[Congressional Record (Bound Edition), Volume 154 (2008), Part 10]
[Senate]
[Pages 14279-14284]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SMITH (for himself and Ms. Cantwell):
  S. 3228. A bill to amend the Internal Revenue Code of 1986 to allow a 
credit for green roofs; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to introduce a bill to provide 
a residential and commercial tax credit for the installation of green 
roofs. I am pleased to have my colleague Senator Cantwell join me in 
this effort by serving as original cosponsor of this bill.
  The bill creates a tax credit for the installation of green roofs on 
residential and commercial property. On the residential side, the 
credit is 30 percent of the cost of installing a green roof, with a cap 
of $2,000. On the commercial side, the credit is 10 percent of the cost 
installing a green roof, without a cap. In my home state of Oregon, the 
city of Portland utilizes green roofs extensively. To date, the city 
has installed or plans to install over 100 green roofs.
  Green roofs provide many environmental and cost benefits. One of the 
more significant benefits provided by green roofs is stormwater 
management and energy savings. When it rains, water washes over roofs, 
streets, driveways, sidewalks, parking lots, and other surfaces. Rain 
water picks up pollutants, such as oil, pesticides, metals, chemicals, 
and soil. The polluted stormwater then drains into the storm system 
that eventually makes it way into our rivers and streams. The 
pollutants can endanger water quality of lakes, rivers, streams and 
waterways, making them unhealthy for people, fish, and wildlife. During 
rainstorms, green roofs act as a sponge, absorbing much of the water 
that would otherwise run off. The roofs serve as a natural rainwater 
filter by utilizing the vegetation root system's natural filtering 
processes. The benefit of this process increases as the vegetation on 
the rooftop matures.

[[Page 14280]]

  In addition to the storm water benefits, green roofs also absorb air 
pollution, collect airborne particulates, store carbon, provide living 
environments that provide habitats for birds, insects and other small 
animals, reduce outside noise transfer and insulate buildings from high 
temperatures.
  I believe that we have a responsibility to encourage efforts to 
conserve our natural resources. Oregon continues to build on a long 
history of innovation in environmental policy and practice. We urge our 
colleagues to support this important piece of legislation.
                                 ______
                                 
