S 936
112th CONGRESS
1st Session
S. 936
To establish the American Infrastructure Investment Fund and
other activities to facilitate investments in infrastructure projects
that significantly enhance the economic competitiveness of the United
States by improving economic output, productivity, or competitive commercial
advantage, and for other purposes.
IN THE SENATE OF THE UNITED STATES
May 10, 2011
Mr. ROCKEFELLER (for himself and Mr. LAUTENBERG) introduced the following
bill; which was read twice and referred to the Committee on Commerce,
Science, and Transportation
A BILL
To establish the American Infrastructure Investment Fund and
other activities to facilitate investments in infrastructure projects
that significantly enhance the economic competitiveness of the United
States by improving economic output, productivity, or competitive commercial
advantage, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `American Infrastructure
Investment Fund Act of 2011'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. American Infrastructure Investment Fund.
Sec. 3. National infrastructure investment grants.
Sec. 4. Multi-modal transportation funding.
SEC. 2. AMERICAN INFRASTRUCTURE INVESTMENT FUND.
(a) Establishment of Fund- Chapter 3 of title 49, United States Code,
is amended--
(1) in the table of sections, by adding at the end the following:
`subchapter iv--american infrastructure investment fund
`362. Establishment of Fund.
`363. Organizational structure and duties.
`364. Fund authorities and assistance.
`365. Studies and reports.';
(2) by adding at the end the following:
`SUBCHAPTER IV--AMERICAN INFRASTRUCTURE INVESTMENT FUND
`Sec. 361. Definitions
`(1) BOARD- The term `Board' means the Board of Directors of the Fund
appointed pursuant to section 363(b).
`(2) DIRECT LOAN- The term `direct loan' has the meaning given the
term under section 502(1) of the Congressional Budget Act of 1974
(2 U.S.C. 661a(1)).
`(3) ECONOMIC COMPETITIVENESS- The term `economic competitiveness'
means the ability of the economy to more efficiently produce goods
and deliver services, including--
`(A) reductions in travel time of goods and people, including reductions
in average delay or the uncertainty of travel time; and
`(B) net benefits to society through economic benefits attributable
to improving the spatial clustering of economic activity.
`(4) ELIGIBLE PROJECT- The term `eligible project' means a capital
project that--
`(A) advances the objectives of this subchapter;
`(B) is comprised of activities included in a regional, State, or
national plan, either at the time of submission of the application
or before the obligation of funds from the Fund;
`(C) has eligible project costs related to a single project, or
has aggregate eligible project costs related to a program of projects
that are coordinated to achieve a unified improvement; and
`(D) is a transportation-related project.
`(5) ELIGIBLE FUNDING RECIPIENT- The term `eligible funding recipient'--
`(A) means an entity that has received a financing award from the
Fund;
`(i) a non-Federal governmental entity, agency, or instrumentality;
or
`(ii) a nongovernmental entity, such as a corporation, partnership,
joint venture, or other instrumentality, that seeks funding for
an eligible project; and
`(C) shall have a non-Federal governmental cosponsor of the project
if it is a non-governmental entity.
`(6) ELIGIBLE PROJECT COST- The term `eligible project cost'--
`(A) includes costs associated with development phase planning and
design activities, construction, acquisition, rehabilitation, environmental
remediation, interest expense during construction or reconstruction,
and reasonable required reserves; and
`(B) excludes operating costs, research and development costs, and
any other costs not otherwise specifically provided for in subparagraph
(A).
`(7) EXECUTIVE DIRECTOR- The term `Executive Director' means the Executive
Director of the Fund appointed pursuant to section 363(a)(1).
`(8) FUND- The term `Fund' means the American Infrastructure Investment
Fund of the Department of Transportation established under section
362.
`(9) INVESTMENT PLAN- The term `Investment Plan' means a written mutual
agreement between the Fund and an applicant that outlines the prospective
terms of financial assistance to be invested by the Fund.
`(10) LINE OF CREDIT- The term `line of credit' means an agreement
entered into between the Fund and an eligible funding recipient to
provide a direct loan at a future date upon the occurrence of certain
events.
`(11) LOAN GUARANTEE- The term `loan guarantee' has the meaning given
the term under section 502(3) of the Congressional Budget Act of 1974
(2 U.S.C. 661a(3)).
`(12) OPERATING GUIDANCE- The term `Operating Guidance' means the
detailed description of the Fund's operating policies and procedures
that has been published in accordance with this subchapter.
`(13) QUALIFIED APPLICATION- The term `Qualified Application' means
an application that the Executive Director has certified to have met
eligibility and qualification standards under this subchapter.
`(14) RURAL- The term `rural' means all population and territory that
are not within an Urbanized Area (as such term is defined in the most
recent decennial United States census).
`(15) SECRETARY- Except as otherwise specified, the term `Secretary'
means the Secretary of Transportation.
`(16) TRANSPORTATION-RELATED PROJECT- The term `transportation-related
project' means a project that is part of, or related to, a transportation
improvement, including projects related to the construction or improvement
of--
`(A) a passenger or freight rail line;
`(E) an air traffic control system;
`(F) a port or marine facility;
`(H) a transmission or distribution pipeline;
`(I) public transportation facilities or systems;
`(J) intercity passenger bus or passenger rail facilities or equipment;
or
`(K) freight rail facilities or equipment.
`Sec. 362. Establishment of Fund
`(a) Establishment- There is established in the Department of Transportation
an entity to be known as the `American Infrastructure Investment Fund'.
`(1) PRIMARY OBJECTIVE- The Fund's primary objective shall be to invest
in infrastructure projects that provide measurable improvements to
the economic competitiveness of all or part of the United States by
increasing or otherwise improving economic output, productivity, or
competitive commercial advantage.
`(2) SECONDARY OBJECTIVES- The Fund's secondary objectives shall be--
`(A) to provide funding for projects that face significant funding
barriers due to problems associated with the need to combine resources
across multiple jurisdictions or modes of transportation;
`(B) to improve the efficiency or throughput of a national or regional
transportation network by--
`(i) improving the integration between networks; or
`(ii) improving the condition, performance, or long-term cost
structure of existing infrastructure;
`(C) to improve the safety of transportation facilities and systems,
as measured by the reduction in risk of transportation-related crashes,
injuries, or deaths; and
`(D) to improve the environmental sustainability of a national or
regional transportation network, as measured by--
`(i) improvement in energy efficiency;
`(ii) reduction in greenhouse gas and other harmful emissions;
`(iii) conservation of natural resources;
`(iv) improvement in water quality;
`(v) improvement in infrastructure resilience to environmental
hazards and natural disasters; and
`(vi) other beneficial environmental impacts.
