eligible infrastructure project or sup17 ports a public-private partnership, while providing a 

18 significant public benefit; 

19 (5) the extent to which the provision of assist20 ance by IFA can mobilize the participation of other 

21 financing partners in the eligible infrastructure 

22 project; 

23 (6) the technical and operational viability of the 

24 eligible infrastructure project; 


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1 (7) the proportion of financial assistance from 

2 IFA; 

3 (8) the geographical location of the project, 

4 prioritizing geographical diversity of projects funded 

5 by IFA; 

6 (9) the size of the project and the impact of the 

7 project on the resources of IFA; and 

8 (10) the infrastructure sector of the project, 

9 prioritizing projects from more than 1 sector funded 

10 by IFA. 

11 (c) APPLICATION.— 

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

13 assistance from IFA under this Act for an eligible 

14 infrastructure project shall submit an application to 

15 IFA at such time, in such manner, and containing 

16 such information as the Board of Directors or the 

17 chief executive officer may require. 

18 (2) REVIEW OF APPLICATIONS.— 

19 (A) IN GENERAL.—IFA shall review appli20 cations for assistance under this Act on an on21 going basis. 

22 (B) PREPARATION.—The chief executive 

23 officer, in cooperation with the senior manage24 ment, shall prepare eligible infrastructure 


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1 projects for review and approval by the Board 

2 of Directors. 

3 (3) DEDICATED REVENUE SOURCES.—The Fed4 eral credit instrument shall be repayable, in whole or 

5 in part, from tolls, user fees, or other dedicated rev6 enue sources derived from users or beneficiaries that 

7 also secure the eligible infrastructure project obliga8 tions. 

9 (d) ELIGIBLE INFRASTRUCTURE PROJECT COSTS.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), to be eligible for assistance under this 

12 Act, an eligible infrastructure project shall have 

13 project costs that are reasonably anticipated to equal 

14 or exceed $50,000,000. 

15 (2) RURAL INFRASTRUCTURE PROJECTS.—To 

16 be eligible for assistance under this Act a rural in17 frastructure project shall have project costs that are 

18 reasonably anticipated to equal or exceed 

19 $10,000,000. 

20 (e) LOAN ELIGIBILITY AND MAXIMUM AMOUNTS.— 

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

22 or loan guarantee under this Act shall not exceed 

23 the lesser of— 

24 (A) 49 percent of the reasonably antici25 pated eligible infrastructure project costs; and 


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1 (B) the amount of the senior project obli2 gations, if the direct loan or loan guarantee 

3 does not receive an investment grade rating. 

4 (2) MAXIMUM ANNUAL LOAN AND LOAN GUAR5 ANTEE VOLUME.—The aggregate amount of direct 

6 loans and loan guarantees made by IFA shall not 

7 exceed— 

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

9 operations of IFA, $10,000,000,000 per year; 

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

11 operations of IFA, $20,000,000,000 per year; 

12 and 

13 (C) during any fiscal year thereafter, 

14 $50,000,000,000. 

15 SEC. 202. LOAN TERMS AND REPAYMENT. 

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

17 under this Act with respect to an eligible infrastructure 

18 project shall be on such terms, subject to such conditions, 

19 and contain such covenants, representations, warranties, 

20 and requirements (including requirements for audits) as 

21 the chief executive officer determines appropriate. 

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

23 this Act— 

24 (1) shall— 


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

2 tolls, user fees, or other dedicated revenue 

3 sources derived from users or beneficiaries; and 

4 (B) include a rate covenant, coverage re5 quirement, or similar security feature sup6 porting the project obligations; and 

7 (2) may be secured by a lien— 

8 (A) on the assets of the obligor, including 

9 revenues described in paragraph (1); and 

10 (B) which may be subordinated to any 

11 other lien securing project obligations. 

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

13 on a direct loan under this Act shall be not less than the 

14 yield on Treasury obligations of a similar maturity to the 

15 maturity of the direct loan on the date of execution of 

16 the loan agreement. 

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

18 agreement for assistance under this Act, the chief execu19 tive officer, in consultation with the Director of the Office 

20 of Management and Budget and each rating agency pro21 viding a preliminary rating opinion letter under this sec22 tion, shall determine an appropriate Federal credit subsidy 

23 amount for each direct loan and loan guarantee, taking 

24 into account that preliminary rating opinion letter, as well 


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1 as any comparable market rates available for such a loan 

2 or loan guarantee, should any exist. 

