I 
110TH CONGRESS 
1ST SESSION H. R. 3401 
To establish the National Infrastructure Bank to provide funding for qualified 
infrastructure projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 3, 2007 
Mr. ELLISON (for himself and Mr. FRANK of Massachusetts) introduced the 
following bill; which was referred to the Committee on Transportation 
and Infrastructure, and in addition to the Committee on Financial Serv-
ices, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To establish the National Infrastructure Bank to provide 
funding for qualified infrastructure projects, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘National Infrastructure Bank Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
Sec. 2. Findings. 
Sec. 3. Definitions. 
Sec. 4. Authorization of appropriations. 
TITLE I—NATIONAL INFRASTRUCTURE BANK 
Sec. 101. Establishment of Bank. 
Sec. 102. Management of Bank. 
Sec. 103. Staff and personnel matters. 
TITLE II—POWERS AND DUTIES OF THE BANK 
Sec. 201. Powers of the Bank Board. 
Sec. 202. Qualified infrastructure project ratings. 
Sec. 203. Development of financing package. 
Sec. 204. Coupon notes for holders of infrastructure bonds. 
Sec. 205. Exemption from local taxation. 
TITLE III—STUDIES AND REPORTS 
Sec. 301. Report; database. 
Sec. 302. Study and report on infrastructure financing mechanisms. 
Sec. 303. GAO report. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) according to the American Society of Civil 
Engineers, the current condition of the infrastruc-
ture of the United States earns a grade point aver-
age of D and jeopardizes the prosperity and quality 
of life of the citizens of the United States; 
(2) according to the Federal Transit Adminis-
tration— 
(A) approximately $15,800,000,000 must 
be expended each year for a period of not less 
than 20 years to maintain the operational ca-
pacity of the transit systems of the United 
States; and 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(B) approximately $21,800,000,000 must 
be expended each year for a period of not less 
than 20 years to improve the operational capac-
ity of the transit systems of the United States 
to meet the growing demands of passengers in 
a safe and adequate manner; 
(3) according to the Millennial Housing Com-
mission, there remains a critical shortage of afford-
able public housing for extreme low-income individ-
uals; 
(4) there are over 1,200,000 units of public 
housing nationwide, with an accumulated capital 
needs backlog of approximately $18,000,000,000, 
with an additional $2,000,000,000 accruing each 
year; 
(5) according to the Federal Highway Adminis-
tration— 
(A) 33 percent of all urban and rural 
roads in the United States are in poor, medi-
ocre, or fair condition; 
(B) approximately $131,700,000,000 must 
be expended each year for a period of not less 
than 20 years to improve the conditions of 
those urban and rural roads; 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(C) 27.1 percent of all bridges in the 
United States are— 
(i) structurally deficient; or 
(ii) functionally obsolete; and 
(D) approximately $9,400,000,000 must 
be expended each year for a period of not less 
than 20 years to eliminate the deficiencies of 
those bridges; 
(6) according to the Environmental Protection 
Agency— 
(A) $151,000,000,000 must be expended 
during the next 20 years to make necessary re-
pairs, replacements, and upgrades to the ap-
proximately 55,000 community drinking water 
systems of the United States; and 
(B) approximately $390,000,000,000 must 
be expended during the next 20 years to elimi-
nate the deficiencies of the wastewater systems 
of the United States; 
(7) the infrastructure financing mechanisms of 
the United States do not adequately— 
(A) address infrastructure projects of re-
gional or national significance; 
(B) encourage an appropriate pooling of 
Federal, State, local, and private resources; or 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(C) provide transparency to ensure the op-
timal return on public resources; 
(8) there are no Federal financing notes, cred-
its, or bonds which allow investors to fund only in-
frastructure projects; 
(9) there is a need to involve pension funds and 
other private investors who want to invest in infra-
structure, but to whom tax credits have no value; 
and 
(10) there are no federally guaranteed invest-
ment notes of greater than 30 years in duration, 
whereas many federally funded assets are of dura-
tions much longer than 30 years. 
SEC. 3. DEFINITIONS. 
In this Act, the following definitions shall apply: 
(1) BANK.—The term ‘‘Bank’’ means the ‘‘Na-
tional Infrastructure Bank’’ established under sec-
tion 101. 
