I 

113TH CONGRESS 

2D SESSION H. R. 4522 

To establish the Green Bank to assist in the financing of qualified clean 

energy projects and qualified energy efficiency projects. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 30, 2014 

Mr. VAN HOLLEN (for himself, Mr. BLUMENAUER, Ms. ESTY, Mr. HIMES, 

Mr. CONNOLLY, Ms. NORTON, Ms. SLAUGHTER, and Mr. LANGEVIN) 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 establish the Green Bank to assist in the financing of 

qualified clean energy projects and qualified energy efficiency projects. 

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: 


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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 Green Bank (established under section 9801 of this title), 

7 of which not more than $200,000,000 shall be used for 

8 costs that the Green Bank incurs for its first year in order 

9 to provide loans, loan guarantees, debt securitization, in10 surance, portfolio insurance, and other forms of financing 

11 support or risk management for qualified clean energy 

12 projects and qualified energy efficiency projects (as such 

13 terms are defined under such section). Stock certificates 

14 evidencing ownership in the Green Bank shall be issued 

15 by the Green Bank to the Secretary of the Treasury, to 

16 the extent of payments made for the capital stock of the 

17 Green Bank. 

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

19 of the Bank, the Secretary of the Treasury shall issue ad20 ditional Green Bonds on the credit of the United States 

21 to acquire additional capital stock of the Green Bank in 

22 an aggregate amount not to exceed $50,000,000,000 out23 standing at any one time. 

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

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


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1 mature within such periods, as determined by the Sec2 retary of the Treasury. 

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

4 a rate not less than the current average yield on out5 standing market obligations of the United States of com6 parable maturity during the month preceding the issuance 

7 of the obligation as determined by the Secretary of the 

8 Treasury. 

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

10 unconditionally guaranteed both as to interest and prin11 cipal by the United States, and such guaranty shall be 

12 expressed on the face of each bond. 

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

14 lawful investments, and may be accepted as security for 

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

16 deposit of which shall be under the authority or control 

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

18 SEC. 2. GREEN BANK. 

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

20 the following new chapter at the end thereof: 

21 ‘‘CHAPTER 98—GREEN BANK 

‘‘Sec. 

‘‘9801. Green Bank. 

22 ‘‘§ 9801. Green Bank 

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

24 ‘Green Bank Act of 2014’. 


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

2 follows: 

3 ‘‘(1) To evaluate and coordinate financing for 

4 qualified clean energy projects and qualified energy 

5 efficiency projects. 

6 ‘‘(2) To provide loans, loan guarantees, debt 

7 securitization, insurance, portfolio insurance, and 

8 other forms of financing support or risk manage9 ment to qualified clean energy projects and qualified 

10 energy efficiency projects. 

11 ‘‘(3) To facilitate— 

12 ‘‘(A) efficient tax equity markets for quali13 fied clean energy projects; and 

14 ‘‘(B) the financing of long-term clean en15 ergy purchasing by governmental and non-gov16 ernmental not-for-profit entities. 

17 ‘‘(4) To foster— 

18 ‘‘(A) the development and consistent appli19 cation of transparent underwriting standards, 

20 standard contractual terms, and measurement 

21 and verification protocols for qualified clean en22 ergy projects and qualified energy efficiency 

23 projects; 

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

25 enables effective underwriting, risk manageVerDate Mar 15 2010 01:57 May 01, 2014 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4522.IH H4522

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1 ment, and pro forma modeling of financial per2 formance of qualified clean energy projects and 

3 qualified energy efficiency projects to support 

4 primary financing markets and stimulate devel5 opment of secondary investment markets for 

6 clean energy projects and energy efficiency 

7 projects; and 

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

9 qualified clean energy projects and qualified en10 ergy efficiency projects necessary to advance 

11 vital national objectives, including— 

12 ‘‘(i) achieving energy independence 

13 from foreign energy sources; 

14 ‘‘(ii) abating climate change by in15 creasing zero or low carbon electricity gen16 eration and transportation capabilities; 

17 ‘‘(iii) realizing energy efficiency poten18 tial in existing infrastructure; 

