,i #aafth ,,congress #ast ,session ,h4 ,r4 #dije ,,in ,,the ,,house ,,of ,,representatives ,october #bi1 #bjai,mrs4 ,bustos introduced the following bill2 which was referred to the ,committee on ,transportation and ,infrastructure ,a ,,bill ,to direct the ,secretary of ,transportation to carry out a program to provide secured loans to private entities to carry out projects for the transportation of anthropogenic carbon dioxide1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,investing in ,energy ,systems for the ,transport of ,,co#b ,act of #bjai4 #b4 ,sense of ,congress ,it is the sense of ,congress that each ,state should consider-- 7#a7 qualifying all anthropogenic carbon dioxide pipelines as pollution control devices under the laws and regulations of such ,state2 and 7#b7 the establishment of a minimum of a #aj-year waiver of ad valorem and property taxes for such pipelines4 #c4 ,carbon transport infrastructure financing program 7a7 ,in general ,the ,secretary of ,transportation shall carry out a program to provide ,federal credit instruments to private entities to carry out projects for the construction of common carrier pipelines for the transportation of anthropogenic carbon dioxide as a supercritical fluid4 7b7 ,applications ,to be eligible to receive assistance under this section1 an entity shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7c7 ,projects eligible for assistance ,the following projects may be carried out with amounts made available under this section3 7#a7 ,a project to construct1 or increase the diameter of1 a common carrier trunk pipeline for the transportation of anthropogenic carbon dioxide as a supercritical fluid between one or more-- 7,a7 carbon dioxide capture or production facilities2 7,b7 carbon dioxide pipelines2 7,c7 carbon dioxide storage facilities2 or 7,d7 carbon dioxide utilization facilities4 7#b7 ,a project to construct common carrier feeder pipelines for the transportation of anthropogenic carbon dioxide as a supercritical fluid between capture1 production1 refining1 or manufacturing facilities or qualified facilities and a trunk pipeline described in paragraph 7#a74 7d7 ,determination of eligibility and project selection ,to be eligible to receive financial assistance under this section1 an entity shall meet the following criteria1 as determined by the ,secretary3 7#a7 ,credit worthiness 7,a7 ,in general ,the entity shall be creditworthy1 as determined by the ,secretary4 7,b7 ,considerations ,in determining the creditworthiness of an entity1 the ,secretary shall take into consideration relevant factors1 including-- 7i7 the terms1 conditions1 financial structure1 and security features of the proposed financing2 7ii7 the dedicated revenue sources that will secure or fund the project obligations2 7iii7 the financial assumptions upon which the project is based2 and 7iv7 the financial soundness and credit history of the entity4 7,c7 ,security features ,the ,secretary shall ensure that any financing for the project has appropriate security features1 such as a rate covenant1 supporting the project obligations to ensure repayment4 7,d7 ,rating opinion letters 7i7 ,preliminary rating opinion letter ,the ,secretary shall require each entity to provide1 at the time of application1 a preliminary rating opinion letter from at least #a rating agency indicating that the senior obligations of the project 7which may be the ,federal credit instrument7 have the potential to achieve an investment-grade rating4 7ii7 ,final rating opinion letter ,the ,secretary shall require each entity to provide1 prior to final acceptance and financing of the project1 final rating opinion letters from at least #b rating agencies indicating that the senior obligations of the project have an investment-grade rating4 7#b7 ,proposed project ,the ,secretary shall ensure that any common carrier trunk pipeline constructed or increased under this section has1 or is increased to1 an external diameter of not less than #cj inches4 7e7 ,selection of projects 7#a7 ,in general ,in carrying out the program under subsection 7a71 the ,secretary may not provide a secured loan to finance more than one common carrier trunk pipeline project the majority of the pipeline length of which will be constructed in a single census region4 7#b7 ,census region defined ,for purposes of this section1 the term census region means #a of the #d census regions 7northeast1 south1 midwest1 and west7 that are designated as census regions by the ,bureau of the ,census as of the date of enactment of this ,act4 7#c7 ,priority ,in carrying out the program under subsection 7a7 for projects described in 7c77#a71 the ,secretary shall give priority to applications that propose construction of a common carrier trunk pipeline project in an area where pipelines or other linear infrastructure already exist4 7f7 ,secured