,i #aacth ,,congress #ast ,session ,h4 ,r4 #becd ,,in ,,the ,,house ,,of ,,representatives ,june #bg1 #bjac ,mr4 ,whitfield 7for himself and ,ms4 ,schwartz7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to provide #ej1jjj1jjj1jjj in new transportation infrastructure funding through bonding to empower ,states and local governments to complete significant infrastructure projects across all modes of transportation1 including roads1 bridges1 rail and transit systems1 ports1 and inland waterways1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,transportation and ,regional ,infrastructure ,project ,bonds ,act of #bjac or ,,trip ,bonds ,act4 #b4 ,findings and purpose 7a7 ,findings ,congress finds the following3 7#a7 ,our ,nation's highways1 transit systems1 railroads1 ports1 and inland waterways drive our economy1 enabling all industries to achieve growth and productivity that makes ,america strong and prosperous4 7#b7 ,the establishment1 maintenance1 and improvement of the national transportation network is a national priority1 for economic1 environmental1 energy1 security1 and other reasons4 7#c7 ,the ability to move people and goods is critical to maintaining ,state1 metropolitan1 rural1 and local economies4 7#d7 ,the construction of infrastructure requires combining skills from numerous occupations1 including those in the contracting1 engineering1 planning and design1 materials supply1 manufacturing1 distribution1 and safety industries4 7#e7 ,investing in transportation infrastructure creates long-term capital assets for the ,nation that will help the ,united ,states address its enormous infrastructure needs and improve its economic productivity4 7#f7 ,investment in transportation infrastructure creates jobs and spurs economic activity to put people back to work and stimulate the economy4 7#g7 ,every billion dollars in transportation investment has the potential to create up to #cj1jjj jobs4 7#h7 ,every dollar invested in the ,nation's transportation infrastructure yields at least #e4gj in economic benefits because of reduced delays1 improved safety1 and reduced vehicle operating costs4 7#i7 ,numerous experts have noted that the estimated cost to maintain and improve our ,nation's highways1 bridges1 and other critical transportation infrastructure significantly exceeds what is currently being provided by all levels of government4 7b7 ,purpose ,the purpose of this ,act is to provide financing for additional transportation infrastructure capital investments4 #c4 ,credit to holders of ,,trip bonds 7a7 ,in general ,subpart ,i of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ed;,g4 ,,trip bonds 7a7 ,,trip bond ,for purposes of this subpart1 the term ,,trip bond means any bond issued as part of an issue if-- 7#a7 #ajj percent of the available project proceeds of such issue are to be used for expenditures incurred after the date of the enactment of this section for #a or more qualified projects pursuant to an allocation of such proceeds to such project or projects by a ,state infrastructure bank1 7#b7 the bond is issued by or for the benefit of a ,state infrastructure bank and is in registered form 7within the meaning of section #adi7;a771 7#c7 the ,state infrastructure bank designates such bond for purposes of this section1 7#d7 the term of each bond which is part of such issue does not exceed #cj years1 7#e7 the issue meets the requirements of subsection 7e71 7#f7 the ,state infrastructure bank certifies that the ,state meets the ,state contribution requirement of subsection 7h71 as in effect on the date of issuance1 and 7#g7 the ,state infrastructure bank certifies the ,state meets the requirement described in subsection 7i74 7b7 ,qualified project ,for purposes of this section-- 7#a7 ,in general ,the term qualified project means a capital transportation infrastructure project of any governmental unit or other person1 including roads1 bridges1 rail and transit systems1 ports1 and inland waterways proposed and approved by a ,state infrastructure bank1 but does not include costs of operations or maintenance with respect to such project4 7#b7 ,certain projects ,such term also includes any flood damage risk reduction project with a completed ,report of the ,chief of ,engineers1 with the proceeds of issued bonds available for a ,state to provide to the ,united ,states ,army ,corps of ,engineers 7under section #e of the ,act entitled ,an ,act authorizing the construction of certain public works on rivers and harbors for flood control1 and for other purposes1 approved ,june #bb1 #aicf 7#cc ,u4,s4,c4 #gja;h77 funds in excess of any required non-,federal cost share for such project4 7c7 ,applicable credit rate ,in lieu of section #ed;,a7b77#c71 for purposes of section #ed;,a7b77#b71 the applicable credit rate with respect to an issue