North Carolina HB 909: State Infrastructure Bank Board.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 909
Committee Substitute Favorable 5/6/25

Short Title: State Infrastructure Bank Board. (Public)
Sponsors:
Referred to:
April 14, 2025
*H909-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A STATE INFRASTRUCTURE BANK BOARD. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Article 6 of Chapter 147 of the General Statutes is amended by adding 4
the following new sections to read: 5
"§ 147-86.5. Establishment of State Infrastructure Bank Board. 6
(a) Establishment. – There is established a State Infrastructure Bank Board. The Board 7
shall be located in the Department of State Treasurer for administrative purposes only and shall 8
function independently of the Department. The Board shall establish, administer, and receive 9
federal funds for a State Infrastructure Bank authorized by the Intermodal Surface Transportation 10
Efficiency Act of 1991, Public Law 102-240, as amended, the National Highway System 11
Designation Act of 1995, Public Law 104-59, as amended, and any other federal law authorizing 12
and governing the use of federal funds for a transportation infrastructure banking program. 13
Through the State Infrastructure Bank, the Board may also administer and receive State funds 14
and private funds for transportation projects, water and sewer projects, and other infrastructure 15
projects. For purposes of this section, "other infrastructure projects" means projects that are 16
publicly owned or undertaken through a public-private partnership and that are essential to the 17
health, safety, and economic vitality of the State. 18
(b) Federal Financial Assistance. – The Board may apply for, receive, and administer 19
federal financial assistance necessary to fund the State Infrastructure Bank. The Board shall 20
comply with all conditions and requirements related to the federal financial assistance. 21
(c) Use of Funds. – Except as otherwise prohibited under federal law, the Board may 22
utilize the following funds for the purpose of providing loans or other financial assistance to 23
governmental units, including toll authorities: 24
(1) Federal funds, State funds, and private funds to finance the costs of 25
transportation projects, including aviation projects. 26
(2) State funds and private funds to finance the costs of water and sewer projects 27
and other infrastructure projects. 28
(d) Conditions and Repayment. – Loans or other financial assistance provided under this 29
section are subject to repayment and conditioned upon the establishment of any security and the 30
payment of any fees and interest rates deemed necessary by the Board. Governmental units may 31
apply for loans and execute debt instruments payable to the State in order to obtain loans or other 32
financial assistance provided for in this section. The Board shall require that applicants pledge 33
as security for the obligations revenues derived from operation of the benefited facilities or 34
systems, other sources of revenue, or their faith and credit, or any combination thereof. The faith 35
and credit of the governmental units shall not be pledged or be deemed to have been pledged 36

General Assembly Of North Carolina Session 2025
Page 2 House Bill 909-Second Edition
unless the requirements of Article 4 of Chapter 159 of the General Statutes have been met. The 1
Board may apply a municipality's share of funds allocated under G.S. 136-41.1 or G.S. 136-44.20 2
as necessary to ensure repayment of funds advanced under this section. 3
(e) Loan Term Requirements. – Loans made pursuant to this section shall not exceed 30 4
years in duration unless otherwise approved by a unanimous vote of the Board. Interest rates 5
shall not be less than fifty percent (50%) of the market AAA municipal bond rate prevailing at 6
the time of loan approval, except if federal law requires otherwise or if the Board finds, by a 7
supermajority vote, that a lower rate is necessary to achieve a compelling public interest. 8
(f) Concessionary Lending Authority. – The Board may provide loans or other financial 9
assistance at interest rates below prevailing market rates, including zero percent (0%), if doing 10
so would meet all of the following requirements: 11
(1) Facilitate the participation of private capital through blended financing or 12
public-private partnerships. 13
(2) Enable projects that otherwise would not proceed due to insufficient 14
commercial viability or excessive capital costs. 15
(3) Advance critical infrastructure goals, including regional equity, economic 16
development, environmental resilience, or public health. 17
(g) Blended Financing Authority. – In order to leverage private investment, the Board 18
may structure financial assistance packages that combine public and private funds. These 19
packages may include any of the following: 20
(1) Subordinated or concessionary loans from the State Infrastructure Bank 21
designed to reduce risk to senior private cap