[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4183 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4183
To establish the National Energy Transition Endowment and Community
Revitalization Corporation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 11 (legislative day, May 10), 2022
Mr. Bennet introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To establish the National Energy Transition Endowment and Community
Revitalization Corporation, 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. SHORT TITLE.
This Act may be cited as the ``National Energy Community Transition
Act of 2022''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Average ending balance.--The term ``average ending
balance'', with respect to an account in the Endowment, means--
(A) for the first fiscal year during which the
Endowment is in operation, the actual ending balance of
the account;
(B) for the second fiscal year during which the
Endowment is in operation, the average of the fiscal
year ending balances of the account for that fiscal
year and the preceding fiscal year;
(C) for the third fiscal year during which the
Endowment is in operation, the average of the fiscal
year ending balances of the account for the 2-
preceding-fiscal-year period; and
(D) for the fourth fiscal year during which the
Endowment is in operation, and for each fiscal year
thereafter, the average of the fiscal year ending
balances of the account for the 3-preceding-fiscal-year
period.
(2) Board.--The term ``Board'' means the Board of Directors
of the Corporation.
(3) Community development financial institution.--The term
``community development financial institution'' has the meaning
given the term in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702).
(4) Corporation.--The term ``Corporation'' means the
Community Revitalization Corporation established by section
3(a).
(5) Eligible community.--The term ``eligible community''
means--
(A) a community experiencing or likely to
experience an economic or workforce transition relating
to changes in applicable--
(i) fossil fuel electricity generation; or
(ii) fossil fuel extraction, development,
or demand; and
(B) a community experiencing or likely to
experience a decline in fossil fuel-related revenue.
(6) Endowment.--The term ``Endowment'' means the National
Energy Transition Endowment Fund established by section
4(a)(1).
(7) Energy community hub.--The term ``energy community
hub'' means a place-based organization (including a nonprofit
entity, community development financial institution, regional
economic development authority, or other community-based
organization, as determined to be appropriate by the
Corporation) that--
(A) facilitates economic and community development
in an eligible community; and
(B) provides necessary capacity and experience to
implement a transition program for 1 or more eligible
communities.
(8) Transition program.--The term ``transition program''
means a program described in section 5(a)(2) or paragraph (3)
or (4) of section 5(b).
SEC. 3. ESTABLISHMENT OF THE COMMUNITY REVITALIZATION CORPORATION.
(a) In General.--There is established a federally chartered,
nonprofit corporation, to be known as the ``Community Revitalization
Corporation''.
(b) Status and Applicable Laws.--
(1) Non-federal entity.--The Corporation is not a
department, agency, or instrumentality of the United States
Government.
(2) Liability.--The United States Government shall not be
liable for the actions or inactions of the Corporation.
(3) Nonprofit corporation.--The Corporation shall have and
maintain the status of the Corporation as a nonprofit
corporation exempt from taxation under the Internal Revenue
Code of 1986.
(c) Board of Directors.--
(1) Authority.--The powers of the Corporation shall be
vested in a Board of Directors that governs the Corporation.
(2) Membership.--
(A) In general.--The Board shall be composed of not
fewer than 7 but not more than 11 members, who shall be
appointed by the President, not later than 90 days
after the date of enactment of this Act, by and with
the advice and consent of the Senate.
(B) Qualifications of members.--
(i) In general.--Subject to clauses (ii)
and (iii), in making appointments under
subparagraph (A), the President shall ensure
that the membership of the Board--
(I) includes--
(aa) members from eligible
communities;
(bb) members with relevant
economic development
experiences with--
(AA) eligible
communities;
(BB) underserved
rural communities in
economic distress; and
(CC)
underrepresented
minority communities,
such as indigenous
communities, Tribal
communities, or
communities of color;
and
(cc) members representing a
recognized State labor
organization or central labor
council or other labor
representatives, as
appropriate; and
(II) has not more than a 1-member
majority from any political party.
(ii) Prohibition.--A member of the Board
shall not hold an office, position, or
employment in any political party.
(iii) Initial members.--The President shall
ensure that the initial membership of the Board
includes a representative of each of the
Northern Rocky Mountain region, the Four
Corners region, the Mid-Continental Gulf Coast
region, the Illinois Basin region, the
Appalachian region, and the Alaska region, as
described in the report prepared by the
Interagency Working Group on Coal and Power
Plant Communities and Economic Revitalization
entitled ``Initial Report to the President on
Empowering Workers Through Revitalizing Energy
Communities'' and dated April 2021.
(C) Terms.--
(i) In general.--A member of the Board
shall be appointed for a term of 4 years,
except that the President shall designate
staggered terms for the members first appointed
to the Board.
