H.R. 6923 — Jobs for a Carbon Free Transportation System Act

This section establishes a grant program administered by the Secretary of Transportation to eligible entities—including states, local or tribal governments or their subdivisions, and metropolitan planning organizations—for projects to develop low carbon corridors (i.e., connected systems-management corridors linking public transportation, rail, roadways, and alternative transportation methods) in order to lower carbon emissions, increase transportation interconnectivity, and reinvest in infrastructure. Grant funds may be used for specified low carbon and investment mechanisms, including (1) high occupancy vehicle lanes, (2) value capture, (3) transit-oriented and high-density development, (4) carbon fees, (5) automated or electric vehicle lanes connected to transit, (6) Smart Cities connectivity, (7) high-speed rail, and (8) pedestrian and bicycle facilities. This section requires projects to comply with the Davis-Bacon Act (40 U.S.C. ch. 31 subch. IV), Walsh-Healey Act (41 U.S.C. ch. 65), McNamara-O’Hara Service Contract Act (41 U.S.C. ch. 67), Work Hours and Safety Standards Act (40 U.S.C. ch. 37), and Fair Labor Standards Act (29 U.S.C. 201 et seq.), and grants the Secretary of Labor the enforcement authorities in Reorganization Plan No. 14 of 1950 and 40 U.S.C. 3145 (i.e., requiring contractors to submit weekly statements on wages paid). Grant recipients may partner with nonprofit organizations or universities on corridor plans; the Secretaries of Transportation and Environmental Protection Agency must jointly monitor carbon emission reductions; and recipients must use U.S.-produced iron, steel, and manufactured products (with specified definitions and waiver authority if inconsistent with public interest, unavailable, or increases project costs by more than 25%), consistent with U.S. international obligations.

This section defines 11 terms for purposes of this title, including “affordable transit-oriented development” (i.e., development of commercial and residential areas near public transportation stations that promotes affordable housing and affordable commercial space); “tax increment district” (i.e., an area wholly within a municipality designated pursuant to section 7); and tax increment financing (TIF) concepts such as “captured assessed value,” “current assessed value,” “increased assessed value,” “original assessed value,” “tax increment” (i.e., capital gains taxes on increased assessed value), and “financial plan.” (Thus, these definitions enable states and local governments to establish TIF districts that capture property tax increments to finance transit-oriented projects.)

This section establishes a technical assistance and value capture policy program (new 49 U.S.C. §5341) to promote investments in public transportation and affordable transit-oriented development (i.e., commercial and residential areas near public transportation stations that include affordable housing and commercial space). Specifically, it (1) authorizes the Secretary of Transportation to make grants to states and local governments (i.e., counties, cities, and other general-purpose political subdivisions or combinations thereof) to develop value capture mechanisms (i.e., collecting a portion of economic value created by government investments, activities, and policies to fund further investments), improve public transportation and mobility, and form strategic partnerships for long-term investments; (2) directs the Secretary, by October 1 of the fiscal year beginning two years after enactment and in collaboration with state departments of transportation, metropolitan planning organizations, and regional governments, to establish voluntary value capture standards; and (3) authorizes the Secretary to enter into contracts or agreements with qualified nonprofit organizations for related technical assistance. Additionally, it requires the Secretary to issue a public report within 15 months after enactment containing examples of state and local value capture laws and policies and, based on that report, to identify and disseminate best practices to state departments of transportation and specified congressional committees.

This section directs the Secretary of Transportation to designate Federal value capture tax increment financing districts from nominated eligible areas to finance public transportation, affordable housing, and other community development activities. (As background, tax increment financing captures increases in property tax revenues from development within a district to fund public improvements rather than distributing them to taxing entities.) Designations may be made annually and remain in effect until the earliest of December 31, 2030; a state- or locally designated termination date; or revocation by the Secretary for boundary modifications or substantial noncompliance with benchmarks under section 4. To qualify, areas must (1) be nominated by state(s) and local governments with requisite authority and meeting standards under section 4; (2) have reasonably accurate information; and (3) not overlap existing federal TIF districts, infrastructure value capture zones, or other nominated areas. Applications must include a strategic plan detailing district boundaries, parcels, current conditions, anticipated public and private improvements, maintenance plans, and a maximum 30-year duration; and a financial plan with cost estimates, maximum indebtedness, revenue sources, agreement terms, projected assessed value increases, and tax increment allocations.

This section establishes eligibility criteria for designation of nominated areas under section 5, requiring the relevant state or local government or agency to (1) designate a contiguous area within its jurisdiction as a transit-oriented development or transit-served corridor and (2) create a tax increment financing district or other value capture mechanism meeting the standards described in section 4.

