National Infrastructure Bank Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 6422 To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of a National Infrastruc- ture Bank, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 31, 2020 Mr. DANNY K. DAVIS of Illinois (for himself and Mr. MOULTON) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Transportation and In- frastructure, Financial Services, Education and Labor, Natural Re- sources, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall with- in the jurisdiction of the committee concerned A BILL To facilitate efficient investments and financing of infrastruc- ture projects and new job creation through the establish- ment of a National Infrastructure 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 Bank Act of 2020’’. 5 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6422 IH SEC. 2. FINDINGS. 1 Congress finds the following: 2 (1) Throughout our Nation’s history, national 3 banks have played a crucial role in financing our 4 Nation’s public infrastructure, which in turn contrib- 5 uted to the United States becoming the world’s lead- 6 ing producing nation. 7 (2) Canals, the Transcontinental Railroad, the 8 Hoover Dam, rural electrification, and the national 9 system of roads and bridges are all examples of in- 10 vestments in infrastructure that created the condi- 11 tions for improved productivity, job creation, and 12 economic growth. 13 (3) Four previous national banks financed such 14 infrastructure, each according to a development 15 plan: The First (1791–1811) and Second (1816– 16 1836) Banks of the United States, President Lin- 17 coln’s national banking system, and President 18 Franklin Roosevelt’s Reconstruction Finance Cor- 19 poration (1932–1957). 20 (4) However, according to the American Society 21 of Civil Engineers (ASCE) in a 2017 report, the 22 current condition of the infrastructure in the United 23 States earns a grade point average of D+, and an 24 estimated $4,590,000,000,000 investment is needed 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6422 IH by 2025 to bring the following systems to a state of 1 good repair (amounts in parentheses): 2 (A) Roads, bridges, and transit 3 ($2,042,000,000,000). 4 (B) Electricity grids ($934,000,000,000). 5 (C) Schools ($870,000,000,000). 6 (D) Dams, levees, waterways, and ports 7 ($162,000,000,000). 8 (E) Airports ($157,000,000,000). 9 (F) Rail ($154,000,000,000). 10 (G) Drinking water and wastewater sys- 11 tems ($150,000,000,000). 12 (H) Public parks and recreation 13 ($114,000,000,000). 14 (I) Hazardous and solid waste 15 ($7,000,000,000). 16 (5) In addition, expanded investment is needed 17 in new manufacturing centers, affordable housing, 18 broadband access, science and technology drivers, to 19 accommodate population growth and migration, and 20 for other improvements in rural, urban, and low-in- 21 come areas that the private sector is not currently 22 serving. 23 (6) Although Federal grant programs, along 24 with matching State and local funding, should con- 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6422 IH tinue to play a central role in financing infrastruc- 1 ture in the United States, current and foreseeable 2 demands on existing Federal, State, and local budg- 3 ets exceed the resources to support these programs 4 by a wide margin. ASCE estimates that funds are 5 available for only about half of the infrastructure it 6 currently monitors. Meanwhile, long-term savers, in- 7 cluding central banks, pension funds, corporations, 8 sovereign wealth funds, and insurance companies, 9 have a growing interest in infrastructure investment. 10 (7) The establishment of a United States public 11 deposit money bank would provide direct loans and 12 other financing of up to $4,000,000,000,000 for 13 qualifying infrastructure projects. Such funding 14 would be adequate to finance all of the United 15 States identified infrastructure needs, in all parts of 16 the country, according to strategic plans. At the 17 same time, it would return the United States to its 18 most recent ‘‘golden age’’ when a National Infra- 19 structure Bank was in place (1933–1957), during 20 which time total factor productivity advanced by 3.5 21 percent per year, the economy grew on average 5.5 22 percent per year, income inequality fell by one-third, 23 and Federal and State tax receipts rose dramati- 24 cally. 