      By Ms. CANTWELL:
  S. 3229. A bill to increase the safety of the crew and passengers in 
air ambulances; to the Committee on Commerce, Science, and 
Transportation.
  Ms. CANTWELL. Mr. President, I come to the floor today to ask for my 
colleagues' support for the Air Medical Service Safety Improvement Act 
of 2008, a measure that redefines our commitment to improving the 
safety for the flight crews, flight nurses, and passengers aboard 
emergency air medical service helicopters and fixed wing aircraft.
  These EMS aviation operations provide an important service to the 
public by transporting seriously ill patients or donor organs to 
emergency care facilities. Each year, on average, air medical companies 
transport about 350,000 patients by helicopter and 100,000 by fixed 
wing aircraft.
  Providing emergency air medical service is dangerous work. 
Unfortunately, we have been reminded of this fact all too many times 
this year, most recently by the tragic crash in Arizona.
  I first became involved in the issue of emergency air medical service 
safety when an EMS helicopter crashed near my hometown in Washington 
state. On September 29, 2005, an Airlift Northwest EMS transport 
helicopter crashed into the waters of Puget Sound at Browns Bay, just 
north of Edmonds, Washington. On board were pilot Steve Smith, and 
nurses Erin Reed and Lois Suzuki. There were no survivors. Over time, I 
have communicated with both Erin's mother and sister about their loss.
  The cause of the crash remains unknown as EMS transport helicopters 
are not required to have a ``black box'' or flight data recorder on 
board, and only part of the helicopter could be recovered from Puget 
Sound. Some in the area think the wind, rain, and heavy fog were to 
blame. Others claim that the helicopter sounded like it was having 
engine trouble.
  All we do know is that three people dedicated to saving lives were 
lost in the ocean that night. And sadly, their story is not uncommon.
  According to a study by Johns Hopkins University, one in four medical 
helicopters will crash during its 15 years of service. In just the last 
six months, there have been nine medical helicopter crashes and 16 
deaths.
  This alarming epidemic of accidents has opened the eyes of the 
Federal Aviation Administration, National Transportation Safety Board 
and policymakers in recent days. But the recent spike in accidents is 
not a new trend. In fact, between January 2002 and January 2005, there 
were 55 crashes of medical helicopters. On January 25, 2006, the NTSB 
released a report identifying recurring gaps in safety that must be 
addressed, including: Less stringent requirements for emergency medical 
operations conducted without patients on board; a lack of aviation 
flight risk-evaluation programs; a lack of consistent, comprehensive 
flight dispatch procedures; and no requirements to use technologies 
such as terrain awareness and warning systems that have the power to 
enhance flight safety.
  At my request, Section 508 of S. 1300, a bill to reauthorize the FAA 
incorporated the NTSB recommendations for addressing these gaps. 
Subsequent to that bill's introduction in the spring of 2007, I had the 
opportunity to discuss with stakeholders how to improve upon the 
language. The bill I am introducing today is essentially the amendment 
I filed this May when the FAA reauthorization bill was on the floor. 
Given the uncertain status of that legislation, and in light of the 
recent events, I felt the urgency to transform the amendment into 
stand-alone legislation.
  This bill will implement new procedures and improve standards already 
in place through strengthened safety requirements, comprehensive flight 
dispatch and flight following procedures, improved situation awareness 
of helicopter air crews, and better data available to NTSB 
investigators at crash sites.
  It is time to put black boxes in these helicopters.
  It is time to require the same safety standards regardless of whether 
or not a patient is on board.
  It is time to evaluate potential risks before take-off.
  It is time to improve the situational awareness of air medical flight 
crews.
  If not, we are bound to witness more tragedies.
  I am committed to these changes and I ask my colleagues to lend their 
support in making the skies safer for the men and women who dedicate 
their lives to getting critically injured patients the medical 
attention they need.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 3233. A bill to promote development of a 21st century energy 
system to increase United States competitiveness in the world energy 
technology marketplace, 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 to begin to address our need 
to accelerate the deployment of advanced, clean energy technologies and 
help establish the United States as a leader in these technologies that 
will be in great demand in the coming years.
  The Energy Committee has had numerous hearings on the challenges we 
face in the coming decades regarding new energy. Meeting our energy 
security needs while diverting from our current pathway towards 
catastrophic climate change will require significant investment. I'm 
convinced that making this investment is not only the right thing to do 
for future generations, but that it will pay real dividends to the U.S. 
economy if we can position ourselves to lead the rest of the world in 
this necessary transition.
  There have been many good proposals advanced to begin our journey 
down the path towards a more sustainable energy policy. Some of these 
proposals have even been enacted into law through energy bills in 2005 
and 2007, but I think there is general agreement in this body that much 
remains to be done.
  The missing ingredient that this bill seeks to supply concerns 
traversing the so-called ``valley of death.'' This is the part of the 
development cycle of a new technology when the technology has been 
demonstrated at a lab or pilot scale and is ready to be demonstrated at 
a commercial scale. It is here, we are told, where new technologies, 
and particularly capital-intensive energy technologies, often languish 
for want of funding. Banks traditionally aim for moderate risk and 
predictable returns and simply have very little incentive to bet on 
unfamiliar technologies with speculative returns. Venture capitalists, 
who are more comfortable with technology risk, simply can't supply the 
billions of dollars necessary to push these technologies forward at the 
pace we need.
  This bill can help fill this financing gap between the venture 
capital community and the banking community and I hope it will act as a 
catalyst for continuing conversation on this vital topic.
  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. 3233

