II 

113TH CONGRESS 

1ST SESSION S. 387 

To establish the American Infrastructure Investment Fund and other activities to facilitate investments in infrastructure projects that significantly 

enhance the economic competitiveness of the United States by improving 

economic output, productivity, or competitive commercial advantage, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 26, 2013 

Mr. ROCKEFELLER (for himself and Mr. LAUTENBERG) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To establish the American Infrastructure Investment Fund 

and other activities to facilitate investments in infrastructure projects that significantly enhance the economic 

competitiveness of the United States by improving economic output, productivity, or competitive commercial 

advantage, 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 ‘‘American Infrastructure Investment Fund Act’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. American infrastructure investment fund. 

Sec. 3. National infrastructure investment grants. 

3 SEC. 2. AMERICAN INFRASTRUCTURE INVESTMENT FUND. 

4 (a) ESTABLISHMENT OF FUND.—Chapter 3 of title 

5 49, United States Code, is amended— 

6 (1) in the table of sections, by adding at the 

7 end the following: 

‘‘SUBCHAPTER IV—AMERICAN INFRASTRUCTURE INVESTMENT FUND

‘‘361. Definitions. 

‘‘362. Establishment of Fund. 

‘‘363. Organizational structure and duties. 

‘‘364. Fund authorities and assistance. 

‘‘365. Studies and reports.’’; 

8 and 

9 (2) by adding at the end the following: 

10 ‘‘SUBCHAPTER IV—AMERICAN 

11 INFRASTRUCTURE INVESTMENT FUND 

12 ‘‘§ 361. Definitions 

13 ‘‘In this subchapter: 

14 ‘‘(1) BOARD.—The term ‘Board’ means the 

15 Board of Directors of the Fund appointed pursuant 

16 to section 363(b). 

17 ‘‘(2) DIRECT LOAN.—The term ‘direct loan’ has 

18 the meaning given the term under section 502(1) of 

19 the Congressional Budget Act of 1974 (2 U.S.C. 

20 661a(1)). 


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1 ‘‘(3) ECONOMIC COMPETITIVENESS.—The term 

2 ‘economic competitiveness’ means the ability of the 

3 economy to more efficiently produce goods and de4 liver services, including— 

5 ‘‘(A) reductions in travel time of goods and 

6 people, including reductions in average delay or 

7 the uncertainty of travel time; and 

8 ‘‘(B) net benefits to society through eco9 nomic benefits attributable to improving the 

10 spatial clustering of economic activity. 

11 ‘‘(4) ELIGIBLE PROJECT.—The term ‘eligible 

12 project’ means a capital project that— 

13 ‘‘(A) advances the objectives of this sub14 chapter; 

15 ‘‘(B) is comprised of activities included in 

16 a regional, State, or national plan, either at the 

17 time of submission of the application or before 

18 the obligation of funds from the Fund; 

19 ‘‘(C) has eligible project costs related to a 

20 single project, or has aggregate eligible project 

21 costs related to a program of projects that are 

22 coordinated to achieve a unified improvement; 

23 and 

24 ‘‘(D) is a transportation-related project. 


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1 ‘‘(5) ELIGIBLE FUNDING RECIPIENT.—The 

2 term ‘eligible funding recipient’— 

3 ‘‘(A) means an entity that has received a 

4 financing award from the Fund; 

5 ‘‘(B) shall be— 

6 ‘‘(i) a non-Federal governmental enti7 ty, agency, or instrumentality; or 

8 ‘‘(ii) a nongovernmental entity, such 

9 as a corporation, partnership, joint ven10 ture, or other instrumentality, that seeks 

11 funding for an eligible project; and 

12 ‘‘(C) shall have a non-Federal govern13 mental cosponsor of the project if it is a non14 governmental entity. 

15 ‘‘(6) ELIGIBLE PROJECT COST.—The term ‘eli16 gible project cost’— 

17 ‘‘(A) includes costs associated with devel18 opment phase planning and design activities, 

19 construction, acquisition, rehabilitation, envi20 ronmental remediation, interest expense during 

21 construction or reconstruction, and reasonable 

22 required reserves; and 

23 ‘‘(B) excludes operating costs, research 

24 and development costs, and any other costs not 


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1 otherwise specifically provided for in subpara2 graph (A). 

3 ‘‘(7) EXECUTIVE DIRECTOR.—The term ‘Execu4 tive Director’ means the Executive Director of the 

5 Fund appointed pursuant to section 363(a)(1). 

6 ‘‘(8) FUND.—The term ‘Fund’ means the 

7 American Infrastructure Investment Fund of the 

8 Department of Transportation established under sec9 tion 362. 

10 ‘‘(9) INVESTMENT PLAN.—The term ‘invest11 ment plan’ means a written mutual agreement be12 tween the Fund and an applicant that outlines the 

13 prospective terms of financial assistance to be in14 vested by the Fund. 

15 ‘‘(10) LINE OF CREDIT.—The term ‘line of 

16 credit’ means an agreement entered into between the 

17 Fund and an eligible funding recipient to provide a 

18 direct loan at a future date upon the occurrence of 

19 certain events. 

20 ‘‘(11) LOAN GUARANTEE.—The term ‘loan 

21 guarantee’ has the meaning given the term under 

22 section 502(3) of the Congressional Budget Act of 

23 1974 (2 U.S.C. 661a(3)). 

24 ‘‘(12) OPERATING GUIDANCE.—The term ‘Op25 erating Guidance’ means the detailed description of 


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1 the Fund’s operating policies and procedures that 

2 has been published in accordance with this sub3 chapter. 

4 ‘‘(13) QUALIFIED APPLICATION.—The term 

5 ‘Qualified Application’ means an application that the 

6 Executive Director has certified to have met eligi7 bility and qualification standards under this sub8 chapter. 

9 ‘‘(14) RURAL.—The term ‘rural’ means all pop10 ulation and territory that are not within an Urban11 ized Area (as such term is defined in the most re12 cent decennial United States census). 

13 ‘‘(15) SECRETARY.—Except as otherwise speci14 fied, the term ‘Secretary’ means the Secretary of 

15 Transportation. 

16 ‘‘(16) TRANSPORTATION-RELATED PROJECT.— 

17 The term ‘transportation-related project’ means a 

18 project that is part of, or related to, a transportation 

19 improvement, including projects related to the con20 struction or improvement of— 

21 ‘‘(A) a passenger or freight rail line; 

22 ‘‘(B) a highway; 

23 ‘‘(C) a bridge; 

24 ‘‘(D) an airport; 

25 ‘‘(E) an air traffic control system; 


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1 ‘‘(F) a port or marine facility; 

2 ‘‘(G) an inland waterway; 

3 ‘‘(H) a transmission or distribution pipe4 line; 

5 ‘‘(I) public transportation facilities or sys6 tems; 

7 ‘‘(J) intercity passenger bus or passenger 

8 rail facilities or equipment; or 

9 ‘‘(K) freight rail facilities or equipment. 

10 ‘‘§ 362. Establishment of Fund 

11 ‘‘(a) ESTABLISHMENT.—There is established in the 

12 Department of Transportation an entity to be known as 

13 the ‘American Infrastructure Investment Fund’. 

14 ‘‘(b) OBJECTIVES.—The primary objective of the 

15 Fund shall be— 

16 ‘‘(1) to invest in infrastructure projects that 

17 provide measurable improvements to the economic 

18 competitiveness of all or part of the United States 

19 by increasing or otherwise improving economic out20 put, productivity, or competitive commercial advan21 tage; 

22 ‘‘(2) to provide funding for projects that face 

23 significant funding barriers due to problems associ24 ated with the need to combine resources across mul25 tiple jurisdictions or modes of transportation; 


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1 ‘‘(3) to improve the efficiency or throughput of 

2 a national or regional transportation network by— 

3 ‘‘(A) improving the integration between 

4 networks; or 

5 ‘‘(B) improving the condition, performance, 

6 or long-term cost structure of existing infra7 structure; 

8 ‘‘(4) to improve the safety of transportation fa9 cilities and systems, as measured by the reduction in 

10 risk of transportation-related crashes, injuries, or 

11 deaths; and 

12 ‘‘(5) to improve the environmental sustain13 ability of a national or regional transportation net14 work, as measured by— 

15 ‘‘(A) improvement in energy efficiency; 

16 ‘‘(B) reduction in greenhouse gas and 

17 other harmful emissions; 

18 ‘‘(C) conservation of natural resources; 

19 ‘‘(D) improvement in water quality; 

20 ‘‘(E) improvement in infrastructure resil21 ience to environmental hazards and natural dis22 asters; and 

23 ‘‘(F) other beneficial environmental im24 pacts. 

25 ‘‘(c) STRATEGY.— 


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1 ‘‘(1) IN GENERAL.—The Fund shall advance 

2 the objectives set forth in subsection (b) by pro3 viding financial assistance for individual projects or 

4 programs of related projects identified in State, re5 gional, or national plans and designed to signifi6 cantly improve national or regional economic com7 petitiveness. 

