II 

115TH CONGRESS 

1ST SESSION S. 2191 

To promote investments in renewable energy and consumer loans for 

residential solar energy systems. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 4, 2017 

Mr. NELSON introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To promote investments in renewable energy and consumer 

loans for residential solar energy systems. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Green Banking Act’’. 

5 SEC. 2. DEFINITIONS. 

6 In this Act— 

7 (1) the term ‘‘joint resolution of approval’’ 

8 means only a joint resolution of either House of 

9 Congress— 


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1 (A) the title of which is as follows: ‘‘Ap2 proving the permanent extension of section 3 of 

3 the Green Banking Act relating to the special 

4 allowance for financial institutions investing in 

5 renewable energy companies.’’; and 

6 (B) the sole matter after the resolving 

7 clause of which is the following : ‘‘Congress ap8 proves the permanent extension of section 3 of 

9 the Green Banking Act effective as of 

10 llllllll.’’, with the blank space 

11 being filled with a date that is not more than 

12 25 years after the date of enactment of this 

13 Act; and 

14 (2) the term ‘‘qualified renewable energy activi15 ties’’ means— 

16 (A) the production of solar energy systems, 

17 as defined in section 2(a) of the National Hous18 ing Act (12 U.S.C. 1703(a)), in the United 

19 States; or 

20 (B) the production or storage of energy 

21 within the United States that is solely derived 

22 from— 

23 (i) solar radiation; 

24 (ii) wind; 

25 (iii) ocean thermal gradients; 


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1 (iv) ocean currents and waves; 

2 (v) hydropower; 

3 (vi) the photovoltaic effect (as defined 

4 in section 3 of the Solar Photovoltaic En5 ergy Research, Development, and Dem6 onstration Act of 1978 (42 U.S.C. 5582)); 

7 (vii) geothermal deposits (as defined 

8 in section 613(e) of the Internal Revenue 

9 Code of 1986); 

10 (viii) biomass (as defined in section 

11 203 of the Biomass Energy and Alcohol 

12 Fuels Act of 1980 (42 U.S.C. 8802)); or 

13 (ix) fusion (as defined in section 3 of 

14 the Magnetic Fusion Energy Engineering 

15 Act of 1980 (42 U.S.C. 9302)); and 

16 (C) does not include any activity that fa17 cilitates the production, use, transmission, or 

18 transportation of energy derived from fossil 

19 fuels. 

20 SEC. 3. SPECIAL ALLOWANCE FOR FINANCIAL INSTITU21 TIONS INVESTING IN RENEWABLE ENERGY 

22 COMPANIES. 

23 (a) INTERESTS IN NONBANKING ORGANIZATIONS.— 


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1 (1) IN GENERAL.—Section 4 of the Bank Hold2 ing Company Act of 1956 (12 U.S.C. 1843) is 

3 amended— 

4 (A) in subsection (c)— 

5 (i) in paragraph (13), by striking ‘‘or’’ 

6 at the end; 

7 (ii) by redesignating paragraph (14) 

8 as paragraph (15); and 

9 (iii) by inserting after paragraph (13) 

10 the following: 

11 ‘‘(14) shares of any company engaged solely in 

12 qualified renewable energy activities if such shares 

13 do not exceed 20 per centum of the outstanding vot14 ing shares of such company; or’’; and 

15 (B) in subsection (j)— 

16 (i) in paragraph (1)(A), by inserting 

17 ‘‘, (c)(14),’’ after ‘‘(c)(8)’’; 

18 (ii) in paragraph (2), by striking sub19 paragraph (A) and inserting the following: 

20 ‘‘(A) CRITERIA.— 

21 ‘‘(i) IN GENERAL.—In connection with 

22 a notice under this subsection, the Board 

23 shall consider whether performance of the 

24 activity by a bank holding company or a 

25 subsidiary of such company can reasonably 


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1 be expected to produce benefits to the pub2 lic, such as greater convenience, increased 

3 competition, or gains in efficiency, that 

4 outweigh possible adverse effects, such as 

5 undue concentration of resources, de6 creased or unfair competition, conflicts of 

7 interests, unsound banking practices, or 

8 risk to the stability of the United States 

9 banking or financial system. 