19 ‘‘(iv) easing the economic effects of 

20 transitioning from a carbon-based economy 

21 to a clean energy economy; 

22 ‘‘(v) achieving job creation through 

23 the construction and operation of qualified 

24 clean energy projects and qualified energy 

25 efficiency projects; 


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1 ‘‘(vi) fostering long-term domestic 

2 manufacturing capacity in the clean energy 

3 and energy efficiency industries; and 

4 ‘‘(vii) complementing and 

5 supplementing other clean energy and en6 ergy efficiency legislation at the Federal or 

7 State level. 

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

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

10 Bank established under subsection (d). 

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

12 Board of Directors of the Bank. 

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

14 ‘clean energy project’ means any electricity genera15 tion, transmission, storage, heating, cooling, trans16 portation, distribution, industrial process, or manu17 facturing project whose primary purpose is the de18 ployment, development, or production of an energy 

19 system or technology that avoids, reduces, or seques20 ters air pollutants or anthropogenic greenhouse 

21 gases, including the following: 

22 ‘‘(A) Solar. 

23 ‘‘(B) Wind. 

24 ‘‘(C) Geothermal. 

25 ‘‘(D) Biomass. 


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1 ‘‘(E) Hydropower. 

2 ‘‘(F) Ocean and hydrokinetic. 

3 ‘‘(G) Fuel cell. 

4 ‘‘(H) Advanced battery. 

5 ‘‘(I) Carbon capture and sequestration. 

6 ‘‘(J) Next generation biofuels from 

7 nonfood feedstocks. 

8 ‘‘(K) Alternative vehicle fuel infrastruc9 ture. 

10 ‘‘(L) Nuclear. 

11 ‘‘(4) ENERGY EFFICIENCY PROJECT.—The term 

12 ‘energy efficiency project’ means any project, tech13 nology, function, or measure that results in the re14 duction of energy use required to achieve the same 

15 level of service or output prior to the application of 

16 such project, technology, function, or measure, or 

17 substantially reduces greenhouse gas emissions rel18 ative to emissions that would have occurred prior to 

19 the application of such project, technology, function, 

20 or measure. 

21 ‘‘(5) GREEN BOND.—The term ‘Green Bond’ 

22 means a bond issued pursuant to section 3102A of 

23 this title. 


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1 ‘‘(6) QUALIFIED CLEAN ENERGY PROJECT.— 

2 The term ‘qualified clean energy project’ means a 

3 clean energy project that— 

4 ‘‘(A) is carried out domestically within the 

5 territorial borders of the United States; 

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

7 payment obligations; 

8 ‘‘(C) pays wages in accordance with sub9 chapter IV of chapter 31 of title 40, United 

10 States Code (commonly referred to as the 

11 Davis-Bacon Act); 

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

13 Bank only after all other existing Federal fi14 nancial support has been expended; and 

15 ‘‘(E) satisfies any other conditions estab16 lished by the Bank and published in the Fed17 eral Register. 

18 ‘‘(7) QUALIFIED ENERGY EFFICIENCY

19 PROJECT.—The term ‘qualified energy efficiency 

20 project’ means an energy efficiency project, includ21 ing smart grid technologies and functions character22 ized in section 1301 of the Energy Independence 

23 and Security Act of 2007 and end-use technologies 

24 for efficiency gains in new construction and across 

25 existing infrastructure that— 


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1 ‘‘(A) is carried out domestically within the 

2 territorial borders of the United States; 

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

4 payment obligations; 

5 ‘‘(C) pays wages in accordance with sub6 chapter IV of chapter 31 of title 40, United 

7 States Code (commonly referred to as the 

8 Davis-Bacon Act); and 

9 ‘‘(D) satisfies any other conditions estab10 lished by the Bank and published in the Fed11 eral Register. 

12 ‘‘(8) STATE CLEAN ENERGY FINANCING INSTI13 TUTION.—The term ‘State clean energy financing in14 stitution’ means an independent entity, quasi-inde15 pendent entity, or an entity within a State agency or 

16 financing authority established by a State 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 en21 ergy 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 


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1 and innovative clean energy and energy effi2 ciency projects. State clean energy financing in3 stitutions may enter into partnerships with pri4 vate entities. 