8 ‘‘(2) PROJECT PORTFOLIO.—The Fund shall— 

9 ‘‘(A) target projects or programs of related 

10 projects with a demonstrated difficulty in ob11 taining complete financing through other avail12 able public or private sources of funds, for rea13 sons including project complexity, modes, or 

14 other comparable transactional barriers; 

15 ‘‘(B) seek to identify appropriate Invest16 ment Plans for selected projects and programs 

17 of projects; and 

18 ‘‘(C) use Fund resources to build a port19 folio of transformational investments that— 

20 ‘‘(i) promotes greater efficiency in the 

21 movement of freight or the provision of 

22 services; 

23 ‘‘(ii) promotes greater efficiency in the 

24 movement of people; 


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1 ‘‘(iii) integrates multiple transpor2 tation modes in the movement of pas3 sengers or freight; 

4 ‘‘(iv) promotes the use of innovation 

5 and best practices in the planning, design, 

6 development, and delivery of projects, in7 cluding practices that promote perform8 ance-based decision making to achieve na9 tional, State, or regional objectives; 

10 ‘‘(v) promotes cross-jurisdictional in11 frastructure planning and coinvestment 

12 among a broad range of participants, in13 cluding States, tribal governments, munici14 palities, and public and private investors; 

15 and 

16 ‘‘(vi) integrates transportation infra17 structure investment planning, such as re18 gional transportation plans, with land-use 

19 economic development and other infra20 structure Investment Plans. 

21 ‘‘(3) INVESTMENT PROSPECTUS.— 

22 ‘‘(A) PUBLICATION.—Not later than 1 

23 year after the date of enactment of the Amer24 ican Infrastructure Investment Fund Act, the 


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1 Fund shall publish a detailed description of its 

2 strategy in an Investment Prospectus that— 

3 ‘‘(i) specifies what will be considered 

4 significant to the economic competitiveness 

5 of all or part of the United States in a 

6 manner consistent with the primary objec7 tive set forth in subsection (b)(1); 

8 ‘‘(ii) specifies the priorities and stra9 tegic focus of the Fund in— 

10 ‘‘(I) reaching the objectives set 

11 forth in subsection (b); and 

12 ‘‘(II) carrying out the Fund 

13 strategy described in this subsection; 

14 ‘‘(iii) describes in detail— 

15 ‘‘(I) the framework and method16 ology for calculating the qualification 

17 score assigned under section 

18 364(f)(3); 

19 ‘‘(II) the data to be requested 

20 from applicants; and 

21 ‘‘(III) the formula to be applied 

22 to such data to calculate the qualifica23 tion score; 

24 ‘‘(iv) describes how selection criteria 

25 will be applied by the Fund to determine 


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1 the competitiveness of an application and 

2 its qualification score relative to other cur3 rent applications and previously funded ap4 plications; and 

5 ‘‘(v) describes how the qualification 

6 score methodology and project selection 

7 framework are consistent with maximizing 

8 the Fund’s goals in urban and rural areas. 

9 ‘‘(B) UPDATES.—Not later than 2 years 

10 after the original publication of the Investment 

11 Prospectus, and biennially thereafter, the Fund 

12 shall publish an updated Investment Pro13 spectus. 

14 ‘‘(C) APPROVAL.—The Fund may not pub15 lish the Investment Prospectus or any subse16 quent updates under subparagraph (B) until 

17 the Board has approved the Investment Pro18 spectus by a majority vote. 

19 ‘‘(4) OPERATING GUIDANCE.— 

20 ‘‘(A) PUBLICATION.—Not later than 1 

21 year after the date of enactment of the Amer22 ican Infrastructure Investment Fund Act, the 

23 Fund shall establish and publish its Operating 

24 Guidance for the management of the Fund, 

25 which shall— 


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1 ‘‘(i) establish general operating proce2 dures to be followed by the Fund in car3 rying out its authorities under this sub4 chapter; 

5 ‘‘(ii) establish criteria, requirements, 

6 and standards regarding the provisions of 

7 various forms of assistance authorized 

8 under this subchapter, including the var9 ious forms and terms of credit assistance 

10 that are consistent with the requirements 

11 under this subchapter; 

12 ‘‘(iii) establish an application and 

13 award process for Planning and Feasibility 

14 Loans in accordance with the provisions 

15 under this subchapter; 

16 ‘‘(iv) establish disclosure and applica17 tion procedures for nominating or other18 wise proposing applications for project as19 sistance, either solicited or unsolicited, that 

20 are consistent with the requirements under 

21 this subchapter; 

22 ‘‘(v) describe in detail the form and 

23 timing of data and other information re24 quired of applicants in conjunction with 


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1 consideration of an application for finan2 cial assistance under this subchapter; and 

3 ‘‘(vi) establish a schedule of regular 

4 time intervals for the submission for con5 sideration of sets of 1 or more Investment 

6 Plans to the Board. 

7 ‘‘(B) REVIEW AND UPDATE.—The Fund 

8 shall periodically review, and may update, the 

9 Operating Guidance published under subpara10 graph (A). 

11 ‘‘(5) RULEMAKING.—Paragraphs (3) and (4) 

12 shall be carried out in accordance with the rule13 making procedures set forth in section 553 of title 

14 5, United States Code. 

15 ‘‘§ 363. Organizational structure and duties 

16 ‘‘(a) EXECUTIVE DIRECTOR.— 

17 ‘‘(1) APPOINTMENT; AUTHORITY.—The Presi18 dent shall appoint, by and with the advice and con19 sent of the Senate, an Executive Director, who shall 

20 be the chief executive officer of the Fund, and shall 

21 have such executive functions, powers, and duties as 

22 set forth in this subchapter or prescribed by the 

23 Board. 

24 ‘‘(2) SUPERVISION.—The Executive Director 

25 shall be subject to the supervision and direction of 


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1 the Secretary of Transportation, consistent with the 

2 Executive Director’s duties under this subchapter 

3 and other requirements set forth in the Operating 

4 Guidance referred to in section 362(c)(4). 

5 ‘‘(3) QUALIFICATIONS.—The Executive Director 

6 shall have demonstrated expertise in at least 2 of the 

7 following 3 areas: 

8 ‘‘(A) Economic analysis. 

9 ‘‘(B) Project, public, or corporate finance. 

10 ‘‘(C) Organizational management. 

11 ‘‘(4) TERM OF SERVICE; VACANCY.—The Exec12 utive Director shall serve a 5-year term, which may 

13 be renewed in accordance with paragraph (1). A va14 cancy in the position of Executive Director shall be 

15 filled as expeditiously as possible in the manner in 

16 which the original appointment was made. 

17 ‘‘(5) DUTIES.—In addition to the other activi18 ties required to carry out the authorities and pur19 poses of the Fund under this subchapter, the Execu20 tive Director shall— 

21 ‘‘(A) be responsible for the day-to-day op22 erations of the Fund; 

23 ‘‘(B) establish and approve the Operating 

24 Guidance in accordance with section 362(c)(4); 


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1 ‘‘(C) establish and maintain a project ap2 plication origination capability at the Fund that 

3 consists of a staff of qualified transportation in4 frastructure planning professionals; 

5 ‘‘(D) establish and maintain an analysis 

6 capability at the Fund that consists of a staff 

7 of qualified economics professionals directed to 

8 collect application data, analyze that data, and 

9 report to the Executive Director on qualifica10 tion scores and ranges, measures of uncer11 tainty, and other analyses of applications; 

12 ‘‘(E) establish and maintain an investment 

13 planning process capability at the Fund that 

14 consists of a staff of qualified project finance 

15 professionals directed to review qualified appli16 cations and to structure Investment Plans; and 

17 ‘‘(F) establish and maintain a technical as18 sistance capability at the Fund that consists of 

19 a staff of qualified project management profes20 sionals directed to assist those entities receiving 

21 funding from the Fund in the successful execu22 tion of their Investment Plans and to otherwise 

23 implement the funding decisions of the Sec24 retary. 


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1 ‘‘(6) OTHER AUTHORITY.—The Executive Di2 rector shall have the authority to hire contractors to 

3 establish and maintain the expertise as described in 

4 paragraph (5). 

5 ‘‘(7) COMPENSATION.—The Executive Director 

6 shall be a position compensated on the General Ex7 ecutive Schedule. 

8 ‘‘(b) BOARD OF DIRECTORS.— 

9 ‘‘(1) ESTABLISHMENT.—There is established 

10 within the Fund a deliberative body to be known as 

11 the ‘Board of Directors’. 

12 ‘‘(2) MEMBERSHIP.—The Board shall be com13 posed of 8 members, including— 

14 ‘‘(A) the Secretary of the Treasury, the 

15 Secretary of Commerce, the Secretary of En16 ergy, the Secretary of Housing and Urban De17 velopment, and the Administrator of the Envi18 ronmental Protection Agency, who shall serve 

19 as permanent members; and 

20 ‘‘(B) 3 executives of the Department of 

21 Transportation appointed by the Secretary, of 

22 whom— 

23 ‘‘(i) not more than 1 shall serve con24 currently as— 

25 ‘‘(I) the Deputy Secretary; 


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1 ‘‘(II) the Under Secretary of 

2 Transportation for Policy; 

3 ‘‘(III) the General Counsel; 

4 ‘‘(IV) the Chief Financial Officer; 

5 ‘‘(V) the Assistant Secretary of 

6 Transportation for Policy; or 

7 ‘‘(VI) the Assistant Secretary of 

8 Transportation for Aviation and 

9 International Affairs; and 

10 ‘‘(ii) not more than 2 shall serve for 

11 not longer than 2 years, while concurrently 

12 serving as— 

13 ‘‘(I) the Administrator of the 

14 Federal Aviation Administration; 

15 ‘‘(II) the Administrator of the 

16 Federal Highway Administration; 

17 ‘‘(III) the Administrator of the 

18 Federal Railroad Administration; 

19 ‘‘(IV) the Administrator of the 

20 Federal Transit Administration; 

21 ‘‘(V) the Administrator of the 

22 Maritime Administration; 

23 ‘‘(VI) the Administrator of the 

24 Pipeline and Hazardous Materials 

25 Safety Administration; or 


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1 ‘‘(VII) the Administrator of the 

2 Federal Motor Carrier Safety Admin3 istration. 

4 ‘‘(3) DUTIES.—The Board shall— 

5 ‘‘(A) not later than 180 days after the date 

6 of enactment of the American Infrastructure 

7 Investment Fund Act, establish and approve the 

8 Investment Prospectus, in consultation with the 

9 Fund Advisory Committee; 

10 ‘‘(B) on each biennial anniversary of its 

11 original publication, update the Investment Pro12 spectus, in consultation with the Fund Advisory 

13 Committee; 

14 ‘‘(C) review Investment Plans, related ap15 plication materials, and other analyses provided 

16 to the Board by the Executive Director; 

17 ‘‘(D) determine by majority vote whether 

18 or not to recommend Investment Plans sub19 mitted by the Executive Director to the Sec20 retary; and 

21 ‘‘(E) certify reports to Congress and other 

22 publications of the Fund. 

