[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1574 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1574

  To establish a Clean Energy for Homes and Buildings Program in the 
    Department of Energy to provide financial assistance to promote 
 residential-, commercial-, and industrial-scale energy efficiency and 
                    on-site renewable technologies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 4, 2009

Mr. Merkley (for himself and Mr. Lugar) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To establish a Clean Energy for Homes and Buildings Program in the 
    Department of Energy to provide financial assistance to promote 
 residential-, commercial-, and industrial-scale energy efficiency and 
                    on-site renewable technologies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Energy for Homes and Buildings 
Act of 2009''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) homes and commercial or industrial buildings in the 
        United States consume significant quantities of energy, 
        including energy for electricity and heating, the generation or 
        combustion of which creates significant quantities of 
        greenhouse gas emissions;
            (2) in most cases, energy efficiency is the most cost-
        effective and rapidly deployable strategy for reducing 
        greenhouse gas emissions, energy demand, and the need for long-
        distance transmission of energy;
            (3) on-site renewable energy generation reduces greenhouse 
        gas emissions, demand on the electricity transmission grid, and 
        the need for long-distance transmission of energy;
            (4) many energy efficiency measures and on-site renewable 
        energy generation systems produce a net cost savings over the 
        course of the useful life of the measures and systems, and 
        often over a shorter time frame, but the initial expense 
        required to purchase and install the measures and systems is 
        often a significant barrier to widespread investment in the 
        measures and systems;
            (5) financial products, financing programs, and other 
        programs that reduce or eliminate the need for the initial 
        expense described in paragraph (4) can permit building owners 
        to invest in measures and systems that reduce total energy 
        costs and realize net cost savings at the time of the 
        installation of the measures and systems, defer capital 
        expenditure, and enhance the value, comfort, and sustainability 
        of the property of the owners; and
            (6) State and local governments, utilities, energy 
        efficiency and renewable energy service providers, banks, 
        finance companies, community development organizations, and 
        other entities are developing financial products and programs 
        to provide financing assistance for building owners to 
        encourage the use of the measures and systems described in 
        paragraph (4), including programs that allow repayment of loans 
        under programs described in paragraph (5) through utility 
        bills, or through property-based assessments, taxes, or 
        charges, to facilitate loan repayment for the benefit of 
        building owners and lenders or program sponsors.

SEC. 3. PURPOSE.

    The purpose of this Act is to encourage widespread deployment of 
energy efficiency and on-site renewable energy technologies in homes 
and other buildings throughout the United States through the 
establishment of a self-sustaining Clean Energy for Homes and Buildings 
Program that can--
            (1) encourage the widespread availability of financial 
        products and programs with attractive rates and terms that 
        significantly reduce or eliminate upfront expenses to allow 
        building owners (including homeowners, business owners, owners 
        of multifamily housing, owners of multi-tenant commercial 
        properties, and owners of other residential, commercial, or 
        industrial properties) to invest in energy efficiency measures 
        and on-site renewable energy systems with payback periods of up 
        to 25 years or the useful life of such a measure or system by 
        providing credit support, credit enhancement, secondary 
        markets, and other support to originators of the financial 
        products and sponsors of the financing programs; and
            (2) help building owners invest in measures and systems 
        that reduce energy costs, in many cases creating a net cost 
        savings that can be realized in the short-term, and may also 
        allow building owners to defer capital expenditures and 
        increase the value, comfort, and sustainability of the property 
        of the owners.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
            (2) 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).
            (3) 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).
            (4) Program.--The term ``Program'' means the Clean Energy 
        for Homes and Buildings Program established by section 6.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Security.--The term ``security'' has the meaning given 
        the term in section 2 of the Securities Act of 1933 (15 U.S.C. 
        77b).
            (7) State.--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.

SEC. 5. CLEAN ENERGY FOR HOMES AND BUILDINGS GOALS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall develop and publish for 
review and comment in the Federal Register near-, medium-, and long-
term goals (including numerical performance targets at appropriate 
intervals to measure progress toward those goals) for--
            (1)(A) a minimum number of homes to be retrofitted through 
        energy efficiency measures or to have on-site renewable energy 
        systems added;
            (B) a minimum number of other buildings, by type, to be 
        retrofitted through energy efficiency measures or to have on-
        site renewable energy systems added; and
            (C) the number of on-site solar energy, wind energy, and 
        geothermal heat pump systems to be installed; and
            (2) as a result of those retrofits, additions, and 
        installations--
                    (A) the quantity by which use of grid-supplied 
                electricity, natural gas, home heating oil, and other 
                fuels will be reduced;
                    (B) the quantity by which total fossil fuel 
                dependence in the buildings sector will be reduced;
                    (C) the quantity by which greenhouse gas emissions 
                will be reduced;
                    (D) the number of jobs that will be created; and
                    (E) the estimated total energy cost savings for 
                building owners.
    (b) Estimates by Originators or Sponsors.--The Secretary may rely 
on reasonable estimates made by originators of financial products or 
sponsors of financing programs for tracking progress toward meeting the 
goals established under this section instead of requiring building 
owners to monitor and report on the progress.