5 ‘‘(d) GREEN BANK.— 

6 ‘‘(1) ESTABLISHMENT OF CORPORATION.— 

7 There is established a corporation to be known as 

8 the Green Bank that shall be wholly owned by the 

9 United States. 

10 ‘‘(2) INDEPENDENT CORPORATION.—The Bank 

11 shall be an independent corporation. Neither the 

12 Bank nor any of its functions, powers, or duties 

13 shall be transferred to or consolidated with any 

14 other department, agency, or corporation of the Gov15 ernment unless the Congress provides otherwise. 

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

17 for 20 years from the date of enactment of this sec18 tion. 

19 ‘‘(4) GOVERNANCE.— 

20 ‘‘(A) BOARD OF DIRECTORS OF THE

21 BANK.— 

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

23 under the direction of a Board of Direc24 tors. 


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1 ‘‘(ii) MEMBERSHIP.—The Board shall 

2 consist of 11 members, as follows: 

3 ‘‘(I) The Secretary of Energy or 

4 the Secretary’s designee. 

5 ‘‘(II) The Secretary of the Treas6 ury or the Secretary’s designee. 

7 ‘‘(III) The Secretary of the Inte8 rior or the Secretary’s designee. 

9 ‘‘(IV) The Secretary of Agri10 culture or the Secretary’s designee. 

11 ‘‘(V) The Secretary of Transpor12 tation or the Secretary’s designee. 

13 ‘‘(VI) 6 members appointed by 

14 the President of the United States in15 cluding a Chief Executive Officer, 1 

16 member with expertise regarding re17 newable energy, 1 member with exper18 tise regarding energy efficiency, 1 

19 member with expertise regarding elec20 tric utilities, 1 member with expertise 

21 regarding consumer affairs, and 1 

22 member with expertise regarding sus23 tainable transportation. 

24 ‘‘(iii) QUORUM.—6 members of the 

25 Board shall constitute a quorum. 


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1 ‘‘(iv) BYLAWS.—The Board shall 

2 adopt, and may amend, such bylaws as are 

3 necessary for the proper management and 

4 functioning of the Bank, and shall, in such 

5 bylaws, designate the vice presidents and 

6 other officers of the Bank and prescribe 

7 their duties. 

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

9 members of the Board shall be 4 years. 

10 For terms beginning after the first 4 years 

11 following the date of the enactment of this 

12 section, the Board shall create staggered 

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

14 the Board. 

15 ‘‘(vi) VACANCIES.—Any vacancy on 

16 the Board shall be filled in the same man17 ner in which the original appointment was 

18 made. 

19 ‘‘(vii) INTERIM APPOINTMENTS.—Any 

20 member appointed to fill a vacancy occur21 ring before the expiration of the term for 

22 which such member’s predecessor was ap23 pointed shall be appointed only for the re24 mainder of such term. 


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1 ‘‘(viii) REAPPOINTMENT.—Members 

2 of the Board may be reappointed for addi3 tional terms of service as members of the 

4 Board. 

5 ‘‘(ix) CONTINUATION OF SERVICE.— 

6 Any member of the Board whose term has 

7 expired may continue to serve on the 

8 Board until the earlier of— 

9 ‘‘(I) the date on which such 

10 member’s successor is appointed; or 

11 ‘‘(II) the end of the 6-month pe12 riod beginning on the date such mem13 ber’s term expires. 

14 ‘‘(x) CHAIRMAN.—The Board shall se15 lect a Chairman from among its members. 

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

17 Chief Executive Officer shall appoint an Execu18 tive Vice President who— 

19 ‘‘(i) shall serve as Chief Executive Of20 ficer of the Bank during the absence or 

21 disability of, or in the event of a vacancy 

22 in the office, of Chief Executive Officer; 

23 and 


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

2 functions as the Chief Executive Officer 

3 may prescribe. 

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

5 request of any 2 members of the Board, the 

6 Chairman shall place an item pertaining to the 

7 policies or procedures of the Bank on the agen8 da for discussion by the Board. Not later than 

9 30 days after the date such a request is made, 

10 the Chairman shall hold a meeting of the Board 

11 at which such item shall be discussed. 