23 ‘‘(4) MAJORITY VOTE REQUIRED.—Each action 

24 or decision by the Board shall be by majority vote 

25 of all members, whether in person or in absentia. 


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1 Each member shall be provided a reasonable oppor2 tunity to vote on all matters before the Board. 

3 ‘‘(c) FUND ADVISORY COMMITTEE.— 

4 ‘‘(1) ESTABLISHMENT.—Not later than 180 

5 days after the date of enactment of the American 

6 Infrastructure Investment Fund Act, the President 

7 shall establish an advisory committee, to be known 

8 as the ‘Fund Advisory Committee’. 

9 ‘‘(2) MEMBERSHIP.— 

10 ‘‘(A) APPOINTMENT.—The President shall 

11 appoint not fewer than 5 people and not more 

12 than 7 people to serve 3-year terms as members 

13 of the Fund Advisory Committee, including 1 

14 member to serve as Chair of the Committee. 

15 ‘‘(B) QUALIFICATIONS.—Each member 

16 shall have expertise in— 

17 ‘‘(i) economics and economic analysis; 

18 ‘‘(ii) project or fund management; 

19 ‘‘(iii) portfolio or fund management; 

20 ‘‘(iv) organized labor interests; 

21 ‘‘(v) environmental interests; 

22 ‘‘(vi) American business and trade in23 terests; 

24 ‘‘(vii) rural community and economic 

25 development; 


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1 ‘‘(viii) metropolitan economic develop2 ment and clustering of economic develop3 ment; 

4 ‘‘(ix) State Department of Transpor5 tation or Metropolitan Planning Organiza6 tion policies and priorities; or 

7 ‘‘(x) other infrastructure planning, re8 development, and development-related 

9 codes and policies. 

10 ‘‘(C) REPRESENTATION.—The President 

11 shall ensure that the membership of the Fund 

12 Advisory Committee— 

13 ‘‘(i) is bipartisan; 

14 ‘‘(ii) is geographically and economi15 cally balanced; and 

16 ‘‘(iii) is balanced in terms of the func17 tions to be performed by the Fund Advi18 sory Committee. 

19 ‘‘(3) ADVICE.—The Fund Advisory Committee 

20 shall advise the Board and the Secretary with re21 spect to— 

22 ‘‘(A) the alignment of the Investment Pro23 spectus with the primary and secondary objec24 tives, and other elements of the Fund strategy 

25 described in section 362(c); 


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1 ‘‘(B) the alignment of the framework and 

2 methodology used to determine qualification 

3 scores and uncertainty estimates with the pri4 mary objective, secondary objectives, and the 

5 Fund strategy; 

6 ‘‘(C) the consistency of the calculation of 

7 qualification scores and uncertainty estimates 

8 with academic standards for analytical rigor 

9 and data quality typically applied to peer-re10 viewed research; 

11 ‘‘(D) the alignment of investment decision 

12 mechanics and outcomes with the Investment 

13 Prospectus and the requirements under this 

14 subchapter; 

15 ‘‘(E) the integrity and effectiveness of 

16 Fund operations and performance, including 

17 application evaluation processes, Investment 

18 Plan processes and determinations, and the op19 timization of the Fund’s performance as a port20 folio; and 

21 ‘‘(F) prospects for the extension of the 

22 Fund’s activities to nontransportation infra23 structure sectors likely to benefit the United 

24 States, including renewable energy generation, 

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1 ciency, drinking water and wastewater systems, 

2 and telecommunications. 

3 ‘‘(4) APPLICABILITY OF FACA.—The Fund Ad4 visory Committee shall be subject to the Federal Ad5 visory Committee Act (5 U.S.C. App.). 

6 ‘‘§ 364. Fund authorities and assistance 

7 ‘‘(a) AGREEMENTS WITH OTHER ORGANIZATIONS.— 

8 The Fund may— 

9 ‘‘(1) enter into an agreement with any organi10 zation within the Department of Transportation to 

11 obtain necessary technical expertise and assistance; 

12 and 

13 ‘‘(2) request any Federal agency to detail em14 ployees to the Fund for purposes of carrying out its 

15 duties under this subchapter. 

16 ‘‘(b) FEES FOR SERVICES.— 

17 ‘‘(1) ADMINISTRATIVE FEES.—The Fund may 

18 establish and collect fees from eligible funding recipi19 ents, including application and processing fees and 

20 other fees associated with the costs of loan servicing, 

21 at a level sufficient to cover all or a portion of the 

22 administrative costs to the Federal Government of 

23 providing funding assistance and servicing the credit 

24 instruments entered into under this subchapter. 


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1 ‘‘(2) OTHER FEES.—The Fund may establish 

2 and collect fees from eligible funding recipients at a 

3 level sufficient to cover all or a portion of the costs 

4 of expert firms, including counsel in the field of mu5 nicipal and project finance, and financial advisors to 

6 assist with underwriting, credit analysis, or other 

7 independent reviews, as appropriate. 

8 ‘‘(3) LIMITATION.—The Fund may not collect 

9 fees under paragraph (1) or (2) that originate as a 

10 loan or a debt obligation guaranteed by the Federal 

11 Government. 

12 ‘‘(4) AVAILABILITY OF AMOUNTS.—Amounts 

13 collected under paragraphs (1) and (2) shall be 

14 available to be expended to carry out the duties 

15 under this subchapter. 

16 ‘‘(c) PLANNING AND FEASIBILITY LOANS.— 

17 ‘‘(1) IN GENERAL.—The Fund may provide 

18 loans, which may be forgivable, to eligible funding 

19 recipients to fund activities related to the planning, 

20 preparation, or design of an eligible project proposal, 

21 including costs associated with— 

22 ‘‘(A) planning and formulating optimal 

23 project design; 

24 ‘‘(B) assessing project technical feasibility; 

25 and 


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1 ‘‘(C) assessing potential project perform2 ance. 

3 ‘‘(2) LOAN PROGRAM CRITERIA.—In providing 

4 loans under this subsection, the Fund shall give pri5 ority to activities that are likely to lead to projects 

6 that— 

7 ‘‘(A) advance the objectives set forth in 

8 section 362(b); and 

9 ‘‘(B) are consistent with the strategy de10 scribed in section 362(c). 

11 ‘‘(3) FEDERAL SHARE.—The Fund may enter 

12 into a loan agreement with an eligible recipient in 

13 which the Fund agrees to pay up to 100 percent of 

14 eligible planning and feasibility costs of an eligible 

15 project under this subsection. 

16 ‘‘(4) ELIGIBLE COSTS.—Loan amounts received 

17 under this subsection may be used for— 

18 ‘‘(A) any activity reasonably necessary to 

19 obtain Federal, State, and local permits, li20 censes, and approvals for an eligible project, in21 cluding— 

22 ‘‘(i) concept development and prelimi23 nary design; 

24 ‘‘(ii) economic and environmental 

25 analyses; and 


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1 ‘‘(iii) application, licensing, and per2 mit fees; or 

3 ‘‘(B) the preparation of financial analyses 

4 and other economic analyses that are reason5 ably necessary to secure funding to implement 

6 an eligible project. 

7 ‘‘(5) ALIGNMENT WITH INVESTMENT PRO8 SPECTUS.—The Fund may not provide a loan for a 

9 project under this subsection unless the application 

10 materials demonstrate that the eligible project is 

11 aligned with the strategy outlined in the Investment 

12 Prospectus. 

13 ‘‘(6) DESIGNATION FOR RECEIPT OF CERTAIN

14 FUNDS.—If a non-Federal governmental entity, 

15 agency, or instrumentality is carrying out the plan16 ning and feasibility activities, the eligible funding re17 cipient may designate such entity, agency, or instru18 mentality to receive loan amounts for such activities 

19 directly from the Fund. 

20 ‘‘(d) DIRECT LOANS AND LOAN GUARANTEES.— 

21 ‘‘(1) DIRECT LOANS.— 

22 ‘‘(A) AGREEMENTS.—The Fund is author23 ized to make direct loans to eligible funding re24 cipients for eligible projects on such terms and 

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1 resentations, warranties, and requirements, in2 cluding required audits, as the Fund determines 

3 appropriate, in accordance with the provisions 

4 under this subchapter, the Operating Guidance, 

5 and all other statutory and regulatory require6 ments. 

7 ‘‘(B) APPROVED INVESTMENT PLAN.—Di8 rect loans made under this paragraph— 

9 ‘‘(i) may only be used to fund eligible 

10 project costs covered in an Investment 

11 Plan approved by the Secretary; and 

12 ‘‘(ii) are subject to the terms and con13 ditions of the approved Investment Plan. 

