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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1674 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                S. 1674

   To provide grants for the repair, renovation, and construction of 
public elementary schools and secondary schools, to establish a school 
          infrastructure bond program, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2017

  Mr. Reed (for himself, Mr. Brown, Ms. Cortez Masto, Ms. Hassan, Ms. 
  Warren, Mr. Whitehouse, Ms. Hirono, and Mr. Cardin) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
   To provide grants for the repair, renovation, and construction of 
public elementary schools and secondary schools, to establish a school 
          infrastructure bond program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Building Improvement Act of 
2017''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) ESEA definitions.--The terms ``elementary school'', 
        ``local educational agency'', ``outlying areas'', ``secondary 
        school'', and ``State educational agency'' have the meanings 
        given the terms in section 8101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8101).
            (2) ASHRAE energy standard for buildings.--The term 
        ``ASHRAE Energy Standard for Buildings'' means American Society 
        of Heating, Refrigerating and Air-Conditioning Engineers 
        Standard 90.1.-2016 or any successor standard.
            (3) Charter school.--The term ``charter school'' has the 
        meaning given the term in section 4310 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 722li).
            (4) CHPS criteria.--The term ``CHPS Criteria'' means the 
        green building rating criteria developed by the Collaborative 
        for High Performance Schools.
            (5) Covered funds.--The term ``covered funds'' means funds 
        provided under title I or title II.
            (6) Early learning facility.--The term ``early learning 
        facility'' means a public facility that--
                    (A) serves children who are not yet in 
                kindergarten; and
                    (B) is under the jurisdiction of a local 
                educational agency.
            (7) Energy star.--The term ``Energy Star'' means the Energy 
        Star program of the Department of Energy and the Environmental 
        Protection Agency.
            (8) Facility condition index.--The term ``facility 
        condition index'' means, as of the date of the calculation, the 
        cost of maintenance, repairs, and replacement deficiencies of a 
        facility, divided by the estimated replacement value of the 
        facility.
            (9) High-need local educational agency.--The term ``high-
        need local educational agency'' means a local educational 
        agency that--
                    (A) serves a high percentage of high-need schools; 
                and
                    (B) is among the local educational agencies in a 
                State with the highest number or proportion of children 
                who are counted under section 1124(c) of the Elementary 
                and Secondary Education Act of 1965, in comparison to 
                other local educational agencies in the State.
            (10) High-need school.--The term ``high-need school'' 
        means--
                    (A) an elementary school or middle school in which 
                not less than 50 percent of the enrolled students are 
                children from low-income families; or
                    (B) a high school in which not less than 40 percent 
                of the enrolled students are children from low-income 
                families, which may be calculated using comparable data 
                from the schools that feed into the high school.
            (11) LEED green building rating system.--The term ``LEED 
        Green Building Rating System'' means the United States Green 
        Building Council Leadership in Energy and Environmental Design 
        green building rating system.
            (12) Low-income family.--The term ``low-income family'' 
        means a family--
                    (A) in which the children are eligible for a free 
                or reduced-price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.);
                    (B) receiving assistance under the program of block 
                grants to States for temporary assistance for needy 
                families established under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.); or
                    (C) in which the children are eligible to receive 
                medical assistance under the Medicaid program under 
                title XIX of the Social Security Act (42 U.S.C. 1396 et 
                seq.).
            (13) Public school facility.--The term ``public school 
        facility'' means a public elementary school or secondary school 
        facility, including a public charter school facility or an 
        existing facility planned for adaptive reuse as a public 
        charter school facility.
            (14) Rural local educational agency.--The term ``rural 
        local educational agency'' means a local educational agency 
        that meets the eligibility requirements under--
                    (A) section 5211(b) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7345(b)) for 
                participation in the program described in subpart 1 of 
                part B of title V of such Act; or
                    (B) section 5221(b) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7351(b)) for 
                participation in the program described in subpart 2 of 
                part B of title V of such Act.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (16) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

    TITLE I--GRANTS FOR SCHOOL REPAIR, RENOVATION, AND CONSTRUCTION

SEC. 101. GRANTS FOR SCHOOL REPAIR, RENOVATION, AND CONSTRUCTION.

