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Title II — Putting workers back on the job while rebuilding and modernizing America

H.R. 2821 · 113th Congress · Jul 24, 2013 · Lineage

II Putting workers back on the job while rebuilding and modernizing America

A Teacher stabilization

Sec. 201 Purpose

The purpose of this subtitle is to provide funds to States to prevent teacher layoffs and support the creation of additional jobs in public early childhood, elementary, and secondary education in the 2013–2014 and 2014–2015 school years.

Sec. 202 Grants for the outlying areas and the Secretary of the Interior; availability of funds

(a)
Reservation of funds— From the amount appropriated to carry out this subtitle under section 212, the Secretary—
(1)
shall reserve up to one-half of one percent to provide assistance to the outlying areas on the basis of their respective needs, as determined by the Secretary, for activities consistent with this subtitle under such terms and conditions as the Secretary may determine;
(2)
shall reserve up to one-half of one percent to provide assistance to the Secretary of the Interior to carry out activities consistent with this subtitle, in schools operated or funded by the Bureau of Indian Education; and
(3)
may reserve up to $2,000,000 for administration and oversight of this subtitle, including program evaluation.
(b)
Availability of funds— Funds made available under section 212 shall remain available to the Secretary until September 30, 2014.

Sec. 203 State allocation

(a)
Allocation— After reserving funds under section 203(a), the Secretary shall allocate the remaining funds appropriated under section 212 to States, of which—
(1)
60 percent shall be allocated to States on the basis of their relative population of individuals aged 5 through 17; and
(2)
40 percent shall be allocated to States on the basis of their relative total population.
(b)
Awards— The Secretary shall award a State’s allocation under subsection (a) to the Governor of the State only if the Secretary has approved the State’s application under section 205.
(c)
Alternate distribution of funds—
(1)
In general— If, within 30 days after the date of enactment of this Act, a Governor has not submitted an approvable application to the Secretary, the Secretary shall, consistent with paragraph (2), provide for funds allocated to that State to be distributed to another entity or other entities in the State for the support of early childhood, elementary, and secondary education, under such terms and conditions as the Secretary may establish.
(2)
Maintenance of effort—
(A)
Governor assurance— The Secretary shall not allocate funds under paragraph (1) unless the Governor of the State provides an assurance to the Secretary that the State will for fiscal years 2014 and 2015 meet the requirements of section 209.
(B)
Allocations to other entities— Notwithstanding subparagraph (A), the Secretary may allocate up to 50 percent of the funds that are available to the State under paragraph (1) to another entity or entities in the State, provided that the State educational agency submits data to the Secretary demonstrating that the State will for fiscal year 2014 meet the requirements of section 209(a) or the Secretary otherwise determines that the State will meet those requirements, or such comparable requirements as the Secretary may establish, for that year.
(3)
Requirements— An entity that receives funds under paragraph (1) shall use those funds in accordance with the requirements of this subtitle.
(d)
Reallocation— If a State does not receive funding under this subtitle or only receives a portion of its allocation under subsection (c), the Secretary shall reallocate the State’s entire allocation or the remaining portion of its allocation, as the case may be, to the remaining States in accordance with subsection (a).

Sec. 204 State application

The Governor of a State desiring to receive a grant under this subtitle shall submit an application to the Secretary within 30 days of the date of enactment of this Act, in such manner, and containing such information as the Secretary may reasonably require to determine the State’s compliance with applicable provisions of law.

Sec. 205 State reservation and responsibilities

(a)
Reservation— Each State receiving a grant under section 204(b) may reserve—
(1)
not more than 10 percent of the grant funds for awards to State-funded early learning programs; and
(2)
not more than 2 percent of the grant funds for the administrative costs of carrying out its responsibilities under this subtitle.
(b)
State responsibilities— Each State receiving a grant under this subtitle shall, after reserving any funds under subsection (a)—
(1)
use the remaining grant funds only for awards to local educational agencies for the support of early childhood, elementary, and secondary education;
(2)
distribute those funds, through subgrants, to its local educational agencies by distributing—
(A)
60 percent on the basis of the local educational agencies’ relative shares of enrollment; and
(B)
40 percent on the basis of the local educational agencies’ relative shares of funds received under part A of title I of the Elementary and Secondary Education Act of 1965 for fiscal year 2013; and
(3)
make those funds available to local educational agencies no later than 100 days after receiving a grant from the Secretary.
(c)
Prohibitions— A State shall not use funds received under this subtitle to directly or indirectly—
(1)
establish, restore, or supplement a rainy-day fund;
(2)
supplant State funds in a manner that has the effect of establishing, restoring, or supplementing a rainy-day fund;
(3)
reduce or retire debt obligations incurred by the State; or
(4)
supplant State funds in a manner that has the effect of reducing or retiring debt obligations incurred by the State.

Sec. 206 Local educational agencies

Each local educational agency that receives a subgrant under this subtitle—
(1)
shall use the subgrant funds only for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, recall or rehire former employees, or hire new employees to provide early childhood, elementary, or secondary educational and related services;
(2)
shall obligate those funds not later than September 30, 2015; and
(3)
may not use those funds for general administrative expenses or for other support services or expenditures, as those terms are defined by the National Center for Education Statistics in the Common Core of Data, as of the date of enactment of this Act.

Sec. 207 Early learning

Each State-funded early learning program that receives funds under this subtitle shall—
(1)
use those funds only for compensation, benefits, and other expenses, such as support services, necessary to retain early childhood educators, recall or rehire former early childhood educators, or hire new early childhood educators to provide early learning services; and
(2)
obligate those funds not later than September 30, 2015.

Sec. 208 Maintenance of effort

(a)
Requirement— The Secretary shall not allocate funds to a State under this subtitle unless the State provides an assurance to the Secretary that—
(1)
for State fiscal year 2014—
(A)
the State will maintain State support for early childhood, elementary, and secondary education (in the aggregate or on the basis of expenditure per pupil) and for public institutions of higher education (not including support for capital projects or for research and development or tuition and fees paid by students) at not less than the level of such support for each of the two categories for State fiscal year 2013; or
(B)
the State will maintain State support for early childhood, elementary, and secondary education and for public institutions of higher education (not including support for capital projects or for research and development or tuition and fees paid by students) at a percentage of the total revenues available to the State that is equal to or greater than the percentage provided for State fiscal year 2013; and
(2)
for State fiscal year 2015—
(A)
the State will maintain State support for early childhood, elementary, and secondary education (in the aggregate or on the basis of expenditure per pupil) and for public institutions of higher education (not including support for capital projects or for research and development or tuition and fees paid by students) at not less than the level of such support for each of the two categories for State fiscal year 2014; or
(B)
the State will maintain State support for early childhood, elementary, and secondary education and for public institutions of higher education (not including support for capital projects or for research and development or tuition and fees paid by students) at a percentage of the total revenues available to the State that is equal to or greater than the percentage provided for State fiscal year 2014.
(b)
Waiver— The Secretary may waive the requirements of this section if the Secretary determines that a waiver would be equitable due to—
(1)
exceptional or uncontrollable circumstances, such as a natural disaster; or
(2)
a precipitous decline in the financial resources of the State.