       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 the

[[Page 14281]]

     advanced, clean energy technologies required for the 21st 
     century through the establishment of a 21st Century Energy 
     Deployment Corporation that will provide for an attractive 
     investment environment through--
       (1) the development of a stable secondary market for clean 
     energy technology deployment loans; and
       (2) the cooperation and support of the private capital 
     market in order to promote access to affordable debt 
     financing for accelerated deployment of advanced clean energy 
     technologies and first-of-a-kind commercial deployments.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Advisory council.--The term ``Advisory Council'' means 
     the Energy Technology Advisory Council of the Corporation.
       (2) Board of directors.--The term ``Board of Directors'' 
     means the Board of Directors of the Corporation.
       (3) Breakthrough technology.--The term ``breakthrough 
     technology'' means a clean energy technology that--
       (A) receives a high rating according to the criteria 
     established by the Advisory Council for meeting the 
     objectives of this Act; but
       (B) has been impeded in the development of the technology 
     due to perceived high technical risk by the commercial 
     financial sector.
       (4) Clean energy technology.--The term ``clean energy 
     technology'' means a technology related to the production, 
     use, transmission, control, or conservation of energy that 
     will contribute to meeting objectives of the United States--
       (A) to reduce the need for additional energy supplies by 
     using existing energy supplies with greater efficiency or by 
     transmitting energy with greater effectiveness through United 
     States energy infrastructure;
       (B) to diversify the sources of energy supply of the United 
     States to include supplies that are environmentally 
     sustainable; or
       (C) to stabilize atmospheric greenhouse gas levels thorough 
     reduction, avoidance, and sequestration of energy-related 
     emissions.
       (5) Corporation.--The term ``Corporation'' means the 21st 
     Century Energy Deployment Corporation established by section 
     5.
       (6) 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).
       (7) Novel technology.--The term ``novel technology'' means 
     a clean energy technology that, as determined by the Advisory 
     Council or the Secretary--
       (A) has been sufficiently demonstrated; and
       (B) has not been widely deployed on a commercial scale.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (9) Security.--The term ``security'' has the meaning given 
     the term in section 2 of the Securities Act of 1933 (15 
     U.S.C. 77b).
       (10) 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.
       (11) Technology risk.--The term ``technology risk'' means 
     risk of project failure generally considered by lenders due 
     to the lack of operating applications of the technology.

     SEC. 4. 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 near-, medi-
     um-, and long-term goals for the deployment of clean energy 
     technologies through the Corporation to establish or 
     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 end the reliance of the United States on foreign sources 
     of energy and insulate consumers from the price shocks 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 in 
     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 in 
     the industrial sector;
       (7) domestic manufacturing of clean energy technologies on 
     a scale that is sufficient to make the cost to the consumer 
     less than current technologies;
       (8) domestic production of raw materials (such as steel, 
     cement, and iron) using clean energy technologies so that the 
     United States will become a world leader in sustainable 
     production of the materials;
       (9) a robust, efficient, and interactive electricity 
     transmission grid that will allow for the implementation of 
     clean energy technologies, distributed generation, and 
     demand-response in each State; and
       (10) such other goals as the Secretary and Advisory Council 
     determine to be consistent with the purposes of this Act.
       (b) Performance Targets.--Taking into account the goals 
     established under subsection (a), the Advisory Council shall 
     publish 5- and 10-year numerical targets, and annual interim 
     targets, to guide and measure the performance of the 
     Corporation toward supporting the deployment of clean energy 
     technologies and achieving other goals developed under that 
     subsection.
       (c) Initial Targets.--Until the first publication by the 
     Advisory Council of targets under subsection (b), in 
     establishing the deployment priorities of the Corporation, 
     the Corporation shall consider deploying--
       (1) commercial-scale carbon capture and storage from 
     electricity generation capturing at least 10,000,000 short 
     tons per year by 2015;
       (2) solar photovoltaic systems with a power production cost 
     of 14 cents per kilowatt-hour;
       (3) concentrated solar power systems with a power 
     production cost of 6 cents per kilowatt-hour;
       (4) wind power systems greater than 100 kilowatts with a 
     power production cost of--
       (A) 3.6 cents per kilowatt-hour by 2012 for land-based 
     sites with average wind speeds of 13 miles per hour; and
       (B) 5 cents per kilowatt-hour by 2015 for offshore wind 
     systems with average wind speeds of 15 miles per hour;
       (5) new enhanced geothermal systems generation capacity 
     with a power production cost of 5 cents per kilowatt-hour by 
     2023;
       (6) technologies to realize a 20 percent improvement in 
     energy intensity by energy-intensive industries by 2020; and
       (7) advanced energy systems to achieve net-zero energy use 
     in new residential and commercial buildings by 2025 through a 
     60 percent-reduction in building energy use.
       (d) Portfolio Requirement.--To the extent practicable and 
     consistent with the purpose of this Act, not less than 75 
     percent of the support provided by the Corporation under this 
     section shall be for breakthrough technologies.
       (e) Revisions.--
       (1) Goals.--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.
       (2) Performance targets.--The Advisory Council shall revise 
     the performance targets under subsection (b), from time to 
     time as appropriate, to account for advances in technology 
     and changes in energy policy.

