What This Bill Does
This bill creates a new Federal Infrastructure Bank that will provide loans, investments and loan guarantees to help finance infrastructure projects across the United States. The bank will focus on projects that generate revenue and provide public benefit, such as roads, ports, airports and water systems.
Who It Affects
Corporations, partnerships, state and local governments, and other eligible entities that want financing for infrastructure projects. The Treasury Secretary and Federal Reserve Board who oversee the bank's creation and operations. Investors who may buy bonds or equity securities from the bank's holding company.
Key Provisions
* The Secretary of the Treasury and Federal Reserve Board Chairman will select a Formation Agent within 60 days to establish the bank and its holding company (Sec. 3)
* The bank will provide equity investments, direct loans, indirect loans and loan guarantees for revenue-producing infrastructure projects, with at least 10 percent going to rural area projects (Sec. 5)
* The bank must maintain risk-based capital of at least 10 percent and cannot accept customer deposits or engage in traditional banking activities (Sec. 5)
* The bank cannot fund infrastructure projects in foreign countries or projects owned, controlled or financed by China's government, the Chinese Communist Party or the People's Liberation Army (Sec. 5)
* The bank will be exempt from federal, state and local taxes except for real property taxes (Sec. 9)
What Changes
A new Federal Infrastructure Bank will be created as a Delaware corporation with a national bank charter. This bank will have the authority to lend money and invest in infrastructure projects. Investors in the holding company can receive a tax credit of 10 percent on their original investment amount over five years (Sec. 10).
Important Definitions
Infrastructure projects include construction, alteration, operations, maintenance or repair of highways, bridges, ports, airports, railroads, public transit systems, water treatment facilities, storm water systems, dams, levees and other similar projects that provide public benefit.
Eligible entities include corporations, partnerships, joint ventures, trusts, states, state infrastructure banks, governmental entities and revolving funds.
Rural means any area not in a metropolitan statistical area with a population of 50,000 or greater.
State includes the 50 states, District of Columbia, Puerto Rico, American Samoa, Guam, U.S. Virgin Islands, Northern Mariana Islands and federally recognized Indian Tribes.
Effective Date
The tax exemptions become effective for taxable years ending on or after the date the bill becomes law (Sec. 9). The tax credit provisions become effective for taxable years ending after the date of enactment (Sec. 10). The bank must establish regional offices within 5 years of enactment (Sec. 4).
I
118TH CONGRESS
1ST SESSION
H. R. 490
To establish the Federal Infrastructure Bank to facilitate investment in,
and the long-term financing of, economically viable United States infra-
structure projects that provide a public benefit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 24, 2023
Mr. WEBSTER of Florida introduced the following bill; which was referred to
the Committee on Transportation and Infrastructure, and in addition to
the Committees on Financial Services, and Ways and Means, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To establish the Federal Infrastructure Bank to facilitate
investment in, and the long-term financing of, economi-
cally viable United States infrastructure projects that
provide a public benefit, 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 ‘‘Federal Infrastructure
4
Bank Act of 2023’’.
5
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•HR 490 IH
SEC. 2. DEFINITIONS.
1
For the purposes of this Act:
2
(1) BANK.—The term ‘‘Bank’’ means the Fed-
3
eral Infrastructure Bank established under section
4
4.
5
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
6
ty’’ means—
7
(A) a corporation, limited liability com-
8
pany, or any other legally established corporate
9
form;
10
(B) a partnership, including a public-pri-
11
vate partnership;
12
(C) a joint venture;
13
(D) a trust;
14
(E) a State;
15
(F) any other governmental entity, includ-
16
ing a political subdivision or any other instru-
17
mentality of a State;
18
(G) a revolving fund; or
19
(H) a State infrastructure bank.
20
(3) HOLDING COMPANY.—The term ‘‘Holding
21
Company’’ means the ‘‘Federal Infrastructure Bank
22
Holding Company’’ established under section 3.