loans 7#a7 ,agreements 7,a7 ,in general ,subject to paragraphs 7#b7 and 7#c71 the ,secretary may enter into agreements with #a or more entities to make secured loans1 the proceeds of which shall be used to finance project costs of any project selected under this section4 7,b7 ,financial risk assessment ,before entering into an agreement under this subsection for a secured loan1 the ,secretary1 in consultation with the ,director of the ,office of ,management and ,budget and each rating agency providing a rating opinion letter under this section1 shall determine an appropriate capital reserve subsidy amount for the secured loan1 taking into account each such rating opinion letter4 7,c7 ,investment-grade rating requirement ,the execution of a secured loan under this section shall be contingent on receipt by the senior obligations of the project of an investment-grade rating4 7#b7 ,terms and limitations 7,a7 ,in general ,a secured loan provided for a project under this section shall be subject to such terms and conditions1 and contain such covenants1 representations1 warranties1 and requirements 7including requirements for audits71 as the ,secretary determines to be appropriate4 7,b7 ,maximum amount ,the amount of a secured loan under this section shall not exceed #hj percent of the reasonably anticipated project costs4 7,c7 ,payment ,a secured loan under this section-- 7i7 shall be payable1 in whole or in part1 from user fees or other dedicated revenue sources that also secure the senior project obligations of the relevant project2 7ii7 shall include a rate covenant1 coverage requirement1 or similar security feature supporting the project obligations2 and 7iii7 may have a lien on revenues described in subparagraph 7,a71 subject to any lien securing project obligations4 7,d7 ,interest rate ,the interest rate on a secured loan under this section shall be not less than the yield on ,united ,states ,treasury securities of a similar maturity to the maturity of the secured loan on the date of execution of the loan agreement4 7,e7 ,maturity date ,the final maturity date of a secured loan under this section shall be the earlier of-- 7i7 the date that is #ce years after the date of substantial completion of the relevant project 7as determined by the ,secretary72 or 7ii7 if the useful life of the project 7as determined by the ,secretary7 is less than #ce years1 the useful life the project4 7,f7 ,nonsubordination ,a secured loan under this section shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy1 insolvency1 or liquidation of the entity carrying out the project4 7,g7 ,financing fees ,on request of an entity1 any fees to be paid by the entity under this section shall be financed as part of the loan4 7#c7 ,repayment 7,a7 ,schedule ,the ,secretary shall establish a repayment schedule for each secured loan provided under this section1 based on the projected cash flow from project revenues and other repayment sources4 7,b7 ,commencement ,scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than #e years after the date of substantial completion of the project 7as determined by the ,secretary74 7,c7 ,deferred payments 7i7 ,authorization ,if1 at any time after the date of substantial completion of a project for which a secured loan is provided under this section1 the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the secured loan1 the ,secretary subject to clause 7iii71 may allow the entity to add unpaid principal and interest to the outstanding balance of the secured loan4 7ii7 ,interest ,any payment deferred under clause 7i7 shall-- 7,i7 continue to accrue interest in accordance with paragraph 7#b77;,d7 until fully repaid2 and 7,,ii7 be scheduled to be amortized over the remaining term of the secured loan4 7iii7 ,criteria 7,i7 ,in general ,any payment deferral under clause 7i7 shall be contingent on the project meeting such criteria as the ,secretary may establish4 7,,ii7 ,repayment standards ,the criteria established under subclause 7,i7 shall include standards for reasonable assurance of repayment4 7iv7 ,prepayment 7,i7 ,use of excess revenues ,any excess revenues that remain after satisfying scheduled debt service requirements on the project obligations and secured loan and all deposit requirements under the terms of any trust agreement1 bond resolution1 or similar agreement securing project obligations may be applied annually to prepay a secured loan under this section without penalty4 7,,ii7 ,use of proceeds of refinancing ,a secured loan under this section may be prepaid at any time without penalty from the proceeds of refinancing from non-,federal funding sources4 7#d7 ,sale of secured loans 7,a7 ,in general ,subject to subparagraph 7,b71 as soon as practicable after the date of substantial completion of a project and after providing a notice to the entity1 the ,secretary may sell to