(ii) Reappointment.--A member of the Board
may be reappointed to serve an additional term,
subject to the condition that the member may
serve for not more than 2 consecutive terms.
(D) Vacancies.--
(i) In general.--A vacancy on the Board
shall be--
(I) filled in the manner in which
the original appointment was made; and
(II) subject to any conditions that
applied with respect to the original
appointment.
(ii) Filling unexpired term.--An individual
chosen to fill a vacancy shall be appointed for
the unexpired term of the member replaced.
(E) Expiration of terms.--Any member of the Board
may continue to serve after the expiration of the term
for which the member was appointed until a qualified
successor has been appointed.
(3) Chairperson.--
(A) In general.--The Chairperson of the Board shall
be selected from among the members of the Board by a
majority vote of the members.
(B) Term of service.--The Chairperson of the
Board--
(i) shall serve for a term of not longer
than 4 years; and
(ii) may be reelected to serve an
additional term, subject to the condition that
the Chairperson may serve for not more than 2
consecutive terms.
(4) Consultation.--To the maximum extent practicable, in
carrying out the duties of the Corporation under subsection
(d)(3), the Board shall engage regional economic development
entities and energy community hubs to solicit and consider
input and feedback relating to decisions impacting the 1 or
more regions the entity represents.
(d) Bylaws and Duties.--
(1) In general.--The Board shall adopt, and may amend, the
bylaws of the Corporation.
(2) Bylaws.--The bylaws of the Corporation shall include,
at a minimum--
(A) the duties and responsibilities of the Board;
and
(B) the operational procedures of the Corporation.
(3) Duties and responsibilities of board.--The Board shall
be responsible for actions of the Corporation, including--
(A) hiring staff to carry out the functions of the
Corporation;
(B) entering into contracts with fund management
and investment professionals to manage the Endowment;
(C) making formula payments under section 5(a)(2);
(D) making grants in accordance with section
5(b)(3);
(E) monitoring Federal and State policies relevant
to rural and transitioning communities;
(F) coordinating (including through entering into
contracts), as appropriate, with relevant agencies,
institutions, energy community hubs, and other entities
that provide economic, training, and capacity
assistance to eligible communities consistent with the
duties under subparagraphs (C), (D), (H), and (I);
(G) creating and maintaining accessible electronic
materials targeted towards eligible communities,
including up-to-date, user-friendly information on--
(i) the programs and activities carried out
by the Corporation; and
(ii) other relevant Federal programs that
provide economic assistance to eligible
communities or other similar transitioning
communities;
(H) making public investments in accordance with
section 5(b)(4); and
(I) monitoring, assessing, and reporting on
outcomes of--
(i) any financial assistance provided under
a transition program; and
(ii) any public investment made under
section 5(b)(4).
(4) Chief executive officer.--The Board shall select and
hire a Chief Executive Officer, who shall report directly to
the Board.
SEC. 4. ESTABLISHMENT OF ENDOWMENT AND INVESTMENT STRATEGY.
(a) Endowment Fund.--
(1) In general.--There is established within the
Corporation an endowment, to be known as the ``National Energy
Transition Endowment Fund'', consisting of--
(A) amounts deposited in the Endowment under
paragraph (3) and subsection (b)(3)(B);
(B) income from investments of amounts in the
Endowment under paragraph (4); and
(C) amounts transferred to the Endowment under
subsection (c).
(2) Accounts.--Within the Endowment, there are established
the following accounts:
(A) The Transitioning Communities Permanent
Account, consisting of the amounts described in
subparagraphs (A) and (B) of paragraph (1).
(B) The Transitioning Communities Benefit Account,
consisting of the amounts described in paragraph
(1)(C).
(3) Deposit.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury shall
deposit in the Endowment, out of amounts in the Treasury not
otherwise appropriated, $20,000,000,000.
(4) Investments.--In accordance with the investment
strategy developed under subsection (b)(1), the Board shall
invest the principal balance of the Endowment.
(b) Investments.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Board shall establish an investment
strategy for amounts in the Endowment that--
(A) protects the principal balance of the Endowment
from inflation through such measures as the Board
determines to be necessary to maintain in perpetuity
the inflation-adjusted value of all deposits into the
Endowment under subparagraphs (A) and (C) of subsection
(a)(1); and
(B) to the maximum extent practicable, achieves a
return on investment of 5 percent (net of inflation) to
finance--
(i) disbursements to eligible entities
under section 5(a)(2); and
(ii) the administration of the Corporation
under paragraph (3)(A).
