II 

110TH CONGRESS 

1ST SESSION S. 1542 

To establish State infrastructure banks for education, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 5, 2007 

Mrs. CLINTON introduced the following bill; which was read twice and referred 

to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To establish State infrastructure banks for education, 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. 

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

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) According to the School Management and 

9 Planning magazine, up to $150,000,000,000 in re10 pairs, renovations, and modernizations is needed to 


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1 put schools in the United States into good overall 

2 condition. 

3 (2) Approximately 14,000,000 United States 

4 students attend schools that report the need for ex5 tensive repair or replacement of 1 or more buildings. 

6 (3) According to a recent study conducted by 

7 American School & University magazine, 

8 $29,088,000,000 was spent to address the Nation’s 

9 education infrastructure needs, with the average 

10 total cost of a new high school being $27,000,000. 

11 (4) Academic research has proven that there is 

12 a direct correlation between the condition of school 

13 facilities and student achievement. At Georgetown 

14 University, researchers have found that students as15 signed to schools in poor condition could be expected 

16 to have test scores that are 10.9 percentage points 

17 lower than students in schools in excellent condition. 

18 Similar studies demonstrated improvement of up to 

19 20 percent in test scores when students were moved 

20 from a facility in poor condition to a new facility. 

21 (5) Large numbers of local educational agencies 

22 have difficulties securing financing for school facility 

23 improvement. 

24 (6) The challenges facing the Nation’s public el25 ementary schools and secondary schools and libraries 


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1 require the concerted efforts of all levels of govern2 ment and all sectors of communities. 

3 (7) The United States competitive position 

4 within the world economy is vulnerable if the future 

5 workforce of the United States continues to be edu6 cated in schools and libraries not equipped for the 

7 21st century. 

8 (8) The deplorable state of collections in public 

9 school libraries in the United States has increased 

10 the demands on public libraries. In many instances, 

11 public libraries substitute for school libraries, cre12 ating a higher demand for material and physical 

13 space to house literature and educational computer 

14 equipment. 

15 (9) Research shows that 50 percent of a child’s 

16 intellectual development takes place before age 4. 

17 The Nation’s public and school libraries play a crit18 ical role in a child’s early development because the 

19 libraries provide a wealth of books and other re20 sources that can give every child a head start on life 

21 and learning. 

22 SEC. 3. STATE INFRASTRUCTURE BANK PILOT PROGRAM. 

23 (a) ESTABLISHMENT.— 

24 (1) COOPERATIVE AGREEMENTS.—The Sec25 retary of Education (referred to in this Act as the 


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1 ‘‘Secretary’’), after consultation with the Secretary 

2 of the Treasury, may enter into cooperative agree3 ments with States under which— 

4 (A) the States establish State infrastruc5 ture banks and multistate infrastructure banks 

6 for the purpose of providing the loans described 

7 in subparagraph (B); and 

8 (B) the Secretary awards grants to States 

9 to be used as initial capital for the purpose of 

10 making loans through the infrastructure 

11 banks— 

12 (i) to local educational agencies to en13 able the agencies to construct, reconstruct, 

14 or renovate elementary schools or sec15 ondary schools that provide free public 

16 education; and 

17 (ii) to public libraries to enable the li18 braries to construct, reconstruct, or ren19 ovate library facilities. 

20 (2) INTERSTATE COMPACTS.— 

21 (A) CONSENT.—Congress grants consent 

22 to any 2 or more States, entering into a cooper23 ative agreement under paragraph (1) with the 

24 Secretary for the establishment of a multistate 

25 infrastructure bank, to enter into an interstate 


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1 compact establishing a multistate infrastructure 

2 bank in accordance with this section. 

3 (B) RESERVATION OF RIGHTS.—Congress 

4 expressly reserves the right to alter, amend, or 

5 repeal this section and any consent granted 

6 pursuant to this section. 

