Private Activity Renewable Energy Bonds Act

Mr. President, childhood obesity is a growing concern in the U.S. and I am pleased that the President and First Lady have decided to tackle this issue with the goal of solving the problem in a generation. Today, one in three children is overweight or obese, which means that they are at a greater risk of developing diabetes, heart disease and cancer over the course of their lives. We are spending nearly $150 billion a year to treat obesity-related medical conditions, and this problem will only become worse if we don't do something about it now.

One way that the Federal Government can play an important role in addressing this problem is by helping to make schools healthier. Students spend an average of nearly 7 hours a day at school, and it is one of the places where kids formally learn and then can practice healthy habits related to nutrition and physical activity. While education is primarily funded by the states, the Federal government plays a significant role in this issue as well because of its funding of the National School Lunch Program. This year, the U.S. Department of Agriculture, USDA, will spend $10.2 billion on the school lunch program, which serves 31 million children across the country every day. In my home State of Illinois, 1.1 million students in over 4,000 schools participate.

The National School Lunch Program was started after World War II, because our leaders then understood the importance of investing in good nutrition to ensure that the country's youth were well nourished and healthy. When President Harry Truman signed the National School Lunch Act, he said that ``in the long view, no nation is healthier than its children.''

Today, we know that the program is making a real difference in millions of kids' lives, by ensuring they don't go hungry during the school day and are ready to learn. We also know that there are some clear nutritional benefits of the program. USDA reports that research on the school lunches consistently shows that participants consume more milk and vegetables at lunch; have higher vitamin intakes; and consume fewer sweets, sweetened beverages, and snack foods than nonparticipants.

However, much of the difference in vegetable consumption may be due to a higher consumption of French fries and other potato products, and many lunches contain a higher percentage of calories from fat than currently recommended. USDA's current nutrition

standards for school meals have not been updated since 1995 and are not in line with the most recent Dietary Guidelines for Americans. I think we need to take President Truman's words to heart, and make long-term investments in this program to ensure that kids are eating healthy meals.

I support the President's goal of increased funding, so that schools can afford to purchase healthier ingredients to make school lunches. However I know that the nutritional quality of school meals varies greatly across the country, and providing every school with adequate funding to improve their meals will be challenging. Some schools have already shown that even with limited resources they can make real improvements in the nutritional quality of their school meals, and make other changes to make school environments healthier.

I would like to build on that concept, which is why I am pleased today to introduce the Healthy School Partnerships Act of 2010. This bill will create a competitive grant program at USDA to allow public schools to explore innovative, sustainable programs that improve the nutritional profile of school meals and make other improvements to make school environments healthier. The bill authorizes $2 million per year for 5 years to fund collaborations of academic experts, dieticians and nutrition professionals, community partners, and local schools to implement and evaluate innovative models to improve food quality, student choices in food, and healthy school environments. This could include starting programs to improve the nutritional content of school meals; providing more nutrition education; changing school policies to promote greater access to healthier foods and physical activity; training teachers, school administrators and nurses; or making other changes to make school environments healthier. We need grass roots involvement and real-world models to solve the childhood obesity problem going forward, and this bill provides the funding to develop those.

Childhood obesity is a complex problem, and to effectively tackle it we will need the commitment of the public and private sectors. The Healthy Schools Partnerships Act of is one part of the solution. By tapping local resources and expertise, we can promote collaborations and develop sustainable and replicable models for making systemic changes that promote good nutrition and healthy living among students.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I rise today to introduce the NIST GREEN JOBS Act, to provide NIST Grants for green jobs, improved energy efficiency, and small business growth.

It has never been easy to be an entrepreneur or small business owner, and this is especially true since the recession began 2 years ago. Many small firms in the manufacturing sector, in particular, have struggled during a time of tight credit markets and reduced consumer demand. In the last 2 years, the manufacturing sector lost over 2 million jobs.

Twenty years ago, when Americans worried about how our small companies would compete globally in the face of stiff competition from Asia, Congress established the Hollings Manufacturing Extension Partnership, MEP, Program to assist small manufacturers.

The MEP program has since helped thousands of small- and medium-sized manufacturers across the nation increase their profit-lines and streamline their business processes through lean manufacturing techniques. The National Institute of Standards and Technology, NIST, is the Federal steward for the nationwide MEP network, which has MEP Centers in all 50 States.

