[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2548 Referred in Senate (RFS)]
113th CONGRESS
2d Session
H. R. 2548
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 12, 2014
Received; read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
AN ACT
To establish a comprehensive United States Government policy to
encourage the efforts of countries in sub-Saharan Africa to develop an
appropriate mix of power solutions, including renewable energy, for
more broadly distributed electricity access in order to support poverty
reduction, promote development outcomes, and drive economic growth, 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 ``Electrify Africa Act of 2014''.
SEC. 2. PURPOSE.
The purpose of this Act is to encourage the efforts of countries in
sub-Saharan Africa to improve access to affordable and reliable
electricity in Africa in order to unlock the potential for economic
growth, job creation, food security, improved health, education and
environmental outcomes, and poverty reduction.
SEC. 3. FINDINGS.
Congress finds that--
(1) 589,000,000 people in sub-Saharan Africa, or 68 percent
of the population, did not have access to electricity, as of
2010;
(2) in sub-Saharan Africa, electricity services are highly
unreliable and they are at least twice as expensive for those
with electricity access compared to other emerging markets;
(3) lack of access to electricity services
disproportionally affects women and girls, who often shoulder
the burden of seeking sources of heat and light such as dung,
wood or charcoal and are often more exposed to the associated
negative health impacts. Women and girls also face an increased
risk of assault from walking long distances to gather fuel
sources;
(4) access to electricity creates opportunities, including
entrepreneurship, for people to work their way out of poverty;
(5) a lack of electricity contributes to the high use of
inefficient and often highly polluting fuel sources for indoor
cooking, heating, and lighting that produce toxic fumes
resulting in more than 3,000,000 annual premature deaths from
respiratory disease, more annual deaths than from HIV/AIDS and
malaria in sub-Saharan Africa;
(6) electricity access is crucial for the cold storage of
vaccines and anti-retroviral and other lifesaving medical
drugs, as well as the operation of modern lifesaving medical
equipment;
(7) electricity access can be used to improve food security
by enabling post-harvest processing, pumping, irrigation, dry
grain storage, milling, refrigeration, and other uses;
(8) reliable electricity access can provide improved
lighting options and information and communication
technologies, including Internet access and mobile phone
charging, that can greatly improve health, social, and
education outcomes, as well as economic and commercial
possibilities;
(9) sub-Saharan Africa's consumer base of nearly one
billion people is rapidly growing and will create increasing
demand for United States goods, services, and technologies, but
the current electricity deficit in sub-Saharan Africa limits
this demand by restricting economic growth on the continent;
(10) approximately 30 African countries face endemic power
shortages, and nearly 70 percent of surveyed African businesses
cite unreliable power as a major constraint to growth;
(11) the Millennium Challenge Corporation's work in the
energy sector shows high projected economic rates of return
that translate to sustainable economic growth and that the
highest returns are projected when infrastructure improvements
are coupled with significant legislative, regulatory,
institutional, and policy reforms;
(12) in many countries, weak governance capacity,
regulatory bottlenecks, legal constraints, and lack of
transparency and accountability can stifle the ability of
private investment to assist in the generation and distribution
of electricity; and
(13) without new policies and more effective investments in
electricity sector capacity to increase and expand electricity
access in sub-Saharan Africa, over 70 percent of the rural
population, and 48 percent of the total population, will
potentially remain without access to electricity by 2030.
SEC. 4. STATEMENT OF POLICY.
Congress declares that it is the policy of the United States--
(1) in consultation with sub-Saharan African governments,
to encourage the private sector, international community,
African Regional Economic Communities, philanthropies, civil
society, and other governments to promote--
(A) the installation of at least an additional
20,000 megawatts of electrical power in sub-Saharan
Africa by 2020 to support poverty reduction, promote
development outcomes, and drive economic growth;
(B) first-time direct access to electricity for at
least 50,000,000 people in sub-Saharan Africa by 2020
in both urban and rural areas;
(C) efficient institutional platforms with
accountable governance to provide electrical service to
rural and underserved areas; and
(D) the necessary in-country legislative,
regulatory and policy reforms to make such expansion of
electricity access possible; and
(2) to encourage private sector and international support
for construction of hydroelectric dams in sub-Saharan Africa
that--
(A) offer low-cost clean energy consistent with--
(i) the national security interests of the
United States; and
(ii) best international practices regarding
social and environmental safeguards,
including--
(I) engagement of local communities
regarding the design, implementation,
monitoring, and evaluation of such
projects;
(II) the consideration of energy
alternatives, including distributed
renewable energy; and
(III) the development of
appropriate mitigation measures; and
(B) support partner country efforts.
