[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2508 Reported in Senate (RS)]
Calendar No. 489
113th CONGRESS
2d Session
S. 2508
[Report No. 113-219]
To establish a comprehensive United States Government policy to assist
countries in sub-Saharan Africa to improve access to and the
affordability, reliability, and sustainability of power, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 19, 2014
Mr. Menendez (for himself, Mr. Corker, Mr. Coons, Mr. Isakson, Mr.
Markey, Mr. Johanns, Mr. Cardin, Mrs. Shaheen, Mr. Franken, Mr. Durbin,
Ms. Klobuchar, Mr. Graham, Mr. Blunt, Ms. Stabenow, Mr. Udall of
Colorado, and Ms. Cantwell) introduced the following bill; which was
read twice and referred to the Committee on Foreign Relations
July 24, 2014
Reported by Mr. Menendez, with amendments and an amendment to the title
[Omit the part struck through and insert the part printed in italic]
_______________________________________________________________________
A BILL
To establish a comprehensive United States Government policy to assist
countries in sub-Saharan Africa to improve access to and the
affordability, reliability, and sustainability of power, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energize Africa
Act of 2014''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--POLICIES TO IMPROVE ACCESS TO POWER IN SUB-SAHARAN AFRICA
Sec. 101. Purpose.
Sec. 102. Statement of policy.
Sec. 103. Development of comprehensive, multiyear strategy.
Sec. 104. Sense of Congress on priorities with respect the energy
sector of sub-Saharan African countries.
Sec. 105. Prioritization of assistance for power projects in sub-
Saharan Africa by the United States Agency
for International Development.
Sec. 106. Prioritization of assistance for power projects in sub-
Saharan Africa by the Trade and Development
Agency.
Sec. 107. Prioritization of assistance for power projects in sub-
Saharan Africa by the Overseas Private
Investment Corporation.
Sec. 108. Prioritization of assistance for power projects in sub-
Saharan Africa by the World Bank Group and
the African Development Bank.
Sec. 109. Prioritization of assistance for power projects in sub-
Saharan Africa by the United States African
Development Foundation.
Sec. 110. Prioritization of assistance for power projects in sub-
Saharan Africa by the Millennium Challenge
Corporation.
Sec. <DELETED>110</DELETED>111. Progress report.
TITLE II--OVERSEAS PRIVATE INVESTMENT CORPORATION
Sec. 201. Extension of issuing authority.
Sec. 202. Expedited procedures for financing of small projects related
to power generation and distribution in
sub-Saharan Africa.
Sec. 203. Activities in sub-Saharan Africa; investment advisory
council.
Sec. 204. Pilot program for expansion of eligible investors.
Sec. 205. Pilot program for direct investment and local currency
guaranties for power projects in sub-
Saharan Africa.
Sec. 206. Extension of maximum term of obligation for renewable energy
projects in sub-Saharan Africa.
Sec. 207. Inspector General.
Sec. 208. Assessment of customer satisfaction.
Sec. 209. Schedule B hiring authority.
Sec. 210. Sense of Congress on funding.
Sec. 211. Report on equity authority.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) As of 2010, approximately 589,000,000 people in sub-
Saharan Africa, or 68 percent of the population, did not have
access to power.
(2) Lack of access to power services disproportionally
affects women, 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 effects.
(3) Women and girls also face increased risks of assault
from walking long distances to gather fuel sources.
(4) Access to power creates opportunities for people to
work their way out of poverty, including through
entrepreneurship.
(5) A lack of power 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.
(6) Reliable access to power is crucial for the storage of
vaccines and antiretroviral and other lifesaving medical drugs,
as well as for the operation of modern lifesaving medical
equipment.
(7) Access to power can be used to improve food security by
enabling post-harvest processing, pumping, irrigation, dry
grain storage, milling, and refrigeration, and for other uses.
(8) Access to power can provide improved information and
communication technologies that can greatly improve health and
education outcomes as well as economic and commercial
opportunities.
(9) For the majority of people with access to power in sub-
Saharan Africa, power services are highly unreliable and remain
at least twice as expensive compared to other emerging regions.