23
(4) INFRASTRUCTURE
PROJECT.—The term
24
‘‘infrastructure project’’ means the construction,
25
consolidation, alteration, operations, maintenance, or
26
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•HR 490 IH
repair of projects, which provide public benefit or
1
use, in the following categories:
2
(A) Highway and roadway facilities, in-
3
cluding bridges and tunnels.
4
(B) Port or marine terminal facilities, in-
5
cluding approaches to marine terminal facilities
6
or inland port facilities, and port or marine
7
equipment including fixed equipment to serve
8
approaches to marine terminals or inland ports.
9
(C) Airports, heliports, vertiports, space-
10
ports, or air traffic control systems and facili-
11
ties.
12
(D) Transmission or distribution pipelines.
13
(E) Facilities or equipment for energy
14
transmission, distribution, or storage.
15
(F) Intercity passenger or freight rail
16
lines, facilities, or equipment.
17
(G) Intercity passenger bus facilities or
18
equipment.
19
(H) Public transportation facilities or
20
equipment.
21
(I) Inland waterways.
22
(J) Intermodal facilities or equipment.
23
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•HR 490 IH
(K) Water treatment and solid waste dis-
1
posal facilities and associated infrastructure
2
such as pipes.
3
(L) Storm water management systems.
4
(M) Dams and levees.
5
(N) Any other infrastructure project which
6
the Bank identifies as providing a public benefit
7
with regards to infrastructure.
8
(5) RISK-BASED
CAPITAL.—The term ‘‘risk-
9
based capital’’ shall have the meaning given that
10
term by the Board of Governors of the Federal Re-
11
serve System.
12
(6) RURAL.—The term ‘‘rural’’ means any area
13
not in a metropolitan statistical area with a popu-
14
lation of 50,000 or greater.
15
(7) STATE.—The term ‘‘State’’ means each of
16
the 50 several States of the United States, the Dis-
17
trict of Columbia, the Commonwealth of Puerto
18
Rico, American Samoa, Guam, the United States
19
Virgin Islands, the Commonwealth of the Northern
20
Mariana Islands, and each federally recognized In-
21
dian Tribe.
22
(8) STATE INFRASTRUCTURE BANK.—The term
23
‘‘State infrastructure bank’’ means a State infra-
24
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•HR 490 IH
structure bank or multi-State infrastructure bank
1
established pursuant to—
2
(A) section 350 of the National Highway
3
System Designation Act of 1995;
4
(B) section 1511(l) of the Transportation
5
Equity Act for the 21st Century;
6
(C) section 610 of title 23, United States
7
Code; or
8
(D) any State law as an agency, compo-
9
nent unit, or other governmental entity of the
10
State.
11
SEC. 3. SELECTION OF THE FORMATION AGENT.
12
(a) IN GENERAL.—Within 60 days of the date of en-
13
actment of this Act, the Secretary of the Treasury, in con-
14
sultation with the Chairman of the Board of Governors
15
of the Federal Reserve System, shall select a Formation
16
Agent which shall—
17
(1) make and file with the Secretary of the
18
Treasury an organization certificate for the Bank in
19
accordance with such rules and regulations as the
20
Secretary may prescribe, including the establishment
21
of the Holding Company; and
22
(2) have significant experience in infrastructure
23
and infrastructure finance.
24
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•HR 490 IH
(b) ESTABLISHMENT
OF
THE
FEDERAL
INFRA-
1
STRUCTURE BANK HOLDING COMPANY.—Within 30 days
2
after being selected under subsection (a), the Formation
3
Agent shall establish the Federal Infrastructure Bank
4
Holding Company, prescribe the governing structure of
5
the Holding Company, and establish the Federal Infra-
6
structure Bank Holding Company Board of Directors,
7
which shall—
8
(1) initially consist of 7 members;
9
(2) be elected by the shareholders of the Hold-
10
ing Company;
11
(3) serve 4-year terms, only 2 of which may be
12
consecutive;
13
(4) within the limitations of law and regulation,
14
determine and sign the articles of association that
15
govern the operations of the Holding Company, and
16
have the power to adopt, amend, and repeal bylaws
17
governing the performance of the powers and duties
18
granted to or imposed upon the Holding Company
19
by law; and
20
(5) select and effect the appointment of quali-
21
fied persons to fill the office of the Chief Executive
22
Officer of the Bank and such other offices as may
23
be provided for in the bylaws of the Holding Com-
24
pany and the Federal Infrastructure Bank.
