A bill to amend the Energy Policy Act of 2005 to improve the loan guarantee program of the Department of Energy under title XVII of that Act.

SECTION 1. INCENTIVES FOR INNOVATIVE TECHNOLOGIES LOAN GUARANTEE 
              PROGRAM.

    (a) Specific Appropriation or Contribution.--Section 1702 of the 
Energy Policy Act of 2005 (42 U.S.C. 16512) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Specific Appropriation or Contribution.--
            ``(1) In general.--No guarantee shall be made unless--
                    ``(A) an appropriation for the cost of the 
                guarantee has been made;
                    ``(B) the Secretary has received from the borrower 
                a payment in full for the cost of the guarantee and 
                deposited the payment into the Treasury; or
                    ``(C) a combination of appropriations under 
                subparagraph (A) or payments from the borrower under 
                subparagraph (B) has been made that is sufficient to 
                cover the cost of the guarantee.
            ``(2) Limitation.--The source of payments received from a 
        borrower under subparagraph (B) or (C) of paragraph (1) shall 
        not be a loan or other debt obligation that is made or 
        guaranteed by the Federal Government.''; and
            (2) by adding at the end the following:
    ``(l) Credit Report.--If, in the opinion of the Secretary, a third-
party credit rating of the applicant or project is not relevant to the 
determination of the credit risk of a project, if the project costs are 
not projected to exceed $100,000,000, and the applicant agrees to 
accept the credit rating assigned to the applicant by the Secretary, 
the Secretary may waive any otherwise applicable requirement (including 
any requirement described in part 609 of title 10, Code of Federal 
Regulations) to provide a third-party credit report.
    ``(m) Direct Hire Authority.--
            ``(1) In general.--Notwithstanding sections 3304 and 
        sections 3309 through 3318 of title 5, United States Code, the 
        head of the loan guarantee program under this title (referred 
        to in this subsection as the `Executive Director') may, on a 
        determination that there is a severe shortage of candidates or 
        a severe hiring need for particular positions to carry out the 
        functions of this title, recruit and directly appoint highly 
        qualified critical personnel with specialized knowledge 
        important to the function of the programs under this title into 
        the competitive service.
            ``(2) Exception.--The authority granted under paragraph (1) 
        shall not apply to positions in the excepted service or the 
        Senior Executive Service.
            ``(3) Requirements.--In exercising the authority granted 
        under paragraph (1), the Executive Director shall ensure that 
        any action taken by the Executive Director--
                    ``(A) is consistent with the merit principles of 
                section 2301 of title 5, United States Code; and
                    ``(B) complies with the public notice requirements 
                of section 3327 of title 5, United States Code.
            ``(4) Sunset.--The authority provided under paragraph (1) 
        shall terminate on September 30, 2011.
    ``(n) Professional Advisors.--The Secretary may--
            ``(1) retain agents and legal and other professional 
        advisors in connection with guarantees and related activities 
        authorized under this title;
            ``(2) require applicants for and recipients of loan 
        guarantees to pay all fees and expenses of the agents and 
        advisors; and
            ``(3) notwithstanding any other provision of law, select 
        such advisors in such manner and using such procedures as the 
        Secretary determines to be appropriate to protect the interests 
        of the United States and achieve the purposes of this title.
    ``(o) Multiple Sites.--Notwithstanding any contrary requirement 
(including any provision under part 609.12 of title 10, Code of Federal 
Regulations) an eligible project may be located on 2 or more non-
contiguous sites in the United States.''.
    (b) Applications for Multiple Eligible Projects.--Section 1705 of 
the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following:
    ``(e) Multiple Applications.--Notwithstanding any contrary 
requirement (including any provision under part 609.3(a) of title 10, 
Code of Federal Regulations), a project applicant or sponsor of an 
eligible project may submit an application for more than 1 eligible 
project under this section.''.
    (c) Energy Efficiency Loan Guarantees.--Section 1705(a) of the 
Energy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at 
the end the following:
            ``(4) Energy efficiency projects, including projects to 
        retrofit residential, commercial, and industrial buildings, 
        facilities, and equipment.''.
    (d) Fees; Professional Advisors.--Section 136 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17013) is amended--
            (1) by striking subsection (f) and inserting the following:
    ``(f) Fees.--Except as otherwise permitted under subsection (i), 
administrative costs shall be not more than $100,000 or 10 basis points 
of the loan.'';
            (2) by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively; and
            (3) by inserting after subsection (h) the end the 
        following:
    ``(i) Professional Advisors.--The Secretary may--
            ``(1) retain agents and legal and other professional 
        advisors in connection with guarantees and related activities 
        authorized under this section;
            ``(2) require applicants for and recipients of loan 
        guarantees to pay directly, or through the payment of fees to 
        the Secretary, all fees and expenses of the agents and 
        advisors; and
            ``(3) notwithstanding any other provision of law, select 
        such advisors in such manner and using such procedures as the 
        Secretary determines to be appropriate to protect the interests 
        of the United States and achieve the purposes of this 
        section.''.

Summary: Amends the Energy Policy Act of 2005 (EPA) to prohibit federal loan guarantees for innovative technologies unless: (1) an appropriation for the cost of the guarantee has been made; (2) the Secretary of Energy (DOE) has received and deposited into the Treasury payment in full from the borrower for the cost of the guarantee; or (3) a combination of appropriations or payments from the borrower has been made that is sufficient to cover the cost of the guarantee.

Authorizes the Secretary to waive requirements to provide a third-party credit report if: (1) such report, in the Secretary's opinion, is not relevant to the determination of the credit risk of a project; (2) the project costs are not projected to exceed $100 million; and (3) the applicant agrees to accept the credit rating the Secretary assigns.

Authorizes the head of the loan guarantee program, if there is either a severe shortage of candidates or a severe hiring need for particular positions, to recruit and directly appoint into the competitive service highly qualified critical personnel with specialized knowledge important to program functions (direct hire authority).

Amends the EPA and the Energy Independence and Security Act of 2007 to authorize the Secretary to: (1) retain agents and professional advisors in connection with guarantees and related activities; and (2) require loan guarantee applicants and recipients to pay all fees and expenses of such agents and advisors.

Authorizes the Secretary to make energy efficiency loan guarantees for projects starting construction by September 30, 2011, to retrofit residential, commercial, and industrial buildings, facilities, and equipment.