[Congressional Record Volume 156, Number 123 (Tuesday, September 14, 2010)]
[Senate]
[Pages S7091-S7093]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. SHAHEEN (for herself and Ms. Landrieu):
  S. 3780. A bill to establish a building efficiency retrofit loan 
credit support program, a State building revolving fund grant program, 
and a commercial and large building grant program; to the Committee on 
Energy and Natural Resources.
  Mrs. SHAHEEN. Mr. President. I rise today to join with my colleague 
and fellow member of the Senate Energy and Natural Resources Committee, 
Senator Mary Landrieu of Louisiana, to introduce the Recovery Through 
Building Renovation Act of 2010.
  There is enormous potential to reduce our nation's energy consumption 
and create jobs by investing in energy efficiency, especially through 
renovating existing buildings.
  According to the Energy Information Administration, buildings account 
for more than 48 percent of total energy consumption in the United 
States. That is more than transportation sector and more than the 
industrial sector. More than 70 percent of the commercial buildings in 
this country are older than 20 years and these buildings are 
significantly less efficient than buildings built today. Improvements 
to these types of buildings can improve efficiency by 20 to 40 percent 
using widely available technologies and the payback period can be as 
little 5 years.
  These investments in building efficiency pay for themselves and then 
some.
  Most importantly, Senator Landrieu and I view this legislation as 
part of our broader effort here to create jobs and contribute to our 
economic recovery.
  Updating buildings with modern energy efficiency technologies not 
only saves money on energy costs, it also creates jobs. Jobs in the 
construction industry. Jobs in the manufacturing industry. Jobs in the 
retail sector of the economy. These jobs can't be outsourced and they 
are jobs that can serve as an important part of our clean, alternative 
energy economy.
  Yet despite all this potential, there is actually very little of this 
energy efficient renovation taking place because of financial barriers. 
Most commercial buildings are leased and investments in energy 
efficiency by building owners are uncertain because the tenant, not the 
owner, will capture the energy savings. This is often referred to as a 
``split incentive.'' Likewise, lenders typically will not accept 
projected energy savings--even if guaranteed by an energy services 
company--as sufficient collateral to finance a building renovation.
  Our legislation would use the DOE loan guarantee program to help 
unlock private capital and encourage investment in building retrofit 
projects and programs.
  The Recovery Through Building Renovation Act expands the existing DOE 
loan guarantee program to cover buildings in the commercial and 
industrial sectors, in schools and universities, and hospitals so that 
they can be renovated to be more energy efficient.
  Our legislation also establishes a competitive grant program within 
DOE to allow states to capitalize revolving loan funds to renovate 
municipal buildings. This program is modeled after the highly 
successful Texas LoanSTAR program. Finally, it also establishes a DOE 
grant program to capitalize loan loss reserve funds for tax-district 
financing programs, such as property assessed clean energy, or ``PACE'' 
programs, which a number of states are utilizing.
  There is so much potential that exists here and I think we need to 
put existing programs to work, like the loan guarantee program, to 
unlock private capital and reap the benefits that will come from making 
these buildings more energy efficient.
  I encourage my colleagues to support our legislation.
  Mr. President, 1 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. 3780

       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 ``Recovery Through Building 
     Renovation Act of 2010''.

     SEC. 2. BUILDING EFFICIENCY RETROFIT LOAN CREDIT SUPPORT 
                   PROGRAM.

       Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 
     16511 et seq.) is amended by adding at the end the following:

