I 

114TH CONGRESS 

2D SESSION H. R. 5802 

To amend title 31, United States Code, to provide for the issuance of 

Green Bonds and to establish the United States Green Bank, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2016 

Mr. VAN HOLLEN (for himself, Mr. BLUMENAUER, Mr. HIMES, Mr. CONNOLLY, Ms. NORTON, Mr. CARTWRIGHT, Mr. TONKO, and Ms. ESTY) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on Energy and Commerce, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To amend title 31, United States Code, to provide for the 

issuance of Green Bonds and to establish the United 

States Green Bank, and for other purposes. 

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

3 SECTION 1. CAPITALIZATION, METHOD OF CAPITAL STOCK 

4 PAYMENTS, ISSUANCE OF GREEN BONDS. 

5 Chapter 31 of title 31, United States Code, is amend6 ed by adding after section 3102 the following new section: 


sradovich on DSK3GMQ082PROD with BILLS
2 

•HR 5802 IH

1 ‘‘§ 3102A. Green Bonds 

2 ‘‘(a) INITIAL CAPITALIZATION.—The Secretary of the 

3 Treasury shall issue bonds (in this section referred to as 

4 ‘Green Bonds’) in the amount of $10,000,000,000 on the 

5 credit of the United States to acquire capital stock of the 

6 United States Green Bank (established under section 

7 9801 of this title). Stock certificates evidencing ownership 

8 in the United States Green Bank shall be issued by the 

9 Green Bank to the Secretary of the Treasury, to the ex10 tent of payments made for the capital stock of the Green 

11 Bank. 

12 ‘‘(b) FUTURE CAPITALIZATION.—Upon the request 

13 of the United States Green Bank, the Secretary of the 

14 Treasury shall issue additional Green Bonds on the credit 

15 of the United States to acquire additional capital stock 

16 of the United States Green Bank in an aggregate amount 

17 not to exceed $50,000,000,000 outstanding at any one 

18 time. 

19 ‘‘(c) DENOMINATIONS AND MATURITY.—Green 

20 Bonds shall be in such forms and denominations, and shall 

21 mature within such periods, as determined by the Sec22 retary of the Treasury. 

23 ‘‘(d) INTEREST.—Green Bonds shall bear interest at 

24 a rate not less than the current average yield on out25 standing market obligations of the United States of com26 parable maturity during the month preceding the issuance 


sradovich on DSK3GMQ082PROD with BILLS
3 

•HR 5802 IH

1 of the obligation as determined by the Secretary of the 

2 Treasury. 

3 ‘‘(e) GUARANTEED.—Green Bonds shall be fully and 

4 unconditionally guaranteed both as to interest and prin5 cipal by the United States, and such guaranty shall be 

6 expressed on the face of each bond. 

7 ‘‘(f) LAWFUL INVESTMENTS.—Green Bonds shall be 

8 lawful investments, and may be accepted as security for 

9 all fiduciary, trust, and public funds, the investment or 

10 deposit of which shall be under the authority or control 

11 of the United States or any officer or officers thereof.’’. 

12 SEC. 2. GREEN BANK. 

13 Title 31, United States Code, is amended by adding 

14 the following new chapter at the end thereof: 

15 ‘‘CHAPTER 98—GREEN BANK 

16 ‘‘§ 9801. United States Green Bank 

17 ‘‘(a) SHORT TITLE.—This section may be cited as the 

18 ‘United States Green Bank Act of 2016’. 

19 ‘‘(b) PURPOSES.—The purposes of this section are as 

20 follows: 

21 ‘‘(1) To significantly increase the pace and 

22 amount of investment in clean energy and energy ef23 ficiency projects at the State and local level. 

24 ‘‘(2) To improve the standard of living for 

25 Americans by delivering clean electricity more effiVerDate Sep 11 2014 18:15 Jul 28, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
4 

•HR 5802 IH

1 ciently and at lower cost and by funding projects 

2 that will create high-paying, long-term jobs. 

3 ‘‘(3) To address the main impediment to invest4 ment at the State and local level—limited capital 

5 and tight balance sheets—by establishing a national 

6 Green Bank to capitalize legitimate Regional, State, 

7 and Municipal Green Banks. 

8 ‘‘(4) To facilitate— 

9 ‘‘(A) efficient tax equity markets for quali10 fied clean energy projects; and 

11 ‘‘(B) the financing of long-term clean en12 ergy purchasing by governmental and non13 governmental not-for-profit entities. 

