Clean Energy Victory Bond Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 4041 To promote the domestic development and deployment of clean energy technologies required for the 21st century. IN THE HOUSE OF REPRESENTATIVES JULY 25, 2019 Ms. LOFGREN (for herself and Ms. MATSUI) introduced the following bill; which was referred to the Committee on Ways and Means, and in addi- tion to the Committees on Energy and Commerce, and Science, Space, and Technology, 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 concerned A BILL To promote the domestic development and deployment of clean energy technologies required for the 21st century. 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 ‘‘Clean Energy Victory 4 Bond Act of 2019’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 2 •HR 4041 IH (1) Potential exists for increasing clean and re- 1 newable energy production and energy efficiency in- 2 stallation in the United States. 3 (2) Other nations, including China and Ger- 4 many, are ahead of the United States in manufac- 5 turing and deploying various clean energy tech- 6 nologies, even though the United States invented 7 many of these technologies. 8 (3) Climate change represents an existential 9 threat to American safety, security, and the econ- 10 omy. Rapid and robust deployment of clean energy 11 will reduce greenhouse gas emissions and mitigate 12 the effects of climate change on American society. 13 (4) Many segments of the American public 14 want to take charge of efforts to combat the effects 15 of climate change and practice responsible consumer 16 behavior. 17 (5) The Office of Energy Efficiency and Renew- 18 able Energy (EERE) of the Department of Energy 19 (DOE) estimates that taxpayer investment of $12 20 billion into EERE research and development port- 21 folio has already yielded an estimated net economic 22 benefit to the United States of more than $230 bil- 23 lion, with an overall annual return on investment of 24 more than 20 percent. 25 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 3 •HR 4041 IH (6) Investments in renewable energy and energy 1 efficiency projects in the United States create green 2 jobs across the United States. New and innovative 3 jobs could be created through expanded government 4 support for clean energy and energy efficiency. 5 (7) As Americans choose energy efficiency and 6 clean energy and transportation, it reduces our de- 7 pendence on foreign oils and improves our energy se- 8 curity. 9 (8) Bonds are a low-cost method for encour- 10 aging clean energy, not requiring direct budget allo- 11 cations or expenditures. The projects supported 12 through Clean Energy Victory Bonds will create jobs 13 and business revenues that will increase Federal tax 14 revenues, while simultaneously reducing health and 15 environmental costs incurred by the Federal Govern- 16 ment nationwide. 17 (9) Bonds are voluntary measures that allow 18 Americans to contribute financially at whatever 19 means they have available to them. 20 (10) In World War II, over 80 percent of Amer- 21 ican households purchased Victory Bonds to support 22 the war effort, raising over $185 billion, or over $2 23 trillion in today’s dollars. 24 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 4 •HR 4041 IH SEC. 3. CLEAN ENERGY VICTORY BONDS. 1 (a) ISSUANCE.—Not later than 6 months after the 2 date of the enactment of this Act, the Secretary of the 3 Treasury, in consultation with the Secretary of Energy 4 and the Secretary of Defense, shall issue bonds to be 5 known as ‘‘Clean Energy Victory Bonds’’, the proceeds 6 from which shall be used to carry out the purposes de- 7 scribed in section 9512(c) of the Internal Revenue Code 8 of 1986. 9 (b) SAVINGS BOND.—Any Clean Energy Victory 10 Bond issued under this section shall be issued by the Sec- 11 retary of the Treasury— 12 (1) as a savings bond of Series EE, or as ad- 13 ministered by the Bureau of the Fiscal Service of 14 the Department of the Treasury, in a manner con- 15 sistent with the provisions of section 3105 of title 16 31, United States Code; and 17 (2) in denominations of $25, and such other 18 amounts as are determined appropriate by the Sec- 19 retary, and shall mature within such periods as de- 20 termined by the Secretary. 21 (c) LIMITATION.—The aggregate face amount of the 22 Clean Energy Victory Bonds issued annually under this 23 section shall be not greater than $50,000,000,000. 24 (d) INTEREST.—Clean Energy Victory Bonds shall 25 bear interest at the rate the Secretary sets for Savings 26 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 5 •HR 4041 IH Bonds of Series EE and Series I, plus a rate of return 1 determined by the Secretary which is based on the valu- 2 ation of— 3 (1) savings achieved through reduced energy 4 spending by the Federal Government resulting from 5 clean energy projects funded from the proceeds of 6 such bonds; and 7 (2) interest collected on loans financed or guar- 8 anteed from the proceeds of such bonds. 