(2) Investment of principal balance.--Of the principal
balance of the Endowment, the Board shall invest--
(A) an amount equal to not less than 85 percent,
and not more than 90 percent, in a diversified
portfolio of stocks and bonds; and
(B) an amount equal to not less than 10 percent,
and not more than 15 percent, in investments that
leverage the purposes of disbursements from the
Endowment authorized under section 5.
(3) Administrative funds.--
(A) In general.--For each fiscal year, the Board
may disburse to the Corporation from the Transitioning
Communities Permanent Account, for the administrative
expenses of the Corporation, not more than the amount
equal to the product obtained by multiplying--
(i) the average ending balance of the
Transitioning Communities Permanent Account
with respect to that fiscal year; and
(ii) 0.5 percent.
(B) Excess funds.--If the amount of the actual
administrative expenses of the Corporation for a fiscal
year is less than the amount disbursed to the
Corporation for the fiscal year under subparagraph (A),
an amount equal to the difference between those amounts
shall be deposited in the Endowment.
(c) Transfers to Endowment From Energy and Natural Resources
Leasing.--Each fiscal year, the Secretary of the Treasury shall
transfer to the Endowment an amount equal to 33 percent of amounts in
the Treasury received from fossil fuel extraction and production
leasing and renewable energy resource leasing on Federal land for that
fiscal year and not otherwise obligated.
(d) Reports.--The Corporation shall submit to Congress, and make
available to the public (including any eligible entities that receive
financial assistance under a transition program)--
(1) a quarterly report on Endowment investment outcomes;
and
(2) an annual report describing disbursements from the
Endowment, including how amounts were allocated under the
transition programs.
(e) Oversight.--Annually, the Inspectors General of the Department
of the Interior and the Department of the Treasury shall conduct a
review of the management of the Endowment by the Corporation.
SEC. 5. DISBURSEMENTS FROM ENDOWMENT.
(a) Transitioning Communities Permanent Account.--
(1) Availability of amounts.--Not later than September 30
of each fiscal year, in accordance with paragraph (2), the
Board shall make available from the Transitioning Communities
Permanent Account an amount equal to the product obtained by
multiplying--
(A) the average ending balance of the Transitioning
Communities Permanent Account with respect to that
fiscal year; and
(B) 4.5 percent.
(2) Formula distribution.--
(A) Definition of eligible entity.--In this
paragraph, the term ``eligible entity'' means a
municipal, county, or Tribal government that represents
an eligible community.
(B) Allocation.--The Corporation shall allocate the
amount made available from the Transitioning
Communities Permanent Account under paragraph (1) each
fiscal year to eligible entities pursuant to
subparagraph (C).
(C) Formula.--
(i) In general.--The Corporation shall
establish a formula to allocate amounts made
available from the Transitioning Communities
Permanent Account each fiscal year under
subparagraph (B) directly to eligible entities.
(ii) Requirement.--To the maximum extent
practicable, in establishing the formula under
clause (i), the Corporation shall use as a
model existing formulas established by the
Treasury, if available and as applicable.
(D) Review and public comment.--
(i) In general.--The Board shall review the
formula established under subparagraph (C) not
less frequently than once every 3 years.
(ii) Public comment.--The results of the
review conducted under clause (i), including
any recommended changes to the formula made by
the Board, shall be subject to a period of
public comment of not less than 30 days.
(E) Formula criteria.--The formula established
under subparagraph (C) or modified under subparagraph
(D) shall--
(i) be designed to reflect eligible
communities; and
(ii) take into account revenue declines
that--
(I) have occurred during the 20-
year period ending on, as applicable--
(aa) the date of enactment
of this Act; or
(bb) the date of the
applicable review under
subparagraph (D)(i); and
(II) are projected to occur during
the 10-year period beginning on, as
applicable--
(aa) the date of enactment
of this Act; or
(bb) the date of the
applicable review under
subparagraph (D)(i).
(F) Priority.--
(i) Definition of officially announced
closure.--In this subparagraph, the term
``officially announced closure'' means--
(I) in the case of the closure of a
fossil fuel energy-generating unit or
facility, a notice of closure filed
with--
(aa) the Energy Information
Administration; or
(bb) a relevant regional
reliability regulator,
including a Regional
Transmission Organization,
Independent System Operator, or
State public utility
commission; and
(II) in the case of the closure of
a coal mine that provides coal for an
electric power plant for which a notice
of closure has been filed under
subclause (I), a notice of closure that
includes supporting documentation from
form 923 of the Energy Information
Administration (or a successor form).
