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S. 1769 (112th): Rebuild America Jobs Act


The text of the bill below is as of Nov 1, 2011 (Placed on Calendar in the Senate). The bill was not enacted into law.


II

Calendar No. 213

112th CONGRESS

1st Session

S. 1769

IN THE SENATE OF THE UNITED STATES

October 31, 2011

(for herself, Mr. Manchin, Mr. Whitehouse, Mr. Reid, Mr. Kerry, Mrs. Boxer, Mr. Coons, Mr. Begich, Mr. Lautenberg, Mr. Franken, Mr. Schumer, Mr. Nelson of Florida, Mr. Blumenthal, Mrs. Feinstein, Mr. Levin, Mr. Menendez, Mr. Brown of Ohio, Ms. Stabenow, and Mr. Durbin) introduced the following bill; which was read the first time

November 1, 2011

Read the second time and placed on the calendar

A BILL

To put workers back on the job while rebuilding and modernizing America.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Rebuild America Jobs Act.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Buy American—Use of American iron, steel, and manufactured goods.

Sec. 3. Wage rate and employment protection requirements.

TITLE I—Creating Jobs Through Infrastructure Modernization

Subtitle A—Immediate transportation infrastructure investments

Sec. 101. Immediate transportation infrastructure investments.

Subtitle B—Building and upgrading infrastructure for long-term development

Sec. 121. Short title.

Sec. 122. Findings and purpose.

Sec. 123. Definitions.

Sec. 124. Establishment and general authority of American Infrastructure Financing Authority.

Sec. 125. Voting members of the board of directors.

Sec. 126. Chief executive officer of AIFA.

Sec. 127. Powers and duties of the board of directors.

Sec. 128. Senior management.

Sec. 129. Special Inspector General for AIFA.

Sec. 130. Other personnel.

Sec. 131. Compliance.

Sec. 132. Terms and limitations on direct loans and loan guarantees.

Sec. 133. Loan terms and repayment.

Sec. 134. Compliance and enforcement.

Sec. 135. Audits; reports to the President and Congress.

Sec. 136. Administrative fees.

Sec. 137. Efficiency of AIFA.

Sec. 138. Funding.

Subtitle C—Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds

Sec. 141. Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds.

TITLE II—Surtax on Millionaires

Sec. 201. Surtax on millionaires.

2.

Buy American—Use of American iron, steel, and manufactured goods

(a)

In general

None of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.

(b)

Exception

Subsection (a) shall not apply in any case or category of cases in which the head of the Federal department or agency involved determines that—

(1)

applying subsection (a) would be inconsistent with the public interest;

(2)

iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

(3)

inclusion of iron, steel, and manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent.

(c)

Waiver

If the head of a Federal department or agency determines that it is necessary to waive the application of subsection (a) based on a finding under subsection (b), the head of the department or agency shall publish in the Federal Register a detailed written justification as to why the provision is being waived.

(d)

Application

This section shall be applied in a manner consistent with United States obligations under international agreements.

3.

Wage rate and employment protection requirements

(a)

In general

All laborers and mechanics employed on projects funded directly by, or assisted in whole or in part by and through, the Federal Government or any other entity established pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(b)

Authority of Secretary of Labor

With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.

(c)

Employee protective arrangements

Projects (as defined in section 47102 of title 49, United States Code) that are funded directly by, or assisted in whole or in part by and through, the Federal Government or any other entity established pursuant to this Act shall be subject to the requirements under section 5333(b) of title 49, United States Code.

I

Creating Jobs Through Infrastructure Modernization

A

Immediate transportation infrastructure investments

101.

Immediate transportation infrastructure investments

(a)

Grants-In-Aid for airports

(1)

In general

There is made available to the Secretary of Transportation $2,000,000,000 to carry out airport improvement under subchapter I of chapter 471 and subchapter I of chapter 475 of title 49, United States Code.

(2)

Federal share; limitation on obligations

The Federal share payable of the costs for which a grant is made under this subsection, shall be 100 percent. The amount made available under this subsection shall not be subject to any limitation on obligations for the Grants-In-Aid for Airports program set forth in any Act or in title 49, United States Code.

(3)

Distribution of funds

Amounts provided to the Secretary under this subsection shall not be subject to apportionment formulas, special apportionment categories, or minimum percentages under chapter 471 of title 49, United States Code.

(4)

Availability

Amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(5)

Administrative expenses

Of the amounts made available under this subsection, 0.3 percent—

(A)

shall be available to the Secretary for administrative expenses;

(B)

shall remain available for obligation until September 30, 2015; and

(C)

may be used in conjunction with amounts otherwise provided for the administration of the Grants-In-Aid for Airports program.

(b)

Next generation air traffic control advancements

(1)

In general

There is made available to the Secretary of Transportation $1,000,000,000 for necessary Federal Aviation Administration capital, research and operating costs to carry out Next Generation air traffic control system advancements.

(2)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act.

(c)

Highway infrastructure investment

(1)

In general

There is made available to the Secretary of Transportation $27,000,000,000 for—

(A)

restoration, repair, construction and other activities eligible under section 133(b) of title 23, United States Code; and

(B)

passenger and freight rail transportation and port infrastructure projects eligible for assistance under section 601(a)(8) of title 23, United States Code.

(2)

Federal share; limitation on obligations

The Federal share payable on account of any project or activity carried out with funds made available under this subsection shall be, at the option of the recipient, up to 100 percent of the total cost of such project or activity. The amount made available under this subsection shall not be subject to any limitation on obligations for Federal-aid highways and highway safety construction programs set forth in any Act or in title 23, United States Code.

(3)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(4)

Distribution of funds

(A)

Apportionment

After making the set-asides required under paragraphs (8), (9), (10), (11), and (13), and not later than 30 days after the date of the enactment of this Act—

(i)

50 percent of the remaining amounts made available under this subsection shall be apportioned to States using the formula set forth in section 104(b)(3) of title 23, United States Code; and

(ii)

the remaining amounts shall be apportioned to States in the same ratio as the obligation limitation for fiscal year 2010 was distributed among the States in accordance with the formula specified in section 120(a)(6) of the Department of Transportation Appropriations Act, 2010 (title I of division A of Public Law 111–117).

(B)

State planning and oversight expenses

Of amounts apportioned under subparagraph (A), a State may use up to 0.5 percent for activities related to projects funded under this subsection, including activities eligible under sections 134 and 135 of title 23, United States Code, State administration of subgrants, and State oversight of subrecipients.

(5)

Redistribution

(A)

Initial allocation

The Secretary shall, 180 days following the date of apportionment, withdraw from each State an amount equal to 50 percent of the funds apportioned under paragraph (4) to that State (excluding funds suballocated within the State) less the amount of funding obligated (excluding funds suballocated within the State), and the Secretary shall redistribute such amounts to other States that have had no funds withdrawn under this subparagraph in the manner described in section 120(c) of division A of Public Law 111–117.

(B)

Subsequent allocation

One year following the date of apportionment, the Secretary shall withdraw from each recipient of funds apportioned under paragraph (4) any unobligated funds, and the Secretary shall redistribute such amounts to States that have had no funds withdrawn under this paragraph (excluding funds suballocated within the State) in the manner described in section 120(c) of division A of Public Law 111–117.

(C)

Extension

At the request of a State, the Secretary may provide an extension of the 1-year period only to the extent that the Secretary determines that the State has encountered extreme conditions that create an unworkable bidding environment or other extenuating circumstances. Before granting an extension, the Secretary shall provide a thorough justification for the extension in a written notification submitted to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.

(6)

Transportation enhancements

Three percent of the amounts apportioned to a State under paragraph (4) shall be set aside for the purposes described in section 133(d)(2) of title 23, United States Code (without regard to the comparison to fiscal year 2005).

(7)

Suballocation

Thirty percent of the amounts apportioned to a State under this subsection shall be suballocated within the State in the manner and for the purposes described in the first sentence of sections 133(d)(3)(A), 133(d)(3)(B), and 133(d)(3)(D) of title 23, United States Code. Such suballocation shall be conducted in every State. Amounts suballocated within a State to urbanized areas and other areas shall not be subject to the redistribution of amounts required 180 days after the date of apportionment of funds provided by paragraph (6)(A).

(8)

Puerto rico and territorial highway programs

Of the amounts provided under this subsection, $105,000,000 shall be set aside for the Puerto Rico highway program authorized under section 165 of title 23, United States Code, and $45,000,000 shall be for the territorial highway program authorized under section 215 of title 23, United States Code.

(9)

Federal lands and indian reservations

Of the amounts provided under this subsection, $550,000,000 shall be set aside for investments in transportation at Indian reservations and Federal lands in accordance with the following requirements:

(A)

Of the funds set aside by this paragraph, $310,000,000 shall be for the Indian Reservation Roads program, $170,000,000 shall be for the Park Roads and Parkways program, $60,000,000 shall be for the Forest Highway Program, and $10,000,000 shall be for the Refuge Roads program.

(B)

For investments at Indian reservations and Federal lands, priority shall be given to capital investments, and to projects and activities that can be completed within 2 years of enactment of this Act.

(C)

One year following the enactment of this Act, to ensure the prompt use of the funding provided for investments at Indian reservations and Federal lands, the Secretary shall have the authority to redistribute unobligated funds within the respective program for which the funds were appropriated.

