[Congressional Record Volume 154, Number 38 (Thursday, March 6, 2008)]
[Senate]
[Pages S1707-S1711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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.

                          ____________________