A bill to encourage residential use of renewable energy systems by minimizing upfront costs and providing immediate utility cost savings to consumers through leasing of such systems to homeowners, and for other purposes.

Summary: Renewable Energy Access Through Leasing Act of 2010 or the REAL Act of 2010- Authorizes the Secretary of Housing and Urban Development (HUD) to make loan guarantees for the financing of renewable energy systems leased for residential use. Prohibits the Secretary from insuring a loan unless the renewable energy system owner certifies that the systems financed will be leased only to homeowners that grant easements to install, maintain, use and otherwise access the system that include the right to sell electricity produced during the life of the renewable energy system to a wholesale or retail electrical power grid.

Requires the Secretary to: (1) ensure that a discount given under this Act does not adversely affect the homeowner's mortgage requirements; and (2) fix and collect premiums for insurance of loans under this Act that shall be paid for by the renewable energy system owner and that shall be adequate to cover the expenses and probable losses of administering the program. Prohibits the Secretary from assessing any other fee, premium, or charge in connection with such loan insurance.

Establishes the Renewable Energy Lease Insurance Fund, into which the Secretary shall deposit any such premiums.

Terminates the Secretary's authority to insure and make commitments to insure new loans under this Act ten years after its enactment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Energey Access Through 
Leasing Act of 2010'' or the ``REAL Act of 2010''.

SEC. 2. INSURANCE COVERAGE FOR LOANS FOR FINANCING OF RENEWABLE ENERGY 
              SYSTEMS LEASED FOR RESIDENTIAL USE.