`(1) IN GENERAL- The Fund shall advance the objectives set forth in
subsection (b) by providing financial assistance for individual projects
or programs of related projects identified in State, regional, or
national plans and designed to significantly improve national or regional
economic competitiveness.
`(2) PROJECT PORTFOLIO- The Fund shall--
`(A) target projects or programs of related projects with a demonstrated
difficulty in obtaining complete financing through other available
public or private sources of funds, for reasons including project
complexity, modes, or other comparable transactional barriers;
`(B) seek to identify appropriate Investment Plans for selected
projects and programs of projects; and
`(C) use Fund resources to build a portfolio of transformational
investments that--
`(i) promotes greater efficiency in the movement of freight or
the provision of services;
`(ii) promotes greater efficiency in the movement of people;
`(iii) integrates multiple transportation modes in the movement
of passengers or freight;
`(iv) promotes the use of innovation and best practices in the
planning, design, development, and delivery of projects, including
practices that promote performance-based decision making to achieve
national, State, or regional objectives;
`(v) promotes cross-jurisdictional infrastructure planning and
coinvestment among a broad range of participants, including States,
tribal governments, municipalities, and public and private investors;
and
`(vi) integrates transportation infrastructure investment planning,
such as regional transportation plans, with land-use economic
development and other infrastructure Investment Plans.
`(3) INVESTMENT PROSPECTUS-
`(A) PUBLICATION- Not later than 1 year after the date of the enactment
of the American Infrastructure Investment Fund Act of 2011, the
Fund shall publish a detailed description of its strategy in an
Investment Prospectus that--
`(i) specifies what will be considered significant to the economic
competitiveness of all or part of the United States in a manner
consistent with the primary objective set forth in subsection
(b)(1);
`(ii) specifies the priorities and strategic focus of the Fund
in--
`(I) reaching the objectives set forth in subsection (b); and
`(II) carrying out the Fund strategy described in this subsection;
`(iii) describes in detail--
`(I) the framework and methodology for calculating the qualification
score assigned under section 364(f)(3);
`(II) the data to be requested from applicants; and
`(III) the formula to be applied to such data to calculate the
qualification score;
`(iv) describes how selection criteria will be applied by the
Fund to determine the competitiveness of an application and its
qualification score relative to other current applications and
previously funded applications; and
`(v) describes how the qualification score methodology and project
selection framework are consistent with maximizing the Fund's
goals in urban and rural areas.
`(B) UPDATES- Not later than 2 years after the original publication
of the Investment Prospectus, and biennially thereafter, the Fund
shall publish an updated Investment Prospectus.
`(C) APPROVAL- The Fund may not publish the Investment Prospectus
or any subsequent updates under subparagraph (B) until the Board
has approved the Investment Prospectus by a majority vote.
`(A) PUBLICATION- Not later than 1 year after the date of the enactment
of the American Infrastructure Investment Fund Act of 2011, the
Fund shall establish and publish its Operating Guidance for the
management of the Fund, which shall--
`(i) establish general operating procedures to be followed by
the Fund in carrying out its authorities under this subchapter;
`(ii) establish criteria, requirements, and standards regarding
the provisions of various forms of assistance authorized under
this subchapter, including the various forms and terms of credit
assistance that are consistent with the requirements under this
subchapter;
`(iii) establish an application and award process for Planning
and Feasibility Loans in accordance with the provisions under
this subchapter;
`(iv) establish disclosure and application procedures for nominating
or otherwise proposing applications for project assistance, either
solicited or unsolicited, that are consistent with the requirements
under this subchapter;
`(v) describe in detail the form and timing of data and other
information required of applicants in conjunction with consideration
of an application for financial assistance under this subchapter;
and
`(vi) establish a schedule of regular time intervals for the submission
for consideration of sets of 1 or more Investment Plans to the
Board.
`(B) REVIEW AND UPDATE- The Fund shall periodically review, and
may update, the Operating Guidance published under subparagraph
(A).
`(5) RULEMAKING- Paragraphs (3) and (4) shall be carried out in accordance
with the rulemaking procedures set forth in section 553 of title 5,
United States Code.
`Sec. 363. Organizational structure and duties
`(1) APPOINTMENT; AUTHORITY- The President shall appoint, by and with
the advice and consent of the Senate, an Executive Director, who shall
be the chief executive officer of the Fund, and shall have such executive
functions, powers, and duties as set forth in this subchapter or prescribed
by the Board.
`(2) SUPERVISION- The Executive Director shall be subject to the supervision
and direction of the Secretary of Transportation, consistent with
the Executive Director's duties under this subchapter and other requirements
set forth in the Operating Guidance referred to in section 362(c)(4).
`(3) QUALIFICATIONS- The Executive Director shall have demonstrated
expertise in at least 2 of the following 3 areas:
`(B) Project, public, or corporate finance.
`(C) Organizational management.
`(4) TERM OF SERVICE; VACANCY- The Executive Director shall serve
a 5-year term, which may be renewed in accordance with paragraph (1).
A vacancy in the position of Executive Director shall be filled as
expeditiously as possible in the manner in which the original appointment
was made.
`(5) DUTIES- In addition to the other activities required to carry
out the authorities and purposes of the Fund under this subchapter,
the Executive Director shall--
`(A) be responsible for the day-to-day operations of the Fund;
`(B) establish and approve the Operating Guidance in accordance
with section 362(c)(4);
`(C) hire and supervise a staff of qualified transportation infrastructure
planning professionals that will--
`(i) establish and maintain a project application origination
capability at the Fund;
`(ii) conduct a nationwide search for projects that promote the
strategy set forth in the most recently published Investment Prospectus;
and
`(iii) solicit applications from eligible funding recipients to
finance projects described in clause (ii);
`(D) hire and supervise a staff of qualified economics professionals
that will--
`(i) establish and maintain an analysis capability at the Fund;
`(ii) collect and analyze application data; and
`(iii) report to the Executive Director on qualification scores,
measures of uncertainty, and other analyses of applications;
`(E) hire and supervise a staff of qualified project finance professionals
that will--
`(i) establish and maintain an investment planning process capability
at the Fund;
`(ii) review qualified applications; and
`(iii) structure Investment Plans; and
`(F) hire and supervise a staff of qualified project management
professionals that will--
`(i) establish and maintain a technical assistance capability
at the Fund;
`(ii) assist those entities receiving funding from the Fund in
the successful execution of their Investment Plans; and
`(iii) otherwise implement the funding decisions of the Secretary.