SEC. 6. CLEAN ENERGY FOR HOMES AND BUILDINGS PROGRAM.

    (a) Establishment.--There is established in the Department of 
Energy a program to be known as the Clean Energy for Homes and 
Buildings Program.
    (b) Eligibility Criteria.--
            (1) In general.--In administering the Program, the 
        Secretary shall establish eligibility criteria for applicants 
        for financial assistance under subsection (c) who can offer 
        financial products and programs consistent with the purposes of 
        this Act.
            (2) Criteria.--Criteria for applicants shall--
                    (A) take into account--
                            (i) the number and type of buildings that 
                        can be served by the applicant, the size of the 
                        potential market, and the scope of the program 
                        (in terms of measures or technologies to be 
                        used);
                            (ii) the ability of the applicant to 
                        successfully execute the proposed program and 
                        maintain the performance of the proposed 
                        projects and investments;
                            (iii) financial criteria, as applicable, 
                        including the ability of the applicant to raise 
                        private capital or other sources of funds for 
                        the proposed program;
                            (iv) criteria that enable the Secretary to 
                        determine sound program design, including--
                                    (I) an assurance of credible energy 
                                efficiency or renewable energy 
                                generation performance; and
                                    (II) financial product or program 
                                design that effectively reduces 
                                barriers posed by traditional financing 
                                programs;
                            (v) such criteria, standards, guidelines, 
                        and mechanisms as will enable the Secretary, to 
                        the maximum extent practicable, to communicate 
                        to program sponsors and originators, servicers, 
                        and sellers of financial obligations the 
                        eligibility of loans for resale;
                            (vi) the ability of the applicant to report 
                        relevant data on program performance; and
                            (vii) the ability of the applicant to use 
                        incentives or marketing techniques that are 
                        likely to result in successful market 
                        penetration; and
                    (B) encourage--
                            (i) use of technologies that are either 
                        well-established or new, but demonstrated to be 
                        reliable;
                            (ii) applicants that can offer building 
                        owners payment plans generally designed to 
                        permit the combination of energy payments and 
                        assessments or charges from the installation or 
                        payments associated with financing to be lower 
                        than the energy payments prior to installing 
                        energy efficiency measures or on-site renewable 
                        energy technologies;
                            (iii) applicants that will use repayment 
                        mechanisms convenient for building owners, such 
                        as tax-increment financing, special tax 
                        districts, on-utility-bill repayment, or other 
                        mechanisms;
                            (iv) applicants that can provide 
                        convenience for building owners by combining 
                        participation in the lending program with--
                                    (I) processing for tax credits and 
                                other incentives; and
                                    (II) technical assistance in 
                                selecting and working with vendors to 
                                provide energy efficiency measures or 
                                on-site renewable energy generation 
                                systems;
                            (v) applicants the projects of which will 
                        use contractors that hire within a 50-mile 
                        radius of the project, or as close as is 
                        practicable;
                            (vi) applicants that will use materials and 
                        technologies manufactured in the United States;
                            (vii) partnerships with or other 
                        involvement of State workforce investment 
                        boards, labor organizations, community-based 
                        organizations, State-approved apprenticeship 
                        programs, and other job training entities; and
                            (viii) applicants that can provide 
                        financing programs or financial products that 
                        mitigate barriers other than the initial 
                        expense of installing measures or technologies, 
                        such as unfavorable lease terms.
            (3) Diverse portfolio.--In establishing criteria and 
        selecting applicants to receive financial assistance under 
        subsection (c), to the maximum extent practicable, the 
        Secretary shall select a portfolio of investments that reaches 
        a diversity of building owners, including--
                    (A) individual homeowners;
                    (B) multifamily apartment building owners;
                    (C) condominium owners associations;
                    (D) commercial building owners, including multi-
                tenant commercial properties; and
                    (E) industrial building owners.
    (c) Financial Assistance.--
            (1) In general.--For applicants determined to be eligible 
        under criteria established under subsection (b), the Secretary 
        may provide financial assistance in the form of direct loans, 
        letters of credit, loan guarantees, insurance products, other 
        credit enhancements or debt instruments (including 
        securitization or indirect credit support), or other financial 
        products to promote the widespread deployment of, and mobilize 
        private sector support of credit and investment institutions 
        for, energy efficiency measures and on-site renewable energy 
        generation systems in buildings.
            (2) Financial products.--The Secretary--
                    (A) in cooperation with Federal, State, local, and 
                private sector entities, shall develop debt instruments 
                that provide for the aggregation of, or directly 
                aggregate, programs for the deployment of energy 
                efficiency measures and on-site renewable energy 
                generation systems on a scale appropriate for 
                residential, commercial, or industrial applications; 
                and
                    (B) may insure, guarantee, purchase, and make 
                commitments to purchase any debt instrument associated 
                with the deployment of clean energy technologies 
                (including subordinated securities) for the purpose of 
                enhancing the availability of private financing for the 
                deployment of energy efficiency measures and on-site 
                renewable energy generation systems.
            (3) Application review.--
                    (A) In general.--To the maximum extent practicable 
                and consistent with sound business practices, the 
                Secretary shall seek to expedite reviews of 
                applications for credit support under this Act in order 
                to communicate to applicants in a timely manner the 
                likelihood of support so that the applicants can seek 
                private capital in order to receive final approval.
                    (B) Mechanisms.--In carrying out this paragraph, 
                the Secretary shall consider using mechanisms such as--
                            (i) a system for conditional pre-approval 
                        that informs applicants that final applicants 
                        will be approved, if established conditions are 
                        met;
                            (ii) clear guidelines that communicate to 
                        applicants what level of performance on 
                        eligibility criteria will ensure approval for 
                        credit support or resale;
                            (iii) in the case of an applicant portfolio 
                        of more than 300 loans or other financial 
                        arrangement, an expedited review based on 
                        statistical sampling to ensure that the loan or 
                        other financial arrangement meets the 
                        eligibility criteria; and
                            (iv) in the case of an applicant with a 
                        demonstrated track record with respect to 
                        successfully originating eligible loans or 
                        other financial arrangements and who meets 
                        appropriate other criteria determined by the 
                        Secretary, a system for delegating 
                        responsibility for meeting eligibility criteria 
                        that includes appropriate protections such as 
                        buy-back mechanisms in the event criteria are 
                        determined not to have been met.
                    (C) Disposition of debt or interest.--The Secretary 
                may acquire, hold, and sell or otherwise dispose of, 
                pursuant to commitments or otherwise, any debt 
                associated with the deployment of clean energy 
                technologies or interest in the debt.
                    (D) Pricing.--
                            (i) In general.--The Secretary may 
                        establish requirements, and impose charges or 
                        fees, which may be regarded as elements of 
                        pricing, for different classes of applicants, 
                        originators, sellers, servicers, or services.
                            (ii) Classification of applicants, 
                        originators, sellers and servicers.--For the 
                        purpose of clause (i), the Secretary may 
                        classify applicants, originators, sellers and 
                        servicers as necessary to promote transparency 
                        and liquidity and properly characterize the 
                        risk of default.
                    (E) Secondary market support.--
                            (i) In general.--The Secretary may lend on 
                        the security of, and make commitments to lend 
                        on the security of, any debt that the Secretary 
                        has insured, guaranteed, issued or is 
                        authorized to purchase under this section.
                            (ii) Authorized actions.--On such terms and 
                        conditions as the Secretary may prescribe, the 
                        Secretary may--
                                    (I) give security;
                                    (II) insure;
                                    (III) guarantee;
                                    (IV) purchase;
                                    (V) sell;
                                    (VI) pay interest or other return; 
                                and
                                    (VII) issue notes, debentures, 
                                bonds, or other obligations or 
                                securities.
                    (F) Lending activities.--
                            (i) In general.--The Secretary shall 
                        determine--
                                    (I) the volume of the lending 
                                activities of the Program; and
                                    (II) the types of loan ratios, risk 
                                profiles, interest rates, maturities, 
                                and charges or fees in the secondary 
                                market operations of the Program.
                            (ii) Objectives.--Determinations under 
                        clause (i) shall be consistent with the 
                        objectives of--
                                    (I) providing an attractive 
                                investment environment for programs 
                                that install energy efficiency measures 
                                or on-site renewable energy generation 
                                technologies;
                                    (II) making the operations of the 
                                Program self-supporting over the long 
                                term; and
                                    (III) advancing the goals 
                                established under this Act.
                    (G) Exempt securities.--All securities issued, 
                insured, or guaranteed by the Secretary 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.