another entity or reoffer into the capital markets a secured loan for a project under this section1 if the ,secretary determines that the sale or reoffering can be made on favorable terms4 7,b7 ,consent of entity ,in making a sale or reoffering under subparagraph 7,a71 the ,secretary may not change the original terms and conditions of the secured loan without the written consent of the entity4 7#e7 ,loan guarantees 7,a7 ,in general ,the ,secretary may provide a loan guarantee to a lender in lieu of making a secured loan under this section1 if the ,secretary determines that the budgetary cost of the loan guarantee is substantially the same as that of a secured loan4 7,b7 ,terms ,the terms of a loan guarantee provided under this paragraph shall be consistent with the terms established in this section for a secured loan1 except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the entity and the lender1 with the consent of the ,secretary4 7#f7 ,limitation ,no project receiving ,federal credit assistance under this section may be financed 7directly or indirectly71 in whole or in part1 with proceeds of any obligation-- 7,a7 the interest on which is exempt from the tax imposed under chapter #a of the ,internal ,revenue ,code of #aihf2 or 7,b7 with respect to which credit is allowable under subpart ,i or ,j of part ,,iv of subchapter ,a of chapter #a of such ,code4 7g7 ,program administration 7#a7 ,requirement ,the ,secretary shall establish a uniform system to service the ,federal credit instruments made available under this section4 7#b7 ,fees ,the ,secretary may collect and spend fees1 contingent on authority being provided in appropriations ,acts1 at a level that is sufficient to cover-- 7,a7 the costs of expert firms retained under paragraph 7#d72 and 7,b7 all or a portion of the costs to the ,federal ,government of servicing the ,federal credit instruments provided under this section4 7#c7 ,servicer 7,a7 ,in general ,the ,secretary may appoint a financial entity to assist the ,secretary in servicing the ,federal credit instruments provided under this section4 7,b7 ,duties ,a servicer appointed under subparagraph 7,a7 shall act as the agent for the ,secretary4 7,c7 ,fee ,a servicer appointed under subparagraph 7,a7 shall receive a servicing fee1 subject to approval by the ,secretary4 7#d7 ,assistance from experts ,the ,secretary may retain the services1 including counsel1 of organizations and entities with expertise in the field of project finance to assist in the underwriting and servicing of ,federal credit instruments provided under this section4 7h7 ,statutory construction ,nothing in this section shall be construed to-- 7#a7 supersede the applicability of other requirements of ,federal law 7including regulations72 7#b7 relieve any recipient of financial assistance under this section of any obligation to obtain any required ,state1 local1 or tribal permit or approval with respect to the project2 7#c7 limit the right of any unit of ,state1 local1 or tribal government to approve or regulate any rate of return on private equity invested in the project2 or 7#d7 otherwise supersede any ,state1 local1 or tribal law 7including any regulation7 applicable to the construction or operation of the project4 7i7 ,prevailing rate of wage 7#a7 ,in general ,the ,secretary shall ensure that laborers and mechanics employed by contractors and subcontractors on a project financed in whole or in part by a ,federal credit instrument made available under this section will be paid wages at rates not less than those prevailing on similar construction in the locality1 as determined by the ,secretary of ,labor under subchapter ,,iv of chapter #ca of title #dj4 7#b7 ,authority of ,secretary of ,labor ,with respect to the labor standards specified in paragraph 7#a71 the ,secretary of ,labor shall have1 with respect to the labor standards specified in this subsection1 the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#ae ,f4,r4 #cagf7 and section #cade of title #dj1 ,united ,states ,code4 7j7 ,regulations ,the ,secretary may issue such regulations as the ,secretary determines appropriate to carry out this section4 7k7 ,use of ,american iron1 steel1 and manufactured goods 7#a7 ,in general ,except as provided by paragraph 7#b71 the ,secretary shall make available a ,federal credit instrument for a project under this section only if all of the iron1 steel1 and manufactured goods used in the project are produced in the ,united ,states4 7#b7 ,exception ,upon the submission of a request for a waiver of the requirements under paragraph 7#a7 by an entity1 the ,secretary may waive paragraph 7#a7 if the ,secretary finds that-- 7,a7 applying paragraph 7#a7 would be inconsistent with the public interest2 7,b7 iron1 steel1 and the relevant manufactured goods are not produced in the ,united ,states in sufficient and