1.This Act may be cited as
the 21st Century Energy Technology
Deployment Act
.
2.The purpose of this Act is to promote the
domestic development and deployment of the advanced, clean energy technologies
required for the 21st century through the establishment of a 21st Century
Energy Deployment Corporation that will provide for an attractive investment
environment through—
(1)the development
of a stable secondary market for clean energy technology deployment loans;
and
(2)the cooperation
and support of the private capital market in order to promote access to
affordable debt financing for accelerated deployment of advanced clean energy
technologies and first-of-a-kind commercial deployments.
3.In this Act:
(1)The term Advisory Council means the Energy
Technology Advisory Council of the Corporation.
(2)The term Board of Directors means the
Board of Directors of the Corporation.
(3)The term breakthrough technology means a
clean energy technology that—
(A)receives a high
rating according to the criteria established by the Advisory Council for
meeting the objectives of this Act; but
(B)has been impeded
in the development of the technology due to perceived high technical risk by
the commercial financial sector.
(4)The term clean energy technology means a
technology related to the production, use, transmission, control, or
conservation of energy that will contribute to meeting objectives of the United
States—
(A)to reduce the
need for additional energy supplies by using existing energy supplies with
greater efficiency or by transmitting energy with greater effectiveness through
United States energy infrastructure;
(B)to diversify the
sources of energy supply of the United States to include supplies that are
environmentally sustainable; or
(C)to stabilize
atmospheric greenhouse gas levels thorough reduction, avoidance, and
sequestration of energy-related emissions.
(5)The
term Corporation means the 21st Century Energy Deployment
Corporation established by section 5.
(6)The term National Laboratory has the
meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C.
15801).
(7)The term novel technology means a clean
energy technology that, as determined by the Advisory Council or the
Secretary—
(A)has been
sufficiently demonstrated; and
(B)has not been
widely deployed on a commercial scale.
(8)The
term Secretary means the Secretary of Energy.
(9)The
term security has the meaning given the term in section 2 of the
Securities Act of 1933 (15 U.S.C. 77b).
(10)The
term State means—
(A)a State;
(B)the District of
Columbia;
(C)the Commonwealth
of Puerto Rico; and
(D)any other
territory or possession of the United States.
(11)The term technology risk means risk of project
failure generally considered by lenders due to the lack of operating
applications of the technology.
4.Energy
technology deployment goals
(a)Not
later than 1 year after the date of enactment of this Act, the Secretary, after
consultation with the Advisory Council, shall develop and publish
near-, medium-, and long-term goals for the deployment of clean energy
technologies through the Corporation to establish or promote—
(1)sufficient
electric generating capacity using clean energy technologies to meet the energy
needs of the United States;
(2)clean energy
technologies in vehicles and fuels that will end the reliance of the United
States on foreign sources of energy and insulate consumers from the price
shocks of world energy markets;
(3)a domestic
commercialization and manufacturing capacity that will establish the United
States as a world leader in clean energy technologies across multiple
sectors;
(4)installation of
sufficient infrastructure to allow for the cost-effective deployment of clean
energy technologies in each region of the United States;
(5)the
transformation of the building stock of the United States to zero net energy
consumption;
(6)the recovery,
use, and prevention of waste energy in the industrial sector;
(7)domestic
manufacturing of clean energy technologies on a scale that is sufficient to
make the cost to the consumer less than current technologies;
(8)domestic
production of raw materials (such as steel, cement, and iron) using clean
energy technologies so that the United States will become a world leader in
sustainable production of the materials;
(9)a robust,
efficient, and interactive electricity transmission grid that will allow for
the implementation of clean energy technologies, distributed generation, and
demand-response in each State; and
(10)such other goals
as the Secretary and Advisory Council determine to be consistent with the
purposes of this Act.
(b)Taking into account the goals established under
subsection (a), the Advisory Council shall publish 5- and 10-year numerical
targets, and annual interim targets, to guide and measure the performance of
the Corporation toward supporting the deployment of clean energy technologies
and achieving other goals developed under that subsection.