7 (b) REPAYMENTS.—Each infrastructure bank estab8 lished under subsection (a) shall apply repayments of prin9 cipal and interest on loans funded by the grant received 

10 under subsection (a) to the making of additional loans. 

11 (c) INFRASTRUCTURE BANK REQUIREMENTS.—A 

12 State establishing an infrastructure bank under this sec13 tion shall— 

14 (1) contribute to the bank, from non-Federal 

15 sources, an amount equal to not less than 25 per16 cent of the amount of each grant made for the bank 

17 under subsection (a); 

18 (2) identify as recipient of the grant an oper19 ating entity of the State that has the capacity to 

20 manage loan funds, and issue debt instruments of 

21 the State for purposes of leveraging the funds made 

22 available through the grant or State contributions 

23 under paragraph (1) related to the grant; 

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

25 debt issued by the State, so long as proceeds are deVerDate Aug 31 2005 02:17 Jun 06, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1542.IS S1542

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1 posited in the appropriate accounts for loan pur2 poses; 

3 (4) ensure that investment income generated by 

4 funds described in paragraph (2) and made available 

5 to an account of the bank will be— 

6 (A) credited to the account; 

7 (B) available for use in providing loans for 

8 a project eligible for assistance from the ac9 count; and 

10 (C) invested in United States Treasury se11 curities, bank deposits, or such other financing 

12 instruments as the Secretary may approve to 

13 earn interest to enhance the leveraging of funds 

14 for projects assisted by the bank; 

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

16 bear interest at or below the lowest interest rate 

17 being offered for bonds; 

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

19 bank will commence not later than 1 year after the 

20 project has been completed; 

21 (7) ensure that the term for repaying any such 

22 loan will not exceed 30 years after the date of the 

23 first payment on the loan under paragraph (6); and 


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

2 to the Secretary on its status, and make such other 

3 reports as the Secretary may require by guidelines. 

4 (d) FORMS OF ASSISTANCE FROM INFRASTRUCTURE

5 BANKS.— 

6 (1) IN GENERAL.—An infrastructure bank es7 tablished under this section may make a loan to a 

8 local educational agency or a public library in an 

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

10 out a project eligible for a loan under subsection (e). 

11 (2) APPLICATIONS FOR LOANS.— 

12 (A) IN GENERAL.—A local educational 

13 agency or public library desiring a loan under 

14 this section shall submit to such an infrastruc15 ture bank an application that includes— 

16 (i) in the case of an application for a 

17 renovation project for a facility— 

18 (I) a description of each architec19 tural, civil, structural, mechanical, or 

20 electrical deficiency to be corrected 

21 with the loan funds and the priorities 

22 to be applied in determining which de23 ficiency to address first; and 

24 (II) a description of the criteria 

25 used by the applicant to determine the 


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1 type of corrective action necessary for 

2 the renovation of the facility; 

3 (ii) a description of any improvements 

4 to be made and a cost estimate for the im5 provements to be made with the loan; 

6 (iii) a description of how work under7 taken with the loan will promote energy 

8 conservation; and 

9 (iv) such other information as the in10 frastructure bank may require. 

11 (B) TIMING.—An infrastructure bank shall 

12 take final action on a completed application 

13 submitted to it in accordance with this sub14 section not later than 90 days after the date of 

15 the submission of the application. 

16 (3) CRITERIA FOR LOANS.—In considering an 

17 application for a loan under this section, an infra18 structure bank shall consider— 

19 (A) the extent to which the local edu20 cational agency or public library desiring the 

21 loan would otherwise lack the fiscal capacity, 

22 including the ability to raise funds through the 

23 full use of bonding capacity of the agency or li24 brary, to undertake the project proposed in the 

25 application; 


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1 (B) in the case of a local educational agen2 cy, the threat that the condition of the physical 

3 plant in the proposed project poses to the safety 

4 and well-being of students; 

5 (C) the demonstrated need for the con6 struction, reconstruction, or renovation de7 scribed in the application, based on the condi8 tion of the facility in the proposed project; and 

9 (D) the age of the facility proposed to be 

10 replaced, reconstructed, or renovated. 