    (a) Allocation of Funds.--
            (1) Reservations.--From the funds appropriated under 
        subsection (i) for a fiscal year, the Secretary shall reserve 1 
        percent to provide assistance to the outlying areas and for 
        payments to the Secretary of the Interior to provide assistance 
        to schools funded by the Bureau of Indian Education. Funds 
        allocated under this paragraph shall be reserved by the 
        Secretary for distribution among the outlying areas and the 
        Secretary of the Interior on the basis of their relative need 
        for public elementary school and secondary school repair, 
        renovation, and construction, as determined by the Secretary.
            (2) State allotment.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), from the funds made available under subsection (i) 
                that remain after carrying out paragraph (1) for a 
                fiscal year, the Secretary shall allot to each State 
                educational agency serving a State an amount that bears 
                the same relation to such remainder as the amount the 
                State received under subpart 2 of part A of title I of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.) for the fiscal year preceding the 
                fiscal year for which the determination is made bears 
                to the amount all States received under such subpart 
                for such preceding fiscal year.
                    (B) State minimum.--No State receiving an allotment 
                under this paragraph shall receive less than one-half 
                of 1 percent of the total amount allotted under this 
                paragraph.
                    (C) Puerto rico.--The amount allotted under this 
                paragraph to the Commonwealth of Puerto Rico for a 
                fiscal year may not exceed one-half of 1 percent of the 
                total amount allotted under this paragraph.
    (b) Within-State Distributions.--
            (1) Administrative and other costs.--
                    (A) State educational agency administration and 
                other costs.--Except as provided in subparagraph (D), 
                each State educational agency may reserve not more than 
                1 percent of the State educational agency's allotment 
                under subsection (a) for the purposes of administering 
                the distribution of grants under this subsection and 
                awarding grants under subparagraph (C)(v).
                    (B) Required uses.--The State educational agency 
                shall use a portion of the funds reserved under 
                subparagraph (A)--
                            (i) to provide technical assistance to 
                        local educational agencies; and
                            (ii) to establish or support a State-level 
                        database of public school facility inventory, 
                        condition, design, and utilization, in 
                        accordance with section 304.
                    (C) Permissible uses.--The State educational agency 
                may use a portion of the funds reserved under 
                subparagraph (A) for--
                            (i) developing a statewide public school 
                        facility master plan;
                            (ii) developing policies, procedures, and 
                        standards for high-quality, energy efficient 
                        public school facilities;
                            (iii) supporting interagency collaboration 
                        that will lead to broad community use of public 
                        school facilities, and school-based services 
                        for students served by high-need local 
                        educational agencies or rural local educational 
                        agencies;
                            (iv) helping to defray the cost of issuing 
                        State bonds to finance public elementary school 
                        and secondary school repair, renovation, and 
                        construction; and
                            (v) awarding grants to State-operated or 
                        State-supported schools, such as a State school 
                        for the deaf or for the blind, to enable such 
                        schools to carry out school repair, renovation, 
                        and construction activities in accordance with 
                        subsection (c).
                    (D) State entity administration and other costs.--
                If the State educational agency transfers funds to a 
                State entity described in paragraph (2)(A), the State 
                educational agency shall transfer to such State entity 
                not less than 75 percent of the amount reserved under 
                subparagraph (A) for the purpose of carrying out the 
                activities described in subparagraph (C).
            (2) Distribution of competitive school repair, renovation, 
        and construction grants to local educational agencies.--
                    (A) In general.--Of the funds allotted to a State 
                educational agency under subsection (a) that are not 
                reserved under paragraph (1), the State educational 
                agency shall distribute 100 percent of such funds to 
                local educational agencies or, if the State educational 
                agency is not responsible for the financing of public 
                school facilities, the State educational agency shall 
                transfer such funds to the State entity responsible for 
                the financing of public school facilities (referred to 
                in this section as the ``State entity'') for 
                distribution by such State entity to local educational 
                agencies in accordance with this paragraph, to be used, 
                consistent with subsection (c), for public elementary 
                school or secondary school repair, renovation, and 
                construction.
                    (B) Competitive grants to local educational 
                agencies.--The State educational agency or State entity 
                shall carry out a program to award grants, on a 
                competitive basis, to local educational agencies for 
                public elementary school or secondary school repair, 
                renovation, and construction. Of the total amount 
                available for distribution to local educational 
                agencies under this paragraph, the State educational 
                agency or State entity, shall, in carrying out the 
                grant competition--
                            (i) award to high-need local educational 
                        agencies, in the aggregate, not less than an 
                        amount which bears the same relationship to 
                        such total amount as the aggregate amount such 
                        high-need local educational agencies received 
                        under part A of title I of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 6311 
                        et seq.) for the fiscal year preceding the 
                        fiscal year for which the determination is made 
                        bears to the aggregate amount received for such 
                        preceding fiscal year under such part by all 
                        local educational agencies in the State;
                            (ii) award to rural local educational 
                        agencies in the State, in the aggregate, not 
                        less than an amount which bears the same 
                        relationship to such total amount as the 
                        aggregate amount such rural local educational 
                        agencies received under part A of title I of 
                        the Elementary and Secondary Education Act of 
                        1965 (20 U.S.C. 6311 et seq.) for the fiscal 
                        year preceding the fiscal year for which the 
                        determination is made bears to the aggregate 
                        amount received for such preceding fiscal year 
                        under such part by all local educational 
                        agencies in the State; and
                            (iii) award the remaining funds to local 
