Clean Energy Victory Bond Act of 2021
Bill: S.2064 | Sponsor: Sen. Merkley, Jeff (D-OR)
Policy area: Energy

Summary:
Clean Energy Victory Bond Act of 2021
This bill directs the Department of the Treasury to issue Clean Energy Victory Bonds for investment in clean energy projects at the federal, state, and local level.

To direct the Secretary of the Treasury to issue Clean Energy Victory 
                                 Bonds.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Energy Victory Bond Act of 
2021''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Potential exists for increasing clean and renewable 
        energy production and energy efficiency installation in the 
        United States.
            (2) Other nations, including China and Germany, are ahead 
        of the United States in manufacturing and deploying various 
        clean energy technologies, even though many of these 
        technologies were invented in the United States.
            (3) Climate change represents an existential threat to the 
        safety, security, and economy of the United States. Rapid and 
        robust deployment of clean energy will reduce greenhouse gas 
        emissions and mitigate the effects of climate change on 
        American society.
            (4) Many segments of the American public want to take 
        charge of efforts to combat the effects of climate change and 
        practice responsible consumer behavior.
            (5) The Office of Energy Efficiency and Renewable Energy of 
        the Department of Energy (referred to in this section as the 
        ``EERE'') estimates that taxpayer investment of $12,000,000,000 
        into the EERE research and development portfolio has already 
        yielded an estimated net economic benefit to the United States 
        of more than $230,000,000,000, with an overall annual return on 
        investment of more than 20 percent.
            (6) Investments in renewable energy and energy efficiency 
        projects in the United States create green jobs throughout the 
        Nation. New and innovative jobs could be created through 
        expanded government support for clean energy and energy 
        efficiency.
            (7) As Americans choose energy efficiency and clean energy 
        and transportation, it reduces our dependence on foreign oil 
        and improves our energy security.
            (8) Bonds are a low-cost method for encouraging clean 
        energy, as they do not require direct budget allocations or 
        expenditures. The projects supported through Clean Energy 
        Victory Bonds will create jobs and business revenues that will 
        increase Federal tax revenues, while simultaneously reducing 
        nationwide health and environmental costs incurred by the 
        Federal Government.
            (9) Bonds are voluntary measures that allow Americans to 
        contribute financially in whatever amount is available to them.
            (10) During World War II, over 80 percent of American 
        households purchased Victory Bonds to support the war effort, 
        raising over $185,000,000,000, or over $2,000,000,000,000 in 
        today's dollars.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Clean energy project.--The term ``clean energy 
        project'' means a technology that provides--
                    (A) performance-based energy efficiency 
                improvements; or
                    (B) clean energy improvements, including--
                            (i) electricity generated from solar, wind, 
                        geothermal, small-scale hydropower, and 
                        hydrokinetic energy sources;
                            (ii) fuel cells using non-fossil fuel 
                        sources;
                            (iii) advanced storage technologies; and
                            (iv) electric vehicle infrastructure.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.

