Title: Rebuild America's Schools Act of 2017
Policy area: Education

Summary:
Rebuild America's Schools Act of 2017
This bill establishes a Department of Education grant program and a tax credit bond program to support long-term improvements to public school facilities.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2475 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2475

 To provide for the long-term improvement of public school facilities, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2017

   Mr. Scott of Virginia (for himself, Mr. DeFazio, Mr. Pallone, Mr. 
    Norcross, Mrs. Dingell, Mr. Kihuen, Ms. Norton, Mr. Sablan, Mr. 
Espaillat, Ms. Bonamici, Ms. Adams, Mr. Ryan of Ohio, Mr. Gallego, Mr. 
   Nadler, Ms. Jackson Lee, Mr. Evans, Ms. Velazquez, Ms. Wilson of 
Florida, Ms. Sewell of Alabama, Ms. Clarke of New York, Mr. Ted Lieu of 
 California, Mr. Payne, Ms. Kaptur, Mrs. Demings, Mr. Vela, Ms. Fudge, 
 Mr. Rush, Ms. Blunt Rochester, Mr. Richmond, Mr. Johnson of Georgia, 
Mr. Pocan, Mr. Conyers, Mr. Engel, Ms. Roybal-Allard, Mr. Cleaver, Mr. 
Khanna, Mr. Cohen, Mr. Brendan F. Boyle of Pennsylvania, Mr. Jeffries, 
   Mr. Brady of Pennsylvania, Mr. Clay, Mr. Takano, Mr. Vargas, Mr. 
 Blumenauer, Mr. McEachin, Mrs. Torres, Mr. Nolan, Mr. DeSaulnier, Mr. 
 Loebsack, Ms. Moore, Ms. Hanabusa, Mr. Serrano, Mr. Ben Ray Lujan of 
    New Mexico, Mr. Gene Green of Texas, Ms. DeLauro, Ms. Castor of 
 Florida, Ms. Schakowsky, Mr. McGovern, and Mr. Cartwright) introduced 
 the following bill; which was referred to the Committee on Education 
and the Workforce, and in addition to the Committees on Ways and Means, 
   and the Budget, 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 provide for the long-term improvement of public school facilities, 
                        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 ``Rebuild America's Schools Act of 
2017''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor and Pensions of the 
        Senate
            (2) Bureau-funded school.--The term ``Bureau-funded 
        school'' has the meaning given to the term in section 1141 of 
        the Education Amendments of 1978 (25 U.S.C. 2021).
            (3) Covered funds.--The term ``covered funds'' means funds 
        received--
                    (A) under title I of this Act; or
                    (B) from a school infrastructure bond.
            (4) ESEA terms.--The terms ``elementary school'', ``local 
        educational agency'', ``outlying area'', and ``secondary 
        school'' have the meanings given to the terms in section 8101 
        of the Elementary and Secondary Education Act 1965 (20 U.S.C. 
        7801).
            (5) Public school facilities.--The term ``public school 
        facilities'' means the facilities of a public elementary school 
        or a public secondary school.
            (6) Qualified local educational agency.--The term 
        ``qualified local educational agency'' means a local 
        educational agency that receives funds under part A of title I 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6311 et seq.).
            (7) School infrastructure bond.--The term ``school 
        infrastructure bond'' means a bond designated by the issuer as 
        a school infrastructure bond under section 54BB of the Internal 
        Revenue Code of 1986 (as added by section 201).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (9) State.--The term ``State'' means each of the 50 States 
        and the District of Columbia.

    TITLE I--GRANTS FOR THE LONG-TERM IMPROVEMENT OF PUBLIC SCHOOL 
                               FACILITIES

SEC. 101. PURPOSE AND RESERVATION.

    (a) Purpose.--Funds made available under this title shall be for 
the purpose of supporting long-term improvements to public school 
facilities in accordance with this Act.
    (b) Reservation for Outlying Areas, Puerto Rico, and Bureau-Funded 
Schools.--
            (1) In general.--For each of fiscal years 2018 through 
        2020, the Secretary shall reserve, from the amount appropriated 
        to carry out this title--
                    (A) one-half of 1 percent, to provide assistance to 
                the outlying areas;
                    (B) one-half of 1 percent, to provide assistance to 
                the Commonwealth of Puerto Rico; and
                    (C) one-half of 1 percent, for payments to the 
                Secretary of the Interior to provide assistance to 
                Bureau-funded schools.
            (2) Use of reserved funds.--Sections 301 through 304 shall 
        apply to the use of funds reserved under paragraph (1).

SEC. 102. ALLOCATION TO STATES.