This section directs the Secretary of the Treasury, after consultation with the Secretary of Transportation, to (1) establish procedures to certify the original assessed value of federal capital gains taxes within designated Federal value capture tax increment financing (TIF) districts (as described in section 5); (2) annually certify, for each such district, the assessed value of capital gains collected, the change from the original assessed value (subject to any assessment agreements), and the captured assessed value; and (3) analyze the maximum amount available for federal guarantees of qualified transit-oriented development bonds, not to exceed an annual amount determined by the Secretary. (Federal value capture TIF districts are targeted redevelopment areas within a municipality, county, or other government entity that temporarily dedicate all or a portion of projected future property tax revenue increases to finance infrastructure improvements or other investments aimed at stimulating economic development; assessment agreements establish the tax base, dedicated increased tax collections, collection procedures, and approved uses for such funds.) This section further requires the Secretary to issue implementing regulations within one year of enactment and to notify specified Senate and House committees at least 30 days before issuing a letter of intent to establish a district, including the nomination application, designation, evaluations, and ratings.

This section establishes qualified transit-oriented development bonds as a new category of tax-exempt private activity bonds (i.e., bonds issued by state or local governments for specified private purposes, subject to annual volume caps) for financing the acquisition, construction, reconstruction, or improvement of land or property within one-half mile of major public transportation facilities (e.g., fixed-guideway transit stations, high-speed rail stations, intercity rail stations, or intermodal stations). To qualify, such bonds must be issued pursuant to local government policies, as determined by the Secretary of the Treasury, that (1) promote long-term affordable housing or commercial space, (2) promote high-density mixed-use development near stations, (3) encourage value capture and sharing to invest in public transportation and affordable transit-oriented development, (4) secure principal and interest primarily by general taxes, (5) reserve 25 to 50 percent of increased real property tax revenues for debt service to the extent needed, or (6) use other value capture mechanisms such as user fees or sales taxes; the aggregate face amount of bonds is capped by the issuer's "Move America volume cap," which states allocate among eligible issuers. This section applies Davis-Bacon prevailing wage requirements (40 U.S.C. ch. 31, subch. IV) to projects financed by such bonds in federal value capture tax increment financing districts. The amendments apply to taxable years beginning after the Secretary establishes procedures for determining compliance with the local policy requirements.

This section states congressional findings concerning the economic contributions and environmental/health impacts of fossil fuel industries in California regions, including unemployment, poverty, pollution, and poor air/water quality affecting nearby communities. It emphasizes the need for community transition grants to foster regional coalitions—representing labor, environmental justice, industry, economic development, tribal/municipal governments, and educational institutions—that develop equitable strategies for transitioning fossil fuel workers and frontline communities to sustainable jobs and economies.

This section establishes a grant program, administered by the Secretary of Labor in consultation with the Secretary of Energy, under which eligible local or Tribal governments may receive grants to develop plans transitioning workers from fossil fuel industries (i.e., traditional energy sector jobs at average or above-average levels relative to the United States, as determined using the 2017 U.S. Energy and Employment Report) to sustainable industries. Eligibility requires (1) establishing industry or sector partnerships (as defined in the Workforce Innovation and Opportunity Act), and (2) certifying plan development in consultation with relevant experts (e.g., in energy labor, green economy policies, and energy policy) and State officials, if applicable. Grant funds may be used to (1) develop the transition plan, which must incorporate access to existing federal and state aid for displaced workers (e.g., unemployment insurance, job transition training, community services, and trade adjustment assistance) and may supplement such aid (e.g., bridges to retirement, wage insurance, and career change training with case management); (2) support existing or develop new apprenticeship programs; or (3) train new workforce entrants for sustainable industry jobs (e.g., manufacturing, autonomous or electric vehicles, renewable energy, or CERCLA remediation), including employer partnerships for job placement. The section authorizes appropriations of such sums as necessary.

This section establishes the National Employment Corps within the Department of Labor to guarantee jobs and training for eligible workers—individuals who lose or anticipate losing jobs due to the transition from traditional to sustainable energy sources—if local or Tribal transition plans under section 10 fail to employ all such workers. The Corps provides grants to local and Tribal governments for direct employment projects covering wages (not less than $15 per hour, comparable to regional wages, varying by experience, education, region, and promotion prospects, and indexed for inflation), benefits, and materials. Local recipients must coordinate proposals with community leaders, labor organizations, and residents, prohibiting use of funds to replace or displace existing employees. If grants prove inadequate for full employment, the Secretary of Labor intervenes directly and offers eligible workers supportive services; wrap-around services (e.g., transportation, childcare); job preparation and counseling; adult education and literacy; and assistance for justice-involved individuals. The Corps coordinates with federal agencies to identify investment needs (e.g., infrastructure, energy efficiency, retrofitting, elder care, childcare, job training, education, health services) and maintains websites listing projects and available workers, who receive up to 8 hours per employed month for job seeking and professional development. Corps participants join existing collective bargaining units.