14 ‘‘(C) TERMS, CONDITIONS, AND LIMITA15 TIONS.—Direct loans made under this para16 graph will be on such terms, conditions, and 

17 limitations as the Executive Director may pre18 scribe, except that— 

19 ‘‘(i) the Fund may not provide credit 

20 assistance to any prospective borrower un21 less such assistance— 

22 ‘‘(I) is necessary— 

23 ‘‘(aa) to alleviate a credit 

24 market imperfection; or 


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1 ‘‘(bb) to achieve specified 

2 Federal objectives by providing 

3 credit assistance; and 

4 ‘‘(II) is the most efficient way to 

5 meet such objectives on a borrower6 by-borrower basis; 

7 ‘‘(ii) loans made under this paragraph 

8 may not be subordinated to other debt con9 tracted by the borrower or any other 

10 claims against the borrower in case of de11 fault unless such subordination is nec12 essary to achieve Federal objectives, con13 sistent with the criteria and policies set 

14 forth in the Operating Guidance; 

15 ‘‘(iii) direct loans or interest supple16 ments on loan guarantees shall be at an in17 terest rate that is set by reference to a 

18 benchmark interest rate (yield) on market19 able Treasury securities with a similar ma20 turity to the direct loans being made or the 

21 non-Federal loans being guaranteed, and 

22 includes any necessary credit risk premium 

23 at a level consistent with the interest rate 

24 policy set forth in the Operating Guidance; 

25 ‘‘(iv) the Executive Director— 


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1 ‘‘(I) shall prescribe explicit 

2 standards for use in periodically as3 sessing the credit risk of new and ex4 isting direct loans and guaranteed 

5 loans; and 

6 ‘‘(II) may not extend credit as7 sistance without determining that 

8 there is a reasonable assurance of re9 payment; 

10 ‘‘(v) new direct loans may not be obli11 gated and new loan guarantees may not be 

12 committed except to the extent that appro13 priations of budget authority to cover their 

14 costs are made in advance, as required 

15 under section 504 of the Federal Credit 

16 Reform Act of 1990 (2 U.S.C. 661c); 

17 ‘‘(vi) the total principal amount of the 

18 direct loan or loan guarantee may not ex19 ceed— 

20 ‘‘(I) the lower of 70 percent of 

21 total eligible project cost less the per22 centage of eligible project costs that 

23 are otherwise funded by the Fund; or 

24 ‘‘(II) another level prescribed in 

25 the Operating Guidance; and 


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1 ‘‘(vii) notwithstanding any other pro2 vision of law relating to the acquisition, 

3 handling, or disposal of property by the 

4 Federal Government, the Fund may com5 plete, recondition, reconstruct, renovate, 

6 repair, maintain, operate, or sell any prop7 erty acquired by the Fund under this sub8 chapter. 

9 ‘‘(D) REPAYMENT.— 

10 ‘‘(i) POLICIES.—The Fund shall— 

11 ‘‘(I) adhere to the policies set 

12 forth in the Operating Guidance con13 cerning repayment terms; and 

14 ‘‘(II) establish repayment terms 

15 for each direct loan based on the pro16 jected cash flow from project revenues 

17 or other repayment sources. 

18 ‘‘(ii) MATURITY DATE.—The final ma19 turity date of a direct loan under this 

20 paragraph— 

21 ‘‘(I) shall not exceed 90 percent 

22 of the estimated useful economic life 

23 of the asset being financed, except 

24 under conditions set forth in the Op25 erating Guidance; and 


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1 ‘‘(II) may not be later than the 

2 estimated useful economic life of the 

3 asset being financed. 

4 ‘‘(E) RISK ASSESSMENT.—Before entering 

5 in any agreement under this section, the Execu6 tive Director shall complete a risk assessment 

7 of the project to be funded. Requirements for 

8 risk assessment shall be outlined in the Oper9 ating Guidance. 

10 ‘‘(2) LOAN GUARANTEES.— 

11 ‘‘(A) IN GENERAL.—The Fund is author12 ized to provide loan guarantees to eligible fund13 ing recipients on such terms and conditions and 

14 containing such covenants, representations, 

15 warranties, and requirements (including re16 quired audits) as the Fund determines appro17 priate, in accordance with the provisions under 

18 this subchapter, the Operating Guidance, and 

19 all other statutory and regulatory requirements. 

20 ‘‘(B) APPROVED INVESTMENT PLAN.— 

21 Loan guarantees provided under this para22 graph— 

23 ‘‘(i) may only cover eligible project 

24 costs in an approved Investment Plan; and 


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1 ‘‘(ii) are subject to the terms and con2 ditions of the approved Investment Plan. 

3 ‘‘(C) TERMS, CONDITIONS, AND LIMITA4 TIONS.— 

5 ‘‘(i) IN GENERAL.—The terms, condi6 tions, and limitations of a guaranteed loan 

7 shall comply with the terms, conditions, 

8 and limitations set forth in paragraph (1) 

9 for a direct loan, including maximum Fund 

10 share requirements, except that the inter11 est rate on the guaranteed loan and any 

12 repayment features shall be negotiated be13 tween the eligible funding recipient and the 

14 lender in accordance with the policies set 

15 forth in the Operating Guidance, and with 

16 the consent of the Secretary. 

17 ‘‘(ii) INCOME EXCLUDED.—A loan 

18 may not be guaranteed under this para19 graph if— 

20 ‘‘(I) the income from such loan is 

21 excluded from gross income for the 

22 purposes of chapter 1 of the Internal 

23 Revenue Code of 1986; or 

24 ‘‘(II) the guarantee provides sig25 nificant collateral or security, as deVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 termined by the Executive Director, 

2 for other obligations generating in3 come that is similarly excluded. 

4 ‘‘(iii) FEES.—Fees or premiums for a 

5 loan guarantee or insurance coverage shall 

6 be set at levels that minimize the cost to 

7 the Government (as defined in section 

8 502(5) of the Federal Credit Reform Act 

9 of 1990 (2 U.S.C. 661a(5))) of such cov10 erage, while supporting achievement of the 

11 program’s objectives, in accordance with 

12 policies set forth in the Operating Guid13 ance. 

14 ‘‘(iv) PERCENT GUARANTEED.—A 

15 loan guarantee under this paragraph may 

16 not exceed 80 percent of the loss of the 

17 loan. Borrowers who pose less of a risk 

18 shall receive a lower guarantee as a per19 centage of the loan amount. 

20 ‘‘(v) CRITERIA.—A loan may not be 

21 guaranteed under this paragraph unless 

22 the Executive Director determines that— 

23 ‘‘(I) the lender is responsible; 

24 and 


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1 ‘‘(II) adequate provision is made 

2 for servicing the loan on reasonable 

3 terms. 

4 ‘‘(vi) CONCLUSIVE EVIDENCE.—Any 

5 guarantee shall be conclusive evidence 

6 that— 

7 ‘‘(I) such guarantee has been 

8 properly obtained; 

9 ‘‘(II) the underlying loan quali10 fied for such guarantee; and 

11 ‘‘(III) such guarantee is pre12 sumed to be valid, legal, and enforce13 able, unless such guarantee was ob14 tained through fraud or material mis15 representation by the holder. 

16 ‘‘(vii) EFFECT OF DEFAULT.—If, as a 

17 result of a default by a borrower under a 

18 guaranteed loan, after the holder of the 

19 loan has made such further collection ef20 forts and instituted such enforcement pro21 ceedings as the Executive Director may re22 quire, the Executive Director determines 

23 that the holder has suffered a loss, the Ex24 ecutive Director— 


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1 ‘‘(I) shall pay to the holder not 

2 more than 80 percent of such loss, as 

3 specified in the guarantee contract; 

4 ‘‘(II) upon making such payment, 

5 shall be subrogated to all the rights of 

6 the recipient of the payment; and 

7 ‘‘(III) shall be entitled to recover 

8 from the borrower the amount of any 

9 payments made pursuant to any guar10 antee entered into under this para11 graph. 

12 ‘‘(viii) ENFORCEMENT.—The Attorney 

13 General shall take such action as may be 

14 appropriate to enforce any right accruing 

15 to the United States as a result of the 

16 issuance of any loan guarantee under this 

17 paragraph. 

18 ‘‘(ix) SAVINGS PROVISION.—Nothing 

19 in this paragraph may be construed to pre20 clude any forbearance for the benefit of the 

21 borrower, which may be agreed upon by 

22 the Executive Director, if budget authority 

23 for any resulting modification cost (as de24 fined under section 502 of the CongresVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 sional Budget Act of 1974 (2 U.S.C. 

2 661a)) is available. 

3 ‘‘(D) REPAYMENT.—The Fund shall ad4 here to policies set forth in the Operating Guid5 ance concerning repayment terms and shall es6 tablish repayment terms for each direct loan 

7 based on the projected cash flow from project 

8 revenues or other repayment sources. 

9 ‘‘(E) RISK ASSESSMENT.—Requirements 

10 for risk assessment shall be outlined in the Op11 erating Guidance. 

