text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Investing for Tomorrow's Schools Act 
  of 2014''.
  
  SEC. 2. STATE INFRASTRUCTURE BANK PILOT PROGRAM.
  
      (a) Establishment.--
              (1) Cooperative agreements.--Subject to the provisions of 
          this section, the Secretary of the Treasury, in consultation 
          with the Secretary of Education, may enter into cooperative 
          agreements with States for the establishment of State 
          infrastructure banks and multistate infrastructure banks for 
          making loans--
                      (A) to local educational agencies for building or 
                  repairing elementary or secondary schools which provide 
                  free public education (as such terms are defined in 
                  section 14101 of the Elementary and Secondary Education 
                  Act of 1965 (20 U.S.C. 8801));
                      (B) to public libraries for building or repairing 
                  library facilities;
                      (C) to eligible charter school entities for use for 
                  the objective described in section 5224(2) of such Act 
                  (20 U.S.C. 7223c(2)) consistent with subpart 2 of part 
                  B of title V of such Act (20 U.S.C. 7223 et seq.); and
                      (D) to community learning centers to connect and 
                  improve broadband services.
              (2) Interstate compacts.--Congress grants consent to two or 
          more of the States, entering into a cooperative agreement under 
          paragraph (1) with the Secretary of the Treasury for the 
          establishment of a multistate infrastructure bank, to enter 
          into an interstate compact establishing such bank in accordance 
          with this section.
      (b) Funding.--The Secretary of the Treasury, in consultation with 
  the Secretary of Education, shall make grants to State infrastructure 
  banks and multistate infrastructure banks in a State in a cooperative 
  agreement under subsection (a)(1) to provide initial capital for loans 
  provided under this section. Each bank shall apply repayments of 
  principal and interest on loans to the making of additional loans. The 
  Secretary shall take final action on an application for a grant under 
  this subsection within 90 days of the date of the submission of such 
  application.
      (c) Infrastructure Bank Requirements.--In order to establish an 
  infrastructure bank under this section, each State establishing the 
  bank shall--
              (1) contribute, at a minimum, in each account of the bank 
          from non-Federal sources an amount equal to 25 percent of the 
          amount of each capitalization grant made to the State and 
          contributed to the bank under subsection (b);
              (2) identify an operating entity of the State as recipient 
          of the grant if the entity has the capacity to manage loan 
          funds and issue debt instruments of the State for purposes of 
          leveraging the funds;
              (3) allow such funds to be used as reserve for debt issued 
          by the State so long as proceeds are deposited in the fund for 
          loan purposes;
              (4) ensure that investment income generated by funds 
          contributed to an account of the bank will be--
                      (A) credited to the account;
                      (B) available for use in providing loans to 
                  projects eligible for assistance from the account; and
                      (C) invested in United States Treasury securities, 
                  bank deposits, or such other financing instruments as 
                  the Secretary may approve to earn interest to enhance 
                  the leveraging of projects assisted by the bank;
              (5) ensure that any loan from the bank to an eligible 
          charter school entity, local educational agency, public 
          library, or community learning center will bear interest at or 
          below the lowest interest rates being offered for bonds the 
          income from which is exempt from Federal taxation, as 
          determined by the State, to make the project that is the 
          subject of the loan feasible;
              (6) ensure that repayment of any loan from the bank to an 
          eligible charter school entity, local educational agency, 
          public library, or community learning center will commence not 
          later than 1 year after the project has been completed;
              (7) ensure that the term for repaying any loan to an 
          eligible charter school entity, local educational agency, 
          public library, or community learning center will not exceed 30 
          years after the date of the first payment on the loan under 
          paragraph (5);
              (8) ensure that the funds loaned annually that are used 
          under subsection (a)(1)(C) are limited to a percentage of the 
          total funds loaned that does not exceed the percentage of 
          elementary and secondary school students in the State enrolled 
          in charter schools during the most recent school year for which 
          enrollment data are available;
              (9) ensure that the funds loaned annually under subsection 
          (a)(1)(D) are used exclusively to connect and improve broadband 
          services; and
              (10) require the bank to make an annual report to the 
          Secretary on its status and make such other reports as the 
          Secretary may require by guidelines.
      (d) Forms of Assistance From Infrastructure Banks.--
              (1) In general.--An infrastructure bank established under 
          this section may make loans in an amount equal to all or part 
          of the cost of carrying out a project eligible for assistance 
          under this section.
              (2) Applications for loans.--An application to an 
          infrastructure bank for a loan shall include--
                      (A) in the case of a renovation project, a 
                  description of each architectural, civil, structural, 
                  mechanical, or electrical deficiency to be corrected 
                  with funds under a loan and the priorities to be 
                  applied;
                      (B) a description of the criteria used by the 
                  applicant to determine the type of corrective action 
                  necessary for the renovation of a facility;
                      (C) a description of improvements to be made and a 
                  cost estimate for the improvements;
                      (D) a description of how work undertaken with the 
                  loan will promote the conservation of energy, water, or 
                  waste; and
                      (E) such other information as the infrastructure 
                  bank may require.
