To provide for loan guarantees for retrofitting high-performance green buildings.

Summary: Requires the Secretary of Energy to make loan guarantees for renovation projects that: (1) are eligible under the Energy Policy Act of 2005 guarantee program as projects that avoid, reduce, or sequester air pollutants or greenhouse gases and employ new or significantly improved technologies; and (2) will result in a building achieving the United States Green Building Council Leadership in Energy and Environmental Design certified level or meeting a comparable standard approved by the Secretary.

Prohibits such guarantees unless: (1) an appropriation for the cost has been made or the Secretary has received from the borrower and deposited into the Treasury a payment in full for the cost of the obligation; or (2) the Secretary determines that there is a reasonable prospect of repayment of the principal and interest on the obligation by the borrower. Limits the amount of loans that may be guaranteed at any one time to no more than $100 million.

 Sets forth provisions concerning: (1) the terms of obligations; (2) payments by the Secretary to the holders of the obligation for the borrower; and (3) actions by the Attorney General to recover unpaid principal and interest from a defaulting borrower.

SECTION 1. HIGH-PERFORMANCE GREEN BUILDINGS RETROFIT LOAN GUARANTEES.

    (a) Definitions.--In this section:
            (1) Cost.--The term ``cost'' has the meaning given the term 
        ``cost of a loan guarantee'' within the meaning of section 
        502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5)(C)).
            (2) Guarantee.--
                    (A) In general.--The term ``guarantee'' has the 
                meaning given the term ``loan guarantee'' in section 
                502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a).
                    (B) Inclusion.--The term ``guarantee'' includes a 
                loan guarantee commitment (as defined in section 502 of 
                the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
            (3) Obligation.--The term ``obligation'' means the loan or 
        other debt obligation that is guaranteed under this section.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Eligible Purposes.--The Secretary shall make loan guarantees 
under this section for renovation projects that are eligible projects 
within the meaning of section 1703 of the Energy Policy Act of 2005 and 
that will result in a building achieving the United States Green 
Building Council Leadership in Energy and Environmental Design 
``certified'' level, or meeting a comparable standard approved by the 
Secretary.
    (c) Terms and Conditions.--
            (1) In general.--The Secretary shall make guarantees under 
        this section for projects on such terms and conditions as the 
        Secretary determines, after consultation with the Secretary of 
        the Treasury, in accordance with this section, including 
        limitations on the amount of any loan guarantee to ensure 
        distribution to a variety of borrowers.
            (2) Specific appropriation or contribution.--No guarantee 
        shall be made under this section unless--
                    (A) an appropriation for the cost has been made; or
                    (B) the Secretary has received from the borrower a 
                payment in full for the cost of the obligation and 
                deposited the payment into the Treasury.
            (3) Limitation.--Not more than $100,000,000 in loans may be 
        guaranteed under this section at any one time.
            (4) Amount.--Unless otherwise provided by law, a guarantee 
        by the Secretary under this section shall not exceed an amount 
        equal to 80 percent of the project cost that is the subject of 
        the guarantee, as estimated at the time at which the guarantee 
        is issued.
            (5) Repayment.--No guarantee shall be made under this 
        section unless the Secretary determines that there is 
        reasonable prospect of repayment of the principal and interest 
        on the obligation by the borrower.
            (6) Interest rate.--An obligation shall bear interest at a 
        rate that does not exceed a level that the Secretary determines 
        appropriate, taking into account the prevailing rate of 
        interest in the private sector for similar loans and risks.
            (7) Term.--The term of an obligation shall require full 
        repayment over a period not to exceed the lesser of--
                    (A) 30 years; or
                    (B) 90 percent of the projected useful life of the 
                building whose renovation is to be financed by the 
                obligation (as determined by the Secretary).
            (8) Defaults.--
                    (A) Payment by secretary.--
                            (i) In general.--If a borrower defaults on 
                        the obligation (as defined in regulations 
                        promulgated by the Secretary and specified in 
                        the guarantee contract), the holder of the 
                        guarantee shall have the right to demand 
                        payment of the unpaid amount from the 
                        Secretary.
                            (ii) Payment required.--Within such period 
                        as may be specified in the guarantee or related 
                        agreements, the Secretary shall pay to the 
                        holder of the guarantee the unpaid interest on, 
                        and unpaid principal of the obligation as to 
                        which the borrower has defaulted, unless the 
                        Secretary finds that there was no default by 
                        the borrower in the payment of interest or 
                        principal or that the default has been 
                        remedied.
                            (iii) Forbearance.--Nothing in this 
                        paragraph precludes any forbearance by the 
                        holder of the obligation for the benefit of the 
                        borrower which may be agreed upon by the 
                        parties to the obligation and approved by the 