Sec. 209 Reporting

Each State that receives a grant under this subtitle shall submit, on an annual basis, a report to the Secretary that contains—
(1)
a description of how funds received under this part were expended or obligated; and
(2)
an estimate of the number of jobs supported by the State using funds received under this subtitle.

Sec. 210 Definitions

In this subtitle:
(1)
ESEA definitions— Except as otherwise provided, the terms “local educational agency”, “outlying area”, “Secretary”, “State”, and “State educational agency” have the meanings given those terms in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
(2)
State— The term “State” does not include an outlying area.
(3)
Early child educator— The term “early childhood educator” means an individual who—
(A)
works directly with children in a State-funded early learning program in a low-income community;
(B)
is involved directly in the care, development, and education of infants, toddlers, or young children age five and under; and
(C)
has completed a baccalaureate or advanced degree in early childhood development or early childhood education, or in a field related to early childhood education.
(4)
State-funded early learning program— The term “State-funded early learning program” means a program that provides educational services to children from birth to kindergarten entry and receives funding from a State.

Sec. 211 Authorization of appropriations

There are authorized to be appropriated, and there are appropriated, $30,000,000,000 to carry out this subtitle for fiscal year 2014.

B First responder stabilization

Sec. 212 Purpose

The purpose of this subtitle is to provide funds to States and localities to prevent layoffs of, and support the creation of additional jobs for, law enforcement officers and other first responders.

Sec. 213 Grant program

The Attorney General shall carry out a competitive grant program pursuant to section 1701 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd) for hiring, rehiring, or retention of career law enforcement officers under part Q of such title. Grants awarded under this section shall not be subject to subsections (g) or (i) of section 1701 or to section 1704 of such Act (42 U.S.C. 3796dd–3(c)).

Sec. 214 Appropriations

There are hereby appropriated to the Community Oriented Policing Stabilization Fund out of any money in the Treasury not otherwise obligated, $5,000,000,000, to remain available until September 30, 2012, of which $4,000,000,000 shall be for the Attorney General to carry out the competitive grant program under section 214; and of which $1,000,000,000 shall be transferred by the Attorney General to a First Responder Stabilization Fund from which the Secretary of Homeland Security shall make competitive grants for hiring, rehiring, or retention pursuant to the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 et seq.), to carry out section 34 of such Act (15 U.S.C. 2229a). In making such grants, the Secretary may grant waivers from the requirements in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), (c)(2), and (c)(4)(A) of such section 34. Of the amounts appropriated herein, not to exceed $8,000,000 shall be for administrative costs of the Attorney General, and not to exceed $2,000,000 shall be for administrative costs of the Secretary of Homeland Security.

C School modernization

I Elementary and secondary schools

Sec. 221 Purpose

The purpose of this part is to provide assistance for the modernization, renovation, and repair of elementary and secondary school buildings in public school districts across America in order to support the achievement of improved educational outcomes in those schools.

Sec. 222 Authorization of appropriations

There are authorized to be appropriated, and there are appropriated, $25,000,000,000 to carry out this part, which shall be available for obligation by the Secretary until September 30, 2014.

Sec. 223 Allocation of funds

(a)
Reservations— Of the amount made available to carry out this part, the Secretary shall reserve—
(1)
one-half of one percent for the Secretary of the Interior to carry out modernization, renovation, and repair activities described in section 226 in schools operated or funded by the Bureau of Indian Education;
(2)
one-half of one percent to make grants to the outlying areas for modernization, renovation, and repair activities described in section 226; and
(3)
such funds as the Secretary determines are needed to conduct a survey, by the National Center for Education Statistics, of the school construction, modernization, renovation, and repair needs of the public schools of the United States.
(b)
State allocation— After reserving funds under subsection (a), the Secretary shall allocate the remaining amount among the States in proportion to their respective allocations under part A of title I of the Elementary and Secondary Education Act of 1965 (in this part referred to as the “ESEA”) (20 U.S.C. 6311 et seq.) for fiscal year 2013, except that—
(1)
the Secretary shall allocate 40 percent of such remaining amount to the 100 local educational agencies with the largest numbers of children aged 5–17 living in poverty, as determined using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, in proportion to those agencies’ respective allocations under part A of title I of the ESEA for fiscal year 2013; and
(2)
the allocation to any State shall be reduced by the aggregate amount of the allocations under paragraph (1) to local educational agencies in that State.
(c)
Remaining allocation—
(1)
States— If a State does not apply for its allocation under subsection (b) (or applies for less than the full allocation for which it is eligible) or does not use that allocation in a timely manner, the Secretary may—
(A)
reallocate all or a portion of that allocation to the other States in accordance with subsection (b); or
(B)
use all or a portion of that allocation to make direct allocations to local educational agencies within the State based on their respective allocations under part A of title I of the ESEA for fiscal year 2013 or such other method as the Secretary may determine.
(2)
Local educational agencies— If a local educational agency does not apply for its allocation under subsection (b)(1), applies for less than the full allocation for which it is eligible, or does not use that allocation in a timely manner, the Secretary may reallocate all or a portion of its allocation to the State in which that agency is located.

Sec. 224 State use of funds

(a)
Reservation— Each State that receives a grant under this part may reserve not more than one percent of the State’s allocation under section 223(b) for the purpose of administering the grant, except that no State may reserve more than $750,000 for this purpose.
(b)
Funds to local educational agencies—
(1)
Formula subgrants— From the grant funds that are not reserved under subsection (a), a State shall allocate at least 50 percent to local educational agencies, including charter schools that are local educational agencies, that did not receive funds under section 223(b)(1) from the Secretary, in accordance with their respective allocations under part A of title I of the ESEA for fiscal year 2013, except that no such local educational agency shall receive less than $10,000.
(2)
Additional subgrants— The State shall use any funds remaining, after reserving funds under subsection (a) and allocating funds under paragraph (1), for subgrants to local educational agencies that did not receive funds under section 223(b)(1), including charter schools that are local educational agencies, to support modernization, renovation, and repair projects that the State determines, using objective criteria, are most needed in the State, with priority given to projects in rural local educational agencies.
(c)
Remaining funds— If a local educational agency does not apply for an allocation under subsection (b)(1), applies for less than its full allocation, or fails to use that allocation in a timely manner, the State may reallocate any unused portion to other local educational agencies in accordance with subsection (b).