(c)Until the first publication by the Advisory Council of
targets under subsection (b), in establishing the deployment priorities of the
Corporation, the Corporation shall consider deploying—
(1)commercial-scale
carbon capture and storage from electricity generation capturing at least
10,000,000 short tons per year by 2015;
(2)solar
photovoltaic systems with a power production cost of 14 cents per
kilowatt-hour;
(3)concentrated
solar power systems with a power production cost of 6 cents per
kilowatt-hour;
(4)wind power
systems greater than 100 kilowatts with a power production cost of—
(A)3.6 cents per
kilowatt-hour by 2012 for land-based sites with average wind speeds of 13 miles
per hour; and
(B)5 cents per
kilowatt-hour by 2015 for offshore wind systems with average wind speeds of 15
miles per hour;
(5)new enhanced
geothermal systems generation capacity with a power production cost of 5 cents
per kilowatt-hour by 2023;
(6)technologies to
realize a 20 percent improvement in energy intensity by energy-intensive
industries by 2020; and
(7)advanced energy
systems to achieve net-zero energy use in new residential and commercial
buildings by 2025 through a 60 percent-reduction in building energy use.
(d)To the extent practicable and consistent with the
purpose of this Act, not less than 75 percent of the support provided by the
Corporation under this section shall be for breakthrough technologies.
(e)
(1)The
Secretary shall revise the goals established under subsection (a), from time to
time as appropriate, to account for advances in technology and changes in
energy policy.
(2)The Advisory Council shall revise the performance targets
under subsection (b), from time to time as appropriate, to account for advances
in technology and changes in energy policy.
5.21st Century
Energy Deployment Corporation
(a)
(1)There is established the 21st Century Energy Deployment
Corporation, which shall be a body corporate under the direction of a Board of
Directors.
(2)Subject to other provisions of law (including
regulations), the Board of Directors shall determine the general policies that
govern the operations of the Corporation.
(3)
(A)The Corporation shall—
(i)maintain the
principal office of the Corporation in the District of Columbia; and
(ii)for purposes of
venue in civil actions, be considered to be a resident of the District of
Columbia.
(B)Other agencies
and officesThe Corporation may establish other agencies or
offices in such other places as the Corporation considers necessary or
appropriate for the conduct of the business of the Corporation.
(b)
(1)The Board of Directors shall consist of—
(A)the Secretary,
who shall serve an ex-officio member of the Board; and
(B)9 members who
shall—
(i)be
appointed by the President for staggered 4-year terms, as determined by the
President; and
(ii)have experience
in banking or financial services relevant to the operations of the Corporation,
including—
(I)at least 1
individual with substantial experience in the development of energy
projects;
(II)at least 1
individual with experience in the electric utility industry; and
(III)at least 1
individual with experience in the banking industry.
(2)Any
appointed member of the Board of Directors may be removed from office by the
President for good cause.
(3)Any
appointive seat on the Board of Directors that becomes vacant shall be filled
by appointment by the President, but only for the unexpired portion of the
term.
(4)Compensation;
travel expensesA member of the Board of Directors shall not be
compensated for service on the Board of Directors but shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of title 5, United
States Code, while away from the home or regular place of business of the
member in the performance of the duties of the Board of Directors.
(c)Energy
Technology Advisory Council
(1)The Corporation shall have an Energy Technology Advisory
Council consisting of—
(A)5 members
selected by the Secretary; and
(B)3 members
selected by the Board of Directors.
(2)The
members of the Advisory Council shall—
(A)have relevant
scientific expertise; and
(B)include
representatives of—
(i)the
academic community;
(ii)the private
research community; and
(iii)National
Laboratories.
(3)The
Advisory Council shall—
(A)develop a rating
system for projects and clean energy technologies to determine how well the
projects and clean energy technologies address the purpose of this Act and
establish a priority for the projects and clean energy technologies for
financial assistance under this Act, taking into account—
(i)the
extent to which a project or clean energy technology will enhance the energy
security of the United States;
(ii)the potential
the project or clean energy technology has to enhance the competitiveness of
the United States in providing energy technologies likely to be in demand
throughout the world;
(iii)the potential
benefits of the project or clean energy technology in averting climate change;
and
(iv)the potential of
the technology, once deployed, to become financially self-sustaining;
(B)advise on the
technological approaches that should be supported by the Corporation to meet
the technology deployment goals established by the Secretary; and
(C)set risk and
default rate targets for individual technologies, such that the maximum
practicable ratio of breakthrough technologies to novel technologies is
developed.
