I 
108TH CONGRESS 
1ST SESSION H. R. 1844
To establish State revolving funds for school construction. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 29, 2003
Mr. ANDREWS introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To establish State revolving funds for school construction.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘State Revolving Funds 
for Schools Act’’. 
SEC. 2. STATE REVOLVING FUND PILOT PROGRAM. 
(a) ESTABLISHMENT.—
(1) COOPERATIVE
AGREEMENTS.—Subject to 
the provisions of this section, the Secretary of Edu-
cation may enter into cooperative agreements with 
States for the establishment of State revolving funds 
and multistate revolving funds for making loans to
(2) identify an operating entity of the State as 
recipient of the grant if the entity has the capacity 
to manage loan funds; 
(3) allow such funds to be used as reserve for 
debt issued by the State so long as proceeds are de-
posited in the fund for loan purposes; 
(4) ensure that investment income generated by 
funds contributed to an account of the fund will 
be—
(A) credited to the account; 
(B) available for use in providing loans to 
projects eligible for assistance from the account; 
and 
(C) invested in United States Treasury se-
curities, bank deposits, or such other financing 
instruments as the Secretary may approve to 
earn interest to enhance the leveraging of 
projects assisted by the fund; 
(5) ensure that any loan from the fund will 
bear interest at or below the lowest interest rates 
being offered for bonds the income from which is ex-
empt from Federal taxation, as determined by the 
State;
(6) ensure that repayment of any loan from the 
fund will commence not later than 1 year after the 
project has been completed; 
(7) ensure that the term for repaying any loan 
will not exceed the projected useful life of the project 
that is the subject of the loan; and 
(8) require the fund to make an annual report 
to the Secretary on its status and make such other 
reports as the Secretary may require by guidelines. 
(d) MATCHING REQUIREMENT.—In order to meet the 
matching requirement, each State establishing a revolving 
fund shall—
(1) contribute, at a minimum, in each account 
of the fund from non-Federal sources an amount 
equal to 25 percent of the amount of each capitaliza-
tion grant made to the State and contributed to the 
fund under subsection (b); or 
(2) require for any project financed from the 
fund that the local political subdivision or edu-
cational agency contribute at least 20 percent of the 
cost of such project from non-Federal sources.
(e) FORMS
OF
ASSISTANCE
FROM
REVOLVING 
FUNDS.—
(1) IN GENERAL.—A revolving fund established 
under this section may make loans to a local edu-
cational agency in an amount equal to all or part of 
the cost of carrying out a project eligible for assist-
ance under this section. In the case of a project 
which meets the requirement of subsection (d)(2), a 
revolving fund established under this section may 
make loans to a local educational agency in an 
amount equal to up to 80 percent of the cost of car-
rying out a project eligible for assistance under this 
section. 
(2) APPLICATIONS FOR LOANS.—An application 
to a revolving fund by a local educational agency for 
a loan shall include—
(A) in the case of a renovation project, a 
description of each architectural, civil, struc-
tural, mechanical, or electrical deficiency to be 
corrected with funds under a loan and the pri-
orities to be applied; 
(B) a description of the criteria used by 
the applicant to determine the type of corrective 
action necessary for the renovation of a facility;
(C) a description of improvements to be 
made and a cost estimate for the improvements; 
and 
(D) such other information as the revolv-
ing fund may require.
A revolving fund shall take final action on a com-
pleted application submitted to it within 90 days 
after the date of its submittal. 
(3) CRITERIA FOR LOANS.—In considering ap-
plications for a loan, a revolving fund shall con-
sider—
(A) the extent to which the local edu-
cational agency involved lacks the fiscal capac-
ity, including the ability to raise funds through 
the full use of such agency’s bonding capacity 
and otherwise, to undertake the project for 
which the loan would be used without the loan; 
(B) the threat that the condition of the 
physical plant in the project poses to the safety 
and well-being of students; 
(C) the demonstrated need for the con-
struction, reconstruction, or renovation based 
on the condition of the facility in the project; 
and 
(D) the age of such facility. 
(f) QUALIFYING PROJECTS.—A project is eligible for 
a loan from a revolving fund if it is a project that consists 
of—
(1) the construction of new elementary or sec-
ondary schools to meet the needs imposed by enroll-
ment growth; 
(2) the repair or upgrading of classrooms or 
structures related to academic learning, including 
the repair of leaking roofs, crumbling walls, inad-
equate plumbing, poor ventilation equipment, and in-
adequate heating or light equipment; 
(3) an activity to increase physical safety at the 
educational facility involved; 
(4) an activity to enhance the educational facil-
ity involved to provide access for students, teachers, 
and other individuals with disabilities; 
(5) an activity to address environmental haz-
ards at the educational facility involved, such as 
poor ventilation, indoor air quality, or lighting; 
(6) the provision of basic infrastructure that fa-
cilitates educational technology, such as communica-
tions outlets, electrical systems, power outlets, or a 
communication closet; 
(7) work that will bring an educational facility 
into conformity with the requirements of—
(A) environmental protection or health and 
safety programs mandated by Federal, State, or
local law if such requirements were not in effect 
when the facility was initially constructed; and 
(B) hazardous waste disposal, treatment, 
and storage requirements mandated by the Re-
source Conservation and Recovery Act of 1976 
or similar State laws; and 
(8) work to detect, remove, or otherwise contain 
asbestos hazards in educational facilities. 
(g) LOAN FORGIVENESS.—A State may forgive all or 
part of any loan described in this section if the total pro-
jected principal and interest repayments for all loans 
granted by the State and not forgiven under this sub-
section equal or exceed the combined total of all Federal 
capitalization grants provided to the State and any match-
ing funds described in subsection (d)(1) provided by the 
State. 
(h) SUPPLEMENTATION.—Any loan made by a revolv-
ing fund shall be used to supplement and not supplant 
other Federal, State, and local funds available. 
(i) LIMITATION ON REPAYMENTS.—Notwithstanding 
any other provision of law, the repayment of a loan from 
a revolving fund under this section may not be credited 
toward the non-Federal share of the cost of any project. 
(j) SECRETARIAL REQUIREMENTS.—In administering 
this section, the Secretary shall specify procedures and