Sec. 225 State and local applications

(a)
State application— A State that desires to receive a grant under this part shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require, which shall include—
(1)
an identification of the State agency or entity that will administer the program under this part; and
(2)
the State’s process for determining how the grant funds will be distributed and administered, including—
(A)
how the State will determine the criteria and priorities in making subgrants under section 224(b)(2);
(B)
any additional criteria the State will use in determining which projects it will fund under that section;
(C)
a description of how the State will consider—
(i)
the needs of local educational agencies for assistance under this part;
(ii)
the impact of potential projects on job creation in the State;
(iii)
the fiscal capacity of local educational agencies applying for assistance;
(iv)
the percentage of children in those local educational agencies who are from low-income families; and
(v)
the potential for leveraging assistance provided by the program under this part through matching or other financing mechanisms;
(D)
a description of how the State will ensure that the local educational agencies receiving subgrants meet the requirements of this part;
(E)
a description of how the State will ensure that the State and its local educational agencies meet the deadlines established in section 228;
(F)
a description of how the State will give priority to the use of green practices that are certified, verified, or consistent with any applicable provisions of—
(i)
the LEED Green Building Rating System;
(ii)
Energy Star;
(iii)
the CHPS Criteria;
(iv)
Green Globes; or
(v)
an equivalent program adopted by the State or another jurisdiction with authority over the local educational agency;
(G)
a description of the steps that the State will take to ensure that local educational agencies receiving subgrants under this part will adequately maintain any facilities that are modernized, renovated, or repaired with such subgrant funds; and
(H)
such additional information and assurances as the Secretary may require.
(b)
Local application— A local educational agency that is eligible under section 223(b)(1) that desires to receive a grant under this part shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require, which shall include—
(1)
a description of how the local educational agency will meet the deadlines and requirements of this part;
(2)
a description of the steps that the local educational agency will take to adequately maintain any facilities that are modernized, renovated, or repaired with funds under this part; and
(3)
such additional information and assurances as the Secretary may require.

Sec. 226 Use of funds

(a)
In general— Funds awarded to local educational agencies under this part shall be used only for either or both of the following modernization, renovation, or repair activities in facilities that are used for elementary or secondary education or for early learning programs:
(1)
Direct payments for school modernization, renovation, or repair.
(2)
To pay interest on bonds or payments for other financing instruments that are newly issued for the purpose of financing school modernization, renovation, or repair.
(b)
Supplement, not supplant— Funds made available under this part shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to modernize, renovate, or repair eligible school facilities.
(c)
Prohibition— Funds awarded to local educational agencies under this part may not be used for—
(1)
new construction;
(2)
payment of routine maintenance costs; or
(3)
modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public.

Sec. 227 Private schools

(a)
In general— Section 9501 of the ESEA (20 U.S.C. 7881) shall apply to this part in the same manner as it applies to activities under that Act, except that—
(1)
such section 9501 shall not apply with respect to the title to any real property modernized, renovated, or repaired with assistance provided under this part;
(2)
educational services or other benefits funded under this part for private schools shall be provided only to private, nonprofit elementary or secondary schools with a rate of child poverty of at least 40 percent and may include only—
(A)
modifications of school facilities necessary to meet the standards applicable to public schools under the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);
(B)
modifications of school facilities necessary to meet the standards applicable to public schools under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); and
(C)
asbestos or polychlorinated biphenyls abatement or removal from school facilities; and
(3)
expenditures for services provided using funds made available under section 226 shall be considered equal for purposes of section 9501(a)(4) of the ESEA if the per-pupil expenditures for services described in paragraph (2) for students enrolled in private, nonprofit elementary and secondary schools that have child-poverty rates of at least 40 percent are consistent with the per-pupil expenditures under this part for children enrolled in the public schools of the local educational agency receiving funds under this part.
(b)
Remaining funds— If the expenditure for services described in subsection (a)(2) is less than the amount calculated under subsection (a)(3) because of insufficient need for those services, the remainder shall be available to the local educational agency for modernization, renovation, or repair of its school facilities.
(c)
Application— If any provision of this section, or the application thereof, to any person or circumstance is judicially determined to be invalid, the remainder of the section and the application to other persons or circumstances shall not be affected thereby.

Sec. 228 Additional provisions

(a)
24-Month period of availability— Funds appropriated under section 222 shall be available for obligation by local educational agencies receiving grants from the Secretary under section 223(b)(1), by States reserving funds under section 224(a), and by local educational agencies receiving subgrants under section 224(b)(1) only during the period that ends 24 months after the date of enactment of this Act.
(b)
36-Month period of availability— Funds appropriated under section 222 shall be available for obligation by local educational agencies receiving subgrants under section 224(b)(2) only during the period that ends 36 months after the date of enactment of this Act.
(c)
Applicability of GEPA— Section 439 of the General Education Provisions Act (20 U.S.C. 1232b) shall apply to funds available under this part.
(d)
Limitation— For purposes of section 223(b)(1), Hawaii, the District of Columbia, and the Commonwealth of Puerto Rico are not local educational agencies.

II Community College modernization

Sec. 229 Federal assistance for community college modernization

(a)
In general—
(1)
Grant program— From the amounts made available under subsection (h), the Secretary shall award grants to States to modernize, renovate, or repair existing facilities at community colleges.
(2)
Allocation—
(A)
Reservations— Of the amount made available to carry out this section, the Secretary shall reserve—
(i)
up to 0.25 percent for grants to institutions that are eligible under section 316 of the Higher Education Act of 1965 (20 U.S.C. 1059c) to provide for modernization, renovation, and repair activities described in this section; and
(ii)
up to 0.25 percent for grants to the outlying areas to provide for modernization, renovation, and repair activities described in this section.
(B)
Allocation— After reserving funds under subparagraph (A), the Secretary shall allocate to each State that has an application approved by the Secretary an amount that bears the same relation to any remaining funds as the total number of students in such State who are enrolled in institutions described in section 230(b)(1)(A) plus the number of students who are estimated to be enrolled in and pursuing a degree or certificate that is not a bachelor’s, master’s, professional, or other advanced degree in institutions described in section 230(b)(1)(B), based on the proportion of degrees or certificates awarded by such institutions that are not bachelor’s, master’s, professional, or other advanced degrees, as reported to the Integrated Postsecondary Data System bears to the estimated total number of such students in all States, except that no State shall receive less than $2,500,000.
(C)
Reallocation— Amounts not allocated under this section to a State because the State either did not submit an application under subsection (b), the State submitted an application that the Secretary determined did not meet the requirements of such subsection, or the State cannot demonstrate to the Secretary a sufficient demand for projects to warrant the full allocation of the funds, shall be proportionately reallocated under this paragraph to the other States that have a demonstrated need for, and are receiving, allocations under this section.
(D)
State administration— A State that receives a grant under this section may use not more than one percent of that grant to administer it, except that no State may use more than $750,000 of its grant for this purpose.
(3)
Supplement, not supplant— Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to modernize, renovate, or repair existing community college facilities.
(b)
Application— A State that desires to receive a grant under this section shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require. Such application shall include a description of—
(1)
how the funds provided under this section will improve instruction at community colleges in the State and will improve the ability of those colleges to educate and train students to meet the workforce needs of employers in the State;
(2)
the projected start of each project and the estimated number of persons to be employed in the project; and
(3)
the cost of each project and the total amount of funds requested for each project and for all projects.
(c)
Prohibited uses of funds—
(1)
In general— No funds awarded under this section may be used for—
(A)
payment of routine maintenance costs;
(B)
construction, modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; or
(C)
construction, modernization, renovation, or repair of facilities—
(i)
used for sectarian instruction, religious worship, or a school or department of divinity; or
(ii)
in which a substantial portion of the functions of the facilities are subsumed in a religious mission.
(2)
Four-year institutions— No funds awarded to a four-year public institution of higher education under this section may be used for any facility, service, or program of the institution that is not available to students who are pursuing a degree or certificate that is not a bachelor’s, master’s, professional, or other advanced degree.
(d)
Green projects— In providing assistance to community college projects under this section, the State shall consider the extent to which a community college’s project involves activities that are certified, verified, or consistent with the applicable provisions of—
(1)
the LEED Green Building Rating System;
(2)
Energy Star;
(3)
the CHPS Criteria, as applicable;
(4)
Green Globes; or
(5)
an equivalent program adopted by the State or the State higher education agency that includes a verifiable method to demonstrate compliance with such program.
(e)
Application of GEPA— Section 439 of the General Education Provisions Act (20 U.S.C. 1232b) shall apply to funds available under this section.
(f)
Reports by the states— Each State that receives a grant under this section shall, not later than September 30, 2014, and annually thereafter for each fiscal year in which the State expends funds received under this section, submit to the Secretary a report that includes—
(1)
a description of the projects for which the grant was, or will be, used;
(2)
a description of the amount and nature of the assistance provided to each community college under this section; and
(3)
the number of jobs created by the projects funded under this section.
(g)
Report by the secretary— The Secretary shall submit to the authorizing committees (as defined in section 103 of the Higher Education Act of 1965; 20 U.S.C. 1003) an annual report on the grants made under this section, including the information described in subsection (f).
(h)
Availability of funds—
(1)
There are authorized to be appropriated, and there are appropriated, to carry out this section (in addition to any other amounts appropriated to carry out this section and out of any money in the Treasury not otherwise appropriated), $5,000,000,000 for fiscal year 2014.
(2)
Funds appropriated under this subsection shall be available for obligation by community colleges only during the period that ends 36 months after the date of enactment of this Act.