    (a) Allocation to States.--
            (1) State-by-state allocation.--Of the amount appropriated 
        to carry out this title for each fiscal year and not reserved 
        under section 101(b), each State that has a plan approved by 
        the Secretary under subsection (b) shall be allocated an amount 
        in proportion to the amount received by all local educational 
        agencies in the State under part A of title I of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) 
        for the previous fiscal year relative to the total such amount 
        received by all local educational agencies in every State that 
        has a plan approved by the Secretary under subsection (b).
            (2) State reservation.--A State may reserve not more than 1 
        percent of its allocation under paragraph (1) to carry out its 
        responsibilities under this Act, which shall include--
                    (A) providing technical assistance to local 
                educational agencies, including by--
                            (i) identifying which State agencies have 
                        programs, resources, and expertise relevant to 
                        the activities supported by the allocation 
                        under this section; and
                            (ii) coordinating the provision of 
                        technical assistance across such agencies;
                    (B) in accordance with the guidance issued by the 
                Secretary under section 307, developing an online, 
                publicly searchable database that contains an inventory 
                of all public school facilities infrastructure in the 
                State (including the facilities of Bureau-funded 
                schools, as appropriate), including, with respect to 
                each such facility, an identification of--
                            (i) the information described in clauses 
                        (i) through (vi) of subparagraph (F);
                            (ii) the age (including an identification 
                        of the date of any retrofits or recent 
                        renovations) of--
                                    (I) the facility;
                                    (II) its roof;
                                    (III) its lighting system;
                                    (IV) its windows;
                                    (V) its ceilings;
                                    (VI) its plumbing; and
                                    (VII) its heating, ventilation, and 
                                air conditioning system;
                            (iii) fire safety inspection results; and
                            (iv) the proximity of the facilities to 
                        toxic sites or the vulnerability of the 
                        facilities to natural disasters, including the 
                        extent to which facilities that are vulnerable 
                        to natural disasters are seismically 
                        retrofitted;
                    (C) updating the database developed under 
                subparagraph (B) not less frequently than once every 2 
                years;
                    (D) ensuring that the information in the database 
                developed under subparagraph (B)--
                            (i) is posted on a publicly accessible 
                        website of the State; and
                            (ii) is regularly distributed to local 
                        educational agencies and Tribal governments in 
                        the State;
                    (E) issuing or reviewing regulations to ensure the 
                health and safety of students and staff during 
                construction or renovation projects; and
                    (F) issuing or reviewing regulations to ensure 
                safe, healthy, and high-performing school buildings, 
                including regulations governing--
                            (i) indoor air quality and ventilation, 
                        including exposure to carbon monoxide and 
                        carbon dioxide;
                            (ii) mold, mildew, and moisture control;
                            (iii) the safety of drinking water at the 
                        tap and water used for meal preparation, 
                        including regulations that--
                                    (I) address presence of lead and 
                                other contaminants in such water; and
                                    (II) require the regular testing of 
                                the potability of water at the tap;
                            (iv) energy and water efficiency;
                            (v) excessive classroom noise; and
                            (vi) the levels of maintenance work, 
                        operational spending, and capital investment 
                        needed to maintain the quality of public school 
                        facilities; and
                    (G) creating a plan to reduce or eliminate exposure 
                to toxins and chemicals, including mercury, radon, 
                PCBs, lead, vapor intrusions, and asbestos.
    (b) State Plan.--
            (1) In general.--To be eligible to receive an allocation 
        under this section, a State shall submit to the Secretary a 
        plan that--
                    (A) describes how the State will use the allocation 
                to make long-term improvements to public school 
                facilities;
                    (B) explains how the State will carry out each of 
                its responsibilities under subsection (a)(2);
                    (C) explains how the State will make the 
                determinations under subsections (b) and (c) of section 
                103;
                    (D) identifies how long, and at what levels, the 
                State will maintain fiscal effort for the activities 
                supported by the allocation after the State no longer 
                receives the allocation; and
                    (E) includes such other information as the 
                Secretary may require.
            (2) Approval and disapproval.--The Secretary shall have the 
        authority to approve or disapprove a State plan submitted under 
        paragraph (1).
    (c) Conditions.--As a condition of receiving an allocation under 
this section, a State shall agree to the following:
            (1) Matching requirement.--The State shall contribute, from 
        non-Federal sources, an amount equal to 10 percent of the 
        amount of the allocation received under this section to carry 
        out the activities supported by the allocation.
            (2) Maintenance of effort.--The State shall provide an 
        assurance to the Secretary that the combined fiscal effort per 
        student or the aggregate expenditures of the State with respect 
        to the activities supported by the allocation under this 
        section for fiscal years beginning with the fiscal year for 
        which the allocation is received will be not less than 90 
        percent of the combined fiscal effort or aggregate expenditures 
        by the State for such purposes for the year preceding the 
        fiscal year for which the allocation is received.
            (3) Supplement not supplant.--The State shall use an 
        allocation under this section only to supplement the level of 
        Federal, State, and local public funds that would, in absence 
        of such allocation, be made available for the activities 
        supported by the allocation, and not to supplant such funds.

SEC. 103. NEED-BASED GRANTS TO QUALIFIED LOCAL EDUCATIONAL AGENCIES.

