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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5989 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5989

  To amend the Elementary and Secondary Education Act to enhance the 
 credit program for charter schools through green initiatives, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2010

Mr. Polis of Colorado introduced the following bill; which was referred 
                to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL

 
  To amend the Elementary and Secondary Education Act to enhance the 
 credit program for charter schools through green initiatives, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Green Credit Enhancement Program Act 
of 2010''.

SEC. 2. GREEN CREDIT ENHANCEMENT PROGRAM.

    (a) Section 5205 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7221 et seq.) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(d) Green Credit Enhancement Initiatives To Assist Charter School 
Facility Acquisition, Construction, and Renovation.--
            ``(1) Purpose.--The purpose of this subsection is to 
        provide grants to eligible entities to permit such entities to 
        demonstrate innovative credit enhancement initiatives of 
        assisting charter schools for addressing the costs of 
        acquiring, constructing, and renovating facilities.
            ``(2) Grants to eligible entities.--
                    ``(A) Grants.--Subject only to subparagraph (E), 
                the Secretary shall award not less than three grants to 
                eligible entities that have submitted applications that 
                have been approved under this subsection for use to 
                demonstrate innovative methods of assisting charter 
                schools in addressing the cost of acquiring, 
                constructing, and renovating facilities by enhancing 
                the availability of loans or bond financing.
                    ``(B) Eligibility.--For purposes of this 
                subsection, an eligble entity is--
                            ``(i) a public entity, such as a State or 
                        local governmental entity;
                            ``(ii) a private nonprofit entity; or
                            ``(iii) a consortium of entities described 
                        in clauses (i) or (ii).
                    ``(C) Grantee selection.--
                            ``(i) Evaluation of application.--The 
                        Secretary shall evaluate each application 
                        submitted under paragraph (3), and may approve 
                        only applications that the Secretary determines 
                        are sufficient to merit approval.
                            ``(ii) Priority.--In evaluating each 
                        application, the Secretary shall give priority 
                        to the applications of eligible entities that 
                        propose to use at least 65 percent of the 
                        amounts received from a grant under this 
                        subsection to fund modernization, renovation, 
                        repair, or construction projects consistent 
                        with the applicable provisions of any one of 
                        the green building certification programs 
                        specified in paragraph (4)(B)(i).
                            ``(iii) Distribution of grants.--If a 
                        sufficient number of applications are submitted 
                        that the Secretary determines are of sufficient 
                        quality to merit approval, the Secretary shall 
                        award at least one grant to an eligible entity 
                        described in subparagraph (A)(i), at least one 
                        grant to an eligible entity described in 
                        paragraph (A)(ii), and at least one grant to an 
                        eligible entity described in paragraph 
                        (A)(iii).
                    ``(D) Grant characteristics.--Grants under this 
                subsection shall be of a sufficient size, scope, and 
                quality so as to ensure an effective demonstration of 
                an innovative means of enhancing credit for the 
                financing of charter school acquisition, construction, 
                or renovation.
                    ``(E) Special rule.--If the Secretary determines 
                that the funds made available under this subsection are 
                insufficient to permit the Secretary to award three or 
                more grants in accordance with subparagraphs (A), (C), 
                and (D), the requirement to award three grants under 
                subparagraph (A) and the requirements related to the 
                distribution of grants under subparagraph (C)(iii) 
                shall not apply, and the Secretary may determine the 
                appropriate number of grants to be awarded in 
                accordance with subparagraph (D).
            ``(3) Applications.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this subsection, an eligible entity shall 
                submit to the Secretary an application in such form as 
                the Secretary may reasonably require.
                    ``(B) Contents.--An application submitted under 
                subparagraph (A) shall contain--
                            ``(i) a statement identifying the 
                        activities the eligible entity proposes to 
                        undertake with funds received under this 
                        subsection, including the methods such entity 
                        shall use to determine which charter schools 
                        receive assistance, and how much and what types 
                        of assistance charter schools shall receive;
                            ``(ii) a description of the involvement of 
                        charter schools in the development of such 
                        application and the design of the proposed 
                        activities described in such application;
                            ``(iii) a description of the expertise of 
                        the eligible entity in capital market 
                        financing;
                            ``(iv) a description of how the proposed 
                        activities leverage the maximum amount of 
                        private-sector capital relative to the amount 
                        of government funding used and how such 
                        activities otherwise enhance credit available 
                        to charter schools, including how the eligible 
                        entity plans to offer a combination of 
                        financing rates and terms more favorable than 
                        such rates and terms that a charter school 
                        could receive without assistance under this 
                        subsection;
                            ``(v) a description of how the eligible 
                        entity possesses sufficient expertise in 
                        education to evaluate the likelihood of success 
                        of a charter school program for which 
                        facilities financing is sought;
                            ``(vi) in the case of an application 
                        submitted by a State governmental entity, a 
                        description of the actions that the entity has 
                        taken, or intends to take, to ensure that 
                        charter schools within the State receive the 
                        funding the charter schools need to have 
                        adequate facilities; and
                            ``(vii) such other information as the 
                        Secretary may reasonably require.
            ``(4) Charter school objectives.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                eligible entity receiving a grant under this subsection 
                shall use the funds deposited in the reserve account 
                established under paragraph (5)(A) to assist one or 
                more charter schools to access private-sector capital 
                to accomplish one or both of the following objectives:
                            ``(i) The acquisition (by purchase, lease, 
                        donation, or otherwise) of an interest 
                        (including an interest held by a third party 
                        for the benefit of a charter school) in 
                        improved or unimproved real property that is 
                        necessary to commence or continue the operation 
                        of a charter school.
                            ``(ii) The construction of new facilities 
                        (including predevelopment costs), or the 
                        renovation, repair, or alteration of existing 
                        facilities, necessary to commence or continue 
                        the operation of a charter school.
                    ``(B) Condition.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), as a condition of receiving a 
                        grant under this subsection, an eligible entity 
                        shall agree to use not less than 50 percent of 
                        the amounts received from a grant under this 
                        subsection to fund projects consistent with the 
                        applicable provisions of any one of the 
                        following green building certification 
                        programs:
                                    ``(I) The United States Green 
                                Building Council Leadership in Energy 
                                and Environmental Design green building 
                                rating standard referred to as LEED 
                                Green Building Rating System.
                                    ``(II) The Energy Star program of 
                                the United States Department of Energy 
                                and the United States Environmental 
                                Protection Agency.
                                    ``(III) The CHPS green building 
                                rating program developed by the 
                                Collaborative for High Performance 
                                Schools.
                                    ``(IV) The Green Building 
                                Initiative environmental design and 
