[Congressional Record Volume 154, Number 38 (Thursday, March 6, 2008)]
[Senate]
[Pages S1705-S1711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. WARNER (for himself and Mr. Webb):
S. 2725. A bill to designate the facility of the United States Postal
Service located at 6892 Main Street in Gloucester, Virginia, as the
``Congresswoman Jo Ann S. Davis Post Office''; to the Committee on
Homeland Security and Governmental Affairs.
Mr. WARNER. Mr. President, on October 6, 2007, the people of
Virginia's First Congressional District lost one of its most respected
and admired leaders, a dedicated Member of Congress and loyal friend,
Representative Jo Ann Davis.
Today, I am proud to have Senator Jim Webb join me in introducing a
bill to honor our dear colleague. This legislation would designate the
United States Post Office at 6892 Main Street in Gloucester, Virginia,
as the ``Congresswoman Jo Ann S. Davis Post Office.'' Representative
Robert Wittman has introduced companion legislation in the House of
Representatives.
Born in North Carolina, Jo Ann Davis attended Hampton Roads Business
College in Virginia and later obtained her real estate license and real
estate broker's license over the next several years. In 1990, she
started her own company, Jo Ann Davis Realty, and followed this
successful endeavor with a run for public office in 1997. Serving as a
Delegate in the Virginia General Assembly for 4 years, Jo Ann Davis
became the first Republican woman to serve Virginia in the U.S.
Congress after winning her election in 2000.
Representative Davis was a relentless champion for the needs of the
First District. It was my privilege to work with her on many matters,
ranging from national defense to the environment, and in that regard,
she worked hard to improve the health of the Chesapeake Bay. Also, I
commend her diligent leadership in the removal of the James River
Reserve Fleet from Newport News. From her support for the Rappahannock
River Valley National Wildlife Refuge to her concern with the
preservation of Dragon Run or providing funding for oyster restoration,
she always put the quality of Virginia's environment above politics.
With sincere passion and concern, Representative Davis worked to
improve our Nation's armed services and the lives of the men and women
who bravely answer the call to duty. She provided strong representation
for the communities in and surrounding the Naval Surface Warfare Center
at Dahlgren and the Marine Corps base at Quantico, ensuring that these
facilities continue to make important contributions to protecting the
nation and to the economic foundations of their respective areas. Her
initiative to increase the life insurance benefit paid to survivors of
military members and her advocacy on behalf of the rights and benefits
of Federal employees will continue to be appreciated in the years
ahead.
I have always admired Representative Davis for her strong convictions
and the tenacity that she brought to bear in acting on them. She fought
a courageous struggle against cancer, and I will miss her insights and
her friendship in our Virginia Congressional Delegation.
I am pleased to offer this small token of recognition and gratitude
for someone who has given so much to the Commonwealth and her country.
I close with a personal note that we both shared interests in
equestrian activities. There is an old English saying that ``the
outside of the horse is good for the inside of the man.'' As an avid,
accomplished rider, she often quipped with me that the saying applies
equally to a woman. She loved the noble horse.
I join with my colleagues from the Commonwealth and from the entire
U.S. Congress in expressing my deepest sympathies to her husband, her
two sons, and her extended family. They remain in our thoughts and
prayers.
______
By Mr. CASEY (for himself and Ms. Snowe):
S. 2726. A bill to amend the Emergency Food Assistance Act of 1983 to
require the Secretary of Agriculture to help offset the costs of
intrastate transportation, storage, and distribution of bonus
commodities provided to States and food assistance agencies under the
emergency food assistance program; to the Committee on Agiculture,
Nutrition, and Forestry.
Mr. CASEY. Mr. President, I rise today to talk about a crisis that is
facing a growing number of Americans every day. That crisis is hunger.
In this country, as food prices continue to rise, more and more
American families find themselves desperately in need of help just to
put food on the table for themselves and their families.
In 2006 alone, the U.S. Department of Agriculture, USDA, reported
that 35.5 million Americans did not have enough money or resources to
get food for at least some period during the year. This figure was an
increase of 400,000 over 2005 and an increase of 2.3 million since
2000. And, with the fragile state of our economy, we can only assume
that these figures for 2007 and 2008 will be even more disturbing. The
only recourse for these millions of people is to turn to Federal food
assistance programs and emergency food banks for their basic food
needs.
Unfortunately, as recent articles in national publications like the
USA Today and the New York Times have highlighted, there is a critical
lack of food inventories available in local food pantries across the
country. Rising demand, sharp drops in Federal supplies of excess
commodities, and declining donations have forced food banks to cut back
on rations, and in some cases, close their doors. In short, America's
food banks are facing critical shortages now.
As a member of the Senate Committee on Agriculture, Nutrition, and
Forestry, I had a hand in helping to create a new farm bill. This bill,
as passed by the Senate, will help food banks by providing additional
annual funding to shore up food bank supplies. But, as we continue to
conference this bill with the House, there are further steps we can
take to help ensure that food banks can continue to fulfill their
mission.
That is why today I am pleased to join with Senator Snowe to
introduce the Bonus TEFAP Assistance Act of 2008. This act will provide
critical support needed to ensure food assistance agencies, already in
desperate need of supplies, can take full advantage of the
distributions of bonus food commodities supplied by USDA through the
Emergency Food Assistance Program, TEFAP. By helping to offset the
intrastate storage, transportation, and distribution costs the food
assistance agencies incur to distribute these bonus food surpluses, the
act will ensure the commodities will be able to reach the greatest
number of needy individuals.
The Emergency Food Assistance Program began in 1981 as a temporary
program with dual purposes; it was intended to help reduce the Federal
food inventories and storage costs while also assisting the needy.
