No More Solyndras Act - (Sec. 3) Prohibits the Secretary of Energy (DOE) from issuing any new loan guarantee of an innovative energy project under title XVII (Incentives for Innovative Technologies) of the Energy Policy Act of 2005 for any application submitted to DOE after December 31, 2011.
Prohibits a loan guarantee for any application pending before that date until the Secretary of the Treasury furnishes, within 30 days after receiving the guarantee proposal from DOE, a written analysis of the its financial terms and conditions. Requires DOE, before making such a guarantee, to take the written analysis into consideration.
Requires DOE also, if it makes a guarantee inconsistent with that written analysis, to give certain congressional committees, within 30 days after making the guarantee, a written explanation of any material inconsistencies.
Requires DOE, within 60 days after making a loan guarantee on a pending application, to report to specified congressional committees on: (1) the review and decisionmaking process used in making the guarantee; (2) the terms of the guarantee; and (3) the recipient, the technology, and project for which the loan guarantee will be used.
(Sec. 4) Directs the Secretary to consult with the Secretary of the Treasury regarding any restructuring of the terms and conditions of an innovative energy project loan guarantee, including any deviations from the financial terms of the guarantee.
(Sec. 5) Revises the condition on the loan guarantee that the obligation shall not be subordinate to any other financing for the project. Prohibits likewise subordination to other financing of any reorganization, restructuring, or termination of the obligation.
(Sec. 6) Subjects to certain administrative actions and civil penalties any federal official responsible for the issuance of an innovative energy project loan guarantee in violation of either the requirements of this Act or of title XVII of the Energy Policy Act of 2005. Specifies such sanctions as: (1) administrative discipline including, when circumstances warrant, suspension from duty without pay or removal from office; and (2) personal liability for a civil penalty of between $10,000 and $50,000 for each violation.
(Sec. 7) Directs the Comptroller General to study federal subsidies in energy markets from FY2003-FY2012, with particular focus upon subsidies supporting: (1) electricity production, transmission, and consumption; (2) transportation fuels and infrastructure; (3) energy-related research and development; and (4) facilities that manufacture energy-related components.
Requires the report to Congress on such study to identify and quantify: (1) costs to the U.S. Treasury; (2) impacts on U.S. energy security, electricity and transportation fuel prices, and private energy-related industries not benefitting from federal subsidies in energy markets; (3) federal subsidies in energy markets provided to foreign persons or corporations; and (4) subsidies and direct financial interest any of the 15 foreign countries with the largest gross domestic product (GDP) are providing to support energy markets in their respective countries.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6213 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6213
To limit further taxpayer exposure from the loan guarantee program
established under title XVII of the Energy Policy Act of 2005.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2012
Mr. Upton (for himself, Mr. Stearns, Mr. Pitts, Mr. Terry, Mr. Stivers,
Mr. Latham, Mr. Scott of South Carolina, Mr. Gingrey of Georgia, Mrs.
Ellmers, Mr. Lance, Mr. Rogers of Michigan, Mr. Whitfield, Mr. Burgess,
Mr. Sullivan, Mrs. Blackburn, Mr. Pompeo, Mrs. Myrick, Mr. Harper, Mr.
Flake, and Mr. Olson) introduced the following bill; which was referred
to the Committee on Energy and Commerce, and in addition to the
Committee on 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 limit further taxpayer exposure from the loan guarantee program
established under title XVII of the Energy Policy Act of 2005.
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 ``No More Solyndras Act''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) President Obama took office amidst a weak economy and
high unemployment, yet he remained committed to advancing an
expansive ``green jobs'' agenda that received substantial
funding with the passage of the American Recovery and
Reinvestment Act of 2009, commonly known as the stimulus
package.
(2) The stimulus package allocated $90 billion to various
green energy programs, and related appropriations provided $47
billion for loan guarantees authorized under title XVII of the
Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.).
(3) Such title XVII authorized the Secretary of Energy to
issue loan guarantees for projects that avoid, reduce, or
sequester air pollutants or greenhouse gases and employ new or
significantly improved technologies compared with commercial
technologies in service at the time the guarantee is issued.
(4) Loan guarantees issued under such title XVII were
required to provide a reasonable prospect of repayment and were
expressly required to be subject to the condition that the
obligation is not subordinate to other financing.