                                rating system referred to as Green 
                                Globes.
                                    ``(V) Any other program adopted by 
                                a State or entity within a State having 
                                authority over a local educational 
                                agency that provides for green building 
                                certification.
                            ``(ii) Special rule.--The condition under 
                        clause (i) shall not apply if--
                                    ``(I) the Secretary waives such 
                                condition upon application to the 
                                Secretary for such waiver by the 
                                eligible entity; or
                                    ``(II) compliance with such 
                                condition causes the cost of a project 
                                funded under the grant to increase by 
                                more than 10 percent.
            ``(5) Reserve account.--
                    ``(A) Use of funds.--To assist charter schools to 
                accomplish the objectives described in paragraph (4), 
                an eligible entity receiving a grant under this 
                subsection shall, in accordance with State and local 
                law, directly or indirectly, alone or in collaboration 
                with others, deposit the funds received under this 
                subsection (other than funds used for administrative 
                costs in accordance with paragraph (6)) in a reserve 
                account established and maintained by the eligible 
                entity. Amounts deposited in such account shall be used 
                by the eligible entity for the objectives described in 
                paragraph (4) through one or more of the following 
                methods:
                            ``(i) Guaranteeing, insuring, and 
                        reinsuring bonds, notes, evidences of debt, 
                        loans, and interests therein.
                            ``(ii) Guaranteeing and insuring leases of 
                        personal and real property.
                            ``(iii) Facilitating financing by 
                        identifying potential lending sources, 
                        encouraging private lending, and other similar 
                        activities that directly promote lending to, or 
                        for the benefit of, charter schools.
                            ``(iv) Facilitating the issuance of bonds 
                        by charter schools, or by other public entities 
                        for the benefit of charter schools, by 
                        providing technical, administrative, and other 
                        appropriate assistance (including the 
                        recruitment of bond counsel, underwriters, and 
                        potential investors and the consolidation of 
                        multiple charter school projects within a 
                        single bond issue).
                    ``(B) Investment.--Funds received under this 
                subsection and deposited in the reserve account 
                established under subparagraph (A) shall be invested in 
                obligations issued or guaranteed by the United States 
                or a State, or in other similarly low-risk securities.
                    ``(C) Reinvestment of earnings.--Any earnings on 
                funds received under this subsection shall be deposited 
                in the reserve account established under subparagraph 
                (A) and used in accordance with such subparagraph.
            ``(6) Limitation and administrative costs.--An eligible 
        entity may use not more than 2.5 percent of the funds received 
        under this subsection for the administrative costs of carrying 
        out this subsection.
            ``(7) Audits and reports.--
                    ``(A) Financial record maintenance and audit.--The 
                financial records of each eligible entity receiving a 
                grant under this subsection shall be maintained in 
                accordance with generally accepted accounting 
                principles and shall be audited by an independent 
                public accountant.
                    ``(B) Reports.--
                            ``(i) Grantee annual reports.--Each 
                        eligible entity receiving a grant under this 
                        subsection shall annually submit to the 
                        Secretary a report of its operations and 
                        activities under this subsection.
                            ``(ii) Contents.--Each annual report 
                        submitted under clause (i) shall include--
                                    ``(I) a copy of the most recent 
                                financial statements of the eligible 
                                entity, and any accompanying opinion on 
                                such statements, prepared by the 
                                independent public accountant reviewing 
                                the financial records of the eligible 
                                entity;
                                    ``(II) a copy of any report made on 
                                the audit of the financial records of 
                                the eligible entity that was conducted 
                                under subparagraph (A) during the 
                                annual reporting period;
                                    ``(III) an evaluation by the 
                                eligible entity of the effectiveness of 
                                its use of the funds provided under 
                                this subsection in leveraging private 
                                funds;
                                    ``(IV) a listing and description of 
                                the charter schools served by the 
                                eligible entity during the annual 
                                reporting period, including the amount 
                                of funds used by each charter school 
                                and the type of project facilitated by 
                                the funding;
                                    ``(V) a description of the 
                                activities carried out by the eligible 
                                entity to assist charter schools in 
                                meeting the objectives set forth in 
                                paragraph (4); and
                                    ``(VI) a description of the 
                                characteristics of lenders and other 
                                financial institutions participating in 
                                the activities undertaken by the 
                                eligible entity under this subsection 
                                during the reporting period.
                            ``(iii) Secretarial report.--The Secretary 
                        shall review the reports submitted under clause 
                        (i) and shall provide a comprehensive annual 
                        report to the Congress on the activities 
                        conducted under this subsection.
            ``(8) No full faith and credit for grantee obligations.--No 
        financial obligation of an eligible entity entered into 
        pursuant to this subsection (such as an obligation under a 
        guarantee, bond, note, evidence of debt, or loan) shall be an 
        obligation of, or guaranteed in any respect by, the United 
        States. The full faith and credit of the United States is not 
        pledged to the payment of funds which may be required to be 
        paid under any obligation made by an eligible entity pursuant 
        to any provision of this subsection.
            ``(9) Recovery of funds.--
                    ``(A) In general.--The Secretary, in accordance 
                with chapter 37 of title 31, United States Code, shall 
                collect--
                            ``(i) all of the funds in a reserve account 
                        established by an eligible entity under 
                        paragraph (5)(A) if the Secretary determines, 
                        not earlier than 2 years after the date on 
                        which the eligible entity first received funds 
                        under this subsection, that the eligible entity 
                        has failed to make substantial progress in 
                        carrying out the purposes described in such 
                        paragraph; or
                            ``(ii) all or a portion of the funds in a 
                        reserve account established by an eligible 
                        entity under such paragraph if the Secretary 
                        determines that the eligible entity has 
                        permanently ceased to use all or a portion of 
                        the funds in such account to accomplish any 
                        purpose described in such paragraph.
                    ``(B) Limitation.--The Secretary shall not exercise 
                the authority under subparagraph (A) to collect from 
                any eligible entity any funds that are being properly 
                used to achieve one or more of the purposes described 
                in paragraph (5)(A).
                    ``(C) Procedures.--The provisions of sections 451, 
                452, and 458 of the General Education Provisions Act 
                (20 U.S.C. 1234, 1234a, and 1234g) shall apply to the 
                recovery of funds under subparagraph (A).
                    ``(D) Other authority to recover funds.--This 
                paragraph shall not be construed to impair or affect 
                the authority of the Secretary to recover funds under 
                part D of the General Education Provisions Act.''.
    (b) Conforming Amendments.--Part B of title V of such Act (20 
U.S.C. 7221 et seq.) is amended---
            (1) by striking subpart 2;
            (2) by redesignating subpart 3 as subpart 2;
            (3) by redesignating sections 5241 through 5248 as sections 
        5231 through 5238, respectively; and
            (4) by amending the items of the table of contents of such 
        Act that follow subpart 1 to read as follows:

          ``subpart 2--voluntary public school choice programs

``Sec. 5231. Grants.
``Sec. 5232. Uses of funds.
``Sec. 5233. Applications.
``Sec. 5234. Priorities.
``Sec. 5235. Requirements and voluntary participation.
``Sec. 5236. Evaluations.
``Sec. 5237. Definitions.
``Sec. 5238. Authorization of appropriations.''.

SEC. 3. FUNDING.

    (a) Authorization of Appropriations.--Section 5211 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7221j) is 
amended to read as follows:

``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart $750,000,000 for fiscal year 2011 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.
    ``(b) Allocation.--In allocating funds made available pursuant to 
subsection (a), for any fiscal year, the Secretary shall consider--
            ``(1) the relative need for assistance under the programs 
        established under sections 5202 and 5205; and
            ``(2) the relative quality of the applications submitted 
        for grants funded under such sections.''.
    (b) Conforming Amendments.--
            (1) Priority treatment.--Section 5202(e)(1) of such Act (20 
        U.S.C. 7221a(e)(1)) is amended by striking ``5211 (other than 
        funds reserved to carry out section 5205(b)),'' and inserting 
        ``5211,''.
            (2) National activities.--Section 5205 of such Act (20 
        U.S.C. 7221d) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by striking ``reserve for each fiscal 
                year the greater of 5 percent or $5,000,000 of the 
                amount appropriated to carry out this subpart, except 
                that in no fiscal year shall the total amount so 
                reserved exceed $8,000,000, to''; and
                    (B) in subsection (b)(2)(A), by striking ``From the 
                amount made available to carry out this subsection 
                under paragraphs (2) and (3)(B) of section 5211(b) for 
                any fiscal year, the'' and inserting ``The''.
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