Because of the program's success in helping distribute food to those in
need, in 1988, after much of the Federal inventory was depleted, the
Hunger Prevention Act authorized funds to be appropriated to purchase
food for TEFAP.
Under current-day TEFAP, the USDA provides States and food assistance
agencies with food commodities bought specifically for the program and
with funding to help cover distributing agencies' intrastate storage,
handling, and distribution costs. In addition, when available, USDA
provides any excess food not needed to fulfill other
[[Page S1706]]
program requirements to States for allocation to local food assistance
agencies. This excess food is otherwise known as ``bonus TEFAP.''
Unfortunately, while the USDA generously distributes these bonus TEFAP
commodities to the States, many of the State and food assistance
agencies are unable to accept the bonus TEFAP commodities because they
do not have the resources to store, transport, or distribute them.
The Bonus TEFAP Assistance Act of 2008 that I am introducing today
with Senator Snowe alleviates this problem by providing offsetting
funds to recipient agencies to assist with the costs of storing,
transporting, and distributing bonus TEFAP commodities. The funds
provided through this legislation will help to provide more food to
those in need through food banks, food pantries, emergency shelters,
soup kitchens, and other organizations that directly provide these
resources to the public.
To solve the problem the inadequacy of local resources causes, the
bill authorizes the Secretary of Agriculture to use existing funds
granted under section 32 of the Agricultural Adjustment Act of 1935.
Currently, section 32 funds are used to fund child nutrition programs
and other programs to support the farm sector at the discretion of the
Secretary. Through this legislation, a small portion of section 32
funds would be allocated to each eligible recipient agency in the
lesser amount of $0.05 per pound or $0.05 per dollar value of bonus
TEFAP commodities. With this modest increase in funding, the States and
their food assistance agencies will be able to accept more food
distributions from the USDA through TEFAP, benefitting the many low-
income recipients who rely on the program for emergency food and
nutrition assistance.
I urge all of my colleagues to join Senator Snowe and me in ensuring
that the States and food assistance agencies can accept the available
excess commodity foods the USDA provides under the Emergency Assistance
Food Program. Food assistance agencies are in dire need of funds, food,
and supplies and we owe it to them to ensure that they can take full
advantage of every opportunity to serve those in our nation who are in
desperate need.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2726
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 ``Bonus TEFAP Assistance Act
of 2008''.
SEC. 2. ASSISTANCE FOR COSTS OF DISTRIBUTING BONUS
COMMODITIES.
(a) Purposes.--The purposes of this section are--
(1) to encourage States and food assistance agencies to
accept commodities acquired by the Secretary of Agriculture
for farm support and surplus removal activities; and
(2) to offset the costs of the States and food assistance
agencies for the intrastate transportation, storage, and
distribution of the commodities.
(b) Costs of Distributing Bonus Commodities.--Section 202
of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7502)
is amended by inserting after subsection (a) the following:
``(b) Costs of Distributing Bonus Commodities.--
``(1) In general.--The Secretary shall use funds made
available under section 32 of the Act of August 24, 1935 (7
U.S.C. 612c), to provide funding described in paragraph (2)
to eligible recipient agencies to offset the costs of the
agencies for intrastate transportation, storage, and
distribution of commodities described in subsection (a).
``(2) Funding.--The Secretary shall provide funding
described in paragraph (1) to an eligible recipient agency at
a rate equal to the lower of $0.05 per pound or $0.05 per
dollar value of commodities described in subsection (a) that
are made available under this Act to, and accepted by, the
eligible recipient agency.''.
______
By Mr. CORNYN:
S. 2729. A bill to amend title XVIII of the Social Security Act to
modify Medicare physician reimbursement policies to ensure a future
physician workforce, and for other purposes; to the Committee on
Finance.
Mr. CORNYN. Mr. President, you don't have to be an expert in health
care policy to know our health care system is in need of reform. Today,
we spend over $2 trillion on health care, almost $7,500 per person. In
10 years, national health care expenditures are expected to reach $4.3
trillion, or $13,000 per person, which would comprise 19.5 percent of
our gross domestic product. Clearly, this rate of increase is
unsustainable. We must work together to develop creative solutions that
will change the way we deliver health care. The goal should be to allow
health care providers to develop treatment plans based on what is in
the best interest of the patient. But the current system under which we
pay physicians neither puts patients first nor reduces costs.
A decade ago, instead of creating a mechanism that changed the way
physicians deliver care, Congress attempted to curb rising health care
costs through an arbitrary annual expenditure cap on physician
payments. And what has the result been? Physicians have seen their
reimbursements lag far behind their costs, in Texas and nationally--a
15-percent gap. In order to recoup lost revenue, physicians often
increased the number of patients they were seeing per day, meaning they
were spending less and less time with their patients, lowering the
quality of care delivered. Moreover, we are starting to see problems
with beneficiary access. At an increasing rate, beneficiaries across
the country are reporting difficulties in scheduling appointments with
their physicians.
But declining reimbursements are also influencing the development of
future generations of physicians--especially in primary care--as there
is a disincentive to enter the profession or an incentive to forgo
primary care for more lucrative specialties. This is especially
alarming, as the Medicare population grows and many physicians will be
retiring. For example, my State of Texas already has a below-average
physician-to-population ratio, while 39 percent of practicing
physicians are already over 50.
There are over 30 health care reform plans floating around inside and
outside of Congress. Few of these plans address the fundamental
question: What good is coverage without access to that coverage?
If we are serious about changing our health care system, we need to
start with changing the way we pay physicians--that would send a strong
message not only about the need for better quality care but also the
need to ensure a future generation of American physicians.
