[Congressional Record Volume 155, Number 65 (Thursday, April 30, 2009)]
[Senate]
[Pages S4971-S4976]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Ms. Murkowski, Mr. Dorgan, Mr. 
        Voinovich, Ms. Stabenow, Mr. Lugar, and Mrs. Shaheen):
  S. 949. A bill to improve the loan guarantee program of the 
Department of Energy under title XVII of the Energy Policy Act of 2005, 
to provide additional options for deploying energy technologies, and 
for other purposes; to the Committee on Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I am pleased today to introduce the 21st 
Century Energy Technology Deployment Act with my colleagues Senators 
Murkowski, Dorgan, Voinovich, Stabenow, Lugar, and Shaheen. I would 
particularly like to thank Senator Murkowski for her thoughtful input.
  As I have said previously on this floor, I am a strong proponent of 
pricing carbon dioxide emissions in order to properly align the 
incentives of the marketplace to avoid the very real costs of 
catastrophic climate change. I am happy to see that discussion has 
begun both here and in the other body. However, we should be careful 
not to think that when we do price in the effects of carbon emissions, 
which I believe will happen, then we have solved the entire problem.
  As the current economic downturn and credit climate make clear, even 
when we do get the incentives straight, that is no guarantee that the 
means will be available to developers and individuals to make the smart 
investments they want to make. That is where this bill comes in; to 
fill in critical financing gap and bring down the costs of the 
investments that will not only increase our climate and energy 
security, but help put the U.S. in a leadership position in these 
technologies that I believe will be in great demand in the coming 
years.
  I hope that the Energy Committee will agree to include this provision 
in the comprehensive energy legislation the Committee is currently 
working on. I will have more to say about the measure as we get further 
along in that process.
  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. 949

       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 ``21st Century Energy 
     Technology Deployment Act''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to promote the domestic 
     development and deployment of clean energy technologies 
     required for the 21st century through the improvement of 
     existing programs and the establishment of a self-sustaining 
     Clean Energy Deployment Administration that will provide for 
     an attractive investment environment through partnership with 
     and support of the private capital market in order to promote 
     access to affordable financing for accelerated and widespread 
     deployment of--
       (1) clean energy technologies;
       (2) advanced or enabling energy infrastructure 
     technologies;
       (3) energy efficiency technologies in residential, 
     commercial, and industrial applications, including end-use 
     efficiency in buildings; and
       (4) manufacturing technologies for any of the technologies 
     or applications described in this section.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administration.--The term ``Administration'' means the 
     Clean Energy Deployment Administration established by section 
     6.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Administration.
       (3) Advisory council.--The term ``Advisory Council'' means 
     the Energy Technology Advisory Council of the Administration.
       (4) Breakthrough technology.--The term ``breakthrough 
     technology'' means a clean energy technology that--
       (A) presents a significant opportunity to advance the goals 
     developed under section 5, as assessed under the methodology 
     established by the Advisory Council; but
       (B) has generally not been considered a commercially ready 
     technology as a result of high perceived technology risk or 
     other similar factors.
       (5) Clean energy technology.--The term ``clean energy 
     technology'' means a technology related to the production, 
     use, transmission, storage, control, or conservation of 
     energy--
       (A) that will--
       (i) reduce the need for additional energy supplies by using 
     existing energy supplies with greater efficiency or by 
     transmitting, distributing, or transporting energy with 
     greater effectiveness through the infrastructure of the 
     United States;
       (ii) diversify the sources of energy supply of the United 
     States to strengthen energy security and to increase supplies 
     with a favorable balance of environmental effects if the 
     entire technology system is considered; or
       (iii) contribute to a stabilization of atmospheric 
     greenhouse gas concentrations thorough reduction, avoidance, 
     or sequestration of energy-related emissions; and
       (B) for which, as determined by the Administrator, 
     insufficient commercial lending is available to allow for 
     widespread deployment.
       (6) Cost.--The term ``cost'' has the meaning given the term 
     in section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a).
       (7) Direct loan.--The term ``direct loan'' has the meaning 
     given the term in section 502 of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661a).
       (8) Fund.--The term ``Fund'' means the Clean Energy 
     Investment Fund established by section 4(a).
       (9) Loan guarantee.--The term ``loan guarantee'' has the 
     meaning given the term in section 502 of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a).
       (10) National laboratory.--The term ``National Laboratory'' 
     has the meaning given the term in section 2 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15801).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (12) Security.--The term ``security'' has the meaning given 
     the term in section 2 of the Securities Act of 1933 (15 
     U.S.C. 77b).
       (13) 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.
       (14) Technology risk.--The term ``technology risk'' means 
     the risks during construction or operation associated with 
     the design, development, and deployment of clean energy 
     technologies (including the cost, schedule, performance, 
     reliability and maintenance, and accounting for the perceived 
     risk), from the perspective of commercial lenders, that may 
     be increased as a result of the absence of adequate 
     historical construction, operating, or performance data from 
     commercial applications of the technology.

     SEC. 4. IMPROVEMENTS TO EXISTING PROGRAMS.

