National Infrastructure Investment Corporation Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 4780 To establish a Government corporation to provide loans and loan guarantees for infrastructure projects, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 22, 2019 Mr. CARBAJAL introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To establish a Government corporation to provide loans and loan guarantees for infrastructure projects, 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 Investment Corporation Act of 2019’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 (1) According to the American Society of Civil 8 Engineers 2017 Infrastructure Report, the current 9 condition of the infrastructure in the United States 10 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4780 IH earns a grade of D+ and an estimated 1 $4,500,000,000,000 is needed by 2025 to make con- 2 ditions adequate. 3 (2) Current and foreseeable demands on tradi- 4 tional funding for infrastructure expansion exceed 5 the resources to support much-needed infrastructure 6 programs. 7 (3) As of April 19, 2019, the top 50 strategic 8 infrastructure projects, including transportation, 9 water and wastewater, ports and waterways, and 10 telecommunications, totaled $289,370,000,000 in 11 unmet needs. 12 (4) Infrastructure needs are not limited to tra- 13 ditional roads and bridges but include a wide sector 14 of basic, physical, and organizational structures and 15 facilities that are needed for the effective and pro- 16 ductive operation of society. 17 (5) Investment in infrastructure not only cre- 18 ates jobs and economic growth and is a key compo- 19 nent of maintaining a global competitive edge but is 20 also fundamental to enhancing and preserving qual- 21 ity of life. 22 (6) The establishment of a Government cor- 23 poration that provides loans supported by pension 24 funds to finance qualified infrastructure projects 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4780 IH would attract needed supplemental capital for infra- 1 structure development. 2 SEC. 3. ESTABLISHMENT. 3 There is established a corporation to be known as the 4 ‘‘National Infrastructure Investment Corporation’’ (in this 5 Act referred to as the ‘‘Corporation’’), which shall be a 6 Government corporation as defined in section 103 of title 7 5, United States Code, whose purpose shall be to finance 8 infrastructure projects that are beyond the financing capa- 9 bilities of States and cities, including— 10 (1) prioritizing projects in a fair and efficient 11 manner; and 12 (2) minimizing financial costs to the Federal 13 government. 14 SEC. 4. BOARD OF DIRECTORS AND INSPECTOR GENERAL. 15 (a) ESTABLISHMENT.—The management of the Cor- 16 poration shall be vested in a board of directors (in this 17 Act referred to as the ‘‘Board’’). 18 (b) MEMBERSHIP.—The Board shall be composed of 19 7 members that meet the qualifications under subsection 20 (c), consisting of— 21 (1) 3 members appointed by the President, by 22 and with the advice and consent of the Senate; 23 (2) 1 member appointed by the majority leader 24 of the Senate; 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4780 IH (3) 1 member appointed by the minority leader 1 of the Senate; 2 (4) 1 member appointed by the Speaker of the 3 House of Representatives; and 4 (5) 1 member appointed by the minority leader 5 of the House of Representatives. 6 (c) QUALIFICATIONS.—Each member of the Board 7 shall— 8 (1) be a citizen of the United States; 9 (2) have significant demonstrated experience or 10 expertise in— 11 (A) infrastructure, and with respect to in- 12 frastructure, experience or expertise in— 13 (i) heavy construction; 14 (ii) labor; or 15 (iii) government policy; 16 (B) the financing, development, or oper- 17 ation of infrastructure projects, including the 18 evaluation and selection of eligible projects; or 19 (C) the management and administration of 20 a financial institution that provides financing 21 for infrastructure projects; and 22 (3) represent different geographic regions of the 23 United States to ensure rural areas and small com- 24 munities are represented. 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 4780 IH (d) INITIAL APPOINTMENTS.