The New Mexico Manufacturing Extension Partnership in Albuquerque was one of the first such centers, and it provides small- and medium-sized manufacturers with the tools they need to grow, improve productivity and expand capacity. Since its creation, the New Mexico MEP has helped create or maintain more than 2,600 jobs in the State and achieve $24 million in annual cost savings for partner companies.

Today, as the U.S. continues to emerge from the worst recession since the Great Depression, the resources and expertise MEP provides manufacturers are more valuable than ever. Our MEP Centers do great work--and I believe they can do even more as companies look for ways to take advantage of new opportunities in a clean energy economy that promotes energy efficiency and independence for our country.

Since manufacturing now plays an increasingly important role in the construction industry, there is an important opportunity for the MEP program to strengthen its support of small manufacturers while also promoting green jobs and energy independence.

Builders today already rely on manufactured components and sub- assemblies. Manufacturing will become even more important to construction as homes are increasingly ``assembled'' on site from components made in a factory. Now that lean, high-quality manufacturing is applicable to construction, it is not a stretch for MEP Centers to teach the same skills to the construction industry, where small firms are the norm.

Technologies exist today for green building construction and retrofitting that can reduce energy use and greenhouse gas emissions. Yet many small firms, especially in the construction sector, do not have the skills or expertise to take advantage of new technologies to improve the energy efficiency. Moreover, NIST researchers at the Buildings and Fire Research Lab already help develop standards and technologies to improve buildings. Buildings today consume 73 percent of electricity and 40 percent of overall energy.

These companies would benefit from the type of training and business analysis activities that MEP Centers already provide to manufacturers. The MEP system could thus be a powerful and transformational force to create green jobs, increase energy efficiency, and promote technological transfer in the construction industry.

That is why I ask for the support of my Senate colleagues for the NIST GREEN JOBS Act, to fund MEP Center pilot projects for green jobs related to energy efficiency. This proposal builds on provisions already authorized by America COMPETES legislation.

My bill simply broadens this existing competitive grant program for MEP pilot projects to include activities related to energy efficiency. It also allows MEP Centers to extend services to companies in the construction industry working in these areas. Awarded on a competitive basis, these pilot projects could last up to 3 years and would be located in each region of the country. The pilot projects would thus create models for new MEP activities and services that could be replicated at MEP Centers regionally or nationwide.

The NIST GREEN JOBS Act authorizes $7 million in annual funding for 3 years. This funding would allow at least one MEP Center in each region to conduct a pilot project. The MEP Centers would not need to provide local matching funds for these competitively awarded pilot projects.

I believe this modest proposal would be a positive step toward both helping create and retain jobs in the manufacturing sector and improving our Nation's energy independence.

I therefore urge the support of all my colleagues for this legislation.

Mr. President, I rise to introduce the Private Activity Renewable Energy Bonds Act, legislation to enable low-cost Private Activity Bond financing for businesses and local governments which seek to create renewable, clean and efficient sources of energy.

The bill is cosponsored by Senator Brown of Ohio. In the United States House of Representatives, Congressman Mike Thompson has introduced a bipartisan companion bill cosponsored by Representatives Dean Heller and Mary Bono Mack.

The bill is supported by a host of business and government leaders and renewable energy companies including the Solar Energy Industries Association, Solar Millennium, Nano Solar, the National Association of Energy Service Companies, EnLink GeoEnergy, Johnson Controls, A123 Systems, the Center for Energy Efficiency and Renewable Technologies, and the U.S. Fuel Cell Council, as well as California Treasurer Bill Lockyer.

The bill provides businesses access to low interest tax free Private Activity Bonds, in order to fund projects that generate renewable energy; produce energy or water savings, or; develop highly efficient vehicles.

To promote such activity in a fiscally responsible manner, the legislation caps the value of bonds at $2.5 billion annually. This represents the investment necessary to replace at least one percent of U.S. electricity generation with renewable sources over the next ten years.

Private Activity Bonds have long been used to generate private involvement and investment in critically important infrastructure for our Nation--from wharves to airports, intercity rail to solid waste disposal facilities and hospitals.

In this century, however, we have new national goals.

Renewable, clean and efficient energy projects will produce jobs, get our economy back-on-track and sustain us as the global leader of a greener century.

These projects, however, require significant front-end capital investment to which the federal government cannot be the sole provider. Private Activity Bonds can prove a critical tool in garnering private investment, because their interest rates typically run a few percent points under commercially available loans.

