article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Highway Infrastructure Privatization Act''. SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED HIGHWAY INFRASTRUCTURE CONSTRUCTION. (a) Treatment as Exempt Facility Bond.--Subsection (a) of section 142 of the Internal Revenue Code of 1986 (relating to exempt facility bond) is amended by striking ``or'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, or'', and by adding at the end the following: ``(13) qualified highway infrastructure projects.'' (b) Qualified Highway Infrastructure Projects.--Section 142 of such Code is amended by adding at the end the following: ``(k) Qualified Highway Infrastructure Projects.-- ``(1) In general.--For purposes of subsection (a)(13), the term `qualified highway infrastructure project' means a project-- ``(A) for the construction or reconstruction of a highway, and ``(B) designated under paragraph (2) as an eligible pilot project. ``(2) Eligible pilot project.-- ``(A) In general.--The Secretary of Transportation, in consultation with the Secretary of the Treasury, shall select not more than 15 highway infrastructure projects to be pilot projects eligible for tax-exempt financing. ``(B) Eligibility criteria.--The Secretary of Transportation shall establish criteria for the selection of projects under subparagraph (A), except that no project may be selected unless the project-- ``(i) serves the general public; ``(ii) is necessary to evaluate the potential of the private sector's participation in the provision of the highway infrastructure of the United States; ``(iii) is located on publicly owned rights-of-way; ``(iv) is publicly owned or the ownership of the highway constructed or reconstructed under the project reverts to the public; and ``(v) is consistent with a transportation plan developed pursuant to section 134(g) or 135(e) of title 23, United States Code. ``(3) Aggregate face amount of tax-exempt financing.-- ``(A) In general.--An issue shall not be treated as an issue described in subsection (a)(13) if the aggregate face amount of bonds issued pursuant thereto (when added to the aggregate face amount of bonds previously so issued and outstanding) exceeds $15,000,000,000. ``(B) Allocation.--The Secretary of Transportation shall allocate the amount described in subparagraph (A) among the eligible pilot projects designated under paragraph (2). ``(C) Reallocation.--If any portion of an allocation under subparagraph (B) is unused on the date which is 3 years after such allocation, the Secretary of Transportation may reallocate such portion among the remaining eligible pilot projects.'' (c) Exemption From General State Volume Caps.--Paragraph (3) of section 146(g) of such Code (relating to exception for certain bonds) is amended-- (1) by striking ``or (12)'' and inserting ``(12), or (13)'', and (2) by striking ``and environmental enhancements of hydroelectric generating facilities'' and inserting ``environmental enhancements of hydroelectric generating facilities, and qualified highway infrastructure projects''. (d) Report.-- (1) In general.--Not later than the earlier of-- (A) one year after either one-half of the projects authorized under section 142(k) of the Internal Revenue Code of 1986 have been identified or one-half of the total bonds allowable for such projects under such section have been issued, or (B) seven years after the date of the enactment of this Act, the Secretary of Transportation, in consultation with the Secretary of the Treasury, shall submit to the Committees on Finance and Environment and Public Works of the Senate and the Committees on Ways and Means and Transportation and Infrastructure of the House of Representatives the report described in paragraph (2). (2) Contents.--The report under paragraph (1) shall evaluate the overall success of the program conducted pursuant to the amendments made by this Act, including-- (A) a description of each project, (B) the extent to which such projects used new technologies, construction techniques, or innovative cost controls which resulted in savings in building the project, and (C) the use and efficiency of the Federal tax subsidy provided by the bond financing. (e) Effective Date.--The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
summary: Highway Infrastructure Privatization Act - Amends the Internal Revenue Code to provide for the treatment of a qualified highway infrastructure project bond as an exempt facility bond. Directs the Secretary of the Treasury to select no more than 15 highway infrastructure projects as pilot projects eligible for tax-exempt financing.