25
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•HR 490 IH
(c) EARNINGS AND RESERVES NOT GOVERNMENT
1
FUNDS.—The earnings and reserves of the Holding Com-
2
pany shall be the sole property of the Holding Company
3
and are not Government funds or public funds.
4
(d) TREATMENT OF SHAREHOLDERS OF THE FORMA-
5
TION AGENT.—The Formation Agent shall issue equity se-
6
curities of the Holding Company to each shareholder of
7
the Formation Agent, in an amount that the Formation
8
Agent determines has a value equal to the value of equity
9
securities of the Formation Agent held by such share-
10
holder upon the establishment of the Holding Company.
11
SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUC-
12
TURE BANK.
13
(a) IN GENERAL.—The Formation Agent shall estab-
14
lish the Federal Infrastructure Bank as a Delaware cor-
15
poration and the Bank shall be a wholly owned subsidiary
16
of the Holding Company.
17
(b) FEDERAL BANKING CHARTER.—The Comptroller
18
of the Currency shall grant a national bank charter to the
19
Bank.
20
(c) REGIONAL OFFICES.—Within 5 years of the date
21
of enactment of this Act, the Bank shall establish regional
22
offices for the purpose of focusing on infrastructure
23
projects in different areas of the United States.
24
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•HR 490 IH
(d) BOARD OF DIRECTORS.—The Board of Directors
1
of the Holding Company established under section 3 shall
2
be the initial Board of Directors of the Bank.
3
(e) EARNINGS AND RESERVES NOT GOVERNMENT
4
FUNDS.—The earnings and reserves of the Bank are not
5
Government funds or public funds.
6
SEC. 5. FUNCTIONS OF THE BANK.
7
(a) IN GENERAL.—The Bank shall provide equity in-
8
vestments, direct loans, indirect loans, and loan guaran-
9
tees to eligible entities for the planning, pre-development,
10
design, construction, operations or maintenance of rev-
11
enue-producing infrastructure projects in the United
12
States with sufficient revenue sources and guarantees to
13
support the interest and principal payments to the Bank.
14
(b) SUPPORT FOR RURAL PROJECTS.—Not less than
15
10 percent of the dollar amount of loans, equity invest-
16
ments, and loan guarantees provided by the Bank shall
17
be with respect to infrastructure projects in rural areas.
18
(c) LEVERAGING BANK INVESTMENTS.—The Bank
19
shall attempt to cross subsidize non-revenue infrastructure
20
projects with revenue generating infrastructure projects to
21
diversify the loan portfolio.
22
(d) NO COMMERCIAL OR INVESTMENT BANKING AC-
23
TIVITIES.—Notwithstanding any other provision of law,
24
the Bank is prohibited from—
25
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•HR 490 IH
(1) accepting customer deposits; or
1
(2) engaging in financial or investment banking
2
activities, except with respect to the Bank’s own rev-
3
enues.
4
(e) PLEDGE AND CREDIT FACILITIES.—
5
(1) PLEDGE.—The Bank shall have the author-
6
ity to pledge its loans to the discount window of the
7
Board of Governors of the Federal Reserve System.
8
(2) PURCHASE
OF
OBLIGATIONS.—The Sec-
9
retary of the Treasury may purchase obligations
10
issued by the Bank in the same manner and under
11
the same requirements that the Secretary purchases
12
obligations under section 306(c) of the Federal
13
Home Loan Mortgage Corporation Act (12 U.S.C.
14
1455(c)).
15
(f) LEVERAGE LIMITATION.—The Bank shall main-
16
tain risk-based capital at no less than 10 percent, collec-
17
tively for the Bank and the Holding Company.
