I
116TH CONGRESS
1ST SESSION H. R. 3423
To amend title 31, United States Code, to provide for the issuance of
Green Bonds and to establish the United States Green Bank, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 21, 2019
Mr. HIMES (for himself, Mr. COURTNEY, Mr. TONKO, Mr. CONNOLLY, Mr.
CARTWRIGHT, Mr. PETERS, Ms. ESHOO, Mr. BLUMENAUER, Mr. MEEKS,
Ms. MATSUI, Mr. YARMUTH, Mr. MICHAEL F. DOYLE of Pennsylvania,
Ms. HILL of California, and Mr. MCGOVERN) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committee on Energy and Commerce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee con-
cerned
A BILL
To amend title 31, United States Code, to provide for the
issuance of Green Bonds and to establish the United
States Green Bank, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘National Green Bank
4
Act of 2019’’.
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•HR 3423 IH
SEC. 2. CAPITALIZATION, METHOD OF CAPITAL STOCK PAY-
1
MENTS, ISSUANCE OF GREEN BONDS.
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Chapter 31 of title 31, United States Code, is amend-
3
ed by adding after section 3102 the following new section:
4
‘‘§ 3102A. Green Bonds
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‘‘(a) INITIAL CAPITALIZATION.—The Secretary of the
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Treasury shall issue bonds (in this section referred to as
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‘Green Bonds’) in the amount of $10,000,000,000 on the
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credit of the United States to acquire capital stock of the
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United States Green Bank (established under section
10
9801 of this title). Stock certificates evidencing ownership
11
in the United States Green Bank shall be issued by the
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Green Bank to the Secretary of the Treasury, to the ex-
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tent of payments made for the capital stock of the Green
14
Bank.
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‘‘(b) FUTURE CAPITALIZATION.—Upon the request
16
of the United States Green Bank, the Secretary of the
17
Treasury shall issue additional Green Bonds on the credit
18
of the United States to acquire additional capital stock
19
of the United States Green Bank in an aggregate amount
20
not to exceed $50,000,000,000 outstanding at any one
21
time.
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‘‘(c)
DENOMINATIONS
AND
MATURITY.—Green
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Bonds shall be in such forms and denominations, and shall
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mature within such periods, as determined by the Sec-
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retary of the Treasury.
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‘‘(d) INTEREST.—Green Bonds shall bear interest at
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a rate not less than the current average yield on out-
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standing market obligations of the United States of com-
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parable maturity during the month preceding the issuance
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of the obligation as determined by the Secretary of the
5
Treasury.
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‘‘(e) GUARANTEED.—Green Bonds shall be fully and
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unconditionally guaranteed both as to interest and prin-
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cipal by the United States, and such guaranty shall be
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expressed on the face of each bond.
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‘‘(f) LAWFUL INVESTMENTS.—Green Bonds shall be
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lawful investments, and may be accepted as security for
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all fiduciary, trust, and public funds, the investment or
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deposit of which shall be under the authority or control
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of the United States or any officer or officers thereof.’’.
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SEC. 3. GREEN BANK.
16
Title 31, United States Code, is amended by adding
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the following new chapter at the end thereof:
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‘‘CHAPTER 98—GREEN BANK
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‘‘§ 9801. United States Green Bank
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‘‘(a) SHORT TITLE.—This section may be cited as the
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‘United States Green Bank Act of 2019’.
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‘‘(b) PURPOSES.—The purposes of this section are as
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follows:
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•HR 3423 IH
‘‘(1) To significantly increase the pace and
1
amount of investment in clean energy, energy effi-
2
ciency, and other climate change mitigation and ad-
3
aptation projects at the State and local level.
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‘‘(2) To improve the standard of living for
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Americans by delivering clean electricity more effi-
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ciently and at lower cost and by funding projects
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that will create high-paying, long-term jobs and
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make affordable financing available to low- and mod-
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erate-income families.
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‘‘(3) To address the main impediment to invest-
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ment at the State and local level—limited capital
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and tight balance sheets—by establishing a national
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Green Bank to capitalize legitimate Regional, State,
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and Municipal Green Banks.
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‘‘(4) To facilitate—
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‘‘(A) efficient tax equity markets for quali-
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fied clean energy projects; and
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‘‘(B) the financing of long-term clean en-
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ergy purchasing by governmental and non-
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governmental not-for-profit entities.