       (a) Clean Energy Investment Fund.--.
       (1) Establishment.--There is established in the Treasury of 
     the United States a revolving fund, to be known as the 
     ``Clean Energy Investment Fund'', consisting of--
       (A) such amounts as have been appropriated for 
     administrative expenses to carry out title XVII of the Energy 
     Policy Act of 2005 (42 U.S.C. 16511 et seq.);
       (B) such amounts as are deposited in the Fund under this 
     Act and amendments made by this Act; and
       (C) such sums as may be appropriated to supplement the 
     Fund.
       (2) Expenditures from fund.--
       (A) In general.--Notwithstanding section 1705(e) of the 
     Energy Policy Act of 2005 (42 U.S.C. 16516(e)), amounts in 
     the Fund shall be available to the Secretary for obligation 
     without fiscal year limitation, to remain available until 
     expended.
       (B) Administrative expenses.--
       (i) Fees.--Fees collected for administrative expenses shall 
     be available without limitation to cover applicable expenses.
       (ii) Fund.--To the extent that administrative expenses are 
     not reimbursed through fees, an amount not to exceed 1.5 
     percent of the amounts in the Fund as of the beginning of 
     each fiscal year shall be available to pay the administrative 
     expenses for the fiscal

[[Page S4972]]

     year necessary to carry out title XVII of the Energy Policy 
     Act of 2005 (42 U.S.C. 16511 et seq.).
       (3) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (b) Revisions to Loan Guarantee Program Authority.--
       (1) 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 project; or
       ``(ii) a project for which the Secretary approved a loan 
     guarantee.''.
       (2) 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 
     sufficient amounts to account for the cost are available--
       ``(A) in unobligated balances within the Clean Energy 
     Investment Fund established under section 4(a) of the 21st 
     Century Energy Technology Deployment Act;
       ``(B) as a payment from the borrower and the payment is 
     deposited in the Clean Energy Investment Fund; or
       ``(C) in any combination of balances and payments described 
     in subparagraphs (A) and (B), respectively.
       ``(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 under this section.''.
       (3) Subrogation.--Section 1702(g)(2) of the Energy Policy 
     Act of 2005 (42 U.S.C. 16512(g)(2)) is amended--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B).
       (4) 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 in the Clean Energy 
     Investment Fund established under section 4(a) of the 21st 
     Century Energy Technology Deployment Act; 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.
       ``(3) Adjustment.--The Secretary may adjust the amount or 
     manner of collection of fees under this title as the 
     Secretary determines is necessary to promote, to the maximum 
     extent practicable, eligible projects under this title.''.
       (5) Processing.--Section 1702 of the Energy Policy Act of 
     2005 (42 U.S.C. 16512) is amended by adding at the end the 
     following:
       ``(k) Accelerated Reviews.--To the maximum extent 
     practicable and consistent with sound business practices, the 
     Secretary shall seek to consolidate reviews of applications 
     for loan guarantees under this title such that decisions as 
     to whether to enter into a commitment on an application can 
     be issued not later than 180 days after the date of 
     submission of a completed application.''.
       (6) Wage rates.--Section 1705(c) of the Energy Policy Act 
     of 2005 (42 U.S.C. 16516(c)) is amended by striking ``support 
     under this section'' and inserting ``support under this 
     title''.

     SEC. 5. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

       (a) Goals.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, after consultation with 
     the Advisory Council, shall develop and publish for review 
     and comment in the Federal Register near-, medium-, and long-
     term goals (including numerical performance targets at 
     appropriate intervals to measure progress toward those goals) 
     for the deployment of clean energy technologies through the 
     credit support programs established by this Act (including an 
     amendment made by this Act) to promote--
       (1) sufficient electric generating capacity using clean 
     energy technologies to meet the energy needs of the United 
     States;
       (2) clean energy technologies in vehicles and fuels that 
     will substantially reduce the reliance of the United States 
     on foreign sources of energy and insulate consumers from the 
     volatility of world energy markets;
       (3) a domestic commercialization and manufacturing capacity 
     that will establish the United States as a world leader in 
     clean energy technologies across multiple sectors;
       (4) installation of sufficient infrastructure to allow for 
     the cost-effective deployment of clean energy technologies 
     appropriate to each region of the United States;
       (5) the transformation of the building stock of the United 
     States to zero net energy consumption;
       (6) the recovery, use, and prevention of waste energy;
       (7) domestic manufacturing of clean energy technologies on 
     a scale that is sufficient to achieve price parity with 
     conventional energy sources;
       (8) domestic production of commodities and materials (such 
     as steel, chemicals, polymers, and cement) using clean energy 
     technologies so that the United States will become a world 
     leader in environmentally sustainable production of the 
     commodities and materials;
       (9) a robust, efficient, and interactive electricity 
     transmission grid that will allow for the incorporation of 
     clean energy technologies, distributed generation, and 
     demand-response in each regional electric grid;
       (10) sufficient availability of financial products to allow 
     owners and users of residential, retail, commercial, and 
     industrial buildings to make energy efficiency and 
     distributed generation technology investments with reasonable 
     payback periods; and
       (11) such other goals as the Secretary, in consultation 
     with the Advisory Council, determines to be consistent with 
     the purposes of this Act.
       (b) Revisions.--The Secretary shall revise the goals 
     established under subsection (a), from time to time as 
     appropriate, to account for advances in technology and 
     changes in energy policy.