(2) BOARD.—The term ‘‘Board’’ means the 
board of directors of the Bank, established under 
section 102. 
(3) CHAIRPERSON; VICE
CHAIRPERSON.—The 
terms ‘‘Chairperson’’ and ‘‘Vice Chairperson’’ mean 
the Chairperson and Vice Chairperson of the Board, 
respectively. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(4) FINANCING MECHANISM.— 
(A) IN
GENERAL.—The term ‘‘financing 
mechanism’’ means a method used by the Bank 
to pledge the full faith and credit of the United 
States to provide money, credit, or other capital 
to a qualified infrastructure project. 
(B) INCLUSIONS.—The term ‘‘financing 
mechanism’’ includes— 
(i) a direct subsidy; 
(ii) a general purpose infrastructure 
bond; and 
(iii) a project-based infrastructure 
bond. 
(5) FINANCING PACKAGE.—The term ‘‘financ-
ing package’’ means 1 or more financing mecha-
nisms used by the Bank to meet the Federal com-
mitment for a qualified infrastructure project. 
(6) 
GENERAL
PURPOSE
INFRASTRUCTURE 
BOND.—The term ‘‘general purpose infrastructure 
bond’’ means a bond issued as part of an issue in 
accordance with this Act, if— 
(A) the net spendable proceeds from the 
sale of the issue may be used for expenditures 
incurred after the date of issuance with respect 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
to any qualified infrastructure project or pur-
pose, subject to the rules of the Bank; 
(B) the bond is issued by the Bank, is in 
registered form, and meets the requirements of 
this Act and otherwise applicable law; 
(C) the term of each bond which is part of 
the issue is greater than 30 years; and 
(D) the payment of principal with respect 
to the bond is the obligation of the Bank. 
(7) INFRASTRUCTURE PROJECT.— 
(A) IN GENERAL.—The term ‘‘infrastruc-
ture project’’ means the building, improvement, 
or increase in capacity of a basic installation, 
facility, asset, or stock that is associated with— 
(i) a mass transit system that meets 
the criteria in subparagraph (B); 
(ii) a public housing property that is 
eligible to receive funding under section 24 
of the United States Housing Act of 1937 
(42 U.S.C. 1437v) and that meets the cri-
teria in subparagraph (B); 
(iii) a road or bridge that meets the 
criteria in subparagraph (B); or 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(C) the term of each bond which is part of 
the issue is equal to the useful life of the quali-
fied infrastructure project funded through use 
of the bond; and 
(D) the payment of principal with respect 
to the bond is the obligation of the Bank. 
(9) PUBLIC
HOUSING
AGENCY.—The term 
‘‘public housing agency’’ means an agency described 
in section 3(b)(6) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b)(6)). 
(10) PUBLIC
SPONSOR.—The term ‘‘public 
sponsor’’ includes a State or local government, an 
Indian tribe (as defined in section 4 of the Indian 
Self-Determination and Education Assistance Act 
(25 U.S.C. 450b), a public transit agency, public 
housing agency, a public infrastructure agency, or a 
consortium of those entities, including a public enti-
ty that has partnered with a private nonprofit or 
for-profit entity. 
(11) QUALIFIED INFRASTRUCTURE PROJECT.— 
The term ‘‘qualified infrastructure project’’ means 
an infrastructure project designated by the Board as 
a qualified infrastructure project in accordance with 
section 202. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 
Until such time as the Bank has received funds from 
the issuance of bonds sufficient to carry out this Act and 
the administration of the Bank, there are authorized to 
be appropriated to the Bank, such sums as may be nec-
essary for such purposes, to remain available until ex-
pended. 
TITLE I—NATIONAL 
INFRASTRUCTURE BANK 
SEC. 101. ESTABLISHMENT OF BANK. 
There is established the ‘‘National Infrastructure 
Bank’’, which shall be an independent establishment of the 
Federal Government, as defined in section 104 of title 5, 
United States Code. 
SEC. 102. MANAGEMENT OF BANK. 
(a) BOARD OF DIRECTORS.— 
(1) IN
GENERAL.—The management of the 
Bank shall be vested in a Board of Directors con-
sisting of 5 members, appointed by the President, by 
and with the advice and consent of the Senate, from 
among individuals who are citizens of the United 
States. 