10 ‘‘(ii) ADDITIONAL CRITERIA.—In con11 nection with a notice related to an exemp12 tion under subsection (c)(14), the Board 

13 shall, in addition to the criteria listed 

14 under clause (i), consider whether perform15 ance of the activity by a bank holding com16 pany or a subsidiary of such company can 

17 reasonably be expected to produce a posi18 tive outcome for environmental protection, 

19 ecological sustainability, or technology ad20 vancement.’’; 

21 (iii) in paragraph (4)— 

22 (I) in subparagraph (C)(i), by in23 serting ‘‘or (c)(14)’’ after ‘‘(c)(8)’’; 

24 and 


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1 (II) in subparagraph (D)(i), by 

2 inserting ‘‘(determined without regard 

3 to 50 percent of the value of any asset 

4 acquired under subsection (c)(14))’’ 

5 before the period at the end; and 

6 (iv) in paragraph (5)(A), by inserting 

7 ‘‘or (c)(14)’’ after ‘‘(c)(8)’’. 

8 (2) TECHNICAL AND CONFORMING AMEND9 MENT.—Section 206 of the Bank Export Services 

10 Act (12 U.S.C. 635a–4) is amended, in the matter 

11 preceding paragraph (1), by striking ‘‘section 

12 4(c)(14)(F)(i)’’ and inserting ‘‘section 

13 4(c)(15)(F)(i)’’. 

14 (3) SUNSET.—The amendments made under 

15 this section shall not apply after the date that is 30 

16 years after the date of enactment of this Act unless 

17 Congress enacts a joint resolution of approval. 

18 SEC. 4. UNDERWRITING STANDARDS FOR RESIDENTIAL 

19 SOLAR. 

20 Section 1335 of the Federal Housing Enterprises Fi21 nancial Safety and Soundness Act of 1992 (12 U.S.C. 

22 4565(b)) is amended— 

23 (1) in subsection (b)— 


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1 (A) paragraph (3), in the matter following 

2 subparagraph (B), by striking ‘‘and’’ at the 

3 end; 

4 (B) in paragraph (4), by striking the pe5 riod at the end and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(5) develop appropriate and prudent under8 writing guidelines relating to financing for residen9 tial solar energy systems, as defined in section 2(a) 

10 of the National Housing Act (12 U.S.C. 1703(a)), to 

11 facilitate the secondary market for mortgages on 

12 housing with such systems for low- and moderate-in13 come households, including systems not owned by 

14 the mortgagor but subject to lease, power purchase, 

15 or other contractual terms.’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(e) REPORT TO CONGRESS.— 

18 ‘‘(1) REVIEW.— 

19 ‘‘(A) IN GENERAL.—The Director shall 

20 conduct a review to identify ways to increase 

21 the financing for residential solar energy system 

22 property improvements in underserved markets, 

23 including examining current obstacles to such 

24 financing. 


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1 ‘‘(B) CONSULTATION.—In conducting the 

2 review under subparagraph (A), the Director 

3 shall solicit the views of, and consult with— 

4 ‘‘(i) Federal agencies supporting hous5 ing finance and financial markets; 

6 ‘‘(ii) representatives of State financial 

7 regulators; and 

8 ‘‘(iii) appropriate Federal and State 

9 energy agencies. 

10 ‘‘(2) REPORT.—Not later than 18 months after 

11 the date of enactment of this subsection, the Direc12 tor shall submit to the Committee on Banking, 

13 Housing, and Urban Affairs of the Senate and the 

14 Committee on Financial Services of the House of 

15 Representatives a report with— 

16 ‘‘(A) the results of the review conducted 

17 under paragraph (1); and 

18 ‘‘(B) any legislative recommendations to 

19 promote greater use of residential solar energy 

20 systems.’’. 

Æ 


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