                        educational agencies in the State that did not 
                        receive a grant award under clause (i) or (ii), 
                        including to high-need local educational 
                        agencies and rural local educational agencies 
                        that did not receive a grant award under clause 
                        (i) or (ii).
                    (C) Criteria for awarding grants.--In awarding 
                competitive grants under this paragraph, a State 
                educational agency or State entity shall take into 
                account the following criteria:
                            (i) Percentage of children from low-income 
                        families.--The percentage of children served by 
                        the local educational agency who are between 5 
                        to 17 years of age, inclusive, and who are from 
                        low-income families.
                            (ii) Need for school repair, renovation, 
                        and construction.--The need of a local 
                        educational agency for public school facility 
                        repair, renovation, and construction, as 
                        demonstrated by a facility condition index or 
                        the local educational agency's need for new 
                        public school facilities based on enrollment or 
                        anticipated enrollment.
                            (iii) Green schools.--The extent to which a 
                        local educational agency will make use, in the 
                        repair, renovation, or construction to be 
                        undertaken, of green practices that are 
                        certified, verified, or consistent with any 
                        applicable provisions of--
                                    (I) the LEED Green Building Rating 
                                System;
                                    (II) Energy Star;
                                    (III) the CHPS Criteria;
                                    (IV) the ASHRAE Energy Standard for 
                                Buildings; or
                                    (V) an equivalent program adopted 
                                by the State or another jurisdiction 
                                with authority over the local 
                                educational agency.
                            (iv) Fiscal capacity.--The fiscal capacity 
                        of a local educational agency to meet the needs 
                        of the local educational agency for repair, 
                        renovation, and construction of public school 
                        facilities without assistance under this 
                        section, including the ability of the local 
                        educational agency to raise funds through the 
                        use of local bonding capacity and otherwise.
                            (v) Assurance of maintaining the 
                        facility.--The ability of a local educational 
                        agency to provide an assurance that the local 
                        educational agency will maintain, in good 
                        condition, any public school facility whose 
                        repair, renovation, or construction is assisted 
                        under this section.
                            (vi) Charter school equitable access to 
                        funding.--In the case of a local educational 
                        agency that proposes to fund a repair, 
                        renovation, or construction project for a 
                        public charter school, the extent to which--
                                    (I) the public charter school lacks 
                                access to funding for school repair, 
                                renovation, and construction through 
                                the financing methods available to 
                                other public schools or local 
                                educational agencies in the State; and
                                    (II) the charter school operator 
                                owns or has care and control of the 
                                facility that is to be repaired, 
                                renovated, or constructed.
                    (D) Matching requirement.--
                            (i) In general.--A State educational agency 
                        or State entity shall require local educational 
                        agencies to match funds awarded under this 
                        paragraph.
                            (ii) Match amount.--A State educational 
                        agency may establish a sliding scale for 
                        determining the match described in clause (i), 
                        taking into account the relative poverty of the 
                        population served by the local educational 
                        agency.
    (c) Rules Applicable to School Repair, Renovation, and 
Construction.--With respect to funds made available under this section 
that are used for school repair, renovation, and construction, the 
following rules shall apply:
            (1) Permissible uses of funds.--School repair, renovation, 
        and construction shall be limited to one or more of the 
        following:
                    (A) Upgrades, repair, construction, or replacement 
                of public elementary schools or secondary schools, or 
                their building systems or components, in order to 
                improve the quality of education and ensure the health 
                and safety of students and staff, including--
                            (i) repairing, replacing, or constructing 
                        early learning facilities at public elementary 
                        schools (including renovation of existing 
                        facilities to serve children under 5 years of 
                        age);
                            (ii) repairing, replacing, or constructing 
                        school library facilities;
                            (iii) modernizing or upgrading school 
                        classroom facilities, including laboratories;
                            (iv) repairing, replacing, or installing 
                        roofs, windows, doors, electrical wiring, 
                        plumbing systems, or sewage systems;
                            (v) installing classroom furniture or 
                        fixtures with at least a 10-year life cycle;
                            (vi) repairing, replacing, or installing 
                        heating, ventilation, or air conditioning 
                        systems (including insulation); and
                            (vii) bringing such public schools into 
                        compliance with fire and safety codes.
                    (B) Public school facility modifications necessary 
                to render public school facilities accessible in order 
                to comply with the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.) and section 504 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 794).
                    (C) Improvements to the environmental conditions of 
                public elementary school or secondary school sites, 
                including--
                            (i) asbestos abatement or removal;
                            (ii) the reduction or elimination of human 
                        exposure to lead-based paint, lead-contaminated 
                        drinking water, mercury, radon, polychlorinated 
                        biphenyls, or other toxic substances;
                            (iii) the reduction or elimination of mold, 
                        mildew, pests, and rodents; and
                            (iv) air quality improvement.
                    (D) Measures designed to reduce or eliminate human 
                exposure to classroom noise and environmental noise 
                pollution.
                    (E) Modifications necessary to reduce the 
                consumption of electricity, natural gas, oil, water, 
                coal, or land.
                    (F) Upgrades or installations of educational 
                technology infrastructure to ensure that students have 