(4)
(A)Members of the Advisory Council shall have 3-year
staggered terms, as determined by the Secretary and the Board of
Directors.
(B)A
member of the Advisory Council may be reappointed.
(5)A
member of the Advisory Council shall serve without compensation but shall be
allowed travel expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the Advisory
Council.
6.Clean energy
technology deployment securitization
(a)The Corporation may purchase, and make commitments to
purchase, any debt instrument associated with the deployment of clean energy
technologies.
(b)Disposition of
debt or interestThe Corporation may hold and deal with, and sell
or otherwise dispose of, pursuant to commitments or otherwise, any debt
described in subsection (a) or interest in the debt.
(c)
(1)The Corporation may establish requirements, and impose
charges or fees, which may be regarded as elements of pricing, for different
classes of sellers or services.
(2)Classification
of sellersFor the purpose of paragraph (1), the Corporation may
classify sellers as necessary to promote transparency and liquidity and
properly characterize the risk of default.
(d)The
Corporation shall establish criteria and mechanisms such that, to the maximum
extent practicable, sellers will be able to determine the eligibility of loans
for resale at the time of initial lending.
(e)Aggregation of
small scale projectsThe Corporation shall work with Federal,
State, local, and private sector entities to develop debt instruments that
aggregate projects for clean energy technology deployments on a residential or
small commercial scale.
(f)
(1)The Corporation may lend on the security of, and make
commitments to lend on the security of, any debt that the Corporation is
authorized to purchase under this section.
(2)On such terms and conditions as the Corporation may
prescribe, the Corporation may—
(A)borrow;
(B)give
security;
(C)pay interest or
other return; and
(D)issue notes,
debentures, bonds, or other obligations or securities.
(g)
(1)The Corporation shall determine—
(A)the volume of the
lending activities of the Corporation; and
(B)the type of loan
ratios, risk profiles, interest rates, maturities, and charges or fees in the
secondary market operations of the Corporation.
(2)Determinations
under paragraph (1) shall be consistent with the objectives of—
(A)providing an
attractive investment environment for clean energy technologies;
(B)making the
operations of the Corporation self-supporting over the long term; and
(C)meeting the
targets established by the Advisory Council.
(h)The Corporation shall insert appropriate language in
all of the obligations and securities of the Corporation issued under this
section that clearly indicates that the obligations and securities (together
with the interest)—
(1)are not
guaranteed by the United States; and
(2)do not constitute
a debt or obligation of the United States or any agency or instrumentality
other than the Corporation.
(i)All securities issued or guaranteed by the Corporation
shall, to the same extent as securities that are direct obligations of or
obligations guaranteed as to principal or interest by the United States, be
considered to be exempt securities within the meaning of the laws administered
by the Securities and Exchange Commission.
(j)Other
authorized programs
(1)The Secretary may contract with the Corporation to
provide financial services and program management for grant, loan, and other
credit enhancement programs authorized under any other provision of law.
(2)In
administering any other program under contract with the Secretary, the
Corporation shall, to the maximum extent practicable (as determined by the
Corporation)—
(A)administer the
program in a manner that is consistent with the terms and conditions of this
Act; and
(B)minimize the
administrative costs to the Federal Government.
7.Federal
ownership of obligations
(a)In order to maintain sufficient liquidity, the
Corporation may issue notes, debentures, bonds, or other obligations for
purchase by the Secretary of the Treasury.
(b)For the purpose of subsection (a)—
(1)the Secretary of
the Treasury may use as a public debt transaction the proceeds of the sale of
any securities issued under chapter 31 of title 31, United States Code;
and
(2)the purposes for
which securities may be issued under that chapter are extended to include any
purchase under this subsection.
(c)Maximum
outstanding holdingThe Secretary of the Treasury shall not
purchase any obligations under this section if the purchase would increase the
aggregate principal amount of the outstanding holdings of obligations under
this section by the Secretary to an amount that is greater than
$1,500,000,000.
