```

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3233 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3233

  To promote development of a 21st century energy system to increase 
     United States competitiveness in the world energy technology 
                  marketplace, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              July 8, 2008

 Mr. Bingaman introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
  To promote development of a 21st century energy system to increase 
     United States competitiveness in the world energy technology 
                  marketplace, 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 ``21st Century Energy Technology 
Deployment Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to promote the domestic development and 
deployment of the advanced, clean energy technologies required for the 
21st century through the establishment of a 21st Century Energy 
Deployment Corporation that will provide for an attractive investment 
environment through--
            (1) the development of a stable secondary market for clean 
        energy technology deployment loans; and
            (2) the cooperation and support of the private capital 
        market in order to promote access to affordable debt financing 
        for accelerated deployment of advanced clean energy 
        technologies and first-of-a-kind commercial deployments.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Advisory council.--The term ``Advisory Council'' means 
        the Energy Technology Advisory Council of the Corporation.
            (2) Board of directors.--The term ``Board of Directors'' 
        means the Board of Directors of the Corporation.
            (3) Breakthrough technology.--The term ``breakthrough 
        technology'' means a clean energy technology that--
                    (A) receives a high rating according to the 
                criteria established by the Advisory Council for 
                meeting the objectives of this Act; but
                    (B) has been impeded in the development of the 
                technology due to perceived high technical risk by the 
                commercial financial sector.
            (4) Clean energy technology.--The term ``clean energy 
        technology'' means a technology related to the production, use, 
        transmission, control, or conservation of energy that will 
        contribute to meeting objectives of the United States--
                    (A) to reduce the need for additional energy 
                supplies by using existing energy supplies with greater 
                efficiency or by transmitting energy with greater 
                effectiveness through United States energy 
                infrastructure;
                    (B) to diversify the sources of energy supply of 
                the United States to include supplies that are 
                environmentally sustainable; or
                    (C) to stabilize atmospheric greenhouse gas levels 
                thorough reduction, avoidance, and sequestration of 
                energy-related emissions.
            (5) Corporation.--The term ``Corporation'' means the 21st 
        Century Energy Deployment Corporation established by section 5.
            (6) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (7) Novel technology.--The term ``novel technology'' means 
        a clean energy technology that, as determined by the Advisory 
        Council or the Secretary--
                    (A) has been sufficiently demonstrated; and
                    (B) has not been widely deployed on a commercial 
                scale.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) Security.--The term ``security'' has the meaning given 
        the term in section 2 of the Securities Act of 1933 (15 U.S.C. 
        77b).
            (10) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
            (11) Technology risk.--The term ``technology risk'' means 
        risk of project failure generally considered by lenders due to 
        the lack of operating applications of the technology.

SEC. 4. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

    (a) Goals.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, after consultation with the Advisory Council, 
shall develop and publish
near-, medium-, and long-term goals for the deployment of clean energy 
technologies through the Corporation to establish or promote--
            (1) sufficient electric generating capacity using clean 
        energy technologies to meet the energy needs of the United 
        States;
            (2) clean energy technologies in vehicles and fuels that 
        will end the reliance of the United States on foreign sources 
        of energy and insulate consumers from the price shocks of world 
        energy markets;
            (3) a domestic commercialization and manufacturing capacity 
        that will establish the United States as a world leader in 
        clean energy technologies across multiple sectors;
            (4) installation of sufficient infrastructure to allow for 
        the cost-effective deployment of clean energy technologies in 
        each region of the United States;
            (5) the transformation of the building stock of the United 
        States to zero net energy consumption;
            (6) the recovery, use, and prevention of waste energy in 
        the industrial sector;
            (7) domestic manufacturing of clean energy technologies on 
        a scale that is sufficient to make the cost to the consumer 
        less than current technologies;
            (8) domestic production of raw materials (such as steel, 
        cement, and iron) using clean energy technologies so that the 
        United States will become a world leader in sustainable 
        production of the materials;
            (9) a robust, efficient, and interactive electricity 
        transmission grid that will allow for the implementation of 
        clean energy technologies, distributed generation, and demand-
        response in each State; and
            (10) such other goals as the Secretary and Advisory Council 
        determine to be consistent with the purposes of this Act.