(D)

Up to 4 percent of the funding provided for Indian Reservation Roads may be used by the Secretary of the Interior for program management and oversight and project-related administrative expenses.

(E)

Section 134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply to funds set aside under this paragraph.

(10)

Job training

(A)

In general

Of the amounts provided under this subsection, $50,000,000 shall be set aside for the development and administration of transportation training programs under section 140(b) title 23, United States Code.

(B)

Competitive award

Amounts set aside under this paragraph shall be competitively awarded and used for the purpose of providing training, apprenticeship (including Registered Apprenticeship), skill development, and skill improvement programs, as well as summer transportation institutes and may be transferred to, or administered in partnership with, the Secretary of Labor and shall demonstrate to the Secretary of Transportation program outcomes, including—

(i)

impact on areas with transportation workforce shortages;

(ii)

diversity of training participants;

(iii)

number of participants obtaining certifications or credentials required for specific types of employment;

(iv)

employment outcome metrics, such as job placement and job retention rates, established in consultation with the Secretary of Labor and consistent with metrics used by programs under the Workforce Investment Act;

(v)

to the extent practical, evidence that the program did not preclude workers that participate in training or apprenticeship activities under the program from being referred to, or hired on, projects funded under this chapter; and

(vi)

identification of areas of collaboration with the Department of Labor programs, including co-enrollment.

(C)

Certification

To be eligible to receive a competitively awarded grant under this subsection, a State must certify that at least 0.1 percent of the amounts apportioned under the Surface Transportation Program and Bridge Program will be obligated in the first fiscal year after the date of the enactment of this Act for job training activities, in accordance with section 140(b) of title 23, United States Code.

(11)

Disadvantaged business enterprises

Of the amounts provided under this subsection, $10,000,000 shall be set aside for training programs and assistance programs under section 140(c) of title 23, United States Code. Amounts set aside under this paragraph should be allocated to businesses that have proven success in adding staff while effectively completing projects.

(12)

Conditions

Amounts made available under this subsection—

(A)

shall be administered as if apportioned under chapter 1 of title 23, United States Code, except for—

(i)

amounts made available for investments in transportation at Indian reservations and Federal lands and for the territorial highway program, which shall be administered in accordance with chapter 2 of such title 23; and

(ii)

amounts made available for disadvantaged business enterprises bonding assistance, which shall be administered in accordance with chapter 3 of title 49, United States Code;

(B)

may not be obligated for the purposes authorized under section 115(b) of title 23, United States Code;

(C)

shall be in addition to any and all funds provided for fiscal years 2011 and 2012 in any other Act for Federal-aid Highways and shall not affect the distribution of funds provided for Federal-aid Highways in any other Act; and

(D)

shall be subject to the requirements under section 1101(b) of SAFETEA-LU (Public Law 109–59).

(13)

Oversight

The Administrator of the Federal Highway Administration may set aside up to 0.15 percent of the amounts provided under this subsection to fund the oversight by the Administrator of projects and activities carried out with amounts made available to the Federal Highway Administration under this Act. Such amounts shall be available through September 30, 2015.

(d)

Capital assistance for high-Speed rail corridors and intercity passenger rail service

(1)

In general

(A)

Grants

There is made available to the Secretary of Transportation $4,000,000,000, which shall be used—

(i)

for grants for high-speed rail projects authorized under sections 26104 and 26106 of title 49, United States Code

(ii)

for capital investment grants to support intercity passenger rail service authorized under section 24406 of such title 49;

(iii)

congestion grants authorized under section 24105 of such title 49; and

(iv)

to enter into cooperative agreements for the purposes set forth in clauses (i) through (iii).

(B)

Oversight

The Administrator of the Federal Railroad Administration may retain up to 1 percent of the amounts made available under subparagraph (A) for award and oversight by the Administrator of the grants made under this subsection. Such amount shall remain available for obligation until September 30, 2015.

(2)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(3)

Federal share

The Federal share payable of the costs for which a grant or cooperative agreements is made under this subsection shall be, at the option of the recipient, up to 100 percent.

(4)

Interim guidance

The Secretary shall issue interim guidance to applicants covering application procedures and administer the grants provided under this subsection pursuant to that guidance until final regulations are issued.

(5)

Intercity passenger rail corridors

Not less than 85 percent of the amounts provided under this subsection shall be for cooperative agreements that lead to the development of entire segments or phases of intercity or high-speed rail corridors.

(6)

Conditions

(A)

In addition to the provisions of title 49, United States Code, that apply to each of the individual programs funded under this subsection, subsections (a)(2) and (i) of section 24402(i) of title 49, United States Code, and subsections (a) and (c) of section 24403 of such title 49, shall also apply to amounts provided under this subsection.

(B)

A project need not be in a State rail plan developed under chapter 227 of title 49, United States Code, to be eligible for assistance under this subsection.

(C)

Recipients of grants under this paragraph shall conduct all procurement transactions using such grant funds in a manner that provides full and open competition, as determined by the Secretary, in compliance with existing labor agreements.

(e)

Capital grants to the national railroad passenger corporation

(1)

In general

There is made available $2,000,000,000 to the Secretary of Transportation to award capital grants to the National Railroad Passenger Corporation (Amtrak), as authorized by section 101(c) of the Passenger Rail Investment and Improvement Act of 2008 (Public Law 110–432).

(2)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(3)

Project priority

The priority for the use of funds shall be given to projects for the repair, rehabilitation, or upgrade of railroad assets or infrastructure, and for capital projects that expand passenger rail capacity including the rehabilitation of rolling stock.

(4)

Conditions

(A)

None of the amounts under this subsection shall be used to subsidize the operating losses of Amtrak.

(B)

Amounts provided under this subsection shall be awarded not later than 90 days after the date of the enactment of this Act.

(C)

The Secretary shall take measures to ensure that projects funded under this subsection shall be completed not later than 2 years after the date of the enactment of this Act, and shall serve to supplement and not supplant planned expenditures for such activities from other Federal, State, local and corporate sources. The Secretary shall submit written certification to the Committee on Appropriations of the Senate and the Committee on Armed Services of the House of Representatives that the Secretary is in compliance with this subparagraph.

(5)

Oversight

The Administrator of the Federal Railroad Administration may set aside 0.5 percent of the amounts provided under this subsection to fund the oversight by the Administrator of projects and activities carried out with funds made available in this subsection, and such amounts shall be available through September 30, 2015.

(f)

Transit capital assistance

(1)

In general

There is made available to the Secretary of Transportation $3,000,000,000 for grants for transit capital assistance grants as defined by section 5302(a)(1) of title 49, United States Code. Notwithstanding any provision of chapter 53 of such title 49, a recipient of funding under this subsection may use up to 10 percent of such funding for the operating costs of equipment and facilities for use in public transportation or for other eligible activities.

(2)

Federal share; limitation on obligations

The applicable requirements of chapter 53 of title 49, United States Code, shall apply to funding provided under this subsection, except that the Federal share of the costs for which any grant is made under this subsection shall be, at the option of the recipient, up to 100 percent. The amount made available under this subsection shall not be subject to any limitation on obligations for transit programs set forth in any Act or chapter 53 of title 49, United States Code.

(3)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(4)

Distribution of funds

The Secretary of Transportation shall—

(A)

provide 80 percent of the funds appropriated under this subsection for grants under section 5307 of title 49, United States Code, and apportion such funds in accordance with section 5336 of such title;

(B)

provide 10 percent of the funds appropriated under this subsection in accordance with section 5340 of such title; and

(C)

provide 10 percent of the funds appropriated under this subsection for grants under section 5311 of title 49, United States Code, and apportion such funds in accordance with such section.

(5)

Apportionment

Amounts apportioned under this subsection shall be apportioned not later than 21 days after the date of the enactment of this Act.

(6)

Redistribution

(A)

Initial allocation

The Secretary of Transportation shall, 180 days following the date of apportionment, withdraw from each urbanized area or State an amount equal to 50 percent of the amounts apportioned to such urbanized areas or States less the amount of funding obligated, and the Secretary shall redistribute such amounts to other urbanized areas or States that have had no funds withdrawn under this subparagraph utilizing whatever method the determines to be appropriate to ensure that all funds redistributed under this subparagraph shall be utilized promptly.

(B)

Subsequent allocation

One year following the date of apportionment, the Secretary shall withdraw from each urbanized area or State any unobligated funds, and the Secretary shall redistribute such amounts to other urbanized areas or States that have had no amounts withdrawn under this paragraph utilizing whatever method the determines to be appropriate to ensure that all funds redistributed under this subparagraph shall be utilized promptly.

(C)

Extension

At the request of an urbanized area or State, the Secretary may provide an extension of the 1-year period only to the extent that the Secretary determines that the urbanized area or State has encountered an unworkable bidding environment or other extenuating circumstances. Before granting an extension, the Secretary shall provide a thorough justification for the extension in a written notification submitted to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.

(7)

Conditions

(A)

Of the amounts provided for section 5311 of title 49, United States Code, 2.5 percent shall be made available for subsection (c)(1) of such section.

(B)

Amounts appropriated under this subsection shall be subject to the requirements under section 1101(b) of SAFETEA-LU (Public Law 109–59).

(C)

Amounts appropriated under this subsection may not be commingled with amounts appropriated in any prior fiscal year.