—Not later than 30 days 1 after the date of enactment of this Act, the President and 2 congressional leadership shall appoint the members of the 3 Board in accordance with subsections (b) and (c). 4 (e) CHAIR.—The Chair of the Board shall be des- 5 ignated by the President from among the members ap- 6 pointed under subsection (b). 7 (f) TERMS.—Each member of the Board shall hold 8 office for a term of 5 years, except as provided in the fol- 9 lowing paragraphs: 10 (1) TERMS OF INITIAL APPOINTEES.—As des- 11 ignated by the President and congressional leader- 12 ship at the time of appointment— 13 (A) the Chair shall be appointed for a term 14 of 5 years; 15 (B) the 4 members appointed by congres- 16 sional leadership shall be appointed for a term 17 of 4 years; and 18 (C) the 2 members appointed by the Presi- 19 dent shall be appointed for a term of 2 years. 20 (2) VACANCIES.—Vacancies shall be filled ac- 21 cording to the following: 22 (A) A vacancy shall be filled in the manner 23 in which the original appointment was made. 24 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 4780 IH (B) Any Board member elected to fill a va- 1 cancy occurring before the expiration of the 2 term for which the direct predecessor of the 3 member was appointed shall be appointed only 4 for the remainder of that term. 5 (C) In accordance with subparagraph (B), 6 a Board member may serve after the expiration 7 of the term of the direct predecessor of the 8 Board member until a successor has taken of- 9 fice. 10 (g) RESPONSIBILITIES OF THE BOARD.—The respon- 11 sibilities of the Board are as follows: 12 (1) Provide low-cost loans and loan guarantees 13 to eligible applicants under section 5. 14 (2) Develop strategic goals for the Corporation 15 based on the purpose of the Corporation. 16 (3) Monitor and assess the effectiveness of the 17 Corporation in achieving such strategic goals. 18 (4) Review and approve the annual business 19 plans, annual budgets, and long-term strategies of 20 and for infrastructure projects financed through the 21 Corporation. 22 (5) Develop, review, and approve annual reports 23 for the Corporation. 24 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 4780 IH (6) Employ at least 1 external auditor to con- 1 duct an annual audit of such infrastructure projects. 2 (7) Employ individuals as necessary to carry 3 out the provisions of this Act. 4 (8) Determine the operations and internal poli- 5 cies of the Corporation. 6 (h) INSPECTOR GENERAL.—The Board shall appoint 7 an employee of the Corporation to be known as the ‘‘In- 8 spector General’’ whose duties shall include the following: 9 (1) Conduct audits under section 6(b). 10 (2) Carry out, with respect to the Corporation, 11 duties and responsibilities established under the In- 12 spector General Act of 1978 (5 U.S.C. App.). 13 (3) Establish, maintain, and oversee such au- 14 dits as the Inspector General considers appropriate 15 under this Act. 16 SEC. 5. LOANS AND LOAN GUARANTEES. 17 (a) GENERAL AUTHORITY.—The Corporation shall 18 provide loans and loan guarantees to eligible applicants 19 for infrastructure projects in the United States. 20 (b) ELIGIBILITY REQUIREMENTS.—An applicant is 21 eligible for a loan or loan guarantee under this section if 22 the applicant— 23 (1) submits a detailed letter of interest to the 24 Corporation that— 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 4780 IH (A) describes the infrastructure project 1 and the location, purpose, and cost of the 2 project; 3 (B) outlines the proposed financial plan 4 with respect to such project, including the re- 5 quested loan or loan guarantee amount and the 6 proposed obligor; 7 (C) provides a status of environmental re- 8 view; and 9 (D) summarizes the geographic area af- 10 fected by such project; 11 (2) meets the prerequisites for assistance and 12 conditions for assistance described in subsections (g) 13 and (h) of section 502 of the Railroad Revitalization 14 and Regulatory Reform Act of 1976 (45 U.S.C. 15 822(g) and (h)). 16 (c) ELIGIBLE USES.—Loans and loan guarantees 17 provided under this section may be used only for eligible 18 project costs (as defined in section 601(a)(2) of title 23, 19 United States Code) for infrastructure projects, including 20 transportation, energy, environment, and telecommuni- 21 cations. 