I 
114TH CONGRESS 
2D SESSION 
H. R. 5802 
To amend title 31, United States Code, to provide for the issuance of 
Green Bonds and to establish the United States Green Bank, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2016 
Mr. VAN HOLLEN (for himself, Mr. BLUMENAUER, Mr. HIMES, Mr. CON-
NOLLY, Ms. NORTON, Mr. CARTWRIGHT, Mr. TONKO, and Ms. ESTY) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on Energy and Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend title 31, United States Code, to provide for the 
issuance of Green Bonds and to establish the United 
States Green Bank, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CAPITALIZATION, METHOD OF CAPITAL STOCK 
PAYMENTS, ISSUANCE OF GREEN BONDS. 
Chapter 31 of title 31, United States Code, is amend-
ed by adding after section 3102 the following new section: 
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‘‘§ 3102A. Green Bonds 
‘‘(a) INITIAL CAPITALIZATION.—The Secretary of the 
Treasury shall issue bonds (in this section referred to as 
‘Green Bonds’) in the amount of $10,000,000,000 on the 
credit of the United States to acquire capital stock of the 
United States Green Bank (established under section 
9801 of this title). Stock certificates evidencing ownership 
in the United States Green Bank shall be issued by the 
Green Bank to the Secretary of the Treasury, to the ex-
tent of payments made for the capital stock of the Green 
Bank. 
‘‘(b) FUTURE CAPITALIZATION.—Upon the request 
of the United States Green Bank, the Secretary of the 
Treasury shall issue additional Green Bonds on the credit 
of the United States to acquire additional capital stock 
of the United States Green Bank in an aggregate amount 
not to exceed $50,000,000,000 outstanding at any one 
time. 
‘‘(c) 
DENOMINATIONS
AND
MATURITY.—Green 
Bonds shall be in such forms and denominations, and shall 
mature within such periods, as determined by the Sec-
retary of the Treasury. 
‘‘(d) INTEREST.—Green Bonds shall bear interest at 
a rate not less than the current average yield on out-
standing market obligations of the United States of com-
parable maturity during the month preceding the issuance 
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of the obligation as determined by the Secretary of the 
Treasury. 
‘‘(e) GUARANTEED.—Green Bonds shall be fully and 
unconditionally guaranteed both as to interest and prin-
cipal by the United States, and such guaranty shall be 
expressed on the face of each bond. 
‘‘(f) LAWFUL INVESTMENTS.—Green Bonds shall be 
lawful investments, and may be accepted as security for 
all fiduciary, trust, and public funds, the investment or 
deposit of which shall be under the authority or control 
of the United States or any officer or officers thereof.’’. 
SEC. 2. GREEN BANK. 
Title 31, United States Code, is amended by adding 
the following new chapter at the end thereof: 
‘‘CHAPTER 98—GREEN BANK 
‘‘§ 9801. United States Green Bank 
‘‘(a) SHORT TITLE.—This section may be cited as the 
‘United States Green Bank Act of 2016’. 
‘‘(b) PURPOSES.—The purposes of this section are as 
follows: 
‘‘(1) To significantly increase the pace and 
amount of investment in clean energy and energy ef-
ficiency projects at the State and local level. 
‘‘(2) To improve the standard of living for 
Americans by delivering clean electricity more effi-
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ciently and at lower cost and by funding projects 
that will create high-paying, long-term jobs. 
‘‘(3) To address the main impediment to invest-
ment at the State and local level—limited capital 
and tight balance sheets—by establishing a national 
Green Bank to capitalize legitimate Regional, State, 
and Municipal Green Banks. 
‘‘(4) To facilitate— 
‘‘(A) efficient tax equity markets for quali-
fied clean energy projects; and 
‘‘(B) the financing of long-term clean en-
ergy purchasing by governmental and non-
governmental not-for-profit entities. 
