S.Amdt. 859

1. Adds SEC. 606. FEDERAL ENERGY BANK on page 194, line 12

   Adds a sectionPrinted page

   Inserted: SEC. 606. FEDERAL ENERGY BANK.

   Inserted: Part 3 of title V of the National Energy Conservation Policy Act is amended by adding at the end the following:

   Inserted: SEC. 553. FEDERAL ENERGY BANK.

   Inserted: "(a) Definitions.--In this section: "(1) Bank.--The term 'Bank' means the Federal Energy Bank established by subsection (b). "(2) Energy or water efficiency project.--The term 'energy or water efficiency project' means a project that assists a Federal agency in meeting or exceeding the energy water efficiency requirements of--"(A) this part; "(B) title VIII; "(C) subtitle F of title I of the Energy Policy Act of 1992 (42 U.S.C. 8262 et seq.); or "(D) any applicable Executive order, including Executive Order No. 13123. "(3) Federal agency.--The term 'Federal agency' means--"(A) an Executive agency (as defined in section 105 of title 5, United States Code); "(B) the United States Postal Service; "(C) Congress and any other entity in the legislative branch; and "(D) a Federal court and any other entity in the judicial branch. "(b) Establishment of Bank.--"(1) In general.--There is established in the Treasury of the United States a fund to be known as the 'Federal Energy Bank', consisting of--"(A) such amounts as are deposited in the Bank under paragraph (2); "(B) such amounts as are repaid to the Bank under subsection (c)(2)(D); and "(C) any interest earned on investment of amounts in the Bank under paragraph (3).

   Inserted: "(2) Deposits in bank.--

   Inserted: "(A) In General.--Subject to the availability of appropriations and to subparagraph (B), the Secretary of the Treasury shall deposit in the Bank an amount equal to $250,000,000 in fiscal year 2004 and in each fiscal year thereafter.

   Inserted: "(B) Maximum amount in bank.--Deposits under subparagraph (a) shall cease beginning with the fiscal year following the fiscal year in which the amounts in the Bank (including amounts on loan from the Bank) become equal to or exceed $1,000,000,000.

   Inserted: "(3) Investment of amounts.--The Secretary of the Treasury shall invest such portion of the Bank as is not, in the judgment of the Secretary, required to meet current withdrawals. Investments may be made only in interest-bearing obligations of the United States.

   Inserted: "(c) Loans From the Bank.--

   Inserted: "(1) In general.--The Secretary of the Treasury shall transfer from the Bank to the Secretary such amounts as are appropriated to carry out the loan program under paragraph (2).

   Inserted: "(2) Loan program.--

   Inserted: "(A) Establishment.--

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   Inserted: "(i) In general.--In accordance with subsection (d), the Secretary, in consultation with the Secretary of Defense, the Administrator of General Services, and the Director of the Office of Management and Budget, shall establish a program to make loans of amounts in the Bank to any Federal agency that submits an application satisfactory to the Secretary in order to pay the costs of a project described in subparagraph (C).

   Inserted: "(ii) Commencement of operations.--The Secretary may begin--

   Inserted: "(I) accepting applications for loans from the Bank in fiscal year 2003; and

   Inserted: "(II) making loans from the Bank in fiscal year 2004.

   Inserted: "(B) Energy savings performance contracting funding.--To the extent practicable, an agency shall not submit a project for which energy performance contracting funding is available and is acceptable to the Federal agency under title VIII.

   Inserted: "(C) Purposes of loan.--

   Inserted: "(i) In general.--A loan from the Bank may be used to pay--

   Inserted: "(I) the costs of an energy or water efficiency project, or a renewable or alternative energy project, for a new or existing Federal building (including selection and design of the project);

   Inserted: "(II) the costs of energy metering plan and metering equipment installed pursuant to section 543(e) or for the purpose of verification of the energy savings under an energy savings performance contract under title VIII; or

   Inserted: "(III) at the time of contracting, the costs of cofunding of an energy savings performance contract (including a utility energy service agreement) in order to shorten the payback period of the project that is the subject of energy savings performance contract.

   Inserted: "(ii) Limitation.--A Federal agency may use not more than 10 percent of the amount of a loan under subclause (I) or (II) of clause (i) to pay the costs of administration and proposal development (including data collection and energy surveys).

   Inserted: "(iii) Renewable and alternative energy Projects.--Not more than 25 percent of the amount on loan from the Bank at any time may be loaned for renewable energy and alternative energy projects (as defined by the Secretary in accordance with applicable law (including Executive Orders)).