(8)

Oversight

Notwithstanding any other provision of law—

(A)

0.3 percent of the amounts provided for grants under sections 5307 and 5340 of title 49, United States Code, and 0.3 percent of the amounts provided for grants under section 5311 of such title 49, shall be available for administrative expenses and program management oversight; and

(B)

amounts set aside under subparagraph (A) shall be available through September 30, 2015.

(g)

State of good repair

(1)

In general

There is made available to the Secretary of Transportation $6,000,000,000 for capital expenditures authorized under paragraphs (2) and (3) of section 5309(b) of title 49, United States Code.

(2)

Federal share

The applicable requirements under chapter 53 of title 49, United States Code, shall apply to amounts made available under this subsection, except that the Federal share of the costs for which a grant is made under this subsection shall be, at the option of the recipient, up to 100 percent.

(3)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(4)

Distribution of funds

(A)

Fixed guideway systems

Not later than 30 days after the date of the enactment of this Act, the Secretary of Transportation shall apportion not less than 75 percent of the amounts made available under this subsection for the modernization of fixed guideway systems pursuant to the formula set forth in section 5336(b) title 49, United States Code (other than paragraph (2)(A)(ii)).

(B)

Bus systems

Not later than 30 days after the date of the enactment of this Act, the Secretary of Transportation shall apportion not less than 25 percent of the amounts appropriated under this subsection for the restoration or replacement of existing public transportation assets related to bus systems pursuant to the formula set forth in section 5336 (other than subsection (b)).

(5)

Redistribution

(A)

Initial allocation

The Secretary of Transportation shall, 180 days following the date of apportionment, withdraw from each urbanized area an amount equal to 50 percent of the amounts apportioned to such urbanized area less the amount of funding obligated, and the Secretary shall redistribute such amounts to other urbanized areas that have had no funds withdrawn under this paragraph utilizing whatever method the determines to be appropriate to ensure that all funds redistributed under this subparagraph shall be utilized promptly.

(B)

Subsequent allocation

One year after the date of apportionment, the Secretary shall withdraw from each urbanized area any unobligated funds, and the Secretary shall redistribute such amounts to other urbanized areas that have had no amounts withdrawn under this paragraph utilizing whatever method the determines to be appropriate to ensure that all funds redistributed under this subparagraph shall be utilized promptly.

(C)

Extension

At the request of an urbanized area, the Secretary may provide an extension of the 1-year period if the Secretary determines that the urbanized area has encountered an unworkable bidding environment or other extenuating circumstances. Before granting an extension, the Secretary shall provide a thorough justification for the extension in a written notification submitted to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.

(6)

Conditions

(A)

Amounts appropriated under this subsection shall be subject to the requirements under section 1101(b) of SAFETEA-LU (Public Law 109–59).

(B)

Amounts appropriated under this subsection may not be commingled with amounts appropriated in any prior fiscal year.

(7)

Oversight

Notwithstanding any other provision of law, 0.3 percent of the funds under this subsection shall be available for administrative expenses and program management oversight and shall remain available for obligation until September 30, 2015.

(h)

Transportation infrastructure grants and financing

(1)

In general

There is made available to the Secretary of Transportation $5,000,000,000 for capital investments in surface transportation infrastructure. The Secretary shall distribute amounts made available under this subsection as discretionary grants to be awarded to State and local governments or transit agencies on a competitive basis for projects that will have a significant impact on the Nation, a metropolitan area, or a region.

(2)

Federal share; limitation on obligations

The Federal share payable of the costs for which a grant is made under this subsection shall be 100 percent.

(3)

Availability

The amounts made available under this subsection shall be available for obligation during the 2-year period beginning on the date of the enactment of this Act. The Secretary shall obligate not less than 50 percent of the such amounts not later than 1 year after the date of the enactment of this Act and obligate the remaining amounts not later than 2 years after such date of enactment.

(4)

Project eligibility

Projects eligible for funding provided under this subsection include—

(A)

highway or bridge projects eligible under title 23, United States Code, including interstate rehabilitation, improvements to the rural collector road system, the reconstruction of overpasses and interchanges, bridge replacements, seismic retrofit projects for bridges, and road realignments;

(B)

public transportation projects eligible under chapter 53 of title 49, United States Code, including investments in projects participating in the New Starts or Small Starts programs that will expedite the completion of those projects and their entry into revenue service;

(C)

passenger and freight rail transportation projects; and

(D)

port infrastructure investments, including projects that connect ports to other modes of transportation and improve the efficiency of freight movement.

(5)

TIFIA program

The Secretary may transfer amounts made available under this subsection to the Federal Highway Administration for the purpose of paying the subsidy and administrative costs of projects eligible for federal credit assistance under chapter 6 of title 23, United States Code, if the Secretary determines that such use would advance the purposes of this subsection.

(6)

Project priority

The Secretary shall give priority to projects that are expected to be completed not later than 3 years after the date of the enactment of this Act.

(7)

Deadline for issuance of competition criteria

Not later than 90 days after the date of the enactment of this Act, the Secretary shall publish criteria on which to base the competition for any grants awarded under this subsection. The Secretary shall require applications for funding under this subsection to be submitted not later than 180 days after the publication of the criteria, and announce all projects selected to be funded from such amounts not later than 1 year after the date of the enactment of the Act.

(8)

Applicability of title 40, united states code

Each project conducted using funds provided under this subsection shall comply with the requirements under subchapter IV of chapter 31 of title 40, United States Code.

(9)

Administrative expenses

The Secretary may retain up to 0.5 percent of the amounts provided under this subsection, and may transfer portions of those funds to the Administrator of the Federal Highway Administration, the Administrator of the Federal Transit Administration, the Administrator of the Federal Railroad Administration, and the Administrator of the Maritime Administration, to fund the award and oversight of grants made under this subsection. Amounts retained under this paragraph shall remain available for obligation until September 30, 2015.

(i)

Local hiring

(1)

In general

With regard to the funding made available under subsections (a) through (h), the Secretary of Transportation may establish standards under which a contract for construction may be advertised that contains requirements for the employment of individuals residing in or adjacent to any of the areas in which the work is to be performed to perform construction work required under the contract, if—

(A)

all or part of the construction work performed under the contract occurs in an area designated by the Secretary as an area of high unemployment, using data reported by the United States Department of Labor, Bureau of Labor Statistics;

(B)

the estimated cost of the project of which the contract is a part is greater than $10,000,000, except that the estimated cost of the project in the case of construction funded under subsection (c) shall be greater than $50,000,000; and

(C)

the recipient may not require the hiring of individuals who do not have the necessary skills to perform work in any craft or trade unless the recipient establishes reasonable provisions to train such individuals to perform any such work under the contract effectively.

(2)

Project standards

(A)

In general

Any standards established by the Secretary under this section shall ensure that any requirements under subsection (c)(1)—

(i)

do not compromise the quality of the project;

(ii)

are reasonable in scope and application;

(iii)

do not unreasonably delay the completion of the project; and

(iv)

do not unreasonably increase the cost of the project.

(B)

Available programs

A portion of the amounts made available under subsections (a) through (h) may be allocated by the recipients of such funding for training programs that comply with paragraph (1)(C). The Secretary of Labor shall make available its qualifying workforce and training development programs to recipients desiring to establish training programs that comply with paragraph (1)(C).

(3)

Implementing regulations

The Secretary shall promulgate final regulations to implement this subsection.

(j)

Administrative provisions

(1)

Applicability of title 40

Each project using amounts provided under this section shall comply with the requirements under subchapter IV of chapter 31 of title 40, United States Code.

(2)

Buy american

Section 1605 of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) shall apply to each project conducted using amounts made available under this section.

B

Building and upgrading infrastructure for long-term development

121.

Short title

This subtitle may be cited as the Building and Upgrading Infrastructure for Long-Term Development.

122.

Findings and purpose

(1)

Findings

Congress finds that—

(A)

infrastructure has always been a vital element of the economic strength of the United States and a key indicator of the international leadership of the United States;

(B)

the Erie Canal, the Hoover Dam, the railroads, and the interstate highway system are all testaments to American ingenuity and have helped propel and maintain the United States as the world’s largest economy;

(C)

according to the World Economic Forum’s Global Competitiveness Report, the United States fell to second place in 2009, and dropped to fourth place overall in 2010, however, in the Quality of overall infrastructure category of the same report, the United States ranked 23rd in the world;

(D)

according to the World Bank’s 2010 Logistic Performance Index, the capacity of countries to efficiently move goods and connect manufacturers and consumers with international markets is improving around the world, and the United States now ranks seventh in the world in logistics-related infrastructure behind countries from both Europe and Asia;

(E)

according to a January 2009 report from the University of Massachusetts/Alliance for American Manufacturing entitled Employment, Productivity and Growth, infrastructure investment is a highly effective engine of job creation;

(F)

according to the American Society of Civil Engineers, the current condition of the infrastructure in the United States earns a grade point average of D, and an estimated $2,200,000,000,000 investment is needed over the next 5 years to bring American infrastructure up to adequate condition;

(G)

according to the National Surface Transportation Policy and Revenue Study Commission, $225,000,000,000 is needed annually from all sources for the next 50 years to upgrade the United States surface transportation system to a state of good repair and create a more advanced system;