     ``SEC. 1706. BUILDING RETROFIT FINANCING PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Credit support.--The term `credit support' means a 
     guarantee or commitment to issue a guarantee or other forms 
     of credit enhancement to ameliorate risks for efficiency 
     obligations.
       ``(2) Efficiency obligation.--The term `efficiency 
     obligation' means a debt or repayment obligation incurred in 
     connection with financing a project, or a portfolio of such 
     debt or payment obligations.
       ``(3) Project.--The term `project' means the installation 
     of efficiency or renewable energy measures in a building (or 
     in multiple buildings on a given property) that are expected 
     to increase the energy efficiency of the building (including 
     fixtures) in accordance with criteria established by the 
     Secretary.
       ``(b) Eligible Projects.--
       ``(1) In general.--Notwithstanding sections 1703 and 1705, 
     the Secretary may provide credit support under this section, 
     in accordance with section 1702.
       ``(2) Inclusions.--Buildings eligible for credit support 
     under this section include commercial, industrial, municipal, 
     university, school, and hospital facilities that satisfy 
     criteria established by the Secretary.
       ``(c) Guidelines.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall establish 
     guidelines for credit support provided under this section.
       ``(2) Requirements.--The guidelines established by the 
     Secretary under this subsection shall include--
       ``(A) standards for assessing the energy savings that could 
     reasonably be expected to result from a project;
       ``(B) examples of financing mechanisms (and portfolios of 
     such financing mechanisms) that qualify as efficiency 
     obligations;

[[Page S7092]]

       ``(C) the threshold levels of energy savings that a 
     project, at the time of issuance of credit support, shall be 
     reasonably expected to achieve to be eligible for credit 
     support;
       ``(D) the eligibility criteria the Secretary determines to 
     be necessary for making credit support available under this 
     section; and
       ``(E) any lien priority requirements that the Secretary 
     determines to be necessary.
       ``(3) Efficiency obligations.--The financing mechanisms 
     qualified by the Secretary under paragraph (2)(B) may 
     include--
       ``(A) loans, including loans made by the Federal Financing 
     Bank;
       ``(B) power purchase agreements, including energy 
     efficiency power purchase agreements;
       ``(C) energy services agreements, including energy 
     performance contracts;
       ``(D) property assessed clean energy bonds and other tax 
     assessment-based financing mechanisms;
       ``(E) aggregate on-meter agreements that finance retrofit 
     projects; and
       ``(F) any other efficiency obligations the Secretary 
     determines to be appropriate.
       ``(4) Priorities.--In carrying out this section, the 
     Secretary shall prioritize--
       ``(A) the maximization of energy savings with the available 
     credit support funding;
       ``(B) the establishment of a clear application and approval 
     process that allows private building owners, lenders, and 
     investors to reasonably expect to receive credit support for 
     projects that conform to guidelines; and
       ``(C) the distribution of projects receiving credit support 
     under this section across States or geographical regions of 
     the United States.
       ``(5) Minimum energy savings requirement.--
       ``(A) In general.--In carrying out this section, the 
     Secretary shall establish an initial minimum energy savings 
     requirement for eligible projects that, to the maximum extent 
     practicable, results in the greatest amount of energy savings 
     on a per project basis.
       ``(B) Adjustments.--
       ``(i) In general.--Not less than once each year, the 
     Secretary shall adjust the minimum energy savings requirement 
     described in subparagraph (A) and any other credit support 
     terms the Secretary determines to be necessary, including the 
     maximum percentage of the efficiency obligation that may be 
     guaranteed, taking into account market conditions and the 
     available funding.
       ``(ii) Advanced notice.--If the Secretary adjusts the 
     energy savings requirement, the Secretary shall provide at 
     least 90 days advanced public notice.
       ``(d) Limitation.--Notwithstanding section 1702(c), the 
     Secretary shall not issue credit support under this section 
     in an amount that exceeds--
       ``(1) 90 percent of the principal amount of the efficiency 
     obligation that is the subject of the credit support; or
       ``(2) $10,000,000 for any single project.
       ``(e) Aggregation of Projects.--To the extent provided in 
     the guidelines developed in accordance with subsection (c), 
     the Secretary may issue credit support on a portfolio, or 
     pool of projects, that are not required to be geographically 
     contiguous, if each efficiency obligation in the pool 
     fulfills the requirements described in this section.
       ``(f) Application.--
       ``(1) In general.--To be eligible to receive credit support 
     under this section, the applicant shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary determines to be 
     necessary.
       ``(2) Contents.--An application submitted under this 
     section shall include assurances by the applicant that--
       ``(A) each contractor carrying out the project--
       ``(i) meets minimum experience level criteria, including 
     local retrofit experience, as determined by the Secretary; 
     and
       ``(ii) beginning on the date on which credit support is 
     issued, will comply with subchapter IV of chapter 31 of title 
     40, United States Code (commonly known as the ``Davis-Bacon 
     Act'');
       ``(B) the project is reasonably expected to achieve energy 
     savings, as set forth in the application using any 
     methodology that meets the standards described in the program 
     guidelines;
       ``(C) the project meets any technical criteria described in 
     the program guidelines;
       ``(D) the recipient of the credit support and the parties 
     to the efficiency obligation will provide the Secretary 
     with--
       ``(i) any information the Secretary requests to assess the 
     energy savings that result from the project, including 
     historical energy usage data and detailed descriptions of the 
     building work, as described in the program guidelines; and
       ``(ii) permission to access information relating to 
     building operations and usage for the period described in the 
     program guidelines; and
       ``(E) any other assurances that the Secretary determines to 
     be necessary.
       ``(3) Determination.--Not later than 90 days after 
     receiving an application, the Secretary shall make a final 
     determination on the application, which may include requests 
     for additional information.
       ``(g) Fees.--
       ``(1) In general.--In addition to the fees required by 
     section 1702(h)(1), the Secretary may charge reasonable fees 
     for credit support provided under this section.
       ``(2) Availability.--Fees collected under this section 
     shall be subject to section 1702(h)(2).
       ``(h) Underwriting.--The Secretary may delegate the 
     underwriting activities under this section to 1 or more 
     entities that the Secretary determines to be qualified.
       ``(i) Report.--Not later than 1 year after commencement of 
     the program, the Secretary shall submit to the appropriate 
     committees of Congress a report that describes in reasonable 
     detail--
       ``(1) the manner in which this section is being carried 
     out;
       ``(2) the number and type of projects supported;
       ``(3) the types of funding mechanisms used to provide 
     credit support to projects;
       ``(4) the energy savings expected to result from projects 
     supported by this section;
       ``(5) any tracking efforts the Secretary is using to 
     calculate the actual energy savings produced by the projects; 
     and
       ``(6) any plans to improve the tracking efforts described 
     in paragraph (5).
       ``(j) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $500,000,000 for the period of fiscal years 2011 through 
     2020, to remain available until expended.
       ``(2) Administrative costs.--Not more than 1 percent of any 
     amounts made available to the Secretary under paragraph (1) 
     may be used by the Secretary for administrative costs 
     incurred in carrying out this section.''.

