[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2656 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2656
To amend title 31, United States Code, to provide for the issuance of
Green Bonds and to establish the United States Green Bank, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 19, 2021
Mr. Himes (for himself, Mr. Cartwright, Ms. Matsui, Ms. Brownley, Mr.
Tonko, Ms. Eshoo, Mr. Connolly, Mr. Meeks, and Mr. Crow) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Energy and Commerce, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend title 31, United States Code, to provide for the issuance of
Green Bonds and to establish the United States Green Bank, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CAPITALIZATION, METHOD OF CAPITAL STOCK PAYMENTS, ISSUANCE
OF GREEN BONDS.
Chapter 31 of title 31, United States Code, is amended by adding
after section 3102 the following new section:
``Sec. 3102A. Green Bonds
``(a) Initial Capitalization.--The Secretary of the Treasury shall
issue bonds (in this section referred to as `Green Bonds') in the
amount of $10,000,000,000 on the credit of the United States to acquire
capital stock of the United States Green Bank (established under
section 9801 of this title). Stock certificates evidencing ownership in
the United States Green Bank shall be issued by the Green Bank to the
Secretary of the Treasury, to the extent of payments made for the
capital stock of the Green Bank.
``(b) Future Capitalization.--Upon the request of the United States
Green Bank, the Secretary of the Treasury shall issue additional Green
Bonds on the credit of the United States to acquire additional capital
stock of the United States Green Bank in an aggregate amount not to
exceed $50,000,000,000 outstanding at any one time.
``(c) Denominations and Maturity.--Green Bonds shall be in such
forms and denominations, and shall mature within such periods, as
determined by the Secretary of the Treasury.
``(d) Interest.--Green Bonds shall bear interest at a rate not less
than the current average yield on outstanding market obligations of the
United States of comparable maturity during the month preceding the
issuance of the obligation as determined by the Secretary of the
Treasury.
``(e) Guaranteed.--Green Bonds shall be fully and unconditionally
guaranteed both as to interest and principal by the United States, and
such guaranty shall be expressed on the face of each bond.
``(f) Lawful Investments.--Green Bonds shall be lawful investments,
and may be accepted as security for all fiduciary, trust, and public
funds, the investment or deposit of which shall be under the authority
or control of the United States or any officer or officers thereof.''.
SEC. 2. GREEN BANK.
Title 31, United States Code, is amended by adding the following
new chapter at the end thereof:
``CHAPTER 98--GREEN BANK
``Sec. 9801. United States Green Bank
``(a) Short Title.--This section may be cited as the `United States
Green Bank Act of 2021'.
``(b) Purposes.--The purposes of this section are as follows:
``(1) To significantly increase the pace and amount of
investment in clean energy, energy efficiency, and other
climate change mitigation and adaptation projects at the State
and local level.
``(2) To improve the standard of living for Americans by
delivering clean electricity more efficiently and at lower cost
and by funding projects that will create high-paying, long-term
jobs and make affordable financing available to low- and
moderate-income families.
``(3) To address the main impediment to investment at the
State and local level--limited capital and tight balance
sheets--by establishing a national Green Bank to capitalize
legitimate Regional, State, and Municipal Green Banks.
``(4) To facilitate--
``(A) efficient tax equity markets for qualified
clean energy projects; and
``(B) the financing of long-term clean energy
purchasing by governmental and nongovernmental not-for-
profit entities.
``(5) To foster--
``(A) the development and consistent application of
transparent underwriting standards, standard
contractual terms, and measurement and verification
protocols for qualified clean energy projects,
qualified energy efficiency projects, and qualified
climate change mitigation or adaptation projects;
``(B) the creation of performance data that enables
effective underwriting, risk management, and pro forma
modeling of financial performance of qualified clean
energy projects and qualified energy efficiency
projects to support primary financing markets and
stimulate development of secondary investment markets
for clean energy projects, energy efficiency projects,
and climate change mitigation or adaptation projects;
and
``(C) the level of financing support for qualified
clean energy projects, qualified energy efficiency
projects, and qualified climate mitigation and
adaptation projects necessary to advance vital national
objectives, including--
``(i) achieving energy independence from
foreign energy sources;
``(ii) abating climate change by increasing
zero or low carbon electricity generation and
transportation capabilities;
``(iii) adapting to the impacts resulting
from climate change;
``(iv) realizing energy efficiency
potential in existing infrastructure;
``(v) easing the economic effects of
transitioning from a carbon-based economy to a
clean energy economy;
``(vi) achieving job creation through the
construction and operation of qualified clean
energy projects, qualified energy efficiency
projects, and qualified climate change
mitigation or adaptation projects;
``(vii) fostering long-term domestic
manufacturing capacity in the clean energy,
energy efficiency, and climate change
mitigation or adaptation industries; and
``(viii) complementing and supplementing
other clean energy, energy efficiency, and
climate change mitigation and adaptation
legislation at the regional, State, municipal,
and county level.
