Federal Infrastructure Bank Act of 2022
Bill: H.R.8682 | Sponsor: Rep. Webster, Daniel (R-FL)
Policy area: Transportation and Public Works

Summary:
Federal Infrastructure Bank Act of 2022
This bill provides for the establishment of the Federal Infrastructure Bank Holding Company (FIBHC), which shall be the parent company of the Federal Infrastructure Bank (the bank).
The bank shall provide equity investments, direct loans, and loan guarantees for the construction or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the payment of dividends, interest, principal, or fees to the bank. At least 10% of the loans, equity investments, and loan guarantees shall be for infrastructure projects in rural areas.
The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the FIBHC and the bank. The bank shall establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment by loan recipients.
The bill provides for a taxpayer credit in an amount equal to 10% of the amount such taxpayer paid to the FIBHC for an equity investment at its original issue.

To establish the Federal Infrastructure Bank to facilitate investment 
 in, and the long-term financing of, economically viable United States 
 infrastructure projects that provide a public benefit, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Infrastructure Bank Act of 
2022''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act:
            (1) Bank.--The term ``Bank'' means the Federal 
        Infrastructure Bank established under section 4.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a corporation;
                    (B) a partnership, including a public-private 
                partnership;
                    (C) a joint venture;
                    (D) a trust;
                    (E) a State;
                    (F) any other governmental entity, including a 
                political subdivision or any other instrumentality of a 
                State; or
                    (G) a revolving fund.
            (3) Holding company.--The term ``Holding Company'' means 
        the ``Federal Infrastructure Bank Holding Company'' established 
        under section 3.
            (4) Infrastructure project.--The term ``infrastructure 
        project'' means the construction, consolidation, alteration, or 
        repair of projects, which provide public benefit or use, in the 
        following categories:
                    (A) Highway and roadway facilities, including 
                bridges and tunnels.
                    (B) Port or marine terminal facilities, including 
                approaches to marine terminal facilities or inland port 
                facilities, and port or marine equipment including 
                fixed equipment to serve approaches to marine terminals 
                or inland ports.
                    (C) Airports, heliports, vertiports, spaceports, or 
                air traffic control systems and facilities.
                    (D) Transmission or distribution pipelines.
                    (E) Facilities or equipment for energy 
                transmission, distribution, or storage.
                    (F) Intercity passenger or freight rail lines, 
                facilities, or equipment.
                    (G) Intercity passenger bus facilities or 
                equipment.
                    (H) Public transportation facilities or equipment.
                    (I) Inland waterways.
                    (J) Intermodal facilities or equipment.
                    (K) Water treatment and solid waste disposal 
                facilities and associated infrastructure such as pipes.
                    (L) Storm water management systems.
                    (M) Dams and levees.
                    (N) Any other infrastructure project which the Bank 
                identifies as providing a public benefit with regards 
                to infrastructure.
            (5) Risk-based capital.--The term ``risk-based capital'' 
        shall have the meaning given that term by the Board of 
        Governors of the Federal Reserve System.
            (6) Rural.--The term ``rural'' means any area not in a 
        metropolitan statistical area with a population of 50,000 or 
        greater.
            (7) State.--The term ``State'' means each of the 50 several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, American Samoa, Guam, the United 
        States Virgin Islands, the Commonwealth of the Northern Mariana 
        Islands, and each federally recognized Indian Tribe.
            (8) State infrastructure bank.--The term ``State 
        infrastructure bank'' means a State infrastructure bank or 
        multi-State infrastructure bank established pursuant to--
                    (A) section 350 of the National Highway System 
                Designation Act of 1995;
                    (B) section 1511(l) of the Transportation Equity 
                Act for the 21st Century;
                    (C) section 610 of title 23, United States Code; or
                    (D) any State law as an agency, component unit, or 
                other governmental entity of the State.

SEC. 3. SELECTION OF THE FORMATION AGENT.