(d)Each purchase of obligations by the Secretary of the
Treasury under this section shall be on terms and conditions established to
yield a rate of return determined by the Secretary to be appropriate, taking
into account the current average rate on outstanding marketable obligations of
the United States as of the last day of the month preceding the
purchase.
(e)The Secretary of the Treasury may at any time sell,
on terms and conditions and at prices determined by the Secretary, any of the
obligations acquired by the Secretary under this section.
(f)All redemptions, purchases, and sales by the
Secretary of the Treasury of obligations under this section shall be treated as
public debt transactions of the United States.
8.
(a)Immunity from
impairment, limitation, or restriction
(1)All rights and remedies of the Corporation (including any
rights and remedies of the Corporation on, under, or with respect to any
mortgage or any obligation secured by a mortgage) shall be immune from
impairment, limitation, or restriction by or under—
(A)any law (other
than a law enacted by Congress expressly in limitation of this paragraph) that
becomes effective after the acquisition by the Corporation of the subject or
property on, under, or with respect to which the right or remedy arises or
exists or would so arise or exist in the absence of the law; or
(B)any
administrative or other action that becomes effective after the
acquisition.
(2)The Corporation may conduct the business of the Corporation
without regard to any qualification or law of any State relating to
incorporation.
(b)Subject
to subsection (c), the Corporation shall have all the powers of a private
corporation incorporated under the District of Columbia Business Corporation
Act (D.C. Code, sec. 29 et seq.).
(c)
(1)Performance-based
compensationA significant portion of potential compensation of
all executive officers of the Corporation shall be based on the performance of
the Corporation, all without regard to any other law except as may be provided
by the Corporation or by a law enacted after the date of enactment of this Act
that expressly limits this paragraph.
(2)With the consent of a department, establishment, or
instrumentality (including any field office), the Corporation may—
(A)use and act
through any department, establishment, or instrumentality;
(B)use, and pay
compensation for, information, services, facilities, and personnel of the
department, establishment, or instrumentality.
(d)
(1)Funds
of the Corporation may be invested in such investments as the Board of
Directors may prescribe.
(2)
(A)Any Federal Reserve bank or any bank as to which at the
time of the designation of the bank by the Corporation there is outstanding a
designation by the Secretary of the Treasury as a general or other depository
of public money, may be designated by the Corporation as a depositary or
custodian or as a fiscal or other agent of the Corporation.
(B)Depositary of
public moneyIf designated for that purpose by the Secretary of
the Treasury, the Corporation—
(i)shall be a
depositary of public money, under such regulations as may be promulgated by the
Secretary of the Treasury;
(ii)may also be
employed as a fiscal or other agent of the United States; and
(iii)shall perform
all such reasonable duties of such depositary or agent as may be
required.
(e)
(1)Subject to paragraph (2), the Corporation (including the
franchise, activities, capital, reserves, surplus, and income of the
Corporation) shall be exempt from all taxation imposed by any State or local
political subdivision of a State.
(2)Any real property of the Corporation shall be subject to
taxation by a State or political subdivision of a State to the same extent
according to the value of the real property as other real property is
taxed.
(f)Notwithstanding
section 1349 of title 28, United States Code, or any other provision of
law—
(1)the Corporation
shall be considered an agency covered by sections 1345 and 1442 of title 28,
United States Code;
(2)all civil actions
to which the Corporation is a party shall be considered to arise under the laws
of the United States, and the district courts of the United States shall have
original jurisdiction of all such actions, without regard to amount or value;
and
(3)any civil or
other action, case or controversy in a court of a State, or in any court other
than a district court of the United States, to which the Corporation is a party
may at any time before trial be removed by the Corporation, without the giving
of any bond or security and by following any procedure for removal of causes in
effect at the time of the removal—
(A)to the district
court of the United States for the district and division embracing the place in
which the same is pending; or
(B)if there is no
such district court, to the district court of the United States for the
district in which the principal office of the Corporation is located.