SEC. 5. DEVELOPMENT OF A COMPREHENSIVE, MULTIYEAR STRATEGY.
(a) Strategy.--The President shall establish a comprehensive,
integrated, multiyear policy, partnership, and funding strategy to
encourage countries in sub-Saharan Africa to develop an appropriate mix
of power solutions, including renewable energy, to provide sufficient
electricity access to people living in rural and urban areas in order
to alleviate poverty and drive economic growth. Such strategy shall
maintain sufficient flexibility and remain responsive to technological
innovation in the power sector.
(b) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall transmit to the
appropriate congressional committees a report setting forth the
strategy described in subsection (a).
(2) Report contents.--The report required by paragraph (1)
shall include a discussion of the elements described in
paragraph (3), and should include a discussion of any
additional elements relevant to the strategy described in
subsection (a).
(3) Report elements.--The elements referred to in paragraph
(2) are the following:
(A) The general and specific objectives of the
strategy described in subsection (a), the criteria for
determining success of the strategy, a description of
the manner in which the strategy will support partner
country efforts to increase production and improve
access to electricity, and criteria and indicators used
to select partner countries for focused engagement on
the power sector.
(B) Development, by partner country governments, of
plans and regulations at the national, regional, and
local level to increase power production, strengthen
existing electrical transmission and distribution
infrastructure, bolster accountable governance and
oversight, and improve access to electricity.
(C) Administration plans to support partner country
efforts to increase new access to electricity,
including a description of how the strategy will
address commercial and residential needs, as well as
urban and rural access.
(D) Administration strategy to support partner
country efforts to reduce government waste, fraud, and
corruption, and improve existing power generation
through improvement of existing transmission and
distribution systems, as well as the use of a broad
power mix, including renewable energy, and the use of a
distributed generation model.
(E) Administration policy to support partner
country efforts to attract private sector investment
and public sector resources.
(F) A description of the Administration's strategy
for the transfer of relevant technology, skills, and
information to increase local participation in the
long-term maintenance and management of the power
sector to ensure investments are sustainable and
transparent, including details of the programs to be
undertaken to maximize United States contributions in
the areas of technical assistance and training.
(G) An identification of the relevant executive
branch agencies that will be involved in carrying out
the strategy, the level and distribution of resources
that will be dedicated on an annual basis among such
agencies, timely and comprehensive publication of aid
information and available transmission of resource data
consistent with Administration commitments to implement
the transparency measures specified in the
International Aid Transparency Initiative by December
2015, the assignment of priorities to such agencies, a
description of the role of each such agency, and the
types of programs that each such agency will undertake.
(H) A description of the mechanisms that will be
utilized by the Administration, including the
International Aid Transparency Initiative, to
coordinate the efforts of the relevant executive branch
agencies in carrying out the strategy to avoid
duplication of efforts, enhance coordination, and
ensure that each agency undertakes programs primarily
in those areas where each such agency has the greatest
expertise, technical capabilities, and potential for
success.
(I) A description of the mechanisms that will be
established by the Administration for monitoring and
evaluating the strategy and its implementation,
including procedures for learning and sharing best
practices among relevant executive branch agencies, as
well as among participating countries, and for
terminating unsuccessful programs.
(J) A description of the Administration's
engagement plan, consistent with international best
practices, to ensure local and affected communities are
informed, consulted, and benefit from projects
encouraged by the United States, as well as the
environmental and social impacts of the projects.
(K) A description of the mechanisms that will be
utilized to ensure greater coordination between the
United States and foreign governments, international
organizations, African regional economic communities,
international fora, the private sector, and civil
society organizations.
(L) A description of how United States leadership
will be used to enhance the overall international
response to prioritizing electricity access for sub-
Saharan Africa and to strengthen coordination among
relevant international forums such as the Post-2015
Development Agenda and the G8 and G20, as well as the
status of efforts to support reforms that are being
undertaken by partner country governments.
(M) An outline of how the Administration intends to
partner with foreign governments, the international
community, and other public sector entities, civil
society groups, and the private sector to assist sub-
Saharan African countries to conduct comprehensive
project feasibility studies and facilitate project
development.
