I 111th CONGRESS 1st Session H. R. 3836 IN THE HOUSE OF REPRESENTATIVES October 15, 2009 Mr. Israel introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To authorize the Secretary of Energy to provide credit support to enhance the availability of private financing for clean energy technology deployment.

1.

Indirect support

(a)

In general

For the purpose of enhancing the availability of private financing for clean energy technology deployment, the Secretary of Energy may— (1)provide credit support to portfolios of taxable debt obligations originated by State, local, and private sector entities that enable owners and users of buildings and industrial facilities to— (A)significantly increase the energy efficiency of such buildings or facilities; or (B)install systems that individually generate electricity from renewable energy resources and have a capacity of no more than 2 megawatts; (2)facilitate financing transactions in tax equity markets and long-term purchasing of clean energy by State, local, and nongovernmental not-for-profit entities, to the degree and extent that the Secretary of Energy determines such financing activity is appropriate and consistent with carrying out the purpose described in subsection (b); and (3)provide credit support to portfolios of taxable debt obligations originated by State, local, and private sector entities that enable the deployment of energy storage applications for electric drive vehicles, stationary applications, and electricity transmission and distribution. (b)

Purpose

The purpose of this program is to promote access to affordable financing for accelerated and widespread deployment of— (1)clean energy technologies; (2)advanced or enabling energy infrastructure technologies; and (3)energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings. (c)

Definitions

For purposes of the section: (1)

Clean energy technology

The term clean energy technology means a technology related to the production, use, transmission, storage, control, or conservation of energy— (A)that will contribute to a stabilization of atmospheric greenhouse gas concentrations thorough reduction, avoidance, or sequestration of energy-related emissions and— (i)reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States; or (ii)diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; and (B)for which, as determined by the Administrator, insufficient commercial lending is available at affordable rates to allow for widespread deployment. (2)

Credit support

The term credit support means— (A)direct loans, letters of credit, loan guarantees, and insurance products; and (B)the purchase or commitment to purchase, or the sale or commitment to sell, debt instruments (including subordinated securities). (3)

Direct loan

The term direct loan has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). (4)

Loan guarantee

The term loan guarantee has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). (5)

Renewable energy resource

The term renewable energy resource means each of the following: (A)Wind energy. (B)Solar energy. (C)Geothermal energy. (D)Renewable biomass. (E)Biogas derived exclusively from renewable biomass. (F)Biofuels derived exclusively from renewable biomass. (G)Hydropower. (H)Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17211). (d)

Transparency

The Secretary of Energy shall seek to foster through its credit support activities— (1)the development and consistent application of standard contractual terms, transparent underwriting standards and consistent measurement and verification protocols, as applicable; and (2)the creation of performance data that promotes effective underwriting and risk management to support lending markets and stimulate the development of private investment markets. (e)

Exempt securities

All securities insured or guaranteed by the Secretary of Energy shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to the 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.