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‘‘(5) To foster—
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‘‘(A) the development and consistent appli-
23
cation of transparent underwriting standards,
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standard contractual terms, and measurement
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•HR 3423 IH
and verification protocols for qualified clean en-
1
ergy
projects,
qualified
energy
efficiency
2
projects, and qualified climate change mitiga-
3
tion or adaptation projects;
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‘‘(B) the creation of performance data that
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enables effective underwriting, risk manage-
6
ment, and pro forma modeling of financial per-
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formance of qualified clean energy projects and
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qualified energy efficiency projects to support
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primary financing markets and stimulate devel-
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opment of secondary investment markets for
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clean energy projects, energy efficiency projects,
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and climate change mitigation or adaptation
13
projects; and
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‘‘(C) the level of financing support for
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qualified clean energy projects, qualified energy
16
efficiency projects, and qualified climate mitiga-
17
tion and adaptation projects necessary to ad-
18
vance vital national objectives, including—
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‘‘(i) achieving energy independence
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from foreign energy sources;
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‘‘(ii) abating climate change by in-
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creasing zero or low carbon electricity gen-
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eration and transportation capabilities;
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‘‘(iii) adapting to the impacts result-
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ing from climate change;
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‘‘(iv) realizing energy efficiency poten-
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tial in existing infrastructure;
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‘‘(v) easing the economic effects of
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transitioning from a carbon-based economy
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to a clean energy economy;
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‘‘(vi) achieving job creation through
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the construction and operation of qualified
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clean energy projects, qualified energy effi-
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ciency projects, and qualified climate
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change mitigation or adaptation projects;
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‘‘(vii) fostering long-term domestic
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manufacturing capacity in the clean en-
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ergy, energy efficiency, and climate change
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mitigation or adaptation industries; and
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‘‘(viii) complementing and supple-
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menting other clean energy, energy effi-
18
ciency, and climate change mitigation and
19
adaptation legislation at the regional,
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State, municipal, and county level.
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‘‘(c) DEFINITIONS.—In this section:
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‘‘(1) BANK.—The term ‘Bank’ means the
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United States Green Bank established under sub-
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section (d).
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•HR 3423 IH
‘‘(2) BOARD.—The term ‘Board’ means the
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Board of Directors of the Bank.
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‘‘(3) CLEAN
ENERGY
PROJECT.—The term
3
‘clean energy project’ means any electricity genera-
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tion, transmission, storage, heating, cooling, trans-
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portation, distribution, industrial process, or manu-
6
facturing project whose primary purpose is the de-
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ployment, development, or production of an energy
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system or technology that avoids, reduces, or seques-
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ters air pollutants or anthropogenic greenhouse
10
gases, including the following:
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‘‘(A) Solar.
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‘‘(B) Wind.
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‘‘(C) Geothermal.
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‘‘(D) Biomass.
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‘‘(E) Hydropower.
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‘‘(F) Ocean and hydrokinetic.
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‘‘(G) Fuel cell.
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‘‘(H) Advanced battery.
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‘‘(I) Carbon capture and sequestration.
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‘‘(J)
Next
generation
biofuels
from
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nonfood feedstocks.
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‘‘(K) Alternative fuel vehicle infrastruc-
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ture.
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‘‘(L) Alternative fuel vehicles.
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•HR 3423 IH
‘‘(4) CLIMATE CHANGE MITIGATION OR ADAP-
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TATION PROJECT.—The term ‘climate change miti-
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gation or adaptation project’ means any project that
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reduces the emissions of greenhouse gases by
4
sources or enhance their removal from the atmos-
5
phere by sinks, or reduce the vulnerability of social
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and biological systems to relatively sudden change
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and thus offset the effects of global warming, includ-
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ing—
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‘‘(A) afforestation, reforestation, and land
10
conservation;
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‘‘(B) regenerative agriculture;
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‘‘(C)
transit-oriented
development
and
13
mass transit infrastructure;
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‘‘(D) waste and recycling;
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‘‘(E) water treatment; and
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‘‘(F) wetland protection.