11 (e) ELIGIBLE PROJECTS.— 

12 (1) IN GENERAL.—A project shall be eligible for 

13 a loan from an infrastructure bank under this sec14 tion if the project consists of— 

15 (A) the construction of an elementary 

16 school or secondary school to meet the needs 

17 imposed by enrollment growth; 

18 (B) the repair or upgrading of classrooms 

19 or structures related to academic learning at an 

20 educational facility, including the repair of leak21 ing roofs, crumbling walls, inadequate plumb22 ing, poor ventilation equipment, or inadequate 

23 heating or lighting equipment; 

24 (C) an activity to increase physical safety 

25 at an educational facility; 


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1 (D) an activity to enhance an educational 

2 facility to provide access for students, teachers, 

3 and other individuals (such as staff and par4 ents) who are individuals with disabilities; 

5 (E) an activity to address environmental 

6 hazards at an educational facility, such as poor 

7 ventilation, indoor air quality, or lighting; 

8 (F) the provision of basic infrastructure 

9 that facilitates educational technology, such as 

10 communications outlets, electrical systems, 

11 power outlets, or a communication closet, at an 

12 educational facility; 

13 (G) work that will bring an educational fa14 cility into conformity with the requirements 

15 of— 

16 (i) environmental protection or health 

17 and safety programs mandated by Federal, 

18 State, or local law, if such requirements 

19 were not in effect when the facility was ini20 tially constructed; and 

21 (ii) hazardous waste treatment, stor22 age, and disposal requirements mandated 

23 under the Solid Waste Disposal Act (42 

24 U.S.C. 6901 et seq.) or similar State laws; 


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1 (H) work that will enable efficient use of 

2 available energy resources at an educational fa3 cility; 

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

5 contain asbestos hazards in an educational fa6 cility; or 

7 (J) work to construct public library facili8 ties or repair or upgrade public library facili9 ties. 

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

11 subchapter IV of chapter 31 of title 40, United 

12 States Code shall apply with respect to individuals 

13 employed on the projects described in paragraph (1). 

14 (3) HEALTHY HIGH PERFORMANCE SCHOOLS.— 

15 (A) ESTABLISHMENT OF GUIDELINES.— 

16 After consultation with States and consider17 ation of leading green building standards, the 

18 Secretary, in consultation with the Secretary of 

19 Energy and the Administrator of the Environ20 mental Protection Agency, shall establish 

21 Healthy, High Performance School Guidelines, 

22 which shall provide guidance for the construc23 tion and renovation of schools, educational fa24 cilities, and libraries relating to energy effi25 ciency, renewable energy, water use, building 


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1 materials, indoor environmental quality, and 

2 such other matters as the Secretary considers 

3 to be appropriate. 

4 (B) APPLICABILITY OF GUIDELINES.—A 

5 local educational agency or public library using 

6 a loan under this section to fund a new con7 struction or renovation project described in 

8 paragraph (1) shall ensure that the project con9 forms, to the maximum extent practicable, to 

10 the Healthy, High Performance School Guide11 lines described in subparagraph (A). 

12 (f) SUPPLEMENTATION.—Any loan made by an infra13 structure bank shall be used to supplement and not sup14 plant other Federal, State, and local funds available to 

15 carry out school or library construction, reconstruction, or 

16 renovation (including repair). 

17 (g) LIMITATION ON REPAYMENTS.—Notwithstanding 

18 any other provision of law, if an infrastructure bank 

19 makes a loan under this section with funds made available 

20 through a grant awarded to a State under subsection (a), 

21 the funds used to repay the loan may not be credited to22 ward the contribution required for the State under sub23 section (c)(1) for a subsequent grant awarded under sub24 section (c). 