‘‘(5) To foster— 
‘‘(A) the development and consistent appli-
cation of transparent underwriting standards, 
standard contractual terms, and measurement 
and verification protocols for qualified clean en-
ergy projects and qualified energy efficiency 
projects; 
‘‘(B) the creation of performance data that 
enables effective underwriting, risk manage-
ment, and pro forma modeling of financial per-
formance of qualified clean energy projects and 
qualified energy efficiency projects to support 
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primary financing markets and stimulate devel-
opment of secondary investment markets for 
clean energy projects and energy efficiency 
projects; and 
‘‘(C) the level of financing support for 
qualified clean energy projects and qualified en-
ergy efficiency projects necessary to advance 
vital national objectives, including— 
‘‘(i) achieving energy independence 
from foreign energy sources; 
‘‘(ii) abating climate change by in-
creasing zero or low carbon electricity gen-
eration and transportation capabilities; 
‘‘(iii) realizing energy efficiency poten-
tial in existing infrastructure; 
‘‘(iv) easing the economic effects of 
transitioning from a carbon-based economy 
to a clean energy economy; 
‘‘(v) achieving job creation through 
the construction and operation of qualified 
clean energy projects and qualified energy 
efficiency projects; 
‘‘(vi) fostering long-term domestic 
manufacturing capacity in the clean energy 
and energy efficiency industries; and 
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‘‘(vii) 
complementing 
and 
supplementing other clean energy and en-
ergy efficiency legislation at the regional, 
State, municipal, and county level. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) BANK.—The term ‘Bank’ means the 
United States Green Bank established under sub-
section (d). 
‘‘(2) BOARD.—The term ‘Board’ means the 
Board of Directors of the Bank. 
‘‘(3) CLEAN
ENERGY
PROJECT.—The term 
‘clean energy project’ means any electricity genera-
tion, transmission, storage, heating, cooling, trans-
portation, distribution, industrial process, or manu-
facturing project whose primary purpose is the de-
ployment, development, or production of an energy 
system or technology that avoids, reduces, or seques-
ters air pollutants or anthropogenic greenhouse 
gases, including the following: 
‘‘(A) Solar. 
‘‘(B) Wind. 
‘‘(C) Geothermal. 
‘‘(D) Biomass. 
‘‘(E) Hydropower. 
‘‘(F) Ocean and hydrokinetic. 
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‘‘(G) Fuel cell. 
‘‘(H) Advanced battery. 
‘‘(I) Carbon capture and sequestration. 
‘‘(J) 
Next 
generation 
biofuels 
from 
nonfood feedstocks. 
‘‘(K) Alternative vehicle fuel infrastruc-
ture. 
‘‘(L) Alternative fuel vehicles. 
‘‘(4) ELIGIBLE CLEAN ENERGY FINANCING IN-
STITUTION.—The term ‘Eligible Clean Energy Fi-
nancing Institution’ means a not-for-profit, inde-
pendent entity, quasi-independent entity, or a gov-
ernmental entity within an agency or financing au-
thority, established or designated by a State, group 
of States, the District of Columbia, or an Eligible 
State Political Subdivision to— 
‘‘(A) provide low-cost or long-term financ-
ing support or credit enhancements, including 
loan guarantees and loan loss reserves, for 
Qualified Clean Energy Projects or Qualified 
Energy Efficiency Projects; and 
‘‘(B) create liquid markets for these 
projects 
including 
warehousing 
and 
securitization, or take other steps to reduce fi-
nancial barriers to the deployment of existing 
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and innovative clean energy and energy effi-
ciency projects. Eligible Clean Energy Financ-
ing Institutions may enter into partnerships 
with private entities. 
‘‘(5) ELIGIBLE
STATE
POLITICAL
SUBDIVI-
SION.—The term ‘Eligible State Political Subdivi-
sion’ shall mean any municipality, county or other 
political subdivision within a State that, based on 
the population data from the most recent U.S. Cen-
sus Bureau, meets one of the following criteria: 
‘‘(A) A municipality with a population of 
no less than 200,000 people. 
‘‘(B) A county, parish or borough with a 
population of no less than 800,000 people. 
‘‘(C) A municipality, county, parish, or 
borough with a population— 
‘‘(i) of no less than 84,000 people; 
and 
‘‘(ii) that constitutes no less than 5 
percent of that State’s total population. 
‘‘(6) ENERGY EFFICIENCY PROJECT.—The term 
‘energy efficiency project’ means any project, tech-
nology, function, or measure that results in the re-
duction of energy use required to achieve the same 
level of service or output prior to the application of 
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such project, technology, function, or measure, or 
substantially reduces greenhouse gas emissions rel-
ative to emissions that would have occurred prior to 
the application of such project, technology, function, 
or measure. 
