S. 3746

A bill to amend the Energy Policy Act of 2005 to improve the loan guarantee program of the Department of Energy under title XVII of that Act.

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II

111th CONGRESS

2d Session

S. 3746

IN THE SENATE OF THE UNITED STATES

August 5, 2010

Mr. Bingaman (for himself, Mrs. Shaheen, Mrs. Boxer, and Mrs. Feinstein) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

To amend the Energy Policy Act of 2005 to improve the loan guarantee program of the Department of Energy under title XVII of that Act.

1.

Incentives for innovative technologies loan guarantee program

(a)

Specific appropriation or contribution

Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended—

(1)

by striking subsection (b) and inserting the following:

(b)

Specific appropriation or contribution

(1)

In general

No guarantee shall be made unless—

(A)

an appropriation for the cost of the guarantee has been made;

(B)

the Secretary has received from the borrower a payment in full for the cost of the guarantee and deposited the payment into the Treasury; or

(C)

a combination of appropriations under subparagraph (A) or payments from the borrower under subparagraph (B) has been made that is sufficient to cover the cost of the guarantee.

(2)

Limitation

The source of payments received from a borrower under subparagraph (B) or (C) of paragraph (1) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.

; and

(2)

by adding at the end the following:

(l)

Credit report

If, in the opinion of the Secretary, a third-party credit rating of the applicant or project is not relevant to the determination of the credit risk of a project, if the project costs are not projected to exceed $100,000,000, and the applicant agrees to accept the credit rating assigned to the applicant by the Secretary, the Secretary may waive any otherwise applicable requirement (including any requirement described in part 609 of title 10, Code of Federal Regulations) to provide a third-party credit report.

(m)

Direct hire authority

(1)

In general

Notwithstanding sections 3304 and sections 3309 through 3318 of title 5, United States Code, the head of the loan guarantee program under this title (referred to in this subsection as the Executive Director) may, on a determination that there is a severe shortage of candidates or a severe hiring need for particular positions to carry out the functions of this title, recruit and directly appoint highly qualified critical personnel with specialized knowledge important to the function of the programs under this title into the competitive service.

(2)

Exception

The authority granted under paragraph (1) shall not apply to positions in the excepted service or the Senior Executive Service.

(3)

Requirements

In exercising the authority granted under paragraph (1), the Executive Director shall ensure that any action taken by the Executive Director—

(A)

is consistent with the merit principles of section 2301 of title 5, United States Code; and

(B)

complies with the public notice requirements of section 3327 of title 5, United States Code.

(4)

Sunset

The authority provided under paragraph (1) shall terminate on September 30, 2011.

(n)

Professional advisors

The Secretary may—

(1)

retain agents and legal and other professional advisors in connection with guarantees and related activities authorized under this title;

(2)

require applicants for and recipients of loan guarantees to pay all fees and expenses of the agents and advisors; and

(3)

notwithstanding any other provision of law, select such advisors in such manner and using such procedures as the Secretary determines to be appropriate to protect the interests of the United States and achieve the purposes of this title.

(o)

Multiple sites

Notwithstanding any contrary requirement (including any provision under part 609.12 of title 10, Code of Federal Regulations) an eligible project may be located on 2 or more non-contiguous sites in the United States.

.

(b)

Applications for multiple eligible projects

Section 1705 of the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended—

(1)

by redesignating subsection (e) as subsection (f); and

(2)

by inserting after subsection (d) the following:

(e)

Multiple applications

Notwithstanding any contrary requirement (including any provision under part 609.3(a) of title 10, Code of Federal Regulations), a project applicant or sponsor of an eligible project may submit an application for more than 1 eligible project under this section.

.

(c)

Energy efficiency loan guarantees

Section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at the end the following:

(4)

Energy efficiency projects, including projects to retrofit residential, commercial, and industrial buildings, facilities, and equipment.

.

(d)

Fees; professional advisors

Section 136 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17013) is amended—

(1)

by striking subsection (f) and inserting the following:

(f)

Fees

Except as otherwise permitted under subsection (i), administrative costs shall be not more than $100,000 or 10 basis points of the loan.

;

(2)

by redesignating subsections (i) and (j) as subsections (j) and (k), respectively; and

(3)

by inserting after subsection (h) the end the following:

(i)

Professional advisors

The Secretary may—

(1)

retain agents and legal and other professional advisors in connection with guarantees and related activities authorized under this section;

(2)

require applicants for and recipients of loan guarantees to pay directly, or through the payment of fees to the Secretary, all fees and expenses of the agents and advisors; and

(3)

notwithstanding any other provision of law, select such advisors in such manner and using such procedures as the Secretary determines to be appropriate to protect the interests of the United States and achieve the purposes of this section.

.