[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7018 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 7018
To promote development of a 21st century energy system to increase
United States competitiveness in the world energy technology
marketplace, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 23, 2008
Mr. Inslee (for himself, Mr. Israel, Mr. Perlmutter, and Mr. Klein of
Florida) introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committees on
Financial Services and Judiciary, 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 development of a 21st century energy system to increase
United States competitiveness in the world energy technology
marketplace, and for other purposes.
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 ``21st Century Energy Technology
Deployment Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to promote the domestic development and
deployment of the advanced, clean energy technologies required for the
21st century through the establishment of a 21st Century Energy
Deployment Corporation that will provide for an attractive investment
environment through--
(1) the development of a stable secondary market for clean
energy technology deployment loans; and
(2) the cooperation and support of the private capital
market in order to promote access to affordable debt financing
for accelerated deployment of advanced clean energy
technologies and first-of-a-kind commercial deployments.
SEC. 3. DEFINITIONS.
In this Act:
(1) Advisory council.--The term ``Advisory Council'' means
the Energy Technology Advisory Council of the Corporation.
(2) Board of directors.--The term ``Board of Directors''
means the Board of Directors of the Corporation.
(3) Breakthrough technology.--The term ``breakthrough
technology'' means a clean energy technology that--
(A) receives a high rating according to the
criteria established by the Advisory Council for
meeting the objectives of this Act; but
(B) has been impeded in the development of the
technology due to perceived high technical risk by the
commercial financial sector.
(4) Clean energy technology.--The term ``clean energy
technology'' means a technology related to the production, use,
transmission, control, or conservation of energy that will
contribute to meeting objectives of the United States--
(A) to reduce the need for additional energy
supplies by using existing energy supplies with greater
efficiency or by transmitting energy with greater
effectiveness through United States energy
infrastructure;
(B) to diversify the sources of energy supply of
the United States to include supplies that are
environmentally sustainable; or
(C) to stabilize atmospheric greenhouse gas levels
thorough reduction, avoidance, and sequestration of
energy-related emissions.
(5) Corporation.--The term ``Corporation'' means the 21st
Century Energy Deployment Corporation established by section 5.
(6) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(7) Novel technology.--The term ``novel technology'' means
a clean energy technology that, as determined by the Advisory
Council or the Secretary--
(A) has been sufficiently demonstrated; and
(B) has not been widely deployed on a commercial
scale.
(8) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(9) Security.--The term ``security'' has the meaning given
the term in section 2 of the Securities Act of 1933 (15 U.S.C.
77b).
(10) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(11) Technology risk.--The term ``technology risk'' means
risk of project failure generally considered by lenders due to
the lack of operating applications of the technology.
SEC. 4. ENERGY TECHNOLOGY DEPLOYMENT GOALS.
(a) Goals.--Not later than 1 year after the date of enactment of
this Act, the Secretary, after consultation with the Advisory Council,
shall develop and publish near-, medium-, and long-term goals for the
deployment of clean energy technologies through the Corporation to
establish or promote--
(1) sufficient electric generating capacity using clean
energy technologies to meet the energy needs of the United
States;
(2) clean energy technologies in vehicles and fuels that
will end the reliance of the United States on foreign sources
of energy and insulate consumers from the price shocks of world
energy markets;
(3) a domestic commercialization and manufacturing capacity
that will establish the United States as a world leader in
clean energy technologies across multiple sectors;
(4) installation of sufficient infrastructure to allow for
the cost-effective deployment of clean energy technologies in
each region of the United States;
(5) the transformation of the building stock of the United
States to zero net energy consumption;
(6) the recovery, use, and prevention of waste energy in
the industrial sector;
(7) domestic manufacturing of clean energy technologies on
a scale that is sufficient to make the cost to the consumer
less than current technologies;
(8) domestic production of raw materials (such as steel,
cement, and iron) using clean energy technologies so that the
United States will become a world leader in sustainable
production of the materials;
(9) a robust, efficient, and interactive electricity
transmission grid that will allow for the implementation of
clean energy technologies, distributed generation, and demand-
response in each State; and
(10) such other goals as the Secretary and Advisory Council
determine to be consistent with the purposes of this Act.