    (a) Purposes.--The purposes of this section are--
            (1) to encourage residential use of renewable energy 
        systems by minimizing upfront costs and providing immediate 
        utility cost savings to consumers through leasing of such 
        systems to homeowners;
            (2) to reduce carbon emissions and the use of nonrenewable 
        resources;
            (3) to encourage energy efficient residential construction 
        and rehabilitation;
            (4) to encourage the use of renewable resources by 
        homeowners;
            (5) to minimize the impact of development on the 
        environment;
            (6) to reduce consumer utility costs; and
            (7) to encourage private investment in the green economy.
    (b) Definitions.--As used in this section, the following 
definitions shall apply:
            (1) Authorized renewable energy lender.--The term 
        ``authorized renewable energy lender'' means a lender 
        authorized by the Secretary to make a loan under this section.
            (2) Renewable energy system lease.--The term ``renewable 
        system energy lease'' means an agreement between an authorized 
        renewable energy system owner and a homeowner for a term of not 
        less than 5 years, pursuant to which the homeowner--
                    (A) grants an easement to such renewable energy 
                system owner to install, maintain, use, and otherwise 
                access the renewable energy system; and
                    (B) agrees to--
                            (i) lease the use of such system from such 
                        renewable energy system owner; or
                            (ii) purchase electric power from such 
                        renewable energy system owner.
            (3) Renewable energy manufacturer.--The term ``renewable 
        energy manufacturer'' means a manufacturer of renewable energy 
        systems.
            (4) Renewable energy system owner.--The term ``renewable 
        energy system owner'' means a homebuilder, a manufacturer or 
        installer of a renewable energy system, or any other person, as 
        determined by the Secretary.
            (5) Renewable energy system.--The term ``renewable energy 
        system'' means a system of energy derived from--
                    (A) a wind, solar (including photovoltaic and solar 
                thermal), biomass (including biodiesel), or geothermal 
                source; or
                    (B) hydrogen derived from biomass or water using an 
                energy source described in subparagraph (A).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (c) Authority.--
            (1) In general.--The Secretary may, upon application by an 
        authorized renewable energy system owner, insure or make a 
        commitment to insure a loan made by an authorized renewable 
        energy lender to a renewable energy system owner to finance the 
        acquisition of a renewable energy system for lease to a 
        homeowner for use at the residence of such homeowner.
            (2) Terms and conditions.--The Secretary may prescribe such 
        terms and conditions for insurance under paragraph (1) as are 
        consistent with the purposes of this section.
    (d) Limitation on Principal Amount.--
            (1) Limitation.--The principal amount of a loan insured 
        under this section shall not exceed the residual value of the 
        renewable energy system to be acquired with the loan.
            (2) Residual value.--For purposes of this subsection--
                    (A) the residual value of a renewable energy system 
                is the fair market value of the future revenue stream 
                from the sale of the expected remaining electricity 
                production from the system, pursuant to the easement 
                granted in accordance with subsection (e); and
                    (B) the fair market value of the future revenue 
                stream for each year of the remaining life of the 
                renewable energy system shall be determined based on 
                the net present value of the power output production 
                warranty for such renewable energy system provided by 
                the renewable energy manufacturer and the forecast of 
                regional residential electricity prices made by the 
                Energy Information Administration of the Department of 
                Energy.
    (e) Easement.--The Secretary may not insure a loan under this 
section unless the renewable energy system owner certifies, in 
accordance with such requirements as the Secretary shall establish, 
consistent with the purposes of this section, that the systems financed 
will be leased only to homeowners that grant easements to install, 
maintain, use, and otherwise access the system that include the right 
to sell electricity produced during the life of the renewable energy 
system to a wholesale or retail electrical power grid.
    (f) Discount or Prepayment.--To encourage the use of renewable 
energy systems, the Secretary shall ensure that a discount given to a 
homeowner by a renewable energy system owner or other investor or 
prepayment of a renewable energy system lease by a renewable energy 
system owner does not adversely affect the mortgage requirements of 
such homeowner.
    (g) Eligibility of Lenders.--The Secretary may not insure a loan 
under this section unless the lender making the loan--
            (1) is an institution that--
                    (A) qualifies as a green banking center under 
                section 8(x) of the Federal Deposit Insurance Act (12 
                U.S.C. 1818(x)) or section 206(x) of the Federal Credit 
                Union Act (12 U.S.C. 1786(x)); or
                    (B) meets such other requirements as the Secretary 
                shall establish for participation of renewable energy 
                lenders in the program under this section; and
            (2) meets such qualifications as the Secretary shall 
        establish for all lenders for participation in the program 
        under this section.
    (h) Certificate of Insurance.--
            (1) In general.--The Secretary shall issue to a lender that 
        is insured under this section a certificate that serves as 
        evidence of insurance coverage under this section.
            (2) Contents of certificate.--The certificate required 
        under paragraph (1) shall set forth the fair market value of 
        the future revenue stream for each year of the remaining life 
        of the renewable energy system.
            (3) Full faith and credit.--The certificate required under 
        paragraph (1) shall be backed by the full faith and credit of 
        the United States.
    (i) Payment of Insurance Claim.--
            (1) Filing of claim.--The Secretary shall provide for the 
        filing of claims for insurance under this section and the 
        payment of such claims.
            (2) Payment of claim.--A claim under paragraph (1) may be 
        paid only upon a default under the loan insured under this 
        section and the assignment, transfer, and delivery to the 
        Secretary of--
                    (A) all rights and interests arising under the 
                loan; and
                    (B) all claims of the lender or the assigns of the 
                lender against the borrower or others arising under the 
                loan transaction.
            (3) Lien.--
                    (A) In general.--Upon payment of a claim for 
                insurance of a loan under this section, the Secretary 
                shall hold a lien on the underlying renewable energy 
                system assets and any associated revenue stream from 
                the use of such system, which shall be superior to all 
                other liens on such assets.
                    (B) Residual value.--The residual value of such 
                renewable energy system and the revenue stream from the 
                use of such system shall be not less than the unpaid 
                balance of the loan amount covered by the certificate 
                of insurance.
                    (C) Revenue from sale.--The Secretary shall be 
                entitled to any revenue generated by such renewable 
                energy system from selling electricity to the grid when 
                an insurance claim has been paid out.
    (j) Assignment and Transferability of Insurance.--A renewable 
energy system owner or an authorized renewable energy lender that is 
insured under this section may assign or transfer the insurance in 
whole or in part, to another owner or lender, subject to such 
requirements as the Secretary may prescribe.
    (k) Premiums and Charges.--
            (1) Insurance premiums.--
                    (A) In general.--The Secretary shall fix and 
                collect premiums for insurance of loans under this 
                section, that shall be paid by the applicant renewable 
                energy system owner at the time of issuance of the 
                certificate of insurance to the lender and shall be 
                adequate, in the determination of the Secretary, to 
                cover the expenses and probable losses of administering 
                the program under this section.
                    (B) Deposit of premium.--The Secretary shall 
                deposit any premiums collected under this subsection in 
                the Renewable Energy Lease Insurance Fund established 
                under subsection (l).
            (2) Prohibition on other charges.--Except as provided in 
        paragraph (1), the Secretary may not assess any other fee 
        (including a user fee), insurance premium, or charge in 
        connection with loan insurance provided under this section.
    (l) Renewable Energy Lease Insurance Fund.--
            (1) Fund established.--There is established in the Treasury 
        of the United States the Renewable Energy Lease Insurance Fund 
        (referred to in this subsection as the ``Fund''), which shall 
        be available to the Secretary without fiscal year limitation, 
        for the purpose of providing insurance under this section.
            (2) Credits.--The Fund shall be credited with any premiums 
        collected under subsection (k)(1), any amounts collected by the 
        Secretary under subsection (i)(3), and any associated interest 
        or earnings.
            (3) Availability.--Amounts in the Fund shall be available 
        to the Secretary for fulfilling any obligations with respect to 
        insurance for loans provided under this section and paying 
        administrative expenses in connection with this section.
            (4) Excess amounts.--The Secretary may invest in 
        obligations of the United States any amounts in the Fund 
        determined by the Secretary to be in excess of amounts required 
        at the time of such determination to carry out this section.
    (m) Regulations.--
            (1) In general.--The Secretary shall issue such regulations 
        as may be necessary to carry out this section.
            (2) Timing.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall issue interim or 
        final regulations.
    (n) Ineligibility for Purchase by Federal Financing Bank.--
Notwithstanding any other provision of law, no debt obligation that is 
insured or committed to be insured by the Secretary under this section 
shall be subject to the Federal Financing Bank Act of 1973 (12 U.S.C. 
2281 et seq.).
    (o) Termination of Authority.--The authority of the Secretary to 
insure and make commitments to insure new loans under this Act shall 
terminate 10 years after the date of enactment of this Act.