`(1) ESTABLISHMENT- There is established within the Fund a deliberative
body to be known as the `Board of Directors'.
`(2) MEMBERSHIP- The Board shall be composed of 7 members, including--
`(A) the Secretary of the Treasury, the Secretary of Commerce, and
the Secretary of Energy, who shall serve as permanent members; and
`(B) 4 executives of the Department of Transportation appointed
by the Secretary, of whom--
`(i) not more than 2 shall serve concurrently as--
`(I) the Deputy Secretary;
`(II) the Under Secretary of Transportation for Policy;
`(III) the General Counsel;
`(IV) the Chief Financial Officer;
`(V) the Assistant Secretary of Transportation for Policy; or
`(VI) the Assistant Secretary of Transportation for Aviation
and International Affairs; and
`(ii) not more than 2 shall serve for not longer than 2 years,
while concurrently serving as--
`(I) the Administrator of the Federal Aviation Administration;
`(II) the Administrator of the Federal Highway Administration;
`(III) the Administrator of the Federal Railroad Administration;
`(IV) the Administrator of the Federal Transit Administration;
`(V) the Administrator of the Maritime Administration;
`(VI) the Administrator of the Pipeline and Hazardous Materials
Safety Administration; or
`(VII) the Administrator of the Federal Motor Carrier Safety
Administration.
`(3) DUTIES- The Board shall--
`(A) not later than 180 days after the date of the enactment of
the American Infrastructure Investment Fund Act of 2011, establish
and approve the Investment Prospectus, in consultation with the
Fund Advisory Committee;
`(B) on each biennial anniversary of its original publication, update
the Investment Prospectus, in consultation with the Fund Advisory
Committee;
`(C) review Investment Plans, related application materials, and
other analyses provided to the Board by the Executive Director;
`(D) determine by majority vote whether or not to recommend Investment
Plans submitted by the Executive Director to the Secretary; and
`(E) certify reports to Congress and other publications of the Fund.
`(4) MAJORITY VOTE REQUIRED- Each action or decision by the Board
shall be by majority vote of all members, whether in person or in
absentia. Each member shall be provided a reasonable opportunity to
vote on all matters before the Board.
`(c) Fund Advisory Committee-
`(1) ESTABLISHMENT- Not later than 180 days after the date of the
enactment of the American Infrastructure Investment Fund Act of 2011,
the President shall establish an advisory committee, to be known as
the `Fund Advisory Committee'.
`(A) APPOINTMENT- The President shall appoint not fewer than 5 people
and not more than 7 people to serve 3-year terms as members of the
Fund Advisory Committee, including 1 member to serve as Chair of
the Committee.
`(B) QUALIFICATIONS- Each member shall have expertise in--
`(i) economics and economic analysis;
`(ii) project or fund management;
`(iii) portfolio or fund management;
`(iv) organized labor interests;
`(v) environmental interests;
`(vi) American business and trade interests;
`(vii) rural community and economic development;
`(viii) metropolitan economic development and clustering of economic
development;
`(ix) State Department of Transportation or Metropolitan Planning
Organization policies and priorities; or
`(x) other infrastructure planning, redevelopment, and development-related
codes and policies.
`(C) REPRESENTATION- The President shall ensure that the membership
of the Fund Advisory Committee--
`(ii) is geographically and economically balanced; and
`(iii) is balanced in terms of the functions to be performed by
the Fund Advisory Committee.
`(3) ADVICE- The Fund Advisory Committee shall advise the Board and
the Secretary with respect to--
`(A) the alignment of the Investment Prospectus with the primary
and secondary objectives, and other elements of the Fund strategy
described in section 362(c);
`(B) the alignment of the framework and methodology used to determine
qualification scores and uncertainty estimates with the primary
objective, secondary objectives, and the Fund strategy;
`(C) the consistency of the calculation of qualification scores
and uncertainty estimates with academic standards for analytical
rigor and data quality typically applied to peer-reviewed research;
`(D) the alignment of investment decision mechanics and outcomes
with the Investment Prospectus and the requirements under this subchapter;
`(E) the integrity and effectiveness of Fund operations and performance,
including application evaluation processes, Investment Plan processes
and determinations, and the optimization of the Fund's performance
as a portfolio; and
`(F) prospects for the extension of the Fund's activities to nontransportation
infrastructure sectors likely to benefit the United States, including
renewable energy generation, energy transmission and storage, energy
efficiency, drinking water and wastewater systems, and telecommunications.
`(4) APPLICABILITY OF FACA- The Fund Advisory Committee shall be subject
to the Federal Advisory Committee Act (5 U.S.C. App.).
`Sec. 364. Fund authorities and assistance
`(a) Agreements With Other Organizations- The Fund may--
`(1) enter into an agreement with any organization within the Department
of Transportation to obtain necessary technical expertise and assistance;
and
`(2) may request any Federal agency to detail employees to the Fund
for purposes of carrying out its duties under this subchapter.
`(1) ADMINISTRATIVE FEES- The Fund may establish and collect fees
from eligible funding recipients, including application and processing
fees and other fees associated with the costs of loan servicing, at
a level sufficient to cover all or a portion of the administrative
costs to the Federal Government of providing funding assistance and
servicing the credit instruments entered into under this subchapter.
`(2) OTHER FEES- The Fund may establish and collect fees from eligible
funding recipients at a level sufficient to cover all or a portion
of 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.
`(3) LIMITATION- The Fund may not collect fees under paragraph (1)
or (2) that originate as a loan or a debt obligation guaranteed by
the Federal Government.
`(4) AVAILABILITY OF AMOUNTS- Amounts collected under paragraphs (1)
and (2) shall be available to be expended to carry out the duties
under this subchapter.
`(c) Planning and Feasibility Loans-
`(1) IN GENERAL- The Fund may provide loans, which may be forgivable,
to eligible funding recipients to fund activities related to the planning,
preparation, or design of an eligible project proposal, including
costs associated with--
`(A) planning and formulating optimal project design;
`(B) assessing project technical feasibility; and
`(C) assessing potential project performance.
`(2) LOAN PROGRAM CRITERIA- In providing loans under this subsection,
the Fund shall give priority to activities that are likely to lead
to projects that--
`(A) advance the objectives set forth in section 362(b); and
`(B) are consistent with the strategy described in section 362(c).
`(3) FEDERAL SHARE- The Fund may enter into a loan agreement with
an eligible recipient in which the Fund agrees to pay up to 100 percent
of eligible planning and feasibility costs of an eligible project
under this subsection.