III Definitions

Sec. 230 Definitions

(a)
ESEA terms— Except as otherwise provided, in this subtitle, the terms “local educational agency”, “Secretary”, and “State educational agency” have the meanings given those terms in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
(b)
Additional definitions— The following definitions apply to this title:
(1)
Community college— The term “community college” means—
(A)
a junior or community college, as that term is defined in section 312(f) of the Higher Education Act of 1965 (20 U.S.C. 1058(f)); or
(B)
an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) that awards a significant number of degrees and certificates, as determined by the Secretary, that are not—
(i)
bachelor’s degrees (or an equivalent); or
(ii)
master’s, professional, or other advanced degrees.
(2)
CHPS criteria— The term “CHPS Criteria” means the green building rating program developed by the Collaborative for High Performance Schools.
(3)
Energy star— The term “Energy Star” means the Energy Star program of the United States Department of Energy and the United States Environmental Protection Agency.
(4)
Green globes— The term “Green Globes” means the Green Building Initiative environmental design and rating system referred to as Green Globes.
(5)
Leed green building rating system— The term “LEED Green Building Rating System” means the United States Green Building Council Leadership in Energy and Environmental Design green building rating standard referred to as the LEED Green Building Rating System.
(6)
Modernization, renovation, and repair— The term “modernization, renovation, and repair” means—
(A)
comprehensive assessments of facilities, including indoor air-quality assessments, to identify—
(i)
facility conditions or deficiencies that could adversely affect student and staff health, safety, performance, or productivity or energy, water, or materials efficiency; and
(ii)
needed facility improvements;
(B)
repairing, replacing, or installing roofs (which may be extensive, intensive, or semi-intensive “green” roofs); electrical wiring; water supply and plumbing systems, sewage systems, storm water runoff systems, lighting systems (or components of such systems); or building envelope, windows, ceilings, flooring, or doors, including security doors;
(C)
repairing, replacing, or installing heating, ventilation, or air conditioning systems, or components of those systems (including insulation) to improve energy efficiency;
(D)
compliance with fire, health, seismic, and safety codes, including professional installation of fire and life safety alarms, and modernizations, renovations, and repairs that ensure that facilities are prepared for such emergencies as acts of terrorism, campus violence, and natural disasters, such as improving building infrastructure to accommodate security measures and installing or upgrading technology to ensure that a school or incident is able to respond to such emergencies;
(E)
making modifications necessary to make educational facilities accessible in compliance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), except that such modifications shall not be the primary use of a grant or subgrant;
(F)
abatement, removal, or interim controls of asbestos, polychlorinated biphenyls, mold, mildew, or lead-based hazards, including lead-based paint hazards;
(G)
retrofitting necessary to increase energy efficiency;
(H)
measures, such as selection and substitution of products and materials, and implementation of improved maintenance and operational procedures, such as “green cleaning” programs, to reduce or eliminate potential student or staff exposure to—
(i)
volatile organic compounds;
(ii)
particles such as dust and pollens; or
(iii)
combustion gases;
(I)
modernization, renovation, or repair necessary to reduce the consumption of coal, electricity, land, natural gas, oil, or water;
(J)
installation or upgrading of educational technology infrastructure;
(K)
installation or upgrading of renewable energy generation and heating systems, including solar, photovoltaic, wind, biomass (including wood pellet and woody biomass), waste-to-energy, solar-thermal, and geothermal systems, and energy audits;
(L)
modernization, renovation, or repair activities related to energy efficiency and renewable energy, and improvements to building infrastructures to accommodate bicycle and pedestrian access;
(M)
ground improvements, storm water management, landscaping, and environmental clean-up when necessary;
(N)
other modernization, renovation, or repair to—
(i)
improve teachers’ ability to teach and students’ ability to learn;
(ii)
ensure the health and safety of students and staff; or
(iii)
improve classroom, laboratory, and vocational facilities in order to enhance the quality of science, technology, engineering, and mathematics instruction; and
(O)
required environmental remediation related to facilities modernization, renovation, or repair activities described in subparagraphs (A) through (N).
(7)
Outlying area— The term “outlying area” means the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Republic of Palau.
(8)
State— The term “State” means each of the 50 States of the United States, the Commonwealth of Puerto Rico, and the District of Columbia.