(b) Performance Targets.--Taking into account the goals established
under subsection (a), the Advisory Council shall publish 5- and 10-year
numerical targets, and annual interim targets, to guide and measure the
performance of the Corporation toward supporting the deployment of
clean energy technologies and achieving other goals developed under
that subsection.
(c) Initial Targets.--Until the first publication by the Advisory
Council of targets under subsection (b), in establishing the deployment
priorities of the Corporation, the Corporation shall consider
deploying--
(1) commercial-scale carbon capture and storage from
electricity generation capturing at least 10,000,000 short tons
per year by 2015;
(2) solar photovoltaic systems with a power production cost
of 14 cents per kilowatt-hour;
(3) concentrated solar power systems with a power
production cost of 6 cents per kilowatt-hour;
(4) wind power systems greater than 100 kilowatts with a
power production cost of--
(A) 3.6 cents per kilowatt-hour by 2012 for land-
based sites with average wind speeds of 13 miles per
hour; and
(B) 5 cents per kilowatt-hour by 2015 for offshore
wind systems with average wind speeds of 15 miles per
hour;
(5) new enhanced geothermal systems generation capacity
with a power production cost of 5 cents per kilowatt-hour by
2023;
(6) technologies to realize a 20 percent improvement in
energy intensity by energy-intensive industries by 2020; and
(7) advanced energy systems to achieve net-zero energy use
in new residential and commercial buildings by 2025 through a
60 percent-reduction in building energy use.
(d) Portfolio Requirement.--To the extent practicable and
consistent with the purpose of this Act, not less than 75 percent of
the support provided by the Corporation under this section shall be for
breakthrough technologies.
(e) Revisions.--
(1) Goals.--The Secretary shall revise the goals
established under subsection (a), from time to time as
appropriate, to account for advances in technology and changes
in energy policy.
(2) Performance targets.--The Advisory Council shall revise
the performance targets under subsection (b), from time to time
as appropriate, to account for advances in technology and
changes in energy policy.
SEC. 5. 21ST CENTURY ENERGY DEPLOYMENT CORPORATION.
(a) Establishment.--
(1) In general.--There is established the 21st Century
Energy Deployment Corporation, which shall be a body corporate
under the direction of a Board of Directors.
(2) Board of directors.--Subject to other provisions of law
(including regulations), the Board of Directors shall determine
the general policies that govern the operations of the
Corporation.
(3) Offices.--
(A) Principal office.--The Corporation shall--
(i) maintain the principal office of the
Corporation in the District of Columbia; and
(ii) for purposes of venue in civil
actions, be considered to be a resident of the
District of Columbia.
(B) Other agencies and offices.--The Corporation
may establish other agencies or offices in such other
places as the Corporation considers necessary or
appropriate for the conduct of the business of the
Corporation.
(b) Board of Directors.--
(1) In general.--The Board of Directors shall consist of--
(A) the Secretary, who shall serve an ex-officio
member of the Board; and
(B) 9 members who shall--
(i) be appointed by the President for
staggered 4-year terms, as determined by the
President; and
(ii) have experience in banking or
financial services relevant to the operations
of the Corporation, including--
(I) at least 1 individual with
substantial experience in the
development of energy projects;
(II) at least 1 individual with
experience in the electric utility
industry; and
(III) at least 1 individual with
experience in the banking industry.
(2) Removal.--Any appointed member of the Board of
Directors may be removed from office by the President for good
cause.
(3) Vacancies.--Any appointive seat on the Board of
Directors that becomes vacant shall be filled by appointment by
the President, but only for the unexpired portion of the term.