(H)

the current infrastructure financing mechanisms of the United States, both on the Federal and State level, will fail to meet current and foreseeable demands and will create large funding gaps;

(I)

published reports state that there may not be enough demand for municipal bonds to maintain the same level of borrowing at the same rates, resulting in significantly decreased infrastructure investment at the State and local level;

(J)

current funding mechanisms are not readily scalable and do not—

(i)

serve large in-State or cross jurisdiction infrastructure projects, projects of regional or national significance, or projects that cross sector silos;

(ii)

sufficiently catalyze private sector investment; or

(iii)

ensure the optimal return on public resources;

(K)

although grant programs of the United States Government must continue to play a central role in financing the transportation, environment, and energy infrastructure needs of the United States, current and foreseeable demands on existing Federal, State, and local funding for infrastructure expansion clearly exceed the resources to support these programs by margins wide enough to prompt serious concerns about the United States ability to sustain long-term economic development, productivity, and international competitiveness;

(L)

the capital markets, including pension funds, private equity funds, mutual funds, sovereign wealth funds, and other investors, have a growing interest in infrastructure investment and represent hundreds of billions of dollars of potential investment; and

(M)

the establishment of a United States Government-owned, independent, professionally managed institution that could provide credit support to qualified infrastructure projects of regional and national significance, making transparent merit-based investment decisions based on the commercial viability of infrastructure projects, would catalyze the participation of significant private investment capital.

(2)

Purpose

The purpose of this subtitle is to facilitate investment in, and long-term financing of, economically viable infrastructure projects of regional or national significance in a manner that—

(A)

complements existing Federal, State, local, and private funding sources for these projects;

(B)

introduces a merit-based system for financing such projects; and

(C)

mobilizes significant private sector investment, creates jobs, and ensures United States competitiveness through an institution that limits the need for ongoing Federal funding.

123.

Definitions

In this subtitle:

(1)

AIFA

The term AIFA means the American Infrastructure Financing Authority established under this subtitle.

(2)

Blind trust

The term blind trust means a trust in which the beneficiary has no knowledge of the specific holdings and no rights over how those holdings are managed by the fiduciary of the trust prior to the dissolution of the trust.

(3)

Board of directors

The term Board of Directors means Board of Directors of AIFA.

(4)

Chairperson

The term Chairperson means the Chairperson of the Board of Directors of AIFA.

(5)

Chief executive officer

The term chief executive officer means the chief executive officer of AIFA, appointed under section 126.

(6)

Cost; direct loan

The terms cost and direct loan have the meanings given such terms in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(7)

Eligible entity

The term eligible entity means an individual, corporation, partnership (including a public-private partnership), joint venture, trust, State, or other non-Federal governmental entity, including a political subdivision or any other instrumentality of a State, or a revolving fund.

(8)

Infrastructure projects

(A)

In general

The term eligible infrastructure project means any non-Federal transportation, water, or energy infrastructure project, or an aggregation of such infrastructure projects, as provided in this subtitle.

(B)

Transportation infrastructure project

The term transportation infrastructure project means the construction, alteration, or repair, including the facilitation of intermodal transit, of the following subsectors:

(i)

Highway or road.

(ii)

Bridge.

(iii)

Mass transit.

(iv)

Inland waterways.

(v)

Commercial ports.

(vi)

Airports.

(vii)

Air traffic control systems.

(viii)

Passenger rail, including high-speed rail.

(ix)

Freight rail systems.

(C)

Water infrastructure project

The term water infrastructure project means the construction, consolidation, alteration, or repair of the following subsectors:

(i)

Wastewater treatment facility.

(ii)

Storm water management system.

(iii)

Dam.

(iv)

Solid waste disposal facility.

(v)

Drinking water treatment facility.

(vi)

Levee.

(vii)

Open space management system.

(D)

Energy infrastructure project

The term energy infrastructure project means the construction, alteration, or repair of the following subsectors:

(i)

Pollution reduced energy generation.

(ii)

Transmission and distribution.

(iii)

Storage.

(iv)

Energy efficiency enhancements for buildings, including public and commercial buildings.

(E)

Board authority to modify subsectors

The Board of Directors may make modifications to the subsectors set forth in subparagraphs (B) through (D) by a vote of not fewer than 5 of the voting members of the Board of Directors.

(9)

Investment prospectus

(A)

In general

The term investment prospectus means the processes and publications described in this subsection that will guide the priorities and strategic focus for the Bank’s investments. The investment prospectus shall follow rulemaking procedures under section 553 of title 5, United States Code.

(B)

Publication

Not later than 1 year after the date of the enactment of this Act, the Bank shall publish a detailed description of its strategy in an Investment Prospectus that—

(i)

specifies what the Bank shall consider significant to the economic competitiveness of the United States or a region thereof in a manner consistent with the primary objective;

(ii)

specifies the priorities and strategic focus of the Bank in forwarding its strategic objectives and carrying out the Bank strategy;

(iii)

specifies the priorities and strategic focus of the Bank in promoting greater efficiency in the movement of freight;

(iv)

specifies the priorities and strategic focus of the Bank in promoting the use of innovation and best practices in the planning, design, development and delivery of projects;

(v)

describes in detail the framework and methodology for calculating application qualification scores and associated ranges as specified in this subchapter, along with the data to be requested from applicants and the mechanics of calculations to be applied to that data to determine qualification scores and ranges;

(vi)

describes how selection criteria will be applied by the Chief Executive Officer in determining the competitiveness of an application and its qualification score and range relative to other current applications and previously funded applications; and

(vii)

describes how the qualification score and range methodology and project selection framework are consistent with maximizing the Bank goals in urban and rural areas.

(C)

Approval

The Investment Prospectus and any subsequent updates to the Investment Prospectus shall be approved by a majority vote of the Board of Directors prior to publication.

(D)

Updates

The Bank shall update the Investment Prospectus on every biennial anniversary of its original publication.

(10)

Investment-grade rating

The term investment-grade rating means a rating of BBB minus, Baa3, or higher assigned to an infrastructure project by a ratings agency.

(11)

Loan guarantee

The term loan guarantee has the meaning given such term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(12)

Public-private partnership

The term public-private partnership means any eligible entity—

(A)
(i)

which is undertaking the development of all or part of an infrastructure project that will have a public benefit, pursuant to requirements established in one or more contracts between the entity and a State or an instrumentality of a State; or

(ii)

the activities of which, with respect to such an infrastructure project, are subject to regulation by a State or any instrumentality of a State;

(B)

which owns, leases, or operates or will own, lease, or operate, the project in whole or in part; and

(C)

the participants in which include not fewer than 1 nongovernmental entity with significant investment and some control over the project or project vehicle.

(13)

Rural infrastructure project

The term rural infrastructure project means an infrastructure project in a rural area (as defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A))).

(14)

Secretary

Unless the context otherwise requires, the term Secretary means the Secretary of the Treasury or the designee of the Secretary of the Treasury.

(15)

Senior management

The term senior management means—

(A)

the chief financial officer, chief risk officer, chief compliance officer, general counsel, chief lending officer, and chief operations officer of AIFA established under section 128; and

(B)

such other officers as the Board of Directors may, by majority vote, add to senior management.

(16)

State

The term State includes the District of Columbia, Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of Northern Mariana Islands, and any other territory of the United States.

124.

Establishment and general authority of American Infrastructure Financing Authority

(a)

Establishment of AIFA

The American Infrastructure Financing Authority is established as a wholly owned Government corporation.

(b)

General authority of AIFA

AIFA shall provide direct loans and loan guarantees to facilitate infrastructure projects that are both economically viable and of regional or national significance, and shall have such other authority, as provided in this subtitle.

(c)

Incorporation

(1)

In general

The Board of Directors first appointed shall be deemed the incorporator of AIFA, and the incorporation shall be held to have been effected from the date of the first meeting of the Board of Directors.

(2)

Corporate office

AIFA shall—

(A)

maintain an office in Washington, DC; and

(B)

for purposes of venue in civil actions, be considered to be a resident of Washington, DC.

(d)

Responsibility of the secretary

The Secretary shall take such action as may be necessary to assist in implementing AIFA, and in carrying out the purpose of this Act.

(e)

Rule of construction

Chapter 91 of title 31, United States Code, does not apply to AIFA, unless otherwise specifically provided in this subtitle.

125.

Voting members of the board of directors

(a)

Voting membership of the board of directors

(1)

In general

AIFA shall have a Board of Directors consisting of 7 voting members appointed by the President, by and with the advice and consent of the Senate, not more than 4 of whom shall be from the same political party.

(2)

Chairperson

One of the voting members of the Board of Directors shall be designated by the President to serve as Chairperson.

(3)

Congressional recommendations

Not later than 30 days after the date of the enactment of this Act, the majority leader of the Senate, the minority leader of the Senate, the Speaker of the House of Representatives, and the minority leader of the House of Representatives shall each submit a recommendation to the President for appointment of a member of the Board of Directors, after consultation with the appropriate committees of Congress.

(b)

Voting rights

Each voting member of the Board of Directors shall have an equal vote in all decisions of the Board of Directors.

