I 

111TH CONGRESS 

1ST SESSION H. R. 4155 

To amend the Internal Revenue Code of 1986 to permit the issuance of 

tax-exempt bonds for financing clean energy improvements under State 

and local property assessed clean energy programs. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2009 

Mr. SARBANES introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to permit 

the issuance of tax-exempt bonds for financing clean 

energy improvements under State and local property assessed clean energy programs. 

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 ‘‘Property Assessed 

5 Clean Energy Tax Benefits Act of 2009’’. 


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1 SEC. 2. PROPERTY ASSESSED CLEAN ENERGY BONDS. 

2 (a) IN GENERAL.—Section 144 of the Internal Rev3 enue Code of 1986 is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(d) PROPERTY ASSESSED CLEAN ENERGY

6 BONDS.—For purposes of this part— 

7 ‘‘(1) IN GENERAL.—The term ‘property as8 sessed clean energy bond’ means any bond issued as 

9 part of an issue 95 percent or more of the net pro10 ceeds of which are to be used to finance clean energy 

11 improvements under a qualified property assessed 

12 clean energy program. 

13 ‘‘(2) QUALIFIED PROPERTY ASSESSED CLEAN

14 ENERGY PROGRAM.—For purposes of this sub15 section— 

16 ‘‘(A) IN GENERAL.—The term ‘qualified 

17 property assessed clean energy program’ means 

18 a program of a State or local government (or 

19 a political subdivision thereof) under which such 

20 State or local government finances clean energy 

21 improvements with respect to any building in 

22 exchange for an assessment with respect to 

23 such building under an agreement which— 

24 ‘‘(i) is between the State or local gov25 ernment and the owner of the building, 


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1 ‘‘(ii) provides for an initial energy use 

2 audit of the building with respect to which 

3 clean energy improvements are to be made, 

4 ‘‘(iii) requires disclosure of the State 

5 or local government’s estimate of utility 

6 savings for any proposed clean energy im7 provements, 

8 ‘‘(iv) provides that the State or local 

9 government shall arrange and finance any 

10 clean energy improvements, and 

11 ‘‘(v) specifies the term and rate of as12 sessment with respect to the building for 

13 such clean energy improvements. 

14 ‘‘(B) CLEAN ENERGY IMPROVEMENTS.— 

15 For purposes of this subsection— 

16 ‘‘(i) IN GENERAL.—The term ‘clean 

17 energy improvements’ means any distrib18 uted generation renewable energy sources, 

19 energy efficiency improvements, or water 

20 efficiency improvements which— 

21 ‘‘(I) are permanently fixed to the 

22 building, and 

23 ‘‘(II) will result in a 20 percent 

24 savings from the previous level of con25 sumption with respect to the building 


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1 as determined in the energy audit de2 scribed in subparagraph (A)(ii). 

3 ‘‘(ii) SPECIAL RULE RELATING TO

4 DISTRIBUTED GENERATION RENEWABLE

5 ENERGY SOURCES.—A distributed genera6 tion renewable energy source shall not be 

7 treated as a clean energy improvement 

8 with respect to a building unless energy ef9 ficiency improvements or water efficiency 

10 improvements are made with respect to 

11 such building under the program.’’. 

12 (b) TREATED AS QUALIFIED BOND.—Paragraph (1) 

13 of section 141(e) of such Code is amended by striking ‘‘or’’ 

14 at the end of subparagraph (F), by striking the period 

15 at the end of subparagraph (G) and inserting ‘‘, or’’, and 

16 by adding at the end the following new subparagraph: 

17 ‘‘(H) a property assessed clean energy 

18 bond.’’. 

19 (c) CLERICAL AMENDMENTS.— 

20 (1) The heading of section 144 of such Code is 

21 amended by striking ‘‘BOND.’’ and inserting 

22 ‘‘BOND; PROPERTY ASSESSED CLEAN ENERGY

23 BOND.’’ 

24 (2) The item relating to section 144 in the table 

25 of sections for subpart A of part IV of subchapter 


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1 B of chapter 1 of such Code is amended to read as 

2 follows: 

‘‘Sec. 144. Qualified small issuer bond; qualified student loan bond; qualified 

development bond; property assessed clean energy bond.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to bonds issued after the date of 

5 the enactment of this Act. 

Æ 


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