I am pleased to introduce the Ensuring the Future Physician Workforce
Act of 2008. This bill will provide positive reimbursement updates for
providers; eliminate the ineffectual expenditure cap; increase
incentives for physician data reporting; facilitate adoption of Health
Information Technology, HIT, by addressing cost and
legislative barriers; educate and empower physicians and beneficiaries
in relation to Medicare spending and benefits usage; and study ways to
realign the way Medicare pays for health care.
Every few years, Congress goes through the same rituals of trying to
fix the physician reimbursement mechanism. First, CMS tells us the
expenditure cap requires Medicare physician reimbursements to be cut by
a certain percent. Next, Congress struggles to find a way to prevent
this cut, knowing how harmful it would be. Yet delaying this cut is
extremely expensive. Congress then swears that this is the last time
they will go through this process and that it must come up with a
comprehensive fix. Ultimately, Congress never seems able to fix the
problem. This bill stops the charade, resets the baseline for the next
year and a half, and then eliminates the expenditure cap thereafter.
Rather than pretending like we are going to adhere to an arbitrary cap
of $80, for example, only to spend more later, this bill puts up front
the true cost that we are really going to spend $100 or $101. The
effect on spending is the same, but physicians and beneficiaries have
certainty.
If Congress fails to act, Texas physicians will lose $860 million
between July 2008 and December 2009, which is a cut of $18,000 to each
Texas physician. That figure balloons to $16.5 billion by 2016 due to
nearly a decade of scheduled cuts.
Two widely identified ways of moving toward lower costs and better
quality stem from the collection of health care data and the
implementation of health information technology.
[[Page S1707]]
First, increasing incentives for the reporting of data will improve
our ability to assess how we deliver care and the level of that care.
In this bill we go beyond general reporting and focus on the most
expensive diseases. The director of the Congressional Budget Office,
Peter Orszag, likes to ask the paradoxical question: ``How can the best
medical care in the world cost twice as much as the best medical care
in the world?'' It does because we deliver care in vastly different
ways and at vastly different costs. By focusing our data collection
efforts, we will better understand how these differences occur.
Second, there are few who would argue with the notion that
implementation of HIT is beneficial from a cost and quality
perspective; HIT provides transparency, efficiency, portability,
safety, and reductions in duplicative and wasteful procedures. However,
various cost and legislative barriers have inhibited widespread
adoption. There is a large cost associated with implementing HIT
because of the cost of hardware, software, and time needed to train
staff. Additionally, there is a disincentive to invest in HIT because
the Department of Health and Human Services has yet to finalize its
standards. Providers are stuck in neutral.
Under the current regulatory environment, doctors have limited
ability to accept hardware, software, or help in training from
hospitals. Not only does this unfairly harm patients in these
practices, it negatively impacts community health. This bill provides a
safe harbor to that regulation but maintains the spirit of the law by
allowing hospitals to help physicians in their implementation of HIT--
either in the purchasing of hardware or software or in training--as
long as these hospitals do not restrict the physician's
interoperability, clinical practice, or referral system for their own
financial benefit. This bill provides the incentive to voluntarily
implement HIT and commonsense regulations that move communities into
the 21st century. Once beneficiaries begin to see the benefits HIT will
have on the quality of their care and in their wallets, providers will
not be able to ignore the demand.
Finally, this bill would provide comparative reports to physicians on
their billings and to beneficiaries on their usage of services.
Physicians want to do the right thing for their patients, but we need
to ensure that they have the tools necessary to appropriately deliver
that care. When physicians look at these reports and see how they
compare to other providers in their area or across the Nation, they
will take that report seriously and evaluate why their practices
differ. Similarly, beneficiaries will have a tool to evaluate their
level of care and a tool to engage the physician-patient relationship.
Mr. President, it is no secret that the path Medicare is on is
unsustainable. So far, our only recourse has been to prolong the
inevitable collapse, rather than reforming the doomed system. This bill
is a small step toward righting the Medicare ship, and with it,
America's health care system as a whole. It is time we move forward in
health care and help create a system that provides the best care at the
best prices. I hope my colleagues will join me in supporting this bill
and ensuring a better future for American health care.
______
By Mr. DOMENICI (for himself, Ms. Landrieu, Ms. Murkowski, Mr.
Martinez, Mr. Bunning, Mr. Craig, Mr. Alexander, and Mrs.
Dole):
S. 2730. A bill to facilitate the participation of private capital
and skills in the strategic, economic, and environmental development of
a diverse portfolio of clean energy and energy efficiency technologies
within the United States, to facilitate the commercialization and
market penetration of the technologies, and for other purposes; to the
Committee on Energy and Natural Resources.
Mr. DOMENICI. Mr. President, a report by the Energy Information
Administration released this week confirms that we have made real,
measurable progress in our efforts to reduce our dependence upon
foreign oil. The best estimating group in the world, the Energy
Information Administration of America, made this determination. I know
the occupant of the chair will be interested, because what we have done
in the past 3 years with the passage of three major pieces of energy
legislation is, for the first time in modern history, we have reduced
the amount of consumption of crude oil from overseas to America by
Americans here at home. In other words, during the next 30 years, we
will finally get to the point where, instead of that importation going
up, it will begin to reverse itself and start coming down.
Now, the bad news for Americans is you can't do that overnight, but
we have done it with the passage of the CAFE standards, meaning smaller
cars in the future for everyone, and with the passage of two or three
other big bills, we have made a lasting impact on how much we use of
this dread imported product that we call crude oil.
Over the last several years, as I indicated, Congress has passed
three major pieces of legislation: the Energy Policy Act of 2005, the
Gulf of Mexico Energy Security Act, and the Energy Independence and
Security Act. We put these together, and the estimates are that as a
result of this action I just spoke about, more than 2 million barrels
of oil per day will be saved by America by 2030. In addition, our
action will lead to--and get this--5.3 billion fewer metric tons of
energy-related carbon dioxide emissions by that time--the equivalent of
71,500 megawatt coal-burning electric plants. Imagine that. By reducing
that amount of oil consumed, we will reduce the amount of carbon
dioxide by 5.3 billion fewer metric tons used.