(ii) Priority.--In establishing the formula
under subparagraph (C), the Corporation shall
prioritize eligible entities located in
eligible communities experiencing or likely to
experience an acute fiscal crisis associated
with the loss of revenue resulting from--
(I) the closure or officially
announced closure of 1 or more fossil
fuel energy-generating units or
facilities; or
(II) the decline or cessation of
fossil fuel extraction activities.
(G) Considerations.--In establishing the formula
under subparagraph (C), the Corporation shall consider
community characteristics, including social and
economic measures of income, poverty, education,
geographic isolation, and other characteristics
identified by the Corporation.
(H) Use of funds.--An eligible entity may use
amounts received under this paragraph for any
governmental purpose.
(b) Transitioning Communities Permanent Account.--
(1) Availability of amounts.--Not later than September 30
of each fiscal year, in accordance with paragraphs (2) through
(4), the Board shall make available from the Transitioning
Communities Benefit Account an amount equal to the product
obtained by multiplying--
(A) the average ending balance of the Transitioning
Communities Benefit Account with respect to that fiscal
year; and
(B) 4.5 percent.
(2) Allocation.--The Corporation shall allocate the amount
made available from the Transitioning Communities Benefit
Account under paragraph (1) each fiscal year--
(A) to provide grants to eligible entities pursuant
to the transition program described in paragraph (3);
and
(B) for public investment pursuant to the
transition program described in paragraph (4).
(3) Capacity building; planning and implementation
grants.--
(A) Definition of eligible entity.--In this
paragraph, the term ``eligible entity'' includes--
(i) a municipal, county, or Tribal
government;
(ii) an energy community hub; and
(iii) any other entity that represents
eligible communities, as determined to be
appropriate by the Corporation.
(B) Priority; limitation.--
(i) Priority.--Priority for grants under
this paragraph shall be given to eligible
entities carrying out activities in eligible
communities that have limited capacity to apply
for or otherwise access Federal funding, as
determined by the Corporation.
(ii) Limitation.--In the case of an
eligible entity described in clause (ii) or
(iii) of subparagraph (A), a grant under this
paragraph may only be provided to the eligible
entity if the applicable municipal, county, or
Tribal government submits to the Corporation,
in writing, a statement that the applicable
municipal, county, or Tribal government
supports the grant for the eligible entity.
(C) Training and technical assistance.--Each fiscal
year, out of amounts made available from the
Transitioning Communities Benefit Account under
paragraph (2)(A), the Corporation shall provide to
eligible entities technical assistance to apply for or
otherwise access Federal funding, including capacity-
building grants under subparagraph (D) and planning and
implementation grants under subparagraph (E).
(D) Capacity-building grants.--Each fiscal year,
out of amounts made available from the Transitioning
Communities Benefit Account under paragraph (2)(A), the
Corporation shall make noncompetitive capacity-building
grants to each eligible entity to assist with
developing strategic transition plans necessary to
receive additional competitive grants and financing
opportunities.
(E) Planning and implementation grants.--
(i) Grants.--Each fiscal year, out of
amounts made available from the Transitioning
Communities Benefit Account under paragraph
(2)(A), the Corporation shall make competitive,
multiyear grants to eligible entities to fund--
(I) strategic transition planning
activities in eligible communities;
(II) the implementation of
transition plans in eligible
communities; and
(III) transition projects in
eligible communities, including
workforce retraining and community
development projects.
(ii) Strategy for data collection,
monitoring, and reporting.--In carrying out
this subparagraph, the Corporation shall
develop a strategy to assist eligible entities
receiving grants under this subparagraph with
any applicable data collection, monitoring, and
reporting requirements.
(iii) Assessment by corporation.--To ensure
transparency and improve the transfer and
understanding of transition planning and
implementation outcomes, the Corporation shall
compile, conduct assessments of, and report on
data provided by eligible entities provided
grants under this subparagraph, in accordance
with section 3(d)(3)(I).
(4) Public investment.--
(A) In general.--Each fiscal year, out of amounts
made available from the Transitioning Communities
Benefit Account under paragraph (2)(B), the Corporation
shall make public investments in public or private
projects carried out in eligible communities that
leverage transition programs funded under paragraph
(3).
(B) Consultation.--The Corporation may carry out
subparagraph (A) in consultation with the staff of the
Corporation, community development financial
institutions, public benefit corporations, entities
that provide philanthropic funding, energy community
hubs, and other partners to invest capital in
businesses and infrastructure in eligible communities.
(C) Requirement for return on investment.--To the
maximum extent practicable, the Corporation shall
ensure that the entire portfolio of transition
investments under subparagraph (A) contributes to a
return to the Endowment that achieves the target
described in section 4(b)(1)(B).
<all>