12 ‘‘(e) APPLICATION EVALUATION AND QUALIFICA13 TION.— 

14 ‘‘(1) APPLICATION ELIGIBILITY STANDARD.— 

15 An application for financial assistance from the 

16 Fund may not be considered unless— 

17 ‘‘(A) funding recipient or recipients, 

18 project or program of related projects, and as19 sociated project costs identified in the applica20 tion are eligible for such funding under this 

21 subchapter; 

22 ‘‘(B) eligible project costs identified in the 

23 application— 

24 ‘‘(i) are greater than $50,000,000; or 


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1 ‘‘(ii) if the application is for a project 

2 or program of related projects located en3 tirely in a rural area, are greater than 

4 $10,000,000; 

5 ‘‘(C) the application identifies financial as6 sistance from sources outside of the Fund equal 

7 to at least 30 percent of the total eligible 

8 project costs; 

9 ‘‘(D) the application identifies project ben10 efits that are distributed broadly, either at a 

11 national or a regional level; and 

12 ‘‘(E) the applicant is not ineligible to re13 ceive Federal loans, loan guarantees, or insur14 ance due to a delinquency on Federal tax or 

15 non-tax debts, including judgment liens against 

16 property for a debt to the Federal Government. 

17 ‘‘(2) RESOLUTION OF DEBTS.—The Fund shall 

18 use credit bureaus as a screening tool and ask appli19 cants about delinquencies described in paragraph 

20 (1)(E) on the application form. An application from 

21 an applicant that is delinquent on a debt to the Fed22 eral Government may not be processed until after 

23 the applicant satisfactorily resolves the debts in com24 pliance with section 3720B of title 31, United States 


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1 Code, and section 285.13 of title 31, Code of Fed2 eral Regulations. 

3 ‘‘(3) QUALIFICATION SCORE.— 

4 ‘‘(A) ASSIGNMENT.—The Fund shall as5 sign to each eligible application a single numer6 ical factor, which shall be— 

7 ‘‘(i) based upon an evaluation of the 

8 information and data collected from the 

9 applicant or otherwise obtained in the 

10 course of due diligence on the application; 

11 ‘‘(ii) referred to as the ‘qualification 

12 score’; and 

13 ‘‘(iii) equal to the ratio between the 

14 present value of benefits to the present 

15 value of costs reasonably expected to result 

16 from the funding of the project or projects 

17 proposed in the application. 

18 ‘‘(B) CALCULATION.—The calculation of 

19 the qualification score shall be determined 

20 through a consistently and transparently ap21 plied analytic and systematic framework. In 

22 order to indicate the potential uncertainty of 

23 the qualification score, the Fund shall use a 

24 measure of the uncertainty of expected project 

25 benefits and costs to derive a range of ratio valVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 ues with the qualification score as the midpoint 

2 of that range. 

3 ‘‘(C) METHODOLOGY.—The methodology 

4 used to calculate the qualification score and un5 certainty measures shall— 

6 ‘‘(i) apply equal weighting to all meas7 ures of the net present value of benefits 

8 and costs; 

9 ‘‘(ii) include standardized measures of 

10 the expected uncertainty in both total and 

11 specific benefits and costs associated with 

12 the project; and 

13 ‘‘(iii) include a descriptive statement 

14 delineating the significant factors and 

15 analysis that went into determination of 

16 the score and the range. 

17 ‘‘(D) PUBLICATION.— 

18 ‘‘(i) INVESTMENT PROSPECTUS.—The 

19 methodology of the framework for calcu20 lating the qualification score, including the 

21 specific mechanics of its calculation, shall 

22 be published in the Investment Prospectus. 

23 ‘‘(ii) METHODOLOGY.—The quan24 tification score, the methodology used to 

25 calculate the qualification score, the calVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 culation of the qualification score, and the 

2 measure of uncertainty shall be— 

3 ‘‘(I) provided to the applicant not 

4 later than 15 days after their final de5 termination; and 

6 ‘‘(II) published on the Fund’s 

7 website not later than 30 days after 

8 their final determination. 

9 ‘‘(4) APPLICATION CERTIFICATION.—The Exec10 utive Director may not certify an application as 

11 qualified for financial assistance on the basis of an 

12 evaluation of the information and data collected 

13 from the applicant unless the Executive Director de14 termines that the application’s qualification score— 

15 ‘‘(A) has been calculated on the basis of 

16 data, estimates, and assumptions that are de17 fensible according to accepted standards of eco18 nomic analysis; 

19 ‘‘(B) appears valid based on efforts by the 

20 Fund to conduct due diligence and verification; 

21 ‘‘(C) is greater than the threshold for qual22 ification published in the Investment Pro23 spectus; and 

24 ‘‘(D) is competitive with scores issued to 

25 applications currently under consideration and 


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1 scores issued to applications previously funded 

2 under this section, after taking into account the 

3 extent to which the application under consider4 ation, in order of priority— 

5 ‘‘(i) advances the objectives of the 

6 Fund set forth in section 362(b); 

7 ‘‘(ii) addresses a special infrastructure 

8 investment challenge due to cost, com9 plexity, cross-jurisdictional scope, multi10 modal features, or the use of innovative 

11 technologies; 

12 ‘‘(iii) provides a cost-effective ap13 proach to achieving the benefits described 

14 in the application relative to alternative ap15 proaches to achieving comparable benefits, 

16 after taking into account the estimated un17 certainty in measures of costs and benefits 

18 associated with the project; 

19 ‘‘(iv) combines amounts received from 

20 the Fund with other revenue sources to le21 verage substantial co-investment from non22 Federal sources; 

23 ‘‘(v) delivers revenue streams from 

24 public or private sources dedicated to pay 

25 debt service, meet ongoing operating exVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 penses, or provide for needed maintenance 

2 and capital renewal over the life cycle of 

3 the funded asset; and 

4 ‘‘(vi) encourages the use of innovative 

5 procurement, asset management, or financ6 ing to optimize the all-in-life-cycle cost-ef7 fectiveness of a project. 

8 ‘‘(f) INVESTMENT PLANS.— 

9 ‘‘(1) QUALIFIED APPLICATION REQUIRE10 MENT.—After an application is certified by the Ex11 ecutive Director as qualified under subsection (e)(4), 

12 the Executive Director and the applicant shall enter 

13 a process for producing a mutually agreeable Invest14 ment Plan. Financial assistance may not be provided 

15 to an applicant under this section unless the appli16 cant’s Investment Plan has been recommended by 

17 the Board and approved by the Secretary. 

18 ‘‘(2) INVESTMENT PLANNING PROCESS.—The 

19 Fund shall establish an investment planning process 

20 for determining the level, form, and terms of finan21 cial assistance to be offered by the Fund, including 

22 a mutually agreeable financing package that— 

23 ‘‘(A) is adequate to fund the project or 

24 projects included in the application; 


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1 ‘‘(B) maximizes total expected project ben2 efits relative to total expected costs; and 

3 ‘‘(C) considers the portion of total costs to 

4 be financed by the Fund. 

5 ‘‘(3) CONSIDERATIONS.—When considering the 

6 appropriate level and form of Fund resources to in7 clude in an Investment Plan, the Fund shall— 

8 ‘‘(A) consider the qualification score 

9 achieved by the application relative to other 

10 current applications and previously funded ap11 plications; 

12 ‘‘(B) strive to make investment plan deci13 sions on the basis of maximizing total net bene14 fits relative to cost; and 

15 ‘‘(C) consider— 

16 ‘‘(i) the amount of Fund budgetary 

17 resources required to complete a financing 

18 package; 

19 ‘‘(ii) the percentage of Federal re20 sources included in the Investment Plan in 

21 the form of grants; 

22 ‘‘(iii) the level of certainty of the pro23 posed net benefits, including the risks to 

24 the Federal taxpayer and the project sponVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 sor in the event of project cost overrun or 

2 failure; and 

3 ‘‘(iv) the percentage of eligible project 

4 costs to be funded through non-Federal re5 sources pledged by the applicant to com6 plete a financing package. 

7 ‘‘(4) INVESTMENT PLANS.—As part of the in8 vestment planning process— 

9 ‘‘(A) the Fund shall have the sole discre10 tion to determine the terms of assistance to be 

11 offered to applicants, subject to the provisions 

12 under this subchapter, the availability of fund13 ing, and any other statutory and regulatory re14 quirements; 

15 ‘‘(B) if the Fund and the applicant are 

16 able to reach mutually agreeable terms, the 

17 Fund shall record the determination on Fund 

18 assistance and the details of the complete fi19 nancing package in an Investment Plan; 

20 ‘‘(C) the Fund may not approve an Invest21 ment Plan that does not identify a complete fi22 nancing package; and 

23 ‘‘(D) the Fund is not required or com24 pelled to reach agreement on an Investment 

25 Plan. 


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1 ‘‘(5) SUBMISSION TO BOARD.—The Executive 

2 Director shall advance Investment Plans for quali3 fied applications to the Board at regular submission 

4 intervals, as set forth in the Operating Guidance. 

5 ‘‘(6) CONFLICT OF INTEREST PROTECTIONS.— 

6 The Secretary of Transportation and the Fund shall 

7 jointly establish, in operating procedures and in the 

8 Operating Guidance, communications practices and 

9 compliance procedures that protect professional staff 

10 of the Fund who are responsible for negotiating In11 vestment Plans from outside or otherwise inappro12 priate influence, and conflicts of interest, including 

13 necessary restrictions on communications between 

14 staff of the Fund who are responsible for the invest15 ment planning process and individuals and organiza16 tions within and outside the Department of Trans17 portation, including— 

18 ‘‘(A) the Board; 

19 ‘‘(B) the Office of the Secretary; 

20 ‘‘(C) the Secretary; and 

21 ‘‘(D) others needed to safeguard the ability 

22 of the Fund to fairly and independently formu23 late Investment Plans under this subsection. 

24 ‘‘(g) FUNDING DECISIONS.— 


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1 ‘‘(1) INVESTMENT PLAN SUBMISSION REQUIRE2 MENT.—The Board may not consider recommending 

3 an application for funding before receiving an In4 vestment Plan from the Executive Director. 