(10) According to Enterprise Surveys of the World Bank,
power cuts in sub-Saharan Africa cost companies more than 10
percent of sales in certain countries.
(11) The consumer base in sub-Saharan Africa of
approximately 1,000,000,000 people is rapidly growing and will
create increasing demand for United States goods, services, and
technologies, but the current power deficit in sub-Saharan
Africa limits that growth in demand by restricting economic
growth on the continent of Africa.
(12) Approximately 30 countries in sub-Saharan Africa face
endemic power shortages, and nearly 70 percent of surveyed
businesses in sub-Saharan Africa cite unreliable power as a
major constraint to growth.
(13) The work of the Millennium Challenge Corporation in
the energy sector shows high projected economic rates of
returns that translate to sustainable economic growth and the
highest returns are projected when infrastructure improvements
are coupled with significant legislative, policy, and
regulatory reforms and institutional strengthening.
(14) Sub-Saharan Africa has abundant renewable and fossil
fuel resources with which to generate power.
(15) In some countries in sub-Saharan Africa, weak
governance capacity, undue regulatory barriers, and unnecessary
legal constraints, as well as a lack of transparency and
accountability, stifle the ability of public and private
investment to assist in the generation and distribution of
power.
(16) Without new policies and more effective public and
private investments in power sector enterprises to increase and
expand access to power in sub-Saharan Africa, more than 70
percent of the rural population, and 48 percent of the total
population, are likely to remain without access to power
through at least 2030.
(17) Consumers in sub-Saharan Africa spend billions of
dollars annually on kerosene and other fuels for household
needs, which can, for poor families, represent more than 15
percent of household income and can expose residents to
significant fire and toxicity risks.
(18) Kerosene lamps used in homes can cause fires and
severe burn injuries and expose users to hazardous air
pollutants in close quarters, and switching from fuel-based
lighting to cheaper, cleaner systems would provide higher
quality light with no negative health effects while achieving
significant economic savings.
(19) New technological advances in power generation coupled
with more efficient appliances are resulting in robust,
affordable, and non-polluting off-grid power solutions and
entrepreneurs are developing new business models allowing off-
grid households to finance systems over time, resulting in a
rapidly growing off-grid power market.
TITLE I--POLICIES TO IMPROVE ACCESS TO POWER IN SUB-SAHARAN AFRICA
SEC. 101. PURPOSE.
The purpose of this title is to <DELETED>assist</DELETED> encourage
the efforts of countries in sub-Saharan Africa to improve access to
affordable and reliable power in order to unlock the potential for
economic growth and promote development, job creation, food security,
improved health, educational, and environmental outcomes, and reduce
poverty.
SEC. 102. STATEMENT OF POLICY.
Congress declares that it is the policy of the United States to
partner, consult, and coordinate with the governments of sub-Saharan
African countries, international financial institutions, African
regional economic communities, and the private sector, in a concerted
effort to--
(1) promote first-time access to power and power services
for at least 50,000,000 people in sub-Saharan Africa by 2020 in
both urban and rural areas;
(2) encourage the installation of at least 20,000
additional megawatts of electrical power in sub-Saharan Africa
by 2020 using a broad mix of energy options to help reduce
poverty, promote sustainable development, and drive economic
growth;
(3) promote reliable, affordable, and sustainable power in
urban areas (including small urban areas) to promote economic
growth and job creation;
(4) promote efficient institutional platforms and financing
to provide electrical service to rural and underserved
populations;
(5) encourage the necessary in-country reforms to make such
expansion of power access possible;
(6) promote reforms of power production, delivery, and
pricing, as well as regulatory reforms and transparency, to
support long-term, market-based power generation and
distribution; <DELETED>and
</DELETED> (7) promote policies to displace kerosene
lighting with other technologies<DELETED>.</DELETED>; and
(8) promote an all-of-the-above energy development strategy
for sub-Saharan Africa that includes the use of oil, natural
gas, coal, hydroelectric, wind, solar, and geothermal power,
and other sources of energy.
SEC. 103. DEVELOPMENT OF COMPREHENSIVE, MULTIYEAR STRATEGY.