(c)

Qualifications of voting members

Each voting member of the Board of Directors shall—

(1)

be a citizen of the United States; and

(2)

have significant demonstrated expertise in—

(A)

the management and administration of a financial institution relevant to the operation of AIFA; or a public financial agency or authority; or

(B)

the financing, development, or operation of infrastructure projects; or

(C)

analyzing the economic benefits of infrastructure investment.

(d)

Terms

(1)

In general

Except as otherwise provided in this subtitle, each voting member of the Board of Directors shall be appointed for a term of 4 years.

(2)

Initial staggered terms

Of the voting members first appointed to the Board of Directors—

(A)

the initial Chairperson and 3 of the other voting members shall each be appointed for a term of 4 years; and

(B)

the remaining 3 voting members shall each be appointed for a term of 2 years.

(3)

Date of initial nominations

The initial nominations for the appointment of all voting members of the Board of Directors shall be made not later than 60 days after the date of the enactment of this Act.

(4)

Beginning of term

The term of each of the initial voting members appointed under this subtitle shall commence immediately upon the date of appointment, except that, for purposes of calculating the term limits specified in this section, the initial terms shall each be construed as beginning on January 22 of the year following the date of the initial appointment.

(5)

Vacancies

A vacancy in the position of a voting member of the Board of Directors shall be filled by the President, and a member appointed to fill a vacancy on the Board of Directors occurring before the expiration of the term for which the predecessor was appointed shall be appointed only for the remainder of that term.

(e)

Meetings

(1)

Open to the public; notice

Except as provided in paragraph (3), all meetings of the Board of Directors shall be—

(A)

open to the public; and

(B)

preceded by reasonable public notice.

(2)

Frequency

The Board of Directors shall meet not later than 60 days after the date on which all members of the Board of Directors are first appointed, at least quarterly thereafter, and otherwise at the call of either the Chairperson or 5 voting members of the Board of Directors.

(3)

Exception for closed meetings

The voting members of the Board of Directors may, by majority vote, close a meeting to the public if, during the meeting to be closed, there is likely to be disclosed proprietary or sensitive information regarding an infrastructure project under consideration for assistance under this Act. The Board of Directors shall prepare minutes of any meeting that is closed to the public, and shall make such minutes available as soon as practicable, not later than 1 year after the date of the closed meeting, with any necessary redactions to protect any proprietary or sensitive information.

(4)

Quorum

For purposes of meetings of the Board of Directors, 5 voting members of the Board of Directors shall constitute a quorum.

(f)

Compensation of members

Each voting member of the Board of Directors shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level III of the Executive Schedule under section 5314 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Board of Directors.

(g)

Conflicts of interest

A voting member of the Board of Directors may not participate in any review or decision affecting an infrastructure project under consideration for assistance under this subtitle, if the member has or is affiliated with an entity who has a financial interest in such project.

126.

Chief executive officer of AIFA

(a)

In general

The chief executive officer of AIFA shall be a nonvoting member of the Board of Directors, who shall be responsible for all activities of AIFA, and shall support the Board of Directors as set forth in this Act and as the Board of Directors deems necessary or appropriate.

(b)

Appointment and tenure of the chief executive officer

(1)

In general

The President shall appoint the chief executive officer, by and with the advice and consent of the Senate.

(2)

Term

The chief executive officer shall be appointed for a term of 6 years.

(3)

Vacancies

Any vacancy in the office of the chief executive officer shall be filled by the President, and the person appointed to fill a vacancy in that position occurring before the expiration of the term for which the predecessor was appointed shall be appointed only for the remainder of that term.

(c)

Qualifications

The chief executive officer—

(1)

shall have significant expertise in management and administration of a financial institution, or significant expertise in the financing and development of infrastructure projects, or significant expertise in analyzing the economic benefits of infrastructure investment; and

(2)

may not—

(A)

hold any other public office;

(B)

have any financial interest in an infrastructure project then being considered by the Board of Directors, unless that interest is placed in a blind trust; or

(C)

have any financial interest in an investment institution or its affiliates or any other entity seeking or likely to seek financial assistance for any infrastructure project from AIFA, unless any such interest is placed in a blind trust for the tenure of the service of the chief executive officer plus 2 additional years.

(d)

Responsibilities

The chief executive officer shall have such executive functions, powers, and duties as may be prescribed by this Act, the bylaws of AIFA, or the Board of Directors, including—

(1)

responsibility for the development and implementation of the strategy of AIFA, including—

(A)

the development and submission to the Board of Directors of the investment prospectus, the annual business plans and budget;

(B)

the development and submission to the Board of Directors of a long-term strategic plan; and

(C)

the development, revision, and submission to the Board of Directors of internal policies; and

(2)

responsibility for the management and oversight of the daily activities, decisions, operations, and personnel of AIFA, including—

(A)

the appointment of senior management, subject to approval by the voting members of the Board of Directors, and the hiring and termination of all other AIFA personnel;

(B)

requesting the detail, on a reimbursable basis, of personnel from any Federal agency having specific expertise not available from within AIFA, following which request the head of the Federal agency may detail, on a reimbursable basis, any personnel of such agency reasonably requested by the chief executive officer;

(C)

assessing and recommending in the first instance, for ultimate approval or disapproval by the Board of Directors, compensation and adjustments to compensation of senior management and other personnel of AIFA as may be necessary for carrying out the functions of AIFA;

(D)

ensuring, in conjunction with the general counsel of AIFA, that all activities of AIFA are carried out in compliance with applicable law;

(E)

overseeing the involvement of AIFA in all projects, including—

(i)

developing eligible projects for AIFA financial assistance;

(ii)

determining the terms and conditions of all financial assistance packages;

(iii)

monitoring all infrastructure projects assisted by AIFA, including responsibility for ensuring that the proceeds of any loan made, guaranteed, or participated in are used only for the purposes for which the loan or guarantee was made;

(iv)

preparing and submitting for approval by the Board of Directors the documents required under paragraph (1); and

(v)

ensuring the implementation of decisions of the Board of Directors; and

(F)

such other activities as may be necessary or appropriate in carrying out this Act.

(e)

Compensation

(1)

In general

Any compensation assessment or recommendation by the chief executive officer under this subtitle shall be without regard to the provisions of chapter 51 or subchapter III of chapter 53 of title 5, United States Code.

(2)

Considerations

The compensation assessment or recommendation required under this section shall take into account merit principles, where applicable, as well as the education, experience, level of responsibility, geographic differences, and retention and recruitment needs in determining compensation of personnel.

127.

Powers and duties of the board of directors

The Board of Directors shall—

(a)

as soon as is practicable after the date on which all members are appointed, approve or disapprove senior management appointed by the chief executive officer;

(b)

not later than 180 days after the date on which all members are appointed—

(1)

develop and approve the bylaws of AIFA, including bylaws for the regulation of the affairs and conduct of the business of AIFA, consistent with the purpose, goals, objectives, and policies set forth in this subtitle;

(2)

establish subcommittees, including an audit committee that is composed solely of members of the Board of Directors who are independent of the senior management of AIFA;

(3)

develop and approve, in consultation with senior management, a conflict-of-interest policy for the Board of Directors and for senior management;

(4)

approve or disapprove internal policies that the chief executive officer shall submit to the Board of Directors, including—

(A)

policies regarding the loan application and approval process, including—

(i)

disclosure and application procedures to be followed by entities in the course of nominating infrastructure projects for assistance under this Act;

(ii)

guidelines for the selection and approval of projects;

(iii)

specific criteria for determining eligibility for project selection, consistent with title II; and

(iv)

standardized terms and conditions, fee schedules, or legal requirements of a contract or program, so as to carry out this Act; and

(B)

operational guidelines; and

(5)

approve or disapprove a multi-year or 1-year business plan and budget for AIFA;

(c)

ensure that AIFA is at all times operated in a manner that is consistent with this subtitle, by—

(1)

monitoring and assessing the effectiveness of AIFA in achieving its strategic goals;

(2)

periodically reviewing internal policies;

(3)

reviewing and approving annual business plans, annual budgets, and long-term strategies submitted by the chief executive officer;

(4)

reviewing and approving annual reports submitted by the chief executive officer;

(5)

engaging one or more external auditors, as set forth in this subtitle; and

(6)

reviewing and approving all changes to the organization of senior management;

(d)

appoint and fix, by a vote of 5 of the 7 voting members of the Board of Directors, and without regard to the provisions of chapter 51 or subchapter III of chapter 53 of title 5, United States Code, the compensation and adjustments to compensation of all AIFA personnel, provided that in appointing and fixing any compensation or adjustments to compensation under this subsection, the Board shall—

(1)

consult with, and seek to maintain comparability with, other comparable Federal personnel;

(2)

consult with the Office of Personnel Management; and

(3)

carry out such duties consistent with merit principles, where applicable, as well as the education, experience, level of responsibility, geographic differences, and retention and recruitment needs in determining compensation of personnel;

(e)

establish such other criteria, requirements, or procedures as the Board of Directors may consider to be appropriate in carrying out this subtitle;

(f)

serve as the primary liaison for AIFA in interactions with Congress, the Executive Branch, and State and local governments, and to represent the interests of AIFA in such interactions and others;

(g)

approve by a vote of 5 of the 7 voting members of the Board of Directors any changes to the bylaws or internal policies of AIFA;

(h)

have the authority and responsibility—

(1)

to oversee entering into and carry out such contracts, leases, cooperative agreements, or other transactions as are necessary to carry out this subtitle with—