``(c) Definitions.--In this section:
``(1) Bank.--The term `Bank' means the United States Green
Bank established under subsection (d).
``(2) Board.--The term `Board' means the Board of Directors
of the Bank.
``(3) Clean energy project.--The term `clean energy
project' means any electricity generation, transmission,
storage, heating, cooling, transportation, distribution,
industrial process, or manufacturing project whose primary
purpose is the deployment, development, or production of an
energy system or technology that avoids, reduces, or sequesters
air pollutants or anthropogenic greenhouse gases, including the
following:
``(A) Solar.
``(B) Wind.
``(C) Geothermal.
``(D) Biomass.
``(E) Hydropower.
``(F) Ocean and hydrokinetic.
``(G) Fuel cell.
``(H) Advanced battery.
``(I) Carbon capture and sequestration.
``(J) Next generation biofuels from nonfood
feedstocks.
``(K) Alternative fuel vehicle infrastructure.
``(L) Alternative fuel vehicles.
``(4) Climate change mitigation or adaptation project.--The
term `climate change mitigation or adaptation project' means
any project that reduces the emissions of greenhouse gases by
sources or enhance their removal from the atmosphere by sinks,
or reduce the vulnerability of social and biological systems to
relatively sudden change and thus offset the effects of global
warming, including--
``(A) afforestation, reforestation, and land
conservation;
``(B) regenerative agriculture;
``(C) transit-oriented development and mass transit
infrastructure;
``(D) waste and recycling;
``(E) water treatment; and
``(F) wetland protection.''.
``(5) Eligible clean energy financing institution.--The
term `Eligible Clean Energy Financing Institution' means a not-
for-profit, independent entity, quasi-independent entity, or a
governmental entity within an agency or financing authority,
established or designated by a State, group of States, the
District of Columbia, a territory of the United States, an
Eligible State Political Subdivision, a Federal regional
commission or authority, a federally-owned corporation, an
interstate compact, or an independent or quasi-independent
Federal entity that--
``(A) provides low-cost or long-term financing
support or credit enhancements, including loan
guarantees and loan loss reserves, for Qualified Clean
Energy Projects, Qualified Energy Efficiency Projects,
or Qualified Mitigation or Adaptation Projects;
``(B) creates liquid markets for these projects
including warehousing and securitization, or take other
steps to reduce financial barriers to the deployment of
existing and innovative clean energy, energy efficiency
projects, and climate change mitigation or adaptation
projects. Eligible Clean Energy Financing Institutions
may enter into partnerships with private entities; and
``(C) coordinates and consults with other Federal
agencies, organizations, and entities to maximize the
net impact of climate mitigation and adaptation
programming and investments.
``(6) Eligible state political subdivision.--The term
`Eligible State Political Subdivision' means--
``(A) any municipality, county or other political
subdivision within a State that, based on the
population data from the most recent U.S. Census
Bureau--
``(i) with respect to a municipality, has a
population of not fewer than 200,000 people;
``(ii) with respect to a county, parish or
borough, has a population of not fewer than
800,000 people; or
``(iii) with respect to a municipality,
county, parish, or borough, has a population--
``(I) of not fewer than 84,000
people; and
``(II) that constitutes not less
than 5 percent of the total population
of the State in which the municipality,
county, parish, or borough is located;
and
``(B) any political subdivision that--
``(i) is located in a State that
collaborates as 1 region for the purposes of
this Act; or
``(ii)(I) collaborates with another
political subdivision; and
``(II) when combined with the political
subdivision described in subclause (I), meets
the requirements described in subparagraph (A).
``(7) Energy efficiency project.--The term `energy
efficiency project' means any project, technology, function, or
measure that results in the reduction of energy use required to
achieve the same level of service or output prior to the
application of such project, technology, function, or measure,
or substantially reduces greenhouse gas emissions relative to
emissions that would have occurred prior to the application of
such project, technology, function, or measure.
``(8) Green bond.--The term `Green Bond' means a bond
issued pursuant to section 3102A of this title.
