[Congressional Record Volume 155, Number 120 (Tuesday, August 4, 2009)]
[Senate]
[Pages S8769-S8771]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MERKLEY (for himself and Mr. Lugar):
  S. 1574. A bill to establish a Clean Energy for Homes and Buildings 
Program in the Department of Energy to provide financial assistance to 
promote residential-, commercial-, and industrial-scale energy 
efficiency and on-site renewable technologies; to the Committee on 
Energy and Natural Resources.
  Mr. MERKLEY. 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. 1574

       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 for Homes and 
     Buildings Act of 2009''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) homes and commercial or industrial buildings in the 
     United States consume significant quantities of energy, 
     including energy for electricity and heating, the generation 
     or combustion of which creates significant quantities of 
     greenhouse gas emissions;
       (2) in most cases, energy efficiency is the most cost-
     effective and rapidly deployable strategy for reducing 
     greenhouse gas emissions, energy demand, and the need for 
     long-distance transmission of energy;
       (3) on-site renewable energy generation reduces greenhouse 
     gas emissions, demand on the electricity transmission grid, 
     and the need for long-distance transmission of energy;
       (4) many energy efficiency measures and on-site renewable 
     energy generation systems produce a net cost savings over the 
     course of the useful life of the measures and systems, and 
     often over a shorter time frame, but the initial expense 
     required to purchase and install the measures and systems is 
     often a significant barrier to widespread investment in the 
     measures and systems;
       (5) financial products, financing programs, and other 
     programs that reduce or eliminate the need for the initial 
     expense described in paragraph (4) can permit building owners 
     to invest in measures and systems that reduce total energy 
     costs and realize net cost savings at the time of the 
     installation of the measures and systems, defer capital 
     expenditure, and enhance the value, comfort, and 
     sustainability of the property of the owners; and
       (6) State and local governments, utilities, energy 
     efficiency and renewable energy service providers, banks, 
     finance companies, community development organizations, and 
     other entities are developing financial products and programs 
     to provide financing assistance for building owners to 
     encourage the use of the measures and systems described in 
     paragraph (4), including programs that allow repayment of 
     loans under programs described in paragraph (5) through 
     utility bills, or through property-based assessments, taxes, 
     or charges, to facilitate loan repayment for the benefit of 
     building owners and lenders or program sponsors.

     SEC. 3. PURPOSE.

       The purpose of this Act is to encourage widespread 
     deployment of energy efficiency and on-site renewable energy 
     technologies in homes and other buildings throughout the 
     United States through the establishment of a self-sustaining 
     Clean Energy for Homes and Buildings Program that can--
       (1) encourage the widespread availability of financial 
     products and programs with attractive rates and terms that 
     significantly reduce or eliminate upfront expenses to allow 
     building owners (including homeowners, business owners, 
     owners of multifamily housing, owners of multi-tenant 
     commercial properties, and owners of other residential, 
     commercial, or industrial properties) to invest in energy 
     efficiency measures and on-site renewable energy systems with 
     payback periods of up to 25 years or the useful life of such 
     a measure or system by providing credit support, credit 
     enhancement, secondary markets, and other support to 
     originators of the financial products and sponsors of the 
     financing programs; and
       (2) help building owners invest in measures and systems 
     that reduce energy costs, in many cases creating a net cost 
     savings that can be realized in the short-term, and may also 
     allow building owners to defer capital expenditures and 
     increase the value, comfort, and sustainability of the 
     property of the owners.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) 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).
       (2) 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).
       (3) 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).
       (4) Program.--The term ``Program'' means the Clean Energy 
     for Homes and Buildings Program established by section 6.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (6) Security.--The term ``security'' has the meaning given 
     the term in section 2 of the Securities Act of 1933 (15 
     U.S.C. 77b).
       (7) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and

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       (D) any other territory or possession of the United States.