(5) The stimulus package expanded such title XVII by adding
section 1705 to include projects that use commercial technology
for renewable energy systems, electric power transmission
systems, and leading-edge biofuels projects and by
appropriating $6,000,000,000 in funding to pay the credit
subsidy costs for section 1705 loan guarantees for projects
that commence construction no later than September 30, 2011.
(6) The Department of Energy, since the enactment of the
stimulus package, has issued loan guarantees under such title
XVII for 28 projects totaling $15,100,000,000 under the section
1705 program, and, according to the Government Accountability
Office, issued conditional loan guarantees for four projects
totaling $4,400,000,000 under the section 1705 program and four
projects totaling $10,600,000,000 under the section 1703
program.
(7) Three of the first five companies that received section
1705 loan guarantees for their projects, Solyndra, Inc., Beacon
Power Corporation, and Abound Solar, Inc., have declared
bankruptcy.
(8) The bankruptcy of the first section 1705 loan guarantee
recipient, Solyndra, Inc., could result in a loss to taxpayers
of over $530,000,000.
(9) The investigation of the Solyndra loan guarantee by the
Committee on Energy and Commerce has demonstrated that the
review in 2009 of the Solyndra application by the Department of
Energy and the Office of Management and Budget was driven by
politics and ideology and divorced from economic reality where
the Department of Energy ignored concerns about the company's
financial condition and market for its products.
(10) Despite an express provision in such title XVII
prohibiting subordination of the United States taxpayers'
financial interest, the Department of Energy restructured the
Solyndra loan guarantee in February 2011, resulting in the
taxpayers losing priority to Solyndra's investors in the event
of a default.
(11) The Inspector General of the Department of the
Treasury concluded that it was unclear whether the Department
of Energy's consultation requirement with the Secretary of the
Treasury on the Solyndra loan guarantee was met; that the
consultation that did occur was rushed with the Department of
the Treasury expressing that ``the train really has left the
station on this deal''; and that no documentation was retained
as to how the Department of the Treasury's serious concerns
with the loan guarantee were addressed.
(12) The Government Accountability Office concluded that
the Department of Energy Loan Guarantee Program under title
XVII has treated applicants inconsistently; that the Department
of Energy did not follow its own process for reviewing
applications and documenting its analysis and decisions,
increasing the likelihood of taxpayer exposure to financial
risk from a default; and that the Department of Energy's
absence of adequate documentation made it difficult for the
Department to defend its decisions on loan guarantees as sound
and fair.
(13) A memorandum prepared for the President dated October
25, 2010, from Carol Browner, Ron Klain, and Larry Summers,
principal advisors to the President, noted the risk presented
by loan guarantee projects because most of the projects had
little ``skin in the game'' from private investors.
(14) A January 2012 report conducted at the request of the
Chief of Staff to the President concluded that the portfolio of
projects the Department of Energy included in the loan program
were higher risk investments that private capital markets do
not generally invest in.
(15) The Department of Energy's section 1705 program has
expired but the Department of Energy has announced that it will
continue to consider applications for loan guarantees under the
section 1703 program.
(16) The Department of Energy has approximately
$34,000,000,000 in remaining lending authority to issue new
loan guarantees under the section 1703 program.
SEC. 3. SUNSET.
(a) No New Applications.--The Secretary of Energy shall not issue
any new loan guarantee pursuant to title XVII of the Energy Policy Act
of 2005 (42 U.S.C. 16511 et seq.) for any application submitted to the
Department of Energy after December 31, 2011.
(b) Pending Applications.--With respect to any application
submitted pursuant to section 1703 or 1705 of the Energy Policy Act of
2005 before December 31, 2011:
(1) No guarantee shall be made until the Secretary of the
Treasury has reviewed the proposed guarantee and made a written
recommendation to the Secretary of Energy on the merits of the
guarantee.
(2) The Secretary of the Treasury shall transmit the
written recommendation required under paragraph (1) to the
Secretary of Energy not later than 30 days after receiving the
proposal from the Secretary of Energy.
(3) Before making a guarantee under such title XVII, the
Secretary of Energy shall take into consideration the written
recommendation made by the Secretary of the Treasury under
paragraph (1).
(4) If the Secretary of Energy makes a guarantee that does
not conform to the written recommendation made by the Secretary
of the Treasury under paragraph (1), not later than 30 days
after making such guarantee the Secretary of Energy shall
transmit to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Energy and Natural
Resources of the Senate a written explanation of the
Secretary's reasons for deviating from the Secretary of the
Treasury's recommendation.