14 ‘‘(5) To foster— 

15 ‘‘(A) the development and consistent appli16 cation of transparent underwriting standards, 

17 standard contractual terms, and measurement 

18 and verification protocols for qualified clean en19 ergy projects and qualified energy efficiency 

20 projects; 

21 ‘‘(B) the creation of performance data that 

22 enables effective underwriting, risk manage23 ment, and pro forma modeling of financial per24 formance of qualified clean energy projects and 

25 qualified energy efficiency projects to support 


sradovich on DSK3GMQ082PROD with BILLS
5 

•HR 5802 IH

1 primary financing markets and stimulate devel2 opment of secondary investment markets for 

3 clean energy projects and energy efficiency 

4 projects; and 

5 ‘‘(C) the level of financing support for 

6 qualified clean energy projects and qualified en7 ergy efficiency projects necessary to advance 

8 vital national objectives, including— 

9 ‘‘(i) achieving energy independence 

10 from foreign energy sources; 

11 ‘‘(ii) abating climate change by in12 creasing zero or low carbon electricity gen13 eration and transportation capabilities; 

14 ‘‘(iii) realizing energy efficiency poten15 tial in existing infrastructure; 

16 ‘‘(iv) easing the economic effects of 

17 transitioning from a carbon-based economy 

18 to a clean energy economy; 

19 ‘‘(v) achieving job creation through 

20 the construction and operation of qualified 

21 clean energy projects and qualified energy 

22 efficiency projects; 

23 ‘‘(vi) fostering long-term domestic 

24 manufacturing capacity in the clean energy 

25 and energy efficiency industries; and 


sradovich on DSK3GMQ082PROD with BILLS
6 

•HR 5802 IH

1 ‘‘(vii) complementing and 

2 supplementing other clean energy and en3 ergy efficiency legislation at the regional, 

4 State, municipal, and county level. 

5 ‘‘(c) DEFINITIONS.—In this section: 

6 ‘‘(1) BANK.—The term ‘Bank’ means the 

7 United States Green Bank established under sub8 section (d). 

9 ‘‘(2) BOARD.—The term ‘Board’ means the 

10 Board of Directors of the Bank. 

11 ‘‘(3) CLEAN ENERGY PROJECT.—The term 

12 ‘clean energy project’ means any electricity genera13 tion, transmission, storage, heating, cooling, trans14 portation, distribution, industrial process, or manu15 facturing project whose primary purpose is the de16 ployment, development, or production of an energy 

17 system or technology that avoids, reduces, or seques18 ters air pollutants or anthropogenic greenhouse 

19 gases, including the following: 

20 ‘‘(A) Solar. 

21 ‘‘(B) Wind. 

22 ‘‘(C) Geothermal. 

23 ‘‘(D) Biomass. 

24 ‘‘(E) Hydropower. 

25 ‘‘(F) Ocean and hydrokinetic. 


sradovich on DSK3GMQ082PROD with BILLS
7 

•HR 5802 IH

1 ‘‘(G) Fuel cell. 

2 ‘‘(H) Advanced battery. 

3 ‘‘(I) Carbon capture and sequestration. 

4 ‘‘(J) Next generation biofuels from 

5 nonfood feedstocks. 

6 ‘‘(K) Alternative vehicle fuel infrastruc7 ture. 

8 ‘‘(L) Alternative fuel vehicles. 

9 ‘‘(4) ELIGIBLE CLEAN ENERGY FINANCING IN10 STITUTION.—The term ‘Eligible Clean Energy Fi11 nancing Institution’ means a not-for-profit, inde12 pendent entity, quasi-independent entity, or a gov13 ernmental entity within an agency or financing au14 thority, established or designated by a State, group 

15 of States, the District of Columbia, or an Eligible 

16 State Political Subdivision to— 

17 ‘‘(A) provide low-cost or long-term financ18 ing support or credit enhancements, including 

19 loan guarantees and loan loss reserves, for 

20 Qualified Clean Energy Projects or Qualified 

21 Energy Efficiency Projects; and 

22 ‘‘(B) create liquid markets for these 

23 projects including warehousing and 

24 securitization, or take other steps to reduce fi25 nancial barriers to the deployment of existing 


sradovich on DSK3GMQ082PROD with BILLS
8 

•HR 5802 IH

1 and innovative clean energy and energy effi2 ciency projects. Eligible Clean Energy Financ3 ing Institutions may enter into partnerships 

4 with private entities. 

5 ‘‘(5) ELIGIBLE STATE POLITICAL SUBDIVI6 SION.—The term ‘Eligible State Political Subdivi7 sion’ shall mean any municipality, county or other 

8 political subdivision within a State that, based on 

9 the population data from the most recent U.S. Cen10 sus Bureau, meets one of the following criteria: 

11 ‘‘(A) A municipality with a population of 

12 no less than 200,000 people. 

13 ‘‘(B) A county, parish or borough with a 

14 population of no less than 800,000 people. 

