1.This Act may be cited as
the Renewable Energy Access through
Leasing Act of 2011
or the REAL Act of 2011
.
2.Loans for
financing of renewable energy systems leased for residential useSubtitle 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:
414.Loans for
financing of renewable energy systems leased for residential use
(a)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)In
this section:
(1)Authorized
renewable energy lenderThe term authorized renewable
energy lender means a lender authorized by the Secretary to make a loan
under this section.
(2)Renewable energy
system leaseThe 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
manufacturerThe term renewable energy manufacturer
means a manufacturer of renewable energy systems.
(4)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 ownerThe 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)
(1)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)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)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)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)
(1)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)The renewable energy system lease shall specify that the
renewable energy system lease can be assumed by new homeowners.
(f)
(1)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)In
carrying out this subsection, the Secretary may consult with agencies and
entities involved in oversight of home mortgages.
(g)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)
(1)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)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)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)The Secretary shall
provide for the filing of claims for insurance under this section and the
payment of the claims.
(2)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)
(A)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)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)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 insuranceA 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)
(1)
(A)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)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 chargesExcept 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)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)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)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)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 BankNotwithstanding 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)
(1)The Secretary shall issue such regulations as are
necessary to carry out this section.
(2)In issuing the regulations, the Secretary shall ensure
that multifamily housing units are eligible for programs established by this
section.
(3)Not
later than 180 days after the date of enactment of this section, the Secretary
shall issue interim or final regulations.
(o)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.
.