     SEC. 6. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.

       (a) Establishment.--
       (1) In general.--There is established in the Department of 
     Energy an administration to be known as the Clean Energy 
     Deployment Administration, under the direction of the 
     Administrator and the Board of Directors.
       (2) Status.--
       (A) In general.--The Administration (including officers, 
     employees, and agents of the Administration) shall not be 
     responsible to, or subject to the authority, direction, or 
     control of, any other officer, employee, or agent of the 
     Department of Energy other than the Secretary, acting through 
     the Administrator.
       (B) Exemption from reorganization.--The Administration 
     shall be exempt from the reorganization authority provided 
     under section 643 of the Department of Energy Reorganization 
     Act (42 U.S.C. 7253).
       (C) Inspector general.--Section 12 of the Inspector General 
     Act of 1978 (5 U.S.C. App.) is amended--
       (i) in paragraph (1), by inserting ``the Administrator of 
     the Clean Energy Deployment Administration;'' after ``Export-
     Import Bank;''; and
       (ii) in paragraph (2), by inserting ``the Clean Energy 
     Deployment Administration,'' after ``Export-Import Bank,''.
       (3) Offices.--
       (A) Principal office.--The Administration shall--
       (i) maintain the principal office of the Administration in 
     the District of Columbia; and
       (ii) for purposes of venue in civil actions, be considered 
     to be a resident of the District of Columbia.
       (B) Other offices.--The Administration may establish other 
     offices in such other places as the Administration considers 
     necessary or appropriate for the conduct of the business of 
     the Administration.
       (b) Administrator.--
       (1) In general.--The Administrator shall be--
       (A) appointed by the President, with the advice and consent 
     of the Senate, for a 5-year term; and
       (B) compensated at the annual rate of basic pay prescribed 
     for level II of the Executive Schedule under section 5313 of 
     title 5, United States Code.
       (2) Duties.--The Administrator shall--
       (A) serve as the Chief Executive Officer of the 
     Administration and Chairman of the Board;
       (B) ensure that--
       (i) the Administration operates in a safe and sound manner, 
     including maintenance of adequate capital and internal 
     controls (consistent with section 404 of the Sarbanes-Oxley 
     Act of 2002 (15 U.S.C. 7262));
       (ii) the operations and activities of the Administration 
     foster liquid, efficient, competitive, and resilient energy 
     and energy efficiency finance markets;
       (iii) the Administration carries out the purposes of this 
     Act only through activities that are authorized under and 
     consistent with this Act; and
       (iv) the activities of the Administration and the manner in 
     which the Administration is operated are consistent with the 
     public interest;
       (C) develop policies and procedures for the Administration 
     that will--
       (i) promote a self-sustaining portfolio of investments that 
     will maximize the value of investments to effectively promote 
     clean energy technologies;
       (ii) promote transparency and openness in Administration 
     operations;
       (iii) afford the Administration with sufficient flexibility 
     to meet the purposes of this Act; and
       (iv) provide for the efficient processing of applications; 
     and
       (D) with the concurrence of the Board, set expected loss 
     reserves for the support provided by the Administration 
     consistent with section 7(a)(1)(C).
       (c) Board of Directors.--

[[Page S4973]]