12 ‘‘(D) CONFLICTS OF INTEREST.—No direc13 tor, officer, attorney, agent, or employee of the 

14 Bank shall in any manner, directly or indi15 rectly, participate in the deliberation upon, or 

16 the determination of, any question affecting 

17 such individual’s personal interests, or the in18 terests of any corporation, partnership, or asso19 ciation in which such individual is directly or 

20 indirectly personally interested. 

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

22 ‘‘(A) CONTRACTING.—The Bank may em23 ploy or otherwise contract with banks, credit 

24 agencies, attorneys, and other third parties at 

25 customary commercial rates. 


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1 ‘‘(B) HIRING.—Notwithstanding any oth2 erwise applicable Federal rules and regulations, 

3 the Bank may employ and otherwise contract 

4 with employees and provide compensation to 

5 such employees at prevailing rates for com6 pensation for similar positions in private indus7 try. 

8 ‘‘(6) SUNSET.— 

9 ‘‘(A) EXPIRATION OF CHARTER.—The 

10 Bank shall continue to exercise its functions 

11 until all obligations and commitments of the 

12 Bank are discharged, even after its charter has 

13 expired. 

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

15 of this subsection shall be construed as pre16 venting the Bank from— 

17 ‘‘(i) acquiring obligations prior to the 

18 date of the expiration of its charter which 

19 mature subsequent to such date; 

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

21 the expiration of its charter, liability as 

22 guarantor, endorser, or acceptor of obliga23 tions which mature subsequent to such 

24 date; 


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

2 the date of the expiration of its charter, 

3 for purchase by the Secretary of the Treas4 ury or any other purchasers, its notes, de5 bentures, bonds, or other obligations which 

6 mature subsequent to such date; or 

7 ‘‘(iv) continuing as a corporation and 

8 exercising any of its functions subsequent 

9 to the date of the expiration of its charter 

10 for purposes of orderly liquidation, includ11 ing the administration of its assets and the 

12 collection of any obligations held by the 

13 Bank. 

14 ‘‘(e) LENDING, FINANCING, EXPENDITURES.— 

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

16 program to provide on a competitive basis loans, 

17 loan guarantees, debt securitization, insurance, port18 folio insurance, and other forms of financing support 

19 or risk management, as the Bank determines appro20 priate, for any qualifying clean energy project or 

21 qualifying energy efficiency project. 

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

23 provide financing support (including loans, loan 

24 guarantees, debt securitization, insurance, portfolio 


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1 insurance, and other forms of financing support or 

2 risk management under paragraph (1)) if— 

3 ‘‘(A) such support is commercially reason4 able and does not exceed 80 percent of the cap5 italization of the qualified clean energy project 

6 or qualified energy efficiency project; 

7 ‘‘(B) is secured by the underlying project 

8 or such other collateral as the Chief Executive 

9 Officer of the Bank determines appropriate; 

10 and 

11 ‘‘(C) in the judgment of the Chief Execu12 tive Officer— 

13 ‘‘(i) the private credit market is not 

14 providing adequately low-priced financing 

15 to enable otherwise credit worthy entities 

16 to carry out qualified clean energy projects 

17 and qualified energy efficiency projects; 

18 ‘‘(ii) such financing support would fa19 cilitate construction or expansion of a 

20 qualified clean energy project or qualified 

21 energy efficiency project at an accelerated 

22 rate; or 

23 ‘‘(iii) such financing support would 

24 stimulate, aid, or otherwise support domes25 tic manufacturing of finished products or 


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1 component parts used in clean energy 

2 projects or energy efficiency projects. 

3 ‘‘(3) STATE CLEAN ENERGY FINANCING INSTI4 TUTIONS.— 

5 ‘‘(A) CO-FUNDING.—The Bank may co6 fund a qualified clean energy project or quali7 fied energy efficiency project with a State clean 

8 energy financing institution. 