Nevertheless, our work is not nearly done. I have been encouraged by
the growth of clean energy technologies, but I have come to believe
that in the long run, we will fall far short of the amount of financial
resources necessary to move these projects along at a fast enough pace.
Consider that nearly half of our current electric generation fleet is
over 30 years old. Nearly a third of our overall generation comes from
coal-fired plants, the majority of which are not equipped with emission
control technology. Yet investor-owner utilities are not large enough
to carry several multibillion dollar projects, and competitive
electricity markets don't have an effective mechanism to encourage
investment in larger, expensive new capacity. I come to the floor to
propose at least a partial solution to this challenge.
Today I am introducing legislation to establish a clean energy
investment bank. This bank will be a government corporation, modeled
after the Export-Import Bank, designed to promote investment in
domestic energy projects. I am pleased to have a number of cosponsors,
including Senators Landrieu, Murkowski, Martinez, Bunning, Craig,
Alexander, and Dole. I haven't worked very hard because I haven't had
time, but I think I can get many more Senators to be cosponsors as
well.
According to some analysis, over $350 billion will be needed over the
next 15 years to meet our increased demands for energy. Not only do we
face the challenge of needing to get more power on line, we also are
trying to do it in a way that results in less pollution. By investing
in clean energy technology, we will reap enormous benefits when it
comes to energy, economic, environmental, and national security.
Investors have shown a willingness to support clean energy
technology. A United Nations report recently revealed that investment
in sustainable energy has nearly doubled since 2005. Additionally,
private sector research and development has risen to over $16 billion.
Yet the growth we have seen primarily comes from equity investment and
venture capital, not long-term debt financing.
The clean energy industry faces unique challenges. Unlike traditional
fossil fuel energy projects, which are able to more easily secure long-
term debt financing, clean energy markets have a greater level of risk
both economically and technically. That is why the certainty provided
by Federal Government support would be beneficial. Our goal moving
forward should be greater increases for all types of clean energy
generation projects through secure financing.
Right now, we are lacking an institution able to undertake this kind
of activity and fill this gap. The clean energy investment bank that
will be created by the legislation which I introduce today has a real
chance of filling that gap.
The bank will engage in investment activities to encourage long term
debt
[[Page S1708]]
financing of clean energy projects. It will take responsibility for
management of the Department of Energy's title 17 loan guarantee
program, and have the authority to offer loans, insurance products, and
take positions in commercially viable projects.
The clean energy investment bank will be a governmental corporation,
with a bipartisan board of directors that will have significant
autonomy in choosing the projects they believe are most worthy.
In this legislation, we do not seek to tell the bank exactly which
specific types of projects to support. Our requirement is that the
projects provide clean energy and that the bank considers a reasonable
diversity of projects, technologies, and energy sectors. We give
flexibility to the bank's board of directors and management so that
they can provide support for the latest technologies, some of which may
not even be under consideration right now.
The sole mission of the clean energy investment bank will be to
advance the deployment of clean energy technologies. The bank will be
staffed with investment professionals who will make informed decisions
on loans, loan guarantees, and other investments.
Initially, we anticipate that the clean energy investment bank will
be given a similar level of financial support as the Export-Import
Bank. The Export-Import Bank assists financing the export of U.S. goods
and services to international markets. By enabling companies in our
country to turn exports into sales overseas, the bank helps create jobs
and ensures a level playing field.
Export-Import provides a worthy and useful service to our economy and
to growing economies overseas. Last year, Congress provided $68 million
to the bank to subsidize its costs, and another $78 million for
administrative expenses. But we must ask ourselves: shouldn't domestic
energy diversification receive at least as much support as U.S.
companies investing overseas?
The bank will be financed in part through the appropriations process,
but in greater measure through a revolving fund. The goal would be for
the bank to be self-funding through its investment of activity as soon
as possible.
Congress will soon be embarking on a debate about climate change. It
is simply a reality that much of that discussion will largely fall on
partisan lines. Senators have diverse views about global climate change
and the proposed solutions to handle it.
The clean energy investment bank, however, is something that we all
can support. It gives us a chance to make real progress in a bipartisan
way on our shared goals of increasing energy production and reducing
greenhouse gas emissions. Despite the odds, we have demonstrated that
when we work together to find common ground on energy, we can succeed
and pass legislation that will help make America stronger. In times of
economic uncertainty, we need pro-growth strategies that incentivize
large private investment, not complex regulatory structures that
increase the cost of energy. The clean energy investment bank is such a
pro-growth proposal that stands tall on its own.
I look forward to working with my colleagues on both sides of the
aisle on this bill, and I hope the Senate will adopt it. We have made
great strides in recent years to diversify our energy supply, but we
should not rest on our laurels. This bill will help us keep up the
momentum and shift America away from foreign oil and toward cleaner,
home-grown technologies.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2730
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 Investment Bank
Act of 2008''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Bank.--The term ``Bank'' means the Clean Energy
Investment Bank of the United States established by section
3(a).
(2) Board.--The term ``Board'' means the Board of Directors
of the Bank established under section 4(b).
(3) Clean energy investment bank fund.--The term ``Clean
Energy Investment Bank Fund'' means the revolving fund
account established under section 6(b).
(4) Commercial technology.--The term ``commercial
technology'' means a technology in general use in the
commercial marketplace.
(5) Eligible project.--The term ``eligible project'' means
a project in a State related to the production or use of
energy that uses a commercial technology that the Bank
determines avoids, reduces, or sequesters 1 or more air
pollutants or anthropogenic emissions of greenhouse gases
more effectively than other technology options available to
the project developer.
