IN THE SENATE OF THE UNITED STATES
April 30, 2009
Mr. Bingaman (for himself, Ms. Murkowski, Mr. Dorgan, Mr. Voinovich, Ms. Stabenow, Mr. Lugar, and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources
To improve the loan guarantee program of the Department of Energy under title XVII of the Energy Policy Act of 2005, to provide additional options for deploying energy technologies, and for other purposes.
This Act may be cited as the
21st Century Energy Technology
The purpose of this Act is to promote the domestic development and deployment of clean energy technologies required for the 21st century through the improvement of existing programs and the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of—
clean energy technologies;
advanced or enabling energy infrastructure technologies;
energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; and
manufacturing technologies for any of the technologies or applications described in this section.
In this Act:
The term Administration means the Clean Energy Deployment Administration established by section 6.
The term Administrator means the Administrator of the Administration.
The term Advisory Council means the Energy Technology Advisory Council of the Administration.
The term breakthrough technology means a clean energy technology that—
presents a significant opportunity to advance the goals developed under section 5, as assessed under the methodology established by the Advisory Council; but
has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.
Clean energy technology
The term clean energy technology means a technology related to the production, use, transmission, storage, control, or conservation of energy—
reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States;
diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; or
contribute to a stabilization of atmospheric greenhouse gas concentrations thorough reduction, avoidance, or sequestration of energy-related emissions; and
for which, as determined by the Administrator, insufficient commercial lending is available to allow for widespread deployment.
The term cost has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
The term direct loan has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
The term Fund means the Clean Energy Investment Fund established by section 4(a).
The term loan guarantee has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
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).
The term Secretary means the Secretary of Energy.
The term security has the meaning given the term in section 2 of the Securities Act of 1933 (15 U.S.C. 77b).
The term State means—
the District of Columbia;
the Commonwealth of Puerto Rico; and
any other territory or possession of the United States.
The term technology risk means the risks during construction or operation associated with the design, development, and deployment of clean energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.
Improvements to existing programs
Clean Energy Investment Fund
is established in the Treasury of the United States a revolving fund, to be
known as the
Clean Energy Investment Fund, consisting of—
such amounts as have been appropriated for administrative expenses to carry out title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.);
such amounts as are deposited in the Fund under this Act and amendments made by this Act; and
such sums as may be appropriated to supplement the Fund.
Expenditures from Fund
Notwithstanding section 1705(e) of the Energy Policy Act of 2005 (42 U.S.C. 16516(e)), amounts in the Fund shall be available to the Secretary for obligation without fiscal year limitation, to remain available until expended.
Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.
To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.).
Transfers of amounts
The amounts required to be transferred to the Fund under this subsection shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.
Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.
Revisions to loan guarantee program authority
Definition of commercial technology
Section 1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by striking subparagraph (B) and inserting the following:
The term commercial technology does not include a technology if the sole use of the technology is in connection with—
a demonstration project; or
a project for which the Secretary approved a loan guarantee.
Specific appropriation or contribution
Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by striking subsection (b) and inserting the following:
Specific appropriation or contribution
No guarantee shall be made unless sufficient amounts to account for the cost are available—
in unobligated balances within the Clean Energy Investment Fund established under section 4(a) of the 21st Century Energy Technology Deployment Act;
as a payment from the borrower and the payment is deposited in the Clean Energy Investment Fund; or
in any combination of balances and payments described in subparagraphs (A) and (B), respectively.
The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.
Relation to other laws
Section 504(b) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not apply to a loan or loan guarantee under this section.
Section 1702(g)(2) of the Energy Policy Act of 2005 (42 U.S.C. 16512(g)(2)) is amended—
by striking subparagraph (B); and
by redesignating subparagraph (C) as subparagraph (B).
Section 1702(h) of the Energy Policy Act of 2005 (42 U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the following:
Fees collected under this subsection shall—
be deposited by the Secretary in the Clean Energy Investment Fund established under section 4(a) of the 21st Century Energy Technology Deployment Act; and
remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.
The Secretary may adjust the amount or manner of collection of fees under this title as the Secretary determines is necessary to promote, to the maximum extent practicable, eligible projects under this title.
Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at the end the following:
To the maximum extent practicable and consistent with sound business practices, the Secretary shall seek to consolidate reviews of applications for loan guarantees under this title such that decisions as to whether to enter into a commitment on an application can be issued not later than 180 days after the date of submission of a completed application.
Section 1705(c) of the Energy Policy Act of 2005 (42 U.S.C.
16516(c)) is amended by striking
support under this section and
support under this title.
Energy technology deployment 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 for review and comment in the Federal Register near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the deployment of clean energy technologies through the credit support programs established by this Act (including an amendment made by this Act) to promote—
sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;
clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from the volatility of world energy markets;
a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;
installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;
the transformation of the building stock of the United States to zero net energy consumption;
the recovery, use, and prevention of waste energy;
domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;
domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will become a world leader in environmentally sustainable production of the commodities and materials;
a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, and demand-response in each regional electric grid;
sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed generation technology investments with reasonable payback periods; and
such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purposes of this Act.
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.
Clean Energy Deployment Administration
There is established in the Department of Energy an administration to be known as the Clean Energy Deployment Administration, under the direction of the Administrator and the Board of Directors.
The Administration (including officers, employees, and agents of the Administration) shall not be responsible to, or subject to the authority, direction, or control of, any other officer, employee, or agent of the Department of Energy other than the Secretary, acting through the Administrator.
Exemption from reorganization
The Administration shall be exempt from the reorganization authority provided under section 643 of the Department of Energy Reorganization Act (42 U.S.C. 7253).
Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—
paragraph (1), by inserting
the Administrator of the Clean Energy
Deployment Administration; after
paragraph (2), by inserting
the Clean Energy Deployment
The Administration shall—
maintain the principal office of the Administration in the District of Columbia; and
for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.
The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the business of the Administration.
The Administrator shall be—
appointed by the President, with the advice and consent of the Senate, for a 5-year term; and
compensated at the annual rate of basic pay prescribed for level II of the Executive Schedule under section 5313 of title 5, United States Code.
The Administrator shall—
serve as the Chief Executive Officer of the Administration and Chairman of the Board;
the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262));
the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;
the Administration carries out the purposes of this Act only through activities that are authorized under and consistent with this Act; and
the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;
develop policies and procedures for the Administration that will—
promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;
promote transparency and openness in Administration operations;
afford the Administration with sufficient flexibility to meet the purposes of this Act; and
provide for the efficient processing of applications; and
with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 7(a)(1)(C).
Board of Directors
The Board of Directors of the Administration shall consist of—
the Secretary or the designee of the Secretary, who shall serve as an ex-officio voting member of the Board of Directors;
the Administrator, who shall serve as the Chairman of the Board of Directors; and
7 additional members who shall—
be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; and
have experience in banking or financial services relevant to the operations of the Administration, including individuals with substantial experience in the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.
The Board of Directors shall—
oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;
consult with the Administrator on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;
ensure the portfolio of investments are consistent with purposes of this Act and with the long-term financial stability of the Administration;
ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or financing products; and
not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies and procedures as necessary.
An appointed member of the Board of Directors may be removed from office by the President for good cause.
An appointed 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 of the vacating member.
Compensation of members
An appointed member of the Board of Directors shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level III of the Executive Schedule under section 5314 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Board of Directors.
Energy Technology Advisory Council
The Administration shall have an Energy Technology Advisory Council consisting of—
5 members selected by the Secretary; and
3 members selected by the Board of Directors of the Administration.
The members of the Advisory Council shall—
have relevant scientific expertise; and
in the case of the members selected by the Secretary under paragraph (1)(A), include representatives of—
the academic community;
the private research community;
the technology or project development community; and
the commercial energy financing and operations sector.
The Advisory Council shall—
develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise would have occurred without the support; and
advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant to section 5.
Members of the Advisory Council shall have 5-year staggered terms, as determined by the Secretary and the Administrator.
A member of the Advisory Council may be reappointed.
A member of the Advisory Council, who is not otherwise compensated as a Federal employee, shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Advisory Council.