5 ‘‘(2) APPLICATION FUNDING RECOMMENDA6 TION.—Not later than 15 days after receiving an In7 vestment Plan from the Executive Director, the 

8 Board shall— 

9 ‘‘(A) vote on whether to recommend fund10 ing for the Investment Plan; 

11 ‘‘(B) notify the Secretary of the outcome 

12 of such vote; and 

13 ‘‘(C) if funding is recommended, forward 

14 the Investment Plan to the Secretary for ap15 proval. 

16 ‘‘(3) NO MODIFICATION.—Neither the Board 

17 nor the Secretary may modify any Investment Plan. 

18 ‘‘(4) FUNDING CONSIDERATION.— 

19 ‘‘(A) DETERMINATION.—After considering 

20 an Investment Plan recommended by the 

21 Board, the Secretary shall approve or reject the 

22 Investment Plan. 

23 ‘‘(B) APPROVAL.—If the Investment Plan 

24 is approved by the Secretary, it shall be funded 


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1 in accordance with the provisions of the Invest2 ment Plan. 

3 ‘‘(C) REJECTION.—If the Investment Plan 

4 is rejected by the Secretary, the Investment 

5 Plan— 

6 ‘‘(i) shall be returned to the Executive 

7 Director with a detailed justification for 

8 rejecting the Investment Plan, which shall 

9 be forwarded to the applicant; and 

10 ‘‘(ii) may be reconsidered by the Fund 

11 not earlier than 1 year after such date of 

12 return. 

13 ‘‘(h) PROJECT SPONSORSHIP; PUBLIC BENEFIT

14 ANALYSIS; LEGAL COMPLIANCE.— 

15 ‘‘(1) COMPLIANCE WITH APPLICABLE LAWS.— 

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graphs (B) and (C), the Fund shall determine 

18 which requirements under this title or title 23 

19 shall be applicable to projects receiving financial 

20 assistance under this subchapter that would 

21 otherwise be eligible for financial assistance 

22 under such titles. 

23 ‘‘(B) LABOR STANDARDS.— 

24 ‘‘(i) IN GENERAL.—All laborers and 

25 mechanics employed on projects assisted in 


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1 whole or in part by and through the Fund 

2 pursuant to this subchapter shall be paid 

3 wages at rates not less than those pre4 vailing on projects of a character similar in 

5 the locality as determined by the Secretary 

6 of Labor in accordance with subchapter IV 

7 of chapter 31 of title 40. 

8 ‘‘(ii) AUTHORITY; FUNCTIONS.—With 

9 respect to the labor standards specified in 

10 this subparagraph, the Secretary of Labor 

11 shall have the authority and functions set 

12 forth in Reorganization Plan Numbered 14 

13 of 1950 (64 Stat. 1267; 5 U.S.C. App.) 

14 and section 3145 of title 40, United States 

15 Code. 

16 ‘‘(iii) REQUIREMENTS.—Projects 

17 funded directly by or assisted in whole or 

18 in part by and through the Fund pursuant 

19 to this subchapter shall be subject to the 

20 requirements of section 5333(b) of title 49, 

21 United States Code. 

22 ‘‘(C) PLANNING AND ENVIRONMENTAL

23 LAWS.—A project that receives financial assist24 ance under this subchapter shall comply with— 


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1 ‘‘(i) the applicable planning and pro2 gramming requirements under section 134 

3 and 135 of title 23; and 

4 ‘‘(ii) all applicable environmental laws 

5 and requirements, including the National 

6 Environmental Policy Act of 1969 (42 

7 U.S.C. 4321 et seq.) and the National His8 toric Preservation Act of 1966 (16 U.S.C. 

9 470 et seq.). 

10 ‘‘(2) LEAD AGENCY.— 

11 ‘‘(A) IN GENERAL.—The Department of 

12 Transportation shall be the Federal lead agency 

13 in the environmental review process for a 

14 project that receives financial assistance under 

15 this subchapter. Subject to subparagraphs (B) 

16 through (D), the Secretary of Transportation 

17 may delegate this responsibility to an operating 

18 administration. 

19 ‘‘(B) JOINT LEAD FEDERAL AGENCY.— 

20 Nothing in this paragraph precludes another 

21 Federal agency from being a joint lead agency 

22 in accordance with the regulations adopted by 

23 the President’s Council on Environmental Qual24 ity. 


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1 ‘‘(C) JOINT LEAD STATE AGENCY.—A non2 Federal government entity, agency, or instru3 mentality receiving funds under this subchapter 

4 may— 

5 ‘‘(i) serve as a joint lead agency with 

6 the Department of Transportation under 

7 the National Environmental Policy Act of 

8 1969 (42 U.S.C. 4321 et seq.); and 

9 ‘‘(ii) at the discretion of the lead Fed10 eral agency, prepare any environmental 

11 document required in support of the 

12 project if the lead Federal agency— 

13 ‘‘(I) furnishes guidance in such 

14 preparation; and 

15 ‘‘(II) independently evaluates, ap16 proves, and adopts the State or local 

17 government’s environmental docu18 mentation before taking any action on 

19 the project. 

20 ‘‘(D) NONGOVERNMENTAL FUNDING RE21 CIPIENTS.—If a project is undertaken by a non22 governmental entity, the non-Federal govern23 ment entity, agency, or instrumentality cospon24 sor of the project shall— 


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1 ‘‘(i) serve as a joint lead agency with 

2 the Department of Transportation; and 

3 ‘‘(i) have the authority to prepare the 

4 environmental documents described in sub5 paragraph (C)(ii). 

6 ‘‘(3) DETERMINATION OF APPLICABLE MODAL

7 REQUIREMENTS.—If a project has cross-modal com8 ponents, the Fund may designate the specific re9 quirements that shall apply to the project. 

10 ‘‘(4) USE OF AMERICAN IRON, STEEL, AND

11 MANUFACTURED GOODS.— 

12 ‘‘(A) IN GENERAL.—None of the funds 

13 made available under this subchapter may be 

14 used for a project for the construction, alter15 ation, maintenance, or repair of a public build16 ing or public work unless all of the iron, steel, 

17 and manufactured goods used in the project are 

18 produced in the United States. 

19 ‘‘(B) EXCEPTION.—Subparagraph (A) 

20 shall not apply in any case or category of cases 

21 in which the Secretary finds that— 

22 ‘‘(i) applying subparagraph (A) would 

23 be inconsistent with the public interest; 

24 ‘‘(ii) iron, steel, and the relevant man25 ufactured goods are not produced in the 


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1 United States in sufficient and reasonably 

2 available quantities and of a satisfactory 

3 quality; or 

4 ‘‘(iii) inclusion of iron, steel, and man5 ufactured goods produced in the United 

6 States will increase the cost of the overall 

7 project by more than 25 percent. 

8 ‘‘(C) PUBLICATION OF WAIVERS.—If the 

9 Secretary determines that it is necessary to 

10 waive the application of subparagraph (A) 

11 based on a finding under subparagraph (B), the 

12 head of the department or agency shall publish 

13 in the Federal Register a detailed written jus14 tification as to why the provision is being 

15 waived. 

16 ‘‘(D) INTERNATIONAL AGREEMENTS.— 

17 This paragraph shall be applied in a manner 

18 consistent with United States obligations under 

19 international agreements. 

20 ‘‘(i) INVESTMENT-GRADE RATING REQUIREMENT.— 

21 The Fund shall maintain a portfolio of projects whose av22 erage rating is not less than investment grade. 

23 ‘‘§ 365. Studies and reports 

24 ‘‘(a) ANNUAL FINANCIAL AUDITS.— 


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1 ‘‘(1) IN GENERAL.—The Fund shall be subject 

2 to an annual financial audit by an independent pub3 lic accounting firm selected by the Board to ensure 

4 that its operations meet generally accepted account5 ing principles. 

6 ‘‘(2) DISSEMINATION.—The Fund shall— 

7 ‘‘(A) submit the results of each audit 

8 under paragraph (1) to the Committee on Com9 merce, Science, and Transportation of the Sen10 ate and the Committee on Transportation and 

11 Infrastructure of the House of Representatives; 

12 and 

13 ‘‘(B) post such audit results on the Fund’s 

14 website. 

15 ‘‘(b) COMPTROLLER GENERAL REPORT.— 

16 ‘‘(1) IN GENERAL.—Not later than 5 years 

17 after the date of enactment of the American Infra18 structure Investment Fund Act, the Comptroller 

19 General of the United States shall prepare and sub20 mit to the Committee on Commerce, Science, and 

21 Transportation of the Senate and the Committee on 

22 Transportation and Infrastructure in the House of 

23 Representatives a report that evaluates the oper24 ations of the Fund and assesses the effectiveness of 

25 the Fund at facilitating and financing infrastructure 


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1 projects. The Comptroller General shall provide peri2 odic oversight and monitoring of the Fund as it is 

3 established and report on such oversight, as agreed 

4 to with the appropriate congressional committees. 

5 ‘‘(2) CONTENTS.— 

6 ‘‘(A) IN GENERAL.—The Comptroller Gen7 eral shall review and include in the report under 

8 paragraph (1), at minimum, the following: 

9 ‘‘(i) The type of projects selected and 

10 financing used. 

11 ‘‘(ii) The level of Federal funding pro12 vided to support the Fund and the projects 

13 selected for funding. 

14 ‘‘(iii) The level of private sector funds 

15 that were contributed to specific projects. 

16 ‘‘(iv) The process, criteria, and anal17 ysis used to select projects and how the 

18 process, criteria, and analysis could be im19 proved. 