   Inserted: "(D) Repayments.--

   Inserted: "(i) In general.--Subject to clauses (ii) through (v), a Federal agency shall repay to the Bank the principal amount of a loan plus interest at a rate determined by the President, in consultation with the Secretary and the Secretary of the Treasury.

   Inserted: "(ii) Waiver or reduction of interest.--The Secretary may waive or reduce the rate of interest required to be paid under clause (i) if the Secretary determines that payment of interest by a Federal agency at the rate determined under that clause is not required to fund the operations of the Bank.

   Inserted: "(iii) Determination of interest rate.--The interest rate determined under clause (i) shall be at a rate that is sufficient to ensure that, beginning not later than October 1, 2007, interest payments will be sufficient to fully fund the operations of the Bank.

   Inserted: "(iv) Insufficiency of appropriations.--

   Inserted: "(I) Request for appropriations.--As part of the budget request of the Federal agency for each fiscal year, the head of each Federal agency shall submit to the President a request for such amounts as are necessary to make such repayments as are expected to become due in the fiscal year under this subparagraph.

   Inserted: "(II) Suspension of repayment requirement.--If, for any fiscal year, sufficient appropriations are not made available to a Federal agency to make repayments under this subparagraph, the Bank shall suspend the requirement of repayment under this subparagraph until such appropriations are made available.

   Inserted: "(E) Federal agency energy budgets.--Until a loan is repaid a Federal agency budget submitted by the President to Congress for a fiscal year shall not be reduced by the value of energy savings accrued as a result of any energy conservation measure implemented using amounts from the Bank.

   Inserted: "(F) No rescission or reprogramming.-- A Federal agency shall not rescind or reprogram loan amounts made available from the Bank except as permitted under guidelines and issued under subparagraph (G).

   Inserted: "(G) Guidelines.--The Secretary shall issue guidelines for implementation of the loan program under this paragraph, including selection criteria, maximum loan amounts, and loan repayment terms.

   Inserted: "(d) Selection Criteria.--

   Inserted: "(1) In general.--The Secretary shall establish criteria for the selection of projects to be awarded loans in accordance with paragraph (2).

   Inserted: "(2) Selection criteria.--

   Inserted: "(A) In general.--The Secretary may make loans from the Bank only for a project that--

   Inserted: "(i) is technically feasible;

   Inserted: "(ii) is determined to be cost-effective using life cycle cost methods established by the Secretary;

   Inserted: "(iii) includes a measurement and management component, based on the measurement and verification protocols of the Department of Energy, to--

   Inserted: "(I) commission energy savings for new and existing Federal facilities;

   Inserted: "(II) monitor and improve energy efficiency management at existing Federal facilities; and

   Inserted: "(III) verify the energy savings under an energy savings performance contract under title VIII; and

   Inserted: (iv)(I) in the case of a renewable energy or alternative energy project, has a simple payback period of not more than 15 years; and

   Inserted: "(II) in the case of any other project, has a simple payback period of not more than 10 years.

   Inserted: "(B) Priority.--In selecting projects, the Secretary shall give priority to projects that--

   Inserted: "(i) are a component of a comprehensive energy management project for a Federal facility; and

   Inserted: "(ii) are designed to significantly reduce the energy use of the Federal facility.

   Inserted: "(e) Reports and Audits.--

   Inserted: "(1) Reports to the secretary.--Not later than 1 year after the completion of installation of a project that has a cost of more than $1,000,000, and annually thereafter, a Federal agency shall submit to the Secretary a report that--

   Inserted: "(A) states whether the project meets or fails to meet the energy savings projections for the project; and

   Inserted: "(B) for each project that fails to meet the energy savings projections, states the reasons for the failure and describes proposed remedies.

   Inserted: "(2) Audits.--The Secretary may audit, or require a Federal agency that receives a loan from the Bank to audit, any project financed with amounts from the Bank to assess the performance of the project.

   Inserted: "(3) Reports to congress.--At the end of each fiscal year, the Secretary shall submit to Congress a report on the operations of the Bank, including a statement of--

   Inserted: "(A) the total receipts by the Bank;

   Inserted: "(B) the total amount of loans from the Bank to each Federal agency; and

   Inserted: "(C) the estimated cost and energy savings resulting from projects funded with loans from the Bank.

   Inserted: "(f) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.".

   Original wording

   On page 194, line 12, insert the following and renumber accordingly:

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As printed