1.This Act may be cited as the
Clean Energy for Homes and Buildings
Act of 2009
.
2.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.
3.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.
4.In this Act:
(1)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)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)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)The term Program means the
Clean Energy for Homes and Buildings Program established by section 6.
(5)The term Secretary means the
Secretary of Energy.
(6)The term security has the
meaning given the term in section 2 of the Securities Act of 1933 (15 U.S.C.
77b).
(7)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.
5.Clean energy for homes and buildings
goals
(a)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
sponsorsThe 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.
6.Clean energy for homes and buildings
program
(a)There is established in the Department of
Energy a program to be known as the Clean Energy for Homes and Buildings
Program.
(b)
(1)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 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)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)
(1)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)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)
(A)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)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
interestThe 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)
(i)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 servicersFor 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)
(i)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)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)
(i)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)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)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.
7.
(a)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)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)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)
(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)
(i)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)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.
8.Authorization of
appropriationsThere is
authorized to be appropriated to carry out this Act $2,000,000,000.