``(9) Qualified clean energy project.--The term `qualified
clean energy project' means a clean energy project, including
smart grid technologies and functions characterized in section
1301 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17381) and end-use technologies for efficiency gains in
new construction and across existing infrastructure, that--
``(A) is a Clean Energy Project carried out
domestically within the territorial borders of the
United States;
``(B) to the extent otherwise required by law, pays
wages in accordance with subchapter IV of chapter 31 of
title 40, United States Code (commonly referred to as
the Davis-Bacon Act);
``(C) if for nuclear power, is funded by the Bank
only after all other existing Federal financial support
has been expended;
``(D) if for Alternative fuel vehicles, is for the
purchase or lease of eligible vehicles and not the
design or manufacture thereof; and
``(E) satisfies any other conditions established by
the Bank and published in the Federal Register.
``(d) Green Bank.--
``(1) Establishment of corporation.--There is established a
corporation to be known as the United States Green Bank that
shall be wholly owned by the United States.
``(2) Oversight.--The Bank shall be subject to the general
supervision and direction of the Secretary of the Treasury. The
Bank shall be an instrumentality of the United States
Government and shall maintain such offices as may be necessary
or appropriate in the conduct of its business.
``(3) Charter.--The Bank shall be chartered for 40 years
from the date of enactment of this section.
``(4) Governance.--
``(A) Board of directors of the bank.--
``(i) In general.--The Bank shall be under
the direction of a Board of Directors
consisting of 9 members and be subject to the
general supervision and direction of the
Secretary of the Treasury as Chairman of the
Board.
``(ii) Membership.--The Board shall consist
of 9 members, as follows:
``(I) The Secretary of the Treasury
or the Secretary's designee as Chairman
of the Board.
``(II) The Secretary of Energy or
the Secretary's designee.
``(III) The Secretary of
Transportation or the Secretary's
designee.
``(IV) The Administrator of the
Environmental Protection Agency or the
Administrator's designee.
``(V) The Secretary of the
Department of Defense or the
Secretary's designee.
``(VI) Four members appointed by
the President of the United States
including a Chief Executive Officer, 1
member with expertise regarding
renewable energy, 1 member with
expertise regarding energy efficiency,
1 member with expertise regarding
finance, 1 member with expertise
regarding electric utilities, and 1
member with expertise regarding
sustainable transportation.
``(iii) Quorum.--Five members of the Board
shall constitute a quorum.
``(iv) Bylaws.--The Board shall adopt, and
may amend, such bylaws as are necessary for the
proper management and functioning of the Bank,
and shall, in such bylaws, designate the vice
presidents and other officers of the Bank and
prescribe their duties.
``(v) Terms.--The initial terms of the
members of the Board shall be 4 years. For
terms beginning after the first 4 years
following the date of the enactment of this
section, the Board shall create staggered terms
of 2, 3, and 4 years for members of the Board.
``(vi) Vacancies.--Any vacancy on the Board
shall be filled in the same manner in which the
original appointment was made.
``(vii) Interim appointments.--Any member
appointed to fill a vacancy occurring before
the expiration of the term for which such
member's predecessor was appointed shall be
appointed only for the remainder of such term.
``(viii) Reappointment.--Members of the
Board may be reappointed for additional terms
of service as members of the Board.
``(ix) Continuation of service.--Any member
of the Board whose term has expired may
continue to serve on the Board until the
earlier of--
``(I) the date on which such
member's successor is appointed; or
``(II) the end of the 6-month
period beginning on the date such
member's term expires.
``(B) Executive vice president.--The Chief
Executive Officer shall appoint an Executive Vice
President who--
``(i) shall serve as Chief Executive
Officer of the Bank during the absence or
disability of, or in the event of a vacancy in
the office, of Chief Executive Officer; and
``(ii) shall at other times perform such
functions as the Chief Executive Officer may
prescribe.
``(C) Policies and procedures.--At the request of
any 2 members of the Board, the Chairman shall place an
item pertaining to the policies or procedures of the
Bank on the agenda for discussion by the Board. Not
later than 30 days after the date such a request is
made, the Chairman shall hold a meeting of the Board at
which such item shall be discussed.
``(D) Conflicts of interest.--No director, officer,
attorney, agent, or employee of the Bank shall in any
manner, directly or indirectly, participate in the
deliberation upon, or the determination of, any
question affecting such individual's personal
interests, or the interests of any corporation,
partnership, or association in which such individual is
directly or indirectly personally interested.
``(5) Hiring and contracting authority.--
``(A) Contracting.--The Bank may employ or
otherwise contract with banks, credit agencies,
attorneys, and other third parties at customary
commercial rates.
``(B) Hiring.--Notwithstanding any otherwise
applicable Federal rules and regulations, the Bank may
employ and otherwise contract with employees and
provide compensation to such employees at prevailing
rates for compensation for similar positions in private
industry.