       (1) In general.--The Board of Directors of the 
     Administration shall consist of--
       (A) the Secretary or the designee of the Secretary, who 
     shall serve as an ex-officio voting member of the Board of 
     Directors;
       (B) the Administrator, who shall serve as the Chairman of 
     the Board of Directors; and
       (C) 7 additional members who shall--
       (i) be appointed by the President, with the advice and 
     consent of the Senate, for staggered 5-year terms; and
       (ii) have experience in banking or financial services 
     relevant to the operations of the Administration, including 
     individuals with substantial experience in the development of 
     energy projects, the electricity generation sector, the 
     transportation sector, the manufacturing sector, and the 
     energy efficiency sector.
       (2) Duties.--The Board of Directors shall--
       (A) oversee the operations of the Administration and ensure 
     industry best practices are followed in all financial 
     transactions involving the Administration;
       (B) consult with the Administrator on the general policies 
     and procedures of the Administration to ensure the interests 
     of the taxpayers are protected;
       (C) ensure the portfolio of investments are consistent with 
     purposes of this Act and with the long-term financial 
     stability of the Administration;
       (D) ensure that the operations and activities of the 
     Administration are consistent with the development of a 
     robust private sector that can provide commercial loans or 
     financing products; and
       (E) not serve on a full-time basis, except that the Board 
     of Directors shall meet at least quarterly to review, as 
     appropriate, applications for credit support and set policies 
     and procedures as necessary.
       (3) Removal.--An appointed member of the Board of Directors 
     may be removed from office by the President for good cause.
       (4) Vacancies.--An appointed seat on the Board of Directors 
     that becomes vacant shall be filled by appointment by the 
     President, but only for the unexpired portion of the term of 
     the vacating member.
       (5) Compensation of members.--An appointed member of the 
     Board of Directors shall be compensated at a rate equal to 
     the daily equivalent of the annual rate of basic pay 
     prescribed for level III of the Executive Schedule under 
     section 5314 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 of Directors.
       (d) Energy Technology Advisory Council.--
       (1) In general.--The Administration shall have an Energy 
     Technology Advisory Council consisting of--
       (A) 5 members selected by the Secretary; and
       (B) 3 members selected by the Board of Directors of the 
     Administration.
       (2) Qualifications.--The members of the Advisory Council 
     shall--
       (A) have relevant scientific expertise; and
       (B) in the case of the members selected by the Secretary 
     under paragraph (1)(A), include representatives of--
       (i) the academic community;
       (ii) the private research community;
       (iii) National Laboratories;
       (iv) the technology or project development community; and
       (v) the commercial energy financing and operations sector.
       (3) Duties.--The Advisory Council shall--
       (A) develop and publish for comment in the Federal Register 
     a methodology for assessment of clean energy technologies 
     that will allow the Administration to evaluate projects based 
     on the progress likely to be achieved per-dollar invested in 
     maximizing the attributes of the definition of clean energy 
     technology, taking into account the extent to which support 
     for a clean energy technology is likely to accrue subsequent 
     benefits that are attributable to a commercial scale 
     deployment taking place earlier than that which otherwise 
     would have occurred without the support; and
       (B) advise on the technological approaches that should be 
     supported by the Administration to meet the technology 
     deployment goals established by the Secretary pursuant to 
     section 5.
       (4) Term.--
       (A) In general.--Members of the Advisory Council shall have 
     5-year staggered terms, as determined by the Secretary and 
     the Administrator.
       (B) Reappointment.--A member of the Advisory Council may be 
     reappointed.
       (5) Compensation.--A member of the Advisory Council, who is 
     not otherwise compensated as a Federal employee, 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 Advisory Council.
       (e) Staff.--
       (1) In general.--The Administrator, in consultation with 
     the Board of Directors, may--
       (A) appoint and terminate such officers, attorneys, 
     employees, and agents as are necessary to carry out this Act; 
     and
       (B) vest those personnel with such powers and duties as the 
     Administrator may determine.
       (2) Direct hire authority.--
       (A) In general.--Notwithstanding section 3304 and sections 
     3309 through 3318 of title 5, United States Code, the 
     Administrator may, on a determination that there is a severe 
     shortage of candidates or a critical hiring need for 
     particular positions, recruit and directly appoint highly 
     qualified critical personnel with specialized knowledge 
     important to the function of the Administration into the 
     competitive service.
       (B) Exception.--The authority granted under subparagraph 
     (A) shall not apply to positions in the excepted service or 
     the Senior Executive Service.
       (C) Requirements.--In exercising the authority granted 
     under subparagraph (A), the Administrator shall ensure that 
     any action taken by the Administrator--
       (i) is consistent with the merit principles of section 2301 
     of title 5, United States Code; and
       (ii) complies with the public notice requirements of 
     section 3327 of title 5, United States Code.
       (D) Termination of effectiveness.--The authority provided 
     by this paragraph terminates effective on the date that is 2 
     years after the date of enactment of this Act.
       (3) Critical pay authority.--
       (A) In general.--Notwithstanding section 5377 of title 5, 
     United States Code, and without regard to the provisions of 
     that title governing appointments in the competitive service 
     or the Senior Executive Service and chapters 51 and 53 of 
     that title (relating to classification and pay rates), the 
     Administrator may establish, fix the compensation of, and 
     appoint individuals to critical positions needed to carry out 
     the functions of the Administration, if the Administrator 
     certifies that--
       (i) the positions require expertise of an extremely high 
     level in a financial, technical, or scientific field;
       (ii) the Administration would not successfully accomplish 
     an important mission without such an individual; and
       (iii) exercise of the authority is necessary to recruit an 
     individual who is exceptionally well qualified for the 
     position.
       (B) Limitations.--The authority granted under subparagraph 
     (A) shall be subject to the following conditions:
       (i) The number of critical positions authorized by 
     subparagraph (A) may not exceed 20 at any 1 time in the 
     Administration.
       (ii) The term of an appointment under subparagraph (A) may 
     not exceed 4 years.
       (iii) An individual appointed under subparagraph (A) may 
     not have been an Administration employee at any time during 
     the 2-year period preceding the date of appointment.
       (iv) Total annual compensation for any individual appointed 
     under subparagraph (A) may not exceed the highest total 
     annual compensation payable at the rate determined under 
     section 104 of title 3, United States Code.
       (v) An individual appointed under subparagraph (A) may not 
     be considered to be an employee for purposes of subchapter II 
     of chapter 75 of title 5, United States Code.
       (C) Notification.--Each year, the Administrator shall 
     submit to Congress a notification that lists each individual 
     appointed under this paragraph.