15 ‘‘(C) A municipality, county, parish, or 

16 borough with a population— 

17 ‘‘(i) of no less than 84,000 people; 

18 and 

19 ‘‘(ii) that constitutes no less than 5 

20 percent of that State’s total population. 

21 ‘‘(6) ENERGY EFFICIENCY PROJECT.—The term 

22 ‘energy efficiency project’ means any project, tech23 nology, function, or measure that results in the re24 duction of energy use required to achieve the same 

25 level of service or output prior to the application of 


sradovich on DSK3GMQ082PROD with BILLS
9 

•HR 5802 IH

1 such project, technology, function, or measure, or 

2 substantially reduces greenhouse gas emissions rel3 ative to emissions that would have occurred prior to 

4 the application of such project, technology, function, 

5 or measure. 

6 ‘‘(7) GREEN BOND.—The term ‘Green Bond’ 

7 means a bond issued pursuant to section 3102A of 

8 this title. 

9 ‘‘(8) QUALIFIED CLEAN ENERGY PROJECT.— 

10 The term ‘qualified clean energy project’ means a 

11 clean energy project that— 

12 ‘‘(A) is a Clean Energy Project carried out 

13 domestically within the territorial borders of the 

14 United States; 

15 ‘‘(B) stays current on interest and debt 

16 payment obligations; 

17 ‘‘(C) to the extent otherwise required by 

18 law, pays wages in accordance with subchapter 

19 IV of chapter 31 of title 40, United States Code 

20 (commonly referred to as the Davis-Bacon Act); 

21 ‘‘(D) if for nuclear power, is funded by the 

22 Bank only after all other existing Federal fi23 nancial support has been expended; 


sradovich on DSK3GMQ082PROD with BILLS
10 

•HR 5802 IH

1 ‘‘(E) if for Alternative fuel vehicles, is for 

2 the purchase or lease of eligible vehicles and not 

3 the design or manufacture thereof; and 

4 ‘‘(F) satisfies any other conditions estab5 lished by the Bank and published in the Fed6 eral Register. 

7 ‘‘(9) QUALIFIED ENERGY EFFICIENCY

8 PROJECT.—The term ‘qualified energy efficiency 

9 project’ means an energy efficiency project, includ10 ing smart grid technologies and functions character11 ized in section 1301 of the Energy Independence 

12 and Security Act of 2007 and end-use technologies 

13 for efficiency gains in new construction and across 

14 existing infrastructure that— 

15 ‘‘(A) is an Energy Efficiency Project car16 ried out domestically within the territorial bor17 ders of the United States; 

18 ‘‘(B) stays current on interest and debt 

19 payment obligations; 

20 ‘‘(C) to the extent otherwise required by 

21 law, pays wages in accordance with subchapter 

22 IV of chapter 31 of title 40, United States Code 

23 (commonly referred to as the Davis-Bacon Act); 

24 and 


sradovich on DSK3GMQ082PROD with BILLS
11 

•HR 5802 IH

1 ‘‘(D) satisfies any other conditions estab2 lished by the Bank and published in the Fed3 eral Register. 

4 ‘‘(d) GREEN BANK.— 

5 ‘‘(1) ESTABLISHMENT OF CORPORATION.— 

6 There is established a corporation to be known as 

7 the United States Green Bank that shall be wholly 

8 owned by the United States. 

9 ‘‘(2) OVERSIGHT.—The Bank shall be subject 

10 to the general supervision and direction of the Sec11 retary of the Treasury. The Bank shall be an instru12 mentality of the United States Government and shall 

13 maintain such offices as may be necessary or appro14 priate in the conduct of its business. 

15 ‘‘(3) CHARTER.—The Bank shall be chartered 

16 for 20 years from the date of enactment of this sec17 tion. 

18 ‘‘(4) GOVERNANCE.— 

19 ‘‘(A) BOARD OF DIRECTORS OF THE

20 BANK.— 

21 ‘‘(i) IN GENERAL.—The Bank shall be 

22 under the direction of a Board of Directors 

23 consisting of seven members and be subject 

24 to the general supervision and direction of 


sradovich on DSK3GMQ082PROD with BILLS
12 

•HR 5802 IH

1 the Secretary of the Treasury as Chairman 

2 of the Board. 

3 ‘‘(ii) MEMBERSHIP.—The Board shall 

4 consist of seven members, as follows: 

5 ‘‘(I) The Secretary of the Treas6 ury or the Secretary’s designee as 

7 Chairman of the Board. 

8 ‘‘(II) The Secretary of Energy or 

9 the Secretary’s designee. 

10 ‘‘(III) The Secretary of Trans11 portation or the Secretary’s designee. 

