Sec. 104. Administration functions

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The Administration may issue direct loans, letters of credit, loan guarantees, insurance products, or such other credit support (including through participation as a co-lender or a lending member of a syndication) as the Administrator considers appropriate to deploy clean energy technologies if the Administrator has determined that deployment of the technologies would benefit or be accelerated by the support. In carrying out this subsection and awarding credit support to projects, the Administrator shall account for— how the technology rates based on an evaluation methodology established by the Advisory Council; how the project fits with the goals developed by the Secretary under section 102; and the potential for the applicant to successfully complete the project.

In this paragraph, the term technology risk — means risk during construction or operation associated with the design, development, or deployment of a clean energy technology from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology; and includes risk associated with the cost, schedule, performance, reliability, maintenance, and the perception of risk.

The Administrator shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of— developing breakthrough technologies to the point at which the associated technology risk is largely mitigated; achieving widespread deployment and advancing the commercial viability of clean energy technologies; and advancing the goals developed by the Secretary under section 102. Until such time as the Administrator determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.

The Administration shall— use a portfolio investment approach to mitigate risk and diversify investments across technologies; to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance goals developed by the Secretary under section 102; and consistent with the expected loan loss reserve established under this paragraph, provide the maximum practicable percentage of support to promote breakthrough technologies.

The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves. Not later than 90 days after the date of the initiation of each review under clause (i), the Administrator shall submit 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 describing the results of the review and any recommended policy changes. To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this subtitle such that final decisions on applications can be issued not later than 180 days after the date of submission of a completed application.

In carrying out this subtitle, the Administration shall, to the maximum extent practicable— avoid duplicating efforts that have already been undertaken by other agencies, including State agencies acting under Federal programs; and with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C.

App.) and section 3145 of title 40, United States Code. The Administration shall work to develop financial products and arrangements to promote widespread deployment of, and private sector support of, clean energy technologies by facilitating aggregation of small projects and by providing indirect credit support, including credit enhancement. The Administration— in cooperation with Federal, State, local, and private sector entities, shall develop debt instruments that directly aggregate, or provide for the aggregation of, projects for the deployment of clean energy technology on a scale appropriate for residential or commercial applications; and may insure, purchase, and make commitments to purchase, any debt instrument associated with the deployment of a clean energy technology (including instruments secured by liens or other collateral related to the funding of clean energy technology) for the purposes of enhancing the availability of private financing for deployment of clean energy technology.

The Administration may acquire, hold, and sell or otherwise dispose of, pursuant to commitments or otherwise, any debt associated with the deployment of clean energy technologies or interest in the debt. The Administrator may establish requirements, and impose charges or fees, which may be regarded as elements of pricing, for different classes of sellers, servicers, or services. For the purpose of subparagraph (A), the Administrator may classify sellers and servicers as necessary to promote transparency and liquidity and to properly characterize the risk of default.

The Administrator shall establish— eligibility criteria for loan originators, sellers, and servicers seeking support for portfolios of financial obligations relating to clean energy technologies to ensure the capability of the loan originators, sellers, and servicers to perform the functions required to maintain the expected performance of the portfolios; and such criteria, standards, guidelines, and mechanisms such that, to the maximum extent practicable, loan originators and sellers will be able to determine the eligibility of loans for resale at the time of initial lending.

The Administration may lend on the security of, and make commitments to lend on the security of, any debt that the Administration has issued or is authorized to purchase under this section. On such terms and conditions as the Administrator may prescribe, the Administration may, based on the debt and with the concurrence of the Board of Directors— give security or guarantee; pay interest or other return; and issue notes, debentures, bonds, or other obligations or securities. The Administrator shall determine— the volume of the lending activities of the Administration; and the types of loan ratios, risk profiles, interest rates, maturities, and charges or fees in the secondary market operations of the Administration.

Determinations under subparagraph

(A)shall be consistent with the objectives of— providing an attractive investment environment for clean energy technologies; making the operations of the Administration self-supporting over the long term; and advancing the goals developed by the Secretary under section 102.

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64 Stat. 1267

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Sec. 104

Administration functions

Stat.64 Stat. 1267

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