`(4) ELIGIBLE COSTS- Loan amounts received under this subsection may
be used for--
`(A) any activity reasonably necessary to obtain Federal, State,
and local permits, licenses, and approvals for an eligible project,
including--
`(i) concept development and preliminary design;
`(ii) economic and environmental analyses; and
`(iii) application, licensing, and permit fees.
`(B) the preparation of financial analyses and other economic analyses
that are reasonably necessary to secure funding to implement an
eligible project.
`(5) ALIGNMENT WITH INVESTMENT PROSPECTUS- The Fund may not provide
a loan for a project under this subsection unless the application
materials demonstrate that the eligible project is aligned with the
strategy outlined in the Investment Prospectus.
`(6) DESIGNATION FOR RECEIPT OF CERTAIN FUNDS- If a non-Federal governmental
entity, agency, or instrumentality is carrying out the planning and
feasibility activities, the eligible funding recipient may designate
such entity, agency, or instrumentality to receive loan amounts for
such activities directly from the Fund.
`(d) Direct Loans and Loan Guarantees-
`(A) AGREEMENTS- The Fund is authorized to make direct loans to
eligible funding recipients for eligible projects on such terms
and conditions, and containing such covenants, representations,
warranties, and requirements, including required audits, as the
Fund determines appropriate, in accordance with the provisions under
this subchapter, the Operating Guidance, and all other statutory
and regulatory requirements.
`(B) APPROVED INVESTMENT PLAN- Direct loans made under this paragraph--
`(i) may only be used to fund eligible project costs covered in
an Investment Plan approved by the Secretary; and
`(ii) are subject to the terms and conditions of the approved
Investment Plan.
`(C) TERMS, CONDITIONS, AND LIMITATIONS- Direct loans made under
this paragraph will be on such terms, conditions, and limitations
as the Executive Director may prescribe, except that--
`(i) the Fund may not provide credit assistance to any prospective
borrower unless such assistance--
`(I) is necessary to alleviate a credit market imperfection;
or
`(II) is necessary to achieve specified Federal objectives by
providing credit assistance; and
`(III) is the most efficient way to meet such objectives on
a borrower-by-borrower basis;
`(ii) loans made under this paragraph may not be subordinated
(unless such subordination is necessary to achieve Federal objectives,
consistent with the criteria and policies set forth in the Operating
Guidance) to--
`(I) another debt contracted by the borrower; or
`(II) any other claims against the borrower in the case of default;
`(iii) direct loans or interest supplements on loan guarantees
shall be at an interest rate that is set by reference to a benchmark
interest rate (yield) on marketable Treasury securities with a
similar maturity to the direct loans being made or the non-Federal
loans being guaranteed, and includes any necessary credit risk
premium at a level consistent with the interest rate policy set
forth in the Operating Guidance;
`(iv) the Executive Director--
`(I) shall prescribe explicit standards for use in periodically
assessing the credit risk of new and existing direct loans and
guaranteed loans; and
`(II) may not extend credit assistance without determining that
there is a reasonable assurance of repayment;
`(v) new direct loans may not be obligated and new loan guarantees
may not be committed except to the extent that appropriations
of budget authority to cover their costs are made in advance,
as required under section 504 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661c);
`(vi) the total principal amount of the direct loan or loan guarantee
may not exceed--
`(I) the lower of 70 percent of total eligible project cost
less the percentage of eligible project costs that are otherwise
funded by the Fund; or
`(II) another level prescribed in the Operating Guidance; and
`(vii) notwithstanding any other provision of law relating to
the acquisition, handling, or disposal of property by the Federal
Government, the Fund may complete, recondition, reconstruct, renovate,
repair, maintain, operate, or sell any property acquired by the
Fund under this subchapter.
`(i) POLICIES- The Fund shall--
`(I) adhere to the policies set forth in the Operating Guidance
concerning repayment terms; and
`(II) establish repayment terms for each direct loan based on
the projected cash flow from project revenues or other repayment
sources.
`(ii) MATURITY DATE- The final maturity date of a direct loan
under this paragraph--
`(I) shall not exceed 90 percent of the estimated useful economic
life of the asset being financed, except under conditions set
forth in the Operating Guidance; and
`(II) may not be later than the estimated useful economic life
of the asset being financed.
`(E) RISK ASSESSMENT- Before entering in any agreement under this
section, the Executive Director shall complete a risk assessment
of the project to be funded. Requirements for risk assessment shall
be outlined in the Operating Guidance.
`(A) IN GENERAL- The Fund is authorized to provide loan guarantees
to eligible funding recipients on such terms and conditions and
containing such covenants, representations, warranties, and requirements
(including required audits) as the Fund determines appropriate,
in accordance with the provisions under this subchapter, the Operating
Guidance, and all other statutory and regulatory requirements.
`(B) APPROVED INVESTMENT PLAN- Loan guarantees provided under this
paragraph--
`(i) may only cover eligible project costs in an approved Investment
Plan; and
`(ii) are subject to the terms and conditions of the approved
Investment Plan.
`(C) TERMS, CONDITIONS, AND LIMITATIONS-
`(i) IN GENERAL- The terms, conditions, and limitations of a guaranteed
loan shall comply with the terms, conditions, and limitations
set forth in paragraph (1) for a direct loan, including maximum
Fund share requirements, except that the interest rate on the
guaranteed loan and any repayment features shall be negotiated
between the eligible funding recipient and the lender in accordance
with the policies set forth in the Operating Guidance, and with
the consent of the Secretary.
`(ii) INCOME EXCLUDED- A loan may not be guaranteed under this
paragraph if--
`(I) the income from such loan is excluded from gross income
for the purposes of chapter 1 of the Internal Revenue Code of
1986; or
`(II) the guarantee provides significant collateral or security,
as determined by the Executive Director, for other obligations
generating income that is similarly excluded.
`(iii) FEES- Fees or premiums for a loan guarantee or insurance
coverage shall be set at levels that minimize the cost to the
Government (as defined in section 502(5) of the Federal Credit
Reform Act of 1990 (6 U.S.C. 661a(5))) of such coverage, while
supporting achievement of the program's objectives, in accordance
with policies set forth in the Operating Guidance.
`(iv) PERCENT GUARANTEED- A loan guarantee under this paragraph
may not exceed 80 percent of the loss of the loan. Borrowers who
pose less of a risk shall receive a lower guarantee as a percentage
of the loan amount.
`(v) CRITERIA- A loan may not be guaranteed under this paragraph
unless the Executive Director determines that--
`(I) the lender is responsible; and
`(II) adequate provision is made for servicing the loan on reasonable
terms.