9 ‘‘(B) ESTABLISHMENT.—The Bank may 

10 make up to $500,000,000 available through a 

11 low-interest loan for the establishment of a 

12 State clean energy financing institution if the 

13 clean energy financing institution— 

14 ‘‘(i) provides at least an equal amount 

15 for establishing such institution; and 

16 ‘‘(ii) uses funding from the Bank only 

17 for the purposes described in this section. 

18 ‘‘(4) FINANCING ACTIVITIES.— 

19 ‘‘(A) IN GENERAL.—The Bank may facili20 tate financing transactions in tax equity mar21 kets and long-term purchasing of clean energy 

22 by governmental and non-governmental not-for23 profit entities, to the degree and extent that the 

24 Bank determines such financing activity is apVerDate Mar 15 2010 01:57 May 01, 2014 Jkt 039200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H4522.IH H4522

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1 propriate and consistent with carrying out the 

2 terms of this section. 

3 ‘‘(B) SECURITIZATION.— 

4 ‘‘(i) AUTHORITY.—The Bank may, 

5 upon such terms and conditions as the 

6 Bank considers appropriate, guarantee the 

7 timely payment of principal of and interest 

8 on securities that are— 

9 ‘‘(I) issued by any issuer ap10 proved for the purposes of this sub11 paragraph by the Bank; and 

12 ‘‘(II) based on and backed by a 

13 trust or pool composed of loans made 

14 pursuant to this section. 

15 ‘‘(ii) FEES.—The Bank may collect 

16 from the issuer of a security guaranteed 

17 under this subparagraph a reasonable fee 

18 for the guarantee under this subparagraph. 

19 ‘‘(iii) PAYMENTS.—If an issuer fails 

20 to make any payment of principal of or in21 terest on any security guaranteed under 

22 this subparagraph, the Bank shall make 

23 such payment as and when due, and upon 

24 such payment shall be subrogated fully to 

25 the rights satisfied by such payment. 


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1 ‘‘(iv) DEFAULT.—The Bank may, in 

2 connection with any guaranty under this 

3 subparagraph, whether before or after any 

4 default, provide by contract with the issuer 

5 for the extinguishment, upon default by 

6 the issuer, of any redemption, equitable, 

7 legal, or other right, title, or interest of the 

8 issuer in any loan or loans constituting the 

9 trust or pool against which the guaranteed 

10 securities are issued, and with respect to 

11 any issue of guaranteed securities, in the 

12 event of default and pursuant otherwise to 

13 the terms of the contract, the loans that 

14 constitute such trust or pool shall become 

15 the absolute property of the Bank subject 

16 only to the unsatisfied rights of the holders 

17 of the securities based on and backed by 

18 such trust or pool. 

19 ‘‘(v) EFFECT OF OTHER LAWS.—No 

20 State or local law, and no Federal law (ex21 cept Federal law enacted expressly in limi22 tation of this subparagraph after the effec23 tive date of this subparagraph), shall pre24 clude or limit the exercise by the Bank 

25 of— 


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1 ‘‘(I) its power to contract with 

2 the issuer on the terms stated in 

3 clause (iv); 

4 ‘‘(II) its rights to enforce any 

5 such contract with the issuer; or 

6 ‘‘(III) its ownership rights, as 

7 provided in clause (iv), in the loans 

8 constituting the trust or pool against 

9 which the guaranteed securities are 

10 issued. 

11 ‘‘(5) TRUSTS.—The Bank is authorized to cre12 ate, accept, execute, and otherwise administer in all 

13 respects trusts, receiverships, conservatorships, liqui14 dating or other agencies, or other fiduciary and rep15 resentative undertakings and activities, as appro16 priate for financing purposes. Instruments issued by 

17 the Bank pursuant to this section are, to the same 

18 extent as securities which are direct obligations of or 

19 obligations guaranteed as to principal or interest by 

20 the United States, exempt securities within the 

21 meaning of laws administered by the Securities and 

22 Exchange Commission. 

23 ‘‘(6) FEES.—In addition to fees authorized 

24 under paragraph (4)(B)(ii), the Bank shall assess 

25 reasonable fees on its activities, including loans, loan 


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1 guarantees, insurance, portfolio insurance, and other 