3 (e) CREDIT FEE.— 

4 (1) IN GENERAL.—With respect to each agree5 ment for assistance under this Act, the chief execu6 tive officer shall charge a credit fee to the recipient 

7 of that assistance to pay for, over time, all or a por8 tion of the Federal credit subsidy determined under 

9 subsection (d), with the remainder paid by the ac10 count established for IFA. 

11 (2) DIRECT LOANS.—In the case of a direct 

12 loan, the credit fee described in paragraph (1) shall 

13 be in addition to the base interest rate established 

14 under subsection (c). 

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

16 direct loan or loan guaranteed by IFA under this Act shall 

17 be not later than 35 years after the date of substantial 

18 completion of the eligible infrastructure project, as deter19 mined by the chief executive officer. 

20 (g) PRELIMINARY RATING OPINION LETTER.— 

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

22 shall require each applicant for assistance under this 

23 Act to provide a preliminary rating opinion letter 

24 from at least 1 rating agency, indicating that the 

25 senior obligations of the eligible infrastructure 


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1 project, which may be the Federal credit instrument, 

2 have the potential to achieve an investment-grade 

3 rating. 

4 (2) RURAL INFRASTRUCTURE PROJECTS.—With 

5 respect to a rural infrastructure project, a rating 

6 agency opinion letter described in paragraph (1) 

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

8 guarantee shall receive an internal rating score, 

9 using methods similar to the rating agencies gen10 erated by IFA, measuring the proposed direct loan 

11 or loan guarantee against comparable direct loans or 

12 loan guarantees of similar credit quality in a similar 

13 sector. 

14 (h) INVESTMENT-GRADE RATING REQUIREMENT.— 

15 (1) LOANS AND LOAN GUARANTEES.—The exe16 cution of a direct loan or loan guarantee under this 

17 Act shall be contingent on the senior obligations of 

18 the eligible infrastructure project receiving an invest19 ment-grade rating. 

20 (2) RATING OF IFA OVERALL PORTFOLIO.—The 

21 average rating of the overall portfolio of IFA shall 

22 be not less than investment grade after 5 years of 

23 operation. 

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


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1 (1) SCHEDULE.—The chief executive officer 

2 shall establish a repayment schedule for each direct 

3 loan under this Act, based on the projected cash 

4 flow from eligible infrastructure project revenues 

5 and other repayment sources. 

6 (2) COMMENCEMENT.—Scheduled loan repay7 ments of principal or interest on a direct loan under 

8 this Act shall commence not later than 5 years after 

9 the date of substantial completion of the eligible in10 frastructure project, as determined by the chief exec11 utive officer of IFA. 

12 (3) DEFERRED PAYMENTS OF DIRECT

13 LOANS.— 

14 (A) AUTHORIZATION.—If, at any time 

15 after the date of substantial completion of an 

16 eligible infrastructure project assisted under 

17 this Act, the eligible infrastructure project is 

18 unable to generate sufficient revenues to pay 

19 the scheduled loan repayments of principal and 

20 interest on the direct loan under this Act, the 

21 chief executive officer may allow the obligor to 

22 add unpaid principal and interest to the out23 standing balance of the direct loan, if the result 

24 would benefit the taxpayer. 


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1 (B) INTEREST.—Any payment deferred 

2 under subparagraph (A) shall— 

3 (i) continue to accrue interest, in ac4 cordance with the terms of the obligation, 

5 until fully repaid; and 

6 (ii) be scheduled to be amortized over 

7 the remaining term of the loan. 

8 (C) CRITERIA.— 

9 (i) IN GENERAL.—Any payment defer10 ral under subparagraph (A) shall be con11 tingent on the eligible infrastructure 

12 project meeting criteria established by the 

13 Board of Directors. 

14 (ii) REPAYMENT STANDARDS.—The 

15 criteria established under clause (i) shall 

16 include standards for reasonable assurance 

17 of repayment. 

18 (4) PREPAYMENT OF DIRECT LOANS.— 

19 (A) USE OF EXCESS REVENUES.—Any ex20 cess revenues that remain after satisfying 

21 scheduled debt service requirements on the eli22 gible infrastructure project obligations and di23 rect loan and all deposit requirements under the 

24 terms of any trust agreement, bond resolution, 

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1 tions under this Act may be applied annually to 

2 prepay the direct loan, without penalty. 

3 (B) USE OF PROCEEDS OF REFI4 NANCING.—A direct loan under this Act may be 

5 prepaid at any time, without penalty, from the 

6 proceeds of refinancing from non-Federal fund7 ing sources. 