                access to up-to-date educational technology.
                    (G) Measures that will broaden or improve the use 
                of public elementary school or secondary school 
                buildings and grounds by the community in order to 
                improve educational outcomes.
            (2) Impermissible uses of funds.--No funds received under 
        this section may be used for--
                    (A) payment of maintenance costs in connection with 
                any projects constructed in whole or part with Federal 
                funds provided under this section;
                    (B) purchase or upgrade of vehicles;
                    (C) improvement or construction of any stand-alone 
                facility whose purpose is not the education of 
                children, including central office administration or 
                operations or logistical support facilities;
                    (D) purchase of information technology hardware, 
                including computers, monitors, printers, or other 
                devices; or
                    (E) stadiums or other facilities primarily used for 
                athletic contests or exhibitions or other events for 
                which admission is charged to the general public.
            (3) Supplement, not supplant.--A local educational agency 
        or State-operated or State-supported school shall use Federal 
        funds subject to this subsection only to supplement the amount 
        of funds that would, in the absence of such Federal funds, be 
        made available from non-Federal sources for school repair, 
        renovation, and construction.
    (d) Qualified Bidders; Competition.--Each local educational agency 
that receives funds under subsection (b)(2) shall ensure that, if the 
local educational agency carries out repair, renovation, or 
construction through a contract, any such contract process ensures the 
maximum number of qualified bidders, including small, minority, and 
women-owned businesses, through full and open competition.
    (e) Public Comment.--Each local educational agency receiving funds 
under subsection (b)(2) shall--
            (1) provide an opportunity for public comment, and ensure 
        that parents, educators, and all other interested members of 
        the community in which the school to be assisted is located, 
        have the opportunity to consult on the use of the funds 
        received under such subsection;
            (2) provide the public with adequate and efficient notice 
        of the opportunity described in paragraph (1) in a widely read 
        and distributed medium; and
            (3) provide the opportunity described in paragraph (1) in 
        accordance with any applicable State and local law specifying 
        how the comments may be received and how the comments may be 
        reviewed by any member of the public.
    (f) Reporting.--
            (1) Local reporting.--Each local educational agency that 
        receives funds under subsection (b)(2) for a fiscal year shall, 
        for each fiscal year--
                    (A) compile the information described in subsection 
                (g)(2)(B) with respect to the local educational agency 
                for the preceding fiscal year;
                    (B) make the compiled information available to the 
                public, including by posting the information on a 
                publicly accessible website of the local educational 
                agency; and
                    (C) prepare and submit to the State educational 
                agency an annual report that includes--
                            (i) the compiled information described in 
                        subparagraph (A);
                            (ii) a description of how the local 
                        educational agency used funds received under 
                        subsection (b)(2) for public elementary school 
                        and secondary school repair, renovation, and 
                        construction; and
                            (iii) any other information the State 
                        educational agency may require.
            (2) State reporting.--Each State educational agency that 
        receives a grant under subsection (a) for a fiscal year shall, 
        for each such fiscal year--
                    (A) compile the information received from the 
                reports described in paragraph (1)(C), and the 
                information described in subsection (g)(2)(B) with 
                respect to any State-operated or State-sponsored school 
                receiving funds under subsection (b)(1)(C)(v), for the 
                preceding fiscal year;
                    (B) make the compiled information available to the 
                public, including by posting the information on a 
                publicly accessible website of the State educational 
                agency;
                    (C) regularly distribute the compiled information 
                to local educational agencies and tribal governments in 
                the State; and
                    (D) prepare and submit to the Secretary an annual 
                report that includes--
                            (i) the compiled information described in 
                        subparagraph (A); and
                            (ii) a description of how funds received 
                        under this section were made available and used 
                        for public elementary school and secondary 
                        school repair, renovation, and construction.
    (g) Annual Report on Grant Program.--
            (1) In general.--Not later than September 30 of each fiscal 
        year beginning after the date of the enactment of this Act, the 
        Secretary shall submit to the Committee on Health, Education, 
        Labor, and Pensions of the Senate and the Committee on 
        Education and the Workforce of the House of Representatives a 
        report on the projects carried out with funds made available 
        under this section.
            (2) Elements.--The report under paragraph (1) shall 
        include, with respect to the fiscal year preceding the year in 
        which the report is submitted, the following:
                    (A) An identification of each local educational 
                agency that received funds under subsection (b)(2).
                    (B) With respect to each such agency, a description 
                of--
                            (i) the demographic composition of the 
                        student population served by the agency, 
                        disaggregated, by number and percentage, by--
                                    (I) race;
                                    (II) status as a student counted 
                                under section 1124(c) of the Elementary 
                                and Secondary Education Act of 1965 (20 
                                U.S.C. 6333(c)); and
                                    (III) eligibility for a free or 
                                reduced price lunch under the Richard 
                                B. Russell National School Lunch Act 
                                (42 U.S.C. 1751 et seq.);
                            (ii) the population density of the 
                        geographic area served by the agency;
                            (iii) the projects for which the agency 
                        used the grant received under this section;
                            (iv) the demonstrable or expected benefits 
                        of the projects; and
                            (v) the estimated number of jobs created by 
                        the projects.
                    (C) The total dollar amount of all grants received 
                by local educational agencies under this section.
    (h) Reallocation.--If a State educational agency does not apply for 
an allocation of funds under subsection (a) for a fiscal year, or does 
not use the State educational agency's entire allocation for such 
fiscal year, then the Secretary may reallocate the amount of the State 
educational agency's allocation (or the remainder thereof, as the case 
may be) for such fiscal year to the remaining State educational 
agencies in accordance with such subsection.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $7,000,000,000 for each of 
fiscal years 2018 through 2027.