    (b) Performance Targets.--Taking into account the goals established 
under subsection (a), the Advisory Council shall publish 5- and 10-year 
numerical targets, and annual interim targets, to guide and measure the 
performance of the Corporation toward supporting the deployment of 
clean energy technologies and achieving other goals developed under 
that subsection.
    (c) Initial Targets.--Until the first publication by the Advisory 
Council of targets under subsection (b), in establishing the deployment 
priorities of the Corporation, the Corporation shall consider 
deploying--
            (1) commercial-scale carbon capture and storage from 
        electricity generation capturing at least 10,000,000 short tons 
        per year by 2015;
            (2) solar photovoltaic systems with a power production cost 
        of 14 cents per kilowatt-hour;
            (3) concentrated solar power systems with a power 
        production cost of 6 cents per kilowatt-hour;
            (4) wind power systems greater than 100 kilowatts with a 
        power production cost of--
                    (A) 3.6 cents per kilowatt-hour by 2012 for land-
                based sites with average wind speeds of 13 miles per 
                hour; and
                    (B) 5 cents per kilowatt-hour by 2015 for offshore 
                wind systems with average wind speeds of 15 miles per 
                hour;
            (5) new enhanced geothermal systems generation capacity 
        with a power production cost of 5 cents per kilowatt-hour by 
        2023;
            (6) technologies to realize a 20 percent improvement in 
        energy intensity by energy-intensive industries by 2020; and
            (7) advanced energy systems to achieve net-zero energy use 
        in new residential and commercial buildings by 2025 through a 
        60 percent-reduction in building energy use.
    (d) Portfolio Requirement.--To the extent practicable and 
consistent with the purpose of this Act, not less than 75 percent of 
the support provided by the Corporation under this section shall be for 
breakthrough technologies.
    (e) Revisions.--
            (1) Goals.--The Secretary shall revise the goals 
        established under subsection (a), from time to time as 
        appropriate, to account for advances in technology and changes 
        in energy policy.
            (2) Performance targets.--The Advisory Council shall revise 
        the performance targets under subsection (b), from time to time 
        as appropriate, to account for advances in technology and 
        changes in energy policy.

SEC. 5. 21ST CENTURY ENERGY DEPLOYMENT CORPORATION.

    (a) Establishment.--
            (1) In general.--There is established the 21st Century 
        Energy Deployment Corporation, which shall be a body corporate 
        under the direction of a Board of Directors.
            (2) Board of directors.--Subject to other provisions of law 
        (including regulations), the Board of Directors shall determine 
        the general policies that govern the operations of the 
        Corporation.
            (3) Offices.--
                    (A) Principal office.--The Corporation shall--
                            (i) maintain the principal office of the 
                        Corporation in the District of Columbia; and
                            (ii) for purposes of venue in civil 
                        actions, be considered to be a resident of the 
                        District of Columbia.
                    (B) Other agencies and offices.--The Corporation 
                may establish other agencies or offices in such other 
                places as the Corporation considers necessary or 
                appropriate for the conduct of the business of the 
                Corporation.
    (b) Board of Directors.--
            (1) In general.--The Board of Directors shall consist of--
                    (A) the Secretary, who shall serve an ex-officio 
                member of the Board; and
                    (B) 9 members who shall--
                            (i) be appointed by the President for 
                        staggered 4-year terms, as determined by the 
                        President; and
                            (ii) have experience in banking or 
                        financial services relevant to the operations 
                        of the Corporation, including--
                                    (I) at least 1 individual with 
                                substantial experience in the 
                                development of energy projects;
                                    (II) at least 1 individual with 
                                experience in the electric utility 
                                industry; and
                                    (III) at least 1 individual with 
                                experience in the banking industry.
            (2) Removal.--Any appointed member of the Board of 
        Directors may be removed from office by the President for good 
        cause.
            (3) Vacancies.--Any appointive seat on the Board of 
        Directors that becomes vacant shall be filled by appointment by 
        the President, but only for the unexpired portion of the term.
            (4) Compensation; travel expenses.--A member of the Board 
        of Directors shall not be compensated for service on the Board 
        of Directors but shall be allowed travel expenses, including 
        per diem in lieu of subsistence, at rates authorized for an 
        employee of an agency under subchapter I of chapter 57 of title 
        5, United States Code, while away from the home or regular 
        place of business of the member in the performance of the 
        duties of the Board of Directors.