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‘‘(5) ELIGIBLE CLEAN ENERGY FINANCING IN-
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STITUTION.—The term ‘Eligible Clean Energy Fi-
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nancing Institution’ means a not-for-profit, inde-
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pendent entity, quasi-independent entity, or a gov-
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ernmental entity within an agency or financing au-
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thority, established or designated by a State, group
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of States, the District of Columbia, a territory of the
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•HR 3423 IH
United States, or an Eligible State Political Subdivi-
1
sion to—
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‘‘(A) provide low-cost or long-term financ-
3
ing support or credit enhancements, including
4
loan guarantees and loan loss reserves, for
5
Qualified Clean Energy Projects, Qualified En-
6
ergy Efficiency Projects, or Qualified Mitigation
7
or Adaptation Projects; and
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‘‘(B) create liquid markets for these
9
projects
including
warehousing
and
10
securitization, or take other steps to reduce fi-
11
nancial barriers to the deployment of existing
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and innovative clean energy, energy efficiency
13
projects, and climate change mitigation or ad-
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aptation projects. Eligible Clean Energy Fi-
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nancing Institutions may enter into partner-
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ships with private entities.
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‘‘(6) ELIGIBLE
STATE
POLITICAL
SUBDIVI-
18
SION.—The term ‘Eligible State Political Subdivi-
19
sion’ means—
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‘‘(A) any municipality, county or other po-
21
litical subdivision within a State that, based on
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the population data from the most recent U.S.
23
Census Bureau—
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•HR 3423 IH
‘‘(i) with respect to a municipality,
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has a population of not fewer than
2
200,000 people;
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‘‘(ii) with respect to a county, parish
4
or borough, has a population of not fewer
5
than 800,000 people; or
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‘‘(iii) with respect to a municipality,
7
county, parish, or borough, has a popu-
8
lation—
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‘‘(I) of not fewer than 84,000
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people; and
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‘‘(II) that constitutes not less
12
than 5 percent of the total population
13
of the State in which the municipality,
14
county, parish, or borough is located;
15
and
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‘‘(B) any political subdivision that—
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‘‘(i) is located in a State that collabo-
18
rates as 1 region for the purposes of this
19
Act; or
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‘‘(ii)(I) collaborates with another po-
21
litical subdivision; and
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‘‘(II) when combined with the political
23
subdivision described in subclause (I),
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•HR 3423 IH
meets the requirements described in sub-
1
paragraph (A).
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‘‘(7) ENERGY EFFICIENCY PROJECT.—The term
3
‘energy efficiency project’ means any project, tech-
4
nology, function, or measure that results in the re-
5
duction of energy use required to achieve the same
6
level of service or output prior to the application of
7
such project, technology, function, or measure, or
8
substantially reduces greenhouse gas emissions rel-
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ative to emissions that would have occurred prior to
10
the application of such project, technology, function,
11
or measure.
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‘‘(8) GREEN BOND.—The term ‘Green Bond’
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means a bond issued pursuant to section 3102A of
14
this title.
15
‘‘(9) QUALIFIED
CLEAN
ENERGY
PROJECT.—
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The term ‘qualified clean energy project’ means a
17
clean energy project that—
18
‘‘(A) is a Clean Energy Project carried out
19
domestically within the territorial borders of the
20
United States;
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‘‘(B) stays in good standing with its fi-
22
nancing entity;
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‘‘(C) to the extent otherwise required by
24
law, pays wages in accordance with subchapter
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•HR 3423 IH
IV of chapter 31 of title 40, United States Code
1
(commonly referred to as the Davis-Bacon Act);
2
‘‘(D) if for nuclear power, is funded by the
3
Bank only after all other existing Federal fi-
4
nancial support has been expended;
5
‘‘(E) if for Alternative fuel vehicles, is for
6
the purchase or lease of eligible vehicles and not
7
the design or manufacture thereof; and
8
‘‘(F) satisfies any other conditions estab-
9
lished by the Bank and published in the Fed-
10
eral Register.
11
‘‘(10)
QUALIFIED
ENERGY
EFFICIENCY
12
PROJECT.—The term ‘qualified energy efficiency
13
project’ means an energy efficiency project, includ-
14
ing smart grid technologies and functions character-
15
ized in section 1301 of the Energy Independence
16
and Security Act of 2007 and end-use technologies
17
for efficiency gains in new construction and across
18
existing infrastructure that—
19
‘‘(A) is an Energy Efficiency Project car-
20
ried out domestically within the territorial bor-
21
ders of the United States;
22
‘‘(B) stays current on interest and debt
23
payment obligations;
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•HR
[Text truncated for display. Full text available on Congress.gov.]