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1 (h) SECRETARIAL REQUIREMENTS.—In admin2 istering this section, the Secretary shall specify procedures 

3 and guidelines for establishing, operating, and providing 

4 assistance from an infrastructure bank. 

5 (i) UNITED STATES NOT OBLIGATED.—The con6 tribution of Federal funds to an infrastructure bank estab7 lished under this section shall not be construed as a com8 mitment, guarantee, or obligation on the part of the 

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

10 have any right against the United States for payment sole11 ly by virtue of the contribution. Any security or debt fi12 nancing instrument issued by the infrastructure bank 

13 shall expressly state that the security or instrument does 

14 not constitute a commitment, guarantee, or obligation of 

15 the United States. 

16 (j) INCOME ATTRIBUTABLE TO INTEREST.—The in17 come attributable to interest described in subsection (c)(5) 

18 shall be exempt from Federal taxation. 

19 (k) MANAGEMENT OF FEDERAL FUNDS.—Sections 

20 3335 and 6503 of title 31, United States Code, shall not 

21 apply to funds contributed under this section. 

22 (l) PROGRAM ADMINISTRATION.—A State may ex23 pend an amount not to exceed 2 percent of the grant funds 

24 contributed to an infrastructure bank established by a 


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1 State or States under this section to pay the reasonable 

2 costs of administering the infrastructure bank. 

3 (m) SECRETARIAL REVIEW AND REPORT.—The Sec4 retary shall— 

5 (1) review the financial condition of each infra6 structure bank established under this section; and 

7 (2) transmit to Congress a report on the results 

8 of such review not later than 90 days after the com9 pletion of the review. 

10 SEC. 4. DEFINITIONS. 

11 In this Act: 

12 (1) ELEMENTARY SCHOOL, FREE PUBLIC EDU13 CATION, AND SECONDARY SCHOOL.—The terms ‘‘ele14 mentary school’’, ‘‘free public education’’, and ‘‘sec15 ondary school’’ have the meanings given the terms 

16 in section 9101 of the Elementary and Secondary 

17 Education Act of 1965 (20 U.S.C. 7801). 

18 (2) LOCAL EDUCATIONAL AGENCY.—The term 

19 ‘‘local educational agency’’ has the meaning given 

20 the term in section 9101 of the Elementary and Sec21 ondary Education Act of 1965 (20 U.S.C. 7801) 

22 and includes a public charter school that operates as 

23 a local educational agency of the State in which the 

24 school is located. 


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1 (3) OUTLYING AREA.—The term ‘‘outlying 

2 area’’ means the United States Virgin Islands, 

3 Guam, American Samoa, the Commonwealth of the 

4 Northern Mariana Islands, the Republic of the Mar5 shall Islands, the Federated States of Micronesia, 

6 and the Republic of Palau. 

7 (4) PUBLIC LIBRARY.—The term ‘‘public li8 brary’’— 

9 (A) means a library that serves, free of 

10 charge, all residents of a community, district, or 

11 region, and receives its financial support in 

12 whole or in part from public funds; and 

13 (B) includes a research library, which, for 

14 purposes of this subparagraph, means a library 

15 that— 

16 (i) makes its services available to the 

17 public free of charge; 

18 (ii) has extensive collections of books, 

19 manuscripts, and other materials suitable 

20 for scholarly research that are not avail21 able to the public through public libraries; 

22 (iii) engages in the dissemination of 

23 humanistic knowledge through the provi24 sion of services to readers, fellowships, 

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1 cation of significant research, and other 

2 activities; and 

3 (iv) is not an integral part of an insti4 tution of higher education (as defined in 

5 section 101(a) of the Higher Education 

6 Act of 1965 (20 U.S.C. 1001(a)). 

7 (5) STATE.—The term ‘‘State’’ means each of 

8 the 50 States, the District of Columbia, the Com9 monwealth of Puerto Rico, and each of the outlying 

10 areas. 

Æ 


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