‘‘(7) GREEN BOND.—The term ‘Green Bond’ 
means a bond issued pursuant to section 3102A of 
this title. 
‘‘(8) QUALIFIED
CLEAN
ENERGY
PROJECT.— 
The term ‘qualified clean energy project’ means a 
clean energy project that— 
‘‘(A) is a Clean Energy Project carried out 
domestically within the territorial borders of the 
United States; 
‘‘(B) stays current on interest and debt 
payment obligations; 
‘‘(C) to the extent otherwise required by 
law, pays wages in accordance with subchapter 
IV of chapter 31 of title 40, United States Code 
(commonly referred to as the Davis-Bacon Act); 
‘‘(D) if for nuclear power, is funded by the 
Bank only after all other existing Federal fi-
nancial support has been expended; 
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‘‘(E) if for Alternative fuel vehicles, is for 
the purchase or lease of eligible vehicles and not 
the design or manufacture thereof; and 
‘‘(F) satisfies any other conditions estab-
lished by the Bank and published in the Fed-
eral Register. 
‘‘(9) 
QUALIFIED
ENERGY
EFFICIENCY 
PROJECT.—The term ‘qualified energy efficiency 
project’ means an energy efficiency project, includ-
ing smart grid technologies and functions character-
ized in section 1301 of the Energy Independence 
and Security Act of 2007 and end-use technologies 
for efficiency gains in new construction and across 
existing infrastructure that— 
‘‘(A) is an Energy Efficiency Project car-
ried out domestically within the territorial bor-
ders of the United States; 
‘‘(B) stays current on interest and debt 
payment obligations; 
‘‘(C) to the extent otherwise required by 
law, pays wages in accordance with subchapter 
IV of chapter 31 of title 40, United States Code 
(commonly referred to as the Davis-Bacon Act); 
and 
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‘‘(D) satisfies any other conditions estab-
lished by the Bank and published in the Fed-
eral Register. 
‘‘(d) GREEN BANK.— 
‘‘(1) ESTABLISHMENT
OF
CORPORATION.— 
There is established a corporation to be known as 
the United States Green Bank that shall be wholly 
owned by the United States. 
‘‘(2) OVERSIGHT.—The Bank shall be subject 
to the general supervision and direction of the Sec-
retary of the Treasury. The Bank shall be an instru-
mentality of the United States Government and shall 
maintain such offices as may be necessary or appro-
priate in the conduct of its business. 
‘‘(3) CHARTER.—The Bank shall be chartered 
for 20 years from the date of enactment of this sec-
tion. 
‘‘(4) GOVERNANCE.— 
‘‘(A) BOARD
OF
DIRECTORS
OF
THE 
BANK.— 
‘‘(i) IN GENERAL.—The Bank shall be 
under the direction of a Board of Directors 
consisting of seven members and be subject 
to the general supervision and direction of 
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the Secretary of the Treasury as Chairman 
of the Board. 
‘‘(ii) MEMBERSHIP.—The Board shall 
consist of seven members, as follows: 
‘‘(I) The Secretary of the Treas-
ury or the Secretary’s designee as 
Chairman of the Board. 
‘‘(II) The Secretary of Energy or 
the Secretary’s designee. 
‘‘(III) The Secretary of Trans-
portation or the Secretary’s designee. 
‘‘(IV) Four members appointed 
by the President of the United States 
including a Chief Executive Officer, 
one member with expertise regarding 
renewable energy and/or energy effi-
ciency, one member with expertise re-
garding finance, one member with ex-
pertise regarding electric utilities, and 
one member with expertise regarding 
sustainable transportation. 
‘‘(iii) QUORUM.—Four members of 
the Board shall constitute a quorum. 
‘‘(iv) 
BYLAWS.—The 
Board 
shall 
adopt, and may amend, such bylaws as are 
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tional terms of service as members of the 
Board. 
‘‘(ix) CONTINUATION
OF
SERVICE.— 
Any member of the Board whose term has 
expired may continue to serve on the 
Board until the earlier of— 
‘‘(I) the date on which such 
member’s successor is appointed; or 
‘‘(II) the end of the 6-month pe-
riod beginning on the date such mem-
ber’s term expires. 
‘‘(x) CHAIRMAN.—The Board shall se-
lect a Chairman from among its members. 
