To establish a loan guarantee program for renewable energy source facilities.

Summary: Renewable Energy Loan Guarantee Act of 2001 - Establishes the: (1) Renewable Energy Source Facility Guaranteed Loan Program to guarantee loans provided by private banking and investment institutions for qualified renewable energy source facilities; and (2) a Loan Guarantee Board to administer the Program. Sets forth loan guarantee terms and conditions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Energy Loan Guarantee Act 
of 2001''.

SEC. 2. RENEWABLE ENERGY SOURCE LOAN GUARANTEES.

    (a) Definitions.--For purposes of this section:
            (1) Board.--The term ``Board'' means the Loan Guarantee 
        Board established by subsection (b)(2).
            (2) Incremental hydropower.--The term ``incremental 
        hydropower'' means additional generating capacity achieved from 
        increased efficiency at a non-Federal hydroelectric facility in 
        existence on January 1, 2001, and licensed by the Federal 
        Energy Regulatory Commission.
            (3) Program.--The term ``Program'' means the Renewable 
        Energy Source Facility Guaranteed Loan Program established by 
        subsection (b)(1).
            (4) Qualified renewable energy source facility.--The term 
        ``qualified renewable energy source facility'' means a facility 
        that generates electric energy for sale in, or affecting, 
        interstate commerce using solar, wind, biomass, landfill gas, 
        incremental hydropower, or geothermal energy.
    (b) Renewable Energy Source Facility Guaranteed Loan Program.--
            (1) In general.--There is established the Renewable Energy 
        Source Facility Guaranteed Loan Program, the purpose of which 
        shall be to provide loan guarantees for qualified renewable 
        energy source facilities in accordance with this section.
            (2) Loan guarantee board.--There is established to 
        administer the Program a Loan Guarantee Board, to be composed 
        of--
                    (A) the Secretary of Energy, or the Secretary's 
                designee, who shall serve as Chairman of the Board;
                    (B) the Secretary of Commerce, or the Secretary's 
                designee;
                    (C) the Chairman of the Board of Governors of the 
                Federal Reserve System, or the Chairman's designee; and
                    (D) the Secretary of the Treasury, or the 
                Secretary's designee.
    (c) Authority.--
            (1) In general.--The Program may guarantee loans provided 
        for qualified renewable energy source facilities by private 
        banking and investment institutions in accordance with 
        procedures, rules, and regulations established by the Board. 
        The Board shall ensure that small businesses receive an 
        appropriate amount and number of loan guarantees under the 
        Program, consistent with applicable laws and goals for small 
        business participation in Federal programs.
            (2) Total guarantee limit.--The aggregate amount of loans 
        guaranteed and outstanding at any one time under this section 
        shall not exceed $750,000,000.
            (3) Expeditious action on applications.--The Board shall 
        approve or deny an application for a guarantee under this 
        section as soon as practicable after receipt of an application.
    (d) Requirements for Loan Guarantees.--The Board may issue a loan 
guarantee on application by the owner or operator of a qualified 
renewable energy source facility under an agreement by a private bank 
or investment company to provide a loan for the qualified renewable 
energy source facility, if the Board determines that--
            (1) credit is not otherwise available to the owner or 
        operator under reasonable terms or conditions sufficient to 
        meet its financing needs, as reflected in the financial and 
        business plans of the owner or operator;
            (2) the prospective earning power of the owner or operator 
        of the facility, together with the character and value of the 
        security pledged, provide a reasonable assurance of repayment 
        of the loan to be guaranteed in accordance with its terms; and
            (3) the loan to be guaranteed bears interest at a rate 
        determined by the Board to be reasonable, taking into account 
        the current average yield on outstanding obligations of the 
        United States with remaining periods of maturity comparable to 
        the maturity of the loan.
    (e) Terms and Conditions of Loan Guarantees.--
            (1) Loan duration.--All loans guaranteed under this section 
        shall be repayable in full not later than December 31, 2025, 
        and the terms and conditions of each such loan shall provide 
        that the loan agreement may not be amended, or any provision of 
        the loan agreement waived, without the consent of the Board.
            (2) Loan security.--A commitment to issue a loan guarantee 
        under this section shall contain such affirmative and negative 
        covenants and other protective provisions as the Board 
        determines are appropriate. The Board shall require security 
        for the loans to be guaranteed under this section at the time 
        at which the commitment is made.
            (3) Fees.--The owner or operator of a qualified renewable 
        energy source facility receiving a loan guarantee under this 
        section shall pay a fee to the Department of the Treasury to 
        cover costs of the Program, but in no event shall such fee 
        exceed an amount equal to 0.5 percent of the outstanding 
        principal balance of the guaranteed loan.
            (4) Audits.--The General Accounting Office shall audit, 
        before issuance of a loan guarantee under this section, and 
        once every 2 years while the guaranteed loan is outstanding, 
        the owner or operator of the facility with respect to which the 
        loan guarantee is issued.
    (f) Reports.--During each fiscal year until each guaranteed loan 
has been repaid in full, the Secretary of Energy shall submit to 
Congress a report on the activities of the Board.