I
107TH CONGRESS
1ST SESSION
H. R. 2774
To establish a loan guarantee program for renewable energy source facilities.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 2001
Mr. LARSEN of Washington (for himself and Ms. BERKLEY) introduced the
following bill; which was referred to the Committee on Financial Services
A BILL
To establish a loan guarantee program for renewable energy
source facilities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Renewable Energy
Loan Guarantee Act of 2001’’.
SEC. 2. RENEWABLE ENERGY SOURCE LOAN GUARANTEES.
(a) DEFINITIONS.—For purposes of this section:
(1) BOARD.—The term ‘‘Board’’ means the
Loan Guarantee Board established by subsection
(b)(2).
(2) INCREMENTAL
HYDROPOWER.—The term
‘‘incremental hydropower’’ means additional gener-
ating capacity achieved from increased efficiency at
a non-Federal hydroelectric facility in existence on
January 1, 2001, and licensed by the Federal En-
ergy Regulatory Commission.
(3) PROGRAM.—The term ‘‘Program’’ means
the Renewable Energy Source Facility Guaranteed
Loan Program established by subsection (b)(1).
(4) QUALIFIED RENEWABLE ENERGY SOURCE
FACILITY.—The term ‘‘qualified renewable energy
source facility’’ means a facility that generates elec-
tric energy for sale in, or affecting, interstate com-
merce using solar, wind, biomass, landfill gas, incre-
mental hydropower, or geothermal energy.
(b) RENEWABLE ENERGY SOURCE FACILITY GUAR-
ANTEED LOAN PROGRAM.—
(1) IN GENERAL.—There is established the Re-
newable Energy Source Facility Guaranteed Loan
Program, the purpose of which shall be to provide
loan guarantees for qualified renewable energy
source facilities in accordance with this section.
(2) LOAN GUARANTEE BOARD.—There is estab-
lished to administer the Program a Loan Guarantee
Board, to be composed of—
(A) the Secretary of Energy, or the Sec-
retary’s designee, who shall serve as Chairman
of the Board;
(B) the Secretary of Commerce, or the
Secretary’s designee;
(C) the Chairman of the Board of Gov-
ernors of the Federal Reserve System, or the
Chairman’s designee; and
(D) the Secretary of the Treasury, or the
Secretary’s designee.
(c) AUTHORITY.—
(1) IN GENERAL.—The Program may guarantee
loans provided for qualified renewable energy source
facilities by private banking and investment institu-
tions in accordance with procedures, rules, and regu-
lations established by the Board. The Board shall
ensure that small businesses receive an appropriate
amount and number of loan guarantees under the
Program, consistent with applicable laws and goals
for small business participation in Federal pro-
grams.
(2) TOTAL GUARANTEE LIMIT.—The aggregate
amount of loans guaranteed and outstanding at any
one time under this section shall not exceed
$750,000,000.
(3) EXPEDITIOUS ACTION ON APPLICATIONS.—
The Board shall approve or deny an application for
a guarantee under this section as soon as practicable
after receipt of an application.
(d) REQUIREMENTS FOR LOAN GUARANTEES.—The
Board may issue a loan guarantee on application by the
owner or operator of a qualified renewable energy source
facility under an agreement by a private bank or invest-
ment company to provide a loan for the qualified renew-
able energy source facility, if the Board determines that—
(1) credit is not otherwise available to the
owner or operator under reasonable terms or condi-
tions sufficient to meet its financing needs, as re-
flected in the financial and business plans of the
owner or operator;
(2) the prospective earning power of the owner
or operator of the facility, together with the char-
acter and value of the security pledged, provide a
reasonable assurance of repayment of the loan to be
guaranteed in accordance with its terms; and
(3) the loan to be guaranteed bears interest at
a rate determined by the Board to be reasonable,
taking into account the current average yield on out-
standing obligations of the United States with re-
maining periods of maturity comparable to the ma-
turity of the loan.
(e) TERMS
AND CONDITIONS
OF LOAN GUARAN-
TEES.—
(1) LOAN
DURATION.—All loans guaranteed
under this section shall be repayable in full not later
than December 31, 2025, and the terms and condi-
tions of each such loan shall provide that the loan
agreement may not be amended, or any provision of
the loan agreement waived, without the consent of
the Board.
(2) LOAN SECURITY.—A commitment to issue a
loan guarantee under this section shall contain such
affirmative and negative covenants and other protec-
tive provisions as the Board determines are appro-
priate. The Board shall require security for the
loans to be guaranteed under this section at the time
at which the commitment is made.
(3) FEES.—The owner or operator of a quali-
fied renewable energy source facility receiving a loan
guarantee under this section shall pay a fee to the
Department of the Treasury to cover costs of the
Program, but in no event shall such fee exceed an
amount equal to 0.5 percent of the outstanding prin-
cipal balance of the guaranteed loan.
(4) AUDITS.—The General Accounting Office
shall audit, before issuance of a loan guarantee
under this section, and once every 2 years while the
guaranteed loan is outstanding, the owner or oper-
ator of the facility with respect to which the loan
guarantee is issued.
(f) REPORTS.—During each fiscal year until each
guaranteed loan has been repaid in full, the Secretary of
Energy shall submit to Congress a report on the activities
of the Board.
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