National Infrastructure Development Bank Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 658 To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of a National Infrastruc- ture Development Bank, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 17, 2019 Ms. DELAURO (for herself, Mr. CICILLINE, Ms. JUDY CHU of California, Mr. LARSON of Connecticut, Mr. CARBAJAL, Mr. EVANS, Mr. DEUTCH, Mr. RYAN, Ms. VELA´ZQUEZ, Mr. POCAN, Mr. PRICE of North Carolina, Mr. ESPAILLAT, Mrs. DINGELL, Mr. BEYER, Ms. BONAMICI, Mr. TONKO, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. GARAMENDI, Mr. WELCH, Ms. LOFGREN, Mr. LARSEN of Washington, Mr. LANGEVIN, Mrs. LOWEY, Mr. DESAULNIER, Ms. ESHOO, Ms. WILSON of Florida, Mr. HASTINGS, Mr. AGUILAR, Mr. GRIJALVA, Mr. LAMB, Ms. OMAR, Mr. CARTWRIGHT, Mr. COURTNEY, Mr. TAKANO, Mr. ENGEL, Ms. KELLY of Illinois, Mr. SCHIFF, Ms. MOORE, Ms. MCCOLLUM, Mr. FOSTER, Ms. SCHAKOWSKY, Mr. LYNCH, Ms. WASSERMAN SCHULTZ, Mr. CARSON of Indiana, Mr. HIMES, Ms. KUSTER of New Hampshire, Ms. CLARKE of New York, Mr. VEASEY, Ms. DELBENE, Mr. MICHAEL F. DOYLE of Pennsylvania, Ms. CLARK of Massachusetts, Mr. SCOTT of Virginia, Ms. PINGREE, Mr. CA´RDENAS, Mr. SERRANO, Mr. KILMER, Mr. SHERMAN, Mr. KHANNA, and Mr. KEATING) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Commit- tees on Transportation and Infrastructure, Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the juris- diction of the committee concerned A BILL To facilitate efficient investments and financing of infrastruc- ture projects and new job creation through the establish- VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 2 •HR 658 IH ment of a National Infrastructure Development Bank, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘National Infrastruc- 4 ture Development Bank Act of 2019’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 (1) Investment in infrastructure has always cre- 8 ated jobs and economic growth for the United States 9 and has been a key component of maintaining a 10 global competitive edge for the United States. 11 (2) The Erie Canal, the transcontinental rail- 12 road, the Hoover Dam, rural electrification, and the 13 interstate highway system are all examples of invest- 14 ments in infrastructure that created the conditions 15 for future economic growth. 16 (3) According to the American Society of Civil 17 Engineers, the current condition of the infrastruc- 18 ture in the United States earns a grade point aver- 19 age of D+, and an estimated $4,690,000,000,000 20 investment is needed by 2025 to meet adequate con- 21 ditions. 22 (4) According to the American Water Works 23 Association, an estimated $1 trillion is necessary to 24 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 3 •HR 658 IH maintain and expand service to meet demands over 1 the next 25 years. 2 (5) Most electric transmission and distribution 3 lines were constructed in the 1950s and 1960s with 4 a 50-year life expectancy, and the more than 5 640,000 miles of high-voltage transmission lines in 6 the lower 48 States power grids are at full capacity. 7 (6) Although grant programs of the Govern- 8 ment must continue to play a central role in financ- 9 ing the transportation, environment, energy, and 10 telecommunications infrastructure needs of the 11 United States, current and foreseeable demands on 12 existing Federal, State, and local funding for infra- 13 structure expansion exceed the resources to support 14 these programs by margins wide enough to prompt 15 serious concerns about the United States ability to 16 sustain long-term economic development, produc- 17 tivity, and international competitiveness. 18 (7) The capital markets, including central 19 banks, pension funds, financial institutions, sov- 20 ereign wealth funds, and insurance companies, have 21 a growing interest in infrastructure investment. The 22 establishment of a United States Government-owned 23 institution that would provide this investment oppor- 24 tunity to finance qualifying infrastructure projects 25 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 4 •HR 658 IH would attract needed capital for United States infra- 1 structure development. 2 SEC. 3. DEFINITIONS. 3 For purposes of this Act, the following definitions 4 apply unless the context requires otherwise: 5 (1) AMERICAN INFRASTRUCTURE BOND.—The 6 term ‘‘American Infrastructure Bond’’ means a bond 7 described under section 17. 8 (2) BANK.—The term ‘‘Bank’’ means the Na- 9 tional Infrastructure Development Bank established 10 under section 4(a). 