``(6) Sunset.--
``(A) Expiration of charter.--The Bank shall
continue to exercise its functions until all
obligations and commitments of the Bank are discharged,
even after its charter has expired.
``(B) Prior obligations.--No provisions of this
subsection shall be construed as preventing the Bank
from--
``(i) acquiring obligations prior to the
date of the expiration of its charter which
mature subsequent to such date;
``(ii) assuming, prior to the date of the
expiration of its charter, liability as
guarantor, endorser, or acceptor of obligations
which mature subsequent to such date;
``(iii) issuing, prior or subsequent to the
date of the expiration of its charter, for
purchase by the Secretary of the Treasury or
any other purchasers, its notes, debentures,
bonds, or other obligations which mature
subsequent to such date; or
``(iv) continuing as a corporation and
exercising any of its functions subsequent to
the date of the expiration of its charter for
purposes of orderly liquidation, including the
administration of its assets and the collection
of any obligations held by the Bank.
``(e) Green Bank Establishment Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a revolving fund, to be known as the
`Green Bank Establishment Fund' (hereinafter referred to as the
`Fund'), consisting of--
``(A) such amounts as are deposited in the Fund
under this subtitle, including but not limited to
proceeds from the Green Bonds issued under section
3102A; and
``(B) such sums as may be appropriated to
supplement the Fund.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the Fund such sums as are
necessary to carry out this subtitle.
``(3) Expenditures from the fund.--Amounts in the Fund
shall be available to the Chief Executive for obligation
without fiscal year limitation, to remain available until
expended.
``(f) Lending, Financing, Expenditures.--
``(1) In general.--The Bank shall establish a program to
provide, on a competitive basis financing or financing support
from the Fund, as the Bank determines appropriate, solely to
provide capitalization to an Eligible Clean Energy Financing
Institution for the establishment or continuing operation of
that entity.
``(2) Types of financing or financing support.--The Bank
may provide loans, loan guarantees, credit buy downs, or other
financing or financing support the Bank determines appropriate.
``(3) Requirements.--The Bank may only provide loans, loan
guarantees or credit buy downs under paragraph (1) if:
``(A) Application.--The applicant submits an
application for loans, loan guarantees or credit buy
downs in accordance with application criteria
established by the Bank.
``(B) Eligible clean energy financing
institutions.--An entity is eligible to receive loans,
loan guarantees or credit buy downs under this section
only if the entity--
``(i) meets the definition of Eligible
Clean Energy Financing Institution;
``(ii) uses the funding from the Bank
solely for the purposes described in this
section; and
``(iii) satisfies the capitalization and
funding requirements as described in this
section.
``(C) Project finance.--The Bank shall not directly
lend or otherwise provide financial products to any
individual projects, nor shall it be required to
examine individual projects for the purposes of lending
under paragraph (1) other than as necessary to
determine whether an applicant meets the criteria for
Eligible Clean Energy Financing Institutions.
``(D) Capitalization and co-funding.--The Eligible
Clean Energy Financing Institution--
``(i) shall provide, at the time of receipt
of any initial funding for capitalization by
the Bank, an amount from funding sources other
than the Bank equivalent to no less than
$1,000,000 and no less than 20 percent of the
total initial funding provided by the Bank; and
``(ii) may not receive any subsequent
funding for capitalization by the Bank, in
addition to any initial funding for
capitalization provided by the Bank in
accordance with (i) above in, of amounts
greater than two times the amount of capital
committed for use by the Eligible Clean Energy
Financing Institution for Qualified Clean
Energy Projects and Qualified Energy Efficiency
Projects at the time of application.
``(4) Regulations.--The Bank shall establish regulations to
carry out the activities and operations set out in this
chapter.
``(g) Lending Activities.--
``(1) Fees.--The Bank shall assess reasonable fees on its
activities so as to cover its reasonable costs and expenses,
consistent with the Federal Credit Reform Act of 1990 (2 U.S.C.
661 et seq.), provided the Bank operates as a not-for-profit
entity.
``(2) Appropriations and retention of receipts.--For
purposes of the Federal Credit Reform Act, funds made available
to the Green Bank pursuant to section 3102A for carrying out
this section are appropriated to the Green Bank for the
purposes described in the section. Receipts collected by the
Green Bank, consistent with the Federal Credit Reform Act,
shall be considered to have been provided in advance in an
appropriations Act, and shall remain available to the Green
Bank until expended.