(g)Not later than 1 year after incorporation of the
Corporation and annually thereafter, the Corporation shall submit to the
Committee on Energy and Natural Resources of the Senate and the Committee on
Energy and Commerce in the House a report that includes—
(1)a description
of—
(A)the technologies
supported by activities of the Corporation and how the activities advance the
purposes of this Act;
(B)the performance
of the Corporation on meeting the goals established by the Secretary;
(C)the comparability
of the compensation policies of the Corporation with the compensation policies
of other similar businesses;
(D)in the aggregate,
the percentage of total cash compensation and payments under employee benefit
plans (which shall be defined in a manner consistent with the proxy statement
of the Corporation for the annual meeting of shareholders for the preceding
year) earned by executive officers of the Corporation during the preceding year
that was based on the performance of the Corporation; and
(E)the comparability
of the financial performance of the Corporation with the performance of other
similar businesses; and
(2)the proxy
statement of the Corporation for the annual meeting of shareholders for the
preceding year.
(h)Audits by the
Comptroller General
(1)The programs, activities, receipts, expenditures, and
financial transactions of the Corporation shall be subject to audit by the
Comptroller General of the United States under such rules and regulations as
may be prescribed by the Comptroller General.
(2)The
representatives of the Government Accountability Office shall—
(A)have access to
the personnel and to all books, accounts, documents, records (including
electronic records), reports, files, and all other papers, automated data,
things, or property belonging to, under the control of, or in use by the
Corporation and necessary to facilitate the audit;
(B)be afforded full
facilities for verifying transactions with the balances or securities held by
depositories, fiscal agents, and custodians;
(C)be authorized to
obtain and duplicate any such books, accounts, documents, records, working
papers, automated data and files, or other information relevant to the audit
without cost to the Comptroller General; and
(D)have the right of
access of the Comptroller General to such information be enforceable pursuant
to section 716(c) of title 31, United States Code.
(3)
(A)The Comptroller General shall submit to Congress a report
on each audit conducted under this subsection.
(B)The
report shall include a description of—
(i)the
scope of the audit;
(ii)any surplus or
deficit;
(iii)income and
expenses;
(iv)sources and
application of funds;
(v)such comments and
information as is necessary to inform Congress of the financial operations and
condition of the Corporation; and
(vi)any
recommendations as the Comptroller General considers appropriate.
(4)
(A)For the purpose of conducting an audit under this
subsection, the Comptroller General may, in the discretion of the Comptroller
General, employ by contract, without regard to section 3709 of the Revised
Statutes (41 U.S.C. 5), professional services of firms and organizations of
certified public accountants for temporary periods or for special
purposes.
(B)On
the request of the Comptroller General, the Corporation shall reimburse the
General Accountability Office for the full cost of any audit conducted by the
Comptroller General under this subsection.
(i)
(1)The Corporation shall have an annual independent audit
made of the financial statements of the Corporation by an independent public
accountant in accordance with generally accepted auditing standards.
(2)In
conducting an audit under this subsection, the independent public accountant
shall determine and report on whether the financial statements of the
Corporation—
(A)are presented
fairly in accordance with generally accepted accounting principles; and
(B)to the extent
determined necessary by the Director, comply with any disclosure requirements
imposed under this Act.
9.Oversight by the
Secretary
(a)The
Secretary shall—
(1)oversee the
operations of the Corporation; and
(2)ensure
that—
(A)the Corporation
operates in a safe and sound manner, including maintenance of adequate capital
and internal controls;
(B)the operations
and activities of the Corporation foster liquid, efficient, competitive, and
resilient energy finance markets;
(C)the Corporation
carries out the statutory mission of the Corporation only through activities
that are authorized under and consistent with this Act; and
(D)the activities of
the Corporation and the manner in which the Corporation is operated is
consistent with the public interest.
(b)
(1)The Corporation shall submit to the Secretary annual and
quarterly reports of the financial condition and operations of the Corporation
which shall be in such form, contain such information, and be submitted on such
dates as the Secretary shall require.
(2)Contents of
annual reportsEach annual report shall include—
(A)financial
statements prepared in accordance with generally accepted accounting
principles;
(B)any supplemental
information or alternative presentation that the Secretary may require;
and
(C)an assessment (as
of the end of the most recent fiscal year of the Corporation), signed by the
chief executive officer and chief accounting or financial officer of the
Corporation, of—
(i)the
effectiveness of the internal control structure and procedures of the
Corporation; and
(ii)the compliance
of the Corporation with designated safety and soundness laws.