                 TITLE II--SCHOOL INFRASTRUCTURE BONDS

SEC. 201. SCHOOL INFRASTRUCTURE BONDS.

    (a) In General.--Subpart J of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding after section 
54AA the following new section:

``SEC. 54BB. SCHOOL INFRASTRUCTURE BONDS.

    ``(a) In General.--If a taxpayer holds a school infrastructure bond 
on one or more interest payment dates of the bond during any taxable 
year, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum of the 
credits determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit determined under 
this subsection with respect to any interest payment date for a school 
infrastructure bond is 100 percent of the amount of interest payable by 
the issuer with respect to such date.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) School Infrastructure Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `school infrastructure bond' means any bond issued as part of 
        an issue if--
                    ``(A) 100 percent of the available project proceeds 
                of such issue are to be used for the purposes described 
                in section 101(c)(1) of the School Building Improvement 
                Act of 2017,
                    ``(B) the interest on such obligation would (but 
                for this section) be excludable from gross income under 
                section 103,
                    ``(C) the issue meets the requirements of paragraph 
                (3), and
                    ``(D) the issuer designates such bond for purposes 
                of this section.
            ``(2) Applicable rules.--For purposes of applying paragraph 
        (1)--
                    ``(A) for purposes of section 149(b), a school 
                infrastructure bond shall not be treated as federally 
                guaranteed by reason of the credit allowed under 
                subsection (a) or section 6431,
                    ``(B) for purposes of section 148, the yield on a 
                school infrastructure bond shall be determined without 
                regard to the credit allowed under subsection (a), and
                    ``(C) a bond shall not be treated as a school 
                infrastructure bond if the issue price has more than a 
                de minimis amount (determined under rules similar to 
                the rules of section 1273(a)(3)) of premium over the 
                stated principal amount of the bond.
            ``(3) 6-year expenditure period.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects 100 
                percent of the available project proceeds to be spent 
                for purposes described in section 101(c)(1) of the 
                School Building Improvement Act of 2017 within the 6-
                year period beginning on such date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 6 years.--To the extent that less than 
                100 percent of the available project proceeds of the 
                issue are expended at the close of the period described 
                in subparagraph (A) with respect to such issue, the 
                issuer shall redeem all of the nonqualified bonds 
                within 90 days after the end of such period. For 
                purposes of this paragraph, the amount of the 
                nonqualified bonds required to be redeemed shall be 
                determined in the same manner as under section 142.
    ``(e) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds issued during any calendar year which 
may be designated under subsection (d) by any issuer shall not exceed 
the limitation amount allocated under subsection (g) for such calendar 
year to such issuer.
    ``(f) National Limitation on Amount of Bonds Designated.--The 
national qualified school construction bond limitation for each 
calendar year is--
            ``(1) $10,000,000,000 for 2018,
            ``(2) $10,000,000,000 for 2019, and
            ``(3) $10,000,000,000 for 2020.
    ``(g) Allocation of Limitation.--
            ``(1) Allocation among states.--Except as otherwise 
        provided in this subsection, the limitation applicable under 
        subsection (f) for any calendar year shall be allocated by the 
        Secretary among the States in proportion to the respective 
        amounts received by each State under part A of title I of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 
        et seq.) for the fiscal year ending in the preceding calendar 
        year relative to the total such amount received by all States 
        for such fiscal year. The limitation amount allocated to a 
        State under the preceding sentence shall be allocated by the 
        State education agency (or such other agency as is authorized 
        under State law to make such allocation) to issuers within such 
        State in accordance with the criteria described in 
        subparagraphs (B) and (C) of section 101(b)(2) of the School 
        Building Improvement Act of 2017 (as in effect on the date of 
        the enactment of this section).
            ``(2) State minimum.--No State receiving an allocation 
        under paragraph (1) for a calendar year shall receive less than 
        \1/2\ of 1 percent of the total amount so allocated for such 
        calendar year.
            ``(3) Puerto rico.--The amount allocated under paragraph 
        (1) to the Commonwealth of Puerto Rico for any calendar year 
        shall not exceed \1/2\ of 1 percent of the total amount so 
        allocated for such calendar year.
            ``(4) Allocations to certain possessions.--From the 
        limitation under subsection (f) for any calendar year, the 
        Secretary shall reserve \1/2\ of 1 percent to be allocated to 
        possessions of the United States other than Puerto Rico for 
        such calendar year, and no allocation shall be made to such 
        possessions under paragraph (1). The amount to be allocated 
        under paragraphs (1), (2), and (3) shall be reduced by the 
        aggregate amount allocated under this paragraph and paragraph 
        (5).
            ``(5) Allocations for indian schools.--From the limitation 
        under subsection (f) for any calendar year, the Secretary shall 
        reserve \1/2\ of 1 percent to be allocated to the Secretary of 
        the Interior for schools funded by the Bureau of Indian 
        Education for such calendar year, and no allocation shall be 
        made with respect to such schools under paragraph (1).
    ``(h) Interest Payment Date.--For purposes of this section, the 
term `interest payment date' means any date on which the holder of 
record of the school infrastructure bond is entitled to a payment of 
interest under such bond.
    ``(i) Special Rules.--
            ``(1) Interest on school infrastructure bonds includible in 
        gross income for federal income tax purposes.--For purposes of 
        this title, interest on any school infrastructure bond shall be 
        includible in gross income.
            ``(2) Application of certain rules.--Rules similar to the 
        rules of subsections (f), (g), (h), and (i) of section 54A 
        shall apply for purposes of the credit allowed under subsection 
        (a).
            ``(3) Application of certain labor standards.--
        Notwithstanding any other provision of law, a school 
        infrastructure bond shall be treated as a qualified school 
        construction bond for purposes of the application of section 
        1601 of the American Recovery and Reinvestment Act of 2009 
        (Public Law 111-5; 26 U.S.C. 54C note.).''.
    (b) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        amending the item related to subpart J to read as follows:

              ``subpart j--certain infrastructure bonds''.

            (2) The table of sections for subpart J of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 54BB. School infrastructure bonds.''.
    (c) Transitional Coordination With State Law.--Except as otherwise 
provided by a State after the date of the enactment of this Act, the 
interest on any school infrastructure bond (as defined in section 54BB 
of the Internal Revenue Code of 1986, as added by this section) and the 
amount of any credit determined under such section with respect to such 
bond shall be treated for purposes of the income tax laws of such State 
as being exempt from Federal income tax.
    (d) Credit for Qualified Bonds Allowed to Issuer.--Paragraph (3) of 
section 6431(f) of the Internal Revenue Code of 1986 is amended by 
inserting ``any school infrastructure bond (as defined in section 54BB) 
or'' before ``any qualified tax credit bond''.
    (e) Sequestration.--Subparagraph (A) of section 255(g)(1) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding before ``Postal Service Fund'' the following: ``Payments under 
section 54BB of the Internal Revenue Code of 1986.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2017.

SEC. 202. EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Construction of a Public School Facility.--Subparagraph (A) of 
section 54E(d)(3) of the Internal Revenue Code of 1986 is amended by 
striking ``rehabilitating or repairing'' and inserting ``constructing, 
rehabilitating, retrofitting, or repairing''.
    (b) Removal of Private Business Contribution Requirement.--Section 
54E of the Internal Revenue Code of 1986 is amended--
            (1) in subsection (a)(3)--
                    (A) in subparagraph (A), by inserting ``and'' at 
                the end;
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (2) by striking subsection (b) and redesignating 
        subsections (c) and (d) as subsections (b) and (c), 
        respectively; and
            (3) in paragraph (1) of subsection (b) (as so 
        redesignated)--
                    (A) by striking ``and $400,000,0000'' and inserting 
                ``$400,000,000''; and
                    (B) by striking ``and, except as provided'' and all 
                that follows through the period at the end and 
                inserting ``, and $1,400,000,000 for 2018 and each year 
                thereafter.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2017.

SEC. 203. ANNUAL REPORT ON BOND PROGRAM.