12 ‘‘(IV) Four members appointed 

13 by the President of the United States 

14 including a Chief Executive Officer, 

15 one member with expertise regarding 

16 renewable energy and/or energy effi17 ciency, one member with expertise re18 garding finance, one member with ex19 pertise regarding electric utilities, and 

20 one member with expertise regarding 

21 sustainable transportation. 

22 ‘‘(iii) QUORUM.—Four members of 

23 the Board shall constitute a quorum. 

24 ‘‘(iv) BYLAWS.—The Board shall 

25 adopt, and may amend, such bylaws as are 


sradovich on DSK3GMQ082PROD with BILLS
13 

•HR 5802 IH

1 necessary for the proper management and 

2 functioning of the Bank, and shall, in such 

3 bylaws, designate the vice presidents and 

4 other officers of the Bank and prescribe 

5 their duties. 

6 ‘‘(v) TERMS.—The initial terms of the 

7 members of the Board shall be 4 years. 

8 For terms beginning after the first 4 years 

9 following the date of the enactment of this 

10 section, the Board shall create staggered 

11 terms of 2, 3, and 4 years for members of 

12 the Board. 

13 ‘‘(vi) VACANCIES.—Any vacancy on 

14 the Board shall be filled in the same man15 ner in which the original appointment was 

16 made. 

17 ‘‘(vii) INTERIM APPOINTMENTS.—Any 

18 member appointed to fill a vacancy occur19 ring before the expiration of the term for 

20 which such member’s predecessor was ap21 pointed shall be appointed only for the re22 mainder of such term. 

23 ‘‘(viii) REAPPOINTMENT.—Members 

24 of the Board may be reappointed for addiVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
14 

•HR 5802 IH

1 tional terms of service as members of the 

2 Board. 

3 ‘‘(ix) CONTINUATION OF SERVICE.— 

4 Any member of the Board whose term has 

5 expired may continue to serve on the 

6 Board until the earlier of— 

7 ‘‘(I) the date on which such 

8 member’s successor is appointed; or 

9 ‘‘(II) the end of the 6-month pe10 riod beginning on the date such mem11 ber’s term expires. 

12 ‘‘(x) CHAIRMAN.—The Board shall se13 lect a Chairman from among its members. 

14 ‘‘(B) EXECUTIVE VICE PRESIDENT.—The 

15 Chief Executive Officer shall appoint an Execu16 tive Vice President who— 

17 ‘‘(i) shall serve as Chief Executive Of18 ficer of the Bank during the absence or 

19 disability of, or in the event of a vacancy 

20 in the office, of Chief Executive Officer; 

21 and 

22 ‘‘(ii) shall at other times perform such 

23 functions as the Chief Executive Officer 

24 may prescribe. 


sradovich on DSK3GMQ082PROD with BILLS
15 

•HR 5802 IH

1 ‘‘(C) POLICIES AND PROCEDURES.—At the 

2 request of any two members of the Board, the 

3 Chairman shall place an item pertaining to the 

4 policies or procedures of the Bank on the agen5 da for discussion by the Board. Not later than 

6 30 days after the date such a request is made, 

7 the Chairman shall hold a meeting of the Board 

8 at which such item shall be discussed. 

9 ‘‘(D) CONFLICTS OF INTEREST.—No direc10 tor, officer, attorney, agent, or employee of the 

11 Bank shall in any manner, directly or indi12 rectly, participate in the deliberation upon, or 

13 the determination of, any question affecting 

14 such individual’s personal interests, or the in15 terests of any corporation, partnership, or asso16 ciation in which such individual is directly or 

17 indirectly personally interested. 

18 ‘‘(5) HIRING AND CONTRACTING AUTHORITY.— 

19 ‘‘(A) CONTRACTING.—The Bank may em20 ploy or otherwise contract with banks, credit 

21 agencies, attorneys, and other third parties at 

22 customary commercial rates. 

23 ‘‘(B) HIRING.—Notwithstanding any oth24 erwise applicable Federal rules and regulations, 

25 the Bank may employ and otherwise contract 


sradovich on DSK3GMQ082PROD with BILLS
16 

•HR 5802 IH

1 with employees and provide compensation to 

2 such employees at prevailing rates for com3 pensation for similar positions in private indus4 try. 

5 ‘‘(6) SUNSET.— 

6 ‘‘(A) EXPIRATION OF CHARTER.—The 

7 Bank shall continue to exercise its functions 

8 until all obligations and commitments of the 

9 Bank are discharged, even after its charter has 

10 expired. 