‘‘(B) EXECUTIVE VICE PRESIDENT.—The 
Chief Executive Officer shall appoint an Execu-
tive Vice President who— 
‘‘(i) shall serve as Chief Executive Of-
ficer of the Bank during the absence or 
disability of, or in the event of a vacancy 
in the office, of Chief Executive Officer; 
and 
‘‘(ii) shall at other times perform such 
functions as the Chief Executive Officer 
may prescribe. 
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‘‘(C) POLICIES AND PROCEDURES.—At the 
request of any two members of the Board, the 
Chairman shall place an item pertaining to the 
policies or procedures of the Bank on the agen-
da for discussion by the Board. Not later than 
30 days after the date such a request is made, 
the Chairman shall hold a meeting of the Board 
at which such item shall be discussed. 
‘‘(D) CONFLICTS OF INTEREST.—No direc-
tor, officer, attorney, agent, or employee of the 
Bank shall in any manner, directly or indi-
rectly, participate in the deliberation upon, or 
the determination of, any question affecting 
such individual’s personal interests, or the in-
terests of any corporation, partnership, or asso-
ciation in which such individual is directly or 
indirectly personally interested. 
‘‘(5) HIRING AND CONTRACTING AUTHORITY.— 
‘‘(A) CONTRACTING.—The Bank may em-
ploy or otherwise contract with banks, credit 
agencies, attorneys, and other third parties at 
customary commercial rates. 
‘‘(B) HIRING.—Notwithstanding any oth-
erwise applicable Federal rules and regulations, 
the Bank may employ and otherwise contract 
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with employees and provide compensation to 
such employees at prevailing rates for com-
pensation for similar positions in private indus-
try. 
‘‘(6) SUNSET.— 
‘‘(A) EXPIRATION
OF
CHARTER.—The 
Bank shall continue to exercise its functions 
until all obligations and commitments of the 
Bank are discharged, even after its charter has 
expired. 
‘‘(B) PRIOR OBLIGATIONS.—No provisions 
of this subsection shall be construed as pre-
venting the Bank from— 
‘‘(i) acquiring obligations prior to the 
date of the expiration of its charter which 
mature subsequent to such date; 
‘‘(ii) assuming, prior to the date of 
the expiration of its charter, liability as 
guarantor, endorser, or acceptor of obliga-
tions which mature subsequent to such 
date; 
‘‘(iii) issuing, prior or subsequent to 
the date of the expiration of its charter, 
for purchase by the Secretary of the Treas-
ury or any other purchasers, its notes, de-
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bentures, bonds, or other obligations which 
mature subsequent to such date; or 
‘‘(iv) continuing as a corporation and 
exercising any of its functions subsequent 
to the date of the expiration of its charter 
for purposes of orderly liquidation, includ-
ing the administration of its assets and the 
collection of any obligations held by the 
Bank. 
‘‘(e) GREEN BANK ESTABLISHMENT FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a revolving fund, 
to be known as the ‘Green Bank Establishment 
Fund’ (hereinafter referred to as the ‘Fund’), con-
sisting of— 
‘‘(A) such amounts as are deposited in the 
Fund under this subtitle, including but not lim-
ited to proceeds from the Green Bonds issued 
under section 3102A; and 
‘‘(B) such sums as may be appropriated to 
supplement the Fund. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Fund 
such sums as are necessary to carry out this sub-
title. 
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‘‘(3) EXPENDITURES
FROM
THE
FUND.— 
Amounts in the Fund shall be available to the Chief 
Executive for obligation without fiscal year limita-
tion, to remain available until expended. 
‘‘(f) LENDING, FINANCING, EXPENDITURES.— 
‘‘(1) IN GENERAL.—The Bank shall establish a 
program to provide, on a competitive basis loans, 
loan guarantees or credit buy downs from the Fund, 
as the Bank determines appropriate, solely to pro-
vide capitalization to an Eligible Clean Energy Fi-
nancing Institution for the establishment or con-
tinuing operation of that entity. 
‘‘(2) REQUIREMENTS.—The Bank may only 
provide loans, loan guarantees or credit buy downs 
under paragraph (1) if— 
‘‘(A) APPLICATION.—The applicant sub-
mits an application for loans, loan guarantees 
or credit buy downs in accordance with applica-
tion criteria established by the Bank. 