     SEC. 7. ADMINISTRATION FUNCTIONS.

       (a) Operational Units.--
       (1) Direct support.--
       (A) In general.--The Administration may issue direct loans, 
     letters of credit, loan guarantees, insurance products, or 
     such other credit enhancements or debt instruments (including 
     participation as a co-lender or a member of a syndication) as 
     the Administrator considers appropriate to deploy clean 
     energy technologies if the Administrator has determined that 
     deployment of the technologies would benefit or be 
     accelerated by the support.
       (B) Eligibility criteria.--In carrying out this paragraph 
     and awarding credit support to projects, the Administrator 
     shall account for--
       (i) how the technology rates based on an evaluation 
     methodology established by the Advisory Council;
       (ii) how the project fits with the goals established under 
     section 5; and
       (iii) the potential for the applicant to successfully 
     complete the project.
       (C) Risk.--
       (i) Expected loan loss reserve.--The Administrator shall 
     establish an expected loan loss reserve to account for 
     estimated losses attributable to activities under this 
     section that is consistent with the purposes of--

       (I) developing breakthrough technologies to the point at 
     which technology risk is largely mitigated;
       (II) achieving widespread deployment and advancing the 
     commercial viability of clean energy technologies; and
       (III) advancing the goals established under section 5.

       (ii) Initial expected loan loss reserve.--Until such time 
     as the Administrator determines sufficient data exist to 
     establish an expected loan loss reserve that is appropriate, 
     the Administrator shall consider establishing an initial rate 
     of 10 percent for the portfolio of investments under this 
     Act.
       (iii) Portfolio investment approach.--The Administration 
     shall--

       (I) use a portfolio investment approach to mitigate risk 
     and diversify investments across technologies;
       (II) to the maximum extent practicable and consistent with 
     long-term self-sufficiency, weigh the portfolio of 
     investments in

[[Page S4974]]

     projects to advance the goals established under section 5; 
     and
       (III) consistent with the expected loan loss reserve 
     established under this subparagraph, the purposes of this 
     Act, and section 6(b)(2)(B), provide the maximum practicable 
     percentage of support to promote breakthrough technologies.

       (iv) Loss rate review.--

       (I) In general.--The Board of Directors shall review on an 
     annual basis the loss rates of the portfolio to determine the 
     adequacy of the reserves.
       (II) Report.--Not later than 90 days after the date of the 
     initiation of the review, the Administrator shall submit to 
     the Committee on Energy and Natural Resources of the Senate 
     and the Committee on Energy and Commerce of the House of 
     Representatives a report describing the results of the review 
     and any recommended policy changes.

       (D) Application review.--
       (i) In general.--To the maximum extent practicable and 
     consistent with sound business practices, the Administration 
     shall seek to consolidate reviews of applications for credit 
     support under this Act such that final decisions on 
     applications can generally be issued not later than 180 days 
     after the date of submission of a completed application.
       (ii) Environmental review.--In carrying out this Act, the 
     Administration shall, to the maximum extent practicable--

       (I) avoid duplicating efforts that have already been 
     undertaken by other agencies (including State agencies acting 
     under Federal programs); and
       (II) with the advice of the Council on Environmental 
     Quality and any other applicable agencies, use the 
     administrative records of similar reviews conducted 
     throughout the executive branch to develop the most 
     expeditious review process practicable.

       (E) Wage rate requirements.--
       (i) In general.--No credit support shall be issued under 
     this section unless the borrower has provided to the 
     Administrator reasonable assurances that all laborers and 
     mechanics employed by contractors and subcontractors in the 
     performance of construction work financed in whole or in part 
     by the Administration will be paid wages at rates not less 
     than those prevailing on projects of a character similar to 
     the contract work in the civil subdivision of the State in 
     which the contract work is to be performed as determined by 
     the Secretary of Labor in accordance with subchapter IV of 
     chapter 31 of part A of subtitle II of title 40, United 
     States Code.
       (ii) Labor standards.--With respect to the labor standards 
     specified in this section, the Secretary of Labor shall have 
     the authority and functions set forth in Reorganization Plan 
     Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (2) Indirect support.--
       (A) In general.--The Administration shall work to develop 
     financial products and arrangements to both promote the 
     widespread deployment of, and mobilize private sector support 
     of credit and investment institutions for, clean energy 
     technologies through securitization, indirect credit support, 
     or other similar means of credit enhancement.
       (B) Financial products.--The Administration--
       (i) in cooperation with Federal, State, local, and private 
     sector entities, shall develop debt instruments that provide 
     for the aggregation of, or directly aggregate, projects for 
     clean energy technology deployments on a scale appropriate 
     for residential or commercial applications; and
       (ii) may purchase, and make commitments to purchase, any 
     debt instrument associated with the deployment of clean 
     energy technologies for the purposes of enhancing the 
     availability of private financing for clean energy technology 
     deployments.
       (C) Disposition of debt or interest.--The Administration 
     may acquire, hold, and sell or otherwise dispose of, pursuant 
     to commitments or otherwise, any debt associated with the 
     deployment of clean energy technologies or interest in the 
     debt.
       (D) Pricing.--
       (i) In general.--The Administrator may establish 
     requirements, and impose charges or fees, which may be 
     regarded as elements of pricing, for different classes of 
     sellers, servicers, or services.
       (ii) Classification of sellers and servicers.--For the 
     purpose of clause (i), the Administrator may classify sellers 
     and servicers as necessary to promote transparency and 
     liquidity and properly characterize the risk of default.
       (E) Eligibility.--The Administrator shall establish--
       (i) eligibility criteria for loan originators, sellers, and 
     servicers seeking support for portfolios of financial 
     obligations relating to clean energy technologies so as to 
     ensure the capability of the loan originators, sellers, and 
     servicers to perform the functions required to maintain the 
     expected performance of the portfolios; and
       (ii) such criteria, standards, guidelines, and mechanisms 
     such that, to the maximum extent practicable, loan 
     originators and sellers will be able to determine the 
     eligibility of loans for resale at the time of initial 
     lending.
       (F) Secondary market support.--
       (i) In general.--The Administration may lend on the 
     security of, and make commitments to lend on the security of, 
     any debt that the Administration has issued or is authorized 
     to purchase under this section.
       (ii) Authorized actions.--On such terms and conditions as 
     the Administrator may prescribe, the Administration may, with 
     the concurrence of the Board of Directors--