     SEC. 5. 21ST CENTURY ENERGY DEPLOYMENT CORPORATION.

       (a) Establishment.--
       (1) In general.--There is established the 21st Century 
     Energy Deployment Corporation, which shall be a body 
     corporate under the direction of a Board of Directors.
       (2) Board of directors.--Subject to other provisions of law 
     (including regulations), the Board of Directors shall 
     determine the general policies that govern the operations of 
     the Corporation.
       (3) Offices.--
       (A) Principal office.--The Corporation shall--
       (i) maintain the principal office of the Corporation 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 agencies and offices.--The Corporation may 
     establish other agencies or offices in such other places as 
     the Corporation considers necessary or appropriate for the 
     conduct of the business of the Corporation.
       (b) Board of Directors.--
       (1) In general.--The Board of Directors shall consist of--
       (A) the Secretary, who shall serve an ex-officio member of 
     the Board; and
       (B) 9 members who shall--
       (i) be appointed by the President for staggered 4-year 
     terms, as determined by the President; and
       (ii) have experience in banking or financial services 
     relevant to the operations of the Corporation, including--

       (I) at least 1 individual with substantial experience in 
     the development of energy projects;
       (II) at least 1 individual with experience in the electric 
     utility industry; and
       (III) at least 1 individual with experience in the banking 
     industry.

       (2) Removal.--Any appointed member of the Board of 
     Directors may be removed from office by the President for 
     good cause.
       (3) Vacancies.--Any appointive 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.
       (4) Compensation; travel expenses.--A member of the Board 
     of Directors shall not be compensated for service on the 
     Board of Directors but shall be allowed travel expenses, 
     including per diem in lieu of subsistence, at rates 
     authorized for an employee of an agency under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the home or regular place of business of the member in the 
     performance of the duties of the Board of Directors.
       (c) Energy Technology Advisory Council.--
       (1) In general.--The Corporation shall have an Energy 
     Technology Advisory Council consisting of--

[[Page 14282]]

       (A) 5 members selected by the Secretary; and
       (B) 3 members selected by the Board of Directors.
       (2) Qualifications.--The members of the Advisory Council 
     shall--
       (A) have relevant scientific expertise; and
       (B) include representatives of--
       (i) the academic community;
       (ii) the private research community; and
       (iii) National Laboratories.
       (3) Duties.--The Advisory Council shall--
       (A) develop a rating system for projects and clean energy 
     technologies to determine how well the projects and clean 
     energy technologies address the purpose of this Act and 
     establish a priority for the projects and clean energy 
     technologies for financial assistance under this Act, taking 
     into account--
       (i) the extent to which a project or clean energy 
     technology will enhance the energy security of the United 
     States;
       (ii) the potential the project or clean energy technology 
     has to enhance the competitiveness of the United States in 
     providing energy technologies likely to be in demand 
     throughout the world;
       (iii) the potential benefits of the project or clean energy 
     technology in averting climate change; and
       (iv) the potential of the technology, once deployed, to 
     become financially self-sustaining;
       (B) advise on the technological approaches that should be 
     supported by the Corporation to meet the technology 
     deployment goals established by the Secretary; and
       (C) set risk and default rate targets for individual 
     technologies, such that the maximum practicable ratio of 
     breakthrough technologies to novel technologies is developed.
       (4) Term.--
       (A) In general.--Members of the Advisory Council shall have 
     3-year staggered terms, as determined by the Secretary and 
     the Board of Directors.
       (B) Reappointment.--A member of the Advisory Council may be 
     reappointed.
       (5) Compensation.--A member of the Advisory Council shall 
     serve without compensation but shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for an employee of an agency under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the home or regular place of business of the member in the 
     performance of the duties of the Advisory Council.