    (c) Energy Technology Advisory Council.--
            (1) In general.--The Corporation shall have an Energy 
        Technology Advisory Council consisting of--
                    (A) 5 members selected by the Secretary; and
                    (B) 3 members selected by the Board of Directors.
            (2) Qualifications.--The members of the Advisory Council 
        shall--
                    (A) have relevant scientific expertise; and
                    (B) include representatives of--
                            (i) the academic community;
                            (ii) the private research community; and
                            (iii) National Laboratories.
            (3) Duties.--The Advisory Council shall--
                    (A) develop a rating system for projects and clean 
                energy technologies to determine how well the projects 
                and clean energy technologies address the purpose of 
                this Act and establish a priority for the projects and 
                clean energy technologies for financial assistance 
                under this Act, taking into account--
                            (i) the extent to which a project or clean 
                        energy technology will enhance the energy 
                        security of the United States;
                            (ii) the potential the project or clean 
                        energy technology has to enhance the 
                        competitiveness of the United States in 
                        providing energy technologies likely to be in 
                        demand throughout the world;
                            (iii) the potential benefits of the project 
                        or clean energy technology in averting climate 
                        change; and
                            (iv) the potential of the technology, once 
                        deployed, to become financially self-
                        sustaining;
                    (B) advise on the technological approaches that 
                should be supported by the Corporation to meet the 
                technology deployment goals established by the 
                Secretary; and
                    (C) set risk and default rate targets for 
                individual technologies, such that the maximum 
                practicable ratio of breakthrough technologies to novel 
                technologies is developed.
            (4) Term.--
                    (A) In general.--Members of the Advisory Council 
                shall have 3-year staggered terms, as determined by the 
                Secretary and the Board of Directors.
                    (B) Reappointment.--A member of the Advisory 
                Council may be reappointed.
            (5) Compensation.--A member of the Advisory Council shall 
        serve without compensation but shall be allowed travel 
        expenses, including per diem in lieu of subsistence, at rates 
        authorized for an employee of an agency under subchapter I of 
        chapter 57 of title 5, United States Code, while away from the 
        home or regular place of business of the member in the 
        performance of the duties of the Advisory Council.

SEC. 6. CLEAN ENERGY TECHNOLOGY DEPLOYMENT SECURITIZATION.

    (a) In General.--The Corporation may purchase, and make commitments 
to purchase, any debt instrument associated with the deployment of 
clean energy technologies.
    (b) Disposition of Debt or Interest.--The Corporation may hold and 
deal with, and sell or otherwise dispose of, pursuant to commitments or 
otherwise, any debt described in subsection (a) or interest in the 
debt.
    (c) Pricing.--
            (1) In general.--The Corporation may establish 
        requirements, and impose charges or fees, which may be regarded 
        as elements of pricing, for different classes of sellers or 
        services.
            (2) Classification of sellers.--For the purpose of 
        paragraph (1), the Corporation may classify sellers as 
        necessary to promote transparency and liquidity and properly 
        characterize the risk of default.
    (d) Eligibility.--The Corporation shall establish criteria and 
mechanisms such that, to the maximum extent practicable, sellers will 
be able to determine the eligibility of loans for resale at the time of 
initial lending.
    (e) Aggregation of Small Scale Projects.--The Corporation shall 
work with Federal, State, local, and private sector entities to develop 
debt instruments that aggregate projects for clean energy technology 
deployments on a residential or small commercial scale.
    (f) Securitization.--
            (1) In general.--The Corporation may lend on the security 
        of, and make commitments to lend on the security of, any debt 
        that the Corporation is authorized to purchase under this 
        section.
            (2) Authorized actions.--On such terms and conditions as 
        the Corporation may prescribe, the Corporation may--
                    (A) borrow;
                    (B) give security;
                    (C) pay interest or other return; and
                    (D) issue notes, debentures, bonds, or other 
                obligations or securities.
    (g) Lending Activities.--
            (1) In general.--The Corporation shall determine--
                    (A) the volume of the lending activities of the 
                Corporation; and
                    (B) the type of loan ratios, risk profiles, 
                interest rates, maturities, and charges or fees in the 
                secondary market operations of the Corporation.