       (I) borrow;
       (II) give security;
       (III) pay interest or other return; and
       (IV) issue notes, debentures, bonds, or other obligations 
     or securities.

       (G) Lending activities.--
       (i) In general.--The Administrator shall determine--

       (I) the volume of the lending activities of the 
     Administration; and
       (II) the types of loan ratios, risk profiles, interest 
     rates, maturities, and charges or fees in the secondary 
     market operations of the Administration.

       (ii) Objectives.--Determinations under clause (i) shall be 
     consistent with the objectives of--

       (I) providing an attractive investment environment for 
     clean energy technologies;
       (II) making the operations of the Administration self-
     supporting over the long term; and
       (III) advancing the goals established under section 5.

       (H) Exempt securities.--All securities issued or guaranteed 
     by the Administration shall, to the same extent as securities 
     that are direct obligations of or obligations guaranteed as 
     to principal or interest by the United States, be considered 
     to be exempt securities within the meaning of the laws 
     administered by the Securities and Exchange Commission.
       (b) Other Authorized Programs.--
       (1) In general.--The Secretary may delegate to the 
     Administration the provision of financial services and 
     program management for grant, loan, and other credit 
     enhancement programs authorized under any other provision of 
     law.
       (2) Administration.--In administering any other program 
     delegated by the Secretary, the Administration shall, to the 
     maximum extent practicable (as determined by the 
     Administrator)--
       (A) administer the program in a manner that is consistent 
     with the terms and conditions of this Act; and
       (B) minimize the administrative costs to the Federal 
     Government.

     SEC. 8. FEDERAL CREDIT AUTHORITY.

       (a) Transfer of Functions and Authority.--
       (1) In general.--Subject to paragraph (2), on a finding by 
     the Secretary and the Administrator that the Administration 
     is sufficiently ready to assume the functions and that 
     applicants to those programs will not be unduly adversely 
     affected but in no case later than 18 months after the date 
     of enactment of this Act, all of the functions and authority 
     of the Secretary under title XVII of the Energy Policy Act of 
     2005 (42 U.S.C. 16511 et seq.) and authorities established by 
     this Act shall be transferred to the Administration.
       (2) Failure to transfer functions.--If the functions and 
     authorities are not transferred to the Administration in 
     accordance with paragraph (1), the Secretary and the 
     Administrator shall submit to Congress a report on the 
     reasons for delay and an expected timetable for transfer of 
     the functions and authorities to the Administration.
       (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.
       (4) Transfer of fund authority.--On transfer of functions 
     pursuant to paragraph (1), the Administration shall have all 
     authorities to make use of the Fund reserved for the 
     Secretary before the transfer.
       (5) Use.--Amounts in the Fund shall be available for 
     discharge of liabilities and all other expenses of the 
     Administration, including subsequent transfer to the 
     respective credit program accounts.
       (6) Initial investment.--
       (A) In general.--On transfer of functions pursuant to 
     paragraph (1), out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Fund to carry out this Act $10,000,000,000, to remain 
     available until expended.
       (B) Receipt and acceptance.--The Fund shall be entitled to 
     receive and shall accept, and shall be used to carry out this 
     Act, the funds transferred to the Fund under subparagraph 
     (A), without further appropriation. 
       (7) Authorization of appropriations.--In addition to funds 
     made available by paragraphs (1) through (6), there are 
     authorized to be appropriated to the Fund such sums as are 
     necessary to carry out this Act.
       (b) Payments of Liabilities.--
       (1) In general.--Any payment made to discharge liabilities 
     arising from agreements under this Act shall be paid out of 
     the Fund or the associated credit program account, as 
     appropriate.
       (2) Security.--The full faith and credit of the United 
     States is pledged to the payment of all obligations entered 
     into by the Administration pursuant to this Act.
       (c) Fees.--
       (1) In general.--Consistent with achieving the purposes of 
     this Act, the Administrator shall charge fees or collect 
     compensation generally in accordance with commercial rates.
       (2) Availability of fees.--All fees collected by the 
     Administration may be retained by the Administration and 
     placed in