(4) Compensation; travel expenses.--A member of the Board
of Directors shall not be compensated for service on the Board
of Directors but shall be allowed travel expenses, including
per diem in lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of title
5, United States Code, while away from the home or regular
place of business of the member in the performance of the
duties of the Board of Directors.
(c) Energy Technology Advisory Council.--
(1) In general.--The Corporation shall have an Energy
Technology Advisory Council consisting of--
(A) 5 members selected by the Secretary; and
(B) 3 members selected by the Board of Directors.
(2) Qualifications.--The members of the Advisory Council
shall--
(A) have relevant scientific expertise; and
(B) include representatives of--
(i) the academic community;
(ii) the private research community; and
(iii) National Laboratories.
(3) Duties.--The Advisory Council shall--
(A) develop a rating system for projects and clean
energy technologies to determine how well the projects
and clean energy technologies address the purpose of
this Act and establish a priority for the projects and
clean energy technologies for financial assistance
under this Act, taking into account--
(i) the extent to which a project or clean
energy technology will enhance the energy
security of the United States;
(ii) the potential the project or clean
energy technology has to enhance the
competitiveness of the United States in
providing energy technologies likely to be in
demand throughout the world;
(iii) the potential benefits of the project
or clean energy technology in averting climate
change; and
(iv) the potential of the technology, once
deployed, to become financially self-
sustaining;
(B) advise on the technological approaches that
should be supported by the Corporation to meet the
technology deployment goals established by the
Secretary; and
(C) set risk and default rate targets for
individual technologies, such that the maximum
practicable ratio of breakthrough technologies to novel
technologies is developed.
(4) Term.--
(A) In general.--Members of the Advisory Council
shall have 3-year staggered terms, as determined by the
Secretary and the Board of Directors.
(B) Reappointment.--A member of the Advisory
Council may be reappointed.
(5) Compensation.--A member of the Advisory Council shall
serve without compensation but shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for an employee of an agency under subchapter I of
chapter 57 of title 5, United States Code, while away from the
home or regular place of business of the member in the
performance of the duties of the Advisory Council.
SEC. 6. CLEAN ENERGY TECHNOLOGY DEPLOYMENT SECURITIZATION.
(a) In General.--The Corporation may purchase, and make commitments
to purchase, any debt instrument associated with the deployment of
clean energy technologies.
(b) Disposition of Debt or Interest.--The Corporation may hold and
deal with, and sell or otherwise dispose of, pursuant to commitments or
otherwise, any debt described in subsection (a) or interest in the
debt.
(c) Pricing.--
(1) In general.--The Corporation may establish
requirements, and impose charges or fees, which may be regarded
as elements of pricing, for different classes of sellers or
services.
(2) Classification of sellers.--For the purpose of
paragraph (1), the Corporation may classify sellers as
necessary to promote transparency and liquidity and properly
characterize the risk of default.
(d) Eligibility.--The Corporation shall establish criteria and
mechanisms such that, to the maximum extent practicable, sellers will
be able to determine the eligibility of loans for resale at the time of
initial lending.
(e) Aggregation of Small Scale Projects.--The Corporation shall
work with Federal, State, local, and private sector entities to develop
debt instruments that aggregate projects for clean energy technology
deployments on a residential or small commercial scale.
(f) Securitization.--
(1) In general.--The Corporation may lend on the security
of, and make commitments to lend on the security of, any debt
that the Corporation is authorized to purchase under this
section.
(2) Authorized actions.--On such terms and conditions as
the Corporation may prescribe, the Corporation may--
(A) borrow;
(B) give security;
(C) pay interest or other return; and
(D) issue notes, debentures, bonds, or other
obligations or securities.
(g) Lending Activities.--
(1) In general.--The Corporation shall determine--
(A) the volume of the lending activities of the
Corporation; and
(B) the type of loan ratios, risk profiles,
interest rates, maturities, and charges or fees in the
secondary market operations of the Corporation.