20 ‘‘(v) The monitoring and evaluation 

21 processes the Fund uses to determine if an 

22 individual project is meeting its objectives. 

23 ‘‘(B) CONSIDERATIONS.—The Government 

24 Accountability Office shall— 


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1 ‘‘(i) analyze current trends in the fi2 nancing infrastructure in the United 

3 States; 

4 ‘‘(ii) identify lessons the analysis 

5 under clause (i) may imply for improve6 ments or modifications to the structure or 

7 operations of the Fund; 

8 ‘‘(iii) analyze the experiences of other 

9 industrialized countries that have devel10 oped alternative forms of financing public 

11 infrastructure; and 

12 ‘‘(iv) identify lessons that the foreign 

13 experiences under clause (iii) may have for 

14 the operations and efficiency of the Fund. 

15 ‘‘(c) BIENNIAL REPORT.— 

16 ‘‘(1) IN GENERAL.—Every 2 years after the 

17 date of the enactment of the American Infrastruc18 ture Investment Fund Act, the Board, in consulta19 tion with the Director of the Office of Management 

20 and Budget and the Fund Advisory Committee— 

21 ‘‘(A) shall prepare a report that— 

22 ‘‘(i) evaluates the Fund’s perform23 ance; and 


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1 ‘‘(ii) includes an assessment of the 

2 Fund as a model for infrastructure invest3 ment; and 

4 ‘‘(B) may include a recommendation in the 

5 report under subparagraph (A) on whether to 

6 extend the Fund’s activities to nontransporta7 tion infrastructure sectors likely to benefit the 

8 United States, including— 

9 ‘‘(i) renewable energy generation; 

10 ‘‘(ii) energy transmission and storage; 

11 ‘‘(iii) energy efficiency; 

12 ‘‘(iv) drinking water and wastewater 

13 systems; 

14 ‘‘(v) telecommunications; and 

15 ‘‘(vi) other infrastructure activities. 

16 ‘‘(2) DISSEMINATION.—The Board shall— 

17 ‘‘(A) submit the report prepared under 

18 paragraph (1) to the Committee on Commerce, 

19 Science, and Transportation of the Senate and 

20 the Committee on Transportation and Infra21 structure of the House of Representatives; and 

22 ‘‘(B) post the report on the Fund’s 

23 website. 

24 ‘‘(d) INVESTMENT PLAN AND DECISIONS.—Not later 

25 than 90 days after the Board’s decision on an Investment 


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1 Plan, the Fund Advisory Committee shall post a report 

2 on the Fund’s website that assesses— 

3 ‘‘(1) the adherence of each funding decision to 

4 the requirements of the Investment Prospectus, Op5 erating Guidance, and this subchapter; 

6 ‘‘(2) the consistency of funded applications with 

7 the primary objective, the secondary objectives, the 

8 Fund strategy, and the requirements under this sub9 chapter; 

10 ‘‘(3) the validity of the qualification certifi11 cation of each funded application; 

12 ‘‘(4) the return on Federal investment likely to 

13 result from each funded Investment Plan; and 

14 ‘‘(5) the return on total investment likely to re15 sult from each funded Investment Plan.’’. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.— 

17 (1) AMOUNTS AUTHORIZED.— 

18 (A) IN GENERAL.—There is authorized to 

19 be appropriated to carry out subchapter IV of 

20 chapter 3 of title 49, United States Code, as 

21 added by subsection (a), $5,000,000,000 for 

22 each of fiscal years 2014 and 2015. 

23 (B) AVAILABILITY OF FUNDS.—Amounts 

24 made available under subparagraph (A) shall 

25 remain available until expended. 


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1 (2) ADMINISTRATIVE EXPENSES.—Of the 

2 amounts appropriated under paragraph (1), the 

3 Fund may expend, to pay the reasonable costs of ad4 ministering such subchapter IV, inclusive of any fees 

5 collected under such subchapter— 

6 (A) not more than $50,000,000 in fiscal 

7 year 2014; and 

8 (B) not more than $51,000,000 in fiscal 

9 year 2015. 

10 SEC. 3. NATIONAL INFRASTRUCTURE INVESTMENT 

11 GRANTS. 

12 (a) ESTABLISHMENT OF PROGRAM.—Chapter 55 of 

13 title 49, United States Code, is amended by adding at the 

14 end the following: 

15 ‘‘SUBCHAPTER III—FINANCIAL ASSISTANCE 

16 ‘‘§ 5581. National infrastructure investment grants 

17 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

18 of Transportation shall establish a competitive grant pro19 gram to provide financial assistance for projects that will 

20 have a significant impact on the Nation, a metropolitan 

21 area, or a region. 

22 ‘‘(b) ELIGIBLE PROJECTS.—An applicant is eligible 

23 for a grant under this section for a project that is part 

24 of, or related to, a transportation improvement, including 

25 projects related to the construction or improvement of— 


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1 ‘‘(1) a passenger or freight rail line; 

2 ‘‘(2) a highway; 

3 ‘‘(3) a bridge; 

4 ‘‘(4) an airport; 

5 ‘‘(5) an air traffic control system; 

6 ‘‘(6) a port or marine facility; 

7 ‘‘(7) an inland waterway; 

8 ‘‘(8) a transmission or distribution pipeline; 

9 ‘‘(9) public transportation facilities or systems; 

10 ‘‘(10) intercity passenger bus or passenger rail 

11 facilities or equipment; 

12 ‘‘(11) freight rail facilities or equipment; or 

13 ‘‘(12) planning, preparation, or design of any 

14 project described in paragraphs (1) through (11). 

15 ‘‘(c) PROJECT SELECTION CRITERIA.—In deter16 mining whether to award a grant to an eligible applicant 

17 under this section, the Secretary shall consider the extent 

18 to which the project— 

19 ‘‘(1) leverages Federal investment by encour20 aging non-Federal contributions to the project, in21 cluding contributions from public-private partner22 ships; 

23 ‘‘(2) improves the mobility of people, goods, and 

24 commodities; 


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1 ‘‘(3) incorporates new and innovative tech2 nologies, including intelligent transportation sys3 tems; 

4 ‘‘(4) improves energy efficiency or reduces 

5 greenhouse gas emissions; 

6 ‘‘(5) helps maintain or protect the environment, 

7 including reducing air and water pollution; 

8 ‘‘(6) reduces congestion; 

9 ‘‘(7) improves the condition of transportation 

10 infrastructure, including bringing it into a state of 

11 good repair; 

12 ‘‘(8) improves safety, including reducing trans13 portation accidents, injuries, and fatalities; 

14 ‘‘(9) demonstrates that the proposed project 

15 cannot be readily and efficiently realized without 

16 Federal support and participation; and 

17 ‘‘(10) enhances national or regional economic 

18 development, growth, and competitiveness. 

19 ‘‘(d) PRIORITY.—The Secretary shall give priority to 

20 projects that have the highest system performance im21 provement relative to their benefit-cost analysis. 

22 ‘‘(e) LETTERS OF INTENT.— 

23 ‘‘(1) IN GENERAL.—The Secretary may issue a 

24 letter of intent to an applicant announcing an inten25 tion to obligate, for a major capital project under 


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1 this subsection, an amount from future available 

2 budget authority specified in law that is not more 

3 than the amount stipulated as the financial partici4 pation of the Secretary in the project. 

5 ‘‘(2) NOTIFICATION.—Not later than 30 days 

6 before issuing a letter under paragraph (1), the Sec7 retary shall submit written notification of the pro8 posed letter or agreement to the Committee on Com9 merce, Science, and Transportation of the Senate 

10 and the Committee on Transportation and Infra11 structure of the House of Representatives, which 

12 shall include— 

13 ‘‘(A) a copy of the proposed letter or 

14 agreement; 

15 ‘‘(B) the criteria used under subsection (c) 

16 for selecting the project for a grant award; and 

17 ‘‘(C) a description of how the project meets 

18 such criteria. 

19 ‘‘(3) COMMITMENT.—An obligation or adminis20 trative commitment may be made only when 

21 amounts are made available. The letter of intent 

22 shall state that the contingent commitment is not an 

23 obligation of the Federal Government, and is subject 

24 to the availability of funds under Federal law and to 


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1 Federal laws in force or enacted after the date of 

2 the contingent commitment. 

3 ‘‘(f) FEDERAL SHARE OF NET PROJECT COST.— 

4 ‘‘(1) IN GENERAL.—The Federal share of a 

5 grant for the project shall not exceed 80 percent of 

6 the project net capital cost. 

7 ‘‘(2) ESTIMATE.—The Secretary shall estimate 

8 the net project cost based on engineering studies, 

9 studies of economic feasibility, and information on 

10 the expected use of equipment or facilities. 

11 ‘‘(3) PRIORITY.—The Secretary shall give pri12 ority in allocating future obligations and contingent 

13 commitments to incur obligations to grant requests 

14 seeking a lower Federal share of the project net cap15 ital cost. 

16 ‘‘(g) COOPERATIVE AGREEMENTS.— 

17 ‘‘(1) IN GENERAL.—An applicant may enter 

18 into an agreement with any public, private, or non19 profit entity to cooperatively implement any project 

20 funded with a grant under this subchapter. 

21 ‘‘(2) FORMS OF PARTICIPATION.—Participation 

22 by an entity under paragraph (1) may consist of— 

23 ‘‘(A) ownership or operation of any land, 

24 facility, vehicle, or other physical asset associ25 ated with the project; 


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1 ‘‘(B) cost-sharing of any project expense or 

2 non-Federal share of the project cost, including 

3 in-kind contributions; 

4 ‘‘(C) carrying out administration, construc5 tion management, project management, project 

6 operation, or any other management or oper7 ational duty associated with the project; and 

8 ‘‘(D) any other form of participation ap9 proved by the Secretary. 