11 ‘‘(B) PRIOR OBLIGATIONS.—No provisions 

12 of this subsection shall be construed as pre13 venting the Bank from— 

14 ‘‘(i) acquiring obligations prior to the 

15 date of the expiration of its charter which 

16 mature subsequent to such date; 

17 ‘‘(ii) assuming, prior to the date of 

18 the expiration of its charter, liability as 

19 guarantor, endorser, or acceptor of obliga20 tions which mature subsequent to such 

21 date; 

22 ‘‘(iii) issuing, prior or subsequent to 

23 the date of the expiration of its charter, 

24 for purchase by the Secretary of the Treas25 ury or any other purchasers, its notes, deVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
17 

•HR 5802 IH

1 bentures, bonds, or other obligations which 

2 mature subsequent to such date; or 

3 ‘‘(iv) continuing as a corporation and 

4 exercising any of its functions subsequent 

5 to the date of the expiration of its charter 

6 for purposes of orderly liquidation, includ7 ing the administration of its assets and the 

8 collection of any obligations held by the 

9 Bank. 

10 ‘‘(e) GREEN BANK ESTABLISHMENT FUND.— 

11 ‘‘(1) ESTABLISHMENT.—There is established in 

12 the Treasury of the United States a revolving fund, 

13 to be known as the ‘Green Bank Establishment 

14 Fund’ (hereinafter referred to as the ‘Fund’), con15 sisting of— 

16 ‘‘(A) such amounts as are deposited in the 

17 Fund under this subtitle, including but not lim18 ited to proceeds from the Green Bonds issued 

19 under section 3102A; and 

20 ‘‘(B) such sums as may be appropriated to 

21 supplement the Fund. 

22 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

23 There are authorized to be appropriated to the Fund 

24 such sums as are necessary to carry out this sub25 title. 


sradovich on DSK3GMQ082PROD with BILLS
18 

•HR 5802 IH

1 ‘‘(3) EXPENDITURES FROM THE FUND.— 

2 Amounts in the Fund shall be available to the Chief 

3 Executive for obligation without fiscal year limita4 tion, to remain available until expended. 

5 ‘‘(f) LENDING, FINANCING, EXPENDITURES.— 

6 ‘‘(1) IN GENERAL.—The Bank shall establish a 

7 program to provide, on a competitive basis loans, 

8 loan guarantees or credit buy downs from the Fund, 

9 as the Bank determines appropriate, solely to pro10 vide capitalization to an Eligible Clean Energy Fi11 nancing Institution for the establishment or con12 tinuing operation of that entity. 

13 ‘‘(2) REQUIREMENTS.—The Bank may only 

14 provide loans, loan guarantees or credit buy downs 

15 under paragraph (1) if— 

16 ‘‘(A) APPLICATION.—The applicant sub17 mits an application for loans, loan guarantees 

18 or credit buy downs in accordance with applica19 tion criteria established by the Bank. 

20 ‘‘(B) ELIGIBLE CLEAN ENERGY FINANCING

21 INSTITUTIONS.—An entity is eligible to receive 

22 loans, loan guarantees or credit buy downs 

23 under this section only if it— 

24 ‘‘(i) meets the definition of Eligible 

25 Clean Energy Financing Institution; 


sradovich on DSK3GMQ082PROD with BILLS
19 

•HR 5802 IH

1 ‘‘(ii) uses the funding from the Bank 

2 solely for the purposes described in this 

3 section; and 

4 ‘‘(iii) satisfies the capitalization and 

5 funding requirements as described in this 

6 section. 

7 ‘‘(C) PROJECT FINANCE.—The Bank shall 

8 not directly lend or otherwise provide financial 

9 products to any individual projects, nor shall it 

10 be required to examine individual projects for 

11 the purposes of lending under paragraph (1) 

12 other than as necessary to determine whether 

13 an applicant meets the criteria for Eligible 

14 Clean Energy Financing Institutions. 

15 ‘‘(D) CAPITALIZATION AND CO-FUND16 ING.—The Eligible Clean Energy Financing In17 stitution— 

18 ‘‘(i) must provide, at the time of re19 ceipt of any initial funding for capitaliza20 tion by the Bank, an amount from funding 

21 sources other than the Bank equivalent to 

22 no less than $1,000,000 and no less than 

23 20 percent of the total initial funding pro24 vided by the Bank; and 


sradovich on DSK3GMQ082PROD with BILLS
20 

•HR 5802 IH

1 ‘‘(ii) may not receive any subsequent 

2 funding for capitalization by the Bank, in 

3 addition to any initial funding for capital4 ization provided by the Bank in accordance 

5 with clause (i) above, of amounts greater 

6 than two times the amount of capital com7 mitted for use by the Eligible Clean En8 ergy Financing Institution for Qualified 

9 Clean Energy Projects and Qualified En10 ergy Efficiency Projects at the time of ap11 plication. 

12 ‘‘(3) REGULATIONS.—The Bank shall establish 

13 regulations to carry out the activities and operations 

14 set out in this chapter. 