`(vi) CONCLUSIVE EVIDENCE- Any guarantee shall be conclusive evidence
that--
`(I) such guarantee has been properly obtained;
`(II) the underlying loan qualified for such guarantee; and
`(III) such guarantee is presumed to be valid, legal, and enforceable,
unless such guarantee was obtained through fraud or material
misrepresentation by the holder.
`(vii) EFFECT OF DEFAULT- If, as a result of a default by a borrower
under a guaranteed loan, after the holder of the loan has made
such further collection efforts and instituted such enforcement
proceedings as the Executive Director may require, the Executive
Director determines that the holder has suffered a loss, the Executive
Director--
`(I) shall pay to the holder not more than 80 percent of such
loss, as specified in the guarantee contract;
`(II) upon making such payment, shall be subrogated to all the
rights of the recipient of the payment; and
`(III) shall be entitled to recover from the borrower the amount
of any payments made pursuant to any guarantee entered into
under this paragraph.
`(viii) ENFORCEMENT- The Attorney General shall take such action
as may be appropriate to enforce any right accruing to the United
States as a result of the issuance of any loan guarantee under
this paragraph.
`(ix) SAVINGS PROVISION- Nothing in this paragraph may be construed
to preclude any forbearance for the benefit of the borrower, which
may be agreed upon by the Executive Director, if budget authority
for any resulting modification cost (as defined under section
502 of the Congressional Budget Act (6 U.S.C. 661a)) is available.
`(D) REPAYMENT- The Fund shall adhere to policies set forth in the
Operating Guidance concerning repayment terms and shall establish
repayment terms for each direct loan based on the projected cash
flow from project revenues or other repayment sources.
`(E) RISK ASSESSMENT- Requirements for risk assessment shall be
outlined in the Operating Guidance.
`(e) Application Evaluation and Qualification-
`(1) APPLICATION ELIGIBILITY STANDARD- An application for financial
assistance from the Fund may not be considered unless--
`(A) funding recipient or recipients, project or program of related
projects, and associated project costs identified in the application
are eligible for such funding under this subchapter;
`(B) eligible project costs identified in the application--
`(i) are greater than $50,000,000; or
`(ii) if the application is for a project or program of related
projects located entirely in a rural area, are greater than $10,000,000;
`(C) the application identifies financial assistance from sources
outside of the Fund equal to at least 30 percent of the total eligible
project costs;
`(D) the application identifies project benefits that are distributed
broadly, either at a national or a regional level; and
`(E) the applicant is not ineligible to receive Federal loans, loan
guarantees, or insurance due to a delinquency on Federal tax or
non-tax debts, including judgment liens against property for a debt
to the Federal Government.
`(2) RESOLUTION OF DEBTS- The Fund shall use credit bureaus as a screening
tool and ask applicants about delinquencies described in paragraph
(1)(E) on the application form. An application from an applicant that
is delinquent on a debt to the Federal Government may not be processed
until after the applicant satisfactorily resolves the debts in compliance
with section 3720B of title 31, United States Code, and section 285.13
of title 31, Code of Federal Regulations.
`(3) QUALIFICATION SCORE-
`(A) ASSIGNMENT- The Fund shall assign to each eligible application
a single numerical factor, which shall be--
`(i) based upon an evaluation of the information and data collected
from the applicant;
`(ii) referred to as the `qualification score'; and
`(iii) equal to the ratio between the present value of benefits
to the present value of costs reasonably expected to result from
the funding of the project or projects proposed in the application.
`(B) CALCULATION- The calculation of the qualification score shall
be determined through a consistently and transparently applied analytic
and systematic framework. In order to indicate the potential uncertainty
of the qualification score, the Fund shall use a measure of the
uncertainty of expected project benefits and costs to derive a range
of ratio values with the qualification score as the midpoint of
that range.
`(C) METHODOLOGY- The methodology used to calculate the qualification
score and uncertainty measures shall--
`(i) apply equal weighting to all measures of the net present
value of benefits and costs;
`(ii) include standardized measures of the expected uncertainty
in both total and specific benefits and costs associated with
the project; and
`(iii) include a descriptive statement delineating the significant
factors and analysis that went into determination of the score
and the range.
`(i) INVESTMENT PROSPECTUS- The methodology of the framework for
calculating the qualification score, including the specific mechanics
of its calculation, shall be published in the Investment Prospectus.
`(ii) METHODOLOGY- The quantification score, the methodology used
to calculate the qualification score, the calculation of the qualification
score, and the measure of uncertainty shall be--
`(I) provided to the applicant not later than 15 days after
their final determination; and
`(II) published on the Fund's website not later than 30 days
after their final determination.
`(4) APPLICATION CERTIFICATION- The Executive Director may not certify
an application as qualified for financial assistance on the basis
of an evaluation of the information and data collected from the applicant
unless the Executive Director determines that the application's qualification
score--
`(A) has been calculated on the basis of data, estimates, and assumptions
that are defensible according to accepted standards of economic
analysis;
`(B) appears valid based on efforts by the Fund to conduct due diligence
and verification;
`(C) is greater than the threshold for qualification published in
the Investment Prospectus; and
`(D) is competitive with scores issued to applications currently
under consideration and scores issued to applications previously
funded under this section, after taking into account the extent
to which the application under consideration, in order of priority--
`(i) advances the objectives of the Fund set forth in section
362(b);
`(ii) addresses a special infrastructure investment challenge
due to cost, complexity, cross-jurisdictional scope, multi-modal
features, or the use of innovative technologies;
`(iii) provides a cost-effective approach to achieving the benefits
described in the application relative to alternative approaches
to achieving comparable benefits, after taking into account the
estimated uncertainty in measures of costs and benefits associated
with the project;
`(iv) combines amounts received from the Fund with other revenue
sources to leverage substantial co-investment from non-Federal
sources;
`(v) delivers revenue streams from public or private sources dedicated
to pay debt service, meet ongoing operating expenses, or provide
for needed maintenance and capital renewal over the life cycle
of the funded asset; and
`(vi) encourages the use of innovative procurement, asset management,
or financing to optimize the all-in-life-cycle cost-effectiveness
of a project.
`(1) QUALIFIED APPLICATION REQUIREMENT- After an application is certified
by the Executive Director as qualified under subsection (e)(4), the
Executive Director and the applicant shall enter a process for producing
a mutually agreeable Investment Plan. Financial assistance may not
be provided to an applicant under this section unless the applicant's
Investment Plan has been recommended by the Board and approved by
the Secretary.