The Administrator, in consultation with the Board of Directors, may—
appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this Act; and
vest those personnel with such powers and duties as the Administrator may determine.
Direct hire authority
Notwithstanding section 3304 and sections 3309 through 3318 of title 5, United States Code, the Administrator may, on a determination that there is a severe shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified critical personnel with specialized knowledge important to the function of the Administration into the competitive service.
The authority granted under subparagraph (A) shall not apply to positions in the excepted service or the Senior Executive Service.
In exercising the authority granted under subparagraph (A), the Administrator shall ensure that any action taken by the Administrator—
is consistent with the merit principles of section 2301 of title 5, United States Code; and
complies with the public notice requirements of section 3327 of title 5, United States Code.
Termination of effectiveness
The authority provided by this paragraph terminates effective on the date that is 2 years after the date of enactment of this Act.
Critical pay authority
Notwithstanding section 5377 of title 5, United States Code, and without regard to the provisions of that title governing appointments in the competitive service or the Senior Executive Service and chapters 51 and 53 of that title (relating to classification and pay rates), the Administrator may establish, fix the compensation of, and appoint individuals to critical positions needed to carry out the functions of the Administration, if the Administrator certifies that—
the positions require expertise of an extremely high level in a financial, technical, or scientific field;
the Administration would not successfully accomplish an important mission without such an individual; and
exercise of the authority is necessary to recruit an individual who is exceptionally well qualified for the position.
The authority granted under subparagraph (A) shall be subject to the following conditions:
The number of critical positions authorized by subparagraph (A) may not exceed 20 at any 1 time in the Administration.
The term of an appointment under subparagraph (A) may not exceed 4 years.
An individual appointed under subparagraph (A) may not have been an Administration employee at any time during the 2-year period preceding the date of appointment.
Total annual compensation for any individual appointed under subparagraph (A) may not exceed the highest total annual compensation payable at the rate determined under section 104 of title 3, United States Code.
An individual appointed under subparagraph (A) may not be considered to be an employee for purposes of subchapter II of chapter 75 of title 5, United States Code.
Each year, the Administrator shall submit to Congress a notification that lists each individual appointed under this paragraph.
The Administration may issue direct loans, letters of credit, loan guarantees, insurance products, or such other credit enhancements or debt instruments (including participation as a co-lender or a member of a syndication) as the Administrator considers appropriate to deploy clean energy technologies if the Administrator has determined that deployment of the technologies would benefit or be accelerated by the support.
In carrying out this paragraph and awarding credit support to projects, the Administrator shall account for—
how the technology rates based on an evaluation methodology established by the Advisory Council;
how the project fits with the goals established under section 5; and
the potential for the applicant to successfully complete the project.
Expected loan loss reserve
The Administrator shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of—
developing breakthrough technologies to the point at which technology risk is largely mitigated;
achieving widespread deployment and advancing the commercial viability of clean energy technologies; and
advancing the goals established under section 5.
Initial expected loan loss reserve
Until such time as the Administrator determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator shall consider establishing an initial rate of 10 percent for the portfolio of investments under this Act.
Portfolio investment approach
The Administration shall—
use a portfolio investment approach to mitigate risk and diversify investments across technologies;
to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under section 5; and
consistent with the expected loan loss reserve established under this subparagraph, the purposes of this Act, and section 6(b)(2)(B), provide the maximum practicable percentage of support to promote breakthrough technologies.
Loss rate review
The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.
Not later than 90 days after the date of the initiation of the review, the Administrator shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the review and any recommended policy changes.
To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this Act such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.
In carrying out this Act, the Administration shall, to the maximum extent practicable—
avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); and
with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable.
Wage rate requirements
No credit support shall be issued under this section unless the borrower has provided to the Administrator reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.
With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.
The Administration shall work to develop financial products and arrangements to both promote the widespread deployment of, and mobilize private sector support of credit and investment institutions for, clean energy technologies through securitization, indirect credit support, or other similar means of credit enhancement.
in cooperation with Federal, State, local, and private sector entities, shall develop debt instruments that provide for the aggregation of, or directly aggregate, projects for clean energy technology deployments on a scale appropriate for residential or commercial applications; and
may purchase, and make commitments to purchase, any debt instrument associated with the deployment of clean energy technologies for the purposes of enhancing the availability of private financing for clean energy technology deployments.