     SEC. 6. CLEAN ENERGY TECHNOLOGY DEPLOYMENT SECURITIZATION.

       (a) In General.--The Corporation may purchase, and make 
     commitments to purchase, any debt instrument associated with 
     the deployment of clean energy technologies.
       (b) Disposition of Debt or Interest.--The Corporation may 
     hold and deal with, and sell or otherwise dispose of, 
     pursuant to commitments or otherwise, any debt described in 
     subsection (a) or interest in the debt.
       (c) Pricing.--
       (1) In general.--The Corporation may establish 
     requirements, and impose charges or fees, which may be 
     regarded as elements of pricing, for different classes of 
     sellers or services.
       (2) Classification of sellers.--For the purpose of 
     paragraph (1), the Corporation may classify sellers as 
     necessary to promote transparency and liquidity and properly 
     characterize the risk of default.
       (d) Eligibility.--The Corporation shall establish criteria 
     and mechanisms such that, to the maximum extent practicable, 
     sellers will be able to determine the eligibility of loans 
     for resale at the time of initial lending.
       (e) Aggregation of Small Scale Projects.--The Corporation 
     shall work with Federal, State, local, and private sector 
     entities to develop debt instruments that aggregate projects 
     for clean energy technology deployments on a residential or 
     small commercial scale.
       (f) Securitization.--
       (1) In general.--The Corporation may lend on the security 
     of, and make commitments to lend on the security of, any debt 
     that the Corporation is authorized to purchase under this 
     section.
       (2) Authorized actions.--On such terms and conditions as 
     the Corporation may prescribe, the Corporation may--
       (A) borrow;
       (B) give security;
       (C) pay interest or other return; and
       (D) issue notes, debentures, bonds, or other obligations or 
     securities.
       (g) Lending Activities.--
       (1) In general.--The Corporation shall determine--
       (A) the volume of the lending activities of the 
     Corporation; and
       (B) the type of loan ratios, risk profiles, interest rates, 
     maturities, and charges or fees in the secondary market 
     operations of the Corporation.
       (2) Objectives.--Determinations under paragraph (1) shall 
     be consistent with the objectives of--
       (A) providing an attractive investment environment for 
     clean energy technologies;
       (B) making the operations of the Corporation self-
     supporting over the long term; and
       (C) meeting the targets established by the Advisory 
     Council.
       (h) No Federal Guarantee.--The Corporation shall insert 
     appropriate language in all of the obligations and securities 
     of the Corporation issued under this section that clearly 
     indicates that the obligations and securities (together with 
     the interest)--
       (1) are not guaranteed by the United States; and
       (2) do not constitute a debt or obligation of the United 
     States or any agency or instrumentality other than the 
     Corporation.
       (i) Exempt Securities.--All securities issued or guaranteed 
     by the Corporation 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.
       (j) Other Authorized Programs.--
       (1) In general.--The Secretary may contract with the 
     Corporation to provide 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 
     under contract with the Secretary, the Corporation shall, to 
     the maximum extent practicable (as determined by the 
     Corporation)--
       (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. 7. FEDERAL OWNERSHIP OF OBLIGATIONS.