[[Page S4975]]

     the Fund and may remain available to the Administration, 
     without further appropriation or fiscal year limitation, for 
     use in carrying out the purposes of this Act.
       (3) Breakthrough technologies.--The Administration shall 
     charge the minimum amount in fees or compensation practicable 
     for breakthrough technologies, consistent with the long-term 
     viability of the Administration, unless the Administration 
     first determines that a higher charge will not impede the 
     development of the technology.
       (4) Alternative fee arrangements.--The Administration may 
     use such alternative arrangements (such as profit 
     participation, contingent fees, and other valuable contingent 
     interests) as the Administration considers appropriate to 
     compensate the Administration for the expenses of the 
     Administration and the risk inherent in the support of the 
     Administration.
       (d) Cost Transfer Authority.--Amounts collected by the 
     Administration for the cost of a loan or loan guarantee shall 
     be transferred by the Administration to the respective credit 
     program accounts.
       (e) Supplemental Borrowing Authority.--In order to maintain 
     sufficient liquidity for activities authorized under section 
     7(a)(2), the Administration may issue notes, debentures, 
     bonds, or other obligations for purchase by the Secretary of 
     the Treasury.
       (f) Public Debt Transactions.--For the purpose of 
     subsection (e)--
       (1) the Secretary of the Treasury 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; and
       (2) the purposes for which securities may be issued under 
     that chapter are extended to include any purchase under this 
     subsection.
       (g) Maximum Outstanding Holding.--The Secretary of the 
     Treasury shall purchase instruments issued under subsection 
     (e) to the extent that the purchase would not increase the 
     aggregate principal amount of the outstanding holdings of 
     obligations under subsection (e) by the Secretary of the 
     Treasury to an amount that is greater than $2,000,000,000.
       (h) Rate of Return.--Each purchase of obligations by the 
     Secretary of the Treasury under this section shall be on 
     terms and conditions established to yield a rate of return 
     determined by the Secretary of the Treasury to be 
     appropriate, taking into account the current average rate on 
     outstanding marketable obligations of the United States as of 
     the last day of the month preceding the purchase.
       (i) Sale of Obligations.--The Secretary of the Treasury may 
     at any time sell, on terms and conditions and at prices 
     determined by the Secretary of the Treasury, any of the 
     obligations acquired by the Secretary of the Treasury under 
     this section.
       (j) Public Debt Transactions.--All redemptions, purchases, 
     and sales by the Secretary of the Treasury of obligations 
     under this section shall be treated as public debt 
     transactions of the United States.

     SEC. 9. GENERAL PROVISIONS.