‘‘(B) ELIGIBLE CLEAN ENERGY FINANCING 
INSTITUTIONS.—An entity is eligible to receive 
loans, loan guarantees or credit buy downs 
under this section only if it— 
‘‘(i) meets the definition of Eligible 
Clean Energy Financing Institution; 
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‘‘(ii) uses the funding from the Bank 
solely for the purposes described in this 
section; and 
‘‘(iii) satisfies the capitalization and 
funding requirements as described in this 
section. 
‘‘(C) PROJECT FINANCE.—The Bank shall 
not directly lend or otherwise provide financial 
products to any individual projects, nor shall it 
be required to examine individual projects for 
the purposes of lending under paragraph (1) 
other than as necessary to determine whether 
an applicant meets the criteria for Eligible 
Clean Energy Financing Institutions. 
‘‘(D) 
CAPITALIZATION
AND
CO-FUND-
ING.—The Eligible Clean Energy Financing In-
stitution— 
‘‘(i) must provide, at the time of re-
ceipt of any initial funding for capitaliza-
tion by the Bank, an amount from funding 
sources other than the Bank equivalent to 
no less than $1,000,000 and no less than 
20 percent of the total initial funding pro-
vided by the Bank; and 
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‘‘(ii) may not receive any subsequent 
funding for capitalization by the Bank, in 
addition to any initial funding for capital-
ization provided by the Bank in accordance 
with clause (i) above, of amounts greater 
than two times the amount of capital com-
mitted for use by the Eligible Clean En-
ergy Financing Institution for Qualified 
Clean Energy Projects and Qualified En-
ergy Efficiency Projects at the time of ap-
plication. 
‘‘(3) REGULATIONS.—The Bank shall establish 
regulations to carry out the activities and operations 
set out in this chapter. 
‘‘(g) LENDING ACTIVITIES.— 
‘‘(1) FEES.—The Bank shall assess reasonable 
fees on its activities so as to cover its reasonable 
costs and expenses, consistent with the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), 
provided the Bank operates as a not-for-profit enti-
ty. 
‘‘(2) APPROPRIATIONS AND RETENTION OF RE-
CEIPTS.—For purposes of the Federal Credit Re-
form Act, funds made available to the Green Bank 
pursuant to section 3102A for carrying out this sec-
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tion are appropriated to the Green Bank for the 
purposes described in the section. Receipts collected 
by the Green Bank, consistent with the Federal 
Credit Reform Act, shall be considered to have been 
provided in advance in an appropriations Act, and 
shall remain available to the Green Bank until ex-
pended. 
‘‘(3) IMMUNITY
FROM
IMPAIRMENT, LIMITA-
TION, OR RESTRICTION.— 
‘‘(A) IN GENERAL.—All rights and rem-
edies of the Bank shall be immune from impair-
ment, limitation, or restrictions by or under— 
‘‘(i) any law (other than a law enacted 
by Congress expressly in limitation of this 
paragraph) that becomes effective after the 
acquisition by the Bank 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 
‘‘(ii) any administrative or other ac-
tion that becomes effective after the acqui-
sition. 
‘‘(B) STATE LAW.—The Bank may con-
duct its business without regard to any quali-
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fication or law of any State relating to incorpo-
ration. 
‘‘(4) TAXATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Bank (including its activities, 
capital, reserves, surplus and income) shall be 
exempt from all taxation imposed by any State 
or local political subdivision of a State. 
‘‘(B) REAL PROPERTY.—Any real property 
of the Bank 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. 
‘‘(5) POWER TO REMOVE; JURISDICTION.—Not-
withstanding any other provision of law, any civil ac-
tion, suit, or proceeding to which the Bank is a 
party shall be deemed to arise under the laws of the 
United States, and the United States district courts 
shall have original jurisdiction. The Bank may, with-
out bond or security, remove any such action, suit, 
or proceeding from a State court to a United States 
district court or to the United States District Court 
for the District of Columbia. 