       (a) In General.--In order to maintain sufficient liquidity, 
     the Corporation may issue notes, debentures, bonds, or other 
     obligations for purchase by the Secretary of the Treasury.
       (b) Public Debt Transactions.--For the purpose of 
     subsection (a)--
       (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.
       (c) Maximum Outstanding Holding.--The Secretary of the 
     Treasury shall not purchase any obligations under this 
     section if the purchase would increase the aggregate 
     principal amount of the outstanding holdings of obligations 
     under this section by the Secretary to an amount that is 
     greater than $1,500,000,000.
       (d) 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 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.
       (e) Sale of Obligations.--The Secretary of the Treasury may 
     at any time sell, on terms and conditions and at prices 
     determined by the Secretary, any of the obligations acquired 
     by the Secretary under this section.
       (f) 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. 8. GENERAL PROVISIONS.

       (a) Immunity From Impairment, Limitation, or Restriction.--
       (1) In general.--All rights and remedies of the Corporation 
     (including any rights and remedies of the Corporation 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 Corporation 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 Corporation may conduct the business of 
     the Corporation without regard to any qualification or law of 
     any State relating to incorporation.
       (b) Powers.--Subject to subsection (c), the Corporation 
     shall have all the powers of a private corporation 
     incorporated under the District of Columbia Business 
     Corporation Act (D.C. Code, sec. 29 et seq.).
       (c) Administration.--
       (1) Performance-based compensation.--A significant portion 
     of potential compensation of all executive officers of the 
     Corporation shall be based on the performance of the 
     Corporation, all without regard to any other law except as 
     may be provided by the Corporation or by a law enacted after 
     the date of enactment of this Act that expressly limits this 
     paragraph.
       (2) Use of other agencies.--With the consent of a 
     department, establishment, or instrumentality (including any 
     field office), the Corporation may--
       (A) use and act through any department, establishment, or 
     instrumentality;
       (B) use, and pay compensation for, information, services, 
     facilities, and personnel of

[[Page 14283]]

     the department, establishment, or instrumentality.
       (d) Financial Matters.--
       (1) Investments.--Funds of the Corporation may be invested 
     in such investments as the Board of Directors may prescribe.
       (2) Fiscal agents.--
       (A) In general.--Any Federal Reserve bank or any bank as to 
     which at the time of the designation of the bank by the 
     Corporation 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 Corporation as a 
     depositary or custodian or as a fiscal or other agent of the 
     Corporation.
       (B) Depositary of public money.--If designated for that 
     purpose by the Secretary of the Treasury, the Corporation--
       (i) shall be a depositary of public money, under such 
     regulations as may be promulgated by the Secretary of the 
     Treasury;
       (ii) may also be employed as a fiscal or other agent of the 
     United States; and
       (iii) shall perform all such reasonable duties of such 
     depositary or agent as may be required.
       (e) Taxation.--
       (1) In general.--Subject to paragraph (2), the Corporation 
     (including the franchise, activities, capital, reserves, 
     surplus, and income of the Corporation) shall be exempt from 
     all taxation imposed by any State or local political 
     subdivision of a State.
       (2) Real property.--Any real property of the Corporation 
     shall be subject to taxation by a State or political 
     subdivision of a State to the same extent according to the 
     value of the real property as other real property is taxed.
       (f) Jurisdiction.--Notwithstanding section 1349 of title 
     28, United States Code, or any other provision of law--
       (1) the Corporation shall be considered an agency covered 
     by sections 1345 and 1442 of title 28, United States Code;
       (2) all civil actions to which the Corporation 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 Corporation is a party may 
     at any time before trial be removed by the Corporation, 
     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 Corporation is located.
       (g) Annual Reports.--Not later than 1 year after 
     incorporation of the Corporation and annually thereafter, the 
     Corporation shall submit to the Committee on Energy and 
     Natural Resources of the Senate and the Committee on Energy 
     and Commerce in the House a report that includes--
       (1) a description of--
       (A) the technologies supported by activities of the 
     Corporation and how the activities advance the purposes of 
     this Act;
       (B) the performance of the Corporation on meeting the goals 
     established by the Secretary;
       (C) the comparability of the compensation policies of the 
     Corporation with the compensation policies of other similar 
     businesses;
       (D) in the aggregate, the percentage of total cash 
     compensation and payments under employee benefit plans (which 
     shall be defined in a manner consistent with the proxy 
     statement of the Corporation for the annual meeting of 
     shareholders for the preceding year) earned by executive 
     officers of the Corporation during the preceding year that 
     was based on the performance of the Corporation; and
       (E) the comparability of the financial performance of the 
     Corporation with the performance of other similar businesses; 
     and
       (2) the proxy statement of the Corporation for the annual 
     meeting of shareholders for the preceding year.
       (h) Audits by the Comptroller General.--
       (1) In general.--The programs, activities, receipts, 
     expenditures, and financial transactions of the Corporation 
     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 Corporation 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 be enforceable pursuant to section 716(c) of 
     title 31, United States Code.
       (3) Report.--
       (A) In general.--The Comptroller General shall submit to 
     Congress a report on each audit conducted under this 
     subsection.
       (B) Contents.--The report shall include a description of--
       (i) the scope of the audit;
       (ii) any surplus or deficit;
       (iii) income and expenses;
       (iv) sources and application of funds;
       (v) such comments and information as is necessary to inform 
     Congress of the financial operations and condition of the 
     Corporation; and
       (vi) any recommendations as the Comptroller General 
     considers appropriate.
       (4) 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.--On the request of the Comptroller 
     General, the Corporation shall reimburse the General 
     Accountability Office for the full cost of any audit 
     conducted by the Comptroller General under this subsection.
       (i) Annual Independent Audit.--
       (1) In general.--The Corporation shall have an annual 
     independent audit made of the financial statements of the 
     Corporation by an independent public accountant in accordance 
     with generally accepted auditing standards.
       (2) Content.--In conducting an audit under this subsection, 
     the independent public accountant shall determine and report 
     on whether the financial statements of the Corporation--
       (A) are presented fairly in accordance with generally 
     accepted accounting principles; and
       (B) to the extent determined necessary by the Director, 
     comply with any disclosure requirements imposed under this 
     Act.