(6) Investment.--The term ``investment'' includes any
contribution or commitment to an eligible project in the form
of--
(A) loans or loan guarantees;
(B) the purchase of equity shares in the project;
(C) participation in royalties, earnings, or profits; or
(D) furnishing commodities, services or other rights under
a lease or other contract.
(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. 3. ESTABLISHMENT OF BANK.
(a) Establishment.--
(1) In general.--There is established in the Executive
branch a bank to be known as the ``Clean Energy Investment
Bank of the United States,'' which shall be an agency of the
United States.
(2) Government corporation.--The Bank shall be--
(A) a Government corporation (as defined in section 103 of
title 5, United States Code); and
(B) subject to chapter 91 of title 31, United States Code,
except as expressly provided in this Act.
(b) Authority.--
(1) In general.--The Bank shall assist in the financing,
and facilitate the commercial use, of clean energy and energy
efficient technologies within the United States.
(2) Assistance for eligible projects.--The Bank may make
investments--
(A) in eligible projects on such terms and conditions as
the Bank considers appropriate in accordance with this Act;
or
(B) under title XVII of the Energy Policy Act of 2005 (42
U.S.C. 16511 et seq.), and any of the regulations promulgated
under that Act, as the Bank considers appropriate.
(3) Repayment.--No loan or loan guarantee shall be made
under this subsection unless the Bank determines that there
is a reasonable prospect of repayment of the principal and
interest by the borrower.
(4) Project diversity.--The Bank shall ensure that a
reasonable diversity of projects, technologies, and energy
sectors receive assistance under this subsection.
(c) Powers.--In carrying out this Act, the Bank may--
(1) conduct a general banking business (other than currency
circulation), including--
(A) borrowing and lending money;
(B) issuing letters of credit;
(C) accepting bills and drafts drawn upon the Bank;
(D) purchasing, discounting, rediscounting, selling, and
negotiating, with or without endorsement or guaranty, and
guaranteeing, notes, drafts, checks, bills of exchange,
acceptances (including bankers' acceptances), cable
transfers, and other evidences of indebtedness;
(E) issuing guarantees, insurance, coinsurance, and
reinsurance;
(F) purchasing and selling securities; and
(G) receiving deposits;
(2) make investments in eligible projects on a self-
sustaining basis, taking into account the financing
operations of the Bank and the economic and financial
soundness of projects;
(3) use private credit, investment institutions, and the
guarantee authority of the Bank as the principal means of
mobilizing capital investment funds;
(4) broaden private participation and revolve the funds of
the Bank through selling the direct investments of the Bank
to private investors whenever the Bank can appropriately do
so on satisfactory terms;
(5) conduct the insurance operations of the Bank with due
regard to principles of risk management, including efforts to
share the insurance risks of the Bank;
(6) foster private initiative and competition and
discourage monopolistic practices; and
(7) advise and assist interested agencies of the United
States and other organizations, public and private and
national and international, with respect to projects and
programs relating to the development of private enterprise in
the market sector in accordance with this Act.
SEC. 4. ORGANIZATION AND MANAGEMENT.
(a) Structure of Bank.--The Bank shall have--
(1) a Board of Directors;
(2) a President;
(3) an Executive Vice President; and
(4) such other officers and staff as the Board may
determine.
(b) Board of Directors.--
(1) Establishment.--There is established a Board of
Directors of the Bank to exercise all powers of the Bank.
(2) Composition.--
[[Page S1709]]
(A) In general.--The Board shall be composed of 7 members,
of whom--
(i) 5 members shall be independent directors appointed by
the President of the United States, by and with the advice
and consent of the Senate (referred to in this subsection as
``independent directors''; and
(ii) 2 members shall be the President of the Bank and the
Executive Vice President of the Bank, appointed by the
independent directors.
(B) Federal employment.--An independent director shall not
be an officer or employee of the Federal Government at the
time of appointment.
(C) Political party.--Not more than 3 of the independent
directors shall be members of the same political party.
(3) Term; vacancies.--
(A) Term.--
(i) In general.--Subject to clause (ii), the independent
directors shall be appointed for a term of 5 years and may be
reappointed.
(ii) Staggered terms.--The terms of not more than 2
independent directors shall expire in any year.
(B) Vacancies.--A vacancy on the Board--
(i) shall not affect the powers of the Board; and
(ii) shall be filled in the same manner as the original
appointment was made.
(4) Meetings.--
(A) Initial meeting.--Not later than 30 days after the date
on which all members of the Board have been appointed, the
Board shall hold the initial meeting of the Board.
(B) Meetings.--The Board shall meet at the call of the
Chairman of the Board.
(C) Quorum.--Four members of the Board shall constitute a
quorum, but a lesser number of members may hold hearings.
(5) Chairman and vice chairman.--
(A) In general.--The Board shall select a Chairman and Vice
Chairman from among the members of the Board.
(B) Eligibility.--The Chairman of the Board shall not be an
Executive Director of the Board.
(6) Compensation of members.--An independent director shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties
of the Board.
(7) Travel expenses.--An independent director shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the Board.
(c) President of the Bank.--
(1) Appointment.--The President of the Bank shall be
appointed by the Board.
(2) Duties.--The President of the Bank shall--
(A) be the Chief Executive Officer of the Bank;
(B) be responsible for the operations and management of the
Bank, subject to bylaws and policies established by the
Board; and
(C) serve as an Executive Director on the Board.
(d) Executive Vice President.--
(1) Appointment.--The Executive Vice President of the Bank
shall be appointed by the Board.
