I 
110TH CONGRESS 
2D SESSION 
H. R. 7018 
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 HOUSE OF REPRESENTATIVES 
SEPTEMBER 23, 2008 
Mr. INSLEE (for himself, Mr. ISRAEL, Mr. PERLMUTTER, and Mr. KLEIN of 
Florida) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committees on 
Financial Services and Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
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 Representa-
tives 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’’. 
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SEC. 2. PURPOSE. 
The purpose of this Act is to promote the domestic 
development and deployment of the advanced, clean en-
ergy 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 mar-
ket for clean energy technology deployment loans; 
and 
(2) the cooperation and support of the private 
capital market in order to promote access to afford-
able debt financing for accelerated deployment of ad-
vanced 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— 
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(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 tech-
nical risk by the commercial financial sector. 
(4) CLEAN ENERGY TECHNOLOGY.—The term 
‘‘clean energy technology’’ means a technology re-
lated 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 en-
ergy supplies by using existing energy supplies 
with greater efficiency or by transmitting en-
ergy with greater effectiveness through United 
States energy infrastructure; 
(B) to diversify the sources of energy sup-
ply 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 Cor-
poration established by section 5. 
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(6) NATIONAL LABORATORY.—The term ‘‘Na-
tional 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 Sec-
retary— 
(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. 
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(11) TECHNOLOGY
RISK.—The term ‘‘tech-
nology 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 es-
tablish 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 manufac-
turing 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 en-
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ergy 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 tech-
nologies so that the United States will become a 
world leader in sustainable production of the mate-
rials; 
(9) a robust, efficient, and interactive electricity 
transmission grid that will allow for the implementa-
tion of clean energy technologies, distributed genera-
tion, and demand-response in each State; and 
(10) such other goals as the Secretary and Ad-
visory 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 per-
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formance of the Corporation toward supporting the de-
ployment 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 stor-
age from electricity generation capturing at least 
10,000,000 short tons per year by 2015; 
(2) solar photovoltaic systems with a power pro-
duction 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 kilo-
watts 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 genera-
tion capacity with a power production cost of 5 cents 
per kilowatt-hour by 2023; 
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(6) technologies to realize a 20 percent im-
provement in energy intensity by energy-intensive in-
dustries by 2020; and 
(7) advanced energy systems to achieve net-zero 
energy use in new residential and commercial build-
ings by 2025 through a 60 percent-reduction in 
building energy use. 
(d) PORTFOLIO REQUIREMENT.—To the extent prac-
ticable and consistent with the purpose of this Act, not 
less than 75 percent of the support provided by the Cor-
poration under this section shall be for breakthrough tech-
nologies. 
(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 tech-
nology 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 CORPORA-
TION. 
(a) ESTABLISHMENT.— 
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(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 ac-
tions, be considered to be a resident of the 
District of Columbia. 
(B) OTHER AGENCIES AND OFFICES.—The 
Corporation may establish other agencies or of-
fices in such other places as the Corporation 
considers necessary or appropriate for the con-
duct of the business of the Corporation. 
(b) BOARD OF DIRECTORS.— 
(1) IN GENERAL.—The Board of Directors shall 
consist of— 
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(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 fi-
nancial services relevant to the operations 
of the Corporation, including— 
(I) at least 1 individual with sub-
stantial experience in the development 
of energy projects; 
(II) at least 1 individual with ex-
perience in the electric utility indus-
try; 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. 
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(4) COMPENSATION; TRAVEL
EXPENSES.—A 
member of the Board of Directors shall not be com-
pensated 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 em-
ployee 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 Di-
rectors. 
(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 Ad-
visory Council shall— 
(A) have relevant scientific expertise; and 
(B) include representatives of— 
(i) the academic community; 
(ii) the private research community; 
and 
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(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 tech-
nologies 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 com-
petitiveness of the United States in pro-
viding energy technologies likely to be in 
demand throughout the world; 
(iii) the potential benefits of the 
project or clean energy technology in avert-
ing 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 
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meet the technology deployment goals estab-
lished by the Secretary; and 
(C) set risk and default rate targets for in-
dividual technologies, such that the maximum 
practicable ratio of breakthrough technologies 
to novel technologies is developed. 
(4) TERM.— 
(A) IN GENERAL.—Members of the Advi-
sory 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 Advi-
sory Council shall serve without compensation but 
shall be allowed travel expenses, including per diem 
in lieu of subsistence, at rates authorized for an em-
ployee 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. 
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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 tech-
nologies. 
(b) DISPOSITION OF DEBT OR INTEREST.—The Cor-
poration 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 estab-
lish 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 clas-
sify 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 ex-
tent practicable, sellers will be able to determine the eligi-
bility 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 
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private sector entities to develop debt instruments that ag-
gregate 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 deter-
mine— 
(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 Cor-
poration. 
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(2) OBJECTIVES.—Determinations under para-
graph (1) shall be consistent with the objectives of— 
(A) providing an attractive investment en-
vironment for clean energy technologies; 
(B) making the operations of the Corpora-
tion 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. 
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(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 prac-
ticable (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 li-
quidity, 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 
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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 Sec-
retary of the Treasury shall not purchase any obligations 
under this section if the purchase would increase the ag-
gregate 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, tak-
ing 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 obli-
gations acquired by the Secretary under this section. 
(f) PUBLIC DEBT TRANSACTIONS.—All redemptions, 
purchases, and sales by the Secretary of the Treasury of 
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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 re-
striction by or under— 
(A) any law (other than a law enacted by 
Congress expressly in limitation of this para-
graph) that becomes effective after the acquisi-
tion by the Corporation of the subject or prop-
erty 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 con-
duct the business of the Corporation without regard 
to any qualification or law of any State relating to 
incorporation. 
