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119-hr-6923119th CongressWALLET

Jobs for a Carbon Free Transportation System Act

Sponsored By: Representative DeSaulnier, Mark [D-CA-10]

In Committee

Summary

Creates federal programs and financing to accelerate low-carbon, transit-oriented development. It pairs DOT grants for connected multimodal corridors with tax and TIF tools and worker transition programs to expand transit, affordable housing, and guaranteed jobs for displaced energy workers.

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  • Communities and local governments: DOT’s Low Carbon Corridor grants fund planning and construction of multimodal corridors, including high-occupancy vehicle lanes, transit-oriented and high-density development, rail, pedestrian and bicycle facilities, and partnerships with nonprofits or universities.
  • Financing and developers: The bill authorizes Federal value capture tax increment financing districts and a new Qualified Transit-Oriented Development bond category to pay for projects within a half mile of major transit. District designations run only through December 31, 2030 and projects may be required to reserve 25 to 50 percent of increased property tax revenue for debt service.
  • Workers and labor standards: It creates a Renewable Energy Transition Grant Program and a National Employment Corps to plan transitions and guarantee jobs, sets a $15 per hour minimum wage with inflation indexing for Corps positions, and requires Davis-Bacon and related labor laws plus Buy America rules with a 60 percent domestic cost threshold for manufactured products.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Jobs and training for energy workers

If enacted, the bill would fund local and Tribal transition plans to help workers move from fossil-fuel jobs to sustainable industries. Grants would pay for training, apprenticeships, and planning. If an approved local plan in good faith failed to transition all workers, a National Employment Corps would guarantee jobs and training and pay wages, benefits, and material costs. Corps jobs would pay at least $15.00 per hour plus benefits (indexed for inflation) and allow one paid 8-hour day each month for job search or training.

Grants and federal TIF for transit

If enacted, DOT would run a Low Carbon Corridor grant program to fund HOV lanes, transit-oriented development, EV lanes, high-speed rail, and bike/walk projects. States, local governments, Tribes, and MPOs could apply and funded projects must follow Davis-Bacon and other federal labor laws. Projects would generally need to meet Buy America rules: manufactured products must have over 60% U.S. component cost and iron/steel must be processed in the U.S.; waivers would require a Federal Register notice and written explanation. DOT could also designate Federal TIF districts to capture future property tax growth to pay for transit, housing, and community projects; a district could run up to 30 tax years and would end by December 31, 2030, a local end date, or revocation by the Secretary. Treasury must set certification rules within one year and give 30 days' written notice to specified Congressional committees before letters of intent.

New tax-exempt bonds for transit housing

If enacted, the bill would create a new tax-exempt private activity bond called a qualified transit-oriented development bond. Bonds would finance land and buildings within one-half mile of major transit and must follow local policies that promote long-term affordable housing, dense mixed-use development near transit, and value capture. Issuers would need to reserve 25–50% of any increase in real property tax revenues attributable to the project exclusively for debt service (to the extent the increase does not exceed debt service). The yearly aggregate amount issuable by an authority would be limited by its Move America volume cap, and projects financed with these bonds must follow Davis-Bacon wage rules.

Sponsors & CoSponsors

Sponsor

DeSaulnier, Mark [D-CA-10]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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