National Infrastructure Reinvestment Bank
Encyclopedia
The creation of a National Infrastructure Reinvestment Bank was first proposed by United States
Senator Christopher J. Dodd and Senator Chuck Hagel
in 2007. However, several other iterations of a National Infrastructure Bank have been proposed and considered and it is likely that implementing legislation for the Bank will look quite different from that which was proposed in the original legislation.
Barack Obama
backed the proposed legislation in February 2008 and repeated his call in September 2010, although he did not provide specifics about how the Bank should operate. In 2008, Obama suggested that the Bank would borrow US$
60 billion of federal funding to invest in infrastructure over 10 years, while leveraging "up to $500 billion" of private investment. It would invest in high-speed trains to provide an alternative to air travel, energy efficiency
, and clean energy, among other kinds of public infrastructure. According to Obama, the Bank's "work will be determined by what will maximize our safety and security and ability to compete" and it would "create nearly two million new jobs", mainly in the construction industry. According to the text of the proposed legislation, funding for the bank would be taken from borrowed funds not to exceed one percent. The Bank would complement existing federal programs to fund infrastructure, such as the Highway Trust Fund or State Revolving Funds. It is expected to invest primarily in surface transport infrastructure, which is likely to include highways and mass transit. Obama did not mention investments in water supply and sanitation as an area of activity for the new Bank. The American Water Works Association
(AWWA) estimates that investment in water supply and sanitation in the United States will have to be "over $250 billion above current levels of spending in the next 20 to 30 years" to replace aging infrastructure. The original version of the bill expired with the 110th Congress; a different version of the bill was introduced into the 112th Congress by U.S. Representative Rosa L. DeLauro (D - Connecticut 3rd District) as H.R. 402.
as Senate Bill 1926 (S. 1926). A similar bill has been introduced into the United States House of Representatives
as House Resolution 3401 (H.R. 3401). The status of the bill can be tracked on THOMAS
.
The original proposed legislation states that the "Bank" is actually an "an independent establishment of the Federal Government, as defined in section 104 of Title 5, United States Code." As explained in 5 US Code 104, an independent establishment of the Federal Government is "(1) an establishment in the executive branch (other than the United States Postal Service
or the Postal Regulatory Commission) which is not an Executive department, military department, Government corporation, or part thereof, or part of an independent establishment; and (2) the Government Accountability Office."
According to the proposed legislation, the "Bank" would be administratively similar to the Federal Deposit Insurance Corporation
(FDIC). The "Bank" would have the power to: conduct hearings, issue subpoenas, obtain information from any other federal agency, accept for funding any infrastructure project with a potential Federal commitment of $75 million or more, authority to determine the appropriate Federal share of spending for each project, to act as a centralized entity to provide financing for qualified infrastructure projects; to issue general purpose infrastructure bonds, and to provide direct subsidies to qualified infrastructure projects from amounts made available from the issuance of such bonds; to issue project-based infrastructure bonds for the financing of specific qualified infrastructure projects; to provide loan guarantees to State or local governments issuing debt to finance qualified infrastructure projects; to issue loans, at varying interest rates, including very low interest rates, to qualified project sponsors for qualified projects; to leverage resources and stimulate public and private investment in infrastructure; and to encourage States to create additional opportunities for the financing of infrastructure projects.
According to the summary of H.R. 2521, the revised bill "Makes the Bank's Board of Directors responsible for monitoring and overseeing energy, environmental, telecommunications, and transportation infrastructure projects. Authorizes the Board to: (1) issue public benefit bonds and provide direct subsidies to infrastructure projects; (2) borrow on the global capital market and lend to entities and commercial banks for funding infrastructure projects; and (3) purchase, pool, and sell infrastructure-related loans and securities on such market. Requires the Board to establish criteria for determining project eligibility for financial assistance under this Act."
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Senator Christopher J. Dodd and Senator Chuck Hagel
Chuck Hagel
Charles Timothy "Chuck" Hagel is a former United States Senator from Nebraska. A member of the Republican Party, he was first elected in 1996 and was reelected in 2002...
in 2007. However, several other iterations of a National Infrastructure Bank have been proposed and considered and it is likely that implementing legislation for the Bank will look quite different from that which was proposed in the original legislation.
Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
backed the proposed legislation in February 2008 and repeated his call in September 2010, although he did not provide specifics about how the Bank should operate. In 2008, Obama suggested that the Bank would borrow US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
60 billion of federal funding to invest in infrastructure over 10 years, while leveraging "up to $500 billion" of private investment. It would invest in high-speed trains to provide an alternative to air travel, energy efficiency
Efficient energy use
Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
, and clean energy, among other kinds of public infrastructure. According to Obama, the Bank's "work will be determined by what will maximize our safety and security and ability to compete" and it would "create nearly two million new jobs", mainly in the construction industry. According to the text of the proposed legislation, funding for the bank would be taken from borrowed funds not to exceed one percent. The Bank would complement existing federal programs to fund infrastructure, such as the Highway Trust Fund or State Revolving Funds. It is expected to invest primarily in surface transport infrastructure, which is likely to include highways and mass transit. Obama did not mention investments in water supply and sanitation as an area of activity for the new Bank. The American Water Works Association
American Water Works Association
American Water Works Association was established as an international non-profit professional organization dedicated to the improvement of water quality and supply. Founded in 1881, it claims a membership of around 56,000 members worldwide as of 2010.AWWA has become the largest organization of...
(AWWA) estimates that investment in water supply and sanitation in the United States will have to be "over $250 billion above current levels of spending in the next 20 to 30 years" to replace aging infrastructure. The original version of the bill expired with the 110th Congress; a different version of the bill was introduced into the 112th Congress by U.S. Representative Rosa L. DeLauro (D - Connecticut 3rd District) as H.R. 402.
Summary of the proposed legislation
The original version of the proposed legislation was introduced in the United States SenateUnited States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
as Senate Bill 1926 (S. 1926). A similar bill has been introduced into the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
as House Resolution 3401 (H.R. 3401). The status of the bill can be tracked on THOMAS
THOMAS
THOMAS is the database of United States Congress legislative information. It is operated by the Library of Congress and was launched in January 1995 at the inception of the 104th Congress...
.
The original proposed legislation states that the "Bank" is actually an "an independent establishment of the Federal Government, as defined in section 104 of Title 5, United States Code." As explained in 5 US Code 104, an independent establishment of the Federal Government is "(1) an establishment in the executive branch (other than the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
or the Postal Regulatory Commission) which is not an Executive department, military department, Government corporation, or part thereof, or part of an independent establishment; and (2) the Government Accountability Office."
According to the proposed legislation, the "Bank" would be administratively similar to the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC). The "Bank" would have the power to: conduct hearings, issue subpoenas, obtain information from any other federal agency, accept for funding any infrastructure project with a potential Federal commitment of $75 million or more, authority to determine the appropriate Federal share of spending for each project, to act as a centralized entity to provide financing for qualified infrastructure projects; to issue general purpose infrastructure bonds, and to provide direct subsidies to qualified infrastructure projects from amounts made available from the issuance of such bonds; to issue project-based infrastructure bonds for the financing of specific qualified infrastructure projects; to provide loan guarantees to State or local governments issuing debt to finance qualified infrastructure projects; to issue loans, at varying interest rates, including very low interest rates, to qualified project sponsors for qualified projects; to leverage resources and stimulate public and private investment in infrastructure; and to encourage States to create additional opportunities for the financing of infrastructure projects.
According to the summary of H.R. 2521, the revised bill "Makes the Bank's Board of Directors responsible for monitoring and overseeing energy, environmental, telecommunications, and transportation infrastructure projects. Authorizes the Board to: (1) issue public benefit bonds and provide direct subsidies to infrastructure projects; (2) borrow on the global capital market and lend to entities and commercial banks for funding infrastructure projects; and (3) purchase, pool, and sell infrastructure-related loans and securities on such market. Requires the Board to establish criteria for determining project eligibility for financial assistance under this Act."
See also
- Transportation in the United StatesTransportation in the United StatesTransportation in the United States is facilitated by road, air, rail, and water networks. The vast majority of passenger travel occurs by automobile for shorter distances, and airplane for longer distances...
- National Highway SystemNational Highway System (United States)The National Highway System is a network of strategic highways within the United States, including the Interstate Highway System and other roads serving major airports, ports, rail or truck terminals, railway stations, pipeline terminals and other strategic transport facilities.Individual states...
- Toll RoadToll roadA toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...
- Energy policy of the United StatesEnergy policy of the United StatesThe energy policy of the United States is determined by federal, state and local public entities in the United States, which address issues of energy production, distribution, and consumption, such as building codes and gas mileage standards...
- Water supply and sanitation in the United StatesWater supply and sanitation in the United StatesIssues that affect water supply and sanitation in the United States include water scarcity, pollution, a backlog of investment, concerns about the affordability of water for the poorest, and a rapidly retiring workforce...
External links
- National Surface Transportation Policy and Revenue Study Commission
- S. 1926
- H.R. 3401
- Public Works Agency - Public Works Industry Social Network including Municipal Contractors, Municipalities and Citizen Engagement
- Citizen Request - Idea platform to capture citizen request, concerns and ideas where others vote and projects get done based on citizen inputs
- Open Congress - OpenCongress brings together official government data with news coverage, blog posts, public comments, and more to give you the real story behind what's happening in Congress.