10 ‘‘(h) OVERSIGHT PROGRAM.— 

11 ‘‘(1) ESTABLISHMENT.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall 

13 establish an oversight program to monitor the 

14 effective and efficient use of funds authorized to 

15 carry out this section. 

16 ‘‘(B) MINIMUM REQUIREMENT.—At a min17 imum, the program shall be responsive to all 

18 areas relating to financial integrity and project 

19 delivery. 

20 ‘‘(2) FINANCIAL INTEGRITY.— 

21 ‘‘(A) FINANCIAL MANAGEMENT SYS22 TEMS.—The Secretary shall perform annual re23 views that address elements of the applicant’s 

24 financial management systems that affect 

25 projects approved under subsection (a). 


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1 ‘‘(B) PROJECT COSTS.—The Secretary 

2 shall develop minimum standards for estimating 

3 project costs and shall periodically evaluate the 

4 practices of applicants for estimating project 

5 costs, awarding contracts, and reducing project 

6 costs. 

7 ‘‘(3) PROJECT DELIVERY.—The Secretary shall 

8 perform annual reviews that address elements of the 

9 project delivery system of an applicant, which ele10 ments include one or more activities that are in11 volved in the life cycle of a project from conception 

12 to completion of the project. 

13 ‘‘(4) RESPONSIBILITY OF THE APPLICANTS.— 

14 ‘‘(A) IN GENERAL.—Each applicant shall 

15 submit to the Secretary for approval such 

16 plans, specifications, and estimates for each 

17 proposed project as the Secretary may require. 

18 ‘‘(B) APPLICANT SUBRECIPIENTS.—The 

19 applicant shall be responsible for determining 

20 that a subrecipient of Federal funds under this 

21 section has— 

22 ‘‘(i) adequate project delivery systems 

23 for projects approved under this section; 

24 and 


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1 ‘‘(ii) sufficient accounting controls to 

2 properly manage such Federal funds. 

3 ‘‘(C) PERIODIC REVIEW.—The Secretary 

4 shall periodically review the monitoring of sub5 recipients by the applicant. 

6 ‘‘(5) SPECIFIC OVERSIGHT RESPONSIBIL7 ITIES.—Nothing in this section shall affect or dis8 charge any oversight responsibility of the Secretary 

9 specifically provided for under this title or other 

10 Federal law. 

11 ‘‘(i) MAJOR PROJECTS.— 

12 ‘‘(1) IN GENERAL.—A recipient of a grant for 

13 a project under this section with an estimated total 

14 cost of $500,000,000 or more, and a recipient for 

15 such other projects as may be identified by the Sec16 retary, shall submit to the Secretary for each 

17 project— 

18 ‘‘(A) a project management plan; and 

19 ‘‘(B) an annual financial plan. 

20 ‘‘(2) PROJECT MANAGEMENT PLAN.—A project 

21 management plan shall document— 

22 ‘‘(A) the procedures and processes that are 

23 in effect to provide timely information to the 

24 project decision makers to effectively manage 

25 the scope, costs, schedules, and quality of, and 


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1 the Federal requirements applicable to, the 

2 project; and 

3 ‘‘(B) the role of the agency leadership and 

4 management team in the delivery of the project. 

5 ‘‘(3) FINANCIAL PLAN.—A financial plan 

6 shall— 

7 ‘‘(A) be based on detailed estimates of the 

8 cost to complete the project; and 

9 ‘‘(B) provide for the annual submission of 

10 updates to the Secretary that are based on rea11 sonable assumptions, as determined by the Sec12 retary, of future increases in the cost to com13 plete the project. 

14 ‘‘(j) OTHER PROJECTS.—A recipient of Federal fi15 nancial assistance for a project under this section with an 

16 estimated total cost of $100,000,000 or more that is not 

17 covered by subsection (i) shall prepare an annual financial 

18 plan. Annual financial plans prepared under this sub19 section shall be made available to the Secretary for review 

20 upon the request of the Secretary. 

21 ‘‘(k) OTHER TERMS AND CONDITIONS.—The Sec22 retary shall determine what additional grant terms and 

23 conditions are necessary and appropriate to meet the re24 quirements of this section. 


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1 ‘‘(l) REGULATIONS.—Not later than 1 year after the 

2 date of enactment of the American Infrastructure Invest3 ment Fund Act, the Secretary shall prescribe regulations 

4 to implement this section. 

5 ‘‘(m) APPLICANT DEFINED.—In this subchapter, the 

6 term ‘applicant’ includes a State, a political subdivision 

7 of a State, government-sponsored authorities and corpora8 tions, and the District of Columbia. 

9 ‘‘(n) SECRETARIAL OVERSIGHT.— 

10 ‘‘(1) CONSTRUCTION MANAGEMENT CON11 TRACTS.—The Secretary may use not more than 1 

12 percent of amounts made available in a fiscal year 

13 for capital projects under this subchapter to enter 

14 into contracts to oversee the construction of such 

15 projects. 

16 ‘‘(2) COMPLIANCE REVIEWS.—The Secretary 

17 may use amounts available under paragraph (1) to 

18 make contracts for safety, procurement, manage19 ment, and financial compliance reviews and audits of 

20 a recipient of amounts under paragraph (1). 

21 ‘‘(3) FEDERAL COSTS.—The Federal Govern22 ment shall pay the entire cost of carrying out a con23 tract under this subsection. 

24 ‘‘(o) COMPLIANCE WITH APPLICABLE LAWS.— 


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1 ‘‘(1) LABOR STANDARDS.—The provisions of 

2 subchapter IV of chapter 31 of title 40, shall apply 

3 to funds made available under this subchapter. 

4 ‘‘(2) PLANNING AND ENVIRONMENTAL LAWS.— 

5 A project that receives financial assistance under 

6 this subchapter shall comply with— 

7 ‘‘(A) the applicable planning and program8 ming requirements under sections 134 and 135 

9 of title 23; and 

10 ‘‘(B) all applicable environmental laws and 

11 requirements, including the National Environ12 mental Policy Act of 1969 (42 U.S.C. 4321 et 

13 seq.) and the National Historic Preservation 

14 Act of 1966 (16 U.S.C. 470 et seq.). 

15 ‘‘(p) USER OF AMERICAN IRON, STEEL, AND MANU16 FACTURED GOODS.— 

17 ‘‘(1) IN GENERAL.—None of the funds made 

18 available under this subchapter may be used for a 

19 project for the construction, alteration, maintenance, 

20 or repair of a public building or public work unless 

21 all of the iron, steel, and manufactured goods used 

22 in the project are produced in the United States. 

23 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

24 apply in any case or category of cases in which the 

25 Secretary finds that— 


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1 ‘‘(A) applying paragraph (1) would be in2 consistent with the public interest; 

3 ‘‘(B) iron, steel, and the relevant manufac4 tured goods are not produced in the United 

5 States in sufficient and reasonably available 

6 quantities and of a satisfactory quality; or 

7 ‘‘(C) inclusion of iron, steel, and manufac8 tured goods produced in the United States will 

9 increase the cost of the overall project by more 

10 than 25 percent. 

11 ‘‘(3) PUBLICATION OF WAIVERS.—If the Sec12 retary determines that it is necessary to waive the 

13 application of paragraph (1) based on a finding 

14 under paragraph (2), the head of the department or 

15 agency shall publish in the Federal Register a de16 tailed written justification as to why the provision is 

17 being waived. 

18 ‘‘(4) INTERNATIONAL AGREEMENTS.—This sub19 section shall be applied in a manner consistent with 

20 United States obligations under international agree21 ments. 

22 ‘‘(q) PERFORMANCE EVALUATION.— 

23 ‘‘(1) ANNUAL REPORTS.— 

24 ‘‘(A) IN GENERAL.—The Comptroller Gen25 eral of the United States shall conduct an anVerDate Mar 15 2010 02:16 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\S387.IS S387

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1 nual assessment to evaluate the overall per2 formance of grants made under the program es3 tablished under subsection (a). 

4 ‘‘(B) DISSEMINATION.—The Comptroller 

5 General shall submit a report containing the re6 sults of the evaluation under subparagraph (A) 

7 to the Committee on Commerce, Science, and 

8 Transportation of the Senate and the Com9 mittee on Transportation and Infrastructure of 

10 the House of Representatives. 

11 ‘‘(2) BIANNUAL REPORT.—Not later than 1 

12 year after the date of enactment of the American In13 frastructure Investment Fund Act, and every 6 

14 months thereafter, the Secretary of Transportation 

15 shall submit a report to the congressional commit16 tees set forth in paragraph (1)(B) that documents— 

17 ‘‘(A) the number of applications received 

18 under this section; 

19 ‘‘(B) the status of such applications; 

20 ‘‘(C) the outcome of application evalua21 tions; and 

22 ‘‘(D) the status of grants awarded under 

23 the program established under subsection (a). 

24 ‘‘(r) AUTHORIZATION OF APPROPRIATIONS.—There 

25 is authorized to be appropriated to the Secretary 


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1 $600,000,000 for each of fiscal years 2014 and 2015 to 

2 carry out this section.’’. 

3 (b) CONFORMING AMENDMENT.—The table of sec4 tions for chapter 55 of title 49, United States Code, is 

5 amended by adding at the end the following: 

‘‘SUBCHAPTER III—FINANCIAL ASSISTANCE

‘‘5581. National infrastructure investment grants.’’. 

Æ 


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