(2) MEMBER EXPERTISE.—Not fewer than 1 
member of the Board shall have demonstrated exper-
tise in— 
(A) transit infrastructure; 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(B) public housing infrastructure; 
(C) road and bridge infrastructure; 
(D) water infrastructure; or 
(E) public finance. 
(3) POLITICAL AFFILIATION.—Section 2(a)(2) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1812(a)(2) shall apply to members of the Board of 
Directors of the Bank in the same manner as it ap-
plies to the Board of Directors of the Federal De-
posit Insurance Corporation. 
(4) MEETINGS.—The Board shall meet not 
later than 90 days after the date on which all direc-
tors of the Board are first appointed, and otherwise 
at the call of the Chairperson. 
(5) DATE
OF
APPOINTMENTS.—The initial 
nominations to the Board shall be made not later 
than 60 days after the date of enactment of this 
Act. 
(b) CHAIRPERSON AND VICE CHAIRPERSON.—The 
Chairperson and Vice Chairperson of the Board shall be 
appointed and shall serve in the same manner as is pro-
vided for members of the Federal Deposit Insurance Cor-
poration under section 2(b) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1812(b)). 
(c) TERMS.— 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(1) APPOINTED MEMBERS.—Except as provided 
in paragraph (2), each member of the Board shall 
be appointed for a term of 6 years. 
(2) INITIAL STAGGERED TERMS.—Of the initial 
members of the Board— 
(A) the Chairperson and Vice Chairperson 
shall be appointed for a term of 6 years; 
(B) 1 member shall be appointed for a 
term of 5 years; 
(C) 1 member shall be appointed for a 
term of 4 years; and 
(D) 1 member shall be appointed for a 
term of 3 years. 
(3) INTERIM APPOINTMENTS.—Any member of 
the Board appointed to fill a vacancy occurring be-
fore the expiration of the term for which the prede-
cessor of such member was appointed shall be ap-
pointed only for the remainder of such term. 
(4) CONTINUATION OF SERVICE.—The Chair-
person, Vice Chairperson, and each other member of 
the Board may continue to serve after the expiration 
of the term of office to which such member was ap-
pointed, until a successor has been appointed. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(d) VACANCY.—Any vacancy on the Board shall be 
filled in the manner in which the original appointment was 
made. 
(e) INELIGIBILITY FOR OTHER OFFICES.— 
(1) RESTRICTION DURING SERVICE.—No mem-
ber of the Board may, during service on the 
Board— 
(A) be an officer or director of, or other-
wise be employed by, any entity engaged in or 
otherwise associated with an infrastructure 
project assisted or considered under this Act; 
(B) hold stock in any such entity; or 
(C) hold any other elected or appointed 
public office. 
(2) POST SERVICE RESTRICTION.— 
(A) IN
GENERAL.—No member of the 
Board may hold any office, position, or employ-
ment in any entity engaged in or otherwise as-
sociated with an infrastructure project assisted 
under this Act during the 2-year period begin-
ning on the date on which such member ceases 
to serve on the Board. 
(B) EXCEPTION
FOR
MEMBERS
WHO 
SERVE FULL TERM.—The limitation contained 
in subparagraph (A) does not apply to any 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
member who has ceased to serve on the Board 
after serving the full term for which such mem-
ber was appointed. 
(3) CERTIFICATION.—Upon taking office, each 
member of the Board shall certify under oath that 
such member has complied with this subsection, and 
such certification shall be filed with the secretary of 
the Board. 
SEC. 103. STAFF AND PERSONNEL MATTERS. 
(a) EXECUTIVE DIRECTOR.— 
(1) IN GENERAL.—The Chairperson may ap-
point and terminate, and fix the compensation of, an 
executive director of the Bank, in accordance with 
title 5, United States Code. 
(2) CONFIRMATION
OF
EXECUTIVE
DIREC-
TOR.—The employment of an executive director shall 
be subject to confirmation by the Board. 
(3) QUALIFICATIONS
OF
EXECUTIVE
DIREC-
TOR.—An individual appointed as the executive di-
rector under paragraph (1) shall have demonstrated 
expertise in— 
(A) transit infrastructure; 
(B) public housing infrastructure; 
(C) road and bridge infrastructure; 
(D) water infrastructure; or 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(E) public finance. 