(2) Duties.--The Executive Vice President of the Bank
shall--
(A) serve as the President of the Bank during the absence
or disability, or in the event of a vacancy in the office, of
the President of the Bank;
(B) at other times, perform such functions as the President
of the Bank may from time to time prescribe; and
(C) serve as an Executive Director on the Board.
(e) Staff.--
(1) In general.--The Board may--
(A) appoint and terminate such officers, attorneys,
employees, and agents as are necessary to carry out this Act;
and
(B) vest the personnel with such powers and duties as the
Board may determine.
(2) Civil service laws.--Persons employed by the Bank may
be appointed, compensated, or removed without regard to civil
service laws (including regulations).
(3) Reappointment.--Under such regulations as the President
of the United States may promulgate, an officer or employee
of the Federal Government who is appointed to a position
under this subsection may be entitled, on removal from the
position, except for cause, to reinstatement to the position
occupied at the time of appointment or to a position of
comparable grade and salary.
(4) Additional positions.--Positions authorized under this
subsection shall be in addition to other positions otherwise
authorized by law, including positions authorized by section
5108 of title 5, United States Code.
SEC. 5. FINANCING, GUARANTIES, INSURANCE, CREDIT SUPPORT, AND
OTHER PROGRAMS.
(a) Intergovernmental Agreements.--Subject to the other
provisions of this section, the Bank may enter into
arrangements with State and local governments (including
agencies, instrumentalities, or political subdivisions of
State and local governments) for sharing liabilities assumed
by providing financial assistance for eligible projects under
this Act.
(b) Insurance.--
(1) In general.--The Bank may issue insurance, on such
terms and conditions as the Bank may determine, to ensure
protection in whole or in part against any or all of the
risks with respect to eligible projects that the Bank has
approved.
(2) Duplication of assistance.--The Bank shall not offer
any insurance products under this subsection that duplicate
or augment any other similar Federal assistance.
(c) Guarantees.--
(1) In general.--The Bank may issue guarantees of loans and
other investments made by investors assuring against loss in
eligible projects on such terms and conditions as the Bank
may determine.
(2) Budgetary treatment.--Any guarantee issued under this
subsection shall, for budgetary purposes, be considered a
loan guarantee (as defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)).
(d) Loans and Credit Assistance.--
(1) In general.--The Bank may make loans, provide letters
of credit, issue other credit enhancements, or provide other
financing for eligible projects on such terms and conditions
as the Bank may determine.
(2) Budgetary treatment.--Any financial instrument issued
under this subsection shall, for budgetary purposes, be
considered a direct loan (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
(e) Eligible Project Development Investment
Encouragement.--The Bank may provide financial assistance
under this section for development activities for eligible
projects, under such terms and conditions as the Bank may
determine, if the Board determines that the assistance is
necessary to encourage private investment or accelerate
project development.
(f) Other Insurance Functions.--The Bank may--
(1) using agreements and contracts that are consistent with
this Act--
(A) make and carry out contracts of insurance or agreements
to associate or share risks with insurance companies,
financial institutions, any other person or group of persons;
and
(B) employ entities described in subparagraph (A), if
appropriate, as the agent of the Bank in--
(i) the issuance and servicing of insurance;
(ii) the adjustment of claims;
(iii) the exercise of subrogation rights;
(iv) the ceding and acceptance of reinsurance; and
(v) any other matter incident to an insurance business; and
(2) enter into pooling or other risk-sharing agreements
with other governmental insurance or financing agencies or
groups of those agencies.
(g) Equity Finance Program.--
(1) In general.--Subject to the other provisions of this
subsection, the Bank may establish an equity finance program
under which the Bank may, in accordance with this subsection,
purchase, invest in, or otherwise acquire equity or quasi-
equity securities of any firm or entity, on such terms and
conditions as the Bank may determine, for the purpose of
providing capital for any project that is consistent with
this Act.
(2) Total amount of equity investments.--
(A) Total amount of equity investment under equity finance
program.--
(i) In general.--Except as provided in clause (ii), the
total amount of the equity investment of the Bank with
respect to any project under this subsection shall not exceed
30 percent of the aggregate amount of all equity investment
made with respect to the project at the time at which the
equity investment of the Bank is made.
(ii) Defaults.--Clause (i) shall not apply to a security
acquired through the enforcement of any lien, pledge, or
contractual arrangement as a result of a default by any party
under any agreement relating to the terms of the investment
of the Bank.
(B) Total amount of equity investment under multiple
programs.--
(i) In general.--The equity investment of the Bank under
this subsection with respect to any project, when added to
any other investments made or guaranteed by the Bank under
subsection (c) or (d) with respect to the project, shall not
cause the aggregate amount of all the investments to exceed,
at the time any such investment is made or guaranteed by the
Bank, 75 percent of the total investment committed to the
project, as determined by the Bank.
(ii) Conclusive determination.--The determination of the
Bank under this subparagraph shall be conclusive for purposes
of the authority of the Bank to make or guarantee any
investment described in clause (i).
(3) Additional criteria.--In making investment decisions
under this subsection, the Bank shall consider the extent to
which the equity investment of the Bank will assist in
obtaining the financing required for the project.
(4) Implementation.--
(A) In general.--The Bank may create such legal vehicles as
are necessary for implementation of this subsection.
(B) Non-federal borrowers.--A borrower participating in a
legal vehicle created under this paragraph shall be
considered a non-Federal borrower for purposes of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
(C) Securities.--Income and proceeds of investments made
under this subsection may be used to purchase equity or
quasi-equity securities in accordance with this section.
[[Page S1710]]
(h) Relationship to Federal Credit Reform Act of 1990.--
(1) In general.--Any liability assumed by the Bank under
subsections (c) and (d) shall be discharged pursuant to the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
(2) Specific appropriation or contribution.--
(A) In general.--No loan guaranteed under subsection (c) or
direct loan under subsection (d) shall be made unless--
(i) an appropriation for the cost has been made; or
(ii) the Bank has received from the borrower a payment in
full for the cost of the obligation.