    (a) In General.--Not later than September 30 of each fiscal year 
beginning after the date of the enactment of this Act, the Secretary 
shall prepare and submit to the Committee on Health, Education, Labor, 
and Pensions of the Senate and the Committee on Education and the 
Workforce of the House of Representatives a report on the school 
infrastructure bond program.
    (b) Elements.--The report under subsection (a) shall include, with 
respect to the fiscal year preceding the year in which the report is 
submitted, the following:
            (1) An identification of--
                    (A) each local educational agency that received 
                funds from a school infrastructure bond; and
                    (B) each local educational agency that was eligible 
                to receive such funds--
                            (i) but did not receive such funds; or
                            (ii) received less than the maximum amount 
                        of funds for which the agency was eligible.
            (2) With respect to each local educational agency described 
        in paragraph (1)--
                    (A) an assessment of the capacity of the agency to 
                raise funds for the long-term improvement of public 
                school facilities, as determined by an assessment of--
                            (i) the current and historic ability of the 
                        agency to raise funds for construction, 
                        renovation, modernization, and major repair 
                        projects for schools, including the ability of 
                        the agency to raise funds through imposition of 
                        property taxes;
                            (ii) whether the agency has been able to 
                        issue bonds to fund construction projects, 
                        including such bonds as--
                                    (I) qualified school construction 
                                bonds under section 54F of the Internal 
                                Revenue Code of 1986;
                                    (II) qualified zone academy bonds 
                                under section 1397E of the Internal 
                                Revenue Code of 1986; and
                                    (III) school infrastructure bonds; 
                                and
                            (iii) the bond rating of the agency;
                    (B) the demographic composition of the student 
                population served by the agency, disaggregated, by 
                number and percentage, by--
                            (i) race;
                            (ii) status as a student counted under 
                        section 1124(c) of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6333(c)); and
                            (iii) eligibility for a free or reduced 
                        price lunch under the Richard B. Russell 
                        National School Lunch Act (42 U.S.C. 1751 et 
                        seq.);
                    (C) the population density of the geographic area 
                served by the agency;
                    (D) a description of the projects carried out with 
                funds received from school infrastructure bonds;
                    (E) a description of the demonstrable or expected 
                benefits of the projects; and
                    (F) the estimated number of jobs created by the 
                projects.
            (3) The total dollar amount of all funds received by local 
        educational agencies from school infrastructure bonds.
            (4) Any other factors that the Secretary determines to be 
        appropriate.
    (c) Information Collection.--A State or local educational agency 
that receives funds from a school infrastructure bond shall--
            (1) annually compile the information necessary for the 
        Secretary to determine the elements described in subsection 
        (b); and
            (2) report the information to the Secretary at such time 
        and in such manner as the Secretary may require.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. USE OF AMERICAN IRON, STEEL, AND MANUFACTURED PRODUCTS.

    (a) In General.--A local educational agency that receives covered 
funds shall ensure that any iron, steel, and manufactured products used 
in projects carried out with such funds are produced in the United 
States.
    (b) Waiver Authority.--
            (1) In general.--The Secretary may waive the requirement of 
        subsection (a) if the Secretary determines that--
                    (A) applying subsection (a) would be inconsistent 
                with the public interest;
                    (B) iron, steel, and manufactured products produced 
                in the United States are not produced in a sufficient 
                and reasonably available amount or are not of a 
                satisfactory quality; or
                    (C) using iron, steel, and manufactured products 
                produced in the United States will increase the cost of 
                the overall project by more than 25 percent.
            (2) Publication.--Before issuing a waiver under paragraph 
        (1), the Secretary shall publish in the Federal Register a 
        detailed written explanation of the waiver determination.
    (c) Consistency With International Agreements.--This section shall 
be applied in a manner consistent with the obligations of the United 
States under international agreements.
    (d) Definitions.--In this section:
            (1) Produced in the united states.--
                    (A) In general.--The term ``produced in the United 
                States'' means the following:
                            (i) When used with respect to a 
                        manufactured product, the product was 
                        manufactured in the United States and the cost 
                        of the components of such product that were 
                        mined, produced, or manufactured in the United 
                        States exceeds 60 percent of the total cost of 
                        all components of the product.
                            (ii) When used with respect to iron or 
                        steel products, or an individual component of a 
                        manufactured product, all manufacturing 
                        processes for such iron or steel products or 
                        components, from the initial melting stage 
                        through the application of coatings, occurred 
                        in the United States.
                    (B) Exclusions.--The term ``produced in the United 
                States'' does not include the following:
                            (i) Steel or iron material or products 
                        manufactured abroad from semi-finished steel or 
                        iron from the United States.
                            (ii) Iron material or products manufactured 
                        in the United States from semi-finished steel 
                        or iron of foreign origin.
            (2) Manufactured product.--The term ``manufactured 
        product'' means any construction material or end product (as 
        such terms are defined in part 25.003 of the Federal 
        Acquisition Regulation) that is not an iron or steel product, 
        including--
                    (A) electrical components; and
                    (B) nonferrous building materials, including 
                aluminum and polyvinylchloride (PVC), glass, fiber 
                optics, plastic, wood, masonry, rubber, manufactured 
                stone, any other nonferrous metal, and any 
                unmanufactured construction material.