``(3) Immunity from impairment, limitation, or
restriction.--
``(A) In general.--All rights and remedies of the
Bank shall be immune from impairment, limitation, or
restrictions by or under--
``(i) any law (other than a law enacted by
Congress expressly in limitation of this
paragraph) that becomes effective after the
acquisition by the Bank 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
``(ii) any administrative or other action
that becomes effective after the acquisition.
``(B) State law.--The Bank may conduct its business
without regard to any qualification or law of any State
relating to incorporation.
``(4) Taxation.--
``(A) In general.--Subject to subparagraph (B), the
Bank (including its activities, capital, reserves,
surplus and income) shall be exempt from all taxation
imposed by any State or local political subdivision of
a State.
``(B) Real property.--Any real property of the Bank
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.
``(5) Power to remove; jurisdiction.--Notwithstanding any
other provision of law, any civil action, suit, or proceeding
to which the Bank is a party shall be deemed to arise under the
laws of the United States, and the United States district
courts shall have original jurisdiction. The Bank may, without
bond or security, remove any such action, suit, or proceeding
from a State court to a United States district court or to the
United States District Court for the District of Columbia.
``(6) Spending safeguards.--
``(A) In general.--The Chief Executive Officer of
the Bank--
``(i) shall require any Eligible Clean
Energy Financing Institution receiving
financial support pursuant to this section to
report quarterly, in a format specified by the
Chief Executive Officer, on such entity's use
of such support and its progress fulfilling the
objectives for which such support was granted,
and the Chief Executive Officer shall make
these reports available to the public;
``(ii) may establish additional reporting
and information requirements for any recipient
of financing support made available pursuant to
this section;
``(iii) shall establish appropriate
mechanisms to ensure appropriate use and
compliance with all terms of any financing
support made available pursuant to this
section;
``(iv) may, in addition to and consistent
with any other authority under applicable law,
deobligate financing support made available
pursuant to this section to entities that
demonstrate an insufficient level of
performance, or wasteful or fraudulent
spending, as defined in advance by the Chief
Executive Officer, and award these funds
competitively to new or existing applicants
consistent with this section;
``(v) shall create and maintain a fully
searchable database, accessible on the Internet
(or successor protocol) at no cost to the
public, that contains at least--
``(I) a list of each entity that
has applied for loans, loan guarantees
or credit buy downs under this section;
``(II) a description of each
application;
``(III) the status of each such
application;
``(IV) the name of each entity
receiving funds made available pursuant
to this section;
``(V) the purpose for which such
entity is receiving such funds;
``(VI) each quarterly report
submitted by the entity pursuant to
this section; and
``(VII) information related to
Qualifying Clean Energy Projects and
Qualifying Energy Efficiency Projects
funded by Eligible Clean Energy
Financing Institutions using funding
received from the Bank;
``(vi) to the extent practicable, data
maintained under clause (v) shall be used to
inform private capital markets, including the
development of underwriting standards for the
financing of clean energy projects and energy
efficiency projects;
``(vii) shall make all financing
transactions available for public inspection,
including formal annual reviews by both a
private auditor and the Comptroller General;
and
``(viii) shall at all times be available to
receive public comment in writing on the
activities of the Bank.
``(B) Protection of confidential business
information.--To the extent necessary and appropriate,
the Chief Executive Officer may redact any information
regarding applicants and borrowers to protect
confidential business information.
``(7) Guarantee.--Except as provided in section 3102A(e)
with respect to Green Bonds, financial support provided by the
Bank shall not be fully and unconditionally guaranteed by the
United States.
``(h) New Bank Division.--
``(1) In general.--The Bank shall establish a New Bank
Division to provide technical assistance to States, group of
States, the District of Columbia, territories of the United
States, or Eligible State Political Subdivisions seeking to
establish green banks.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the New Bank Division such
sums as are necessary to carry out this subsection.''.
SEC. 3. CONFORMING AMENDMENTS.
(a) Tax Exempt Status.--Section 501(l) of the Internal Revenue Code
of 1986 is amended by adding at the end the following:
``(5) The Green Bank established under section 9801 of
title 31, United States Code.''.
(b) Wholly Owned Government Corporation.--Section 9101(3) of title
31, United States Code, is amended by adding at the end the following:
``(Q) the Green Bank.''.
(c) Clerical Amendments.--
(1) The table of sections for chapter 31 of title 31,
United States Code, is amended by inserting after the item
relating to section 3102 the following new item:
``3102A. Green Bonds.''.
(2) The table of chapters for subtitle VI of title 31,
United States Code, is amended by adding at the end the
following new item:
``98. Green Bank............................................ 9801''.
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