            (2) Objectives.--Determinations under paragraph (1) shall 
        be consistent with the objectives of--
                    (A) providing an attractive investment environment 
                for clean energy technologies;
                    (B) making the operations of the Corporation self-
                supporting over the long term; and
                    (C) meeting the targets established by the Advisory 
                Council.
    (h) No Federal Guarantee.--The Corporation shall insert appropriate 
language in all of the obligations and securities of the Corporation 
issued under this section that clearly indicates that the obligations 
and securities (together with the interest)--
            (1) are not guaranteed by the United States; and
            (2) do not constitute a debt or obligation of the United 
        States or any agency or instrumentality other than the 
        Corporation.
    (i) Exempt Securities.--All securities issued or guaranteed by the 
Corporation shall, to the same extent as securities that are direct 
obligations of or obligations guaranteed as to principal or interest by 
the United States, be considered to be exempt securities within the 
meaning of the laws administered by the Securities and Exchange 
Commission.
    (j) Other Authorized Programs.--
            (1) In general.--The Secretary may contract with the 
        Corporation to provide financial services and program 
        management for grant, loan, and other credit enhancement 
        programs authorized under any other provision of law.
            (2) Administration.--In administering any other program 
        under contract with the Secretary, the Corporation shall, to 
        the maximum extent practicable (as determined by the 
        Corporation)--
                    (A) administer the program in a manner that is 
                consistent with the terms and conditions of this Act; 
                and
                    (B) minimize the administrative costs to the 
                Federal Government.

SEC. 7. FEDERAL OWNERSHIP OF OBLIGATIONS.

    (a) In General.--In order to maintain sufficient liquidity, the 
Corporation may issue notes, debentures, bonds, or other obligations 
for purchase by the Secretary of the Treasury.
    (b) Public Debt Transactions.--For the purpose of subsection (a)--
            (1) the Secretary of the Treasury may use as a public debt 
        transaction the proceeds of the sale of any securities issued 
        under chapter 31 of title 31, United States Code; and
            (2) the purposes for which securities may be issued under 
        that chapter are extended to include any purchase under this 
        subsection.
    (c) Maximum Outstanding Holding.--The Secretary of the Treasury 
shall not purchase any obligations under this section if the purchase 
would increase the aggregate principal amount of the outstanding 
holdings of obligations under this section by the Secretary to an 
amount that is greater than $1,500,000,000.
    (d) Rate of Return.--Each purchase of obligations by the Secretary 
of the Treasury under this section shall be on terms and conditions 
established to yield a rate of return determined by the Secretary to be 
appropriate, taking into account the current average rate on 
outstanding marketable obligations of the United States as of the last 
day of the month preceding the purchase.
    (e) Sale of Obligations.--The Secretary of the Treasury may at any 
time sell, on terms and conditions and at prices determined by the 
Secretary, any of the obligations acquired by the Secretary under this 
section.
    (f) Public Debt Transactions.--All redemptions, purchases, and 
sales by the Secretary of the Treasury of obligations under this 
section shall be treated as public debt transactions of the United 
States.

SEC. 8. GENERAL PROVISIONS.

    (a) Immunity From Impairment, Limitation, or Restriction.--
            (1) In general.--All rights and remedies of the Corporation 
        (including any rights and remedies of the Corporation on, 
        under, or with respect to any mortgage or any obligation 
        secured by a mortgage) shall be immune from impairment, 
        limitation, or restriction by or under--
                    (A) any law (other than a law enacted by Congress 
                expressly in limitation of this paragraph) that becomes 
                effective after the acquisition by the Corporation of 
                the subject or property on, under, or with respect to 
                which the right or remedy arises or exists or would so 
                arise or exist in the absence of the law; or
                    (B) any administrative or other action that becomes 
                effective after the acquisition.
            (2) State law.--The Corporation may conduct the business of 
        the Corporation without regard to any qualification or law of 
        any State relating to incorporation.
    (b) Powers.--Subject to subsection (c), the Corporation shall have 
all the powers of a private corporation incorporated under the District 
of Columbia Business Corporation Act (D.C. Code, sec. 29 et seq.).
    (c) Administration.--
            (1) Performance-based compensation.--A significant portion 
        of potential compensation of all executive officers of the 
        Corporation shall be based on the performance of the 
        Corporation, all without regard to any other law except as may 
        be provided by the Corporation or by a law enacted after the 
        date of enactment of this Act that expressly limits this 
        paragraph.