(2) Objectives.--Determinations under paragraph (1) shall
be consistent with the objectives of--
(A) providing an attractive investment environment
for clean energy technologies;
(B) making the operations of the Corporation self-
supporting over the long term; and
(C) meeting the targets established by the Advisory
Council.
(h) No Federal Guarantee.--The Corporation shall insert appropriate
language in all of the obligations and securities of the Corporation
issued under this section that clearly indicates that the obligations
and securities (together with the interest)--
(1) are not guaranteed by the United States; and
(2) do not constitute a debt or obligation of the United
States or any agency or instrumentality other than the
Corporation.
(i) Exempt Securities.--All securities issued or guaranteed by the
Corporation shall, to the same extent as securities that are direct
obligations of or obligations guaranteed as to principal or interest by
the United States, be considered to be exempt securities within the
meaning of the laws administered by the Securities and Exchange
Commission.
(j) Other Authorized Programs.--
(1) In general.--The Secretary may contract with the
Corporation to provide financial services and program
management for grant, loan, and other credit enhancement
programs authorized under any other provision of law.
(2) Administration.--In administering any other program
under contract with the Secretary, the Corporation shall, to
the maximum extent practicable (as determined by the
Corporation)--
(A) administer the program in a manner that is
consistent with the terms and conditions of this Act;
and
(B) minimize the administrative costs to the
Federal Government.
SEC. 7. FEDERAL OWNERSHIP OF OBLIGATIONS.
(a) In General.--In order to maintain sufficient liquidity, the
Corporation may issue notes, debentures, bonds, or other obligations
for purchase by the Secretary of the Treasury.
(b) Public Debt Transactions.--For the purpose of subsection (a)--
(1) the Secretary of the Treasury may use as a public debt
transaction the proceeds of the sale of any securities issued
under chapter 31 of title 31, United States Code; and
(2) the purposes for which securities may be issued under
that chapter are extended to include any purchase under this
subsection.
(c) Maximum Outstanding Holding.--The Secretary of the Treasury
shall not purchase any obligations under this section if the purchase
would increase the aggregate principal amount of the outstanding
holdings of obligations under this section by the Secretary to an
amount that is greater than $1,500,000,000.
(d) Rate of Return.--Each purchase of obligations by the Secretary
of the Treasury under this section shall be on terms and conditions
established to yield a rate of return determined by the Secretary to be
appropriate, taking into account the current average rate on
outstanding marketable obligations of the United States as of the last
day of the month preceding the purchase.
(e) Sale of Obligations.--The Secretary of the Treasury may at any
time sell, on terms and conditions and at prices determined by the
Secretary, any of the obligations acquired by the Secretary under this
section.
(f) Public Debt Transactions.--All redemptions, purchases, and
sales by the Secretary of the Treasury of obligations under this
section shall be treated as public debt transactions of the United
States.
SEC. 8. GENERAL PROVISIONS.
(a) Immunity From Impairment, Limitation, or Restriction.--
(1) In general.--All rights and remedies of the Corporation
(including any rights and remedies of the Corporation on,
under, or with respect to any mortgage or any obligation
secured by a mortgage) shall be immune from impairment,
limitation, or restriction by or under--
(A) any law (other than a law enacted by Congress
expressly in limitation of this paragraph) that becomes
effective after the acquisition by the Corporation of
the subject or property on, under, or with respect to
which the right or remedy arises or exists or would so
arise or exist in the absence of the law; or
(B) any administrative or other action that becomes
effective after the acquisition.
(2) State law.--The Corporation may conduct the business of
the Corporation without regard to any qualification or law of
any State relating to incorporation.
(b) Powers.--Subject to subsection (c), the Corporation shall have
all the powers of a private corporation incorporated under the District
of Columbia Business Corporation Act (D.C. Code, sec. 29 et seq.).