(B) Budgetary treatment.--Section 504(b) of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not apply
to a loan or loan guarantee made in accordance with
subparagraph (A)(ii).
(3) Apportionment.--Receipts, proceeds, and recoveries
realized by the Bank and the obligations and expenditures
made by the Bank pursuant to this subsection shall be exempt
from apportionment under subchapter II of chapter 15 of title
31, United States Code.
SEC. 6. ISSUING AUTHORITY; DIRECT INVESTMENT AUTHORITY AND
RESERVES.
(a) Maximum Contingent Liability.--The maximum contingent
liability outstanding at any time pursuant to actions taken
by the Bank under section 5 shall not exceed a total amount
of $100,000,000,000.
(b) Clean Energy Investment Bank Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a revolving fund, to be known as the
``Clean Energy Investment Bank Fund'' (referred to in this
section as the ``Fund'').
(2) Use.--The Clean Energy Investment Bank Fund shall be
available for discharge of liabilities under section 5 (other
than subsections (c) and (d) of section 5) until the earlier
of--
(A) the date on which all liabilities of the Bank have been
discharged or expire; or
(B) the date on which all amounts in the Fund have been
expended in accordance with this section.
(3) Apportionment.--Receipts, proceeds, and recoveries
realized by the Bank and the obligations and expenditures
made by the Bank pursuant to this subsection shall be exempt
from apportionment under subchapter II of chapter 15 of title
31, United States Code.
(c) Payments of Liabilities.--Any payment made to discharge
liabilities arising from agreements under section 5 (other
than subsections (c) and (d) of section 5) shall be paid out
of the Clean Energy Investment Bank Fund.
(d) Supplemental Borrowing Authority.--
(1) In general.--In order to maintain sufficient liquidity
in the revolving loan fund, the Bank may issue from time to
time for purchase by the Secretary of the Treasury notes,
debentures, bonds, or other obligations.
(2) Maximum total amount.--The total amount of obligations
issued under paragraph (1) that is outstanding at any time
shall not exceed $2,000,000,000.
(3) Repayment.--Any obligation issued under paragraph (1)
shall be repaid to the Treasury not later than 1 year after
the date of issue of the obligation.
(4) Interest rate.--Any obligation issued under paragraph
(1) shall bear interest at a rate determined by the Secretary
of the Treasury, taking into account the current average
market yield on outstanding marketable obligations of the
United States of comparable maturities during the month
preceding the issuance of any obligation authorized by this
subsection.
(5) Purchase of obligations.--
(A) In general.--The Secretary of the Treasury--
(i) shall purchase any obligation of the Bank issued under
this subsection; and
(ii) for the purchase, may use as a public debt transaction
the proceeds of the sale of any securities issued under
chapter 31 of title 31, United States Code.
(B) Purposes.--The purpose for which securities may be
issued under chapter 31 of title 31, United States Code,
shall include any purchase under this paragraph.
SEC. 7. ADMINISTRATION.
(a) Protection of Interest of Bank.--The Bank shall ensure
that suitable arrangements exist for protecting the interest
of the Bank in connection with any agreement issued under
this Act.
(b) Full Faith and Credit.--
(1) Obligation.--A loan guarantee issued by the Bank under
section 5(c) shall constitute an obligation, in accordance
with the terms of the guarantee, of the United States.
(2) Payment.--The full faith and credit of the United
States is pledged for the full payment and performance of the
obligation.
(c) Fees.--
(1) In general.--The Bank shall establish and collect fees
for services under this Act in amounts to be determined by
the Bank.
(2) Availability of fees.--Except as provided in paragraph
(3), fees collected by the Bank under paragraph (1)
(including fees collected for administrative expenses in
carrying out subsections (c) and (d) of section 5) may be
retained by the Bank and may remain available to the Bank,
without further appropriation or fiscal year limitation, for
payment of administrative expenses incurred in carrying out
this Act.
(3) Fee transfer authority.--Fees collected by the Bank for
the cost (as defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of a loan or loan
guarantee made under subsection (c) or (d) of section 5 shall
be transferred by the Bank to the respective credit program
accounts.
SEC. 8. GENERAL PROVISIONS AND POWERS.
(a) Principal Office.--The Bank shall--
(1) maintain its principal office in the District of
Columbia; and
(2) be considered, for purposes of venue in civil actions,
to be a resident of the District of Columbia.
(b) Transfer of Functions and Authority.--
(1) In general.--On appointment of a majority of the Board
by the President, all of the functions and authority of the
Secretary of Energy under predecessor programs and
authorities similar to those provided under subsections (c)
and (d) of section 5, including those under title XVII of the
Energy Policy Act of 2005 (42 U. S.C. 16511 et seq.), shall
be transferred to the Board
(2) Continuation prior to transfer.--Until the transfer,
the Secretary of Energy shall continue to administer such
programs and activities, including programs and authorities
under title XVII of the Energy Policy Act of 2005 (42 U.S.C.
16511 et seq.).
(3) Effect on existing rights and obligations.--The
transfer of functions and authority under this subsection
shall not affect the rights and obligations of any party that
arise under a predecessor program or authority prior to the
transfer under this subsection.
(c) Audits.--
(1) In general.--Except as otherwise provided in this Act,
the Bank shall be subject to the applicable provisions of
chapter 91 of title 31, United States Code.
(2) Periodic audits by independent certified public
accountants.--
(A) In general.--Except as provided in paragraph (3), an
independent certified public accountant shall perform a
financial and compliance audit of the financial statements of
the Bank at least once every 3 years, in accordance with
generally accepted Government auditing standards for a
financial and compliance audit, as issued by the Comptroller
General of the United States.