D Immediate transportation infrastructure investments

Sec. 241 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— Funds provided to the Secretary under this subsection shall not be subject to apportionment formulas, special apportionment categories, or minimum percentages under chapter 471 of such title.
(4)
Availability— The amounts made available under this subsection shall be available for obligation until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment.
(5)
Administrative expenses— Of the funds made available under this subsection, 0.3 percent shall be available to the Secretary for administrative expenses, shall remain available for obligation until September 30, 2015, and may be used in conjunction with funds 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 until the date that is two years after 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 restoration, repair, construction and other activities eligible under section 133(b) of title 23, United States Code, and for passenger and freight rail transportation and port infrastructure projects eligible for assistance under section 601(a)(8) of title 23.
(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 thereof. 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 until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment.
(4)
Distribution of funds— Of the funds provided in this subsection, after making the set-asides required by paragraphs (9), (10), (11), (12), and (15), 50 percent of the funds shall be apportioned to States using the formula set forth in section 104(b)(3) of title 23, United States Code, and the remaining funds 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 division A of Public Law 111–117.
(5)
Apportionment— Apportionments under paragraph (4) shall be made not later than 30 days after the date of the enactment of this Act.
(6)
Redistribution—
(A)
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)
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)
At the request of a State, the Secretary may provide an extension of the one-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 notify in writing the Committee on Transportation and Infrastructure and the Committee on Environment and Public Works, providing a thorough justification for the extension.
(7)
Transportation enhancements— Three percent of the funds 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).
(8)
Suballocation— Thirty percent of the funds 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. Funds suballocated within a State to urbanized areas and other areas shall not be subject to the redistribution of amounts required 180 days following the date of apportionment of funds provided by paragraph (6)(A).
(9)
Puerto Rico and territorial highway programs— Of the funds 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.
(10)
Federal lands and Indian reservations— Of the funds 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:.
(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 four 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 by this paragraph.
(11)
Job training— Of the funds 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.
(A)
Funds set aside under this subsection 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.
(B)
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 enactment of this act for job training activities consistent with section 140(b) of title 23, United States Code.
(12)
Disadvantaged business enterprises— Of the funds 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. Funds set aside under this paragraph should be allocated to businesses that have proven success in adding staff while effectively completing projects.
(13)
State planning and oversight expenses— Of amounts apportioned under paragraph (4) of this subsection, 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.
(14)
Conditions—
(A)
Funds made available under this subsection shall be administered as if apportioned under chapter 1 of title 23, United States Code, except for funds 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 title 23, United States Code, and except for funds made available for disadvantaged business enterprises bonding assistance, which shall be administered in accordance with chapter 3 of title 49, United States Code.
(B)
Funds made available under this subsection shall not be obligated for the purposes authorized under section 115(b) of title 23, United States Code.
(C)
Funding provided under this subsection 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.
(D)
Section 1101(b) of Public Law 109–59 shall apply to funds apportioned under this subsection.
(15)
Oversight— The Administrator of the Federal Highway Administration may set aside up to 0.15 percent of the funds provided under this subsection to fund the oversight by the Administrator of projects and activities carried out with funds made available to the Federal Highway Administration in this Act, and such funds shall be available through September 30, 2015.
(d)
Capital assistance for high-Speed rail corridors and intercity passenger rail service—
(1)
In general— There is made available to the Secretary of Transportation $4,000,000,000 for grants for high-speed rail projects as authorized under sections 26104 and 26106 of title 49, United States Code, capital investment grants to support intercity passenger rail service as authorized under section 24406 of title 49, United States Code, and congestion grants as authorized under section 24105 of title 49, United States Code, and to enter into cooperative agreements for these purposes as authorized, except that the Administrator of the Federal Railroad Administration may retain up to one percent of the funds provided under this heading to fund the award and oversight by the Administrator of grants made under this subsection, which retained amount shall remain available for obligation until September 30, 2015.
(2)
Availability— The amounts made available under this subsection shall be available for obligation until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after 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 funds 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 24402(a)(2), 24402(i), and 24403(a) and (c) of title 49, United States Code, shall also apply to the provision of funds 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 enable the Secretary of Transportation to make 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 until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after 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 funds under this subsection shall be used to subsidize the operating losses of Amtrak.
(B)
The funds provided under this subsection shall be awarded not later than 90 days after the date of enactment of this Act.
(C)
The Secretary shall take measures to ensure that projects funded under this subsection shall be completed within 2 years of 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 certify to the House and Senate Committees on Appropriations in writing compliance with the preceding sentence.
(5)
Oversight— The Administrator of the Federal Railroad Administration may set aside 0.5 percent of the funds 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 funds 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 title 49, however, a recipient of funding under this subsection may use up to 10 percent of the amount provided 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.
(3)
Availability— The amounts made available under this subsection shall be available for obligation until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after 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— The funds apportioned under this subsection shall be apportioned not later than 21 days after the date of the enactment of this Act.
(6)
Redistribution—
(A)
The Secretary shall, 180 days following the date of apportionment, withdraw from each urbanized area or State an amount equal to 50 percent of the funds 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 proviso utilizing whatever method he deems appropriate to ensure that all funds redistributed under this proviso shall be utilized promptly.
(B)
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 funds withdrawn under this proviso utilizing whatever method the Secretary deems appropriate to ensure that all funds redistributed under this proviso shall be utilized promptly.
(C)
At the request of an urbanized area or State, the Secretary of Transportation may provide an extension of such 1-year period if 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 notify in writing the Committee on Transportation and Infrastructure and the Committee on Banking, Housing and Urban Affairs, providing a thorough justification for the extension.
(7)
Conditions—
(A)
Of the funds provided for section 5311 of title 49, United States Code, 2.5 percent shall be made available for section 5311(c)(1).
(B)
Section 1101(b) of Public Law 109–59 shall apply to funds appropriated under this subsection.
(C)
The funds appropriated under this subsection shall not be comingled with any prior year funds.
(8)
Oversight— Notwithstanding any other provision of law, 0.3 percent of the funds provided for grants under section 5307 and section 5340, and 0.3 percent of the funds provided for grants under section 5311, shall be available for administrative expenses and program management oversight, and such funds 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 as authorized by sections 5309(b)(2) and (3) of title 49, United States Code.
(2)
Federal share— The applicable requirements of chapter 53 of title 49, United States Code, shall apply, 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 until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment.
(4)
Distribution of funds—
(A)
The Secretary of Transportation shall apportion not less than 75 percent of the funds 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 subsection (b)(2)(A)(ii).
(B)
Of the funds appropriated under this subsection, not less than 25 percent shall be available 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)
Apportionment— The funds made available under this subsection shall be apportioned not later than 30 days after the date of the enactment of this Act.
(6)
Redistribution—
(A)
The Secretary shall, 180 days following the date of apportionment, withdraw from each urbanized area an amount equal to 50 percent of the funds 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 Secretary deems appropriate to ensure that all funds redistributed under this paragraph shall be utilized promptly.
(B)
One year following 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 funds withdrawn under this paragraph, utilizing whatever method the Secretary deems appropriate to ensure that all funds redistributed under this paragraph shall be utilized promptly.
(C)
At the request of an urbanized area, the Secretary may provide an extension of the 1-year period if the Secretary finds that the urbanized area has encountered an unworkable bidding environment or other extenuating circumstances. Before granting an extension, the Secretary shall notify the Committee on Transportation and Infrastructure and the Committee on Banking, Housing, and Urban Affairs, providing a thorough justification for the extension.
(7)
Conditions—
(A)
The provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this subsection.
(B)
The funds appropriated under this subsection shall not be commingled with any prior year funds.
(8)
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 funds provided 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 until the date that is two years after the date of the enactment of this Act. The Secretary shall obligate amounts totaling not less than 50 percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after 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 to the Federal Highway Administration funds made available under this subsection 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 finds that such use of the funds would advance the purposes of this subsection.
(6)
Project priority— The Secretary shall give priority to projects that are expected to be completed within 3 years of the date of the enactment of this Act.
(7)
Deadline for issuance of competition criteria— The Secretary shall publish criteria on which to base the competition for any grants awarded under this subsection not later than 90 days after enactment of this Act. The Secretary shall require applications for funding provided 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 funds not later than 1 year after the date of the enactment of the Act.
(8)
Applicability of title 40— Each project conducted using funds provided under this subsection shall comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code.
(9)
Administrative expenses— The Secretary may retain up to one half of one percent of the funds provided under this subsection, and may transfer portions of those funds to the Administrators of the Federal Highway Administration, the Federal Transit Administration, the Federal Railroad Administration and the Maritime Administration, to fund the award and oversight of grants made under this subsection. Funds retained shall remain available for obligation until September 30, 2015.
(i)
Local hiring—
(1)
In general— In the case of the funding made available under subsections (a) through (h) of this section, 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, provided that—
(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 million, except that the estimated cost of the project in the case of construction funded under subsection (c) shall be greater than $50 million; 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; provided that the recipient may require the hiring of such individuals if 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 specified 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— The Secretary shall make available to recipients the workforce development and training programs set forth in section 24604(e)(1)(D) of this title to assist recipients who wish to establish training programs that satisfy the provisions of section (c)(1)(C). The Secretary of Labor shall make available its qualifying workforce and training development programs to recipients who wish to establish training programs that satisfy the provisions of section (c)(1)(C).
(3)
Implementing regulations— The Secretary shall promulgate final regulations to implement the authority of this subsection.
(j)
Administrative provisions—
(1)
Applicability of title 40— Each project conducted using funds provided under this subtitle shall comply with the requirements of 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) applies to each project conducted using funds provided under this subtitle.

