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.
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.
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