9 (e) FULL FAITH AND CREDIT.—Payment of interest 10 and principal with respect to any Clean Energy Victory 11 Bond issued under this section shall be made from the 12 general fund of the Treasury of the United States and 13 shall be backed by the full faith and credit of the United 14 States. 15 (f) PROMOTION.— 16 (1) IN GENERAL.—The Secretary shall take 17 such actions, independently and in conjunction with 18 financial institutions offering Clean Energy Victory 19 Bonds, to promote the purchase of Clean Energy 20 Victory Bonds, including campaigns describing the 21 financial and social benefits of purchasing Clean En- 22 ergy Victory Bonds. 23 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 6 •HR 4041 IH (2) PROMOTIONAL ACTIVITIES.—Such pro- 1 motional activities may include advertisements, pam- 2 phlets, or other promotional materials— 3 (A) in periodicals; 4 (B) on billboards and other outdoor 5 venues; 6 (C) on television; 7 (D) on radio; 8 (E) on the internet; 9 (F) within financial institutions that offer 10 Clean Energy Victory Bonds; or 11 (G) any other venues or outlets the Sec- 12 retary may identify. 13 (g) DEFINITION.—For purposes of this section— 14 (1) CLEAN ENERGY PROJECT.—The term 15 ‘‘clean energy project’’ means a technology that pro- 16 vides— 17 (A) performance-based energy efficiency 18 improvements; or 19 (B) clean energy improvements, includ- 20 ing— 21 (i) electricity generated from solar, 22 wind, geothermal, small scale or micro hy- 23 dropower, and hydrokinetic energy sources; 24 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 7 •HR 4041 IH (ii) fuel cells using non-fossil fuel 1 sources; 2 (iii) advanced storage technologies; 3 (iv) next generation biofuels from sus- 4 tainable non-food feedstocks; and 5 (v) electric vehicle infrastructure. 6 (2) SECRETARY.—Any reference to the Sec- 7 retary of the Treasury shall include any delegate of 8 the Secretary. 9 SEC. 4. CLEAN ENERGY VICTORY BONDS TRUST FUND. 10 (a) IN GENERAL.—Subchapter A of chapter 98 of the 11 Internal Revenue Code of 1986 is amended by adding at 12 the end the following new section: 13 ‘‘SEC. 9512. CLEAN ENERGY VICTORY BONDS TRUST FUND. 14 ‘‘(a) CREATION OF TRUST FUND.—There is estab- 15 lished in the Treasury of the United States a trust fund 16 to be known as the ‘Clean Energy Victory Bonds Trust 17 Fund’, consisting of such amounts as may be apportioned 18 or credited to such Trust Fund as provided in this section 19 or section 9602(b). 20 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here- 21 by appropriated to the Trust Fund amounts equivalent 22 to— 23 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 8 •HR 4041 IH ‘‘(1) revenue from the issuance of Clean Energy 1 Victory Bonds under section 3 of the Clean Energy 2 Victory Bond Act of 2019; 3 ‘‘(2) any gifts of bequests made to the Trust 4 Fund which are accepted by the Secretary for the 5 benefit of such Fund or any activity financed 6 through such Fund. 7 ‘‘(c) EXPENDITURES FROM TRUST FUNDS.— 8 Amounts in the Trust Fund shall be available, without 9 further appropriation, to finance clean energy projects at 10 the Federal, State, and local level, which may include— 11 ‘‘(1) providing additional support to existing 12 Federal financing programs available to States for 13 energy efficiency upgrades and clean energy deploy- 14 ment; 15 ‘‘(2) providing funding for clean energy invest- 16 ments by Federal agencies; 17 ‘‘(3) providing funding for electric grid en- 18 hancements and connections that enable clean en- 19 ergy deployment; 20 ‘‘(4) providing funding to renovate existing inef- 21 ficient buildings or building new energy efficient 22 buildings; 23 ‘‘(5) providing tax incentives and tax credits for 24 clean energy technologies; 25 VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS 9 •HR 4041 IH ‘‘(6) providing funding for new innovation re- 1 search, including ARPA–E, public competitions simi- 2 lar to those designed by the X Prize Foundation, the 3 Office of Energy Efficiency and Renewable Energy 4 at the Department of Energy, or other mechanisms 5 to fund revolutionary clean energy technology; 6 ‘‘(7) providing additional support to existing 7 Federal, State, and local grant programs that fi- 8 nance clean energy projects (as defined in section 9 3(g) of the Clean Energy Victory Bond Act of 10 2019); and 11 ‘‘(8) providing additional support for zero-emis- 12 sion vehicle infrastructure and manufacturing.’’. 13 (b) CLERICAL AMENDMENT.—The table of sections 14 for subchapter A of chapter 98 of such Code is amended 15 by adding at the end the following new item: 16 ‘‘Sec. 9512. Clean Energy Victory Bonds Trust Fund.’’. Æ VerDate Sep 11 2014 03:59 Aug 14, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H4041.IH H4041 kjohnson on DSK79L0C42 with BILLS