     SEC. 3. MUSH BUILDING REVOLVING FUND.

       (a) Definitions.--In this section:
       (1) Project.--The term ``project'' means an energy 
     efficiency retrofit project that meets the terms of this 
     section and criteria determined to be necessary by the 
     Secretary.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (3) State.--The term ``State'' has the meaning given the 
     term in section 412 of the Energy Conservation and Production 
     Act (42 U.S.C. 6862).
       (b) Establishment.--The Secretary shall establish the MUSH 
     Building Efficiency Program to provide grants to State 
     revolving funds to finance projects.
       (c) Eligibility.--To be eligible to receive a grant under 
     this program, a State shall have, or propose to establish, a 
     program to finance or support building improvement projects 
     on buildings that are owned or controlled by--
       (1) a municipality;
       (2) a State or public university, including a community 
     college;
       (3) a school or school district, including a technical 
     school or a vocational school; and
       (4) a State, city, or other publicly owned hospital.
       (d) Terms and Conditions.--
       (1) In general.--As a condition of receiving a grant under 
     this section, a State shall--
       (A) develop technical energy assessment report guidelines 
     for each project to be carried out under this section;
       (B) develop procedures--
       (i) to monitor energy consumption prior to, and for at 
     least 3 years after, the completion of each project carried 
     out using State revolving funds;
       (ii) to make data publicly available in aggregated summary 
     reports regarding the performance of each project carried out 
     using State revolving funds; and
       (iii) to analyze energy savings, in kilowatt hours and 
     dollars, before and for at least 3 years after the completion 
     of each project carried out using State revolving funds; and
       (C) incorporate training on audit techniques in any 
     guidelines or procedures developed for State revolving funds 
     that receive a grant under this section.
       (2) Maximum repayment term.--A State receiving a grant 
     under this section shall not enter into any obligations with 
     a repayment term that exceeds 15 years.
       (3) Conflict of interest.--A commissioning organization or 
     individual that receives compensation for professional 
     services relating to a project carried out under this section 
     shall not acquire any direct or indirect financial interest 
     in the sale of energy efficiency equipment or products that 
     are directly related to the project.
       (e) Report.--Not later than 1 year after commencement of 
     the MUSH Building Efficiency Program, the Secretary shall 
     submit to the appropriate committees of Congress a report 
     that--
       (1) describes in detail the manner in which this section 
     has been carried out;
       (2) aggregates the project performance data of the State 
     programs receiving a grant under this section; and
       (3) includes any recommendations of the Secretary on 
     modifications that may improve the grant program.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as are 
     necessary.