(c) Administration.--
(1) Performance-based compensation.--A significant portion
of potential compensation of all executive officers of the
Corporation shall be based on the performance of the
Corporation, all without regard to any other law except as may
be provided by the Corporation or by a law enacted after the
date of enactment of this Act that expressly limits this
paragraph.
(2) Use of other agencies.--With the consent of a
department, establishment, or instrumentality (including any
field office), the Corporation may--
(A) use and act through any department,
establishment, or instrumentality;
(B) use, and pay compensation for, information,
services, facilities, and personnel of the department,
establishment, or instrumentality.
(d) Financial Matters.--
(1) Investments.--Funds of the Corporation may be invested
in such investments as the Board of Directors may prescribe.
(2) Fiscal agents.--
(A) In general.--Any Federal Reserve bank or any
bank as to which at the time of the designation of the
bank by the Corporation there is outstanding a
designation by the Secretary of the Treasury as a
general or other depository of public money, may be
designated by the Corporation as a depositary or
custodian or as a fiscal or other agent of the
Corporation.
(B) Depositary of public money.--If designated for
that purpose by the Secretary of the Treasury, the
Corporation--
(i) shall be a depositary of public money,
under such regulations as may be promulgated by
the Secretary of the Treasury;
(ii) may also be employed as a fiscal or
other agent of the United States; and
(iii) shall perform all such reasonable
duties of such depositary or agent as may be
required.
(e) Taxation.--
(1) In general.--Subject to paragraph (2), the Corporation
(including the franchise, activities, capital, reserves,
surplus, and income of the Corporation) shall be exempt from
all taxation imposed by any State or local political
subdivision of a State.
(2) Real property.--Any real property of the Corporation
shall be subject to taxation by a State or political
subdivision of a State to the same extent according to the
value of the real property as other real property is taxed.
(f) Jurisdiction.--Notwithstanding section 1349 of title 28, United
States Code, or any other provision of law--
(1) the Corporation shall be considered an agency covered
by sections 1345 and 1442 of title 28, United States Code;
(2) all civil actions to which the Corporation is a party
shall be considered to arise under the laws of the United
States, and the district courts of the United States shall have
original jurisdiction of all such actions, without regard to
amount or value; and
(3) any civil or other action, case or controversy in a
court of a State, or in any court other than a district court
of the United States, to which the Corporation is a party may
at any time before trial be removed by the Corporation, without
the giving of any bond or security and by following any
procedure for removal of causes in effect at the time of the
removal--
(A) to the district court of the United States for
the district and division embracing the place in which
the same is pending; or
(B) if there is no such district court, to the
district court of the United States for the district in
which the principal office of the Corporation is
located.
(g) Annual Reports.--Not later than 1 year after incorporation of
the Corporation and annually thereafter, the Corporation shall submit
to the Committee on Energy and Natural Resources of the Senate and the
Committee on Energy and Commerce in the House a report that includes--
(1) a description of--
(A) the technologies supported by activities of the
Corporation and how the activities advance the purposes
of this Act;
(B) the performance of the Corporation on meeting
the goals established by the Secretary;
(C) the comparability of the compensation policies
of the Corporation with the compensation policies of
other similar businesses;
(D) in the aggregate, the percentage of total cash
compensation and payments under employee benefit plans
(which shall be defined in a manner consistent with the
proxy statement of the Corporation for the annual
meeting of shareholders for the preceding year) earned
by executive officers of the Corporation during the
preceding year that was based on the performance of the
Corporation; and
(E) the comparability of the financial performance
of the Corporation with the performance of other
similar businesses; and
(2) the proxy statement of the Corporation for the annual
meeting of shareholders for the preceding year.
(h) Audits by the Comptroller General.--
(1) In general.--The programs, activities, receipts,
expenditures, and financial transactions of the Corporation
shall be subject to audit by the Comptroller General of the
United States under such rules and regulations as may be
prescribed by the Comptroller General.
