59–006 

110TH CONGRESS REPT. 110–309 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1 

ENERGY LOAN GUARANTEE AMOUNTS 

AUGUST 3, 2007.—Ordered to be printed 

Mr. DINGELL, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 3241] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 3241) to clarify the amount of loans to be guaranteed 

under Title XVII of the Energy Policy Act of 2005, and for other 

purposes, having considered the same, report favorably thereon 

without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 1 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 2 

Subcommittee Consideration .................................................................................. 3 

Committee Consideration ........................................................................................ 3 

Committee Votes ...................................................................................................... 3 

Committee Oversight Findings ............................................................................... 4 

Statement of General Performance Goals and Objectives .................................... 4 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 4 

Earmarks and Tax and Tariff Benefits .................................................................. 4 

Committee Cost Estimate ....................................................................................... 4 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 4 

Advisory Committee Statement .............................................................................. 4 

Constitutional Authority Statement ...................................................................... 5 

Applicability to Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 5 

PURPOSE AND SUMMARY

The purpose of H.R. 3241 is to clarify the intent of Congress regarding the implementation by the Department of Energy (DOE) of 

Title XVII of the Energy Policy Act of 2005 (EPACT), ‘‘Incentives 

for Innovative Technologies’’, and for other purposes. 


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The bill amends Title XVII to explicitly authorize the Secretary 

of Energy to issue a loan guarantee for an eligible project of up to 

100 percent of any loan or other debt obligation, at a level sufficient to attract adequate nonguaranteed investment to capitalize 

an eligible project. The bill also bars the Secretary from issuing a 

rule or regulation establishing a lower percentage limit. 

In addition, the bill stipulates that no appropriation authorized 

pursuant to Title XVII may exclude any category of eligible project 

under section 1704. 

Finally, H.R. 3241 specifies that the Secretary may not issue a 

loan guarantee unless the borrower has provided reasonable assurances that wages paid to workers employed in any construction 

work financed with the loan will be in accordance with the requirements of the Davis-Bacon Act. 

BACKGROUND AND NEED FOR LEGISLATION

Title XVII authorizes the Secretary of Energy to make loan guarantees for projects that (1) avoid, reduce or sequester air pollutants 

or anthropogenic emissions of greenhouse gases, and (2) employ 

new or significantly improved technologies as compared to commercial technologies in service in the United States. 

Title XVII specifies 10 categories of projects that are eligible for 

loan guarantees, including renewable energy systems, advanced 

fossil technology (including certain coal gasification projects), hydrogen fuel cell technology, advanced nuclear facilities, carbon capture and sequestration, electrical, end-use technologies, fuel efficient vehicles, pollution control equipment, and refiners. 

On May 24, 2007, the Department of Energy (DOE) issued a proposed rule that would limit the amount of a loan guarantee to no 

more than 90 percent of the amount of a debt instrument. (This 

proposal is subject to an existing statutory cap in Title XVII limiting the amount of a loan guarantee to eighty percent of total 

project cost.) 

At the Subcommittee on Energy and Air Quality’s April 24, 2007, 

hearing, several witnesses testified that if DOE adopted an arbitrary limit on the amount of debt for which a loan guarantee could 

be granted, some meritorious projects could be foreclosed. While 

the Committee recognizes that not every meritorious project will 

warrant funding at a level of 100 percent of the value of a debt instrument (subject to the separate statutory limit of eighty percent 

of the total project cost), it expects that some projects will require 

funding at this level. For this reason, the bill bars DOE from 

issuing a final rule that does not permit it to grant, on a case-bycase basis, loan guarantees of as much as 100 percent. 

In addition, the bill clarifies that any appropriation made pursuant to the authority of Title XVII may not exclude any of the 10 

categories of projects made eligible for a loan guarantee under section 1704 of EPACT. 

HEARINGS

There was one oversight hearing and one legislative hearing held 

by the Subcommittee on Energy and Air Quality, Committee on 

Energy and Commerce, in connection with the bill reported by the 

Committee. 


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The Subcommittee on Energy and Air Quality held a hearing entitled, ‘‘Implementation of EPACT 2005 Loan Guarantee Programs 

by the Department of Energy,’’ on Tuesday, April 24, 2007. The 

Subcommittee received testimony from the following witnesses: The 

Honorable Dennis R. Spurgeon, Acting Under Secretary, Department of Energy; Mr. Chris Crane, President and Chief Nuclear Officer, Exelon Generation; Ms. Julie Jorgensen, Co-President and 

CEO, Excelsior Energy Inc.; Mr. James C. Cosgrove, Acting Director, Natural Resources and Environment, Government Accountability Office; and Mr. Denny DeVos, Director of Corporate Finance, POET. 

The Subcommittee on Energy and Air Quality held a legislative 

hearing on ‘‘Discussion Drafts concerning Energy Efficiency, Smart 

Electricity Grid, Energy Policy Act of 2005 Title XVII Loan Guarantees, and Standby Loans for Coal-to-Liquids Projects,’’ on Thursday, May 24, 2007. The Subcommittee received testimony from the 

following witnesses: Mr. David Rogers, Deputy Assistant Secretary 

for Energy Efficiency, Department of Energy; Ms. Kateri Callahan, 

President, Alliance to Save Energy; Mr. Jay Birnbaum, Vice President and General Counsel, Current Group, LLC; Ms. Katharine A. 

Fredriksen, Principal Deputy Assistant Secretary for Policy and 

International Affairs, U.S. Department of Energy; Mr. Don Maley, 

Vice President, Leucadia International Corporation; and Dr. Daniel 

A. Lashof, Ph.D., Science Director, Climate Center, Natural Resources Defense Council. 

SUBCOMMITTEE CONSIDERATION

Prior to the introduction of H.R. 3241, its text was considered in 

the Committee as a Committee Print. 