11 (3) BOARD.—The term ‘‘Board’’ means the Na- 12 tional Infrastructure Development Bank Board. 13 (4) CHIEF ASSET AND LIABILITY MANAGEMENT 14 OFFICER.—The term ‘‘chief asset and liability man- 15 agement officer’’ means the chief individual respon- 16 sible for coordinating the management of assets and 17 liabilities of the Bank. 18 (5) CHIEF COMPLIANCE OFFICER.—The term 19 ‘‘chief compliance officer or CCO’’ means the chief 20 individual responsible for overseeing and managing 21 the compliance and regulatory affairs issues of the 22 Bank. 23 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 5 •HR 658 IH (6) CHIEF EXECUTIVE OFFICER.—The term 1 ‘‘chief executive officer or CEO’’ means the indi- 2 vidual serving as the executive director of the bank. 3 (7) CHIEF FINANCIAL OFFICER.—The term 4 ‘‘chief financial officer or CFO’’ means the chief in- 5 dividual responsible for managing the financial risks, 6 planning, and reporting of the Bank. 7 (8) CHIEF LOAN ORIGINATION OFFICER.—The 8 term ‘‘chief loan origination officer’’ means the chief 9 individual responsible for the processing of new 10 loans provided by the Bank. 11 (9) CHIEF OPERATIONS OFFICER.—The term 12 ‘‘chief operations officer or COO’’ means the chief 13 individual responsible for information technology and 14 the day-to-day operations of the Bank. 15 (10) CHIEF RISK OFFICER.—The term ‘‘chief 16 risk officer or CRO’’ means the chief individual re- 17 sponsible for managing operational and compliance- 18 related risks of the Bank. 19 (11) CHIEF TREASURY OFFICER.—The term 20 ‘‘chief treasury officer’’ means the chief individual 21 responsible for managing the Bank’s treasury oper- 22 ations. 23 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 6 •HR 658 IH (12) DEVELOPMENT.—The terms ‘‘develop- 1 ment’’ and ‘‘develop’’ mean, with respect to an infra- 2 structure project, any— 3 (A) preconstruction planning, feasibility re- 4 view, permitting, design work, life-cycle mainte- 5 nance planning, and other preconstruction ac- 6 tivities; and 7 (B) construction, reconstruction, rehabili- 8 tation, replacement, or expansion. 9 (13) DIRECT LOAN.—The term ‘‘direct loan’’ 10 has the same meaning as in section 502 of the Fed- 11 eral Credit Reform Act of 1990 (2 U.S.C. 661a). 12 (14) DISADVANTAGED COMMUNITY.—The term 13 ‘‘disadvantaged community’’ means a community 14 with a median household income of less than 80 per- 15 cent of the statewide median household income for 16 the State in which the community is located. 17 (15) ENERGY INFRASTRUCTURE PROJECT.— 18 The term ‘‘energy infrastructure project’’ means any 19 project for energy transmission and distribution, en- 20 ergy efficiency enhancement for buildings, public 21 housing, health facilities, schools, and energy stor- 22 age. 23 (16) ENTITY.—The term ‘‘entity’’ means an in- 24 dividual, corporation, partnership (including a pub- 25 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 7 •HR 658 IH lic-private partnership), joint venture, trust, and a 1 State or other governmental entity, including a polit- 2 ical subdivision or any other instrumentality of a 3 State or a revolving fund. 4 (17) ENVIRONMENTAL INFRASTRUCTURE 5 PROJECT.—The term ‘‘environmental infrastructure 6 project’’ means any project for the establishment, 7 maintenance, or enhancement of any drinking water 8 and wastewater treatment facility, storm water man- 9 agement system, flood gate, dam, levee, dredging, 10 open space management system, wetland restoration, 11 infill development, solid waste disposal facility, haz- 12 ardous waste facility, or industrial site cleanup or 13 remediation projects. 14 (18) GENERAL COUNSEL.—The term ‘‘general 15 counsel’’ means the individual who serves as the 16 chief lawyer for the Bank. 17 (19) GREENHOUSE GASES.—The term ‘‘green- 18 house gases’’ means any of the following: 19 (A) Carbon dioxide. 20 (B) Methane. 21 (C) Nitrous oxide. 22 (D) Sulfur hexafluoride. 23 (E) Hydrofluorocarbons. 24 (F) Any perfluorocarbon. 25 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 8 •HR 658 IH (G) Nitrogen trifluoride. 1 (H) Any other anthropogenic gas des- 2 ignated as a greenhouse gas by the Environ- 3 mental Protection Agency Administrator. 4 (20) INFRASTRUCTURE PROJECT.—The term 5 ‘‘infrastructure project’’ means any energy, environ- 6 mental, telecommunications, or transportation infra- 7 structure project. 8 (21) LOAN GUARANTEE.—The term ‘‘loan guar- 9 antee’’ has the same meaning as in section 502 of 10 the Federal Credit Reform Act of 1990 (2 U.S.C. 11 661a). 