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(b) POWERS.—Subject to subsection (c), the Corpora-
tion shall have all the powers of a private corporation in-
corporated under the District of Columbia Business Cor-
poration 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 con-
sent of a department, establishment, or instrumen-
tality (including any field office), the Corporation 
may— 
(A) use and act through any department, 
establishment, or instrumentality; 
(B) use, and pay compensation for, infor-
mation, services, facilities, and personnel of the 
department, establishment, or instrumentality. 
(d) FINANCIAL MATTERS.— 
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(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 Sec-
retary of the Treasury as a general or other de-
pository 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 Treas-
ury; 
(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.— 
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(1) IN GENERAL.—Subject to paragraph (2), 
the Corporation (including the franchise, activities, 
capital, reserves, surplus, and income of the Cor-
poration) 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 Cor-
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poration 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 re-
moval— 
(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 dis-
trict in which the principal office of the Cor-
poration 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 in-
cludes— 
(1) a description of— 
(A) the technologies supported by activities 
of the Corporation and how the activities ad-
vance the purposes of this Act; 
(B) the performance of the Corporation on 
meeting the goals established by the Secretary; 
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(C) the comparability of the compensation 
policies of the Corporation with the compensa-
tion 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 state-
ment 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 per-
formance of the Corporation; and 
(E) the comparability of the financial per-
formance of the Corporation with the perform-
ance 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, re-
ceipts, 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. 
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(2) ACCESS.—The representatives of the Gov-
ernment 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 be-
longing 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 Comp-
troller General to such information be enforce-
able pursuant to section 716(c) of title 31, 
United States Code. 
(3) REPORT.— 
(A) IN GENERAL.—The Comptroller Gen-
eral shall submit to Congress a report on each 
audit conducted under this subsection. 
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(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 fi-
nancial 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 con-
ducting 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 ac-
countants 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 
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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 ac-
cepted 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 re-
quirements 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 ade-
quate capital and internal controls; 
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(B) the operations and activities of the 
Corporation foster liquid, efficient, competitive, 
and resilient energy finance markets; 
(C) the Corporation carries out the statu-
tory mission of the Corporation only through 
activities that are authorized under and con-
sistent with this Act; and 
(D) the activities of the Corporation and 
the manner in which the Corporation is oper-
ated is consistent with the public interest. 
(b) FINANCIAL REPORTS.— 
(1) IN GENERAL.—The Corporation shall sub-
mit to the Secretary annual and quarterly reports of 
the financial condition and operations of the Cor-
poration 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 ac-
cordance with generally accepted accounting 
principles; 
(B) any supplemental information or alter-
native presentation that the Secretary may re-
quire; and 
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(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 Corpora-
tion, 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 re-
quire the Corporation to submit other reports on the 
condition (including financial condition), manage-
ment, activities, or operations of the Corporation, as 
the Secretary considers appropriate. 
(4) ACCURACY.—Each report of financial condi-
tion 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— 
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(1) the adequacy of internal controls and infor-
mation systems; 
(2) the independence and adequacy of internal 
audit systems; 
(3) the management of market risk, including 
standards to provide for systems that measure, mon-
itor, 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, includ-
ing 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 expo-
sure of the Corporation to a single counterparty or 
groups of related counterparties; 
(6) the maintenance of adequate records, in ac-
cordance with consistent accounting policies and 
practices to enable the Secretary to evaluate the fi-
nancial condition of the Corporation; and 
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(7) such other operational and management 
standards as the Secretary determines to be appro-
priate. 
(d) FAILURE TO MEET STANDARDS.— 
(1) IN GENERAL.—If the Secretary determines 
that the Corporation fails to meet any standard es-
tablished under subsection (c), the Secretary may re-
quire the Corporation to submit an acceptable plan 
to the Secretary within a reasonable time that speci-
fies the actions that the Corporation will take to cor-
rect 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 com-
parable with compensation for employment in other 
similar businesses (including other publicly held fi-
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nancial institutions or major financial services com-
panies) 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 rel-
evant, including any wrongdoing on the part of the 
executive officer. 
(3) WITHHOLDING OF COMPENSATION.—In car-
rying out paragraph (1), the Secretary may require 
the Corporation to withhold any payment, transfer, 
or disbursement of compensation to an executive of-
ficer, or to place such compensation in an escrow ac-
count, during the review of reasonableness and com-
parability of compensation. 
(4) PROHIBITION
OF
SETTING
COMPENSA-
TION.—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 OPER-
ATIONS. 
(a) IN GENERAL.—Not later than 5 years after the 
date of enactment of this Act, the Corporation may pre-
pare a strategic plan for issuing common stock to raise 
the capital needed to expand the operations of the Cor-
poration in carrying out this Act. 
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(b) CONSIDERATION OF ALTERNATIVES FOR GOV-
ERNANCE.—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 vot-
ing common stockholders. 
(c) EVALUATION
AND
RECOMMENDATION.—The 
strategic plan shall— 
(1) evaluate the relative merits of the alter-
natives considered; and 
(2) include the recommendation of the Corpora-
tion 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 rec-
ommendations for legislative changes required to imple-
ment the plan. 
(e) IMPLEMENTATION.—Subject to subsections (f) 
and (g), subsequent to submitting a strategic plan pursu-
ant 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.— 
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(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 re-
quired for the implementation. 
(2) IMPLEMENTATION.—The Corporation may 
not implement the strategic plan under this sub-
section earlier than 60 days after notification of 
Congress. 
Æ 
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