     SEC. 4. ENERGY EFFICIENCY SUPPORT PROGRAM.

       (a) Definitions.--In this section:
       (1) Project.--The term ``project'' means an energy 
     efficiency retrofit project that meets the criteria described 
     in subsection (c).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Establishment.--The Secretary shall establish a program 
     that provides grants to State or tribal governments to 
     support property assessed clean energy bonds and other tax 
     assessment-based financing mechanisms to support building 
     retrofits that meet the criteria described in subsection (c).

[[Page S7093]]

       (c) Authorization, Terms, and Conditions.--
       (1) Authorization.--
       (A) In general.--In carrying out this section, the 
     Secretary shall provide grants to capitalize loan loss 
     reserves for property assessed clean energy bonds and other 
     tax assessment-based financing mechanisms managed by State or 
     tribal governments.
       (B) Maximum.--No eligible entity shall receive a grant 
     under this section that exceeds a total amount of 
     $10,000,000.
       (2) Eligible programs.--
       (A) In general.--A grant under this section shall be used 
     to finance building retrofit projects that are expected to 
     produce significant energy efficiency gains.
       (B) Use of funds.--A State or tribal government that 
     receives a grant under this section shall use the funds to 
     provide credit enhancements or establish other loan loss 
     reserve funds approved by the Secretary.
       (C) Conditions.--As a condition of receiving a grant under 
     this section, a State or tribal government shall provide to 
     the Secretary such assurances as the Secretary determines to 
     be necessary, including assurances that the State or tribal 
     government shall--
       (i) provide support for each financing mechanism approved 
     by the Secretary, including property assessed clean energy 
     bonds and tax lien financing;
       (ii) for each project receiving financial assistance under 
     this section, develop comprehensive procedures for--

       (I) monitoring energy consumption prior to the commencement 
     of, and at least 3 years after completion of, each project; 
     and
       (II) analyzing energy savings achieved, measured in 
     kilowatt hours and dollars, prior to the commencement of, and 
     at least 3 years after completion of, each project; and
       (III) making data recorded from each project publicly 
     available in aggregated summary reports describing the 
     performance of each project; and

       (D) incorporate training on audit techniques in any 
     guidelines developed for the capital loan loss reserves.
       (d) Program Coordination and Aggregation.--Subject to 
     subsection (c)(1) and approval of the Secretary, eligible 
     State or tribal governments may combine grants provided under 
     this section to create multijurisdictional programs to 
     support projects that meet the requirements of this section.
       (e) Report.--Not later than 1 year after the commencement 
     of the program, the Secretary shall submit to the appropriate 
     committees of Congress a report that--
       (1) describes in detail the manner in which this section 
     has been carried out;
       (2) aggregates the project performance data of the State, 
     local, and tribal government programs receiving funding under 
     this section; and
       (3) includes any recommendations of the Secretary on 
     modifications that may improve the grant program.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as are 
     necessary.

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