    (a) Grants to Local Educational Agencies.--
            (1) In general.--Subject to paragraph (2), from the amounts 
        allocated to a State under section 102(a) and contributed by 
        the State under section 102(c)(1), the State shall award grants 
        to qualified local educational agencies, on a competitive 
        basis, to carry out the activities described in section 301(a).
            (2) Allowance for digital learning.--A State may use up to 
        10 percent of the amount described in paragraph (1) to make 
        grants to qualified local educational agencies carry out 
        activities to improve digital learning in accordance with 
        section 301(b).
    (b) Eligibility.--To be eligible to receive a grant under this 
section a qualified local educational agency--
            (1) shall be among the local educational agencies in the 
        State--
                    (A) with the greatest need to improve public school 
                facilities, as determined by the State, which may 
                include consideration of threats posed by the proximity 
                of the facilities to toxic sites or the vulnerability 
                of the facilities to natural disasters;
                    (B) with the highest numbers or percentages of 
                students counted under section 1124(c) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6333(c)); and
                    (C) with the most limited capacity to raise funds 
                for the long-term improvement of public school 
                facilities, as determined by an assessment of--
                            (i) the current and historic ability of the 
                        agency to raise funds for construction, 
                        renovation, modernization, and major repair 
                        projects for schools;
                            (ii) whether the agency has been able to 
                        issue bonds or receive other funds to support 
                        construction projects, including--
                                    (I) qualified school construction 
                                bonds under section 54F of the Internal 
                                Revenue Code of 1986;
                                    (II) qualified zone academy bonds 
                                under section 1397E of the Internal 
                                Revenue Code of 1986;
                                    (III) school infrastructure bonds 
                                under section 54BB of the Internal 
                                Revenue Code of 1986 (as added by 
                                section 201); and
                                    (IV) funds made available under 
                                7007 of the Elementary and Secondary 
                                Education Act of 1965 (20 U.S.C. 7707); 
                                and
                            (iii) the bond rating of the agency; and
            (2) shall agree to prioritize the improvement of the 
        facilities of public schools that serve the highest percentages 
        of students who are eligible for a free or reduced price lunch 
        under the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.) (which, in the case of a high school, may 
        be calculated using comparable data from the schools that feed 
        into the high school), as compared to other public schools in 
        the jurisdiction of the agency.
    (c) Priority of Grants.--In awarding grants under this section, the 
State shall give priority to local educational agencies that--
            (1) demonstrate the greatest need for such a grant, as 
        determined by a comparison of the factors described in 
        subsection (b);
            (2) will use the grant to improve the facilities of--
                    (A) elementary schools or middle schools that have 
                an enrollment of students who are eligible for a free 
                or reduced price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.) that 
                constitutes not less than 40 percent of the total 
                student enrollment at such schools; or
                    (B) high schools that have an enrollment of 
                students who are eligible for a free or reduced price 
                lunch under such Act that constitutes not less than 30 
                percent of the total student enrollment at such schools 
                (which may be calculated using comparable data from the 
                schools that feed into the high school);
            (3) operate public school facilities that pose a severe 
        health and safety threat to students and staff, which may 
        include a threat posed by the proximity of the facilities to 
        toxic sites or the vulnerability of the facilities to natural 
        disasters; and
            (4) serve elementary schools or secondary schools that lack 
        access to high-speed broadband sufficient to support digital 
        learning (only in the case of an agency that will use the grant 
        improve such access in accordance with section 301(b)).
    (d) Application.--To be considered for a grant under this section, 
a qualified local educational agency shall submit an application to the 
State at such time, in such manner, and containing such information as 
the State may require. Such application shall include, at minimum--
            (1) the information necessary for the State to make the 
        determinations under subsections (b) and (c);
            (2) a description of the projects that the agency plans to 
        carry out with the grant; and
            (3) an explanation of how such projects will reduce risks 
        to the health and safety of staff and students at schools 
        served by the agency.
    (e) Facilities Master Plan.--
            (1) Plan required.--Not later than 180 days after receiving 
        a grant under this section, a qualified local educational 
        agency shall submit to the State a comprehensive 10-year 
        facilities master plan.
            (2) Elements.--The facilities master plan required under 
        paragraph (1) shall include, with respect to all public school 
        facilities of the agency, a description of--
                    (A) the extent to which public school facilities 
                meet students' educational needs and support the 
                agency's educational mission and vision;
                    (B) the physical condition of the public school 
                facilities;
                    (C) the current health, safety, and environmental 
                conditions of the public school facilities, including--
                            (i) indoor air quality;
                            (ii) the presence of hazardous and toxic 
                        substances and chemicals;
                            (iii) the safety of drinking water at the 
                        tap and water used for meal preparation, 
                        including the level of lead and other 
                        contaminants in such water;
                            (iv) energy and water efficiency;
                            (v) excessive classroom noise; and
                            (vi) other health, safety, and 
                        environmental conditions that would impact the 
                        health, safety, and learning ability of 
                        students;
                    (D) how the local educational agency will address 
                any conditions identified under subparagraph (C);
                    (E) the impact of current and future student 
                enrollment levels on the design of current and future 
                public school facilities, as well as the financial 
                implications of such enrollment levels; and
                    (F) the dollar amount and percentage of funds the 
                local educational agency will dedicate to capital 
                construction projects as well as maintenance and 
                operations related to maintaining public school 
                facilities.
            (3) Consultation.--In developing the facilities master plan 
        required under paragraph (1), the qualified local educational 
        agency shall consult with teachers, principals and other school 
        leaders, custodial and maintenance staff, emergency first 
        responders, school facilities directors, students and families, 
        community residents, and Indian Tribes and Tribal organizations 
        (as applicable).
    (f) Supplement Not Supplant.--A qualified local educational agency 
shall use an allocation received under this section only to supplement 
the level of Federal, State, and local public funds that would, in the 
absence of such allocation, be made available for the activities 
supported by the allocation, and not to supplant such funds.