    (a) In General.--Within 90 days of the date of enactment of this 
Act, the Secretary of the Treasury, in consultation with the Chairman 
of the Board of Governors of the Federal Reserve System, shall select a 
Formation Agent which shall--
            (1) make and file with the Secretary of the Treasury an 
        organization certificate for the Bank in accordance with such 
        rules and regulations as the Secretary may prescribe, including 
        the establishment of the Holding Company; and
            (2) have significant experience in infrastructure and 
        infrastructure finance.
    (b) Establishment of the Federal Infrastructure Bank Holding 
Company.--Within 60 days after being selected under subsection (a), the 
Formation Agent shall establish the Federal Infrastructure Bank Holding 
Company, prescribe the governing structure of the Holding Company, and 
establish the Federal Infrastructure Bank Holding Company Board of 
Directors, which shall--
            (1) initially consist of 7 members;
            (2) be elected by the shareholders of the Holding Company;
            (3) serve 4-year terms, only 2 of which may be consecutive;
            (4) within the limitations of law and regulation, determine 
        and sign the articles of association that govern the operations 
        of the Holding Company, and have the power to adopt, amend, and 
        repeal bylaws governing the performance of the powers and 
        duties granted to or imposed upon the Holding Company by law; 
        and
            (5) select and effect the appointment of qualified persons 
        to fill the office of the Chief Executive Officer of the Bank 
        and such other offices as may be provided for in the bylaws of 
        the Holding Company and the Federal Infrastructure Bank.
    (c) Earnings and Reserves Not Government Funds.--The earnings and 
reserves of the Holding Company shall be the sole property of the 
Holding Company and are not Government funds or public funds.
    (d) Treatment of Shareholders of the Formation Agent.--The 
Formation Agent shall issue equity securities of the Holding Company to 
each shareholder of the Formation Agent, in an amount that the 
Formation Agent determines has a value equal to the value of equity 
securities of the Formation Agent held by such shareholder upon the 
establishment of the Holding Company.

SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUCTURE BANK.

    (a) In General.--The Formation Agent shall establish the Federal 
Infrastructure Bank as a Delaware corporation and the Bank shall be a 
wholly-owned subsidiary of the Holding Company.
    (b) Federal Banking Charter.--The Comptroller of the Currency shall 
grant a national bank charter to the Bank.
    (c) Regional Offices.--Within 5 years of the date of enactment of 
this Act, the Bank shall establish regional offices for the purpose of 
focusing on infrastructure projects in different areas of the United 
States.
    (d) Board of Directors.--The Board of Directors of the Holding 
Company established under section 3 shall be the initial Board of 
Directors of the Bank.
    (e) Earnings and Reserves Not Government Funds.--The earnings and 
reserves of the Bank are not Government funds or public funds.

SEC. 5. FUNCTIONS OF THE BANK.

    (a) In General.--The Bank shall provide equity investments, direct 
loans, indirect loans, and loan guarantees to eligible entities for the 
construction or maintenance of infrastructure projects in the United 
States with sufficient revenue sources and guarantees to support the 
payment of dividends, interest, principal, or fees, as applicable, to 
the Bank.
    (b) Support for Rural Projects.--Not less than 10 percent of the 
dollar amount of loans, equity investments, and loan guarantees 
provided by the Bank shall be with respect to infrastructure projects 
in rural areas.
    (c) Leveraging Bank Investments.--The Bank shall attempt to cross 
subsidize non-revenue infrastructure projects with revenue generating 
infrastructure projects to diversify the loan portfolio.
    (d) No Commercial or Investment Banking Activities.--
Notwithstanding any other provision of law, the Bank is prohibited from 
accepting customer deposits or engaging in financial or investment 
banking activities.
    (e) Pledge and Credit Facilities.--
            (1) Pledge.--The Bank shall have the authority to pledge 
        its loans to the discount window of the Board of Governors of 
        the Federal Reserve System.
            (2) Purchase of obligations.--The Secretary of the Treasury 
        may purchase obligations issued by the Bank.
    (f) Leverage Limitation.--The Bank shall maintain risk-based 
capital at no less than 10 percent.
    (g) Prohibition on Funding of Foreign Projects.--The Bank is 
prohibited from providing equity investments, direct loans, indirect 
loans, and loan guarantees for infrastructure projects not located 
within the United States.
    (h) Prohibition With Respect to China.--The Bank is prohibited from 
providing equity investments, direct loans, indirect loans, and loan 
guarantees for infrastructure projects that are owned, directed, 
controlled, financed, or influenced by the Government of the People's 
Republic of China, the Chinese Communist Party, or the People's 
Liberation Army.

SEC. 6. HOLDING COMPANY SECURITIES.