SEC. 302. COMPTROLLER GENERAL REPORT.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall prepare and submit to the Committee on Health, Education, Labor, 
and Pensions of the Senate and the Committee on Education and the 
Workforce of the House of Representatives a report on the projects 
carried out with covered funds.
    (b) Elements.--The report under subsection (a) shall include an 
assessment of--
            (1) the types of projects carried out with covered funds;
            (2) the geographic distribution of the projects;
            (3) an assessment of the impact of the projects on the 
        health and safety of school staff and students; and
            (4) how the Secretary or States could make covered funds 
        more accessible--
                    (A) to public elementary or secondary schools with 
                the highest numbers and percentages of students counted 
                under section 1124(c) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6333(c)); and
                    (B) to public elementary or secondary schools with 
                fiscal challenges in raising capital for school 
                infrastructure projects.
    (c) Updates.--The Comptroller General shall update and resubmit the 
report to the Committee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and the Workforce of the 
House of Representatives--
            (1) on a date that is between 5 and 6 years after the date 
        of enactment of this Act; and
            (2) on a date that is between 10 and 11 years after such 
        date of enactment.

SEC. 303. STUDIES AND REPORTS ON THE PHYSICAL CONDITION OF PUBLIC 
              SCHOOLS.

    (a) Studies and Reports.--Not less frequently than once in each 5-
year period beginning after the date of enactment of this Act, the 
Secretary, acting through the Director of the Institute of Education 
Sciences, shall--
            (1) carry out a comprehensive study of the physical 
        conditions of public elementary schools and secondary schools 
        in the United States, including such schools that received 
        covered funds and such schools that did not receive covered 
        funds; and
            (2) prepare and submit a report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and the Workforce of the House of Representatives 
        that includes the results of the study.
    (b) Elements.--Each study and report under subsection (a) shall 
include an assessment of--
            (1) the effect of public school facility conditions on 
        student and staff health and safety;
            (2) the effect of public school facility conditions on 
        student academic outcomes;
            (3) the condition of public school facilities, set forth 
        separately by geographic region;
            (4) the condition of public school facilities for 
        economically disadvantaged students as well as students from 
        major racial and ethnic subgroups; and
            (5) the accessibility of public school facilities for 
        students, and staff, with disabilities.

SEC. 304. DEVELOPMENT OF DATA STANDARDS.

    (a) Data Standards.--Not later than 120 days after the date of 
enactment of this Act, the Secretary, in consultation with the 
officials described in subsection (b), shall--
            (1) identify the data that States should collect and 
        include in the databases developed under section 
        101(b)(1)(B)(ii);
            (2) develop standards for the measurement of such data; and
            (3) issue guidance to States concerning the collection and 
        measurement of such data.
    (b) Officials.--The officials described in this subsection are--
            (1) the Administrator of the Environmental Protection 
        Agency;
            (2) the Secretary of Energy;
            (3) the Director of the Centers for Disease Control and 
        Prevention; and
            (4) the Director of the National Institute for Occupational 
        Safety and Health.

SEC. 305. INFORMATION CLEARINGHOUSE.

    (a) In General.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall establish a clearinghouse to 
disseminate information on Federal programs and financing mechanisms 
that may be used to assist public elementary schools and secondary 
schools in initiating, developing, and financing--
            (1) energy efficiency projects;
            (2) distributed generation projects; and
            (3) energy retrofitting projects.
    (b) Elements.--In carrying out subsection (a), the Secretary 
shall--
            (1) consult with the officials described in section 304(b) 
        to develop a list of Federal programs and financing mechanisms 
        to be included in the clearinghouse; and
            (2) coordinate with such officials to develop a 
        collaborative education and outreach effort to streamline 
        communications and promote the Federal programs and financing 
        mechanisms included in the clearinghouse, which may include the 
        development and maintenance of a single online resource that 
        includes contact information for relevant technical assistance 
        that may be used by States, local educational agencies, and 
        schools to effectively access and use such Federal programs and 
        financing mechanisms.

                   TITLE IV--IMPACT AID CONSTRUCTION

SEC. 401. TEMPORARY INCREASE IN FUNDING FOR IMPACT AID CONSTRUCTION.

    Section 7014(d) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7714(d)) is amended to read as follows:
    ``(d) Construction.--For the purpose of carrying out section 7007, 
there are authorized to be appropriated--
            ``(1) $17,406,000 for fiscal year 2017;
            ``(2) $50,406,000 for each of fiscal years 2018 and 2019; 
        and
            ``(3) $52,756,765 for fiscal year 2020.''.
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