‘‘(6) SPENDING SAFEGUARDS.— 
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‘‘(A) IN GENERAL.—The Chief Executive 
Officer of the Bank— 
‘‘(i) shall require any Eligible Clean 
Energy Financing Institution receiving fi-
nancial support pursuant to this section to 
report quarterly, in a format specified by 
the Chief Executive Officer, on such enti-
ty’s use of such support and its progress 
fulfilling the objectives for which such sup-
port was granted, and the Chief Executive 
Officer shall make these reports available 
to the public; 
‘‘(ii) may establish additional report-
ing and information requirements for any 
recipient of financing support made avail-
able pursuant to this section; 
‘‘(iii) shall establish appropriate mech-
anisms to ensure appropriate use and com-
pliance with all terms of any financing 
support made available pursuant to this 
section; 
‘‘(iv) may, in addition to and con-
sistent with any other authority under ap-
plicable law, deobligate financing support 
made available pursuant to this section to 
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entities that demonstrate an insufficient 
level of performance, or wasteful or fraud-
ulent spending, as defined in advance by 
the Chief Executive Officer, and award 
these funds competitively to new or exist-
ing applicants consistent with this section; 
‘‘(v) shall create and maintain a fully 
searchable database, accessible on the 
Internet (or successor protocol) at no cost 
to the public, that contains at least— 
‘‘(I) a list of each entity that has 
applied for loans, loan guarantees or 
credit buy downs under this section; 
‘‘(II) a description of each appli-
cation; 
‘‘(III) the status of each such ap-
plication; 
‘‘(IV) the name of each entity re-
ceiving funds made available pursuant 
to this section; 
‘‘(V) the purpose for which such 
entity is receiving such funds; 
‘‘(VI) each quarterly report sub-
mitted by the entity pursuant to this 
section; and 
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‘‘(VII) information related to 
Qualifying Clean Energy Projects and 
Qualifying Energy Efficiency Projects 
funded by Eligible Clean Energy Fi-
nancing Institutions using funding re-
ceived from the Bank; 
‘‘(vi) to the extent practicable, data 
maintained under clause (v) shall be used 
to inform private capital markets, includ-
ing the development of underwriting stand-
ards for the financing of clean energy 
projects and energy efficiency projects; 
‘‘(vii) shall make all financing trans-
actions available for public inspection, in-
cluding formal annual reviews by both a 
private auditor and the Comptroller Gen-
eral; and 
‘‘(viii) shall at all times be available to 
receive public comment in writing on the 
activities of the Bank. 
‘‘(B) 
PROTECTION
OF
CONFIDENTIAL 
BUSINESS INFORMATION.—To the extent nec-
essary and appropriate, the Chief Executive Of-
ficer may redact any information regarding ap-
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plicants and borrowers to protect confidential 
business information. 
‘‘(7) GUARANTEE.—Except as provided in sec-
tion 3102A(e) with respect to Green Bonds, finan-
cial support provided by the Bank shall not be fully 
and unconditionally guaranteed by the United 
States.’’. 
SEC. 3. CONFORMING AMENDMENTS. 
(a) TAX EXEMPT STATUS.—Section 501(l) of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘(4) The Green Bank established under section 
9801 of title 31, United States Code.’’. 
(b) WHOLLY
OWNED
GOVERNMENT
CORPORA-
TION.—Section 9101(3) of title 31, United States Code, 
is amended by adding at the end the following: 
‘‘(S) the Green Bank.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) The table of sections for chapter 31 of title 
31, United States Code, is amended by inserting 
after the item relating to section 3102 the following 
new item: 
‘‘3102A. Green Bonds.’’. 
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(2) The table of chapters for subtitle VI of title 
31, United States Code, is amended by adding at 
the end the following new item: 
‘‘98. Green Bank ................................................................................ 9801’’. 
SEC. 4. DEFER DEDUCTION OF INTEREST EXPENSE RE-
LATED TO DEFERRED INCOME. 
(a) IN GENERAL.—Section 163 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) 
the following new subsection: 
‘‘(n) DEFERRAL OF DEDUCTION FOR INTEREST EX-
PENSE RELATED TO DEFERRED INCOME.— 
‘‘(1) GENERAL RULE.—In the case of any tax-
payer, the amount of foreign-related interest expense 
allowed as a deduction under this chapter for any 
taxable year shall not exceed an amount that bears 
the same ratio to the sum of the foreign-related in-
terest expense for such year and the deferred for-
eign-related interest expense as the current inclusion 
ratio. 