SEC. 104. ANNUAL REPORT ON GRANT PROGRAM.

    (a) In General.--Not later than September 30 of each fiscal year 
beginning after the date of the enactment of this Act, the Secretary 
shall submit to the appropriate congressional committees a report on 
the projects carried out with funds made available under this title.
    (b) Elements.--The report under paragraph (1) shall include, with 
respect to the fiscal year preceding the year in which the report is 
submitted, the following:
            (1) An identification of each local educational agency that 
        received a grant under this title.
            (2) With respect to each such agency, a description of--
                    (A) the demographic composition of the student 
                population served by the agency, disaggregated by--
                            (i) race;
                            (ii) the number and percentage of students 
                        counted under section 1124(c) of the Elementary 
                        and Secondary Education Act of 1965 (20 U.S.C. 
                        6333(c)); and
                            (iii) the number and percentage of students 
                        who are eligible for a free or reduced price 
                        lunch under the Richard B. Russell National 
                        School Lunch Act (42 U.S.C. 1751 et seq.);
                    (B) the population density of the geographic area 
                served by the agency;
                    (C) the projects for which the agency used the 
                grant received under this title;
                    (D) the demonstrable or expected benefits of the 
                projects; and
                    (E) the estimated number of jobs created by the 
                projects.
            (3) The total dollar amount of all grants received by local 
        educational agencies under this title.
    (c) LEA Information Collection.--A local educational agency that 
receives a grant under this title shall--
            (1) annually compile the information described in 
        subsection (b)(2);
            (2) make the information available to the public, including 
        by posting the information on a publicly accessible website of 
        the Agency; and
            (3) submit the information to the State.
    (d) State Information Distribution.--A State that receives 
information from a local educational agency under subsection (c) 
shall--
            (1) compile the information and report it annually to the 
        Secretary at such time and in such manner as the Secretary may 
        require;
            (2) make the information available to the public, including 
        by posting the information on a publicly accessible website of 
        the State; and
            (3) regularly distribute the information to local 
        educational agencies and Tribal governments in the State.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $7,000,000,000 for each of 
fiscal years 2018 through 2027 to carry out this title.

                 TITLE II--SCHOOL INFRASTRUCTURE BONDS

SEC. 201. SCHOOL INFRASTRUCTURE BONDS.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
adding after section 54AA the following new section:

``SEC. 54BB. SCHOOL INFRASTRUCTURE BONDS.