     SEC. 5. CLEAN ENERGY FOR HOMES AND BUILDINGS GOALS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary 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--
       (1)(A) a minimum number of homes to be retrofitted through 
     energy efficiency measures or to have on-site renewable 
     energy systems added;
       (B) a minimum number of other buildings, by type, to be 
     retrofitted through energy efficiency measures or to have on-
     site renewable energy systems added; and
       (C) the number of on-site solar energy, wind energy, and 
     geothermal heat pump systems to be installed; and
       (2) as a result of those retrofits, additions, and 
     installations--
       (A) the quantity by which use of grid-supplied electricity, 
     natural gas, home heating oil, and other fuels will be 
     reduced;
       (B) the quantity by which total fossil fuel dependence in 
     the buildings sector will be reduced;
       (C) the quantity by which greenhouse gas emissions will be 
     reduced;
       (D) the number of jobs that will be created; and
       (E) the estimated total energy cost savings for building 
     owners.
       (b) Estimates by Originators or Sponsors.--The Secretary 
     may rely on reasonable estimates made by originators of 
     financial products or sponsors of financing programs for 
     tracking progress toward meeting the goals established under 
     this section instead of requiring building owners to monitor 
     and report on the progress.

     SEC. 6. CLEAN ENERGY FOR HOMES AND BUILDINGS PROGRAM.

       (a) Establishment.--There is established in the Department 
     of Energy a program to be known as the Clean Energy for Homes 
     and Buildings Program.
       (b) Eligibility Criteria.--
       (1) In general.--In administering the Program, the 
     Secretary shall establish eligibility criteria for applicants 
     for financial assistance under subsection (c) who can offer 
     financial products and programs consistent with the purposes 
     of this Act.
       (2) Criteria.--Criteria for applicants shall--
       (A) take into account--
       (i) the number and type of buildings that can be served by 
     the applicant, the size of the potential market, and the 
     scope of the program (in terms of measures or technologies to 
     be used);
       (ii) the ability of the applicant to successfully execute 
     the proposed program and maintain the performance of the 
     proposed projects and investments;
       (iii) financial criteria, as applicable, including the 
     ability of the applicant to raise private capital or other 
     sources of funds for the proposed program;
       (iv) criteria that enable the Secretary to determine sound 
     program design, including--

       (I) an assurance of credible energy efficiency or renewable 
     energy generation performance; and
       (II) financial product or program design that effectively 
     reduces barriers posed by traditional financing programs;

       (v) such criteria, standards, guidelines, and mechanisms as 
     will enable the Secretary, to the maximum extent practicable, 
     to communicate to program sponsors and originators, 
     servicers, and sellers of financial obligations the 
     eligibility of loans for resale;
       (vi) the ability of the applicant to report relevant data 
     on program performance; and
       (vii) the ability of the applicant to use incentives or 
     marketing techniques that are likely to result in successful 
     market penetration; and
       (B) encourage--
       (i) use of technologies that are either well-established or 
     new, but demonstrated to be reliable;
       (ii) applicants that can offer building owners payment 
     plans generally designed to permit the combination of energy 
     payments and assessments or charges from the installation or 
     payments associated with financing to be lower than the 
     energy payments prior to installing energy efficiency 
     measures or on-site renewable energy technologies;
       (iii) applicants that will use repayment mechanisms 
     convenient for building owners, such as tax-increment 
     financing, special tax districts, on-utility-bill repayment, 
     or other mechanisms;
       (iv) applicants that can provide convenience for building 
     owners by combining participation in the lending program 
     with--

       (I) processing for tax credits and other incentives;
       (II) technical assistance in selecting and working with 
     vendors to provide energy efficiency measures or on-site 
     renewable energy generation systems;