                        Secretary.
                    (B) Subrogation.--
                            (i) In general.--If the Secretary makes a 
                        payment under subparagraph (A), the Secretary 
                        shall be subrogated to the rights of the 
                        recipient of the payment as specified in the 
                        guarantee or related agreements including, 
                        where appropriate, the authority 
                        (notwithstanding any other provision of law) 
                        to--
                                    (I) complete, maintain, operate, 
                                lease, or otherwise dispose of any 
                                property acquired pursuant to such 
                                guarantee or related agreements; or
                                    (II) permit the borrower, pursuant 
                                to an agreement with the Secretary, to 
                                continue to pursue the purposes of the 
                                project if the Secretary determines 
                                this to be in the public interest.
                            (ii) Superiority of rights.--The rights of 
                        the Secretary, with respect to any property 
                        acquired pursuant to a guarantee or related 
                        agreements, shall be superior to the rights of 
                        any other person with respect to the property.
                            (iii) Terms and conditions.--A guarantee 
                        agreement shall include such detailed terms and 
                        conditions as the Secretary determines 
                        appropriate to--
                                    (I) protect the interests of the 
                                United States in the case of default; 
                                and
                                    (II) have available all the patents 
                                and technology necessary for any person 
                                selected, including the Secretary, to 
                                complete and operate the project.
                    (C) Payment of principal and interest by 
                secretary.--With respect to any obligation guaranteed 
                under this section, the Secretary may enter into a 
                contract to pay, and pay, holders of the obligation, 
                for and on behalf of the borrower, from funds 
                appropriated for that purpose, the principal and 
                interest payments which become due and payable on the 
                unpaid balance of the obligation if the Secretary finds 
                that--
                            (i)(I) the borrower is unable to meet the 
                        payments and is not in default;
                            (II) it is in the public interest to permit 
                        the borrower to continue to pursue the purposes 
                        of the project; and
                            (III) the probable net benefit to the 
                        Federal Government in paying the principal and 
                        interest will be greater than that which would 
                        result in the event of a default;
                            (ii) the amount of the payment that the 
                        Secretary is authorized to pay shall be no 
                        greater than the amount of principal and 
                        interest that the borrower is obligated to pay 
                        under the agreement being guaranteed; and
                            (iii) the borrower agrees to reimburse the 
                        Secretary for the payment (including interest) 
                        on terms and conditions that are satisfactory 
                        to the Secretary.
                    (D) Action by attorney general.--
                            (i) Notification.--If the borrower defaults 
                        on an obligation, the Secretary shall notify 
                        the Attorney General of the default.
                            (ii) Recovery.--On notification, the 
                        Attorney General shall take such action as is 
                        appropriate to recover the unpaid principal and 
                        interest due from--
                                    (I) such assets of the defaulting 
                                borrower as are associated with the 
                                obligation; or
                                    (II) any other security pledged to 
                                secure the obligation.
            (9) Fees.--
                    (A) In general.--The Secretary shall charge and 
                collect fees for guarantees in amounts the Secretary 
                determines are sufficient to cover applicable 
                administrative expenses.
                    (B) Availability.--Fees collected under this 
                paragraph shall--
                            (i) be deposited by the Secretary into the 
                        Treasury; and
                            (ii) remain available until expended, 
                        subject to such other conditions as are 
                        contained in annual appropriations Acts.
            (10) Records; audits.--
                    (A) In general.--A recipient of a guarantee shall 
                keep such records and other pertinent documents as the 
                Secretary shall prescribe by regulation, including such 
                records as the Secretary may require to facilitate an 
                effective audit.
                    (B) Access.--The Secretary and the Comptroller 
                General of the United States, or their duly authorized 
                representatives, shall have access, for the purpose of 
                audit, to the records and other pertinent documents.
            (11) Full faith and credit.--The full faith and credit of 
        the United States is pledged to the payment of all guarantees 
        issued under this section with respect to principal and 
        interest.