    ``(a) In General.--If a taxpayer holds a school infrastructure bond 
on one or more interest payment dates of the bond during any taxable 
year, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum of the 
credits determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit determined under 
this subsection with respect to any interest payment date for a school 
infrastructure bond is 100 percent of the amount of interest payable by 
the issuer with respect to such date.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) School Infrastructure Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `school infrastructure bond' means any bond issued as part of 
        an issue if--
                    ``(A) 100 percent of the available project proceeds 
                of such issue are to be used for the purposes described 
                in section 301 of the Rebuild America's Schools Act of 
                2017,
                    ``(B) the interest on such obligation would (but 
                for this section) be excludable from gross income under 
                section 103,
                    ``(C) the issue meets the requirements of paragraph 
                (3), and
                    ``(D) the issuer designates such bond for purposes 
                of this section.
            ``(2) Applicable rules.--For purposes of applying paragraph 
        (1)--
                    ``(A) for purposes of section 149(b), a school 
                infrastructure bond shall not be treated as federally 
                guaranteed by reason of the credit allowed under 
                subsection (a) or section 6431,
                    ``(B) for purposes of section 148, the yield on a 
                school infrastructure bond shall be determined without 
                regard to the credit allowed under subsection (a), and
                    ``(C) a bond shall not be treated as a school 
                infrastructure bond if the issue price has more than a 
                de minimis amount (determined under rules similar to 
                the rules of section 1273(a)(3)) of premium over the 
                stated principal amount of the bond.
            ``(3) 6-year expenditure period.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects 100 
                percent of the available project proceeds to be spent 
                for purposes described in section 301 of the Rebuild 
                America's Schools Act of 2017 within the 6-year period 
                beginning on such date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 6 years.--To the extent that less than 
                100 percent of the available project proceeds of the 
                issue are expended at the close of the period described 
                in subparagraph (A) with respect to such issue, the 
                issuer shall redeem all of the nonqualified bonds 
                within 90 days after the end of such period. For 
                purposes of this paragraph, the amount of the 
                nonqualified bonds required to be redeemed shall be 
                determined in the same manner as under section 142.
    ``(e) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds issued during any calendar year which 
may be designated under subsection (d) by any issuer shall not exceed 
the limitation amount allocated under subsection (g) for such calendar 
year to such issuer.
    ``(f) National Limitation on Amount of Bonds Designated.--The 
national qualified school infrastructure bond limitation for each 
calendar year is--
            ``(1) $10,000,000,000 for 2018,
            ``(2) $10,000,000,000 for 2019, and
            ``(3) $10,000,000,000 for 2020.
    ``(g) Allocation of Limitation.--
            ``(1) Allocation among states.--
                    ``(A) Except as provided in paragraph (2), the 
                limitation applicable under subsection (f) for any 
                calendar year shall be allocated by the Secretary among 
                the States in proportion to the respective amounts 
                received by all local educational agencies in each 
                State under part A of title I of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6311 et 
                seq.) for the previous fiscal year relative to the 
                total such amount received by all local educational 
                agencies in for the most recent fiscal year ending 
                before such calendar year.
                    ``(B) Subject to subparagraph (C), the limitation 
                amount allocated to a State under subparagraph (A) 
                shall be allocated by the State educational agency (or 
                such other agency as is authorized under State law to 
                make such allocation) to issuers within such State in 
                accordance with the priorities described in section 
                103(c) the of the Rebuild America's Schools Act of 2017 
                (as in effect on the date of the enactment of this 
                section) and the eligibility requirements described in 
                section 103(b) of such Act, except that paragraph 
                (1)(C) of such section shall not apply to the 
                determination of eligibility for such allocation.
                    ``(C) Up to 10 percent of the limitation amount 
                allocated to a State under subparagraph (A) may be 
                allocated by the State to issuers within such State to 
                carry out activities to improve digital learning in 
                accordance with section 301(b) of the Rebuild America's 
                Schools Act of 2017 (as in effect on the date of the 
                enactment of this section).
            ``(2) Allocations to certain possessions.--The amount to be 
        allocated under paragraph (1) to possessions of the United 
        States other than Puerto Rico for a calendar year shall be one-
        half of 1 percent of national qualified school infrastructure 
        bond limitation for such year. In making other allocations, the 
        amount to be allocated under paragraph (1) shall be reduced by 
        the aggregate amount allocated under this paragraph and 
        paragraph (3).
            ``(3) Allocations for indian schools.--The amount to be 
        allocated under paragraph (1) to the Secretary of the Interior 
        for schools funded by the Bureau of Indian Affairs for a 
        calendar year shall be one-half of 1 percent of national 
        qualified school infrastructure bond limitation for such year. 
        Notwithstanding any other provision of law, in the case of 
        amounts allocated under the preceding sentence, Indian tribal 
        governments (as defined in section 7701(a)(40)) shall be 
        treated as qualified issuers for purposes of this subchapter.
    ``(h) Interest Payment Date.--For purposes of this section, the 
term `interest payment date' means any date on which the holder of 
record of the school infrastructure bond is entitled to a payment of 
interest under such bond.
    ``(i) Special Rules.--
            ``(1) Interest on school infrastructure bonds includible in 
        gross income for federal income tax purposes.--For purposes of 
        this title, interest on any school infrastructure bond shall be 
        includible in gross income.
            ``(2) Application of certain rules.--Rules similar to the 
        rules of subsections (f), (g), (h), and (i) of section 54A 
        shall apply for purposes of the credit allowed under subsection 
        (a).
            ``(3) Application of certain labor standards.--
        Notwithstanding any other provision of law, a school 
        infrastructure bond shall be treated as a qualified school 
        construction bond for purposes of the application of section 
        1601 of the American Recovery and Reinvestment Act of 2009 
        (Public Law 111-5; 26 U.S.C. 54C note.).''.
    (b) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 of such Code is amended by amending the item related 
        to subpart J to read as follows:

              ``subpart j--certain infrastructure bonds''.

            (2) The table of chapters for subpart J of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 54BB. School infrastructure bonds.''.
    (c) Transitional Coordination With State Law.--Except as otherwise 
provided by a State after the date of the enactment of this Act, the 
interest on any school infrastructure bond (as defined in section 54BB 
of the Internal Revenue Code of 1986, as added by this section) and the 
amount of any credit determined under such section with respect to such 
bond shall be treated for purposes of the income tax laws of such State 
as being exempt from Federal income tax.
    (d) Credit for Qualified Bonds Allowed to Issuer.--Paragraph (3) of 
section 6431(f) of such Code is amended by inserting ``any school 
infrastructure bond (as defined in section 54BB) or'' before ``any 
qualified tax credit bond''.
    (e) Sequestration.--Subparagraph (A) of section 255(g)(1) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding before ``Postal Service Fund'' the following: ``Payments under 
section 54BB of the Internal Revenue Code of 1986.''
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2017.