SEC. 7. GENERAL PROVISIONS.

    (a) Periodic Reports.--Not later than 1 year after commencement of 
operation of the Program and at least biannually thereafter, the 
Secretary shall submit to the Committee on Energy and Natural Resources 
of the Senate and the Committee on Energy and Commerce of the House of 
Representatives a report that includes a description of the Program in 
meeting the purpose and goals established by or pursuant to this Act.
    (b) Audits by the Comptroller General.--
            (1) In general.--The programs, activities, receipts, 
        expenditures, and financial transactions of the Program 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) Access.--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 Program, or any agent, 
                representative, attorney, advisor, or consultant 
                retained by the Program, 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 pursuant to section 716(c) 
                of title 31, United States Code.
            (3) Assistance and cost.--
                    (A) In general.--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) Reimbursement.--
                            (i) In general.--On the request of the 
                        Comptroller General, the Secretary shall 
                        reimburse the General Accountability Office for 
                        the full cost of any audit conducted by the 
                        Comptroller General under this subsection.
                            (ii) Crediting.--Such reimbursements 
                        shall--
                                    (I) be credited to the 
                                appropriation account entitled 
                                ``Salaries and Expenses, Government 
                                Accountability Office'' at the time at 
                                which the payment is received; and
                                    (II) remain available until 
                                expended.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$2,000,000,000.
                                 <all>