2 forms of financing support or risk management it 

3 provides so as to cover its reasonable costs and ex4 penses, consistent with the Federal Credit Reform 

5 Act of 1990 (2 U.S.C. 661 et seq.), provided the 

6 Bank operates as a not-for-profit entity. 

7 ‘‘(7) APPROPRIATIONS AND RETENTION OF RE8 CEIPTS.—For purposes of the Federal Credit Re9 form Act, funds made available to the Green Bank 

10 pursuant to section 3102A for carrying out this sec11 tion are appropriated to the Green Bank for the 

12 purposes described in the section. Receipts collected 

13 by the Green Bank, consistent with the Federal 

14 Credit Reform Act, shall be considered to have been 

15 provided in advance in an appropriations act, and 

16 shall remain available to the Green Bank until ex17 pended. 

18 ‘‘(8) ENVIRONMENTAL REVIEW.—In providing 

19 any financing support under this section, the Bank 

20 may, with the concurrence of the Council on Envi21 ronmental Quality, adopt by reference and rely on 

22 any applicable categorical exclusion or environmental 

23 review promulgated by any other Federal Agency 

24 pursuant to the National Environmental Policy Act 

25 of 1969 (Public Law 91–190). 


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1 ‘‘(9) IMMUNITY FROM IMPAIRMENT, LIMITA2 TION, OR RESTRICTION.— 

3 ‘‘(A) IN GENERAL.—All rights and rem4 edies of the Bank shall be immune from impair5 ment, limitation, or restrictions by or under— 

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

7 by Congress expressly in limitation of this 

8 paragraph) that becomes effective after the 

9 acquisition by the Bank of the subject or 

10 property on, under, or with respect to 

11 which the right or remedy arises or exists 

12 or would so arise or exist in the absence of 

13 the law; or 

14 ‘‘(ii) any administrative or other ac15 tion that becomes effective after the acqui16 sition. 

17 ‘‘(B) STATE LAW.—The Bank may con18 duct its business without regard to any quali19 fication or law of any State relating to incorpo20 ration. 

21 ‘‘(10) TAXATION.— 

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graph (B), the Bank (including its activities, 

24 capital, reserves, surplus and income) shall be 


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1 exempt from all taxation imposed by any State 

2 or local political subdivision of a State. 

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

4 of the Bank shall be subject to taxation by a 

5 State or political subdivision of a State to the 

6 same extent according to the value of the real 

7 property as other real property is taxed. 

8 ‘‘(11) POWER TO REMOVE; JURISDICTION.— 

9 Notwithstanding any other provision of law, any civil 

10 action, suit, or proceeding to which the Bank is a 

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

12 United States, and the United States district courts 

13 shall have original jurisdiction. The Bank may, with14 out bond or security, remove any such action, suit, 

15 or proceeding from a State court to a United States 

16 district court or to the United States District Court 

17 for the District of Columbia. 

18 ‘‘(12) SPENDING SAFEGUARDS.— 

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

20 Officer of the Bank— 

21 ‘‘(i) shall require any entity receiving 

22 financing support (including a loan, loan 

23 guarantee, debt securitization, insurance, 

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1 suant to this section to report quarterly, in 

2 a format specified by the Chief Executive 

3 Officer, on such entity’s use of such sup4 port and its progress fulfilling the objec5 tives for which such support was granted, 

6 and the Chief Executive Officer shall make 

7 these reports available to the public; 

8 ‘‘(ii) may establish additional report9 ing and information requirements for any 

10 recipient of financing support made avail11 able pursuant to this section; 

12 ‘‘(iii) shall establish appropriate mech13 anisms to ensure appropriate use and com14 pliance with all terms of any financing 

15 support made available pursuant to this 

16 section; 

17 ‘‘(iv) may, in addition to and con18 sistent with any other authority under ap19 plicable law, deobligate financing support 

20 made available pursuant to this section to 

21 entities that demonstrate an insufficient 

22 level of performance, or wasteful or fraud23 ulent spending, as defined in advance by 

24 the Chief Executive Officer, and award 


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1 these funds competitively to new or exist2 ing applicants consistent with this section; 