E Building and upgrading infrastructure for long-Term development

Sec. 242 Short title

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

Sec. 243 Findings and purpose

(a)
Findings— Congress finds that—
(1)
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;
(2)
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;
(3)
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 twenty-third in the world;
(4)
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;
(5)
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”;
(6)
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;
(7)
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;
(8)
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;
(9)
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;
(10)
current funding mechanisms are not readily scalable and do not—
(A)
serve large in-State or cross jurisdiction infrastructure projects, projects of regional or national significance, or projects that cross sector silos;
(B)
sufficiently catalyze private sector investment; or
(C)
ensure the optimal return on public resources;
(11)
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;
(12)
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
(13)
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.
(b)
Purpose— The purpose of this Act is to facilitate investment in, and long-term financing of, economically viable infrastructure projects of regional or national significance in a manner that both complements existing Federal, State, local, and private funding sources for these projects and introduces a merit-based system for financing such projects, in order to mobilize significant private sector investment, create jobs, and ensure United States competitiveness through an institution that limits the need for ongoing Federal funding.

Sec. 244 Definitions

For purposes of this Act, the following definitions shall apply:
(1)
AIFA— The term AIFA means the American Infrastructure Financing Authority established under this Act.
(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 247.
(6)
Cost— The term cost has the same meaning as in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(7)
Direct loan— The term direct loan has the same meaning as in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(8)
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.
(9)
Infrastructure project—
(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 Act.
(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)
Waterwaste 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, at the discretion of the Board, to the subsectors described in this paragraph by a vote of not fewer than 5 of the voting members of the Board of Directors.
(10)
Investment prospectus—
(A)
The term investment prospectus means the processes and publications described below that will guide the priorities and strategic focus for AIFA’s investments. The investment prospectus shall follow rulemaking procedures under section 553 of title 5, United States Code.
(B)
AIFA shall publish a detailed description of its strategy in an investment prospectus within one year of the enactment of this subchapter. The investment prospectus shall—
(i)
specify what AIFA shall consider significant to the economic competitiveness of the United States or a region thereof in a manner consistent with the primary objective;
(ii)
specify the priorities and strategic focus of AIFA in forwarding its strategic objectives and carrying out AIFA strategy;
(iii)
specify the priorities and strategic focus of AIFA in promoting greater efficiency in the movement of freight;
(iv)
specify the priorities and strategic focus of AIFA in promoting the use of innovation and best practices in the planning, design, development and delivery of projects;
(v)
describe 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)
describe 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)
describe how the qualification score and range methodology and project selection framework are consistent with maximizing AIFA goals in both urban and rural areas.
(C)
The investment prospectus and any subsequent updates thereto shall be approved by a majority vote of the Board of Directors prior to publication.
(D)
AIFA shall update the investment prospectus on every biennial anniversary of its original publication.
(11)
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.
(12)
Loan guarantee— The term loan guarantee has the same meaning as in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(13)
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.
(14)
Rural infrastructure project— The term rural infrastructure project means an infrastructure project in a rural area, as that term is defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)).
(15)
Secretary— Unless the context otherwise requires, the term Secretary means the Secretary of the Treasury or the designee thereof.
(16)
Senior management— The term senior management means the chief financial officer, chief risk officer, chief compliance officer, general counsel, chief lending officer, and chief operations officer of AIFA established under section 249, and such other officers as the Board of Directors may, by majority vote, add to senior management.
(17)
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.

I American infrastructure financing authority

Sec. 245 Establishment and general authority of AIFA

(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 Act.
(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 Act.

Sec. 246 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 thereof.
(3)
Congressional recommendations— Not later than 30 days after the date of 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;
(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 Act, 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 enactment of this Act.
(4)
Beginning of term— The term of each of the initial voting members appointed under this section shall commence immediately upon the date of appointment, except that, for purposes of calculating the term limits specified in this subsection, 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 Act, if the member has or is affiliated with an entity who has a financial interest in such project.

Sec. 247 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 section 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 subsection 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.

Sec. 248 Powers and duties of the Board of Directors

The Board of Directors shall—
(1)
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;
(2)
not later than 180 days after the date on which all members are appointed—
(A)
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 Act;
(B)
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;
(C)
develop and approve, in consultation with senior management, a conflict-of-interest policy for the Board of Directors and for senior management;
(D)
approve or disapprove internal policies that the chief executive officer shall submit to the Board of Directors, including—
(i)
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
(ii)
operational guidelines; and
(E)
approve or disapprove a multi-year or 1-year business plan and budget for AIFA;
(3)
ensure that AIFA is at all times operated in a manner that is consistent with this Act, by—
(A)
monitoring and assessing the effectiveness of AIFA in achieving its strategic goals;
(B)
periodically reviewing internal policies;
(C)
reviewing and approving annual business plans, annual budgets, and long-term strategies submitted by the chief executive officer;
(D)
reviewing and approving annual reports submitted by the chief executive officer;
(E)
engaging one or more external auditors, as set forth in this Act; and
(F)
reviewing and approving all changes to the organization of senior management;
(4)
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, and where, in appointing and fixing any compensation or adjustments to compensation under this paragraph, the Board shall—
(A)
consult with, and seek to maintain comparability with, other comparable Federal personnel;
(B)
consult with the Office of Personnel Management; and
(C)
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;
(5)
establish such other criteria, requirements, or procedures as the Board of Directors may consider to be appropriate in carrying out this Act;
(6)
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;
(7)
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;
(8)
have the authority and responsibility—
(A)
to oversee entering into and carry out such contracts, leases, cooperative agreements, or other transactions as are necessary to carry out this Act with—
(i)
any Federal department or agency;
(ii)
any State, territory, or possession (or any political subdivision thereof, including State infrastructure banks) of the United States; and
(iii)
any individual, public-private partnership, firm, association, or corporation;
(B)
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;
(C)
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;
(D)
to execute, in accordance with applicable bylaws and regulations, appropriate instruments;
(E)
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 Act and terms set forth in title II;
(F)
to exercise all other lawful powers which are necessary or appropriate to carry out, and are consistent with, the purposes of AIFA;
(G)
to sue or be sued in the corporate capacity of AIFA in any court of competent jurisdiction;
(H)
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 Act;
(I)
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;
(J)
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
(K)
to enter into binding commitments, as specified in approved financial assistance packages;
(9)
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
(10)
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.