(2) Access.--The representatives of the Government
Accountability Office shall--
(A) have access to the personnel and to all books,
accounts, documents, records (including electronic
records), reports, files, and all other papers,
automated data, things, or property belonging to, under
the control of, or in use by the Corporation and
necessary to facilitate the audit;
(B) be afforded full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians;
(C) be authorized to obtain and duplicate any such
books, accounts, documents, records, working papers,
automated data and files, or other information relevant
to the audit without cost to the Comptroller General;
and
(D) have the right of access of the Comptroller
General to such information be enforceable pursuant to
section 716(c) of title 31, United States Code.
(3) Report.--
(A) In general.--The Comptroller General shall
submit to Congress a report on each audit conducted
under this subsection.
(B) Contents.--The report shall include a
description of--
(i) the scope of the audit;
(ii) any surplus or deficit;
(iii) income and expenses;
(iv) sources and application of funds;
(v) such comments and information as is
necessary to inform Congress of the financial
operations and condition of the Corporation;
and
(vi) any recommendations as the Comptroller
General considers appropriate.
(4) Assistance and cost.--
(A) In general.--For the purpose of conducting an
audit under this subsection, the Comptroller General
may, in the discretion of the Comptroller General,
employ by contract, without regard to section 3709 of
the Revised Statutes (41 U.S.C. 5), professional
services of firms and organizations of certified public
accountants for temporary periods or for special
purposes.
(B) Reimbursement.--On the request of the
Comptroller General, the Corporation shall reimburse
the General Accountability Office for the full cost of
any audit conducted by the Comptroller General under
this subsection.
(i) Annual Independent Audit.--
(1) In general.--The Corporation shall have an annual
independent audit made of the financial statements of the
Corporation by an independent public accountant in accordance
with generally accepted auditing standards.
(2) Content.--In conducting an audit under this subsection,
the independent public accountant shall determine and report on
whether the financial statements of the Corporation--
(A) are presented fairly in accordance with
generally accepted accounting principles; and
(B) to the extent determined necessary by the
Director, comply with any disclosure requirements
imposed under this Act.
SEC. 9. OVERSIGHT BY THE SECRETARY.
(a) Duties.--The Secretary shall--
(1) oversee the operations of the Corporation; and
(2) ensure that--
(A) the Corporation operates in a safe and sound
manner, including maintenance of adequate capital and
internal controls;
(B) the operations and activities of the
Corporation foster liquid, efficient, competitive, and
resilient energy finance markets;
(C) the Corporation carries out the statutory
mission of the Corporation only through activities that
are authorized under and consistent with this Act; and
(D) the activities of the Corporation and the
manner in which the Corporation is operated is
consistent with the public interest.
(b) Financial Reports.--
(1) In general.--The Corporation shall submit to the
Secretary annual and quarterly reports of the financial
condition and operations of the Corporation which shall be in
such form, contain such information, and be submitted on such
dates as the Secretary shall require.
(2) Contents of annual reports.--Each annual report shall
include--
(A) financial statements prepared in accordance
with generally accepted accounting principles;
(B) any supplemental information or alternative
presentation that the Secretary may require; and
(C) an assessment (as of the end of the most recent
fiscal year of the Corporation), signed by the chief
executive officer and chief accounting or financial
officer of the Corporation, of--
(i) the effectiveness of the internal
control structure and procedures of the
Corporation; and
(ii) the compliance of the Corporation with
designated safety and soundness laws.
(3) Special reports.--The Secretary may require the
Corporation to submit other reports on the condition (including
financial condition), management, activities, or operations of
the Corporation, as the Secretary considers appropriate.
(4) Accuracy.--Each report of financial condition shall
contain a declaration by the president, vice president,
treasurer, or any other officer designated by the Board of
Directors of the Corporation to make the declaration, that the
report is true and correct to the best of the knowledge and
belief of the officer.