`(2) INVESTMENT PLANNING PROCESS- The Fund shall establish an investment
planning process for determining the level, form, and terms of financial
assistance to be offered by the Fund, including a mutually agreeable
financing package that--
`(A) is adequate to fund the project or projects included in the
application;
`(B) maximizes total expected project benefits relative to total
expected costs; and
`(C) considers the portion of total costs to be financed by the
Fund.
`(3) CONSIDERATIONS- When considering the appropriate level and form
of Fund resources to include in an Investment Plan, the Fund shall--
`(A) consider the qualification score achieved by the application
relative to other current applications and previously funded applications;
`(B) strive to make investment plan decisions on the basis of maximizing
total net benefits relative to cost; and
`(i) the amount of Fund budgetary resources required to complete
a financing package;
`(ii) the percentage of Federal resources included in the Investment
Plan in the form of grants;
`(iii) the level of certainty of the proposed net benefits, including
the risks to the Federal taxpayer and the project sponsor in the
event of project cost overrun or failure; and
`(iv) the percentage of eligible project costs to be funded through
non-Federal resources pledged by the applicant to complete a financing
package.
`(4) INVESTMENT PLANS- As part of the investment planning process--
`(A) the Fund shall have the sole discretion to determine the terms
of assistance to be offered to applicants, subject to the provisions
under this subchapter, the availability of funding, and any other
statutory and regulatory requirements;
`(B) if the Fund and the applicant are able to reach mutually agreeable
terms, the Fund shall record the determination on Fund assistance
and the details of the complete financing package in an Investment
Plan;
`(C) the Fund may not approve an Investment Plan that does not identify
a complete financing package; and
`(D) the Fund is not required or compelled to reach agreement on
an Investment Plan.
`(5) SUBMISSION TO BOARD- The Executive Director shall advance Investment
Plans for qualified applications to the Board at regular submission
intervals, as set forth in the Operating Guidance.
`(6) CONFLICT OF INTEREST PROTECTIONS- The Secretary of Transportation
and the Fund shall jointly establish, in operating procedures and
in the Operating Guidance, communications practices and compliance
procedures that protect professional staff of the Fund who are responsible
for negotiating Investment Plans from outside or otherwise inappropriate
influence, and conflicts of interest, including necessary restrictions
on communications between staff of the Fund who are responsible for
the investment planning process and individuals and organizations
within and outside the Department of Transportation, including--
`(B) the Office of the Secretary;
`(D) others needed to safeguard the ability of the Fund to fairly
and independently formulate Investment Plans under this subsection.
`(1) INVESTMENT PLAN SUBMISSION REQUIREMENT- The Board may not consider
recommending an application for funding before receiving an Investment
Plan from the Executive Director.
`(2) APPLICATION FUNDING RECOMMENDATION- Not later than 15 days after
receiving an Investment Plan from the Executive Director, the Board
shall--
`(A) vote on whether to recommend funding for the Investment Plan;
`(B) notify the Secretary of the outcome of such vote; and
`(C) if funding is recommended, forward the Investment Plan to the
Secretary for approval.
`(3) NO MODIFICATION- Neither the Board nor the Secretary may modify
any Investment Plan.
`(4) FUNDING CONSIDERATION-
`(A) DETERMINATION- After considering an Investment Plan recommended
by the Board, the Secretary shall approve or reject the Investment
Plan.
`(B) APPROVAL- If the Investment Plan is approved by the Secretary,
it shall be funded in accordance with the provisions of the Investment
Plan.
`(C) REJECTION- If the Investment Plan is rejected by the Secretary,
the Investment Plan--
`(i) shall be returned to the Executive Director with a detailed
justification for rejecting the Investment Plan, which shall be
forwarded to the applicant; and
`(ii) may be reconsidered by the Fund not earlier than 1 year
after such date of return.
`(h) Project Sponsorship; Public Benefit Analysis; Legal Compliance-
`(1) COMPLIANCE WITH APPLICABLE LAWS-
`(A) IN GENERAL- Subject to subparagraphs (B) and (C), the Fund
shall determine which requirements under chapter 53 of this title
or title 23 shall be applicable to projects receiving financial
assistance under this subchapter that would otherwise be eligible
for financial assistance under such chapter or title.
`(B) LABOR STANDARDS- Labor standards under chapter 53 of this title
and title 23 shall be applicable to projects described in subparagraph
(A), including--
`(i) applicable employee protective arrangement under section
5333(b);
`(ii) the requirement that all laborers and mechanics employed
by contractors or subcontractors on construction work performed
on the projects be paid wages at rates not less than those prevailing
on similar construction in the locality, as determined by the
Secretary of Labor under subchapter IV of chapter 31 of title
40, United States Code (except for section 3145).
`(C) PLANNING AND ENVIRONMENTAL LAWS- A project that receives financial
assistance under this subchapter shall comply with--
`(i) the applicable planning and programming requirements under
section 134 and 135 of title 23; and
`(ii) all applicable environmental laws and requirements, including
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) and the National Historic Preservation Act of 1966 (16
U.S.C. 470 et seq.).
`(A) IN GENERAL- The Department of Transportation shall be the Federal
lead agency in the environmental review process for a project that
receives financial assistance under this subchapter. Subject to
subparagraphs (B) through (D), the Secretary of Transportation may
delegate this responsibility to an operating administration.
`(B) JOINT LEAD FEDERAL AGENCY- Nothing in this paragraph precludes
another Federal agency from being a joint lead agency in accordance
with the regulations adopted by the President's Council on Environmental
Quality.
`(C) JOINT LEAD STATE AGENCY- A non-Federal government entity, agency,
or instrumentality receiving funds under this subchapter may--
`(i) serve as a joint lead agency with the Department of Transportation
under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.); and
`(ii) at the discretion of the lead Federal agency, prepare any
environmental document required in support of the project if the
lead Federal agency--
`(I) furnishes guidance in such preparation; and
`(II) independently evaluates, approves, and adopts the State
or local government's environmental documentation before taking
any action on the project.
`(D) NONGOVERNMENTAL FUNDING RECIPIENTS- If a project is undertaken
by a nongovernmental entity, the non-Federal government entity,
agency, or instrumentality cosponsor of the project shall--
`(i) serve as a joint lead agency with the Department; and
`(ii) have the authority to prepare the environmental documents
described in subparagraph (C)(ii).
`(3) DETERMINATION OF APPLICABLE MODAL REQUIREMENTS- If a project
has cross-modal components, the Fund may designate the specific requirements
that shall apply to the project.