    (a) Equity Securities.--
            (1) In general.--The Holding Company shall issue such 
        equity securities as the Board of Directors of the Holding 
        Company determines appropriate.
            (2) Dividends.--The Holding Company may make such dividend 
        payments on the equity securities of the Holding Company as the 
        Holding Company determines appropriate.
            (3) Restriction on voting rights.--Any holder of an equity 
        security of the Holding Company that is a non-United States 
        individual or entity shall have no voting rights with respect 
        to such equity security.
    (b) Bonds.--
            (1) Standard bonds.--The Holding Company may issue standard 
        bonds with maturities up to 30 years or longer, as needed.
            (2) Other bonds.--The Holding Company may issue other 
        bonds, notes, and marketable securities with maturities and 
        interest rates as the Holding Company determines appropriate.
            (3) Authority to purchase bonds.--
                    (A) In general.--The Secretary of the Treasury and 
                the Board of Governors of the Federal Reserve System 
                may purchase bonds issued under this section.
                    (B) Limitation.--The aggregate amount of 
                outstanding bonds purchased by the Secretary under this 
                paragraph may not exceed 5 percent of the total amount 
                of the outstanding bonds of the Holding Company.
    (c) Leverage Limitation.--The Holding Company shall maintain risk-
based capital at no less than 10 percent.
    (d) Investment Limitation on Non-United States Individuals and 
Entities.--
            (1) Non-United States individuals and entities may not hold 
        more than 25 percent, in the aggregate, of the equity 
        securities and bonds of the Holding Company.
            (2) The Formation Agent and Holding Company are prohibited 
        from issuing any bond, note, marketable security, or other 
        financial instrument to any person or entity--
                    (A) affiliated with, owned by, or directed, 
                controlled, financed, or influenced by the Government 
                of the People's Republic of China, the Chinese 
                Communist Party, or the People's Liberation Army; or
                    (B) affiliated with, owned by, or directed, 
                controlled, financed, or influenced by a State Sponsor 
                of Terrorism, as so designated by the Secretary of 
                State.

SEC. 7. OVERSIGHT AND REGULATION.

    The Board of Governors of the Federal Reserve System shall--
            (1) have oversight and supervisory authority over the 
        Holding Company and the Bank, in order to ensure the safe and 
        sound operation of the Holding Company and the Bank; and
            (2) shall regulate Bank activities to ensure compliance 
        with the requirements set forth in this Act.

SEC. 8. INFRASTRUCTURE GUARANTEE FUND.

    The Bank shall establish an Infrastructure Guarantee Fund that 
shall be used with respect to specific loans or loan guarantees made by 
the Bank in the event of any non-payment by the recipient of such loan 
or loan guarantee.

SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM TAXATION.

    Effective for taxable years ending on or after the date of 
enactment of this Act, the Holding Company and the Bank, including 
franchises, capital, reserves, surplus, advances, and income of the 
Holding Company or Bank, shall be exempt from all taxation imposed by 
the United States and any State, county, municipal, or local taxing 
authority, except that any real property of the Holding Company and the 
Bank shall be subject to State, county, municipal, or local taxation to 
the same extent according to its value as other real property is taxed.

SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

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

``SEC. 45U. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who holds a qualified Holding Company equity investment on a 
credit allowance date of such investment which occurs during the 
taxable year, the Federal Infrastructure Bank Holding Company credit 
determined under this section for such taxable year is an amount equal 
to 10 percent of the amount paid to the Holding Company for such 
investment at its original issue.
    ``(b) Credit Allowance Date.--For purposes of this section, the 
credit allowance date with respect to any qualified Holding Company 
equity investment is--
            ``(1) the date on which such investment is initially made; 
        and
            ``(2) each of the 4 taxable years thereafter.
    ``(c) Qualified Holding Company Equity Investment.--For purposes of 
this section, the term `qualified Holding Company equity investment' 
means any equity investment originally issued by the Holding Company to 
the taxpayer under section 6(a)(1) of the Federal Infrastructure Bank 
Act of 2022 not later than 3 years after the date of the enactment of 
such Act.
    ``(d) Holding Company.--For purposes of this section, the term 
`Holding Company' means the Federal Infrastructure Bank Holding Company 
established by the Federal Infrastructure Bank Act of 2022.''; and
            (2) in the table of contents for such subpart, by adding at 
        the end the following:

``45U. Federal Infrastructure Bank Holding Company credit.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (32), by striking the period 
        at the end of paragraph (33) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(34) the Federal Infrastructure Bank Holding Company 
        credit determined under section 45U.''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (37), by striking the period at 
        the end of paragraph (38) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(39) to the extent provided in section 45U(e).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 11. RULE OF CONSTRUCTION.

     Nothing in this Act may be construed as authorizing the Federal 
Government to guarantee the assets of the Bank or Holding Company.
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