[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1126 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1126

To amend the Energy Independence and Security Act of 2007 to authorize 
  the Secretary of Energy to insure loans for financing of renewable 
   energy systems leased for residential use, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 26, 2011

Mr. Whitehouse (for himself, Mr. Alexander, and Mr. Udall of Colorado) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
To amend the Energy Independence and Security Act of 2007 to authorize 
  the Secretary of Energy to insure loans for financing of renewable 
   energy systems leased for residential use, and for other purposes.

    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 ``Renewable Energy Access through 
Leasing Act of 2011'' or the ``REAL Act of 2011''.

SEC. 2. LOANS FOR FINANCING OF RENEWABLE ENERGY SYSTEMS LEASED FOR 
              RESIDENTIAL USE.

    Subtitle A of title IV of the Energy Independence and Security Act 
of 2007 is amended by inserting after section 413 (42 U.S.C. 17071) the 
following:

``SEC. 414. LOANS FOR FINANCING OF RENEWABLE ENERGY SYSTEMS LEASED FOR 
              RESIDENTIAL USE.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to encourage residential use of renewable energy 
        systems by minimizing upfront costs and providing immediate 
        utility cost savings to consumers through leasing of those 
        systems to homeowners;
            ``(2) to reduce carbon emissions and the use of 
        nonrenewable resources;
            ``(3) to encourage energy-efficient residential 
        construction and rehabilitation;
            ``(4) to encourage the use of renewable resources by 
        homeowners;
            ``(5) to minimize the impact of development on the 
        environment;
            ``(6) to reduce consumer utility costs; and
            ``(7) to encourage private investment in the green economy.
    ``(b) Definitions.--In this section:
            ``(1) Authorized renewable energy lender.--The term 
        `authorized renewable energy lender' means a lender authorized 
        by the Secretary to make a loan under this section.
            ``(2) Renewable energy system lease.--The term `renewable 
        system energy lease' means an agreement between an authorized 
        renewable energy system owner and a homeowner for a term of not 
        less than 5 years, under which the homeowner--
                    ``(A) grants an easement to the renewable energy 
                system owner to install, maintain, use, and otherwise 
                access the renewable energy system; and
                    ``(B) agrees to--
                            ``(i) lease the use of the system from the 
                        renewable energy system owner; or
                            ``(ii) a power purchase agreement.
            ``(3) Renewable energy manufacturer.--The term `renewable 
        energy manufacturer' means a manufacturer of renewable energy 
        systems.
            ``(4) Renewable energy system.--The term `renewable energy 
        system' means a system of energy derived from--
                    ``(A) a wind, solar (including photovoltaic and 
                solar thermal), biomass (including biodiesel), or 
                geothermal source; or
                    ``(B) hydrogen derived from biomass or water using 
                an energy source described in subparagraph (A).
            ``(5) Renewable energy system owner.--The term `renewable 
        energy system owner' means a homebuilder, a manufacturer or 
        installer of a renewable energy system, or any other person, as 
        determined by the Secretary.
    ``(c) Authority.--
            ``(1) In general.--The Secretary may, on application by an 
        authorized renewable energy system owner, insure or make a 
        commitment to insure a loan made by an authorized renewable 
        energy lender to a renewable energy system owner to finance the 
        acquisition of a renewable energy system for lease to a 
        homeowner for use at the residence of the homeowner.
            ``(2) Terms and conditions.--The Secretary may prescribe 
        such terms and conditions for insurance under paragraph (1) as 
        are consistent with the purposes of this section.
    ``(d) Limitation on Principal Amount.--
            ``(1) Limitation.--The principal amount of a loan insured 
        under this section shall not exceed the residual value of the 
        renewable energy system to be acquired with the loan.
            ``(2) Residual value.--For purposes of this subsection--
                    ``(A) the residual value of a renewable energy 
                system shall be the fair market value of the future 
                revenue stream from the sale of the expected remaining 
                electricity production from the system, pursuant to the 
                easement granted in accordance with subsection (e); and
                    ``(B) the fair market value of the future revenue 
                stream for each year of the remaining life of the 
                renewable energy system shall be determined based on 
                the net present value of the power output production 
                warranty for the renewable energy system provided by 
                the renewable energy manufacturer and the forecast of 
                regional residential electricity prices made by the 
                Energy Information Administration of the Department.
    ``(e) Easement.--
            ``(1) In general.--The Secretary may not insure a loan 
        under this section unless the renewable energy system owner 
        certifies, in accordance with such requirements as the 
        Secretary shall establish, consistent with the purposes of this 
        section, that the renewable energy system financed will be 
        leased only to a homeowner that grants an easement to install, 
        maintain, use, and otherwise access the renewable energy system 
        that includes the right to sell electricity produced during the 
        life of the renewable energy system to a wholesale or retail 
        electrical power grid.
            ``(2) Assumable lease.--The renewable energy system lease 
        shall specify that the renewable energy system lease can be 
        assumed by new homeowners.
    ``(f) Discount or Prepayment.--
            ``(1) In general.--To encourage the use of renewable energy 
        systems, the Secretary shall ensure that a discount given to a 
        homeowner by a renewable energy system owner or other investor 
        or prepayment of a renewable energy system lease by a renewable 
        energy system owner does not adversely affect the mortgage 