`(i) Investment-Grade Rating Requirement- The Fund shall maintain a
portfolio of projects whose average rating is not less than investment
grade.
`Sec. 365. Studies and reports
`(a) Annual Financial Audit-
`(1) IN GENERAL- The Fund shall be subject to an annual financial
audit by an independent public accounting firm selected by the Board
to ensure that its operations meet generally accepted accounting principles.
`(2) DISSEMINATION- The Fund shall--
`(A) submit the results of each audit under paragraph (1) to the
Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Transportation and Infrastructure of the House
of Representatives; and
`(B) post such audit results on the Fund's website.
`(b) Annual Performance Evaluation-
`(1) IN GENERAL- The Comptroller General shall conduct an annual assessment--
`(A) to evaluate the Fund's overall performance; and
`(B) to determine the effectiveness of the Fund at meeting its objectives
and strategy.
`(2) DISSEMINATION- The Comptroller General shall submit a report
containing the results of the evaluation conducted under paragraph
(1) to the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure of the
House of Representatives.
`(c) Semiannual Report- The Executive Director shall post semiannual
reports on the Fund's website that describe the Fund's activities, including--
`(1) the status of applications received;
`(2) the outcome of application evaluations;
`(3) the outcome of investment planning processes;
`(4) the status of Investment Plans submitted to the Board; and
`(5) the status of financial assistance awards approved by the Secretary.
`(1) IN GENERAL- Every 2 years after the date of the enactment of
the American Infrastructure Investment Fund Act of 2011, the Board,
in consultation with the Director of the Office of Management and
Budget and the Fund Advisory Committee, shall prepare a report that--
`(A) evaluates the Fund's performance;
`(B) includes an assessment of the Fund as a model for infrastructure
investment; and
`(C) may include a recommendation on whether to extend the Fund's
activities to nontransportation infrastructure sectors likely to
benefit the United States, including--
`(i) renewable energy generation;
`(ii) energy transmission and storage;
`(iii) energy efficiency;
`(iv) drinking water and wastewater systems;
`(v) telecommunications; and
`(vi) other infrastructure activities.
`(2) DISSEMINATION- The Board shall--
`(A) submit the report prepared under paragraph (1) to the Committee
on Commerce, Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure of the House of Representatives;
and
`(B) post the report on the Fund's website.
`(e) Investment Plan and Decisions- Not later than 90 days after the
Board's decision on an Investment Plan, the Fund Advisory Committee
shall post a report on the Fund's website that assesses--
`(1) the adherence of each funding decision to the requirements of
the Investment Prospectus, Operating Guidance, and this subchapter;
`(2) the consistency of funded applications with the primary objective,
the secondary objectives, the Fund strategy, and the requirements
under this subchapter;
`(3) the validity of the qualification certification of each funded
application;
`(4) the return on Federal investment likely to result from each funded
Investment Plan; and
`(5) the return on total investment likely to result from each funded
Investment Plan.'.
(b) Authorization of Appropriations-
(A) IN GENERAL- There are authorized to be appropriated to carry
out subchapter IV of chapter 3 of title 49, United States Code,
as added by subsection (a), $5,000,000,000 for each of the fiscal
years 2012 and 2013.
(B) AVAILABILITY OF FUNDS- Amounts made available under subparagraph
(A) shall remain available until expended.
(2) ADMINISTRATIVE EXPENSES- Of the amounts appropriated pursuant
to paragraph (1), the Fund may expend, to pay the reasonable costs
of administering such subchapter IV, inclusive of any fees collected
pursuant to such subchapter--
(A) not more than $50,000,000 in fiscal year 2012; and
(B) not more than $51,000,000 in fiscal year 2013.
SEC. 3. NATIONAL INFRASTRUCTURE INVESTMENT GRANTS.
(a) Establishment of Program- Chapter 55 of title 49, United States
Code, is amended by adding at the end the following:
`Subchapter III--Financial Assistance
`SEC. 5581. NATIONAL INFRASTRUCTURE INVESTMENT GRANTS.
`(a) Establishment of Program- The Secretary of Transportation shall
establish a competitive grant program to provide financial assistance
for projects that will have a significant impact on the Nation, a metropolitan
area, or a region.
`(b) Eligible Projects- An applicant is eligible for a grant under this
section for a project that is part of, or related to, a transportation
improvement, including projects related to the construction or improvement
of--
`(1) a passenger or freight rail line;
`(5) an air traffic control system;
`(6) a port or marine facility;
`(8) a transmission or distribution pipeline;
`(9) public transportation facilities or systems;
`(10) intercity passenger bus or passenger rail facilities or equipment;
`(11) freight rail facilities or equipment; or
`(12) planning, preparation, or design of any project described in
paragraphs (1) through (11).
`(c) Project Selection Criteria- In determining whether to award a grant
to an eligible applicant under this section, the Secretary shall consider
the extent to which the project--
`(1) leverages Federal investment by encouraging non-Federal contributions
to the project, including contributions from public-private partnerships;
`(2) improves the mobility of people, goods, and commodities;
`(3) incorporates new and innovative technologies, including intelligent
transportation systems;
`(4) improves energy efficiency or reduces greenhouse gas emissions;
`(5) helps maintain or protect the environment, including reducing
air and water pollution;
`(7) improves the condition of transportation infrastructure, including
bringing it into a state of good repair;
`(8) improves safety, including reducing transportation accidents,
injuries, and fatalities;
`(9) demonstrates that the proposed project cannot be readily and
efficiently realized without Federal support and participation; and
`(10) enhances national or regional economic development, growth,
and competitiveness.
`(d) Priority- The Secretary shall give priority to projects that have
the highest system performance improvement relative to their benefit-cost
analysis.
`(1) IN GENERAL- The Secretary may issue a letter of intent to an
applicant announcing an intention to obligate, for a major capital
project under this subsection, an amount from future available budget
authority specified in law that is not more than the amount stipulated
as the financial participation of the Secretary in the project.
`(2) NOTIFICATION- Not later than 30 days before issuing a letter
under paragraph (1), the Secretary shall submit written notification
of the proposed letter or agreement to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on Transportation
and Infrastructure of the House of Representatives, which shall include--
`(A) a copy of the proposed letter or agreement;
`(B) the criteria used under subsection (c) for selecting the project
for a grant award; and
`(C) a description of how the project meets such criteria.
`(3) COMMITMENT- An obligation or administrative commitment may be
made only when amounts are made available. The letter of intent shall
state that the contingent commitment is not an obligation of the Federal
Government, and is subject to the availability of funds under Federal
law and to Federal laws in force or enacted after the date of the
contingent commitment.