12 (22) PUBLIC BENEFIT BOND.—The term ‘‘Pub- 13 lic Benefit Bond’’ means any bond issued in accord- 14 ance with this Act if— 15 (A) the proceeds from the sale of the bond 16 are to be used for expenditures incurred after 17 the date of issuance with respect to any infra- 18 structure project or other purpose, subject to 19 such rules as the Bank may provide; 20 (B) the bond is issued in registered form; 21 (C) the bond has such terms, and carries 22 interest in such an amount, as determined by 23 the Bank; and 24 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 9 •HR 658 IH (D) payments of interest and principal 1 with respect to the bond is the obligation of the 2 Bank and is backed by the full faith and credit 3 of the United States. 4 (23) PUBLIC-PRIVATE PARTNERSHIP.—The 5 term ‘‘public-private partnership’’ means any enti- 6 ty— 7 (A)(i) which is undertaking the develop- 8 ment of all or part of an infrastructure project, 9 which will have a public benefit, pursuant to re- 10 quirements established in one or more contracts 11 between the entity and a State or an instru- 12 mentality of a State; or 13 (ii) the activities of which, with respect to 14 such an infrastructure project, are subject to 15 regulation by a State or any instrumentality of 16 a State; and 17 (B) which owns, leases, or operates, or will 18 own, lease, or operate, the project in whole or 19 in part, and at least one of the participants in 20 the entity is a nongovernmental entity. 21 (24) REVOLVING FUND.—The term ‘‘revolving 22 fund’’ means a fund or program established by a 23 State or a political subdivision or other instrumen- 24 tality of a State, the principal activity of which is to 25 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 10 •HR 658 IH make loans, commitments, or other financial accom- 1 modation available for the development of one or 2 more categories of infrastructure projects. 3 (25) SECRETARY.—The term ‘‘Secretary’’ 4 means the Secretary of the Treasury or the designee 5 of the Secretary. 6 (26) SMART GRID.—The term ‘‘smart grid’’ 7 means a system that provides for any of the smart 8 grid functions set forth in section 1306(d) of the 9 Energy Independence and Security Act of 2007 (42 10 U.S.C. 17386(d)). 11 (27) STATE.—The term ‘‘State’’ includes the 12 District of Columbia, Puerto Rico, Guam, American 13 Samoa, the Virgin Islands, the Commonwealth of 14 Northern Mariana Islands, and any other territory 15 of the United States. 16 (28) TELECOMMUNICATIONS INFRASTRUCTURE 17 PROJECT.—The term ‘‘telecommunications infra- 18 structure project’’ means any project involving infra- 19 structure required to provide communications by 20 wire or radio. 21 (29) TRANSPORTATION INFRASTRUCTURE 22 PROJECT.—The term ‘‘transportation infrastructure 23 project’’ means any project for the construction, 24 maintenance, or enhancement of highways, roads, 25 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 11 •HR 658 IH bridges, transit and intermodal systems, inland wa- 1 terways, commercial ports, airports, high speed rail 2 and freight rail systems. 3 SEC. 4. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE 4 DEVELOPMENT BANK. 5 (a) ESTABLISHMENT OF NATIONAL INFRASTRUC- 6 TURE DEVELOPMENT BANK.—The National Infrastruc- 7 ture Development Bank is established as a wholly owned 8 Government corporation subject to chapter 91 of title 31, 9 United States Code (commonly known as the ‘‘Govern- 10 ment Corporation Control Act’’), except as otherwise pro- 11 vided in this Act. 12 (b) RESPONSIBILITY OF THE SECRETARY.—The Sec- 13 retary shall take such action as may be necessary to assist 14 in implementing the establishment of the bank in accord- 15 ance with this Act. 16 (c) CONFORMING AMENDMENT.—Section 9101(3) of 17 title 31, United States Code, is amended by inserting after 18 subparagraph (N) the following: 19 ‘‘(O) the National Infrastructure Develop- 20 ment Bank.’’. 21 SEC. 5. BOARD OF DIRECTORS. 22 (a) IN GENERAL.—The Bank shall have a Board of 23 Directors consisting of 7 members appointed by the Presi- 24 dent and with the advice and consent of the Senate. 25 VerDate Sep 11 2014 21:56 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H658.IH H658 kjohnson on DSK79L0C42 with BILLS 12 •HR 658 IH (b) QUALIFICATIONS.—The directors of the Board 1 shall include individuals representing different regions of 2 the United States and [Text truncated for display. Full text available on Congress.gov.]