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6422 IH SEC. 3. DEFINITIONS. 1 For purposes of this Act, the following definitions 2 apply unless otherwise specified in this Act: 3 (1) BANK.—The term ‘‘Bank’’ means the Na- 4 tional Infrastructure Bank established under section 5 4(a). 6 (2) BLENDED FINANCING.—The term ‘‘blended 7 financing’’ means financing provided through any 8 combination of loans or bond financing, in coopera- 9 tion with private lenders or State revolving funds, 10 that is integrated into a single agreement with a sin- 11 gle set of financial terms. 12 (3) BOARD.—The term ‘‘Board’’ means the Na- 13 tional Infrastructure Bank Board. 14 (4) BOND.—The terms ‘‘Bond’’ means any 15 bond issued in accordance with this Act if— 16 (A) the proceeds from the sale of the bond 17 are to be used for expenditures incurred after 18 the date of issuance with respect to any infra- 19 structure project or other purpose, subject to 20 such rules as the Bank may provide; 21 (B) the bond is issued in registered form; 22 (C) the bond has such terms, and carries 23 interest in such an amount, as determined by 24 the Bank; and 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 6422 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 (5) CHIEF ASSET AND LIABILITY MANAGEMENT 5 OFFICER.—The term ‘‘chief asset and liability man- 6 agement officer’’ means the chief individual respon- 7 sible for coordinating the management of assets and 8 liabilities of the Bank. 9 (6) CHIEF COMPLIANCE OFFICER.—The terms 10 ‘‘chief compliance officer’’ and ‘‘CCO’’ mean the 11 chief individual responsible for overseeing and man- 12 aging the compliance and regulatory affairs of the 13 Bank. 14 (7) CHIEF EXECUTIVE OFFICER.—The terms 15 ‘‘chief executive officer’’ and ‘‘CEO’’ mean the indi- 16 vidual serving as the executive director of the Bank. 17 (8) CHIEF FINANCIAL OFFICER.—The terms 18 ‘‘chief financial officer’’ and ‘‘CFO’’ mean the chief 19 individual responsible for managing the financial 20 risks, planning, and reporting of the Bank. 21 (9) CHIEF LOAN ORIGINATION OFFICER.—The 22 term ‘‘chief loan origination officer’’ means the chief 23 individual responsible for managing the processing 24 of new loans provided by the Bank. 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 6422 IH (10) CHIEF OPERATIONS OFFICER.—The terms 1 ‘‘chief operations officer’’ and ‘‘COO’’ mean the 2 chief individual responsible for the retail operations 3 of the Bank and its branches, including its adminis- 4 trative, human resource, and information technology 5 systems. 6 (11) CHIEF RISK OFFICER.—The terms ‘‘chief 7 risk officer’’ and ‘‘CRO’’ mean the chief individual 8 responsible for managing operational and compli- 9 ance-related risks of the Bank. 10 (12) CHIEF TREASURY OFFICER.—The term 11 ‘‘chief treasury officer’’ means the chief individual 12 responsible for managing the Bank’s treasury oper- 13 ations. 14 (13) COMMUNITY DEVELOPMENT INFRASTRUC- 15 TURE PROJECT.—The term ‘‘community develop- 16 ment infrastructure project’’ means any project for 17 the development of affordable housing, schools, pub- 18 lic parks and recreation, libraries, or public facilities 19 that train workers and build labor skills. 20 (14) CONNECTIVITY.—The term ‘‘connectivity’’ 21 means the linkages in transportation, energy, com- 22 munications, and community development infrastruc- 23 ture, as well as manufacturing and data centers, 24 that tie geographic areas together into economic 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 6422 IH units, including networks of commuter routes, rail- 1 ways, shipping lanes, and internet cables, and are 2 best expressed in map form. 3 (15) COST BENEFIT ANALYSIS.—The term 4 ‘‘cost benefit analysis’’ means the comparison of the 5 stream of costs for a potential project over its useful 6 lifetime, to its public benefits over that time, with 7 cost and benefit flows expressed on a common basis 8 in terms of net present value. 9 (16) DEVELOPMENT.—The terms ‘‘develop- 10 ment’’ and ‘‘develop’’ mean, with respect to an infra- 11 structure project, any— 12 (A) preconstruction planning, feasibility re- 13 view for stand-alone projects or for bundled 14 projects, permitting, design work, life-cycle 15 maintenance planning, and other 16 preconstruction activities; and 17 (B) construction, reconstruction, rehabili- 18 tation, replacement, or expansion. 19 (17) DIRECT LOAN.