On Wednesday, June 20, 2007, the Subcommittee on Energy and 

Air Quality met in open markup session and considered a Committee Print to clarify the amount of loans to be guaranteed under 

Title XVII of the Energy Policy Act of 2005. The Subcommittee favorably forwarded the Committee Print to the full Committee, 

amended, by a recorded vote of 17–12. The Committee Print forwarded by the Subcommittee was subsequently designated Committee Print #3 for full Committee consideration. 

COMMITTEE CONSIDERATION

On Wednesday, June 27, 2007, the full Committee met in open 

markup session and ordered the Committee Print favorably reported to the House, as amended, by a voice vote. On July 31, 2007, 

a clean bill, H.R. 3241, was introduced with the approved language 

of the Committee Print, and was referred to the full Committee to 

be reported to the House without further consideration. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. Mr. Dingell moved 

that the Committee favorably report the Committee Print, as 

amended, to the House. The motion to report the Committee Print 

favorably to the House was agreed to by a voice vote. There were 


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no recorded votes taken during full Committee consideration of the 

Committee Print. 

COMMITTEE OVERSIGHT FINDINGS

Regarding clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the oversight findings of the Committee on the 

bill are reflected in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goals and objectives of H.R. 3241 are to clarify the amount 

of loans to be guaranteed under Title XVII of the Energy Policy Act 

of 2005, and to require that recipients of these loan guarantees provide reasonable assurances that workers will be paid prevailing 

wages consistent with the Davis-Bacon Act. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

Regarding compliance with clause 3(c)(2) of rule XIII of the Rules 

of the House of Representatives, the Committee finds that H.R. 

3241 would result in no new or increased budget authority, entitlement authority, or tax expenditures or revenues. 

EARMARKS AND TAX AND TARIFF BENEFITS

Regarding compliance with clause 9 of rule XXI of the Rules of 

the House of Representatives, H.R. 3241 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(d), 9(e), or 9(f) of rule XXI. 

COMMITTEE COST ESTIMATE

The Committee will adopt as its own the cost estimate prepared 

by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Regarding clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, a cost estimate on H.R. 3241 by the Congressional Budget Office pursuant to section 402 of the Congressional 

Budget Act of 1974 was not available as of the time of the filing 

of this report by the Committee. 

FEDERAL MANDATES STATEMENT

The Committee will adopt as its own the estimate of Federal 

mandates prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

Regarding section 5(b) of the Federal Advisory Committee Act, 

the bill does not establish any advisory committee. 


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CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in the provisions of Article 

I, section 8, clause 1, that relate to expending funds to provide for 

the general welfare of the United States. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 101. Amount of loans guaranteed.—This section amends 

section 1702(c) of EPACT to (1) retain the existing statutory limit 

on DOE’s authority to make a loan guarantee for an eligible project 

(up to 80 percent of the project cost of a facility), (2) clarify that 

DOE should approve an amount likely to attract nonguaranteed investment adequate to capitalize the project, (3) provide that while 

DOE has discretion to guarantee up to 100 percent of the loan 

amount (subject to the existing 80 percent of project cost cap), DOE 

may not issue a generic rule establishing a lower percentage limit, 

and (4) require that a recipient of a loan guarantee provide reasonable assurances that construction workers will be paid not less 

than prevailing wages consistent with the Davis-Bacon Act. 

Section 102. Exclusion of categories.—Provides that no appropriation pursuant to this section may exclude any category of ‘‘eligible 

project’’ under Title XVII. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

ENERGY POLICY ACT OF 2005 

* * * * * * * 

TITLE XVII—INCENTIVES FOR 

INNOVATIVE TECHNOLOGIES 

* * * * * * * 

SEC. 1702. TERMS AND CONDITIONS. 

(a) * * * 

* * * * * * * 

ø(c) AMOUNT.—Unless otherwise provided by law, a guarantee by 

the Secretary shall not exceed an amount equal to 80 percent of the 

project cost of the facility that is the subject of the guarantee, as 

estimated at the time at which the guarantee is issued.¿ 


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(c) AMOUNT.— (1) PERCENTAGE OF PROJECT COST.—A guarantee by the Secretary shall not exceed an amount equal to 80 percent of the 

project cost of the facility that is the subject of the guarantee, 

as estimated at the time at which the guarantee is issued, and 

shall be no less than the minimum amount determined by the 

Secretary to be likely to attract nonguaranteed investment adequate to capitalize the project. 

(2) PERCENTAGE OF LOAN.—Subject to paragraph (1), the Secretary may guarantee up to 100 percent of any loan or other 

debt obligation of the borrower to fund an eligible project, and 

may not issue a rule or regulation establishing a lower percentage limit. 

* * * * * * * 

(k) WAGES.—No loan guarantee shall be made under this title unless the borrower has provided to the Secretary reasonable assurances that all laborers and mechanics employed by contractors or 

subcontractors in the performance of construction work financed in 

whole or in part with the loan will be paid wages at rates not less 

than those prevailing on similar work in the locality as determined 

by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the 

Davis-Bacon Act). 

* * * * * * * 

SEC. 1704. AUTHORIZATION OF APPROPRIATIONS. 

(a) * * * 

* * * * * * * 

(c) EXCLUSION OF CATEGORIES.—No appropriation authorized 

pursuant to this section may exclude any category of eligible project 

described in section 1703. 

* * * * * * * 

Æ 


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