under this section is the rate equal to an average market yield 7as of the day before the date of sale of the issue7 on outstanding comparable-term corporate debt obligations 7determined in such manner as the ,secretary prescribes74 7d7 ,limitation on amount of bonds designated 7#a7 ,in general ,the maximum aggregate face amount of bonds which may be designated under subsection 7a7 by any ,state infrastructure bank shall not exceed the ,,trip bond limitation amount allocated to such bank under paragraph 7#c74 7#b7 ,national limitation amount ,there is a ,,trip bond limitation amount for each calendar year4 ,such limitation amount is-- 7,a7 #e1jjj1jjj1jjj for #bjad1 7,b7 #e1jjj1jjj1jjj for #bjae1 7,c7 #aj1jjj1jjj1jjj for #bjaf1 7,d7 #aj1jjj1jjj1jjj for #bjag1 7,e7 #aj1jjj1jjj1jjj for #bjah1 7,f7 #aj1jjj1jjj1jjj for #bjai1 and 7,g7 except as provided in paragraph 7#d71 zero thereafter4 7#c7 ,allocations to ,states 7,a7 ,in general ,the ,,trip bond limitation amount for each calendar year shall be allocated by the ,secretary among the ,states such that each ,state is allocated #b percent of such amount4 7,b7 ,return of unused allocations ,any allocation to a ,state under subparagraph 7,a7 which remains unused on the last day of the calendar year for which the allocation was made shall be relinquished by the ,state and reallocated by the ,secretary proportionally among participating ,states4 7#d7 ,carryover of unused issuance limitation ,if for any calendar year the ,,trip bond limitation amount under paragraph 7#b7 exceeds the amount of ,,trip bonds issued during such year1 such excess shall be carried forward to #a or more succeeding calendar years as an addition to the ,,trip bond limitation amount under paragraph 7#b7 for such succeeding calendar year and until used by issuance of ,,trip bonds4 7e7 ,special rules relating to expenditures 7#a7 ,in general ,an issue shall be treated as meeting the requirements of this subsection if1 as of the date of issuance1 the ,state infrastructure bank reasonably expects-- 7,a7 at least #ajj percent of the available project proceeds of such issue are to be spent for #a or more qualified projects within the #e-year expenditure period beginning on such date1 7,b7 within the #ab-month period beginning on such date1 to incur a binding commitment with a third party for such third party-- 7i7 to spend at least #aj percent of the proceeds of such issue within the #ab-month period following the date of entering into such commitment1 or 7ii7 to commence construction within the #ab-month period following the date of entering into such commitment with respect to any qualified project or combination of qualified projects the costs of which account for at least #aj percent of the proceeds of such issue1 and 7,c7 to proceed with due diligence to complete such projects and to spend the proceeds of such issue4 7#b7 ,rules regarding continuing compliance after #e-year determination ,to the extent that less than #ajj percent of the available project proceeds of such issue are expended by the close of the #e-year expenditure period beginning on the date of issuance1 the ,state infrastructure bank shall redeem all of the nonqualified bonds within #ij days after the end of such period4 ,for purposes of this paragraph1 the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section #adb4 7f7 ,recapture of portion of credit where cessation of compliance ,if any bond which when issued purported to be a ,,trip bond ceases to be such a bond1 the ,state infrastructure bank shall pay to the ,united ,states 7at the time required by the ,secretary7 an amount equal to the sum of-- 7#a7 the aggregate of the credits allowable under section #ed;,a with respect to such bond 7determined without regard to section #ed;,a7c77 for taxable years ending during the calendar year in which such cessation occurs and each succeeding calendar year ending with the calendar year in which such bond is redeemed by the bank1 and 7#b7 interest at the underpayment rate under section #ffba on the amount determined under paragraph 7#a7 for each calendar year for the period beginning on the first day of such calendar year4 7g7 ,,trip ,bonds ,trust ,accounts 7#a7 ,in general ,the following amounts shall be held in a ,,trip ,bonds ,trust ,account 7including #a or more subaccounts7 by each ,state infrastructure bank3 7,a7 ,the proceeds from the sale of all bonds issued by or for the benefit of such bank under this section4 7,b7 ,the amounts described in subsection 7h74 7,c7 ,any earnings on any amounts described in subparagraph 7,a7 or 7,b74 7#b7 ,use of funds ,amounts in each ,,trip ,bonds ,trust ,account may be used only to pay costs of qualified projects1 pay interest 7if any7 on ,,trip bonds1 and redeem ,,trip bonds1 except that amounts withdrawn from the ,,trip ,bonds ,trust ,account to pay costs of qualified projects may not exceed the proceeds from the sale of ,,trip bonds described in subsection 7a77#a74 7#c7 ,use of remaining funds in ,,trip bonds trust account ,upon the redemption of all ,,trip bonds issued by the ,state infrastructure bank under this section1 any remaining amounts in the ,,trip ,bonds ,trust ,account held by such bank shall be available to pay the costs of any qualified project in such ,state4 7#d7 ,applicability of ,federal law ,the requirements of any ,federal law1 including titles #bc1 #dj1 and #di of the ,united ,states ,code1 which would otherwise apply to projects to which the ,united ,states is a party or to funds made available under such law and projects assisted with those funds shall apply to-- 7,a7 funds made available under each ,,trip ,bonds ,trust ,account for similar qualified projects1 other than contributions required under subsection 7h71 and 7,b7 similar qualified projects assisted through the use of such funds4 7#e7 ,investment ,subject to subsections 7e7 and 7f71 it shall be the duty of the ,state infrastructure bank to invest in investment grade obligations such portion of the ,,trip ,bonds ,trust ,account held by such ,bank as is not1 in the judgment of such bank1 required to meet current withdrawals4 ,to the extent cost-effective1 investments should be made in securities that support infrastructure investment at the ,state and local level4 7h7 ,state contribution requirements 7#a7 ,in general ,for purposes of subsection 7a77#f71 the ,state contribution requirement of this subsection is met if the ,state infrastructure bank has obtained a commitment1 not later than the date of issuance of the bond1 for deposit into the ,,trip ,bonds ,trust ,account equal annual installments sufficient1 together with earnings thereon1 to repay the principal of the ,,trip bond at maturity4 7#b7 ,state contributions may not include ,federal funds ,for purposes of this subsection1 ,state contributions shall not be derived1 directly or indirectly1 from ,federal funds1 including any transfers from the ,highway ,trust ,fund under section #iejc4 7#c7 ,requirements in lieu of any other matching contribution requirements ,for purposes of subsection 7g77#d71 the ,,trip bond proceeds may be applied toward any ,state matching contribution requirement under any other ,federal law4 7i7 ,utilization of updated construction technology for qualified projects ,for purposes of subsection 7a77#g71 the requirement of this subsection is met if the appropriate ,state agency relating to the qualified project is utilizing updated construction technologies4 7j7 ,other definitions and special rules ,for purposes of this section-- 7#a7 ,state infrastructure bank 7,a7 ,in general ,the term ,state infrastructure bank means a ,state infrastructure bank established under section #faj of title #bc1 ,united ,states ,code1 and includes a joint venture among #b or more ,state infrastructure banks4 ,such term also includes1 with respect to any ,state that has not established a ,state infrastructure bank prior to the date of the enactment of this section1 the ,state ,department of ,transportation of such ,state1 or such other public instrumentality designated by the ,state to issue bonds under this section4 7,b7 ,special authority ,notwithstanding any other provision of law1 a ,state infrastructure bank shall be authorized to perform any of the functions necessary to carry out the purposes of this section1 including the making of direct grants to qualified projects from available project proceeds of ,,trip bonds issued by such bank4 7#b7 ,prohibition on use of highway trust fund ,notwithstanding any other provision of law1 no funds derived from the ,highway ,trust ,fund established under section #iejc shall be used to pay for credits under this section4 4 7b7 ,conforming amendments 7#a7 ,paragraph 7#a7 of section #ed;,a7d7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking or at the end of subparagraph 7,d71 7,b7 by inserting or at the end of subparagraph 7,e71 7,c7 by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 a ,,trip bond1 1 and 7,d7 by inserting 7paragraphs 7#c71 7#d71 and 7#f71 in the case of a ,,trip bond7 after and 7#f74 7#b7 ,subparagraph 7,c7 of section #ed;,a7d77#b7 of such ,code is amended by striking and at the end of clause 7iv71 by striking the period at the end of clause 7v7 and inserting 1 and1 and by adding at the end the following new clause3 7vi7 in the case of a ,,trip bond1 a purpose specified in section #ed;,g7a77#a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,i of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #ed;,g4 ,,trip bonds4 4 7d7 ,effective date ,the amendments made by this ,act shall apply to bonds issued after ,december #ca1 #bjac4