        requirements of the homeowner.
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary may consult with agencies and entities involved in 
        oversight of home mortgages.
    ``(g) Eligibility of Lenders.--The Secretary may not insure a loan 
under this section unless the lender making the loan is an institution 
that meets such requirements as the Secretary shall establish for 
participation of renewable energy lenders in the program under this 
section.
    ``(h) Certificate of Insurance.--
            ``(1) In general.--The Secretary shall issue to a lender 
        that is insured under this section a certificate that serves as 
        evidence of insurance coverage under this section.
            ``(2) Contents of certificate.--The certificate required 
        under paragraph (1) shall describe the fair market value of the 
        future revenue stream for each year of the remaining life of 
        the renewable energy system.
            ``(3) Full faith and credit.--The certificate required 
        under paragraph (1) shall be backed by the full faith and 
        credit of the United States.
    ``(i) Payment of Insurance Claim.--
            ``(1) Filing of claim.--The Secretary shall provide for the 
        filing of claims for insurance under this section and the 
        payment of the claims.
            ``(2) Payment of claim.--A claim under paragraph (1) may be 
        paid only on a default under the loan insured under this 
        section and the assignment, transfer, and delivery to the 
        Secretary of--
                    ``(A) all rights and interests arising under the 
                loan; and
                    ``(B) all claims of the lender or the assigns of 
                the lender against the borrower or others arising under 
                the loan transaction.
            ``(3) Lien.--
                    ``(A) In general.--On payment of a claim for 
                insurance of a loan under this section, the Secretary 
                shall hold a lien on the underlying renewable energy 
                system assets and any associated revenue stream from 
                the use of the system, which shall be superior to all 
                other liens on the assets.
                    ``(B) Residual value.--The residual value of the 
                renewable energy system and the revenue stream from the 
                use of the system shall be not less than the unpaid 
                balance of the loan amount covered by the certificate 
                of insurance.
                    ``(C) Revenue from sale.--The Secretary shall be 
                entitled to any revenue generated by the renewable 
                energy system from selling electricity to the grid when 
                an insurance claim has been paid out.
    ``(j) Assignment and Transferability of Insurance.--A renewable 
energy system owner or an authorized renewable energy lender that is 
insured under this section may assign or transfer the insurance, in 
whole or in part, to another owner or lender, subject to such 
requirements as the Secretary may prescribe.
    ``(k) Premiums and Charges.--
            ``(1) Insurance premiums.--
                    ``(A) In general.--The Secretary shall fix and 
                collect premiums for insurance of loans under this 
                section, that shall be--
                            ``(i) paid by the applicant renewable 
                        energy system owner at the time of issuance of 
                        the certificate of insurance to the lender; and
                            ``(ii) adequate, as determined by the 
                        Secretary, to cover the expenses and probable 
                        losses of administering the program under this 
                        section.
                    ``(B) Deposit of premium.--The Secretary shall 
                deposit any premiums collected under this subsection in 
                the Renewable Energy Lease Insurance Fund established 
                by subsection (l).
            ``(2) Prohibition on other charges.--Except as provided in 
        paragraph (1), the Secretary may not assess any other fee 
        (including a user fee), insurance premium, or charge in 
        connection with loan insurance provided under this section.
    ``(l) Renewable Energy Lease Insurance Fund.--
            ``(1) Fund established.--There is established in the 
        Treasury of the United States the Renewable Energy Lease 
        Insurance Fund (referred to in this subsection as the `Fund'), 
        which shall be available to the Secretary without fiscal year 
        limitation, for the purpose of providing insurance under this 
        section.
            ``(2) Credits.--The Fund shall be credited with--
                    ``(A) any premiums collected under subsection 
                (k)(1);
                    ``(B) any amounts collected by the Secretary under 
                subsection (i)(3); and
                    ``(C) any associated interest or earnings.
            ``(3) Availability.--Amounts in the Fund shall be available 
        to the Secretary for--
                    ``(A) fulfilling any obligations with respect to 
                insurance for loans provided under this section; and
                    ``(B) paying administrative expenses in connection 
                with this section.
            ``(4) Excess amounts.--The Secretary may invest in 
        obligations of the United States any amounts in the Fund 
        determined by the Secretary to be in excess of amounts required 
        at the time of the determination to carry out this section.
    ``(m) Ineligibility for Purchase by Federal Financing Bank.--
Notwithstanding any other provision of law, no debt obligation that is 
insured or committed to be insured by the Secretary under this section 
shall be subject to the Federal Financing Bank Act of 1973 (12 U.S.C. 
2281 et seq.).
    ``(n) Regulations.--
            ``(1) In general.--The Secretary shall issue such 
        regulations as are necessary to carry out this section.
            ``(2) Multifamily housing.--In issuing the regulations, the 
        Secretary shall ensure that multifamily housing units are 
        eligible for programs established by this section.
            ``(3) Timing.--Not later than 180 days after the date of 
        enactment of this section, the Secretary shall issue interim or 
        final regulations.
    ``(o) Termination of Authority.--The authority of the Secretary to 
insure and make commitments to insure new loans under this section 
shall terminate on the date that is 10 years after the date of 
enactment of this section.''.
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