          An infrastructure bank shall take final action on a completed 
          application submitted to it within 90 days after the date of 
          its submission.
              (3) Criteria for loans.--In considering applications for a 
          loan to an eligible charter school entity, local educational 
          agency, public library, or community learning center, an 
          infrastructure bank shall consider--
                      (A) the extent to which the eligible charter school 
                  entity, local educational agency, public library, or 
                  community learning center involved lacks the fiscal 
                  capacity, including the ability to raise funds through 
                  the full use of such agency's bonding capacity and 
                  otherwise, to undertake the project for which the loan 
                  would be used without the loan;
                      (B) in the case of a local educational agency, the 
                  threat that the condition of the physical plant in the 
                  project poses to the safety and well-being of students;
                      (C) the demonstrated need for the construction, 
                  reconstruction, or renovation based on the condition of 
                  the facility in the project;
                      (D) the age of such facility; and
                      (E) demonstrated need to connect and improve 
                  broadband services in the local community.
      (e) Qualifying Projects.--
              (1) In general.--Subject to subsection (a)(1), a project is 
          eligible for a loan from an infrastructure bank if it is a 
          project that consists of--
                      (A) the construction of new elementary or secondary 
                  schools to meet the needs imposed by enrollment growth;
                      (B) the repair, rebuilding, or upgrading of 
                  classrooms or structures related to academic learning, 
                  including the repair of leaking roofs, crumbling walls, 
                  inadequate plumbing, poor ventilation equipment, and 
                  inadequate heating or light equipment;
                      (C) an activity to increase physical safety at the 
                  educational facility involved;
                      (D) an activity to enhance the educational facility 
                  involved to provide access for students, teachers, and 
                  other individuals with disabilities;
                      (E) an activity to address environmental or health 
                  hazards at the educational facility involved, such as 
                  poor ventilation, indoor air quality, or lighting;
                      (F) the provision of basic infrastructure that 
                  facilitates educational technology, such as 
                  communications outlets, electrical systems, power 
                  outlets, or a communication closet;
                      (G) work that will bring an educational facility 
                  into conformity with the requirements of--
                              (i) environmental protection or health and 
                          safety programs mandated by Federal, State, or 
                          local law if such requirements were not in 
                          effect when the facility was initially 
                          constructed; and
                              (ii) hazardous waste disposal, treatment, 
                          and storage requirements mandated by the 
                          Resource Conservation and Recovery Act of 1976 
                          or similar State laws;
                      (H) work that will enable efficient use of 
                  available energy resources;
                      (I) work that will reduce reliance on fossil fuels 
                  and expand use of solar power, wind power, and other 
                  renewable energy resources;
                      (J) work to detect, remove, or otherwise contain 
                  asbestos hazards in educational facilities;
                      (K) work to construct new public library facilities 
                  or repair or upgrade existing public library 
                  facilities;
                      (L) work to connect entities described in 
                  subsection (a)(1) to broadband services, and to improve 
                  such connections for such entities; or
                      (M) measures designed to reduce or eliminate human 
                  exposure to classroom noise and environmental noise 
                  pollution.
              (2) Davis-bacon.--The wage requirements of the Act of March 
          3, 1931 (referred to as the ``Davis-Bacon Act'', 40 U.S.C. 276a 
          et seq.) shall apply with respect to individuals employed on 
          the projects described in paragraph (1).
              (3) Green practices.--An entity using a loan under this 
          section to fund a new construction or renovation project 
          described in paragraph (1) shall ensure that the project is 
          certified, verified, or consistent with State laws, 
          regulations, and any applicable provisions of--
                      (A) the LEED Green Building Rating System;
                      (B) Living Building Challenge;
                      (C) the CHPS green building rating program 
                  developed by the Collaborative for High Performance 
                  Schools; or
                      (D) a program that--
                              (i) has equivalent or more stringent 
                          standards;
                              (ii) is adopted by the State or another 
                          jurisdiction with authority over the entity; 
                          and
                              (iii) includes a verifiable method to 
                          demonstrate compliance with such program.
      (f) Supplementation.--Any loan made by an infrastructure bank shall 
  be used to supplement and not supplant other Federal, State, and local 
  funds available.
      (g) Limitation on Repayments.--Notwithstanding any other provision 
  of law, the repayment of a loan from an infrastructure bank under this 
  section may not be credited towards the non-Federal share of the cost 
  of any project.
      (h) Secretarial Requirements.--In administering this section, the 
  Secretary of the Treasury shall specify procedures and guidelines for 
  establishing, operating, and providing assistance from an 
  infrastructure bank.
      (i) United States Not Obligated.--The contribution of Federal funds 
  into an infrastructure bank established under this section shall not be 
  construed as a commitment, guarantee, or obligation on the part of the 
  United States to any third party, nor shall any third party have any 
  right against the United States for payment solely by virtue of the 
  contribution. Any security or debt financing instrument issued by the 
  infrastructure bank shall expressly state that the security or 
  instrument does not constitute a commitment, guarantee, or obligation 
  of the United States.