(a) Strategy Required.--
(1) In general.--The President shall establish a
comprehensive, integrated, multiyear strategy to
<DELETED>assist</DELETED> encourage the efforts of countries
in sub-Saharan Africa to implement national power strategies
and develop an appropriate mix of power solutions, including
renewable energy, to provide access to sufficient reliable,
affordable, and sustainable power in order to reduce poverty
and drive economic growth and job creation.
(2) Flexibility and responsiveness.--The President shall
ensure that the strategy required by paragraph (1) maintains
sufficient flexibility for and remains responsive to
technological innovation in the power sector.
(b) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the President shall submit to the Committee on
Foreign Relations of the Senate and the Committee on Foreign Affairs of
the House of Representatives a report that contains the strategy
required by subsection (a) and includes a discussion of the following
elements:
(1) The general and specific objectives of the strategy.
(2) The criteria for determining the success of the
strategy.
(3) A description of the manner in which the strategy will
support efforts of countries <DELETED>receiving assistance
pursuant to the strategy</DELETED> in sub-Saharan Africa to
improve access to power using a broad mix of energy options and
improve the affordability and reliability of power in sub-
Saharan Africa.
(4) A general description of regional and country plans and
significant local efforts, as appropriate, in sub-Saharan
Africa to--
(A) increase power production;
(B) strengthen electrical transmission and
distribution infrastructure;
(C) provide for regulatory reform and transparent
and accountable governance and oversight;
(D) improve the reliability of power;
(E) maintain the affordability of power;
(F) maximize the financial sustainability of the
power sector; and
(G) improve access to power.
(5) A description of plans to support efforts of countries
<DELETED>receiving assistance pursuant to the strategy</DELETED>
in sub-Saharan Africa to increase access to power in urban and
rural areas, including a description of plans designed to
address commercial, industrial, and residential needs.
(6) A description of plans to support efforts of such
countries to reduce waste and corruption and improve existing
power generation through the use of a broad power mix,
including fossil fuel and renewable energy, distributed
generation models, and other technological innovations, as
appropriate.
(7) An analysis of existing mechanisms for ensuring, and
recommendations to promote--
(A) commercial cost recovery <DELETED>in countries
receiving assistance</DELETED> pursuant to the
strategy</DELETED>;
(B) commercialization of electric service through
distribution service providers to consumers;
(C) improvements in revenue cycle management, power
pricing, and fees assessed for service contracts and
connections;
(D) reductions in technical losses in the
transmission systems and commercial losses resulting
from inefficiencies, including inefficiencies in the
billing and collection cycle, theft, and manipulation
of meter reading and billing systems; and
(E) access to power, including recommendations on
the creation of new service provider models that
mobilize community participation in the provision of
power services.
(8) A description of United States Government efforts to
support the efforts of countries <DELETED>receiving assistance
pursuant to the strategy</DELETED> in sub-Saharan Africa to
leverage private sector resources and public sector financing
pursuant to the strategy.
(9) A description of the reforms being undertaken or
planned by countries in sub-Saharan Africa to ensure the long-
term economic viability of power projects and to increase
access to power, including--
(A) reforms designed to allow third parties to
connect power generation to the grid affordably,
quickly, and without undue regulatory burdens;
(B) policies to ensure there is a viable,
adequately resourced, independent, and capable utility
regulator;
(C) strategies to ensure utilities become or remain
creditworthy;
(D) regulations that permit the participation of
independent power producers and private-public
partnerships;
(E) policies that encourage private investment in
power generation;
(F) policies that ensure compensation for power
provided to the electrical grid by on-site producers;
(G) policies to unbundle power services; and
(H) regulations to eliminate conflicts of interest
in the utility sector.
(10) A description of plans to ensure--
(A) local consultation, as appropriate, in the
planning, long-term maintenance, and management of
investments designed to increase access to power in
sub-Saharan Africa; and
(B) that such investments are sustainable and
transparent, including through the provision of
technical assistance and training.
(11) An identification of the relevant United States
Government departments and agencies that will be involved in
carrying out the strategy.
(12) A description of the level and distribution of
resources that will be dedicated on an annual basis among those
departments and agencies.