(A)

any Federal department or agency;

(B)

any State, territory, or possession (or any political subdivision thereof, including State infrastructure banks) of the United States; and

(C)

any individual, public-private partnership, firm, association, or corporation;

(2)

to approve of the acquisition, lease, pledge, exchange, and disposal of real and personal property by AIFA and otherwise approve the exercise by AIFA of all of the usual incidents of ownership of property, to the extent that the exercise of such powers is appropriate to and consistent with the purposes of AIFA;

(3)

to determine the character of, and the necessity for, the obligations and expenditures of AIFA, and the manner in which the obligations and expenditures will be incurred, allowed, and paid, subject to this Act and other Federal law specifically applicable to wholly owned Federal corporations;

(4)

to execute, in accordance with applicable bylaws and regulations, appropriate instruments;

(5)

to approve other forms of credit enhancement that AIFA may provide to eligible projects, as long as the forms of credit enhancements are consistent with the purposes of this subtitle and terms set forth in this subtitle;

(6)

to exercise all other lawful powers which are necessary or appropriate to carry out, and are consistent with, the purposes of AIFA;

(7)

to sue or be sued in the corporate capacity of AIFA in any court of competent jurisdiction;

(8)

to indemnify the members of the Board of Directors and officers of AIFA for any liabilities arising out of the actions of the members and officers in such capacity, in accordance with, and subject to the limitations contained in this subtitle;

(9)

to review all financial assistance packages to all eligible infrastructure projects, as submitted by the chief executive officer and to approve, postpone, or deny the same by majority vote;

(10)

to review all restructuring proposals submitted by the chief executive officer, including assignation, pledging, or disposal of the interest of AIFA in a project, including payment or income from any interest owned or held by AIFA, and to approve, postpone, or deny the same by majority vote; and

(11)

to enter into binding commitments, as specified in approved financial assistance packages;

(i)

delegate to the chief executive officer those duties that the Board of Directors deems appropriate, to better carry out the powers and purposes of the Board of Directors under this section; and

(j)

to approve a maximum aggregate amount of outstanding obligations of AIFA at any given time, taking into consideration funding, and the size of AIFA’s addressable market for infrastructure projects.

128.

Senior management

(a)

In general

Senior management shall support the chief executive officer in the discharge of the responsibilities of the chief executive officer.

(b)

Appointment of senior management

The chief executive officer shall appoint such senior managers as are necessary to carry out the purpose of AIFA, as approved by a majority vote of the voting members of the Board of Directors.

(c)

Term

Each member of senior management shall serve at the pleasure of the chief executive officer and the Board of Directors.

(d)

Removal of senior management

Any member of senior management may be removed, either by a majority of the voting members of the Board of Directors upon request by the chief executive officer, or otherwise by vote of not fewer than 5 voting members of the Board of Directors.

(e)

Senior management

(1)

In general

Each member of senior management shall report directly to the chief executive officer, other than the Chief Risk Officer, who shall report directly to the Board of Directors.

(2)

Duties and responsibilities

(A)

Chief financial officer

The Chief Financial Officer shall be responsible for all financial functions of AIFA, provided that, at the discretion of the Board of Directors, specific functions of the Chief Financial Officer may be delegated externally.

(B)

Chief risk officer

The Chief Risk Officer shall be responsible for all functions of AIFA relating to—

(i)

the creation of financial, credit, and operational risk management guidelines and policies;

(ii)

credit analysis for infrastructure projects;

(iii)

the creation of conforming standards for infrastructure finance agreements;

(iv)

the monitoring of the financial, credit, and operational exposure of AIFA; and

(v)

risk management and mitigation actions, including by reporting such actions, or recommendations of such actions to be taken, directly to the Board of Directors.

(C)

Chief compliance officer

The Chief Compliance Officer shall be responsible for all functions of AIFA relating to internal audits, accounting safeguards, and the enforcement of such safeguards and other applicable requirements.

(D)

General counsel

The General Counsel shall be responsible for all functions of AIFA relating to legal matters and, in consultation with the chief executive officer, shall be responsible for ensuring that AIFA complies with all applicable law.

(E)

Chief operations officer

The Chief Operations Officer shall be responsible for all operational functions of AIFA, including those relating to the continuing operations and performance of all infrastructure projects in which AIFA retains an interest and for all AIFA functions related to human resources.

(F)

Chief lending officer

The Chief Lending Officer shall be responsible for—

(i)

all functions of AIFA relating to the development of project pipeline, financial structuring of projects, selection of infrastructure projects to be reviewed by the Board of Directors, preparation of infrastructure projects to be presented to the Board of Directors, and set aside for rural infrastructure projects;

(ii)

the creation and management of—

(I)

a Center for Excellence to provide technical assistance to public sector borrowers in the development and financing of infrastructure projects; and

(II)

an Office of Rural Assistance to provide technical assistance in the development and financing of rural infrastructure projects; and

(iii)

the establishment of guidelines to ensure diversification of lending activities by region, infrastructure project type, and project size.

(f)

Changes to senior management

The Board of Directors, in consultation with the chief executive officer, may alter the structure of the senior management of AIFA at any time to better accomplish the goals, objectives, and purposes of AIFA, provided that the functions of the Chief Financial Officer set forth in subsection (e)(2)(A) remain separate from the functions of the Chief Risk Officer set forth in subsection (e)(2)(B).

(g)

Conflicts of interest

No individual appointed to senior management may—

(1)

hold any other public office;

(2)

have any financial interest in an infrastructure project then being considered by the Board of Directors, unless that interest is placed in a blind trust; or

(3)

have any financial interest in an investment institution or its affiliates, AIFA or its affiliates, or other entity then seeking or likely to seek financial assistance for any infrastructure project from AIFA, unless any such interest is placed in a blind trust during the term of service of that individual in a senior management position, and for a period of 2 years thereafter.

129.

Special Inspector General for AIFA

(a)

In general

During the first 5 operating years of AIFA, the Office of the Inspector General of the Department of the Treasury shall have responsibility for AIFA.

(b)

Office of the Special Inspector General

Effective 5 years after the date of the commencement of the operations of AIFA, there is established the Office of the Special Inspector General for AIFA.

(c)

Appointment of Inspector General; removal

(1)

Head of office

The head of the Office of the Special Inspector General for AIFA shall be the Special Inspector General for AIFA (referred to in this section as the Special Inspector General), who shall be appointed by the President, by and with the advice and consent of the Senate.

(2)

Basis of appointment

The appointment of the Special Inspector General shall be made on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations.

(3)

Timing of nomination

The nomination of an individual as Special Inspector General shall be made as soon as is practicable after the effective date under subsection (b).

(4)

Removal

The Special Inspector General shall be removable from office in accordance with the provisions of section 3(b) of the Inspector General Act of 1978 (5 U.S.C. App.).

(5)

Rule of construction

For purposes of section 7324 of title 5, United States Code, the Special Inspector General shall not be considered an employee who determines policies to be pursued by the United States in the nationwide administration of Federal law.

(6)

Rate of pay

The annual rate of basic pay of the Special Inspector General shall be the annual rate of basic pay for an Inspector General under section 3(e) of the Inspector General Act of 1978 (5 U.S.C. App.).

(d)

Duties

(1)

In general

The Special Inspector General shall conduct, supervise, and coordinate audits and investigations of the business activities of AIFA.

(2)

Other systems, procedures, and controls

The Special Inspector General shall establish, maintain, and oversee such systems, procedures, and controls as the Special Inspector General considers appropriate to discharge the duty described in paragraph (1).

(3)

Additional duties

In addition to the duties specified in paragraphs (1) and (2), the Inspector General shall have the duties and responsibilities of inspectors general under the Inspector General Act of 1978.

(e)

Powers and authorities

(1)

In general

In carrying out the duties specified in subsection (d), the Special Inspector General shall have the authorities provided in section 6 of the Inspector General Act of 1978.

(2)

Additional authority

The Special Inspector General shall carry out the duties specified in subsection (d)(1) in accordance with section 4(b)(1) of the Inspector General Act of 1978.

(f)

Personnel, facilities, and other resources

(1)

Additional officers

(A)

The Special Inspector General may select, appoint, and employ such officers and employees as may be necessary for carrying out the duties of the Special Inspector General, subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title, relating to classification and General Schedule pay rates.

(B)

The Special Inspector General may exercise the authorities under subsections (b) through (i) of section 3161 of title 5, United States Code (without regard to subsection (a) of that section).

(2)

Retention of services

The Special Inspector General may obtain services as authorized by section 3109 of title 5, United States Code, at daily rates not to exceed the equivalent rate prescribed for grade GS–15 of the General Schedule by section 5332 of such title.

(3)

Ability to contract for audits, studies, and other services

The Special Inspector General may enter into contracts and other arrangements for audits, studies, analyses, and other services with public agencies and with private persons, and make such payments as may be necessary to carry out the duties of the Special Inspector General.

(4)

Request for information

(A)

In general

Upon request of the Special Inspector General for information or assistance from any department, agency, or other entity of the Federal Government, the head of such entity shall, insofar as is practicable and not in contravention of any existing law, furnish such information or assistance to the Special Inspector General, or an authorized designee.