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

4 searchable database, accessible on the 

5 Internet (or successor protocol) at no cost 

6 to the public, that contains at least— 

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

8 applied for a loan, loan guarantee, in9 surance, portfolio insurance, or other 

10 forms of financing support or risk 

11 management under this section; 

12 ‘‘(II) a description of each appli13 cation; 

14 ‘‘(III) the status of each such ap15 plication; 

16 ‘‘(IV) the name of each entity re17 ceiving funds made available pursuant 

18 to this section; 

19 ‘‘(V) the purpose for which such 

20 entity is receiving such funds; 

21 ‘‘(VI) each quarterly report sub22 mitted by the entity pursuant to this 

23 section; and 

24 ‘‘(VII) such other information 

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1 stand and monitor loans, loan guaran2 tees, insurance, portfolio insurance, 

3 and other forms of financing support 

4 or risk management provided under 

5 this section; 

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

7 maintained under clause (v) shall be used 

8 to inform private capital markets, includ9 ing the development of underwriting stand10 ards for the financing of clean energy 

11 projects and energy efficiency projects; 

12 ‘‘(vii) shall make all financing trans13 actions available for public inspection, in14 cluding formal annual reviews by both a 

15 private auditor and the Comptroller Gen16 eral; and 

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

18 receive public comment in writing on the 

19 activities of the Bank. 

20 ‘‘(B) PROTECTION OF CONFIDENTIAL

21 BUSINESS INFORMATION.—To the extent nec22 essary and appropriate, the Chief Executive Of23 ficer may redact any information regarding ap24 plicants and borrowers to protect confidential 

25 business information. 


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1 ‘‘(13) GUARANTEE.—Except as provided in sec2 tion 3102A(e) with respect to Green Bonds, finan3 cial support provided by the Bank shall not be fully 

4 and unconditionally guaranteed by the United 

5 States.’’. 

6 SEC. 3. CONFORMING AMENDMENTS. 

7 (a) TAX EXEMPT STATUS.—Subsection (l) of section 

8 501 of the Internal Revenue Code of 1986 is amended by 

9 adding at the end the following: 

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

11 9801 of title 31, United States Code.’’. 

12 (b) WHOLLY OWNED GOVERNMENT CORPORA13 TION.—Paragraph (3) of section 9101 of title 31, United 

14 States Code, is amended by adding at the end the fol15 lowing: 

16 ‘‘(S) the Green Bank.’’. 

17 (c) CLERICAL AMENDMENTS.— 

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

19 31, United States Code, is amended by inserting 

20 after the item relating to section 3102 the following 

21 new item: 

‘‘3102A. Green bonds.’’. 

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

23 31, United States Code, is amended by adding at 

24 the end the following new item: 

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


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1 SEC. 4. DEFER DEDUCTION OF INTEREST EXPENSE RE2 LATED TO DEFERRED INCOME. 

3 (a) IN GENERAL.—Section 163 of the Internal Rev4 enue Code of 1986 (relating to deductions for interest ex5 pense) is amended by redesignating subsection (n) as sub6 section (o) and by inserting after subsection (m) the fol7 lowing new subsection: 

8 ‘‘(n) DEFERRAL OF DEDUCTION FOR INTEREST EX9 PENSE RELATED TO DEFERRED INCOME.— 

10 ‘‘(1) GENERAL RULE.—In the case of any tax11 payer, the amount of foreign-related interest expense 

12 allowed as a deduction under this chapter for any 

13 taxable year shall not exceed an amount that bears 

14 the same ratio to the sum of the foreign-related in15 terest expense for such year and the deferred for16 eign-related interest expense as the current inclusion 

17 ratio. 

18 ‘‘(2) TREATMENT OF DEFERRED DEDUC19 TIONS.—If, for any taxable year— 

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

21 to the sum of the foreign-related interest ex22 pense for such year and the deferred foreign-re23 lated interest expense as the current inclusion 

24 ratio, exceeds 

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

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1 tion for such year an amount equal to the lesser 

2 of such excess and the deferred foreign-related 

3 interest expense. 