(N) A description of how the Administration intends
to help facilitate transnational and regional power and
electrification projects where appropriate.
SEC. 6. USAID.
(a) Loan Guarantees.--It is the sense of Congress that in pursuing
the policy goals described in section 4, the Administrator of USAID
should identify and prioritize--
(1) loan guarantees to local sub-Saharan African financial
institutions that would facilitate the involvement of such
financial institutions in power projects in sub-Saharan Africa;
and
(2) partnerships and grants for research, development, and
deployment of technology that would increase access to
electricity in sub-Saharan Africa.
(b) Grants.--It is the sense of Congress that the Administrator of
USAID should consider providing grants to--
(1) support the development and implementation of national,
regional, and local energy and electricity policy plans;
(2) expand distribution of electricity access to the
poorest; and
(3) build a country's capacity to plan, monitor and
regulate the energy and electricity sector.
(c) USAID Defined.--In this section, the term ``USAID'' means the
United States Agency for International Development.
SEC. 7. LEVERAGING INTERNATIONAL SUPPORT.
In pursuing the policy goals described in section 4, the President
should direct the United States' representatives to appropriate
international bodies to use the influence of the United States,
consistent with the broad development goals of the United States, to
advocate that each such body--
(1) commit to significantly increase efforts to promote
investment in well-designed power sector and electrification
projects in sub-Saharan Africa that increase energy access, in
partnership with the private sector and consistent with the
host countries' absorptive capacity;
(2) address energy needs of individuals and communities
where access to an electricity grid is impractical or cost-
prohibitive;
(3) enhance coordination with the private sector in sub-
Saharan Africa to increase access to electricity;
(4) provide technical assistance to the regulatory
authorities of sub-Saharan African governments to remove
unnecessary barriers to investment in otherwise commercially
viable projects; and
(5) utilize clear, accountable, and metric-based targets to
measure the effectiveness of such projects.
SEC. 8. OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) In General.--The Overseas Private Investment Corporation
should--
(1) in carrying out its programs and pursuing the policy
goals described in section 4, place a priority on supporting
investment in the electricity sector of sub-Saharan Africa,
including renewable energy, and implement procedures for
expedited review of and, where appropriate, approval of,
applications by eligible investors for loans, loan guarantees,
and insurance for such investments;
(2) support investments in projects and partner country
strategies to the extent permitted by its authorities,
policies, and programs, that will--
(A) maximize the number of people with new access
to electricity to support economic development;
(B) improve the generation, transmission, and
distribution of electricity;
(C) provide reliable and low-cost electricity,
including renewable energy and on-grid, off-grid, and
multi-grid solutions, to people living in rural and
urban communities;
(D) consider energy needs of individuals where
access to an electricity grid is impractical or cost-
prohibitive;
(E) reduce transmission and distribution losses and
improve end-use efficiency; and
(F) reduce energy-related impediments to business
and investment opportunity and success;
(3) encourage locally-owned, micro, small- and medium-sized
enterprises and cooperative service providers to participate in
investment activities in sub-Saharan Africa; and
(4) publish in an accessible digital format measurable
development impacts of its investments, including appropriate
quantifiable metrics to measure energy access at the individual
household, enterprise, and community level; and
(5) publish in an accessible digital format the amount,
type, location, duration, and measurable results, with links to
relevant reports and displays on an interactive map, where
appropriate, of all OPIC investments and financings.
(b) Amendments.--Title IV of chapter 2 of part I of the Foreign
Assistance Act of 1961 is amended--
(1) in section 233 (22 U.S.C. 2193)--
(A) in subsection (b), by inserting after the sixth
sentence the following new sentence: ``Of the eight
such Directors, not more than five should be of the
same political party.''; and
(B) by adding at the end the following new
subsection:
``(e) Investment Advisory Council.--The Board shall take prompt
measures to increase the loan, guarantee, and insurance programs, and
financial commitments, of the Corporation in sub-Saharan Africa,
including through the use of an investment advisory council to assist
the Board in developing and implementing policies, programs, and
financial instruments with respect to sub-Saharan Africa. In addition,
the investment advisory council shall make recommendations to the Board
on how the Corporation can facilitate greater support by the United
States for trade and investment with and in sub-Saharan Africa. The
investment advisory council shall terminate on December 31, 2017.'';
(2) in section 234(c) (22 U.S.C. 2194(c)), by inserting
``eligible investors or'' after ``involve'';
(3) in section 235(a)(2) (22 U.S.C. 2195), by striking
``2007'' and inserting ``2017'';
(4) in section 237(d) (22 U.S.C. 2197(d))--
(A) in paragraph (2), by inserting ``, systems
infrastructure costs,'' after ``outside the
Corporation''; and
(B) in paragraph (3), by inserting ``, systems
infrastructure costs,'' after ``project-specific
transaction costs''; and
(5) by amending section 239(e) (22 U.S.C. 2199(e)) to read
as follows:
``(e) Inspector General.--The Board shall appoint and maintain an
Inspector General in the Corporation, in accordance with the Inspector
General Act of 1978 (5 U.S.C. App.).''.