‘‘(2) 
TREATMENT
OF
DEFERRED
DEDUC-
TIONS.—If, for any taxable year— 
‘‘(A) the amount that bears the same ratio 
to the sum of the foreign-related interest ex-
pense for such year and the deferred foreign-re-
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lated interest expense as the current inclusion 
ratio, exceeds 
‘‘(B) the foreign-related interest expense 
for such year, there shall be allowed as a deduc-
tion for such year an amount equal to the lesser 
of such excess and the deferred foreign-related 
interest expense. 
‘‘(3) DEFINITIONS
AND
SPECIAL
RULE.—For 
purposes of this subsection— 
‘‘(A) FOREIGN-RELATED
INTEREST
EX-
PENSE.—The term ‘foreign-related interest ex-
pense’ means, for any taxable year, an amount 
of interest expense for such taxable year allo-
cated and apportioned under sections 861 and 
864(e) to income from sources outside the 
United States which bears the same proportion 
to such interest expense as the value of all 
stock held by the taxpayer in all section 902 
corporations (as defined in section 909(d)(5)) 
with respect to which the taxpayer meets the 
ownership requirements of subsection (a) or (b) 
of section 902 bears to the value of all assets 
of the taxpayer which generate gross income 
from sources outside the United States. 
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‘‘(B) DEFERRED
FOREIGN-RELATED
IN-
TEREST EXPENSE.—The term ‘deferred foreign- 
related interest expense’ means the excess, if 
any, of the aggregate foreign-related interest 
expense for all prior taxable years, over the ag-
gregate amount allowed as a deduction under 
paragraphs (1) and (2) for all prior taxable 
years. 
‘‘(C) VALUE OF ASSETS.—Except as other-
wise provided by the Secretary, for purposes of 
paragraph (3)(A)(i), the value of any asset shall 
be the amount with respect to such asset used 
as determined for purposes of allocating and 
apportioning interest expense under sections 
861 and 864(e). 
‘‘(D) CURRENT
INCLUSION
RATIO.—The 
term ‘current inclusion ratio’ means, with re-
spect to any domestic corporation which meets 
the ownership requirements of subsection (a) or 
(b) of section 902 with respect to one or more 
section 902 corporations for any taxable year, 
the ratio (expressed as a percentage) of— 
‘‘(i) the sum of all dividends received 
by the domestic corporation from a section 
902 corporation during the taxable year 
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plus amounts includible in gross income 
under section 951(a) from such section 
902 corporation, in each case computed 
without regard to section 78, divided by 
‘‘(ii) the aggregate amount of post- 
1986 undistributed earnings for the tax-
able year. 
‘‘(E) AGGREGATE AMOUNT OF POST-1986 
UNDISTRIBUTED EARNINGS.—The term ‘aggre-
gate amount of post-1986 undistributed earn-
ings’ means, with respect to any domestic cor-
poration which meets the ownership require-
ments of subsection (a) or (b) of section 902 
with respect to one or more section 902 cor-
porations, the domestic corporation’s pro rata 
share of the post-1986 undistributed earnings 
(as defined in section 902(c)(1)) of all such sec-
tion 902 corporations. 
‘‘(F) FOREIGN CURRENCY CONVERSION.— 
For purposes of determining the current inclu-
sion ratio, and except as otherwise provided by 
the Secretary, the aggregate amount of post- 
1986 undistributed earnings for the taxable 
year shall be determined by translating each 
section 902 corporation’s post-1986 undistrib-
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uted earnings into dollars using the average ex-
change rate for such year. 
‘‘(4) TREATMENT
OF
AFFILIATED
GROUPS.— 
The current inclusion ratio of each member of an af-
filiated group (as defined in section 864(e)(5)(A)) 
shall be determined as if all members of such group 
were a single corporation. 
‘‘(5) APPLICATION TO SEPARATE CATEGORIES 
OF INCOME.—This subsection shall be applied sepa-
rately with respect to the categories of income speci-
fied in section 904(d)(1). 
‘‘(6) REGULATIONS.—The Secretary may pre-
scribe such regulations or other guidance as is nec-
essary or appropriate to carry out the purposes of 
this subsection, including regulations or other guid-
ance providing— 
‘‘(A) for the proper application of this sub-
section with respect to changes in ownership of 
a section 902 corporation, 
‘‘(B) that certain corporations that other-
wise would not be members of the affiliated 
group will be treated as members of the affili-
ated group for purposes of this subsection, 
‘‘(C) for the proper application of this sub-
section with respect to the taxpayer’s share of 
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