            (2) Use of other agencies.--With the consent of a 
        department, establishment, or instrumentality (including any 
        field office), the Corporation may--
                    (A) use and act through any department, 
                establishment, or instrumentality;
                    (B) use, and pay compensation for, information, 
                services, facilities, and personnel of the department, 
                establishment, or instrumentality.
    (d) Financial Matters.--
            (1) Investments.--Funds of the Corporation may be invested 
        in such investments as the Board of Directors may prescribe.
            (2) Fiscal agents.--
                    (A) In general.--Any Federal Reserve bank or any 
                bank as to which at the time of the designation of the 
                bank by the Corporation there is outstanding a 
                designation by the Secretary of the Treasury as a 
                general or other depository of public money, may be 
                designated by the Corporation as a depositary or 
                custodian or as a fiscal or other agent of the 
                Corporation.
                    (B) Depositary of public money.--If designated for 
                that purpose by the Secretary of the Treasury, the 
                Corporation--
                            (i) shall be a depositary of public money, 
                        under such regulations as may be promulgated by 
                        the Secretary of the Treasury;
                            (ii) may also be employed as a fiscal or 
                        other agent of the United States; and
                            (iii) shall perform all such reasonable 
                        duties of such depositary or agent as may be 
                        required.
    (e) Taxation.--
            (1) In general.--Subject to paragraph (2), the Corporation 
        (including the franchise, activities, capital, reserves, 
        surplus, and income of the Corporation) shall be exempt from 
        all taxation imposed by any State or local political 
        subdivision of a State.
            (2) Real property.--Any real property of the Corporation 
        shall be subject to taxation by a State or political 
        subdivision of a State to the same extent according to the 
        value of the real property as other real property is taxed.
    (f) Jurisdiction.--Notwithstanding section 1349 of title 28, United 
States Code, or any other provision of law--
            (1) the Corporation shall be considered an agency covered 
        by sections 1345 and 1442 of title 28, United States Code;
            (2) all civil actions to which the Corporation is a party 
        shall be considered to arise under the laws of the United 
        States, and the district courts of the United States shall have 
        original jurisdiction of all such actions, without regard to 
        amount or value; and
            (3) any civil or other action, case or controversy in a 
        court of a State, or in any court other than a district court 
        of the United States, to which the Corporation is a party may 
        at any time before trial be removed by the Corporation, without 
        the giving of any bond or security and by following any 
        procedure for removal of causes in effect at the time of the 
        removal--
                    (A) to the district court of the United States for 
                the district and division embracing the place in which 
                the same is pending; or
                    (B) if there is no such district court, to the 
                district court of the United States for the district in 
                which the principal office of the Corporation is 
                located.
    (g) Annual Reports.--Not later than 1 year after incorporation of 
the Corporation and annually thereafter, the Corporation shall submit 
to the Committee on Energy and Natural Resources of the Senate and the 
Committee on Energy and Commerce in the House a report that includes--
            (1) a description of--
                    (A) the technologies supported by activities of the 
                Corporation and how the activities advance the purposes 
                of this Act;
                    (B) the performance of the Corporation on meeting 
                the goals established by the Secretary;
                    (C) the comparability of the compensation policies 
                of the Corporation with the compensation policies of 
                other similar businesses;
                    (D) in the aggregate, the percentage of total cash 
                compensation and payments under employee benefit plans 
                (which shall be defined in a manner consistent with the 
                proxy statement of the Corporation for the annual 
                meeting of shareholders for the preceding year) earned 
                by executive officers of the Corporation during the 
                preceding year that was based on the performance of the 
                Corporation; and
                    (E) the comparability of the financial performance 
                of the Corporation with the performance of other 
                similar businesses; and
            (2) the proxy statement of the Corporation for the annual 
        meeting of shareholders for the preceding year.
    (h) Audits by the Comptroller General.--
            (1) In general.--The programs, activities, receipts, 
        expenditures, and financial transactions of the Corporation 
        shall be subject to audit by the Comptroller General of the 
        United States under such rules and regulations as may be 
        prescribed by the Comptroller General.