SEC. 202. EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Construction of a Public School Facility.--Subparagraph (A) of 
section 54E(d)(3) of the Internal Revenue Code of 1986 is amended by 
striking ``rehabilitating or repairing'' and inserting ``constructing, 
rehabilitating, retrofitting, or repairing''.
    (b) Removal of Private Business Contribution Requirement.--Section 
54E of the Internal Revenue Code of 1986 is amended--
            (1) in subsection (a)(3)--
                    (A) in subparagraph (A), by inserting ``and'' at 
                the end; and
                    (B) by striking subparagraph (B);
            (2) by striking subsection (b); and
            (3) in paragraph (1) of subsection (c)--
                    (A) by striking ``and $400,000,0000'' and inserting 
                ``$400,000,000''; and
                    (B) by striking ``and, except as provided'' and all 
                that follows through the period at the end and 
                inserting ``, and $1,400,000,000 for 2018 and each year 
                thereafter.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2017.

SEC. 203. ANNUAL REPORT ON BOND PROGRAM.

    (a) In General.--Not later than September 30 of each fiscal year 
beginning after the date of the enactment of this Act, the Secretary 
shall submit to the appropriate congressional committees a report on 
the school infrastructure bond program.
    (b) Elements.--The report under paragraph (1) shall include, with 
respect to the fiscal year preceding the year in which the report is 
submitted, the following:
            (1) An identification of--
                    (A) each local educational agency that received 
                funds from a school infrastructure bond; and
                    (B) each local educational agency that was eligible 
                to receive such funds--
                            (i) but did not receive such funds; or
                            (ii) received less than the maximum amount 
                        of funds for which the agency was eligible.
            (2) With respect to each local educational agency described 
        in paragraph (1)--
                    (A) an assessment of the capacity of the agency to 
                raise funds for the long-term improvement of public 
                school facilities, as determined by an assessment of--
                            (i) the current and historic ability of the 
                        agency to raise funds for construction, 
                        renovation, modernization, and major repair 
                        projects for schools, including the ability of 
                        the agency to raise funds through imposition of 
                        property taxes;
                            (ii) whether the agency has been able to 
                        issue bonds to fund construction projects, 
                        including such bonds as--
                                    (I) qualified school construction 
                                bonds under section 54F of the Internal 
                                Revenue Code of 1986;
                                    (II) qualified zone academy bonds 
                                under section 1397E of the Internal 
                                Revenue Code of 1986; and
                                    (III) school infrastructure bonds; 
                                and
                            (iii) the bond rating of the agency;
                    (B) the demographic composition of the student 
                population served by the agency, disaggregated by--
                            (i) race;
                            (ii) the number and percentage of students 
                        counted under section 1124(c) of the Elementary 
                        and Secondary Education Act of 1965 (20 U.S.C. 
                        6333(c)); and
                            (iii) the number and percentage of students 
                        who are eligible for a free or reduced price 
                        lunch under the Richard B. Russell National 
                        School Lunch Act (42 U.S.C. 1751 et seq.);
                    (C) the population density of the geographic area 
                served by the agency;
                    (D) a description of the projects carried out with 
                funds received from school infrastructure bonds;
                    (E) a description of the demonstrable or expected 
                benefits of the projects; and
                    (F) the estimated number of jobs created by the 
                projects.
            (3) The total dollar amount of all funds received by local 
        educational agencies from school infrastructure bonds.
            (4) Any other factors that the Secretary determines to be 
        appropriate.
    (c) Information Collection.--A State or local educational agency 
that receives funds from a school infrastructure bond shall--
            (1) annually compile the information necessary for the 
        Secretary to determine the elements described in subsection 
        (b); and
            (2) report the information to the Secretary at such time 
        and in such manner as the Secretary may require.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. ALLOWABLE USES OF FUNDS.