SEC. 4. CLEAN ENERGY VICTORY BONDS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary, in consultation with the 
Secretary of Energy and the Secretary of Defense, shall issue bonds to 
be known as ``Clean Energy Victory Bonds'', the proceeds from which 
shall be used to carry out the purposes described in subsection (c) of 
section 9512 of the Internal Revenue Code of 1986 (as added by section 
5).
    (b) Savings Bond.--Any Clean Energy Victory Bond issued under this 
section shall be issued by the Secretary--
            (1) as a savings bond of series EE, or as administered by 
        the Bureau of the Fiscal Service of the Department of the 
        Treasury, in a manner consistent with the provisions of section 
        3105 of title 31, United States Code; and
            (2) in denominations of $25 and such other amounts as are 
        determined appropriate by the Secretary, and shall mature 
        within such periods as determined by the Secretary.
    (c) Amount of Clean Energy Victory Bonds.--The aggregate face 
amount of the Clean Energy Victory Bonds issued annually under this 
section shall be not greater than $50,000,000,000.
    (d) Interest.--Clean Energy Victory Bonds shall bear interest at 
the rate the Secretary sets for Savings Bonds of Series EE and Series 
I, plus a rate of return determined by the Secretary which is based on 
the valuation of--
            (1) savings achieved through reduced energy spending by the 
        Federal Government resulting from clean energy projects funded 
        from the proceeds of such bonds; and
            (2) interest collected on loans financed or guaranteed from 
        the proceeds of such bonds.
    (e) Full Faith and Credit.--Payment of interest and principal with 
respect to any Clean Energy Victory Bond issued under this section 
shall be made from the general fund of the Treasury of the United 
States and shall be backed by the full faith and credit of the United 
States.
    (f) Promotion.--
            (1) In general.--The Secretary shall take such actions, 
        independently and in conjunction with financial institutions 
        offering Clean Energy Victory Bonds, to promote the purchase of 
        Clean Energy Victory Bonds, including campaigns describing the 
        financial and social benefits of purchasing Clean Energy 
        Victory Bonds.
            (2) Promotional activities.--For purposes of paragraph (1), 
        promotional activities may include advertisements, pamphlets, 
        or other promotional materials--
                    (A) in periodicals;
                    (B) on billboards and other outdoor venues;
                    (C) on television;
                    (D) on radio;
                    (E) on the internet;
                    (F) within financial institutions; or
                    (G) any other venues or outlets the Secretary may 
                identify.

SEC. 5. CLEAN ENERGY VICTORY BONDS TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. CLEAN ENERGY VICTORY BONDS TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Clean Energy 
Victory Bonds Trust Fund', consisting of such amounts as may be 
apportioned or credited to such Trust Fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Trust Fund--
            ``(1) amounts equivalent to revenue from the issuance of 
        Clean Energy Victory Bonds under section 4 of the Clean Energy 
        Victory Bond Act of 2021, and
            ``(2) any gifts or bequests made to the Trust Fund which 
        are accepted by the Secretary for the benefit of such Fund or 
        any activity financed through such Fund.
    ``(c) Expenditures From Trust Fund.--Amounts in the Trust Fund 
shall be available, without further appropriation, to finance clean 
energy projects (as defined in section 3 of the Clean Energy Victory 
Bond Act of 2021) at the Federal, State, and local level, which may 
include--
            ``(1) providing additional support to existing Federal 
        financing programs available to States for energy efficiency 
        upgrades and clean energy deployment,
            ``(2) providing funding for clean energy investments by all 
        Federal agencies,
            ``(3) providing funding for electric grid enhancements and 
        connections that enable clean energy deployment,
            ``(4) providing funding to renovate existing inefficient 
        buildings or building new energy efficient buildings,
            ``(5) providing tax incentives and tax credits for clean 
        energy technologies,
            ``(6) providing funding for new innovation research, 
        including ARPA-E, public competitions similar to those designed 
        by the X Prize Foundation, grants provided through the Office 
        of Energy Efficiency and Renewable Energy of the Department of 
        Energy, or other mechanisms to fund revolutionary clean energy 
        technology,
            ``(7) providing additional support to existing Federal, 
        State, and local grant programs that finance clean energy 
        projects, and
            ``(8) providing funding for zero-emission vehicle 
        infrastructure and manufacturing.
    ``(d) Project Priority.--
            ``(1) In general.--The Secretary shall ensure that not less 
        than 40 percent of the amounts expended under subsection (c) in 
        each year are expended for clean energy projects which are 
        located in and reduce energy rates in disadvantaged and 
        vulnerable communities.
            ``(2) Disadvantaged and vulnerable communities.--For 
        purposes of paragraph (1), the term `disadvantaged and 
        vulnerable communities' means communities--
                    ``(A) which bear disproportionate burdens of 
                negative public health effects, environmental 
                pollution, or impacts of climate change,
                    ``(B) have significant representation of people of 
                color, low-wealth individuals, or Tribal and Indigenous 
                members, or
                    ``(C) which have a high concentration of low- and 
                moderate-income households as compared to other 
                communities,
        as determined by the Secretary.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at the end the following 
new item:

``Sec. 9512. Clean Energy Victory Bonds Trust Fund.''.
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