            (2) Access.--The representatives of the Government 
        Accountability Office shall--
                    (A) have access to the personnel and to all books, 
                accounts, documents, records (including electronic 
                records), reports, files, and all other papers, 
                automated data, things, or property belonging to, under 
                the control of, or in use by the Corporation and 
                necessary to facilitate the audit;
                    (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositories, fiscal agents, and custodians;
                    (C) be authorized to obtain and duplicate any such 
                books, accounts, documents, records, working papers, 
                automated data and files, or other information relevant 
                to the audit without cost to the Comptroller General; 
                and
                    (D) have the right of access of the Comptroller 
                General to such information be enforceable pursuant to 
                section 716(c) of title 31, United States Code.
            (3) Report.--
                    (A) In general.--The Comptroller General shall 
                submit to Congress a report on each audit conducted 
                under this subsection.
                    (B) Contents.--The report shall include a 
                description of--
                            (i) the scope of the audit;
                            (ii) any surplus or deficit;
                            (iii) income and expenses;
                            (iv) sources and application of funds;
                            (v) such comments and information as is 
                        necessary to inform Congress of the financial 
                        operations and condition of the Corporation; 
                        and
                            (vi) any recommendations as the Comptroller 
                        General considers appropriate.
            (4) Assistance and cost.--
                    (A) In general.--For the purpose of conducting an 
                audit under this subsection, the Comptroller General 
                may, in the discretion of the Comptroller General, 
                employ by contract, without regard to section 3709 of 
                the Revised Statutes (41 U.S.C. 5), professional 
                services of firms and organizations of certified public 
                accountants for temporary periods or for special 
                purposes.
                    (B) Reimbursement.--On the request of the 
                Comptroller General, the Corporation shall reimburse 
                the General Accountability Office for the full cost of 
                any audit conducted by the Comptroller General under 
                this subsection.
    (i) Annual Independent Audit.--
            (1) In general.--The Corporation shall have an annual 
        independent audit made of the financial statements of the 
        Corporation by an independent public accountant in accordance 
        with generally accepted auditing standards.
            (2) Content.--In conducting an audit under this subsection, 
        the independent public accountant shall determine and report on 
        whether the financial statements of the Corporation--
                    (A) are presented fairly in accordance with 
                generally accepted accounting principles; and
                    (B) to the extent determined necessary by the 
                Director, comply with any disclosure requirements 
                imposed under this Act.

SEC. 9. OVERSIGHT BY THE SECRETARY.

    (a) Duties.--The Secretary shall--
            (1) oversee the operations of the Corporation; and
            (2) ensure that--
                    (A) the Corporation operates in a safe and sound 
                manner, including maintenance of adequate capital and 
                internal controls;
                    (B) the operations and activities of the 
                Corporation foster liquid, efficient, competitive, and 
                resilient energy finance markets;
                    (C) the Corporation carries out the statutory 
                mission of the Corporation only through activities that 
                are authorized under and consistent with this Act; and
                    (D) the activities of the Corporation and the 
                manner in which the Corporation is operated is 
                consistent with the public interest.
    (b) Financial Reports.--
            (1) In general.--The Corporation shall submit to the 
        Secretary annual and quarterly reports of the financial 
        condition and operations of the Corporation which shall be in 
        such form, contain such information, and be submitted on such 
        dates as the Secretary shall require.
            (2) Contents of annual reports.--Each annual report shall 
        include--
                    (A) financial statements prepared in accordance 
                with generally accepted accounting principles;
                    (B) any supplemental information or alternative 
                presentation that the Secretary may require; and
                    (C) an assessment (as of the end of the most recent 
                fiscal year of the Corporation), signed by the chief 
                executive officer and chief accounting or financial 
                officer of the Corporation, of--
                            (i) the effectiveness of the internal 
                        control structure and procedures of the 
                        Corporation; and
                            (ii) the compliance of the Corporation with 
                        designated safety and soundness laws.
            (3) Special reports.--The Secretary may require the 
        Corporation to submit other reports on the condition (including 
        financial condition), management, activities, or operations of 
        the Corporation, as the Secretary considers appropriate.
            (4) Accuracy.--Each report of financial condition shall 
        contain a declaration by the president, vice president, 
        treasurer, or any other officer designated by the Board of 
        Directors of the Corporation to make the declaration, that the 
        report is true and correct to the best of the knowledge and 
        belief of the officer.