Investors have long responded to this type of incentive. According to the IRS, Private Activity Bond issuance in 2007 was over $130 billion-- supplying capital to our markets, providing the financing to get projects off the ground.

Projects financed in part by Private Activity Bonds include additions to the San Jose and San Francisco International Airports, the Capitol Beltway High Occupancy Vehicle lanes, infrastructure improvements to the Port of Seattle, and upgrades to Children's Hospital of Orange County, Catholic Healthcare West in San Francisco, and many, many important facilities and projects.

With proper access to capital, we've already seen partnerships between States, municipalities and businesses develop into successful renewable energy programs.

In California, Energy Financing Districts finance residents who choose to install clean energy projects such as distributed solar panels on their homes.

The cost of the solar panel installation or other device is paid back through an increase in property tax only for those property owners who choose to participate in the program.

Now, going solar or installing a geothermal heat pump, which once cost tens of thousands of dollars upfront, has little or no upfront cost to the property owner. It is no wonder why 150 of these programs have been established throughout the country.

This low cost solar opportunity is just one example of the type of programs this bill seeks to support. In partnership, businesses and local governments will develop new and innovative was to create the new high quality jobs of the 21st century.

This Congress and this President have outlined goals to ensure this country leads the world in the creation of a robust, green economy.

This bill looks to connect that laudable goal with proven financing tools to get us there by aligning private sector investment power and job growth with good public policy.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I rise to introduce the Private Activity Renewable Energy Bonds Act, legislation to enable low-cost Private Activity Bond financing for businesses and local governments which seek to create renewable, clean and efficient sources of energy.

The bill is cosponsored by Senator Brown of Ohio. In the United States House of Representatives, Congressman Mike Thompson has introduced a bipartisan companion bill cosponsored by Representatives Dean Heller and Mary Bono Mack.

The bill is supported by a host of business and government leaders and renewable energy companies including the Solar Energy Industries Association, Solar Millennium, Nano Solar, the National Association of Energy Service Companies, EnLink GeoEnergy, Johnson Controls, A123 Systems, the Center for Energy Efficiency and Renewable Technologies, and the U.S. Fuel Cell Council, as well as California Treasurer Bill Lockyer.

The bill provides businesses access to low interest tax free Private Activity Bonds, in order to fund projects that generate renewable energy; produce energy or water savings, or; develop highly efficient vehicles.

To promote such activity in a fiscally responsible manner, the legislation caps the value of bonds at $2.5 billion annually. This represents the investment necessary to replace at least one percent of U.S. electricity generation with renewable sources over the next ten years.

Private Activity Bonds have long been used to generate private involvement and investment in critically important infrastructure for our Nation--from wharves to airports, intercity rail to solid waste disposal facilities and hospitals.

In this century, however, we have new national goals.

Renewable, clean and efficient energy projects will produce jobs, get our economy back-on-track and sustain us as the global leader of a greener century.

These projects, however, require significant front-end capital investment to which the federal government cannot be the sole provider. Private Activity Bonds can prove a critical tool in garnering private investment, because their interest rates typically run a few percent points under commercially available loans.

Investors have long responded to this type of incentive. According to the IRS, Private Activity Bond issuance in 2007 was over $130 billion-- supplying capital to our markets, providing the financing to get projects off the ground.

Projects financed in part by Private Activity Bonds include additions to the San Jose and San Francisco International Airports, the Capitol Beltway High Occupancy Vehicle lanes, infrastructure improvements to the Port of Seattle, and upgrades to Children's Hospital of Orange County, Catholic Healthcare West in San Francisco, and many, many important facilities and projects.

With proper access to capital, we've already seen partnerships between States, municipalities and businesses develop into successful renewable energy programs.

In California, Energy Financing Districts finance residents who choose to install clean energy projects such as distributed solar panels on their homes.

The cost of the solar panel installation or other device is paid back through an increase in property tax only for those property owners who choose to participate in the program.

Now, going solar or installing a geothermal heat pump, which once cost tens of thousands of dollars upfront, has little or no upfront cost to the property owner. It is no wonder why 150 of these programs have been established throughout the country.

This low cost solar opportunity is just one example of the type of programs this bill seeks to support. In partnership, businesses and local governments will develop new and innovative was to create the new high quality jobs of the 21st century.

This Congress and this President have outlined goals to ensure this country leads the world in the creation of a robust, green economy.

This bill looks to connect that laudable goal with proven financing tools to get us there by aligning private sector investment power and job growth with good public policy.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.