(B)

Refusal to comply

Whenever information or assistance requested by the Special Inspector General is, in the judgment of the Special Inspector General, unreasonably refused or not provided, the Special Inspector General shall report the circumstances to the Secretary of the Treasury, without delay.

(g)

Reports

(1)

Annual report

Not later than 1 year after the confirmation of the Special Inspector General, and every calendar year thereafter, the Special Inspector General shall submit to the President a report summarizing the activities of the Special Inspector General during the previous 1-year period ending on the date of such report.

(2)

Public disclosures

Nothing in this section shall be construed to authorize the public disclosure of information that is—

(A)

specifically prohibited from disclosure by any other provision of law;

(B)

specifically required by Executive order to be protected from disclosure in the interest of national defense or national security or in the conduct of foreign affairs; or

(C)

a part of an ongoing criminal investigation.

130.

Other personnel

Except as otherwise provided in the bylaws of AIFA, the chief executive officer, in consultation with the Board of Directors, shall appoint, remove, and define the duties of such qualified personnel as are necessary to carry out the powers, duties, and purpose of AIFA, other than senior management, who shall be appointed in accordance with section 249.

131.

Compliance

The provision of assistance by the Board of Directors pursuant to this Act shall not be construed as superseding any provision of State law or regulation otherwise applicable to an infrastructure project.

132.

Terms and limitations on direct loans and loan guarantees

(a)

Eligibility criteria for assistance from AIFA and terms and limitations of loans

Any project whose use or purpose is private and for which no public benefit is created shall not be eligible for financial assistance from AIFA under this subtitle. Financial assistance under this subtitle shall only be made available if the applicant for such assistance has demonstrated to the satisfaction of the Board of Directors that the infrastructure project for which such assistance is being sought—

(1)

is not for the refinancing of an existing infrastructure project; and

(2)

meets—

(A)

any pertinent requirements set forth in this subtitle;

(B)

any criteria established by the Board of Directors or chief executive officer in accordance with this subtitle; and

(C)

the definition of a transportation infrastructure project, water infrastructure project, or energy infrastructure project.

(b)

Considerations

The criteria established by the Board of Directors pursuant to this subtitle shall provide adequate consideration of—

(1)

the economic, financial, technical, environmental, and public benefits and costs of each infrastructure project under consideration for financial assistance under this subtitle, prioritizing infrastructure projects that—

(A)

contribute to regional or national economic growth;

(B)

offer value for money to taxpayers;

(C)

demonstrate a clear and significant public benefit;

(D)

lead to job creation; and

(E)

mitigate environmental concerns;

(2)

the means by which development of the infrastructure project under consideration is being financed, including—

(A)

the terms, conditions, and structure of the proposed financing;

(B)

the credit worthiness and standing of the project sponsors, providers of equity, and co-financiers;

(C)

the financial assumptions and projections on which the infrastructure project is based; and

(D)

whether there is sufficient State or municipal political support for the successful completion of the infrastructure project;

(3)

the likelihood that the provision of assistance by AIFA will cause such development to proceed more promptly and with lower costs than would be the case without such assistance;

(4)

the extent to which the provision of assistance by AIFA maximizes the level of private investment in the infrastructure project or supports a public-private partnership, while providing a significant public benefit;

(5)

the extent to which the provision of assistance by AIFA can mobilize the participation of other financing partners in the infrastructure project;

(6)

the technical and operational viability of the infrastructure project;

(7)

the proportion of financial assistance from AIFA;

(8)

the geographic location of the project in an effort to have geographic diversity of projects funded by AIFA;

(9)

the size of the project and its impact on the resources of AIFA;

(10)

the infrastructure sector of the project, in an effort to have projects from more than one sector funded by AIFA; and

(11)

encourages use of innovative procurement, asset management, or financing to minimize the all-in-life-cycle cost, and improve the cost-effectiveness of a project.

(c)

Application

(1)

In general

Any eligible entity seeking assistance from AIFA under this Act for an eligible infrastructure project shall submit an application to AIFA at such time, in such manner, and containing such information as the Board of Directors or the chief executive officer may require.

(2)

Review of applications

AIFA shall review applications for assistance under this Act on an ongoing basis. The chief executive officer, working with the senior management, shall prepare eligible infrastructure projects for review and approval by the Board of Directors.

(3)

Dedicated revenue sources

The Federal credit instrument shall be repayable, in whole or in part, from tolls, user fees, or other dedicated revenue sources that also secure the infrastructure project obligations.

(d)

Eligible infrastructure project costs

(1)

In general

Except as provided in paragraph (2), to be eligible for assistance under this subtitle, an infrastructure project shall have project costs that are reasonably anticipated to equal or exceed $100,000,000.

(2)

Rural infrastructure projects

To be eligible for assistance under this subtitle, a rural infrastructure project shall have project costs that are reasonably anticipated to equal or exceed $25,000,000.

(e)

Loan eligibility and maximum amounts

(1)

In general

The amount of a direct loan or loan guarantee under this subtitle may not exceed the lesser of 50 percent of the reasonably anticipated eligible infrastructure project costs or, if the direct loan or loan guarantee does not receive an investment grade rating, the amount of the senior project obligations.

(2)

Maximum annual loan and loan guarantee volume

The aggregate amount of direct loans and loan guarantees made by AIFA in any single fiscal year may not exceed—

(A)

during the first 2 fiscal years of the operations of AIFA, $10,000,000,000;

(B)

during fiscal years 3 through 9 of the operations of AIFA, $20,000,000,000; or

(C)

during any fiscal year thereafter, $50,000,000,000.

(f)

State and local permits required

The provision of assistance by the Board of Directors pursuant to this subtitle shall not be deemed to relieve any recipient of such assistance, or the related infrastructure project, of any obligation to obtain required State and local permits and approvals.

133.

Loan terms and repayment

(a)

In general

A direct loan or loan guarantee under this subtitle with respect to an eligible infrastructure project shall be on such terms, subject to such conditions, and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the chief executive officer determines appropriate.

(b)

Terms

A direct loan or loan guarantee under this subtitle—

(1)

shall—

(A)

be payable, in whole or in part, from tolls, user fees, or other dedicated revenue sources that also secure the senior project obligations (such as availability payments and dedicated State or local revenues); and

(B)

include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and

(2)

may have a lien on revenues described in paragraph (1), subject to any lien securing project obligations.

(c)

Base interest rate

The base interest rate on a direct loan under this subtitle shall be not less than the yield on United States Treasury obligations of a similar maturity to the maturity of the direct loan.

(d)

Risk assessment

Before entering into an agreement for assistance under this subtitle, the chief executive officer, in consultation with the Director of the Office of Management and Budget and considering rating agency preliminary or final rating opinion letters of the project under this subtitle, shall estimate an appropriate Federal credit subsidy amount for each direct loan and loan guarantee, taking into account such letter, as well as any comparable market rates available for such a loan or loan guarantee, should any exist. The final credit subsidy cost for each loan and loan guarantee shall be determined consistent with the Federal Credit Reform Act, 2 U.S.C. 661a et seq.

(e)

Credit fee

With respect to each agreement for assistance under this subtitle, the chief executive officer may charge a credit fee to the recipient of such assistance to pay for, over time, all or a portion of the Federal credit subsidy determined under subsection (d), with the remainder paid by the account established for AIFA; provided, that the source of fees paid under this subtitle shall not be a loan or debt obligation guaranteed by the Federal Government. In the case of a direct loan, such credit fee shall be in addition to the base interest rate established under subsection (c).

(f)

Maturity date

The final maturity date of a direct loan or loan guaranteed by AIFA under this subtitle shall be not later than 35 years after the date of substantial completion of the infrastructure project, as determined by the chief executive officer.

(g)

Rating opinion letter

(1)

In general

The chief executive officer shall require each applicant for assistance under this subtitle to provide a rating opinion letter from at least 1 ratings agency, indicating that the senior obligations of the infrastructure project, which may be the Federal credit instrument, have the potential to achieve an investment-grade rating.

(2)

Rural infrastructure projects

With respect to a rural infrastructure project, a rating agency opinion letter described in paragraph (1) shall not be required, except that the loan or loan guarantee shall receive an internal rating score, using methods similar to the ratings agencies generated by AIFA, measuring the proposed direct loan or loan guarantee against comparable direct loans or loan guarantees of similar credit quality in a similar sector.

(h)

Investment-grade rating requirement

(1)

Loans and loan guarantees

The execution of a direct loan or loan guarantee under this subtitle shall be contingent on the senior obligations of the infrastructure project receiving an investment-grade rating.

(2)

Rating of AIFA overall portfolio

The average rating of the overall portfolio of AIFA shall be not less than investment grade after 5 years of operation.

(i)

Terms and repayment of direct loans

(1)

Schedule

The chief executive officer shall establish a repayment schedule for each direct loan under this subtitle, based on the projected cash flow from infrastructure project revenues and other repayment sources.

(2)

Commencement

Scheduled loan repayments of principal or interest on a direct loan under this subtitle shall commence not later than 5 years after the date of substantial completion of the infrastructure project, as determined by the chief executive officer of AIFA.

(3)

Deferred payments of direct loans

(A)

Authorization

If, at any time after the date of substantial completion of an infrastructure project assisted under this subtitle, the infrastructure project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the direct loan under this subtitle, the chief executive officer may allow the obligor to add unpaid principal and interest to the outstanding balance of the direct loan, if the result would benefit the taxpayer.