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

5 purposes of this subsection— 

6 ‘‘(A) FOREIGN-RELATED INTEREST EX7 PENSE.—The term ‘foreign-related interest ex8 pense’ means, for any taxable year, an amount 

9 of interest expense for such taxable year allo10 cated and apportioned under sections 861 and 

11 864(e) to income from sources outside the 

12 United States which bears the same proportion 

13 to such interest expense as the value of all 

14 stock held by the taxpayer in all section 902 

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

16 with respect to which the taxpayer meets the 

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

18 of section 902 bears to the value of all assets 

19 of the taxpayer which generate gross income 

20 from sources outside the United States. 

21 ‘‘(B) DEFERRED FOREIGN-RELATED IN22 TEREST EXPENSE.—The term ‘deferred foreign23 related interest expense’ means the excess, if 

24 any, of the aggregate foreign-related interest 

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1 gregate amount allowed as a deduction under 

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

3 years. 

4 ‘‘(C) VALUE OF ASSETS.—Except as other5 wise provided by the Secretary, for purposes of 

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

7 be the amount with respect to such asset used 

8 as determined for purposes of allocating and 

9 apportioning interest expense under sections 

10 861 and 864(e). 

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

12 term ‘current inclusion ratio’ means, with re13 spect to any domestic corporation which meets 

14 the ownership requirements of subsection (a) or 

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

16 section 902 corporations for any taxable year, 

17 the ratio (expressed as a percentage) of— 

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

19 by the domestic corporation from a section 

20 902 corporation during the taxable year 

21 plus amounts includible in gross income 

22 under section 951(a) from such section 

23 902 corporation, in each case computed 

24 without regard to section 78, divided by 


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1 ‘‘(ii) the aggregate amount of post2 1986 undistributed earnings for the tax3 able year. 

4 ‘‘(E) AGGREGATE AMOUNT OF POST-1986

5 UNDISTRIBUTED EARNINGS.—The term ‘aggre6 gate amount of post-1986 undistributed earn7 ings’ means, with respect to any domestic cor8 poration which meets the ownership require9 ments of subsection (a) or (b) of section 902 

10 with respect to one or more section 902 cor11 porations, the domestic corporation’s pro rata 

12 share of the post-1986 undistributed earnings 

13 (as defined in section 902(c)(1)) of all such sec14 tion 902 corporations. 

15 ‘‘(F) FOREIGN CURRENCY CONVERSION.— 

16 For purposes of determining the current inclu17 sion ratio, and except as otherwise provided by 

18 the Secretary, the aggregate amount of post19 1986 undistributed earnings for the taxable 

20 year shall be determined by translating each 

21 section 902 corporation’s post-1986 undistrib22 uted earnings into dollars using the average ex23 change rate for such year. 

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

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1 filiated group (as defined in section 864(e)(5)(A)) 

2 shall be determined as if all members of such group 

3 were a single corporation. 

4 ‘‘(5) APPLICATION TO SEPARATE CATEGORIES

5 OF INCOME.—This subsection shall be applied sepa6 rately with respect to the categories of income speci7 fied in section 904(d)(1). 

8 ‘‘(6) REGULATIONS.—The Secretary may pre9 scribe such regulations or other guidance as is nec10 essary or appropriate to carry out the purposes of 

11 this subsection, including regulations or other guid12 ance providing— 

13 ‘‘(A) for the proper application of this sub14 section with respect to changes in ownership of 

15 a section 902 corporation, 

16 ‘‘(B) that certain corporations that other17 wise would not be members of the affiliated 

18 group will be treated as members of the affili19 ated group for purposes of this subsection, 

20 ‘‘(C) for the proper application of this sub21 section with respect to the taxpayer’s share of 

22 a deficit in earnings and profits of a section 

23 902 corporation, 

24 ‘‘(D) for appropriate adjustments to the 

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1 tion 902 corporation for purposes of this sub2 section or to the foreign-related interest expense 

3 to account for income that is subject to tax 

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

5 ‘‘(E) for the proper application of this sub6 section with respect to interest expense that is 

7 directly allocable to income with respect to cer8 tain assets.’’. 

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

10 this section shall apply to taxable years beginning on or 

11 after January 1, 2015. 

Æ 


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