8 (j) LOAN GUARANTEES.—The terms of a loan guar9 anteed by IFA under this Act shall be consistent with the 

10 terms set forth in this section for a direct loan, except 

11 that the rate on the guaranteed loan and any payment, 

12 prepayment, or refinancing features shall be negotiated 

13 between the obligor and the lender (as defined in section 

14 601(a) of title 23, United States Code) with the consent 

15 of the chief executive officer. 

16 (k) COMPLIANCE WITH FCRA.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), direct loans and loan guarantees author19 ized by this Act shall be subject to the provisions of 

20 the Federal Credit Reform Act of 1990 (2 U.S.C. 

21 661 et seq.). 

22 (2) EXCEPTION.—Section 504(b) of the Federal 

23 Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall 

24 not apply to a loan or loan guarantee under this 

25 Act. 


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1 (l) POLICY OF CONGRESS.—It is the policy of Con2 gress that IFA shall only make a direct loan or loan guar3 antee under this Act if IFA determines that IFA is rea4 sonably expected to recover the full amount of the direct 

5 loan or loan guarantee. 

6 SEC. 203. COMPLIANCE AND ENFORCEMENT. 

7 (a) CREDIT AGREEMENT.—Notwithstanding any 

8 other provision of law, each eligible entity that receives 

9 assistance under this Act shall enter into a credit agree10 ment that requires such entity to comply with all applica11 ble policies and procedures of IFA, in addition to all other 

12 provisions of the loan agreement. 

13 (b) APPLICABILITY OF FEDERAL LAWS.—Each eligi14 ble entity that receives assistance under this Act shall pro15 vide written assurance, in such form and manner and con16 taining such terms as are to be prescribed by IFA, that 

17 the eligible infrastructure project will be performed in 

18 compliance with the requirements of all Federal laws that 

19 would otherwise apply to similar projects to which the 

20 United States is a party, or financed in whole or in part 

21 from Federal funds or in accordance with guarantees of 

22 a Federal agency or financed from funds obtained by 

23 pledge of any contract of a Federal agency to make a loan, 

24 grant, or annual contribution. 


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1 (c) IFA AUTHORITY ON NONCOMPLIANCE.—In any 

2 case in which an eligible entity that receives assistance 

3 under this Act is materially out of compliance with the 

4 loan agreement, or any applicable policy or procedure of 

5 IFA, the Board of Directors may take action— 

6 (1) to cancel unused loan amounts; or 

7 (2) to accelerate the repayment terms of any 

8 outstanding obligation. 

9 SEC. 204. AUDITS; REPORTS TO THE PRESIDENT AND CON10 GRESS. 

11 (a) ACCOUNTING.—The books of account of IFA 

12 shall be— 

13 (1) maintained in accordance with generally ac14 cepted accounting principles; and 

15 (2) subject to an annual audit by independent 

16 public accountants of nationally recognized standing 

17 appointed by the Board of Directors. 

18 (b) REPORTS.— 

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

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

21 of Directors shall submit to the President and Con22 gress a complete and detailed report with respect to 

23 the preceding fiscal year, setting forth— 

24 (A) a summary of the operations of IFA 

25 for that fiscal year; 


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1 (B) a schedule of the obligations of IFA 

2 and capital securities outstanding at the end of 

3 that fiscal year, with a statement of the 

4 amounts issued and redeemed or paid during 

5 that fiscal year; 

6 (C) the status of eligible infrastructure 

7 projects receiving funding or other assistance 

8 pursuant to this Act during that fiscal year, in9 cluding— 

10 (i) all nonperforming loans; and 

11 (ii) disclosure of all entities with a de12 velopment, ownership, or operational inter13 est in those eligible infrastructure projects; 

14 (D) a description of the successes and 

15 challenges encountered in lending to rural com16 munities, including the role of the Office of 

17 Technical and Rural Assistance established 

18 under this Act; and 

19 (E) an assessment of the risks of the port20 folio of IFA, which shall be prepared by an 

21 independent source. 

22 (2) GAO EVALUATION.—Not later than 5 years 

23 after the date of enactment of this Act, the Comp24 troller General of the United States shall conduct an 

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1 merce, Science, and Transportation of the Senate 

2 and to the Committees on Transportation and Infra3 structure and Energy and Commerce of the House 

4 of Representatives a report on the activities of IFA 

5 for the fiscal years covered by the report that in6 cludes— 

7 (A) an assessment of the impact and bene8 fits of each funded eligible infrastructure 

9 project, including a review of how effectively 

10 each eligible infrastructure project accomplished 

11 the goals prioritized by the eligible infrastruc12 ture project criteria of IFA; and 

13 (B) an evaluation of the effectiveness of, 

14 and challenges facing, loan programs at the De15 partment of Transportation and Department of 

16 Energy, and an analysis of the advisability of 

17 consolidating those programs within IFA. 