15 ‘‘(g) LENDING ACTIVITIES.— 

16 ‘‘(1) FEES.—The Bank shall assess reasonable 

17 fees on its activities so as to cover its reasonable 

18 costs and expenses, consistent with the Federal 

19 Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), 

20 provided the Bank operates as a not-for-profit enti21 ty. 

22 ‘‘(2) APPROPRIATIONS AND RETENTION OF RE23 CEIPTS.—For purposes of the Federal Credit Re24 form Act, funds made available to the Green Bank 

25 pursuant to section 3102A for carrying out this secVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
21 

•HR 5802 IH

1 tion are appropriated to the Green Bank for the 

2 purposes described in the section. Receipts collected 

3 by the Green Bank, consistent with the Federal 

4 Credit Reform Act, shall be considered to have been 

5 provided in advance in an appropriations Act, and 

6 shall remain available to the Green Bank until ex7 pended. 

8 ‘‘(3) IMMUNITY FROM IMPAIRMENT, LIMITA9 TION, OR RESTRICTION.— 

10 ‘‘(A) IN GENERAL.—All rights and rem11 edies of the Bank shall be immune from impair12 ment, limitation, or restrictions by or under— 

13 ‘‘(i) any law (other than a law enacted 

14 by Congress expressly in limitation of this 

15 paragraph) that becomes effective after the 

16 acquisition by the Bank of the subject or 

17 property on, under, or with respect to 

18 which the right or remedy arises or exists 

19 or would so arise or exist in the absence of 

20 the law; or 

21 ‘‘(ii) any administrative or other ac22 tion that becomes effective after the acqui23 sition. 

24 ‘‘(B) STATE LAW.—The Bank may con25 duct its business without regard to any qualiVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
22 

•HR 5802 IH

1 fication or law of any State relating to incorpo2 ration. 

3 ‘‘(4) TAXATION.— 

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graph (B), the Bank (including its activities, 

6 capital, reserves, surplus and income) shall be 

7 exempt from all taxation imposed by any State 

8 or local political subdivision of a State. 

9 ‘‘(B) REAL PROPERTY.—Any real property 

10 of the Bank shall be subject to taxation by a 

11 State or political subdivision of a State to the 

12 same extent according to the value of the real 

13 property as other real property is taxed. 

14 ‘‘(5) POWER TO REMOVE; JURISDICTION.—Not15 withstanding any other provision of law, any civil ac16 tion, suit, or proceeding to which the Bank is a 

17 party shall be deemed to arise under the laws of the 

18 United States, and the United States district courts 

19 shall have original jurisdiction. The Bank may, with20 out bond or security, remove any such action, suit, 

21 or proceeding from a State court to a United States 

22 district court or to the United States District Court 

23 for the District of Columbia. 

24 ‘‘(6) SPENDING SAFEGUARDS.— 


sradovich on DSK3GMQ082PROD with BILLS
23 

•HR 5802 IH

1 ‘‘(A) IN GENERAL.—The Chief Executive 

2 Officer of the Bank— 

3 ‘‘(i) shall require any Eligible Clean 

4 Energy Financing Institution receiving fi5 nancial support pursuant to this section to 

6 report quarterly, in a format specified by 

7 the Chief Executive Officer, on such enti8 ty’s use of such support and its progress 

9 fulfilling the objectives for which such sup10 port was granted, and the Chief Executive 

11 Officer shall make these reports available 

12 to the public; 

13 ‘‘(ii) may establish additional report14 ing and information requirements for any 

15 recipient of financing support made avail16 able pursuant to this section; 

17 ‘‘(iii) shall establish appropriate mech18 anisms to ensure appropriate use and com19 pliance with all terms of any financing 

20 support made available pursuant to this 

21 section; 

22 ‘‘(iv) may, in addition to and con23 sistent with any other authority under ap24 plicable law, deobligate financing support 

25 made available pursuant to this section to 


sradovich on DSK3GMQ082PROD with BILLS
24 

•HR 5802 IH

1 entities that demonstrate an insufficient 

2 level of performance, or wasteful or fraud3 ulent spending, as defined in advance by 

4 the Chief Executive Officer, and award 

5 these funds competitively to new or exist6 ing applicants consistent with this section; 

7 ‘‘(v) shall create and maintain a fully 

8 searchable database, accessible on the 

9 Internet (or successor protocol) at no cost 

10 to the public, that contains at least— 

11 ‘‘(I) a list of each entity that has 

12 applied for loans, loan guarantees or 

13 credit buy downs under this section; 

14 ‘‘(II) a description of each appli15 cation; 

16 ‘‘(III) the status of each such ap17 plication; 

18 ‘‘(IV) the name of each entity re19 ceiving funds made available pursuant 

20 to this section; 

21 ‘‘(V) the purpose for which such 

22 entity is receiving such funds; 