(B)

Interest

Any payment deferred under subparagraph (A) shall—

(i)

continue to accrue interest, in accordance with the terms of the obligation, until fully repaid; and

(ii)

be scheduled to be amortized over the remaining term of the loan.

(C)

Criteria

(i)

In general

Any payment deferral under subparagraph (A) shall be contingent on the infrastructure project meeting criteria established by the Board of Directors.

(ii)

Repayment standards

The criteria established under clause (i) shall include standards for reasonable assurance of repayment.

(4)

Prepayment of direct loans

(A)

Use of excess revenues

Any excess revenues that remain after satisfying scheduled debt service requirements on the infrastructure project obligations and direct loan and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing project obligations under this subtitle may be applied annually to prepay the direct loan, without penalty.

(B)

Use of proceeds of refinancing

A direct loan under this subtitle may be prepaid at any time, without penalty, from the proceeds of refinancing from non-Federal funding sources.

(5)

Sale of direct loans

(A)

In general

As soon as is practicable after substantial completion of an infrastructure project assisted under this subtitle, and after notifying the obligor, the chief executive officer may sell to another entity, or reoffer into the capital markets, a direct loan for the infrastructure project, if the chief executive officer determines that the sale or reoffering can be made on favorable terms for the taxpayer.

(B)

Consent of obligor

In making a sale or reoffering under subparagraph (A), the chief executive officer may not change the original terms and conditions of the direct loan, without the written consent of the obligor.

(j)

Loan guarantees

(1)

Terms

The terms of a loan guaranteed by AIFA under this subtitle shall be consistent with the terms set forth in this subtitle for a direct loan, except that the rate on the guaranteed loan and any payment, pre-payment, or refinancing features shall be negotiated between the obligor and the lender, with the consent of the chief executive officer.

(2)

Guaranteed lender

A guaranteed lender shall be limited to those lenders meeting the definition of that term in section 601(a) of title 23, United States Code.

(k)

Compliance with FCRA—In general

Direct loans and loan guarantees authorized by this subtitle shall be subject to the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

134.

Compliance and enforcement

(a)

Credit agreement

Notwithstanding any other provision of law, each eligible entity that receives assistance under this subtitle from AIFA shall enter into a credit agreement that requires such entity to comply with all applicable policies and procedures of AIFA, in addition to all other provisions of the loan agreement.

(b)

AIFA authority on noncompliance

In any case in which a recipient of assistance under this subtitle is materially out of compliance with the loan agreement, or any applicable policy or procedure of AIFA, the Board of Directors may take action to cancel unutilized loan amounts, or to accelerate the repayment terms of any outstanding obligation.

(c)

Rule of construction

Nothing in this subtitle is intended to affect existing provisions of law applicable to the planning, development, construction, or operation of projects funded under this subtitle.

135.

Audits; reports to the President and Congress

(a)

Accounting

The books of account of AIFA shall be maintained in accordance with generally accepted accounting principles, and shall be subject to an annual audit by independent public accountants of nationally recognized standing appointed by the Board of Directors.

(b)

Reports

(1)

Board of directors

Not later than 90 days after the last day of each fiscal year, the Board of Directors shall submit to the President and Congress a complete and detailed report with respect to the preceding fiscal year, setting forth—

(A)

a summary of the operations of AIFA, for such fiscal year;

(B)

a schedule of the obligations of AIFA and capital securities outstanding at the end of such fiscal year, with a statement of the amounts issued and redeemed or paid during such fiscal year;

(C)

the status of infrastructure projects receiving funding or other assistance pursuant to this subtitle during such fiscal year, including all nonperforming loans, and including disclosure of all entities with a development, ownership, or operational interest in such infrastructure projects;

(D)

a description of the successes and challenges encountered in lending to rural communities, including the role of the Center for Excellence and the Office of Rural Assistance established under this subtitle; and

(E)

an assessment of the risks of the portfolio of AIFA, prepared by an independent source.

(2)

GAO

Not later than 5 years after the date of the enactment of this Act, the Comptroller General of the United States shall conduct an evaluation of, and shall submit to Congress a report on, activities of AIFA for the fiscal years covered by the report that includes an assessment of the impact and benefits of each funded infrastructure project, including a review of how effectively each such infrastructure project accomplished the goals prioritized by the infrastructure project criteria of AIFA.

(c)

Books and records

(1)

In general

AIFA shall maintain adequate books and records to support the financial transactions of AIFA, with a description of financial transactions and infrastructure projects receiving funding, and the amount of funding for each such project maintained on a publically accessible database.

(2)

Audits by the Secretary and GAO

The books and records of AIFA shall at all times be open to inspection by the Secretary of the Treasury, the Special Inspector General, and the Comptroller General of the United States.

136.

Administrative fees

(a)

In general

In addition to fees that may be collected under section 133(e), the chief executive officer shall establish and collect fees from eligible funding recipients with respect to loans and loan guarantees under this subtitle that—

(1)

are sufficient to cover all or a portion of the administrative costs to the Federal Government for the operations of AIFA, including the costs of expert firms, including counsel in the field of municipal and project finance, and financial advisors to assist with underwriting, credit analysis, or other independent reviews, as appropriate;

(2)

may be in the form of an application or transaction fee, or other form established by the CEO; and

(3)

may be based on the risk premium associated with the loan or loan guarantee, taking into consideration—

(A)

the price of United States Treasury obligations of a similar maturity;

(B)

prevailing market conditions;

(C)

the ability of the infrastructure project to support the loan or loan guarantee; and

(D)

the total amount of the loan or loan guarantee.

(b)

Availability of amounts

Amounts collected under paragraphs (1), (2), and (3) of subsection (a) shall be available without further action; provided further, that the source of fees paid under this section shall not be a loan or debt obligation guaranteed by the Federal Government.

137.

Efficiency of AIFA

The chief executive officer shall, to the extent possible, take actions consistent with this subtitle to minimize the risk and cost to the taxpayer of AIFA activities. Fees and premiums for loan guarantee or insurance coverage will be set at levels that minimize administrative and Federal credit subsidy costs to the Government (as defined in section 502 of the Federal Credit Reform Act of 1990) of such coverage, while supporting achievement of the program’s objectives, consistent with policies as set forth in the Business Plan.

138.

Funding

There is appropriated to AIFA to carry out this subtitle, for the cost of direct loans and loan guarantees subject to the limitations under section 132, and for administrative costs, $10,000,000,000, to remain available until expended. Such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Federal Credit Reform Act of 1990. Of this amount, not more than $25,000,000 for each of fiscal years 2012 through 2013, and not more than $50,000,000 for fiscal year 2014 may be used for administrative costs of AIFA. Not more than 5 percent of such amount shall be used to offset subsidy costs associated with rural projects. Amounts authorized shall be available without further action.

C

Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds

141.

Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds

(a)

In general

Clause (vi) of section 57(a)(5)(C) of the Internal Revenue Code of 1986 is amended—

(1)

by striking January 1, 2011 in subclause (I) and inserting January 1, 2013; and

(2)

by striking and 2010 in the heading and inserting , 2010, 2011, and 2012.

(b)

Adjusted current earnings

Clause (iv) of section 56(g)(4)(B) of the Internal Revenue Code of 1986 is amended—

(1)

by striking January 1, 2011 in subclause (I) and inserting January 1, 2013; and

(2)

by striking and 2010 in the heading and inserting , 2010, 2011, and 2012.

(c)

Effective date

The amendments made by this section shall apply to obligations issued after December 31, 2010.

II

Surtax on Millionaires

201.

Surtax on millionaires

(a)

In general

Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

VIII

Surtax on millionaires

Sec. 59B. Surtax on millionaires.

59B.

Surtax on millionaires

(a)

General rule

In the case of a taxpayer other than a corporation for any taxable year beginning after 2012, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 0.7 percent of so much of the modified adjusted gross income of the taxpayer for such taxable year as exceeds $1,000,000 ($500,000, in the case of a married individual filing a separate return).

(b)

Inflation adjustment

(1)

In general

In the case of any taxable year beginning after 2013, each dollar amount under subsection (a) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof.

(2)

Rounding

If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the next highest multiple of $10,000.

(c)

Modified adjusted gross income

For purposes of this section, the term modified adjusted gross income means adjusted gross income reduced by any deduction (not taken into account in determining adjusted gross income) allowed for investment interest (as defined in section 163(d)). In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).

(d)

Special rules

(1)

Nonresident alien

In the case of a nonresident alien individual, only amounts taken into account in connection with the tax imposed under section 871(b) shall be taken into account under this section.

(2)

Citizens and residents living abroad

The dollar amount in effect under subsection (a) shall be decreased by the excess of—

(A)

the amounts excluded from the taxpayer’s gross income under section 911, over

(B)

the amounts of any deductions or exclusions disallowed under section 911(d)(6) with respect to the amounts described in subparagraph (A).

(3)

Charitable trusts

Subsection (a) shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B).

(4)

Not treated as tax imposed by this chapter for certain purposes

The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.

.

(b)

Clerical amendment

The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Part VIII. Surtax on millionaires.

.

(c)

Section 15 not to apply

The amendment made by subsection (a) shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

November 1, 2011

Read the second time and placed on the calendar