     SEC. 9. OVERSIGHT BY THE SECRETARY.

       (a) Duties.--The Secretary shall--
       (1) oversee the operations of the Corporation; and
       (2) ensure that--
       (A) the Corporation operates in a safe and sound manner, 
     including maintenance of adequate capital and internal 
     controls;
       (B) the operations and activities of the Corporation foster 
     liquid, efficient, competitive, and resilient energy finance 
     markets;
       (C) the Corporation carries out the statutory mission of 
     the Corporation only through activities that are authorized 
     under and consistent with this Act; and
       (D) the activities of the Corporation and the manner in 
     which the Corporation is operated is consistent with the 
     public interest.
       (b) Financial Reports.--
       (1) In general.--The Corporation shall submit to the 
     Secretary annual and quarterly reports of the financial 
     condition and operations of the Corporation 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 Corporation), signed by the chief executive 
     officer and chief accounting or financial officer of the 
     Corporation, of--
       (i) the effectiveness of the internal control structure and 
     procedures of the Corporation; and
       (ii) the compliance of the Corporation with designated 
     safety and soundness laws.
       (3) Special reports.--The Secretary may require the 
     Corporation to submit other reports on the condition 
     (including financial condition), management, activities, or 
     operations of the Corporation, as the Secretary considers 
     appropriate.
       (4) Accuracy.--Each report of financial condition shall 
     contain a declaration by the president, vice president, 
     treasurer, or any other officer designated by the Board of 
     Directors of the Corporation to make the declaration, that 
     the report is true and correct to the best of the knowledge 
     and belief of the officer.
       (c) Management and Operation Standards.--The Secretary 
     shall establish standards, by regulation or guideline, for 
     the Corporation relating to--
       (1) the adequacy of internal controls and information 
     systems;
       (2) the independence and adequacy of internal audit 
     systems;
       (3) the management of market risk, including standards to 
     provide for systems that measure, monitor, and control market 
     risks

