Statements On Introduced Bills And Joint Resolutions

Floor Speech

By Mrs. FEINSTEIN (for herself and Mr. BROWN of Ohio):

S. 3336. A bill to amend the internal Revenue Code of 1986 to provide for the treatment of bonds issued to finance renewable energy resources facilities, conservation and efficiency facilities, and other specified greenhouse gas emission technologies; to the Committee on Finance.

Mrs. FEINSTEIN. Mr. President, I rise to introduce the Private Activity Renewable Energy Bonds Act, legislation to enable low-cost Private Activity Bond financing for businesses and local governments which seek to create renewable, clean and efficient sources of energy.

The bill is cosponsored by Senator Brown of Ohio. In the United States House of Representatives, Congressman Mike Thompson has introduced a bipartisan companion bill cosponsored by Representatives Dean Heller and Mary Bono Mack.

The bill is supported by a host of business and government leaders and renewable energy companies including the Solar Energy Industries Association, Solar Millennium, Nano Solar, the National Association of Energy Service Companies, EnLink GeoEnergy, Johnson Controls, A123 Systems, the Center for Energy Efficiency and Renewable Technologies, and the U.S. Fuel Cell Council, as well as California Treasurer Bill Lockyer.

The bill provides businesses access to low interest tax free Private Activity Bonds, in order to fund projects that generate renewable energy; produce energy or water savings, or; develop highly efficient vehicles.

To promote such activity in a fiscally responsible manner, the legislation caps the value of bonds at $2.5 billion annually. This represents the investment necessary to replace at least one percent of U.S. electricity generation with renewable sources over the next ten years.

Private Activity Bonds have long been used to generate private involvement and investment in critically important infrastructure for our Nation--from wharves to airports, intercity rail to solid waste disposal facilities and hospitals.

In this century, however, we have new national goals.

Renewable, clean and efficient energy projects will produce jobs, get our economy back-on-track and sustain us as the global leader of a greener century.

These projects, however, require significant front-end capital investment to which the federal government cannot be the sole provider. Private Activity Bonds can prove a critical tool in garnering private investment, because their interest rates typically run a few percent points under commercially available loans.

Investors have long responded to this type of incentive. According to the IRS, Private Activity Bond issuance in 2007 was over $130 billion--supplying capital to our markets, providing the financing to get projects off the ground.

Projects financed in part by Private Activity Bonds include additions to the San Jose and San Francisco International Airports, the Capitol Beltway High Occupancy Vehicle lanes, infrastructure improvements to the Port of Seattle, and upgrades to Children's Hospital of Orange County, Catholic Healthcare West in San Francisco, and many, many important facilities and projects.

With proper access to capital, we've already seen partnerships between States, municipalities and businesses develop into successful renewable energy programs.

In California, Energy Financing Districts finance residents who choose to install clean energy projects such as distributed solar panels on their homes.

The cost of the solar panel installation or other device is paid back through an increase in property tax only for those property owners who choose to participate in the program.

Now, going solar or installing a geothermal heat pump, which once cost tens of thousands of dollars upfront, has little or no upfront cost to the property owner. It is no wonder why 150 of these programs have been established throughout the country.

This low cost solar opportunity is just one example of the type of programs this bill seeks to support. In partnership, businesses and local governments will develop new and innovative was to create the new high quality jobs of the 21st century.

This Congress and this President have outlined goals to ensure this country leads the world in the creation of a robust, green economy.

This bill looks to connect that laudable goal with proven financing tools to get us there by aligning private sector investment power and job growth with good public policy.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

There being no objection, the text of the bill was ordered to be printed in the Record

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