22 (d) CONSULTATION.—Prior to approving a loan or 23 loan guarantee under this section, the Corporation shall 24 require the applicant to consult with any member of the 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 4780 IH House of Representatives or member of the Senate whose 1 district or State, respectively, is affected by the infrastruc- 2 ture project to ensure that such project is meritorious and 3 to avoid any problems that may arise with respect to such 4 project. 5 (e) TIMING.—A loan provided under subsection (a) 6 shall be structured with respect to the expected timing and 7 duration of the construction and utility of an infrastruc- 8 ture project. 9 (f) TIFIA.—Except as inconsistent with this Act, the 10 Corporation shall provide for loans and loan guarantees 11 under this section in the same manner and subject to the 12 same requirements as the Secretary of Transportation en- 13 ters into loans and loan agreements under section 602 of 14 chapter 6 of title 23, United States Code, with respect 15 to the TIFIA program (as defined in section 601 of such 16 title). 17 SEC. 6. AUDITS AND REPORTS. 18 (a) REPORT TO CONGRESS.—Not later than one year 19 after the date of enactment of this Act, and annually 20 thereafter, the Board shall submit to Congress a report 21 on the activities of the Corporation. 22 (b) ANNUAL AUDIT.—Not later than one year after 23 the date of enactment of this Act, and annually thereafter, 24 the Inspector General of the Corporation shall— 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 4780 IH (1) conduct an account audit of the Corpora- 1 tion; 2 (2) conduct, supervise, and coordinate inves- 3 tigations of the business activities of the Corpora- 4 tion; 5 (3) ensure that the Corporation is acting con- 6 sistent with this Act; and 7 (4) submit the results of such audit to Con- 8 gress. 9 (c) GAO AUDIT AND REPORT.—Not later than 5 10 years after the date of enactment of this Act, and every 11 5 years thereafter, the Comptroller General of the United 12 States shall— 13 (1) conduct an evaluation of the activities of the 14 Corporation from the previous 5 fiscal years; and 15 (2) submit to Congress a report containing the 16 results of such evaluation, which shall include— 17 (A) an assessment of the impact and bene- 18 fits of each infrastructure project financed 19 through the Corporation; and 20 (B) a review of the effectiveness of such in- 21 frastructure project in accomplishing the goals 22 of this Act. 23 (d) APPLICATION WAITING PERIOD.—Before any 24 loan or loan guarantee is awarded under this Act, the Cor- 25 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 4780 IH poration shall submit to Congress a report describing the 1 application for such loan or loan guarantee. The Corpora- 2 tion may not award the loan or loan agreement before the 3 end of the 60-day period following the submission of such 4 report to Congress. The Corporation may award the loan 5 or loan agreement after such period unless Congress en- 6 acts a joint resolution disapproving the application with 7 an explanation for such disapproval. 8 (e) REJECTED APPLICATIONS.—An application that 9 is rejected under subsection (d) shall not be resubmitted 10 to the Corporation unless the basis for the disapproval of 11 the application has been addressed by the resubmitted ap- 12 plication. 13 SEC. 7. FUNDING. 14 (a) PENSION FUND LOANS.—For purposes of paying 15 for the administrative costs of the Corporation and to pro- 16 vide loans and loan guarantees for eligible infrastructure 17 projects, the Board may accept loans during fiscal years 18 2020 through 2024 from pension funds. 19 (b) LIMITATION.—The Board may not accept more 20 than $5,000,000,000 in loans under subsection (a) during 21 any single fiscal year. 22 (c) ANNUAL PERCENTAGE RATE.—With respect to a 23 loan described under subsection (a), the Board may not 24 VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 4780 IH pay an annual percentage rate of less than 3 percent or 1 more than 4 percent. 2 Æ VerDate Sep 11 2014 18:57 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\H4780.IH H4780 pamtmann on DSKBC07HB2PROD with BILLS