      (j) Management of Federal Funds.--Sections 3335 and 6503 of title 
  31, United States Code, shall not apply to funds contributed under this 
  section.
      (k) Program Administration.--For each of fiscal years 2015 through 
  2019, a State may expend not to exceed 2 percent of the Federal funds 
  contributed to an infrastructure bank established by the State under 
  this section to pay the reasonable costs of administering the bank.
      (l) Secretarial Review.--The Secretary of the Treasury shall review 
  the financial condition of each infrastructure bank established under 
  this section and transmit to Congress a report on the results of such 
  review not later than 90 days after the completion of the review.
      (m) Authorization of Appropriations.--For grants to States for the 
  initial capitalization of infrastructure banks there are authorized to 
  be appropriated $500,000,000 for fiscal year 2015 and for each of the 4 
  succeeding fiscal years.
  
  SEC. 3. DEFINITIONS.
  
      For purposes of this Act:
              (1) Community learning center.--The term ``community 
          learning center'' has the meaning given such term in section 
          4201(b)(1) of the Elementary and Secondary Education Act of 
          1965 (20 U.S.C. 7171(b)(1)).
              (2) Eligible charter school entity.--The term ``eligible 
          charter school entity'' means--
                      (A) a charter school (as defined in section 5210 of 
                  the Elementary and Secondary Education Act of 1965 (20 
                  U.S.C. 7221i)); or
                      (B) a developer (as so defined) that has applied to 
                  an authorized public chartering agency (as so defined) 
                  to operate a charter school.
              (3) Local educational agency.--(A) The term ``local 
          educational agency'' means a public board of education or other 
          public authority legally constituted within a State for either 
          administrative control or direction of, or to perform a service 
          function for, public elementary or secondary schools in a city, 
          county, township, school district, or other political 
          subdivision of a State, or for such combination of school 
          districts or counties as are recognized in a State as an 
          administrative agency for its public elementary or secondary 
          schools.
              (B) The term includes any other public institution or 
          agency having administrative control and direction of a public 
          elementary or secondary school.
              (C) The term includes an elementary or secondary school 
          funded by the Bureau of Indian Affairs but only to the extent 
          that such inclusion makes such school eligible for programs for 
          which specific eligibility is not provided to such school in 
          another provision of law and such school does not have a 
          student population that is smaller than the student population 
          of the local educational agency receiving assistance under this 
          Act with the smallest student population, except that such 
          school shall not be subject to the jurisdiction of any State 
          educational agency other than the Bureau of Indian Affairs.
              (4) Outlying area.--The term ``outlying area'' means the 
          Virgin Islands, Guam, American Samoa, the Commonwealth of the 
          Northern Mariana Islands, the Republic of the Marshall Islands, 
          the Federated States of Micronesia, and the Republic of Palau.
              (5) Public library.--The term ``public library'' means a 
          library that serves free of charge all residents of a 
          community, district, or region, and receives its financial 
          support in whole or in part from public funds. Such term also 
          includes a research library, which, for the purposes of this 
          sentence, means a library that--
                      (A) makes its services available to the public free 
                  of charge;
                      (B) has extensive collections of books, 
                  manuscripts, and other materials suitable for scholarly 
                  research which are not available to the public through 
                  public libraries;
                      (C) engages in the dissemination of humanistic 
                  knowledge through services to readers, fellowships, 
                  educational and cultural programs, publication of 
                  significant research, and other activities; and
                      (D) is not an integral part of an institution of 
                  higher education.
              (6) State.--The term ``State'' means each of the 50 States, 
          the District of Columbia, the Commonwealth of Puerto Rico, and 
          each of the outlying areas.
target: Investing for Tomorrow's Schools Act of 2014 - Authorizes the Secretary of the Treasury to enter into cooperative agreements with states to establish state and multistate infrastructure banks that make loans to local educational agencies, public libraries, and charter schools or their developers to construct or renovate public elementary or secondary schools and public libraries. Requires loans also to community learning centers to connect and improve broadband services. Grants congressional consent to states for interstate compacts to establish multistate infrastructure banks. Directs the Secretary to make grants to such banks to provide initial capital for such loans. Requires states to contribute from nonfederal sources at least 25% of the amount of each federal capitalization grant made to the state and contributed to the bank. Lists types of projects eligible for such bank loans. Requires borrowers to use, to the maximum extent practicable, green construction or renovation practices that are consistent with: (1) Leadership in Energy and Environmental Design (LEED) green building rating standards, (2) Energy Star standards, (3) Collaborative for High Performance Schools (CHPS) criteria, (4) Green Building Initiative environmental design and rating standards (Green Globes), or (5) equivalent standards adopted by the entities that have jurisdiction over them.
feat_title: Investing for Tomorrow's Schools Act of 2014