—The term ‘‘direct loan’’ 20 has the meaning given the term in section 502 of the 21 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 22 (18) DISADVANTAGED COMMUNITY.—The term 23 ‘‘disadvantaged community’’ means a county, city, or 24 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 6422 IH partial census tract area, with any of the following 1 characteristics: 2 (A) A median household income below 80 3 percent of the State nonmetropolitan median 4 household income. 5 (B) Persistent rural poverty, in which 20 6 percent or more of the population has been liv- 7 ing below the poverty line for the last 30 years. 8 (19) ENERGY INFRASTRUCTURE PROJECT.— 9 The term ‘‘energy infrastructure project’’ means any 10 project for energy transmission and distribution, en- 11 ergy generation as needed, energy efficiency en- 12 hancement for buildings, and energy storage. 13 (20) ENTITY.—The term ‘‘entity’’ means a 14 State, municipality, or other governmental agency 15 (including a political subdivision or any other instru- 16 mentality of a State or a revolving fund), publicly 17 owned utility, public authority or corporation, part- 18 nership (including a public-private partnership), 19 joint venture, or trust. 20 (21) ENVIRONMENTAL INFRASTRUCTURE 21 PROJECT.—The term ‘‘environmental infrastructure 22 project’’ means any project for the establishment, 23 deferred maintenance, or enhancement, including se- 24 curity enhancement, of any drinking water and 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 6422 IH wastewater treatment facility, storm water manage- 1 ment system, flood gate, dam, levee, dredging, wet- 2 land restoration or other open space conservation, 3 infill development, solid waste disposal facility, haz- 4 ardous waste facility, or industrial site cleanup or 5 remediation project. 6 (22) GENERAL COUNSEL.—The term ‘‘general 7 counsel’’ means the individual who serves as the 8 chief lawyer for the Bank. 9 (23) GREENHOUSE GASES.—The term ‘‘green- 10 house gases’’ means any man-made gas designated 11 as a greenhouse gas by the Administrator of the En- 12 vironmental Protection Agency. 13 (24) INFRASTRUCTURE PROJECT.—The term 14 ‘‘infrastructure project’’ means any transportation, 15 energy, environmental, telecommunications, commu- 16 nity development, or other infrastructure project for 17 which a development plan is presented to the Bank 18 for financing. It shall exclude military infrastruc- 19 ture. 20 (25) LOAN GUARANTEE.—The term ‘‘loan guar- 21 antee’’ has the same meaning as in section 502 of 22 the Federal Credit Reform Act of 1990 (2 U.S.C. 23 661a). 24 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 6422 IH (26) PRODUCTIVITY.—The term ‘‘productivity’’ 1 means the improved efficiency in the economy asso- 2 ciated with investments in public and private infra- 3 structure. It is calculated as the change in the value 4 of total production, minus the change in the value 5 of inputs going into production. 6 (27) PUBLIC BENEFIT.—The term ‘‘public ben- 7 efit’’ means the clear and measurable benefit to soci- 8 ety resulting from the public’s use of the infrastruc- 9 ture with respect to which a project is carried out, 10 or the improvement such infrastructure provides 11 in— 12 (A) economic growth and productivity; 13 (B) air and water quality; 14 (C) energy savings; 15 (D) high-wage jobs; 16 (E) poverty reduction; or 17 (F) increased Federal, State, and local rev- 18 enues. 19 (28) PUBLIC-PRIVATE PARTNERSHIP.—The 20 term ‘‘public-private partnership’’ means any enti- 21 ty— 22 (A)(i) which is undertaking the develop- 23 ment of all or part of an infrastructure project, 24 which will have a public benefit, pursuant to re- 25 VerDate Sep 11 2014 22:19 Apr 13, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H6422.IH H6422 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 6422 IH quirements established in one or more contracts 1 between the entity and a State or an instru- 2 mentality of a State; or 3 (ii) the activities of which, with respect to 4 such an infrastructure project, are subject to 5 regulation by a State or any instrumentality of 6 a State; and 7 (B) which owns, leases, or operates, or will 8 own, lease, or operate, the project in whole or 9 in part, and at least one of the participants in 10 the entity is a nongovernmental entity. 11 (29) R [Text truncated for display. 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