       (v) applicants the projects of which will use contractors 
     that hire within a 50-mile radius of the project, or as close 
     as is practicable;
       (vi) applicants that will use materials and technologies 
     manufactured in the United States;
       (vii) partnerships with or other involvement of State 
     workforce investment boards, labor organizations, community-
     based organizations, State-approved apprenticeship programs, 
     and other job training entities; and
       (viii) applicants that can provide financing programs or 
     financial products that mitigate barriers other than the 
     initial expense of installing measures or technologies, such 
     as unfavorable lease terms.
       (3) Diverse portfolio.--In establishing criteria and 
     selecting applicants to receive financial assistance under 
     subsection (c), to the maximum extent practicable, the 
     Secretary shall select a portfolio of investments that 
     reaches a diversity of building owners, including--
       (A) individual homeowners;
       (B) multifamily apartment building owners;
       (C) condominium owners associations;
       (D) commercial building owners, including multi-tenant 
     commercial properties; and
       (E) industrial building owners.
       (c) Financial Assistance.--
       (1) In general.--For applicants determined to be eligible 
     under criteria established under subsection (b), the 
     Secretary may provide financial assistance in the form of 
     direct loans, letters of credit, loan guarantees, insurance 
     products, other credit enhancements or debt instruments 
     (including securitization or indirect credit support), or 
     other financial products to promote the widespread deployment 
     of, and mobilize private sector support of credit and 
     investment institutions for, energy efficiency measures and 
     on-site renewable energy generation systems in buildings.
       (2) Financial products.--The Secretary--
       (A) in cooperation with Federal, State, local, and private 
     sector entities, shall develop debt instruments that provide 
     for the aggregation of, or directly aggregate, programs for 
     the deployment of energy efficiency measures and on-site 
     renewable energy generation systems on a scale appropriate 
     for residential, commercial, or industrial applications; and
       (B) may insure, guarantee, purchase, and make commitments 
     to purchase any debt instrument associated with the 
     deployment of clean energy technologies (including 
     subordinated securities) for the purpose of enhancing the 
     availability of private financing for the deployment of 
     energy efficiency measures and on-site renewable energy 
     generation systems.
       (3) Application review.--
       (A) In general.--To the maximum extent practicable and 
     consistent with sound business practices, the Secretary shall 
     seek to expedite reviews of applications for credit support 
     under this Act in order to communicate to applicants in a 
     timely manner the likelihood of support so that the 
     applicants can seek private capital in order to receive final 
     approval.
       (B) Mechanisms.--In carrying out this paragraph, the 
     Secretary shall consider using mechanisms such as--
       (i) a system for conditional pre-approval that informs 
     applicants that final applicants will be approved, if 
     established conditions are met;
       (ii) clear guidelines that communicate to applicants what 
     level of performance on eligibility criteria will ensure 
     approval for credit support or resale;
       (iii) in the case of an applicant portfolio of more than 
     300 loans or other financial arrangement, an expedited review 
     based on statistical sampling to ensure that the loan or 
     other financial arrangement meets the eligibility criteria; 
     and
       (iv) in the case of an applicant with a demonstrated track 
     record with respect to successfully originating eligible 
     loans or other financial arrangements and who meets 
     appropriate other criteria determined by the Secretary, a 
     system for delegating responsibility for meeting eligibility 
     criteria that includes appropriate protections such as buy-
     back mechanisms in the event criteria are determined not to 
     have been met.
       (C) Disposition of debt or interest.--The Secretary 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 Secretary may establish requirements, 
     and impose charges or fees, which may be regarded as elements 
     of pricing, for different classes of applicants, originators, 
     sellers, servicers, or services.
       (ii) Classification of applicants, originators, sellers and 
     servicers.--For the purpose of clause (i), the Secretary may 
     classify applicants, originators, sellers and servicers as 
     necessary to promote transparency and liquidity and properly 
     characterize the risk of default.
       (E) Secondary market support.--
       (i) In general.--The Secretary may lend on the security of, 
     and make commitments to lend on the security of, any debt 
     that the Secretary has insured, guaranteed, issued or is 
     authorized to purchase under this section.
       (ii) Authorized actions.--On such terms and conditions as 
     the Secretary may prescribe, the Secretary may--

       (I) give security;
       (II) insure;
       (III) guarantee;
       (IV) purchase;
       (V) sell;
       (VI) pay interest or other return; and
       (VII) issue notes, debentures, bonds, or other obligations 
     or securities.

       (F) Lending activities.--
       (i) In general.--The Secretary shall determine--

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

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

       (I) providing an attractive investment environment for 
     programs that install energy efficiency measures or on-site 
     renewable energy generation technologies;
       (II) making the operations of the Program self-supporting 
     over the long term; and
       (III) advancing the goals established under this Act.

       (G) Exempt securities.--All securities issued, insured, or 
     guaranteed by the Secretary 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.

     SEC. 7. GENERAL PROVISIONS.

       (a) Periodic Reports.--Not later than 1 year after 
     commencement of operation of the Program and at least 
     biannually thereafter, the Secretary 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 the 
     Program in meeting the purpose and goals established by or 
     pursuant to this Act.
       (b) Audits by the Comptroller General.--
       (1) In general.--The programs, activities, receipts, 
     expenditures, and financial transactions of the Program 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 Program, or any agent, representative, attorney, advisor, 
     or consultant retained by the Program, 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 Secretary 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.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     Act $2,000,000,000.
                                 ______