(B) Report to board.--The independent certified public
accountant shall report the results of the audit to the
Board.
(C) Generally accepted accounting principles.--The
financial statements of the Bank shall be presented in
accordance with generally accepted accounting principles.
(D) Reports.--
(i) In general.--The financial statements and the report of
the accountant shall be included in a report that--
(I) contains, to the extent applicable, the information
identified in section 9106 of title 31, United States Code;
and
(II) the Bank shall submit to Congress not later than 210
days after the end of the last fiscal year covered by the
audit.
(ii) Review.--The Comptroller General of the United States
may review the audit conducted by the accountant and the
report to Congress in such manner and at such times as the
Comptroller General considers necessary.
(3) Alternative audits by comptroller general of the united
states.--
(A) In general.--In lieu of the financial and compliance
audit required by paragraph (2), the Comptroller General of
the United States shall, if the Comptroller General considers
it necessary, audit the financial statements of the Bank in
the manner provided under paragraph (2).
(B) Reimbursement.--The Bank shall reimburse the
Comptroller General of the United States for the full cost of
any audit conducted under this paragraph.
(4) Availability of records.--All books, accounts,
financial records, reports, files, work papers, and property
belonging to or in use by the Bank and the accountant who
conducts the audit under paragraph (2), that are necessary
for purposes of this subsection, shall be made available to
the Comptroller General of the United States.
SEC. 9. REPORTS TO CONGRESS.
As soon as practicable after the end of each fiscal year,
the Bank shall submit to Congress a complete and detailed
report describing the operations of the Bank during the
fiscal year.
SEC. 10. MODIFICATION TO LOAN GUARANTEE PROGRAM.
(a) Definition of Commercial Technology.--Section 1701(1)
of the Energy Policy Act of 2005 (42 U.S.C. 16511(1)) is
amended by striking subparagraph (B) and inserting the
following:
``(B) Exclusion.--The term `commercial technology' does not
include a technology if the sole use of the technology is in
connection with--
``(i) a demonstration plant; or
``(ii) a project for which the Secretary approved a loan
guarantee.''.
(b) Specific Appropriation or Contribution.--Section 1702
of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended
by striking subsection (b) and inserting the following:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) an appropriation for the cost has been made; or
``(B) the Secretary has received from the borrower a
payment in full for the cost of the obligation and deposited
the payment into the Treasury.
[[Page S1711]]
``(2) Limitation.--The source of payments received from a
borrower under paragraph (1)(B) shall not be a loan or other
debt obligation that is made or guaranteed by the Federal
Government.
``(3) Relation to other laws.--Section 504(b) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall
not apply to a loan or loan guarantee made in accordance with
paragraph (1)(B).''.
(c) Amount.--Section 1702 of the Energy Policy Act of 2005
(42 U.S.C. 16512) is amended by striking subsection (c) and
inserting the following:
``(c) Amount.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall guarantee up to 100 percent of the principal and
interest due on 1 or more loans for a facility that are the
subject of the guarantee.
``(2) Limitation.--The total amount of loans guaranteed for
a facility by the Secretary shall not exceed 80 percent of
the total cost of the facility, as estimated at the time at
which the guarantee is issued.''.
(d) Subrogation.--Section 1702(g)(2) of the Energy Policy
Act of 2005 (42 U.S.C. 16512(g)(2)) is amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as subparagraph (B).
(e) Fees.--Section 1702(h) of the Energy Policy Act of 2005
(42 U.S.C. 16512(h)) is amended by striking paragraph (2) and
inserting the following:
``(2) Availability.--Fees collected under this subsection
shall--
``(A) be deposited by the Secretary into a special fund in
the Treasury to be known as the `Incentives For Innovative
Technologies Fund'; and
``(B) remain available to the Secretary for expenditure,
without further appropriation or fiscal year limitation, for
administrative expenses incurred in carrying out this
title.''.
SEC. 11. INTEGRATION OF LOAN GUARANTEE PROGRAMS.
(a) Definition of Bank.--Section 1701 of the Energy Policy
Act of 2005 (42 U.S.C. 16511) is amended--
(1) by redesignating paragraphs (1) through (5) as
paragraphs (2) through (6), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Bank.--The term `Bank' means the Clean Energy
Investment Bank of the United States established by section
3(a) of the Clean Energy Investment Bank Act of 2008.''.
(b) Administration.--
(1) In general.--Title XVII of the Energy Policy Act of
2005 (42 U.S.C. 16511 et seq.) is amended by striking
``Secretary'' each place it appears (other than the last
place it appears in section 1702(a)) and inserting ``Board''.
(2) Conforming amendments.--Section 1702(g) of the Energy
Policy Act of 2005 (42 U.S.C. 16512(g)) is amended--
(A) in the heading for paragraph (1), by striking
``Secretary'' and inserting ``Bank''; and
(B) in the heading for paragraph (3), by striking
``Secretary'' and inserting ``Bank''.
(c) Application.--The amendments made by this section are
effective on the date the President transfers to the Bank
under section 9(b)(1) the authority to carry out title XVII
of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.).
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Subject to subsection (b), there are
authorized to be appropriated to the Bank, to remain
available until expended, such sums as are necessary to--
(1) replenish or increase the Clean Energy Investment Bank
Fund; or
(2) discharge obligations of the Bank purchased by the
Secretary of the Treasury under this Act.
(b) Minimum Levels in the Clean Energy Investment Bank
Fund.--No appropriations shall be made to augment the Clean
Energy Investment Bank Fund unless the balance in the Clean
Energy Investment Bank Fund is projected to be less than
$50,000,000 during the fiscal year for which an appropriation
is made.
____________________