(c) Management and Operation Standards.--The Secretary shall
establish standards, by regulation or guideline, for the Corporation
relating to--
(1) the adequacy of internal controls and information
systems;
(2) the independence and adequacy of internal audit
systems;
(3) the management of market risk, including standards to
provide for systems that measure, monitor, and control market
risks and, as warranted, to establish limitations on market
risk;
(4) risk management processes, including the adequacy of
oversight by senior management and the Board of Directors and
of processes and policies to measure, monitor, and control
material risks, including reputational risks, and for adequate,
well-tested business resumption plans in the case of disruptive
events;
(5) the management of credit and counterparty risk,
including systems to identify concentrations of credit risk and
prudential limits to restrict the exposure of the Corporation
to a single counterparty or groups of related counterparties;
(6) the maintenance of adequate records, in accordance with
consistent accounting policies and practices to enable the
Secretary to evaluate the financial condition of the
Corporation; and
(7) such other operational and management standards as the
Secretary determines to be appropriate.
(d) Failure To Meet Standards.--
(1) In general.--If the Secretary determines that the
Corporation fails to meet any standard established under
subsection (c), the Secretary may require the Corporation to
submit an acceptable plan to the Secretary within a reasonable
time that specifies the actions that the Corporation will take
to correct the deficiency.
(2) Required order on failure to submit or implement
plan.--If the Corporation fails to submit an acceptable plan
within the time specified by the Secretary or fails in any
material respect to implement a plan accepted by the Secretary,
the Secretary shall, by order, require the Corporation to
correct the deficiency.
(e) Prohibition and Withholding of Executive Compensation.--
(1) In general.--The Secretary shall prohibit the
Corporation from providing compensation to any executive
officer that is not reasonable and comparable with compensation
for employment in other similar businesses (including other
publicly held financial institutions or major financial
services companies) involving similar duties and
responsibilities.
(2) Factors.--In making any determination under paragraph
(1), the Secretary may take into consideration any factors the
Secretary considers relevant, including any wrongdoing on the
part of the executive officer.
(3) Withholding of compensation.--In carrying out paragraph
(1), the Secretary may require the Corporation to withhold any
payment, transfer, or disbursement of compensation to an
executive officer, or to place such compensation in an escrow
account, during the review of reasonableness and comparability
of compensation.
(4) Prohibition of setting compensation.--In carrying out
paragraph (1), the Secretary may not prescribe or set a
specific level or range of compensation.
SEC. 10. ISSUANCE OF COMMON STOCK TO EXPAND OPERATIONS.
(a) In General.--Not later than 5 years after the date of enactment
of this Act, the Corporation may prepare a strategic plan for issuing
common stock to raise the capital needed to expand the operations of
the Corporation in carrying out this Act.
(b) Consideration of Alternatives for Governance.--The strategic
plan shall include consideration of alternatives for restructuring the
Board of Directors to allow for a majority of the Members to be
selected by voting common stockholders.
(c) Evaluation and Recommendation.--The strategic plan shall--
(1) evaluate the relative merits of the alternatives
considered; and
(2) include the recommendation of the Corporation on a
proposed alternative.
(d) Transmittal.--On completion of the strategic plan, the
Corporation shall submit copies of the strategic plan to the President
and Congress, along with any recommendations for legislative changes
required to implement the plan.
(e) Implementation.--Subject to subsections (f) and (g), subsequent
to submitting a strategic plan pursuant to this section, the
Corporation may implement the strategic plan.
(f) Requirement for Presidential Approval.--The Corporation may not
implement the strategic plan without the approval of the President.
(g) Notification of Congress.--
(1) In general.--The Corporation shall notify Congress of
any intent to implement the strategic plan if the Corporation
determines, in consultation with the Secretary and other
appropriate agencies of the United States, that no further
legislation is required for the implementation.
(2) Implementation.--The Corporation may not implement the
strategic plan under this subsection earlier than 60 days after
notification of Congress.
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