`(f) Federal Share of Net Project Cost-
`(1) IN GENERAL- The Federal share of a grant for the project shall
not exceed 80 percent of the project net capital cost.
`(2) ESTIMATE- The Secretary shall estimate the net project cost based
on engineering studies, studies of economic feasibility, and information
on the expected use of equipment or facilities.
`(3) PRIORITY- The Secretary shall give priority in allocating future
obligations and contingent commitments to incur obligations to grant
requests seeking a lower Federal share of the project net capital
cost.
`(g) Cooperative Agreements-
`(1) IN GENERAL- An applicant may enter into an agreement with any
public, private, or nonprofit entity to cooperatively implement any
project funded with a grant under this subchapter.
`(2) FORMS OF PARTICIPATION- Participation by an entity under paragraph
(1) may consist of--
`(A) ownership or operation of any land, facility, vehicle, or other
physical asset associated with the project;
`(B) cost-sharing of any project expense or non-Federal share of
the project cost, including in kind contributions;
`(C) carrying out administration, construction management, project
management, project operation, or any other management or operational
duty associated with the project; and
`(D) any other form of participation approved by the Secretary.
`(A) IN GENERAL- The Secretary shall establish an oversight program
to monitor the effective and efficient use of funds authorized to
carry out this section.
`(B) MINIMUM REQUIREMENT- At a minimum, the program shall be responsive
to all areas relating to financial integrity and project delivery.
`(2) FINANCIAL INTEGRITY-
`(A) FINANCIAL MANAGEMENT SYSTEMS- The Secretary shall perform annual
reviews that address elements of the applicant's financial management
systems that affect projects approved under subsection (a).
`(B) PROJECT COSTS- The Secretary shall develop minimum standards
for estimating project costs and shall periodically evaluate the
practices of applicants for estimating project costs, awarding contracts,
and reducing project costs.
`(3) PROJECT DELIVERY- The Secretary shall perform annual reviews
that address elements of the project delivery system of an applicant,
which elements include one or more activities that are involved in
the life cycle of a project from conception to completion of the project.
`(4) RESPONSIBILITY OF THE APPLICANTS-
`(A) IN GENERAL- Each applicant shall submit to the Secretary for
approval such plans, specifications, and estimates for each proposed
project as the Secretary may require.
`(B) APPLICANT SUBRECIPIENTS- The applicant shall be responsible
for determining that a subrecipient of Federal funds under this
section has--
`(i) adequate project delivery systems for projects approved under
this section; and
`(ii) sufficient accounting controls to properly manage such Federal
funds.
`(C) PERIODIC REVIEW- The Secretary shall periodically review the
monitoring of subrecipients by the applicant.
`(5) SPECIFIC OVERSIGHT RESPONSIBILITIES- Nothing in this section
shall affect or discharge any oversight responsibility of the Secretary
specifically provided for under this title or other Federal law.
`(1) IN GENERAL- A recipient of a grant for a project under this section
with an estimated total cost of $500,000,000 or more, and a recipient
for such other projects as may be identified by the Secretary, shall
submit to the Secretary for each project--
`(A) a project management plan; and
`(B) an annual financial plan.
`(2) PROJECT MANAGEMENT PLAN- A project management plan shall document--
`(A) the procedures and processes that are in effect to provide
timely information to the project decision makers to effectively
manage the scope, costs, schedules, quality of, and the Federal
requirements applicable to, the project; and
`(B) the role of the agency leadership and management team in the
delivery of the project.
`(3) FINANCIAL PLAN- A financial plan shall--
`(A) be based on detailed estimates of the cost to complete the
project; and
`(B) provide for the annual submission of updates to the Secretary
that are based on reasonable assumptions, as determined by the Secretary,
of future increases in the cost to complete the project.
`(j) Other Projects- A recipient of Federal financial assistance for
a project under this title with an estimated total cost of $100,000,000
or more that is not covered by subsection (i) shall prepare an annual
financial plan. Annual financial plans prepared under this subsection
shall be made available to the Secretary for review upon the request
of the Secretary.
`(k) Other Terms and Conditions- The Secretary shall determine what
additional grant terms and conditions are necessary and appropriate
to meet the requirements of this section.
`(l) Regulations- Not later than 1 year after the date of the enactment
of the American Infrastructure Investment Fund Act of 2011, the Secretary
shall prescribe regulations to implement this section.
`(m) Applicant Defined- In this subchapter, the term `applicant' includes
a State, a political subdivision of a State, government-sponsored authorities
and corporations, and the District of Columbia.
`(n) Secretarial Oversight-
`(1) CONSTRUCTION MANAGEMENT CONTRACTS- The Secretary may use not
more than 1 percent of amounts made available in a fiscal year for
capital projects under this subchapter to enter into contracts to
oversee the construction of such projects.
`(2) COMPLIANCE REVIEWS- The Secretary may use amounts available under
paragraph (1) to make contracts for safety, procurement, management,
and financial compliance reviews and audits of a recipient of amounts
under paragraph (1).
`(3) FEDERAL COSTS- The Federal Government shall pay the entire cost
of carrying out a contract under this subsection.
`(o) Performance Evaluation-
`(A) IN GENERAL- The Comptroller General of the United States shall
conduct an annual assessment to evaluate the overall performance
of grants made under the program established pursuant to subsection
(a).
`(B) DISSEMINATION- The Comptroller General shall submit a report
containing the results of the evaluation conducted under subparagraph
(A) to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and Infrastructure
of the House of Representatives.
`(2) BIANNUAL REPORT- Not later than 1 year after the date of the
enactment of the American Infrastructure Investment Fund Act of 2011,
and every 6 months thereafter, the Secretary of Transportation shall
submit a report to the congressional committees set forth in paragraph
(1)(B) that documents--
`(A) the number of applications received under this section;
`(B) the status of such applications;
`(C) the outcome of application evaluations; and
`(D) the status of grants awarded under the program established
pursuant to subsection (a).
`(p) Authorization of Appropriations- There are authorized to be appropriated
to the Secretary $600,000,000 for each of the fiscal years 2012 and
2013 to carry out this section.'.
(b) Conforming Amendment- The table of contents for chapter 55 of title
49, United States Code, is amended by adding at the end the following:
`subchapter iii. financial assistance
`5581. National infrastructure investment grants'.
SEC. 4. MULTI-MODAL TRANSPORTATION FUNDING.
Section 133(b) of title 23, United States Code, is amended by adding
at the end the following:
`(16) Passenger and freight transportation projects.
`(17) Port infrastructure projects.'.
END