Disposition of debt or interest
The Administration may acquire, hold, and sell or otherwise dispose of, pursuant to commitments or otherwise, any debt associated with the deployment of clean energy technologies or interest in the debt.
The Administrator may establish requirements, and impose charges or fees, which may be regarded as elements of pricing, for different classes of sellers, servicers, or services.
Classification of sellers and servicers
For the purpose of clause (i), the Administrator may classify sellers and servicers as necessary to promote transparency and liquidity and properly characterize the risk of default.
The Administrator shall establish—
eligibility criteria for loan originators, sellers, and servicers seeking support for portfolios of financial obligations relating to clean energy technologies so as to ensure the capability of the loan originators, sellers, and servicers to perform the functions required to maintain the expected performance of the portfolios; and
such criteria, standards, guidelines, and mechanisms such that, to the maximum extent practicable, loan originators and sellers will be able to determine the eligibility of loans for resale at the time of initial lending.
Secondary market support
The Administration may lend on the security of, and make commitments to lend on the security of, any debt that the Administration has issued or is authorized to purchase under this section.
On such terms and conditions as the Administrator may prescribe, the Administration may, with the concurrence of the Board of Directors—
pay interest or other return; and
issue notes, debentures, bonds, or other obligations or securities.
The Administrator shall determine—
the volume of the lending activities of the Administration; and
the types of loan ratios, risk profiles, interest rates, maturities, and charges or fees in the secondary market operations of the Administration.
Determinations under clause (i) shall be consistent with the objectives of—
providing an attractive investment environment for clean energy technologies;
making the operations of the Administration self-supporting over the long term; and
advancing the goals established under section 5.
All securities issued or guaranteed by the Administration 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.
Other authorized programs
The Secretary may delegate to the Administration the provision of financial services and program management for grant, loan, and other credit enhancement programs authorized under any other provision of law.
In administering any other program delegated by the Secretary, the Administration shall, to the maximum extent practicable (as determined by the Administrator)—
administer the program in a manner that is consistent with the terms and conditions of this Act; and
minimize the administrative costs to the Federal Government.
Federal Credit Authority
Transfer of functions and authority
Subject to paragraph (2), on a finding by the Secretary and the Administrator that the Administration is sufficiently ready to assume the functions and that applicants to those programs will not be unduly adversely affected but in no case later than 18 months after the date of enactment of this Act, all of the functions and authority of the Secretary under title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) and authorities established by this Act shall be transferred to the Administration.
Failure to transfer functions
If the functions and authorities are not transferred to the Administration in accordance with paragraph (1), the Secretary and the Administrator shall submit to Congress a report on the reasons for delay and an expected timetable for transfer of the functions and authorities to the Administration.
Effect on existing rights and obligations
The transfer of functions and authority under this subsection shall not affect the rights and obligations of any party that arise under a predecessor program or authority prior to the transfer under this subsection.
Transfer of fund authority
On transfer of functions pursuant to paragraph (1), the Administration shall have all authorities to make use of the Fund reserved for the Secretary before the transfer.
Amounts in the Fund shall be available for discharge of liabilities and all other expenses of the Administration, including subsequent transfer to the respective credit program accounts.
On transfer of functions pursuant to paragraph (1), out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Fund to carry out this Act $10,000,000,000, to remain available until expended.
Receipt and acceptance
The Fund shall be entitled to receive and shall accept, and shall be used to carry out this Act, the funds transferred to the Fund under subparagraph (A), without further appropriation.
Authorization of appropriations
In addition to funds made available by paragraphs (1) through (6), there are authorized to be appropriated to the Fund such sums as are necessary to carry out this Act.
Payments of liabilities
Any payment made to discharge liabilities arising from agreements under this Act shall be paid out of the Fund or the associated credit program account, as appropriate.
The full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this Act.