       (a) Immunity From Impairment, Limitation, or Restriction.--
       (1) In general.--All rights and remedies of the 
     Administration (including any rights and remedies of the 
     Administration on, under, or with respect to any mortgage or 
     any obligation secured by a mortgage) shall be immune from 
     impairment, limitation, or restriction by or under--
       (A) any law (other than a law enacted by Congress expressly 
     in limitation of this paragraph) that becomes effective after 
     the acquisition by the Administration of the subject or 
     property on, under, or with respect to which the right or 
     remedy arises or exists or would so arise or exist in the 
     absence of the law; or
       (B) any administrative or other action that becomes 
     effective after the acquisition.
       (2) State law.--The Administrator may conduct the business 
     of the Administration without regard to any qualification or 
     law of any State relating to incorporation.
       (b) Use of Other Agencies.--With the consent of a 
     department, establishment, or instrumentality (including any 
     field office), the Administration may--
       (1) use and act through any department, establishment, or 
     instrumentality;
       (2) use, and pay compensation for, information, services, 
     facilities, and personnel of the department, establishment, 
     or instrumentality.
       (c) Procurement.--The Administrator shall be the senior 
     procurement officer for the Administration for purposes of 
     section 16(a) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 414(a)).
       (d) Financial Matters.--
       (1) Investments.--Funds of the Administration may be 
     invested in such investments as the Board of Directors may 
     prescribe.
       (2) Fiscal agents.--Any Federal Reserve bank or any bank as 
     to which at the time of the designation of the bank by the 
     Administrator there is outstanding a designation by the 
     Secretary of the Treasury as a general or other depository of 
     public money, may be designated by the Administrator as a 
     depositary or custodian or as a fiscal or other agent of the 
     Administration.
       (e) Jurisdiction.--Notwithstanding section 1349 of title 
     28, United States Code, or any other provision of law--
       (1) the Administration shall be considered a corporation 
     covered by sections 1345 and 1442 of title 28, United States 
     Code;
       (2) all civil actions to which the Administration is a 
     party shall be considered to arise under the laws of the 
     United States, and the district courts of the United States 
     shall have original jurisdiction of all such actions, without 
     regard to amount or value; and
       (3) any civil or other action, case or controversy in a 
     court of a State, or in any court other than a district court 
     of the United States, to which the Administration is a party 
     may at any time before trial be removed by the 
     Administration, without the giving of any bond or security 
     and by following any procedure for removal of causes in 
     effect at the time of the removal--
       (A) to the district court of the United States for the 
     district and division embracing the place in which the same 
     is pending; or
       (B) if there is no such district court, to the district 
     court of the United States for the district in which the 
     principal office of the Administration is located.
       (f) Periodic Reports.--Not later than 1 year after 
     commencement of operation of the Administration and at least 
     biannually thereafter, the Administrator shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Energy and Commerce of the House of 
     Representatives a report that includes a description of--
       (1) the technologies supported by activities of the 
     Administration and how the activities advance the purposes of 
     this Act; and
       (2) the performance of the Administration on meeting the 
     goals established under section 5.
       (g) Audits by the Comptroller General.--
       (1) In general.--The programs, activities, receipts, 
     expenditures, and financial transactions of the 
     Administration shall be subject to audit by the Comptroller 
     General of the United States under such rules and regulations 
     as may be prescribed by the Comptroller General.
       (2) Access.--The representatives of the Government 
     Accountability Office shall--
       (A) have access to the personnel and to all books, 
     accounts, documents, records (including electronic records), 
     reports, files, and all other papers, automated data, things, 
     or property belonging to, under the control of, or in use by 
     the Administration, or any agent, representative, attorney, 
     advisor, or consultant retained by the Administration, and 
     necessary to facilitate the audit;
       (B) be afforded full facilities for verifying transactions 
     with the balances or securities held by depositories, fiscal 
     agents, and custodians;
       (C) be authorized to obtain and duplicate any such books, 
     accounts, documents, records, working papers, automated data 
     and files, or other information relevant to the audit without 
     cost to the Comptroller General; and
       (D) have the right of access of the Comptroller General to 
     such information pursuant to section 716(c) of title 31, 
     United States Code.
       (3) Assistance and cost.--
       (A) In general.--For the purpose of conducting an audit 
     under this subsection, the Comptroller General may, in the 
     discretion of the Comptroller General, employ by contract, 
     without regard to section 3709 of the Revised Statutes (41 
     U.S.C. 5), professional services of firms and organizations 
     of certified public accountants for temporary periods or for 
     special purposes.
       (B) Reimbursement.--
       (i) In general.--On the request of the Comptroller General, 
     the Administration shall reimburse the General Accountability 
     Office for the full cost of any audit conducted by the 
     Comptroller General under this subsection.
       (ii) Crediting.--Such reimbursements shall--

       (I) be credited to the appropriation account entitled 
     ``Salaries and Expenses, Government Accountability Office'' 
     at the time at which the payment is received; and
       (II) remain available until expended.

       (h) Annual Independent Audits.--
       (1) In general.--The Administrator shall--
       (A) have an annual independent audit made of the financial 
     statements of the Administration by an independent public 
     accountant in accordance with generally accepted auditing 
     standards; and
       (B) submit to the Secretary the results of the audit.
       (2) Content.--In conducting an audit under this subsection, 
     the independent public accountant shall determine and report 
     on whether the financial statements of the Administration--
       (A) are presented fairly in accordance with generally 
     accepted accounting principles; and
       (B) comply with any disclosure requirements imposed under 
     this Act.
       (i) Financial Reports.--
       (1) In general.--The Administrator shall submit to the 
     Secretary annual and quarterly reports of the financial 
     condition and operations of the Administration, which shall 
     be in such form, contain such information, and be submitted 
     on such dates as the Secretary shall require.
       (2) Contents of annual reports.--Each annual report shall 
     include--
       (A) financial statements prepared in accordance with 
     generally accepted accounting principles;
       (B) any supplemental information or alternative 
     presentation that the Secretary may require; and
       (C) an assessment (as of the end of the most recent fiscal 
     year of the Administration), signed by the chief executive 
     officer

[[Page S4976]]

     and chief accounting or financial officer of the 
     Administration, of--
       (i) the effectiveness of the internal control structure and 
     procedures of the Administration; and
       (ii) the compliance of the Administration with applicable 
     safety and soundness laws.
       (3) Special reports.--The Secretary may require the 
     Administrator to submit other reports on the condition 
     (including financial condition), management, activities, or 
     operations of the Administration, as the Secretary considers 
     appropriate.
       (4) Accuracy.--Each report of financial condition shall 
     contain a declaration by the Administrator or any other 
     officer designated by the Board of Directors of the 
     Administration to make the declaration, that the report is 
     true and correct to the best of the knowledge and belief of 
     the officer.
       (5) Availability of reports.--Reports required under this 
     section shall be published and made publicly available as 
     soon as is practicable after receipt by the Secretary.
       (j) Scope and Termination of Authority.--
       (1) New obligations.--The Administrator shall not initiate 
     any new obligations under this Act on or after January 1, 
     2029.
       (2) Reversion to secretary.--The authorities and 
     obligations of the Administration shall revert to the 
     Secretary on January 1, 2029.
                                 ______