New Bill In Congress: H.R.1698 Establishment of A Government “Green” Bank

 

H.R.1698: To establish the Green Bank to assist in the financing of qualified clean energy projects and qualified energy efficiency projects.

To establish the Green Bank to assist in the financing of qualified clean energy projects and qualified energy efficiency projects.

Be it enacted by the Senate and House of Representatives 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 amended by adding after section 3102 the following new section:
‘Sec. 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 Green Bank (established under section 9801 of this title), of which not more than $200,000,000 shall be used for costs that the Green Bank incurs for its first year in order to provide loans, loan guarantees, debt securitization, insurance, portfolio insurance, and other forms of financing support or risk management for qualified clean energy projects and qualified energy efficiency projects (as such terms are defined under such section). Stock certificates evidencing ownership in the Green Bank shall be issued by the Green Bank to the Secretary of the Treasury, to the extent of payments made for the capital stock of the Green Bank.‘(b) Future Capitalization- The Secretary of the Treasury may issue additional Green Bonds on the credit of the United States to acquire additional capital stock of the 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 Secretary of the Treasury.
‘(d) Interest- Green Bonds shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance 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 principal 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.

‘(d) Green Bank-

‘(1) ESTABLISHMENT OF CORPORATION- There is established a corporation to be known as the Green Bank that shall be wholly owned by the United States.

‘(2) INDEPENDENT CORPORATION- The Bank shall be an independent corporation. Neither the Bank nor any of its functions, powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation of the Government unless the Congress provides otherwise.

‘(3) CHARTER- The Bank shall be chartered for 20 years from the date of enactment of this section.

‘(4) GOVERNANCE-

‘(A) BOARD OF DIRECTORS OF THE BANK-

‘(i) IN GENERAL- The Bank shall be under the direction of a Board of Directors.

(ii) MEMBERSHIP- The Board shall consist of 8 members, as follows:

‘(I) The Secretary of the Energy or his designee.

‘(II) The Secretary of the Treasury or his designee.

‘(III) The Secretary of the Interior or his designee.

‘(IV) The Secretary of Agriculture or his designee.

‘(V) Four members appointed by the President of the United States including a Chief Executive Officer, 1 member with expertise regarding renewable energy, 1 member with expertise regarding electric utilities, and 1 member with expertise regarding consumer affairs.

‘(iii) QUORUM- 5 members of the Board shall constitute a quorum.

‘(iv) BYLAWS- The Board shall adopt, and may amend, such bylaws as are necessary for the proper management and functioning of the Bank, and shall, in such bylaws, designate the vice-presidents and other officers of the Bank and prescribe their duties.

‘(v) TERMS- The initial terms of the members of the Board shall be 4 years. For terms beginning after the first 4 years following the date of the enactment of this section, the Board shall create staggered terms of 2, 3, and 4 years for members of the Board.

‘(vi) VACANCIES- Any vacancy on the Board shall be filled in the same manner in which the original appointment was made.

‘(vii) INTERIM APPOINTMENTS- Any member appointed to fill a vacancy occurring before the expiration of the term for which such member’s predecessor was appointed shall be appointed only for the remainder of such term.

‘(viii) REAPPOINTMENT- Members of the Board may be reappointed for additional 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 period beginning on the date such member’s term expires.

‘(x) CHAIRMAN- The Board shall select a Chairman from among its members.

‘(B) EXECUTIVE VICE-PRESIDENT- The Chief Executive Officer shall appoint an Executive Vice-President who–

‘(i) shall serve as Chief Executive Officer 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.

‘(C) POLICIES AND PROCEDURES- At the request of any 2 members of the Board, the Chairman shall place an item pertaining to the policies or procedures of the Bank on the agenda 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 director, officer, attorney, agent, or employee of the Bank shall in any manner, directly or indirectly, participate in the deliberation upon, or the determination of, any question affecting such individual’s personal interests, or the interests of any corporation, partnership, or association in which such individual is directly or indirectly personally interested.

Read the rest of this bill HERE

SEC. 3. CONFORMING AMENDMENTS.

 

(a) Tax Exempt Status- Subsection (l) of section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

 

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    `(4) The Green Bank established under section 9801 of title 31, United States Code.’.

 

(b) Wholly Owned Government Corporation- Paragraph (3) of section 9101 of title 31, United States Code, is amended by adding at the end the following:

 

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    `(S) the Green Bank.’.

So a WHOLLY OWNED GOVERNMENT CORPORATION WITH TAX EXEMPT status?

And its Board of Directors are ALL government officials…….

http://thomas.loc.gov/cgi-bin/query/z?c111:h1698:

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