1Amending Title 64 (Public Authorities and Quasi-Public
2Corporations) of the Pennsylvania Consolidated Statutes, in
3Commonwealth Financing Authority, further providing for
4indebtedness; and establishing the Energy Independence Bond
5Guarantee Program.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 1543(b) and (d) of Title 64 of the
9Pennsylvania Consolidated Statutes are amended to read:

10§ 1543. Indebtedness.

11* * *

12(b) Program limitations.--Indebtedness incurred by the
13authority under subsection (a) shall not, in aggregate, exceed
14any of the following:

15(1) $300,000,000 for the program established in section
161551 (relating to Business in Our Sites Program).

17(2) $150,000,000 for the program established in section
181552 (relating to First Industries Program).

19(3) $60,000,000 for the program established in section

11557 (relating to New Pennsylvania Venture Capital Investment
2Program).

3(4) $150,000,000 for the program established in section
41555 (relating to Building Pennsylvania Program).

5(5) $75,000,000 for the program established in 12 
6Pa.C.S. Ch. 29.

7(6) $250,000,000 for the program established in section
81554 (relating to New Pennsylvania Venture Guarantee
9Program).

10(7) $100,000,000 for the program established in section
111556 (relating to Tax Increment Financing Guarantee Program).

12(8) $50,000,000 for the program established in section
131553 (relating to Second Stage Loan Program).

14(9) $1,000,000,000 for the program established in
15section 1559 (relating to Energy Independence Bond Guarantee
16Program).

17* * *

18(d) Exception.--Subsection (c) shall not apply to the
19aggregate amount of indebtedness incurred by the authority,
20including through the issuance of bonds, for the following
21programs:

22(1) The program established in section 1553.

23(2) The program established in section 1554.

24(3) The program established in section 1556.

25(4) The program established in section 1559.

26* * *

27Section 2. Title 64 is amended by adding a section to read:

28§ 1559. Energy Independence Bond Guarantee Program.

29(a) Establishment.--There is established a program to be
30known as the Energy Independence Bond Guarantee Program. The

1program shall guarantee the payment of energy independence bonds
2issued by public utilities to the public, if the public
3utilities agree to requirements provided under this section and
4by the authority.

5(b) Guarantee applications.--A public utility may submit an
6application to the authority requesting a guarantee of payment
7for energy independence bonds issued by the public utility to
8the public. The application shall be on a form required by the
9board and shall include or demonstrate all of the following:

10(1) The applicant's name and address.

11(2) The resumes of the individuals responsible for the
12infrastructure development project decisions of the
13applicant.

14(3) A history of the applicant's infrastructure
15development.

16(4) The location of all infrastructure development
17projects intended to be financed in whole or in part by
18proceeds from energy independence bonds issued by the
19applicant.

20(5) That the revenues to be realized from the
21infrastructure development projects will be sufficient to
22offset the amount of debt service to be paid on the energy
23independence bonds.

24(6) The amount of the guarantee sought.

25(7) A listing of banks with which the applicant intends
26to enter into an agreement or has already entered into an
27agreement for selling the energy independence bonds of the
28applicant to the public.

29(8) A statement of the fees or other payment proposed to
30be paid to the authority by the applicant as consideration

1for the issuance of a guarantee.

2(9) Any other information required by the board.

3(c) Application review.--The board shall review the
4application to determine all of the following:

5(1) That the applicant intends to issue energy
6independence bonds meeting the requirements of this section.

7(2) That the applicant will provide the board with its
8annual financial statements, audited by a nationally
9recognized independent certified public accountant, for the
10duration of the guarantee. Financial statements shall be
11prepared in accordance with generally accepted accounting
12principles.

13(3) That the board will have the ability to determine
14that the subject of a proposed infrastructure development
15project using proceeds from the energy independence bonds is
16acceptable to the board prior to the applicant expending the
17proceeds.

18(4) That the applicant has complied with all other
19requirements established by the board.

20(d) Approval of guarantee.--Upon being satisfied that all
21requirements have been met, the board may approve the
22application and, if approved, the authority shall execute a
23guarantee agreement in favor of the applicant. In addition to
24any other terms and conditions required by the board, the
25guarantee agreement shall provide for all of the following:

26(1) Each energy independence bond shall have a face
27value of $100 and shall state on its face that repayment is
28guaranteed by the authority.

29(2) The energy independence bonds shall be sold by the
30applicant at its offices and at financial institutions in

1this Commonwealth that have entered into an agreement with
2the applicant for that purpose, which agreement provides that
3the financial institution may not receive more than 1% of the
4proceeds from each energy independence bond sold.

5(3) The applicant shall provide the authority with the
6right to inspect the infrastructure development projects
7supported by the proceeds from the energy independence bonds.

8(4) The applicant shall not permit any work on the
9infrastructure development projects to be conducted outside
10this Commonwealth and shall only use materials produced in
11the United States unless the authority grants a waiver from
12the requirements of this paragraph in writing.

13(5) The procedure under which the holder of an energy
14independence bond may submit a claim for payment under the
15guarantee agreement if the applicant is unable to do so.

16(6) A provision that the guarantee will cover the face
17amount of the energy independence bond.

18(7) A procedure and schedule for the periodic
19reconciliation of amounts payable under the guarantee.

20(8) A prohibition against the transfer of the benefits
21of the guarantee to another person without the prior approval
22of the board.

23(9) If the authority makes payment on a claim submitted
24by the holder of an energy independence bond, the authority
25may assume all rights and privileges previously belonging to
26the bondholder and may renegotiate the terms of the repayment
27of the debt guaranteed by the authority under terms as the
28authority deems appropriate.

29(e) Limitations.--

30(1) The liability of the authority for any guarantee

1approved under this section shall be limited to the approved
2amount of that guarantee.

3(2) The board may approve guarantees under this section
4not to exceed $1,000,000,000 in the aggregate for public
5utilities. No public utility shall receive more than
6$300,000,000 in guarantees under this section.

7(3) Applications for guarantees may be accepted until
8July 1, 2014, or until the aggregate of approved guarantees
9equals $1,000,000,000, whichever occurs first.

10(4) No individual may purchase more than ten energy
11independence bonds issued by any public utility.

12Section 3. This act shall take effect in 60 days.