(b) OTHER PERSONNEL.—The Board may appoint 
and terminate, and fix the compensation of, in accordance 
with title 5, United States Code, such personnel as are 
necessary to enable the Bank to perform the duties of the 
Bank. 
(c) INSPECTOR GENERAL.— 
(1) IN GENERAL.—Section 11 of the Inspector 
General Act of 1978 (5 U.S.C. App.) is amended— 
(A) in paragraph (1), by inserting ‘‘the 
Chairperson of the National Infrastructure 
Bank;’’ after ‘‘the Chairperson of the Federal 
Deposit Insurance Corporation;’’; and 
(B) in paragraph (2), by inserting ‘‘the 
National Infrastructure Bank;’’ after ‘‘the Fed-
eral Deposit Insurance Corporation;’’. 
(2) EXECUTIVE SCHEDULE LEVEL IV.—Section 
5315 of title 5, United States Code, is amended by 
inserting after the item relating to the Inspector 
General of the Federal Deposit Insurance Corpora-
tion, the following: 
‘‘Inspector General, National Infrastructure 
Bank.’’. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(3) NONCOMPLIANCE.—Any failure to obey the 
order of the court may be punished by the court as 
a contempt of court. 
(c) WITNESS ALLOWANCES AND FEES.— 
(1) IN
GENERAL.—Section 1821 of title 28, 
United States Code, shall apply to a witness re-
quested or subpoenaed to appear at a hearing of the 
Board. 
(2) EXPENSES.—The per diem and mileage al-
lowances for a witness shall be paid from funds 
available to pay the expenses of the Board. 
(d) INFORMATION FROM FEDERAL AGENCIES.—The 
Board may, upon request, secure directly from a Federal 
agency, such information as the Board considers necessary 
to carry out this Act, and the head of such agency shall 
promptly respond to any such request for the provision 
of information. 
(e) INCORPORATION OF FEDERAL TRANSIT PROC-
ESSES FOR BOARD STATEMENTS.—Section 5334(l) of title 
49, United States Code, as added by section 3032 of the 
Federal Public Transportation Act of 2005 (Public Law 
109–59, 119 Stat. 1627), shall apply to statements of the 
Board in the same manner and to the same extent as that 
section applies to statements of the Administrator of the 
Federal Transit Administration. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
SEC. 202. QUALIFIED INFRASTRUCTURE PROJECT RAT-
INGS. 
(a) IN GENERAL.—The Bank shall, upon application 
and otherwise in accordance with this section, designate 
infrastructure projects as qualified projects for purposes 
of assistance under this Act. 
(b) APPLICANTS.—The Bank shall accept applica-
tions for the designation of qualified infrastructure 
projects under this section from among public sponsors, 
for any infrastructure project having— 
(1) a potential Federal commitment of an 
amount that is not less than $75,000,000; 
(2) a public sponsor; and 
(3) regional or national significance. 
(c) GUIDELINES FOR DEVELOPING PROJECTS.—The 
Secretary shall establish guidelines to assist grant recipi-
ents under this title to develop applications for funding 
under this section. The guidelines shall include the objec-
tives listed in paragraphs (2) and (3) of section 105(e) 
of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(e)). 
(d) RATINGS.—In making a determination as to a 
designation of a qualified infrastructure project, the Board 
shall evaluate and rate each applicant based on the factors 
appropriate for that type of infrastructure project, which 
shall include— 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(1) for any transit project— 
(A) regional or national significance; 
(B) promotion of economic growth; 
(C) reduction in traffic congestion; 
(D) environmental benefits, including re-
duction in pollution from reduced use of auto-
mobiles from direct trip reduction and indirect 
trip reduction through land use and density 
changes; 
(E) urban land use policies, including 
those that promote smart growth; and 
(F) mobility improvements; 
(2) for any public housing project— 
(A) regional or national significance; 
(B) promotion of economic growth; 
(C) improvement of the physical shape and 
layout of public housing; 
(D) environmental improvement; 
(E) urban land use policies, including 
those that promote smart growth; 
(F) reduction of poverty concentration; 
(G) mobility improvements for residents; 
and 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(H) establishment of positive incentives for 
resident 
self-sufficiency 
and 
comprehensive 
services that empower residents; 
(3) for any highway, bridge, or road project— 
(A) regional or national significance; 
(B) promotion of economic growth; 
(C) reduction in traffic congestion; 
(D) environmental improvement; 
(E) urban land use policies, including 
those that promote smart growth; and 
(F) mobility improvements; and 
(4) for any water project— 
(A) regional or national significance; 
(B) promotion of economic growth; 
(C) health benefits from the associated 
projects, including health care cost reduction 
due to removal of pollutants; and 
(D) environmental benefits. 