    (c) Management and Operation Standards.--The Secretary shall 
establish standards, by regulation or guideline, for the Corporation 
relating to--
            (1) the adequacy of internal controls and information 
        systems;
            (2) the independence and adequacy of internal audit 
        systems;
            (3) the management of market risk, including standards to 
        provide for systems that measure, monitor, and control market 
        risks and, as warranted, to establish limitations on market 
        risk;
            (4) risk management processes, including the adequacy of 
        oversight by senior management and the Board of Directors and 
        of processes and policies to measure, monitor, and control 
        material risks, including reputational risks, and for adequate, 
        well-tested business resumption plans in the case of disruptive 
        events;
            (5) the management of credit and counterparty risk, 
        including systems to identify concentrations of credit risk and 
        prudential limits to restrict the exposure of the Corporation 
        to a single counterparty or groups of related counterparties;
            (6) the maintenance of adequate records, in accordance with 
        consistent accounting policies and practices to enable the 
        Secretary to evaluate the financial condition of the 
        Corporation; and
            (7) such other operational and management standards as the 
        Secretary determines to be appropriate.
    (d) Failure To Meet Standards.--
            (1) In general.--If the Secretary determines that the 
        Corporation fails to meet any standard established under 
        subsection (c), the Secretary may require the Corporation to 
        submit an acceptable plan to the Secretary within a reasonable 
        time that specifies the actions that the Corporation will take 
        to correct the deficiency.
            (2) Required order on failure to submit or implement 
        plan.--If the Corporation fails to submit an acceptable plan 
        within the time specified by the Secretary or fails in any 
        material respect to implement a plan accepted by the Secretary, 
        the Secretary shall, by order, require the Corporation to 
        correct the deficiency.
    (e) Prohibition and Withholding of Executive Compensation.--
            (1) In general.--The Secretary shall prohibit the 
        Corporation from providing compensation to any executive 
        officer that is not reasonable and comparable with compensation 
        for employment in other similar businesses (including other 
        publicly held financial institutions or major financial 
        services companies) involving similar duties and 
        responsibilities.
            (2) Factors.--In making any determination under paragraph 
        (1), the Secretary may take into consideration any factors the 
        Secretary considers relevant, including any wrongdoing on the 
        part of the executive officer.
            (3) Withholding of compensation.--In carrying out paragraph 
        (1), the Secretary may require the Corporation to withhold any 
        payment, transfer, or disbursement of compensation to an 
        executive officer, or to place such compensation in an escrow 
        account, during the review of reasonableness and comparability 
        of compensation.
            (4) Prohibition of setting compensation.--In carrying out 
        paragraph (1), the Secretary may not prescribe or set a 
        specific level or range of compensation.

SEC. 10. ISSUANCE OF COMMON STOCK TO EXPAND OPERATIONS.

    (a) In General.--Not later than 5 years after the date of enactment 
of this Act, the Corporation may prepare a strategic plan for issuing 
common stock to raise the capital needed to expand the operations of 
the Corporation in carrying out this Act.
    (b) Consideration of Alternatives for Governance.--The strategic 
plan shall include consideration of alternatives for restructuring the 
Board of Directors to allow for a majority of the Members to be 
selected by voting common stockholders.
    (c) Evaluation and Recommendation.--The strategic plan shall--
            (1) evaluate the relative merits of the alternatives 
        considered; and
            (2) include the recommendation of the Corporation on a 
        proposed alternative.
    (d) Transmittal.--On completion of the strategic plan, the 
Corporation shall submit copies of the strategic plan to the President 
and Congress, along with any recommendations for legislative changes 
required to implement the plan.
    (e) Implementation.--Subject to subsections (f) and (g), subsequent 
to submitting a strategic plan pursuant to this section, the 
Corporation may implement the strategic plan.
    (f) Requirement for Presidential Approval.--The Corporation may not 
implement the strategic plan without the approval of the President.
    (g) Notification of Congress.--
            (1) In general.--The Corporation shall notify Congress of 
        any intent to implement the strategic plan if the Corporation 
        determines, in consultation with the Secretary and other 
        appropriate agencies of the United States, that no further 
        legislation is required for the implementation.
            (2) Implementation.--The Corporation may not implement the 
        strategic plan under this subsection earlier than 60 days after 
        notification of Congress.
                                 <all>
```