reasonably available quantities and of a satisfactory quality2 or 7,c7 inclusion of iron1 steel1 and manufactured goods produced in the ,united ,states will increase the cost of the overall project by more than #be percent4 7#c7 ,written waiver determination and annual report 7,a7 ,in general ,if the ,secretary receives a request for a waiver under this subsection1 the ,secretary shall-- 7i7 make available to the public on an informal basis a copy of the request and information available to the ,secretary concerning the request2 and 7ii7 allow for informal public input on the request for at least #ae days prior to making a finding based on the request4 7,b7 ,requirement ,the ,secretary shall make the request and accompanying information required under subparagraph 7,a7 available by electronic means1 including on website of the ,department of ,energy4 7#d7 ,consistent with obligations ,this subsection shall be applied in a manner consistent with the ,united ,states obligations under international agreements4 7l7 ,definitions ,in this section3 7#a7 ,federal credit instrument ,the term ,federal credit instrument means a secured loan or loan guarantee authorized to be made available under this section with respect to a project4 7#b7 ,qualified facility ,the term qualified facility has the meaning given the term in section #de,q of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #de,q74 7#c7 ,investment-grade rating ,the term investment-grade rating means a rating of ,,bbb minus1 ,baa#c1 bbb minus1 ,,bbb 7low7 or higher assigned by a rating agency to project obligations4 7#d7 ,lender 7,a7 ,in general ,the term lender means any non-,federal qualified institutional buyer 7as defined in section #bcj4add;,a7a7 of title #ag1 ,code of ,federal ,regulations 7or a successor regulation71 known as ,rule #add;,a7a7 of the ,securities and ,exchange ,commission and issued under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;a et seq4774 7,b7 ,inclusion ,the term lender includes-- 7i7 a qualified retirement plan 7as defined in section #digd7;c7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #digd7;c777 that is a qualified institutional buyer2 and 7ii7 a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #dad7;d777 that is a qualified institutional buyer4 7#e7 ,loan guarantee ,the term loan guarantee means any guarantee or other pledge by the ,secretary to pay all or part of the principal of1 and interest on1 a loan or other debt obligation issued by an entity and funded by a lender4 7#f7 ,produced in the ,united ,states ,the term produced in the ,united ,states means1 in the case of iron or steel1 that all manufacturing processes1 including the application of a coating1 must occur in the ,united ,states4 7#g7 ,project obligation 7,a7 ,in general ,the term project obligation means any note1 bond1 debenture1 or other debt obligation issued by an entity in connection with the financing of a project4 7,b7 ,exclusion ,such term does not include a ,federal credit instrument4 7#h7 ,rating agency ,the term rating agency means a credit rating agency registered with the ,securities and ,exchange ,commission as a nationally recognized statistical rating organization 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a7774 7#i7 ,secured loan ,the term secured loan means a direct loan or other debt obligation issued by an entity and funded by the ,secretary in connection with the financing of a project under this section4 7#aj7 ,state ,the term ,state means-- 7,a7 a ,state2 7,b7 the ,district of ,columbia2 7,c7 the ,commonwealth of ,puerto ,rico2 and 7,d7 any other territory or possession of the ,united ,states4 7#aa7 ,subsidy amount ,the term subsidy amount means the amount of budget authority sufficient to cover the estimated long-term cost to the ,federal ,government of a ,federal credit instrument1 as calculated on a net present value basis1 excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa et seq474 7#ab7 ,substantial completion ,the term substantial completion1 with respect to a project1 means the earliest date on which a project is considered to perform the functions for which the project is designed4 7m7 ,authorization of appropriations 7#a7 ,in general ,there are authorized to be appropriated-- 7,a7 #djj1jjj1jjj to carry out projects described in subsection 7c77#a72 and 7,b7 #ajj1jjj1jjj to carry out projects described in subsection 7c77#b74 7#b7 ,available until expended ,any funds appropriated pursuant to paragraph 7#a7 are authorized to remain available until expended4 7#c7 ,administrative costs ,of the funds made available to carry out this section1 the ,secretary may use for the administration of this section1 including for the provision of technical assistance to aid project sponsors in obtaining the necessary approvals for the project1 not more than #b1jjj1jjj for each fiscal year4