(e) DETERMINATION AMONG PROJECTS
OF DIF-
FERENT INFRASTRUCTURE TYPES.—The Bank shall es-
tablish, by rule, comprehensive criteria for allocating 
qualified status among different types of infrastructure 
projects for purposes of this Act— 
(1) including— 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(A) a full view of the project benefits, as 
compared to project costs; 
(B) a preference for projects that have na-
tional or substantial regional impact; 
(C) a preference for projects which lever-
age private financing, including public-private 
partnerships, for either the explicit cost of the 
project or for enhancements which increase the 
benefits of the project; 
(D) an understanding of the importance of 
balanced investment in various types of infra-
structure, as emphasized in the current alloca-
tion of Federal resources between modes; and 
(E) an understanding of the importance of 
diverse investment in infrastructure in all re-
gions of the country; and 
(2) that do not eliminate any project based on 
size, but rather allow for selection of the projects 
that are most meritorious. 
(f) PROCESS AND PERSONNEL FOR CREATING RAT-
INGS PROCESS.— 
(1) IN
GENERAL.—The ratings processes de-
scribed in this section shall be subject to Federal no-
tice and rulemaking procedures. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(2) PARTICIPATION
BY
OTHER
AGENCY
PER-
SONNEL.—The ratings, and development of the rat-
ings process, shall be conducted by personnel on de-
tail to the Bank from the Department of Transpor-
tation, the Department of Housing and Urban De-
velopment, the United States Army Corps of Engi-
neers, and other relevant departments and agencies 
from among individuals who are familiar with and 
experienced in the selection criteria for competitive 
projects. The Bank shall reimburse those depart-
ments and agencies for the staff which are on detail 
to the Bank. 
(g) COMPLIANCE WITH OTHER APPLICABLE LAW.— 
Projects receiving financial assistance from the Bank 
under this section shall comply with applicable provisions 
of Federal law and regulations, including— 
(1) for transit, requirements that would apply 
to a project receiving funding under section 5307 of 
title 49, United States Code; 
(2) for public housing, requirements that would 
apply to a project receiving funding from a grant 
under section 24 of the United States Housing Act 
of 1937 (42 U.S.C. 1437v); 
(3) for roads and bridges, requirements that 
would apply to a project that receives funds appor-
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
tioned under section 104(b)(3) of title 23, United 
States Code; and 
(4) for water, requirements that would apply to 
a project that receives funds through a grant or loan 
under— 
(A) section 103 of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 
5303); 
(B) section 1452 of the Public Health 
Service Act (42 U.S.C. 300j–12); or 
(C) section 601 of the Federal Water Pol-
lution Control Act (33 U.S.C. 1381), as that 
section applied before the beginning of fiscal 
year 1995. 
(h) AUTHORITY
TO DETERMINE FUNDING.—Not-
withstanding any other provision of law, the Bank shall 
determine the appropriate Federal share of funds for each 
project described in subsection (g) for purposes of this 
Act. 
SEC. 203. DEVELOPMENT OF FINANCING PACKAGE. 
(a) IN GENERAL.—Not later than 60 days after the 
date on which the Board determines appropriate financing 
packages for qualified infrastructure projects under sec-
tion 202, the Board shall notify the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(b) FINANCING PACKAGES.—The Board is author-
ized— 
(1) to act as a centralized entity to provide fi-
nancing for qualified infrastructure projects; 
(2) to issue general purpose infrastructure 
bonds, and to provide direct subsidies to qualified in-
frastructure projects from amounts made available 
from the issuance of such bonds; 
(3) to issue project-based infrastructure bonds 
for the financing of specific qualified infrastructure 
projects; 
(4) to provide loan guarantees to State or local 
governments issuing debt to finance qualified infra-
structure projects, under rules prescribed by the 
Board, in a manner similar to that described in 
chapter 6 of title 23, United States Code; 
(5) to issue loans, at varying interest rates, in-
cluding very low interest rates, to qualified project 
sponsors for qualified projects; 
(6) to leverage resources and stimulate public 
and private investment in infrastructure; and 
(7) to encourage States to create additional op-
portunities for the financing of infrastructure 
projects. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(c) GENERAL
PURPOSE
AND
INFRASTRUCTURE 
BONDS.—General purpose and project-based infrastruc-
ture bonds issued by the Bank under this Act shall be 
subject to such terms and limitations as may be estab-
lished by rules of the Bank, in consultation with the Sec-
retary of the Treasury. 