Sec. 249 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. 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, except that the functions of the Chief Financial Officer set forth in subsection (e) shall remain separate from the functions of the Chief Risk Officer set forth in subsection (e).
(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.

Sec. 250 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 enactment 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 (in this Act referred to 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— It shall be the duty of the Special Inspector General to 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 under paragraph (1).
(3)
Additional duties— In addition to the duties specified in paragraphs (1) and (2), the Inspector General shall also 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 (c), 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 (c)(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 of 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 subsection 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.

Sec. 251 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.

Sec. 252 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.

II Terms and limitations on direct loans and loan guarantees

Sec. 253 Eligibility criteria for assistance from AIFA and terms and limitations of loans

(a)
In general— 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 Act. Financial assistance under this Act 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 Act;
(B)
any criteria established by the Board of Directors or chief executive officer in accordance with this Act; 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 Act 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 Act, prioritizing infrastructure projects that—
(A)
contribute to regional or national economic growth;
(B)
offer value for money to the Government;
(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 cofinanciers;
(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 Act, 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 Act 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 Act shall 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 Act 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.
(g)
Employee protections— As a condition for the provision of financial assistance by the Board of Directors pursuant to this Act, the interests of employees affected by the financial assistance shall be protected under arrangements the Secretary of Labor concludes are fair and equitable in accordance with section 5333(b)(2) of title 49, United States Code.

Sec. 254 Loan terms and repayment

(a)
In general— A direct loan or loan guarantee under this Act 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 Act—
(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 Act 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 Act, 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 section, 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—
(1)
In general— With respect to each agreement for assistance under this Act, 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.
(2)
Treatment of source of fees— The source of fees paid under this section shall not be a loan or debt obligation guaranteed by the Federal Government.
(3)
Credit fee on a direct loan— 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 Act 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 Act 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 Act 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 Act, 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 Act 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 Act, 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 Act, 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 Government.
(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 Act may be applied annually to prepay the direct loan, without penalty.
(B)
Use of proceeds of refinancing— A direct loan under this Act 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 Act, 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 Government.
(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 Act shall be consistent with the terms set forth in this section 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 Act shall be subject to the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

Sec. 255 Compliance and enforcement

(a)
Credit agreement— Notwithstanding any other provision of law, each eligible entity that receives assistance under this Act 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 Act 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)
Construction— Nothing in this Act is intended to affect existing provisions of law applicable to the planning, development, construction, or operation of projects funded under the Act.

Sec. 256 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 Act 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 Act; 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 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.

III Funding of AIFA

Sec. 257 Administrative fees

(a)
In general— In addition to fees that may be collected under section 254(e), the chief executive officer shall establish and collect fees from eligible funding recipients with respect to loans and loan guarantees under this Act 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 chief executive officer; 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 subsections (a)(1), (a)(2)(a)(3) shall be available without further action, and the source of fees paid under this section shall not be a loan or debt obligation guaranteed by the Federal Government.

Sec. 258 Efficiency of AIFA

The chief executive officer shall, to the extent possible, take actions consistent with this Act to minimize the risk and cost to the Government 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.

Sec. 259 Funding

(a)
In general— There is hereby appropriated to AIFA to carry out this Act, for the cost of direct loans and loan guarantees subject to the limitations under section 253, and for administrative costs, $10,000,000,000, to remain available until expended.
(b)
Costs defined— Such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Federal Credit Reform Act of 1990.
(c)
Administrative costs— Of the amounts appropriated under subsection (a), 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.
(d)
Offsets of subsidy costs— Not more than 5 percent of such amount may be used to offset subsidy costs associated with rural projects.

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

Sec. 260 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, 2015”; and
(2)
by striking “in 2009 and 2010” in the heading and inserting “during the period 2009 through 2014”.
(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, 2015”; and
(2)
by striking “in 2009 and 2010” in the heading and inserting “during the period 2009 through 2014”.
(c)
Effective date— The amendments made by this section shall apply to obligations issued after December 31, 2010.