(c) Annual Consumer Satisfaction Survey and Report.--
(1) Survey.--
(A) In general.--For each of calendar years 2014
through 2016, the Overseas Private Investment
Corporation shall conduct a survey of private entities
that sponsor or are involved in projects that are
insured, reinsured, guaranteed, or financed by the
Corporation regarding the level of satisfaction of such
entities with the operations and procedures of the
Corporation with respect to such projects.
(B) Priority.--The survey shall be primarily
focused on United States small businesses and
businesses that sponsor or are involved in projects
with a cost of less than $20,000,000 (as adjusted for
inflation).
(2) Report.--
(A) In general.--Not later than each of July 1,
2015, July 1, 2016, and July 1, 2017, the Corporation
should submit to the congressional committees specified
in subparagraph (C) a report on the results of the
survey required under paragraph (1).
(B) Matters to be included.--The report should
include the Corporation's plans to revise its
operations and procedures based on concerns raised in
the results of the survey, if appropriate.
(C) Form.--The report shall be submitted in
unclassified form and shall not disclose any
confidential business information.
(D) Congressional committees specified.--The
congressional committees specified in this subparagraph
are--
(i) the Committee on Appropriations and the
Committee on Foreign Affairs of the House of
Representatives; and
(ii) the Committee on Appropriations and
the Committee on Foreign Relations of the
Senate.
SEC. 9. TRADE AND DEVELOPMENT AGENCY.
(a) In General.--The Director of the Trade and Development Agency
should--
(1) promote United States private sector participation in
energy sector development projects in sub-Saharan Africa
through project preparation activities, including feasibility
studies at the project, sector, and national level, technical
assistance, pilot projects, reverse trade missions, conferences
and workshops; and
(2) seek opportunities to fund project preparation
activities that involve increased access to electricity,
including power generation and trade capacity building.
(b) Focus.--In pursuing the policy goals described in section 4,
project preparation activities described in subsection (a) should focus
on power generation, including renewable energy, improving the
efficiency of transmission and distribution grids, including on-grid,
off-grid and mini-grid solutions, and promoting energy efficiency and
demand-side management.
SEC. 10. PROGRESS REPORT.
Not later than three years after the date of the enactment of this
Act, the President shall transmit to the Committee on Foreign Affairs
of the House of Representatives and the Committee on Foreign Relations
of the Senate, and post through appropriate digital means, a report on
progress made toward achieving the policy goals described in section 4,
including the following:
(1) The number, type, and status of policy, regulatory, and
legislative changes implemented in partner countries to support
increased electricity generation and access, and strengthen
effective, accountable governance of the electricity sector
since United States engagement.
(2) A list of power sector and electrification projects
United States Government instruments are supporting to achieve
the policy goals described in section 4, and for each such
project--
(A) a description of how each such project fits
into the national power plans of the partner country;
(B) the total cost of each such project and
predicted United States Government contributions, and
actual grants and other financing provided to such
projects, broken down by United States Government
funding source, including from the Overseas Private
Investment Corporation, the United States Agency for
International Development, the Department of the
Treasury, and other appropriate United States
Government departments and agencies;
(C) the predicted electrical power capacity of each
project upon completion, with metrics appropriate to
the scale of electricity access being supplied, as well
as total megawatts installed;
(D) compliance with international best practices
and expected environmental and social impacts from each
project;
(E) the estimated number of women, men, poor
communities, businesses, schools, and health facilities
that have gained electricity connections as a result of
each project at the time of such report; and
(F) the current operating electrical power capacity
in wattage of each project.
Passed the House of Representatives May 8, 2014.
Attest:
KAREN L. HAAS,
Clerk.