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     and, as warranted, to establish limitations on market risk;
       (4) risk management processes, including the adequacy of 
     oversight by senior management and the Board of Directors and 
     of processes and policies to measure, monitor, and control 
     material risks, including reputational risks, and for 
     adequate, well-tested business resumption plans in the case 
     of disruptive events;
       (5) the management of credit and counterparty risk, 
     including systems to identify concentrations of credit risk 
     and prudential limits to restrict the exposure of the 
     Corporation to a single counterparty or groups of related 
     counterparties;
       (6) the maintenance of adequate records, in accordance with 
     consistent accounting policies and practices to enable the 
     Secretary to evaluate the financial condition of the 
     Corporation; and
       (7) such other operational and management standards as the 
     Secretary determines to be appropriate.
       (d) Failure to Meet Standards.--
       (1) In general.--If the Secretary determines that the 
     Corporation fails to meet any standard established under 
     subsection (c), the Secretary may require the Corporation to 
     submit an acceptable plan to the Secretary within a 
     reasonable time that specifies the actions that the 
     Corporation will take to correct the deficiency.
       (2) Required order on failure to submit or implement 
     plan.--If the Corporation fails to submit an acceptable plan 
     within the time specified by the Secretary or fails in any 
     material respect to implement a plan accepted by the 
     Secretary, the Secretary shall, by order, require the 
     Corporation to correct the deficiency.
       (e) Prohibition and Withholding of Executive 
     Compensation.--
       (1) In general.--The Secretary shall prohibit the 
     Corporation from providing compensation to any executive 
     officer that is not reasonable and comparable with 
     compensation for employment in other similar businesses 
     (including other publicly held financial institutions or 
     major financial services companies) involving similar duties 
     and responsibilities.
       (2) Factors.--In making any determination under paragraph 
     (1), the Secretary may take into consideration any factors 
     the Secretary considers relevant, including any wrongdoing on 
     the part of the executive officer.
       (3) Withholding of compensation.--In carrying out paragraph 
     (1), the Secretary may require the Corporation to withhold 
     any payment, transfer, or disbursement of compensation to an 
     executive officer, or to place such compensation in an escrow 
     account, during the review of reasonableness and 
     comparability of compensation.
       (4) Prohibition of setting compensation.--In carrying out 
     paragraph (1), the Secretary may not prescribe or set a 
     specific level or range of compensation.

     SEC. 10. ISSUANCE OF COMMON STOCK TO EXPAND OPERATIONS.

       (a) In General.--Not later than 5 years after the date of 
     enactment of this Act, the Corporation may prepare a 
     strategic plan for issuing common stock to raise the capital 
     needed to expand the operations of the Corporation in 
     carrying out this Act.
       (b) Consideration of Alternatives for Governance.--The 
     strategic plan shall include consideration of alternatives 
     for restructuring the Board of Directors to allow for a 
     majority of the Members to be selected by voting common 
     stockholders.
       (c) Evaluation and Recommendation.--The strategic plan 
     shall--
       (1) evaluate the relative merits of the alternatives 
     considered; and
       (2) include the recommendation of the Corporation on a 
     proposed alternative.
       (d) Transmittal.--On completion of the strategic plan, the 
     Corporation shall submit copies of the strategic plan to the 
     President and Congress, along with any recommendations for 
     legislative changes required to implement the plan.
       (e) Implementation.--Subject to subsections (f) and (g), 
     subsequent to submitting a strategic plan pursuant to this 
     section, the Corporation may implement the strategic plan.
       (f) Requirement for Presidential Approval.--The Corporation 
     may not implement the strategic plan without the approval of 
     the President.
       (g) Notification of Congress.--
       (1) In general.--The Corporation shall notify Congress of 
     any intent to implement the strategic plan if the Corporation 
     determines, in consultation with the Secretary and other 
     appropriate agencies of the United States, that no further 
     legislation is required for the implementation.
       (2) Implementation.--The Corporation may not implement the 
     strategic plan under this subsection earlier than 60 days 
     after notification of Congress.

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