    (a) In General.--Except as provided in section 302, a local 
educational agency that receives covered funds may use such funds to--
            (1) develop the facilities master plan required under 
        section 103(e);
            (2) construct, modernize, renovate, or retrofit public 
        school facilities, which may include seismic retrofitting for 
        schools vulnerable to natural disasters;
            (3) carry out major repairs of public school facilities;
            (4) install furniture or fixtures with at least a 10-year 
        life in public school facilities;
            (5) construct new public school facilities;
            (6) acquire and prepare sites on which new public school 
        facilities will be constructed;
            (7) extend the life of basic systems and components of 
        public school facilities;
            (8) reduce current or anticipated overcrowding in public 
        school facilities;
            (9) ensure the building envelopes of public school 
        facilities are structurally sound, secure, and protects 
        occupants and interiors from the elements;
            (10) improve energy and water efficiency to lower the costs 
        of energy and water consumption in public school facilities;
            (11) improve indoor air quality in public school 
        facilities;
            (12) reduce or eliminate the presence of--
                    (A) toxins and chemicals, including mercury, radon, 
                PCBs, lead, and asbestos;
                    (B) mold and mildew; or
                    (C) rodents and pests;
            (13) ensure the safety of drinking water at the tap and 
        water used for meal preparation in public school facilities, 
        which may include testing of the potability of water at the tap 
        for the presence of lead and other contaminants;
            (14) bring public school facilities into compliance with 
        applicable fire, health, and safety codes;
            (15) make public school facilities accessible to people 
        with disabilities through compliance with the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 
        504 of the Rehabilitation Act of 1973 (29 U.S.C. 794);
            (16) provide instructional program space improvements for 
        programs relating to early learning (including early learning 
        programs operated by partners of the agency), special 
        education, science, technology, career and technical education, 
        physical education, or the arts;
            (17) increase the use of public school facilities for the 
        purpose of community-based partnerships that provide students 
        with academic, health, and social services;
            (18) ensure the health of students and staff during the 
        construction or modernization of public school facilities; or
            (19) reduce or eliminate excessive classroom noise.
    (b) Allowance for Digital Learning.--A local educational agency may 
use funds received under section 103(a)(2) or proceeds from a school 
infrastructure bond limitation allocated under section 54BB(g)(1)(C) of 
the Internal Revenue Code of 1986 (as added by section 201) to leverage 
existing public programs or public-private partnerships to expand 
access to high-speed broadband sufficient for digital learning.

SEC. 302. PROHIBITED USES.

    A local educational agency that receives covered funds may not use 
such funds for--
            (1) payment of routine and predictable maintenance costs 
        and minor repairs;
            (2) any facility that is primarily used for athletic 
        contests or exhibitions or other events for which admission is 
        charged to the general public;
            (3) vehicles;
            (4) central offices, operation centers, or other facilities 
        that are not primarily used to educate students; or
            (5) digital infrastructure or handheld digital devices.

SEC. 303. GREEN PRACTICES.

    (a) In General.--In a given fiscal year, a local educational agency 
that uses covered funds for a new construction project or renovation 
project shall use not less than the applicable percentage (as described 
in subsection (b)) of the funds used for such project for construction 
or renovation that is certified, verified, or consistent with any 
applicable provisions of--
            (1) the United States Green Building Council Leadership in 
        Energy and Environmental Design green building rating standard 
        (commonly known as the ``LEED Green Building Rating System'');
            (2) the Living Building Challenge developed by the 
        International Living Future Institute;
            (3) a green building rating program developed by the 
        Collaborative for High-Performance Schools (commonly known as 
        ``CHPS'') that is CHPS-verified;
            (4) a program that--
                    (A) has standards that are equivalent to or more 
                stringent than the standards of a program described in 
                paragraphs (1) through (3);
                    (B) is adopted by the State or another jurisdiction 
                with authority over the agency; and
                    (C) includes a verifiable method to demonstrate 
                compliance with such program.
    (b) Applicable Percentage.--The applicable percentage described in 
this subsection is--
            (1) for fiscal year 2018, 60 percent;
            (2) for fiscal year 2019, 70 percent;
            (3) for fiscal year 2020; 80 percent;
            (4) for fiscal year 2021, 90 percent; and
            (5) for each of fiscal years 2022 through 2027, 100 
        percent.

SEC. 304. USE OF AMERICAN IRON, STEEL, AND MANUFACTURED PRODUCTS.

    (a) In General.--A local educational agency that receives covered 
funds shall ensure that any iron, steel, and manufactured products used 
in projects carried out with such funds are produced in the United 
States.
    (b) Waiver Authority.--
            (1) In general.--The Secretary may waive the requirement of 
        subsection (a) if the Secretary determines that--
                    (A) applying subsection (a) would be inconsistent 
                with the public interest;
                    (B) iron, steel, and manufactured products produced 
                in the United States are not produced in a sufficient 
                and reasonably available amount or are not of a 
                satisfactory quality; or
                    (C) using iron, steel, and manufactured products 
                produced in the United States will increase the cost of 
                the overall project by more than 25 percent.
            (2) Publication.--Before issuing a waiver under paragraph 
        (1), the Secretary shall publish in the Federal Register a 
        detailed written explanation of the waiver determination.
    (c) Consistency With International Agreements.--This section shall 
be applied in a manner consistent with the obligations of the United 
States under international agreements.
    (d) Definitions.--In this section:
            (1) Produced in the united states.--The term ``produced in 
        the United States'' means the following:
                    (A) When used with respect to a manufactured 
                product, the product was manufactured in the United 
                States and the cost of the components of such product 
                that were mined, produced, or manufactured in the 
                United States exceeds 60 percent of the total cost of 
                all components of the product.
                    (B) When used with respect to iron or steel 
                products, or an individual component of a manufactured 
                product, all manufacturing processes for such iron or 
                steel products or components, from the initial melting 
                stage through the application of coatings, occurred in 
                the United States. Except that the term does not 
                include--
                            (i) steel or iron material or products 
                        manufactured abroad from semi-finished steel or 
                        iron from the United States; and
                            (ii) or iron material or products 
                        manufactured in the United States from semi-
                        finished steel or iron of foreign origin.
            (2) Manufactured product.--The term ``manufactured 
        product'' means any construction material or end product (as 
        such terms are defined in part 25.003 of the Federal 
        Acquisition Regulation) that is not an iron or steel product, 
        including--
                    (A) electrical components; and
                    (B) non-ferrous building materials, including, 
                aluminum and polyvinylchloride (PVC), glass, fiber 
                optics, plastic, wood, masonry, rubber, manufactured 
                stone, any other non-ferrous metals, and any 
                unmanufactured construction material.