Consistent with achieving the purposes of this Act, the Administrator shall charge fees or collect compensation generally in accordance with commercial rates.
Availability of fees
All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the Administration, without further appropriation or fiscal year limitation, for use in carrying out the purposes of this Act.
The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.
Alternative fee arrangements
The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the Administration.
Cost transfer authority
Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit program accounts.
Supplemental Borrowing Authority
In order to maintain sufficient liquidity for activities authorized under section 7(a)(2), the Administration may issue notes, debentures, bonds, or other obligations for purchase by the Secretary of the Treasury.
Public debt transactions
For the purpose of subsection (e)—
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
the purposes for which securities may be issued under that chapter are extended to include any purchase under this subsection.
Maximum outstanding holding
The Secretary of the Treasury shall purchase instruments issued under subsection (e) to the extent that the purchase would not increase the aggregate principal amount of the outstanding holdings of obligations under subsection (e) by the Secretary of the Treasury to an amount that is greater than $2,000,000,000.
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 of the Treasury 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.
Sale of obligations
The Secretary of the Treasury may at any time sell, on terms and conditions and at prices determined by the Secretary of the Treasury, any of the obligations acquired by the Secretary of the Treasury under this section.
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.
Immunity from impairment, limitation, or restriction
All rights and remedies of the Administration (including any rights and remedies of the Administration 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—
any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration 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
any administrative or other action that becomes effective after the acquisition.
The Administrator may conduct the business of the Administration without regard to any qualification or law of any State relating to incorporation.
Use of other agencies
With the consent of a department, establishment, or instrumentality (including any field office), the Administration may—
use and act through any department, establishment, or instrumentality; or
use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.
The Administrator shall be the senior procurement officer for the Administration for purposes of section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(a)).
Funds of the Administration may be invested in such investments as the Board of Directors may prescribe.
Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator 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 Administrator as a depositary or custodian or as a fiscal or other agent of the Administration.
Notwithstanding section 1349 of title 28, United States Code, or any other provision of law—
the Administration shall be considered a corporation covered by sections 1345 and 1442 of title 28, United States Code;
all civil actions to which the Administration 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
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 Administration is a party may at any time before trial be removed by the Administration, 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—
to the district court of the United States for the district and division embracing the place in which the same is pending; or
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 Administration is located.
Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes a description of—
the technologies supported by activities of the Administration and how the activities advance the purposes of this Act; and
the performance of the Administration on meeting the goals established under section 5.
Audits by the Comptroller General
The programs, activities, receipts, expenditures, and financial transactions of the Administration 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.
The representatives of the Government Accountability Office shall—
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 Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and necessary to facilitate the audit;
be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;
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
have the right of access of the Comptroller General to such information pursuant to section 716(c) of title 31, United States Code.
Assistance and cost
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.
On the request of the Comptroller General, the Administration shall reimburse the General Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.
Such reimbursements shall—
be credited to
the appropriation account entitled
Salaries and Expenses, Government
Accountability Office at the time at which the payment is received;
remain available until expended.
Annual independent audits
The Administrator shall—
have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted auditing standards; and
submit to the Secretary the results of the audit.
In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the Administration—
are presented fairly in accordance with generally accepted accounting principles; and
comply with any disclosure requirements imposed under this Act.
The Administrator shall submit to the Secretary annual and quarterly reports of the financial condition and operations of the Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.
Contents of annual reports
Each annual report shall include—
financial statements prepared in accordance with generally accepted accounting principles;
any supplemental information or alternative presentation that the Secretary may require; and
an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the Administration, of—
the effectiveness of the internal control structure and procedures of the Administration; and
the compliance of the Administration with applicable safety and soundness laws.
The Secretary may require the Administrator to submit other reports on the condition (including financial condition), management, activities, or operations of the Administration, as the Secretary considers appropriate.
Each report of financial condition shall contain a declaration by the Administrator or any other officer designated by the Board of Directors of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.
Availability of reports
Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.
Scope and termination of authority
The Administrator shall not initiate any new obligations under this Act on or after January 1, 2029.
Reversion to Secretary
The authorities and obligations of the Administration shall revert to the Secretary on January 1, 2029.