(c) Transparency.--
(1) Reports to congress.--Not later than 60 days after
making a guarantee as provided in subsection (b), the Secretary
of Energy shall transmit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate a report that
includes information regarding--
(A) the review and decisionmaking process utilized
by the Secretary in making the guarantee;
(B) the terms of the guarantee;
(C) the recipient; and
(D) the technology and project for which the loan
guarantee will be used.
(2) Protecting confidential business information.--A report
under paragraph (1) shall provide all relevant information, but
the Secretary shall take all necessary steps to protect
confidential business information with respect to the recipient
of the loan guarantee and the technology used.
SEC. 4. RESTATING THE RESTRUCTURING OF LOAN GUARANTEES.
With respect to any restructuring of the terms of a loan guarantee
issued pursuant to title XVII of the Energy Policy Act of 2005, the
Secretary of Energy--
(1) shall consult with the Secretary of the Treasury
regarding any restructuring of the terms and conditions of the
loan guarantee, including any deviations from the financial
terms of the loan guarantee; and
(2) shall not subordinate the interests of the United
States Government to any other financing for the project.
SEC. 5. ADMINISTRATIVE ACTIONS.
(a) In General.--Any Federal official who is responsible for the
issuance of a loan guarantee under title XVII of the Energy Policy Act
of 2005 in a manner that violates the requirements of such title or of
this Act shall be subject to appropriate administrative discipline
including, when circumstances warrant, suspension from duty without pay
or removal from office.
(b) Definition.--For purposes of this section, the term ``Federal
official'' means--
(1) an individual serving in a position in level I, II,
III, IV, or V of the Executive Schedule, as provided in
subchapter II of chapter 53 of title 5, United States Code; and
(2) an individual serving in a Senior Executive Service
position, as provided in subchapter II of chapter 31 of title
5, United States Code.
<all>
The Speaker designated the Honorable Rob Bishop to act as Chairman of the Committee.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 779 and Rule XVIII.
GENERAL DEBATE - The Committee of the Whole proceeded with 90 minutes of general debate on H.R. 6213.
The Committee of the Whole rose informally to receive a message from the Senate.
GENERAL DEBATE - The Committee of the Whole resumed its sitting and continued with general debate on H.R. 6213.
DEBATE - Pursuant to the provisions of H. Res. 779, the Committee of the Whole proceeded with 10 minutes of debate on the DeGette amendment No. 1.
POSTPONED PROCEEDINGS - At the conclusion of debate on the DeGette amendment No. 1, the Chair put the question on adoption of the amendment, and by voice vote announced that the ayes had prevailed. Mr. Stearns demanded a recorded vote and the Chair postponed further proceedings on adoption of the amendment until a time to be announced.
DEBATE - Pursuant to the provisions of H. Res. 779, the Committee of the Whole proceeded with 10 minutes of debate on the Waxman amendment No. 2.
POSTPONED PROCEEDINGS - At the conclusion of debate on the Waxman amendment No. 2, the Chair put the question on adoption of the amendment, and by voice vote announced that the ayes had prevailed. Mr. Stearns demanded a recorded vote and the Chair postponed further proceedings on adoption of the amendment until a time to be announced.
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The House rose from the Committee of the Whole House on the state of the Union to report H.R. 6213.
The previous question was ordered pursuant to the rule. (consideration: CR H6022)
The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text of amendment in the nature of a substitute: CR H6017-6018)
Mr. Markey moved to recommit with instructions to Energy and Commerce. (consideration: CR H6022-6024; text: CR H6022)
DEBATE - The House proceeded with 10 minutes of debate on the Markey motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add a section to the bill relating to Buy America provisions. The new section prohibits the Secretary of Energy from issuing loan guarantees for an energy project unless the applicant certifies to the Secretary that at least 75% of the materials and components used for construction, manufacturing, or operations of the project are to be produced in the United States. The motion would also make the underlying bill's prohibition against awarding new loan guarantees contingent on the extension of the Wind Energy Production Tax Credit.
The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H6023)
On motion to recommit with instructions Failed by recorded vote: 175 - 234 (Roll no. 583).
Roll Call #583 (House)Passed/agreed to in House: On passage Passed by recorded vote: 245 - 161 (Roll no. 584).
Roll Call #584 (House)On passage Passed by recorded vote: 245 - 161 (Roll no. 584).
Roll Call #584 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.