(d) BOND OBLIGATION LIMIT.—The aggregate out-
standing amount of all bonds authorized to be issued 
under this Act may not exceed $60,000,000,000. 
(e) FULL
FAITH
AND
CREDIT.—Any obligation 
issued by the Bank under this Act shall be an obligation 
supported by the full faith and credit of the United States. 
(f) 
LIMITATION
ON
FUNDS
FROM
BOND 
ISSUANCE.—Not more than 1 percent of funds resulting 
from the issuance of bonds under this Act may be used 
to fund the operations of the Bank. 
SEC. 204. COUPON NOTES FOR HOLDERS OF INFRASTRUC-
TURE BONDS. 
(a) ISSUANCE OF COUPON NOTES.—Under regula-
tions prescribed by the Bank, in consultation with the Sec-
retary of the Treasury, there may be a separation (includ-
ing at issuance) of the ownership of an infrastructure 
bond and the entitlement to the interest with respect to 
such bond (in this section referred to as a ‘‘coupon note’’). 
In case of any such separation, such interest shall be al-
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
lowed to the person who on the payment date holds the 
instrument evidencing the entitlement to the interest, and 
not to the holder of the bond. 
(b) REDEMPTION OF COUPON NOTES.—A coupon 
note may be used by the owner thereof for the purpose 
of making any payment to the Federal Government, and 
shall be accepted for such purpose by the Secretary of the 
Treasury, subject to rules issued by the Bank, in consulta-
tion with the Secretary of the Treasury. 
SEC. 205. EXEMPTION FROM LOCAL TAXATION. 
Bonds and other obligations issued by the Bank, and 
the interest on or credits with respect to its bonds or other 
obligations, shall not be subject to taxation by any State, 
county, municipality, or local taxing authority. 
TITLE III—STUDIES AND 
REPORTS 
SEC. 301. REPORT; DATABASE. 
(a) REPORT.—Not later than 1 year after the date 
of enactment of this Act, and annually thereafter, the 
Board shall submit to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate a report describing 
the activities of the Board, for the fiscal year covered by 
the report, relating to— 
(1) the evaluations of qualified infrastructure 
projects under section 202; and 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
(b) REQUIREMENTS.—A study conducted under sub-
section (a) shall— 
(1) evaluate the economic efficacy and trans-
parency of each financing mechanism used by— 
(A) the Bank to fund qualified infrastruc-
ture projects; and 
(B) each agency and department of the 
Federal Government to support infrastructure 
systems, including— 
(i) infrastructure formula funding; 
(ii) user fees; and 
(iii) modal taxes; and 
(2) contain recommendations for improving 
each funding mechanism evaluated under subpara-
graphs (A) and (B) of paragraph (1) to increase the 
economic efficacy and transparency of the Bank, and 
each agency and department of the Federal Govern-
ment, to finance infrastructure projects in the 
United States. 
(c) REPORT.—Not later than 30 days after the date 
on which the Board completes the study conducted under 
subsection (a), the Board shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate, 
a report containing each evaluation and recommendation 
contained in the study. 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS
SEC. 303. GAO REPORT. 
Not later than 5 years after the date of enactment 
of this Act, the Comptroller General of the United States 
shall submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate, a report evaluating the ac-
tivities of the Bank for the fiscal years covered by the re-
port, including— 
(1) the evaluations of qualified infrastructure 
projects under section 202; and 
(2) the financing packages of qualified infra-
structure projects under section 203. 
Æ 
VerDate Aug 31 2005 
23:19 Aug 07, 2007
Jkt 059200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6301
E:\BILLS\H3401.IH
H3401
rwilkins on PROD1PC63 with BILLS