18 (3) GAO STUDY AND REPORT.—Not later than 

19 10 years after the date of enactment of this Act, the 

20 Comptroller General of the United States shall con21 duct a study and submit to the Committee on Com22 merce, Science, and Transportation of the Senate 

23 and to the Committees on Transportation and Infra24 structure and Energy and Commerce of the House 

25 of Representatives a report on the status of actions 


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1 taken to make IFA a self-sustaining entity, includ2 ing providing recommendations for such legislative 

3 or administrative actions as the Comptroller General 

4 considers necessary for IFA to achieve self-sus5 taining status or to promote a greater likelihood of 

6 achieving such status. 

7 (c) BOOKS AND RECORDS.— 

8 (1) IN GENERAL.—IFA shall maintain adequate 

9 books and records to support the financial trans10 actions of IFA, with a description of financial trans11 actions and eligible infrastructure projects receiving 

12 funding, and the amount of funding for each project 

13 maintained on a publically accessible database. 

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

15 The books and records of IFA shall at all times be 

16 open to inspection by the Secretary, the Special In17 spector General, and the Comptroller General of the 

18 United States. 

19 SEC. 205. EFFECT ON OTHER LAWS. 

20 Nothing in this Act affects or alters the responsibility 

21 of an eligible entity that receives assistance under this Act 

22 to comply with applicable Federal and State laws (includ23 ing regulations) relating to an eligible infrastructure 

24 project. 


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1 TITLE III—FUNDING OF IFA 

2 SEC. 301. FEES. 

3 The chief executive officer shall establish fees with 

4 respect to loans and loan guarantees under this Act that— 

5 (1) are sufficient to cover all the administrative 

6 costs to the Federal Government for the operations 

7 of IFA; 

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

9 transaction fee, or interest rate adjustment; and 

10 (3) may be based on the risk premium associ11 ated with the loan or loan guarantee, taking into 

12 consideration— 

13 (A) the price of Treasury obligations of a 

14 similar maturity; 

15 (B) prevailing market conditions; 

16 (C) the ability of the eligible infrastructure 

17 project to support the loan or loan guarantee; 

18 and 

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

20 guarantee. 

21 SEC. 302. SELF-SUFFICIENCY OF IFA. 

22 The chief executive officer shall, to the extent prac23 ticable, take actions consistent with this Act to make IFA 

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1 eral credit subsidy costs fully funded by fees and risk pre2 miums on loans and loan guarantees. 

3 SEC. 303. FUNDING. 

4 (a) IN GENERAL.—There is authorized to be appro5 priated to IFA to make direct loans and loan guarantees 

6 under this Act $10,000,000,000, to remain available until 

7 expended, of which not more than $25,000,000 for each 

8 of fiscal years 2014 through 2015, and not more than 

9 $50,000,000 for fiscal year 2016 may be used for adminis10 trative costs of IFA. 

11 (b) INTEREST.—The amounts made available to IFA 

12 under this Act shall be placed in interest-bearing accounts. 

13 (c) RURAL INFRASTRUCTURE PROJECTS.—Of the 

14 amounts made available to IFA under this Act, not less 

15 than 5 percent shall be used to offset subsidy costs associ16 ated with rural infrastructure projects. 

17 SEC. 304. CONTRACT AUTHORITY. 

18 Notwithstanding any other provision of law, approval 

19 by the Board of Directors of a Federal credit instrument 

20 that uses funds made available under this Act shall impose 

21 upon the United States a contractual obligation to fund 

22 the Federal credit investment. 

23 SEC. 305. LIMITATION ON AUTHORITY. 

24 IFA shall not have the authority to issue debt in its 

25 own name. 


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1 TITLE IV—BUDGETARY EFFECTS 

2 SEC. 401. BUDGETARY EFFECTS. 

3 The budgetary effects of this Act, for the purpose of 

4 complying with the Statutory Pay-As-You-Go Act of 2010, 

5 shall be determined by reference to the latest statement 

6 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

7 Act, submitted for printing in the Congressional Record 

8 by the Chairman of the Senate Budget Committee, pro9 vided that such statement has been submitted prior to the 

10 vote on passage. 

Æ 


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