(3)The Secretary may require the Corporation to submit other
reports on the condition (including financial condition), management,
activities, or operations of the Corporation, as the Secretary considers
appropriate.
(4)Each
report of financial condition shall contain a declaration by the president,
vice president, treasurer, or any other officer designated by the Board of
Directors of the Corporation to make the declaration, that the report is true
and correct to the best of the knowledge and belief of the officer.
(c)Management and
operation standardsThe Secretary shall establish standards, by
regulation or guideline, for the Corporation relating to—
(1)the adequacy of
internal controls and information systems;
(2)the independence
and adequacy of internal audit systems;
(3)the management of
market risk, including standards to provide for systems that measure, monitor,
and control market risks and, as warranted, to establish limitations on market
risk;
(4)risk management
processes, including the adequacy of oversight by senior management and the
Board of Directors and of processes and policies to measure, monitor, and
control material risks, including reputational risks, and for adequate,
well-tested business resumption plans in the case of disruptive events;
(5)the management of
credit and counterparty risk, including systems to identify concentrations of
credit risk and prudential limits to restrict the exposure of the Corporation
to a single counterparty or groups of related counterparties;
(6)the maintenance
of adequate records, in accordance with consistent accounting policies and
practices to enable the Secretary to evaluate the financial condition of the
Corporation; and
(7)such other
operational and management standards as the Secretary determines to be
appropriate.
(d)Failure To meet
standards
(1)If the Secretary determines that the Corporation fails to
meet any standard established under subsection (c), the Secretary may require
the Corporation to submit an acceptable plan to the Secretary within a
reasonable time that specifies the actions that the Corporation will take to
correct the deficiency.
(2)Required order
on failure to submit or implement planIf the Corporation fails
to submit an acceptable plan within the time specified by the Secretary or
fails in any material respect to implement a plan accepted by the Secretary,
the Secretary shall, by order, require the Corporation to correct the
deficiency.
(e)Prohibition and
withholding of executive compensation
(1)The Secretary shall prohibit the Corporation from
providing compensation to any executive officer that is not reasonable and
comparable with compensation for employment in other similar businesses
(including other publicly held financial institutions or major financial
services companies) involving similar duties and responsibilities.
(2)In
making any determination under paragraph (1), the Secretary may take into
consideration any factors the Secretary considers relevant, including any
wrongdoing on the part of the executive officer.
(3)Withholding of
compensationIn carrying out paragraph (1), the Secretary may
require the Corporation to withhold any payment, transfer, or disbursement of
compensation to an executive officer, or to place such compensation in an
escrow account, during the review of reasonableness and comparability of
compensation.
(4)Prohibition of
setting compensationIn carrying out paragraph (1), the Secretary
may not prescribe or set a specific level or range of compensation.
10.Issuance of
common stock to expand operations
(a)Not later than 5 years after the date of enactment of
this Act, the Corporation may prepare a strategic plan for issuing common stock
to raise the capital needed to expand the operations of the Corporation in
carrying out this Act.
(b)Consideration
of alternatives for governanceThe strategic plan shall include
consideration of alternatives for restructuring the Board of Directors to allow
for a majority of the Members to be selected by voting common
stockholders.
(c)Evaluation and
recommendationThe strategic plan shall—
(1)evaluate the
relative merits of the alternatives considered; and
(2)include the
recommendation of the Corporation on a proposed alternative.
(d)On
completion of the strategic plan, the Corporation shall submit copies of the
strategic plan to the President and Congress, along with any recommendations
for legislative changes required to implement the plan.
(e)Subject
to subsections (f) and (g), subsequent to submitting a strategic plan pursuant
to this section, the Corporation may implement the strategic plan.
(f)Requirement for
presidential approvalThe Corporation may not implement the
strategic plan without the approval of the President.
(g)
(1)The Corporation shall notify Congress of any intent to
implement the strategic plan if the Corporation determines, in consultation
with the Secretary and other appropriate agencies of the United States, that no
further legislation is required for the implementation.
(2)The
Corporation may not implement the strategic plan under this subsection earlier
than 60 days after notification of Congress.