F Project rebuild

Sec. 261 Project rebuild

(a)
Direct appropriations— There is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000,000, to remain available until September 30, 2016, for assistance to eligible entities including States and units of general local government (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)), and qualified nonprofit organizations, businesses or consortia of eligible entities for the redevelopment of abandoned and foreclosed-upon properties and for the stabilization of affected neighborhoods.
(b)
Allocation of appropriated amounts—
(1)
In general— Of the amounts appropriated, two thirds shall be allocated to States and units of general local government based on a funding formula established by the Secretary of Housing and Urban Development (in this subtitle referred to as the “Secretary”). Of the amounts appropriated, one third shall be distributed competitively to eligible entities.
(2)
Formula to be devised swiftly— The funding formula required under paragraph (1) shall be established and the Secretary shall announce formula funding allocations, not later than 30 days after the date of enactment of this section.
(3)
Formula criteria— The Secretary may establish a minimum grant size, and the funding formula required under paragraph (1) shall ensure that any amounts appropriated or otherwise made available under this section are allocated to States and units of general local government with the greatest need, as such need is determined in the discretion of the Secretary based on—
(A)
the number and percentage of home foreclosures in each State or unit of general local government;
(B)
the number and percentage of homes in default or delinquency in each State or unit of general local government; and
(C)
other factors such as established program designs, grantee capacity and performance, number and percentage of commercial foreclosures, overall economic conditions, and other market needs data, as determined by the Secretary.
(4)
Competition criteria—
(A)
For the funds distributed competitively, eligible entities shall be States, units of general local government, nonprofit entities, for-profit entities, and consortia of eligible entities that demonstrate capacity to use funding within the period of this program.
(B)
In selecting grantees, the Secretary shall ensure that grantees are in areas with the greatest number and percentage of residential and commercial foreclosures and other market needs data, as determined by the Secretary. Additional award criteria shall include demonstrated grantee capacity to execute projects involving acquisition and rehabilitation or redevelopment of foreclosed residential and commercial property and neighborhood stabilization, leverage, knowledge of market conditions and of effective stabilization activities to address identified conditions, and any additional factors determined by the Secretary.
(C)
The Secretary may establish a minimum grant size.
(D)
The Secretary shall publish competition criteria for any grants awarded under this heading not later than 60 days after appropriation of funds, and applications shall be due to the Secretary within 120 days.
(c)
Use of funds—
(1)
Obligation and expenditure— The Secretary shall obligate all funding within 150 days of enactment of this Act. Any eligible entity that receives amounts pursuant to this section shall expend all funds allocated to it within three years of the date the funds become available to the grantee for obligation. Furthermore, the Secretary shall by Notice establish intermediate expenditure benchmarks at the one and two year dates from the date the funds become available to the grantee for obligation.
(2)
Priorities—
(A)
Job creation— Each grantee or eligible entity shall describe how its proposed use of funds will prioritize job creation, and secondly, will address goals to stabilize neighborhoods, reverse vacancy, or increase or stabilize residential and commercial property values.
(B)
Targeting— Any State or unit of general local government that receives formula amounts pursuant to this section shall, in distributing and targeting such amounts give priority emphasis and consideration to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need, including those—
(i)
with the greatest percentage of home foreclosures;
(ii)
identified as likely to face a significant rise in the rate of residential or commercial foreclosures; and
(iii)
with higher than national average unemployment rate.
(C)
Leverage— Each grantee or eligible entity shall describe how its proposed use of funds will leverage private funds.
(3)
Eligible uses— Amounts made available under this section may be used to—
(A)
establish financing mechanisms for the purchase and redevelopment of abandoned and foreclosed-upon properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;
(B)
purchase and rehabilitate properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such properties;
(C)
establish and operate land banks for properties that have been abandoned or foreclosed upon;
(D)
demolish blighted structures;
(E)
redevelop abandoned, foreclosed, demolished, or vacant properties; and
(F)
engage in other activities, as determined by the Secretary through notice, that are consistent with the goals of creating jobs, stabilizing neighborhoods, reversing vacancy reduction, and increasing or stabilizing residential and commercial property values.
(d)
Limitations—
(1)
On purchases— Any purchase of a property under this section shall be at a price not to exceed its current market value, taking into account its current condition.
(2)
Rehabilitation— Any rehabilitation of an eligible property under this section shall be to the extent necessary to comply with applicable laws, and other requirements relating to safety, quality, marketability, and habitability, in order to sell, rent, or redevelop such properties or provide a renewable energy source or sources for such properties.
(3)
Sale of homes— If an abandoned or foreclosed-upon home is purchased, redeveloped, or otherwise sold to an individual as a primary residence, then such sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, marketable, and habitable condition.
(4)
On demolition of public housing— Public housing, as defined at section 3(b)(6) of the United States Housing Act of 1937, may not be demolished with funds under this section.
(5)
On demolition activities— No more than 10 percent of any grant made under this section may be used for demolition activities unless the Secretary determines that such use represents an appropriate response to local market conditions.
(6)
On use of funds for non-residential property— No more than 30 percent of any grant made under this section may be used for eligible activities under subparagraphs (A), (B), and (E) of subsection (c)(3) that will not result in residential use of the property involved unless the Secretary determines that such use represents an appropriate response to local market conditions.
(e)
Rules of construction—
(1)
In general— Except as otherwise provided by this section, amounts appropriated, revenues generated, or amounts otherwise made available to eligible entities under this section shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
(2)
No match— No matching funds shall be required in order for an eligible entity to receive any amounts under this section.
(3)
Tenant protections— An eligible entity receiving a grant under this section shall comply with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd, and 23rd provisos under the heading “Department of Housing and Urban Development—Community Planning and Development—Community Development Fund” in title XII of division A of the American Recovery and Reinvestment Act of 2009American Recovery and Reinvestment Act of 2009 (Public Law 111–5, 123 Stat. 218–19), as amended by section 1497(b)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203, 124 Stat. 2211).
(4)
Vicinity hiring— An eligible entity receiving a grant under this section shall comply with section 1497(a)(8) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203, 129 Stat. 2210).
(f)
Authority To specify alternative requirements—
(1)
In general— In administering the program under this section, the Secretary may specify alternative requirements to any provision under title I of the Housing and Community Development Act of 1974 or under title I of the Cranston-Gonzalez National Affordable Housing Act of 1990 (except for those provisions in these laws related to fair housing, nondiscrimination, labor standards, and the environment) for the purpose of expediting and facilitating the use of funds under this section.
(2)
Notice— The Secretary shall provide written notice of intent to the public via internet to exercise the authority to specify alternative requirements under paragraph.
(3)
Low and moderate income requirement—
(A)
In general— Notwithstanding the authority of the Secretary under paragraph (1)—
(i)
all of the formula and competitive grantee funds appropriated or otherwise made available under this section shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income; and
(ii)
not less than 25 percent of the formula and competitive grantee funds appropriated or otherwise made available under this section shall be used for the purchase and redevelopment of eligible properties that will be used to house individuals or families whose incomes do not exceed 50 percent of area median income.
(B)
Recurrent requirement— The Secretary shall, by rule or order, ensure, to the maximum extent practicable and for the longest feasible term, that the sale, rental, or redevelopment of abandoned and foreclosed-upon homes and residential properties under this section remain affordable to individuals or families described in subparagraph (A).
(g)
Nationwide distribution of resources— Notwithstanding any other provision of this section or the amendments made by this section, each State shall receive not less than $20,000,000 of formula funds.
(h)
Limitation on use of funds with respect to eminent domain— No State or unit of general local government may use any amounts received pursuant to this section to fund any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use, which shall not be construed to include economic development that primarily benefits private entities.
(i)
Limitation on distribution of funds—
(1)
In general— None of the funds made available under this section shall be distributed to—
(A)
an organization which has been indicted for a violation under Federal law relating to an election for Federal office; or
(B)
an organization which employs applicable individuals.
(2)
Applicable individuals defined— In this section, the term applicable individual means an individual who—
(A)
is—
(i)
employed by the organization in a permanent or temporary capacity;
(ii)
contracted or retained by the organization; or
(iii)
acting on behalf of, or with the express or apparent authority of, the organization; and
(B)
has been indicted for a violation under Federal law relating to an election for Federal office.
(j)
Rental housing preferences— Each State and local government receiving formula amounts shall establish procedures to create preferences for the development of affordable rental housing.
(k)
Job creation— If a grantee chooses to use funds to create jobs by establishing and operating a program to maintain eligible neighborhood properties, not more than 10 percent of any grant may be used for that purpose.
(l)
Program support and capacity building— The Secretary may use up to 0.75 percent of the funds appropriated for capacity building of and support for eligible entities and grantees undertaking neighborhood stabilization programs, staffing, training, technical assistance, technology, monitoring, travel, enforcement, research, and evaluation activities, subject to the following requirements:
(1)
Funds set aside for the purposes of this subparagraph shall remain available until September 30, 2018.
(2)
Any funds made available under this subparagraph and used by the Secretary for personnel expenses related to administering funding under this subparagraph shall be transferred to “Personnel Compensation and Benefits, Community Planning and Development”.
(3)
Any funds made available under this subparagraph and used by the Secretary for training or other administrative expenses shall be transferred to “Administration, Operations, and Management, Community Planning and Development” for non-personnel expenses.
(4)
Any funds made available under this subparagraph and used by the Secretary for technology shall be transferred to “Working Capital Fund”.
(m)
Enforcement and prevention of fraud and abuse— The Secretary shall establish and implement procedures to prevent fraud and abuse of funds under this section, and shall impose a requirement that grantees have an internal auditor to continuously monitor grantee performance to prevent fraud, waste, and abuse. Grantees shall provide the Secretary and citizens with quarterly progress reports. The Secretary shall recapture funds from formula and competitive grantees that do not expend 100 percent of allocated funds within 3 years of the date that funds become available, and from underperforming or mismanaged grantees, and shall re-allocate those funds by formula to target areas with the greatest need, as determined by the Secretary through notice. The Secretary may take an alternative sanctions action only upon determining that such action is necessary to achieve program goals in a timely manner.
(n)
Conformance of policies and procedures— The Secretary of Housing and Urban Development shall to the extent feasible conform policies and procedures for grants made under this section to the policies and practices already in place for the grants made under section 2301 of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note); title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 203); or section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (42 U.S.C. 5301 note).