SEC. 305. COMPTROLLER GENERAL REPORT.

    (a) In General.--Not later than the date that is 2 years after the 
date of the enactment of this Act, the Comptroller General of the 
United States shall submit to the appropriate congressional committees 
a report on the projects carried out with covered funds.
    (b) Elements.--The report under subsection (a) shall include an 
assessment of--
            (1) the types of projects carried out with covered funds;
            (2) the geographic distribution of the projects;
            (3) an assessment of the impact of the projects on the 
        health and safety of school staff and students; and
            (4) how the Secretary or States could make covered funds 
        more accessible--
                    (A) to schools with highest numbers and percentages 
                of students counted under section 1124(c) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6333(c)); and
                    (B) to schools with fiscal challenges in raising 
                capital for school infrastructure projects.
    (c) Updates.--The Comptroller General shall update and resubmit the 
report to the appropriate congressional committees--
            (1) on a date that is between 5 and 6 years after the date 
        of enactment of this Act; and
            (2) on a date that is between 10 and 11 years after such 
        date of enactment.

SEC. 306. STUDY AND REPORT PHYSICAL CONDITION OF PUBLIC SCHOOLS.

    (a) Study and Report.--Not less frequently than once in each 5-year 
period beginning after the date of the enactment of this Act, the 
Secretary, acting through the Director of the Institute of Education 
Sciences, shall--
            (1) carry out a comprehensive study of the physical 
        conditions of public schools in the United States, including 
        schools that received covered funds schools that did not 
        receive such funds; and
            (2) submit a report to the appropriate congressional 
        committees that includes that results of the study.
    (b) Elements.--Each study and report under subsection (a) shall 
include an assessment of--
            (1) the effect of school facility conditions on student and 
        staff health and safety;
            (2) the effect of school facility conditions on student 
        academic outcomes;
            (3) the condition of school facilities, set forth 
        separately by geographic region;
            (4) the condition of school facilities for economically 
        disadvantaged students as well as students from major racial 
        and ethnic subgroups; and
            (5) the accessibility of school facilities for students and 
        staff with disabilities.

SEC. 307. DEVELOPMENT OF DATA STANDARDS.

    (a) Data Standards.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary, in consultation with the 
officials described in subsection (b), shall--
            (1) identify the data that States should collect and 
        include in the databases developed under section 102(a)(2)(B);
            (2) develop standards for the measurement of such data; and
            (3) issue guidance to States concerning the collection and 
        measurement of such data.
    (b) Officials.--The officials described in this subsection are--
            (1) the Administrator of the Environmental Protection 
        Agency;
            (2) the Secretary of Energy;
            (3) the Director of the Centers for Disease Control and 
        Prevention; and
            (4) the Director of the National Institute for Occupational 
        Safety and Health.

SEC. 308. INFORMATION CLEARINGHOUSE.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall establish a clearinghouse to 
disseminate information on Federal programs and financing mechanisms 
that may be used to assist schools in initiating, developing, and 
financing--
            (1) energy efficiency projects;
            (2) distributed generation projects; and
            (3) energy retrofitting projects.
    (b) Elements.--In carrying out subsection (a), the Secretary 
shall--
            (1) consult with the officials described in section 307(b) 
        to develop a list of Federal programs and financing mechanisms 
        to be included in the clearinghouse; and
            (2) coordinate with such officials to develop a 
        collaborative education and outreach effort to streamline 
        communications and promote the Federal programs and financing 
        mechanisms included in the clearinghouse, which may include the 
        development and maintenance of a single online resource that 
        includes contact information for relevant technical assistance 
        that may be used by States, local education agencies, and 
        schools to effectively access and use such Federal programs and 
        financing mechanisms.

                   TITLE IV--IMPACT AID CONSTRUCTION

SEC. 401. TEMPORARY INCREASE IN FUNDING FOR IMPACT AID CONSTRUCTION.

    Section 7014(d) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7714(d)) is amended to read as follows:
    ``(d) Construction.--For the purpose of carrying out section 7007, 
there are authorized to be appropriated--
            ``(1) $17,406,000 for fiscal year 2017;
            ``(2) $50,406,000 for each of fiscal years 2018 and 2019; 
        and
            ``(3) $52,756,765 for fiscal year 2020.''.
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