18
(g) LIFECYCLE.—The Bank shall ensure that infra-
19
structure projects account for long-term operations, main-
20
tenance, and life-cycle costs and obligations to ensure that
21
the infrastructure projects maximize the useful life of each
22
applicable asset.
23
(h) INFRASTRUCTURE DELIVERY.—The Bank, as a
24
clearinghouse for infrastructure finance, may provide im-
25
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•HR 490 IH
plementation advisory assistance, directly or indirectly, to
1
infrastructure projects.
2
(i) CREDIT RATING.—The Bank shall accept credit
3
ratings consistent with typical infrastructure market prac-
4
tice to enhance deployment of capital.
5
(j)
PROHIBITION
ON
FUNDING
OF
FOREIGN
6
PROJECTS.—The Bank is prohibited from providing eq-
7
uity investments, direct loans, indirect loans, and loan
8
guarantees for infrastructure projects not located within
9
the United States.
10
(k) PROHIBITION WITH RESPECT TO CHINA.—The
11
Bank is prohibited from providing equity investments, di-
12
rect loans, indirect loans, and loan guarantees for infra-
13
structure projects that are owned, directed, controlled, fi-
14
nanced, or influenced by the Government of the People’s
15
Republic of China, the Chinese Communist Party, or the
16
People’s Liberation Army.
17
SEC. 6. HOLDING COMPANY SECURITIES.
18
(a) EQUITY SECURITIES.—
19
(1) IN GENERAL.—The Holding Company shall
20
issue such equity securities as the Board of Direc-
21
tors of the Holding Company determines appro-
22
priate.
23
(2) DIVIDENDS.—The Holding Company may
24
make such dividend payments on the equity securi-
25
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•HR 490 IH
ties of the Holding Company as the Holding Com-
1
pany determines appropriate.
2
(3) RESTRICTION
ON
VOTING
RIGHTS.—Any
3
holder of an equity security of the Holding Company
4
that is a non-United States individual or entity shall
5
have no voting rights with respect to such equity se-
6
curity.
7
(b) BONDS.—
8
(1) STANDARD BONDS.—The Holding Company
9
may issue standard bonds with maturities up to 30
10
years or longer, as needed.
11
(2) OTHER
BONDS.—The Holding Company
12
may issue other bonds, notes, and marketable securi-
13
ties with maturities and interest rates as the Hold-
14
ing Company determines appropriate.
15
(3) AUTHORITY TO PURCHASE BONDS.—
16
(A) IN GENERAL.—The Secretary of the
17
Treasury and the Board of Governors of the
18
Federal Reserve System may purchase bonds
19
issued under this section.
20
(B) LIMITATION.—The aggregate amount
21
of outstanding bonds purchased by the Sec-
22
retary under this paragraph may not exceed 5
23
percent of the total amount of the outstanding
24
bonds of the Holding Company.
25
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•HR 490 IH
(c) LEVERAGE LIMITATION.—The Holding Company
1
shall maintain risk-based capital at no less than 10 per-
2
cent, collectively for the Bank and the Holding Company.
3
(d) INVESTMENT
LIMITATION
ON
NON-UNITED
4
STATES INDIVIDUALS AND ENTITIES.—
5
(1) Non-United States individuals and entities
6
may not hold more than 25 percent, in the aggre-
7
gate, of the equity securities and bonds of the Hold-
8
ing Company.
9
(2) The Formation Agent and Holding Com-
10
pany are prohibited from issuing any bond, note,
11
marketable security, or other financial instrument to
12
any person or entity—
13
(A) affiliated with, owned by, or directed,
14
controlled, financed, or influenced by the Gov-
15
ernment of the People’s Republic of China, the
16
Chinese Communist Party, or the People’s Lib-
17
eration Army; or
18
(B) affiliated with, owned by, or directed,
19
controlled, financed, or influenced by a State
2
[Text truncated for display. Full text available on Congress.gov.]