23 ‘‘(VI) each quarterly report sub24 mitted by the entity pursuant to this 

25 section; and 


sradovich on DSK3GMQ082PROD with BILLS
25 

•HR 5802 IH

1 ‘‘(VII) information related to 

2 Qualifying Clean Energy Projects and 

3 Qualifying Energy Efficiency Projects 

4 funded by Eligible Clean Energy Fi5 nancing Institutions using funding re6 ceived from the Bank; 

7 ‘‘(vi) to the extent practicable, data 

8 maintained under clause (v) shall be used 

9 to inform private capital markets, includ10 ing the development of underwriting stand11 ards for the financing of clean energy 

12 projects and energy efficiency projects; 

13 ‘‘(vii) shall make all financing trans14 actions available for public inspection, in15 cluding formal annual reviews by both a 

16 private auditor and the Comptroller Gen17 eral; and 

18 ‘‘(viii) shall at all times be available to 

19 receive public comment in writing on the 

20 activities of the Bank. 

21 ‘‘(B) PROTECTION OF CONFIDENTIAL

22 BUSINESS INFORMATION.—To the extent nec23 essary and appropriate, the Chief Executive Of24 ficer may redact any information regarding apVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
26 

•HR 5802 IH

1 plicants and borrowers to protect confidential 

2 business information. 

3 ‘‘(7) GUARANTEE.—Except as provided in sec4 tion 3102A(e) with respect to Green Bonds, finan5 cial support provided by the Bank shall not be fully 

6 and unconditionally guaranteed by the United 

7 States.’’. 

8 SEC. 3. CONFORMING AMENDMENTS. 

9 (a) TAX EXEMPT STATUS.—Section 501(l) of the In10 ternal Revenue Code of 1986 is amended by adding at the 

11 end the following: 

12 ‘‘(4) The Green Bank established under section 

13 9801 of title 31, United States Code.’’. 

14 (b) WHOLLY OWNED GOVERNMENT CORPORA15 TION.—Section 9101(3) of title 31, United States Code, 

16 is amended by adding at the end the following: 

17 ‘‘(S) the Green Bank.’’. 

18 (c) CLERICAL AMENDMENTS.— 

19 (1) The table of sections for chapter 31 of title 

20 31, United States Code, is amended by inserting 

21 after the item relating to section 3102 the following 

22 new item: 

‘‘3102A. Green Bonds.’’. 


sradovich on DSK3GMQ082PROD with BILLS
27 

•HR 5802 IH

1 (2) The table of chapters for subtitle VI of title 

2 31, United States Code, is amended by adding at 

3 the end the following new item: 

‘‘98. Green Bank ................................................................................ 9801’’. 

4 SEC. 4. DEFER DEDUCTION OF INTEREST EXPENSE RE5 LATED TO DEFERRED INCOME. 

6 (a) IN GENERAL.—Section 163 of the Internal Rev7 enue Code of 1986 is amended by redesignating subsection 

8 (n) as subsection (o) and by inserting after subsection (m) 

9 the following new subsection: 

10 ‘‘(n) DEFERRAL OF DEDUCTION FOR INTEREST EX11 PENSE RELATED TO DEFERRED INCOME.— 

12 ‘‘(1) GENERAL RULE.—In the case of any tax13 payer, the amount of foreign-related interest expense 

14 allowed as a deduction under this chapter for any 

15 taxable year shall not exceed an amount that bears 

16 the same ratio to the sum of the foreign-related in17 terest expense for such year and the deferred for18 eign-related interest expense as the current inclusion 

19 ratio. 

20 ‘‘(2) TREATMENT OF DEFERRED DEDUC21 TIONS.—If, for any taxable year— 

22 ‘‘(A) the amount that bears the same ratio 

23 to the sum of the foreign-related interest ex24 pense for such year and the deferred foreign-reVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
28 

•HR 5802 IH

1 lated interest expense as the current inclusion 

2 ratio, exceeds 

3 ‘‘(B) the foreign-related interest expense 

4 for such year, there shall be allowed as a deduc5 tion for such year an amount equal to the lesser 

6 of such excess and the deferred foreign-related 

7 interest expense. 

8 ‘‘(3) DEFINITIONS AND SPECIAL RULE.—For 

9 purposes of this subsection— 

10 ‘‘(A) FOREIGN-RELATED INTEREST EX11 PENSE.—The term ‘foreign-related interest ex12 pense’ means, for any taxable year, an amount 

13 of interest expense for such taxable year allo14 cated and apportioned under sections 861 and 

15 864(e) to income from sources outside the 

16 United States which bears the same proportion 

17 to such interest expense as the value of all 

18 stock held by the taxpayer in all section 902 

19 corporations (as defined in section 909(d)(5)) 

20 with respect to which the taxpayer meets the 

21 ownership requirements of subsection (a) or (b) 

22 of section 902 bears to the value of all assets 

23 of the taxpayer which generate gross income 

24 from sources outside the United States. 


sradovich on DSK3GMQ082PROD with BILLS
29 

•HR 5802 IH

1 ‘‘(B) DEFERRED FOREIGN-RELATED IN2 TEREST EXPENSE.—The term ‘deferred foreign3 related interest expense’ means the excess, if 

4 any, of the aggregate foreign-related interest 

5 expense for all prior taxable years, over the ag6 gregate amount allowed as a deduction under 

7 paragraphs (1) and (2) for all prior taxable 

8 years. 

9 ‘‘(C) VALUE OF ASSETS.—Except as other10 wise provided by the Secretary, for purposes of 

11 paragraph (3)(A)(i), the value of any asset shall 

12 be the amount with respect to such asset used 

13 as determined for purposes of allocating and 

14 apportioning interest expense under sections 

15 861 and 864(e). 

16 ‘‘(D) CURRENT INCLUSION RATIO.—The 

17 term ‘current inclusion ratio’ means, with re18 spect to any domestic corporation which meets 

19 the ownership requirements of subsection (a) or 

20 (b) of section 902 with respect to one or more 

21 section 902 corporations for any taxable year, 

22 the ratio (expressed as a percentage) of— 

23 ‘‘(i) the sum of all dividends received 

24 by the domestic corporation from a section 

25 902 corporation during the taxable year 


sradovich on DSK3GMQ082PROD with BILLS
30 

•HR 5802 IH

1 plus amounts includible in gross income 

2 under section 951(a) from such section 

3 902 corporation, in each case computed 

4 without regard to section 78, divided by 

5 ‘‘(ii) the aggregate amount of post6 1986 undistributed earnings for the tax7 able year. 

8 ‘‘(E) AGGREGATE AMOUNT OF POST-1986

9 UNDISTRIBUTED EARNINGS.—The term ‘aggre10 gate amount of post-1986 undistributed earn11 ings’ means, with respect to any domestic cor12 poration which meets the ownership require13 ments of subsection (a) or (b) of section 902 

14 with respect to one or more section 902 cor15 porations, the domestic corporation’s pro rata 

16 share of the post-1986 undistributed earnings 

17 (as defined in section 902(c)(1)) of all such sec18 tion 902 corporations. 

19 ‘‘(F) FOREIGN CURRENCY CONVERSION.— 

20 For purposes of determining the current inclu21 sion ratio, and except as otherwise provided by 

22 the Secretary, the aggregate amount of post23 1986 undistributed earnings for the taxable 

24 year shall be determined by translating each 

25 section 902 corporation’s post-1986 undistribVerDate Sep 11 2014 22:01 Aug 04, 2016 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H5802.IH H5802

sradovich on DSK3GMQ082PROD with BILLS
31 

•HR 5802 IH

1 uted earnings into dollars using the average ex2 change rate for such year. 

3 ‘‘(4) TREATMENT OF AFFILIATED GROUPS.— 

4 The current inclusion ratio of each member of an af5 filiated group (as defined in section 864(e)(5)(A)) 

6 shall be determined as if all members of such group 

7 were a single corporation. 

8 ‘‘(5) APPLICATION TO SEPARATE CATEGORIES

9 OF INCOME.—This subsection shall be applied sepa10 rately with respect to the categories of income speci11 fied in section 904(d)(1). 

12 ‘‘(6) REGULATIONS.—The Secretary may pre13 scribe such regulations or other guidance as is nec14 essary or appropriate to carry out the purposes of 

15 this subsection, including regulations or other guid16 ance providing— 

17 ‘‘(A) for the proper application of this sub18 section with respect to changes in ownership of 

19 a section 902 corporation, 

20 ‘‘(B) that certain corporations that other21 wise would not be members of the affiliated 

22 group will be treated as members of the affili23 ated group for purposes of this subsection, 

24 ‘‘(C) for the proper application of this sub25 section with respect to the taxpayer’s share of 


sradovich on DSK3GMQ082PROD with BILLS
32 

•HR 5802 IH

1 a deficit in earnings and profits of a section 

2 902 corporation, 

3 ‘‘(D) for appropriate adjustments to the 

4 determination of the value of stock in any sec5 tion 902 corporation for purposes of this sub6 section or to the foreign-related interest expense 

7 to account for income that is subject to tax 

8 under section 882(a)(1), and 

9 ‘‘(E) for the proper application of this sub10 section with respect to interest expense that is 

11 directly allocable to income with respect to cer12 tain assets.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning on or 

15 after January 1, 2017. 

Æ 


sradovich on DSK3GMQ082PROD with BILLS