(13) A description of the role of each such department or
agency and the types of programs that each such department or
agency will conduct.
(14) A description of the mechanisms that will be used to
coordinate the efforts of United States Government departments
and agencies in carrying out the strategy to avoid duplication
of efforts, enhance coordination, and ensure that each such
department or agency conducts programs primarily in the areas
in which that department or agency has the greatest expertise,
technical capabilities, and potential for success.
(15) A description of the mechanisms to be established
for--
(A) monitoring and evaluating increased access to,
and reliability and affordability of, power in sub-
Saharan Africa for individuals, communities, and
businesses;
(B) maximizing the financial sustainability of
power generation, transmission, and distribution in
sub-Saharan Africa;
(C) sharing best practices among relevant United
States Government departments and agencies and with
other countries and institutions participating in
efforts to increase access to power in sub-Saharan
Africa;
(D) establishing metrics to demonstrate progress on
meeting goals relating to access to power, power
generation, and distribution in sub-Saharan Africa; and
(E) terminating unsuccessful programs.
(16) A description of the engagement plan for working with
local communities benefitting from or affected by projects
carried out pursuant to the strategy.
(17) A description of the mechanisms that will be used to
ensure greater coordination between the United States and
foreign governments, international organizations, African
regional economic communities, international financial
institutions, international fora such as the G-8 and G-20, and
private sector and civil society organizations.
(18) An outline of how the President intends to partner
with foreign governments, the World Bank Group, the African
Development Bank, the private sector, and other development
partners to <DELETED>assist</DELETED> encourage sub-Saharan
African countries to conduct project studies and facilitate
project development.
(19) A description of how the President intends to help
facilitate transnational and regional electrification projects
where appropriate.
(20) A description of how the President intends to help
sub-Saharan countries use new or potential fossil fuel and
other resources in order to provide power to their citizens.
(21) A description of how the President intends to promote
trade in electrical equipment with countries in sub-Saharan
Africa, including a description of how the government of each
country receiving assistance pursuant to the strategy--
(A) plans to lower or eliminate import tariffs or
other taxes for energy and other power production and
distribution technologies destined for sub-Saharan
Africa, including equipment used to provide energy
access, including solar lanterns, solar home systems,
and micro and mini grids; and
(B) plans to protect the intellectual property of
companies designing and manufacturing products that can
be used to provide energy access in sub-Saharan Africa.
(22) A description of how the President intends to work
with the African Development Bank and other partners to
increase the capacity of sub-Saharan African utilities to--
(A) develop standardized power purchase agreements
and other contracts to streamline project development;
and
(B) negotiate and monitor compliance with power
purchase agreements and other contracts entered into
with the private sector.
(23) A description of how the President intends to
encourage the growth of distributed renewable energy markets in
sub-Saharan Africa, including off-grid lighting and power, that
includes--
(A) a country-by-country analysis of the state of
distributed renewable energy in sub-Saharan Africa,
including off-grid lighting and power;
(B) a description of market barriers to the
deployment of distributed renewable energy technologies
both on- and off-grid in sub-Saharan Africa;
(C) measures United States Government departments
and agencies, including the United States Agency for
International Development and the Overseas Private
Investment Corporation, can take--
(i) to overcome or eliminate market
barriers or enhance financing opportunities for
distributed renewable energy solutions in sub-
Saharan Africa; and
(ii) to <DELETED>assist</DELETED> encourage
multilateral organizations such as the World
Bank Group in efforts to eliminate such
barriers or enhance such opportunities;
(D) the amount and kind of financial support and
financing provided to participants in distributed
energy markets by the United States Government,
international financial institutions, and other
international organizations;
(E) an analysis of the efficacy of efforts by the
Overseas Private Investment Corporation and the United
States Agency for International Development to
facilitate the financing of the importation,
distribution, sale, leasing, or marketing of
distributed renewable energy technologies; and
(F) a description of how bolstering distributed
renewable energy can enhance the overall effort to
increase power access in sub-Saharan Africa.
(24) Any other issues the President determines are relevant
to the strategy.
(c) Interagency Working Group.--
(1) In general.--The President may, as appropriate,
establish an Interagency Working Group to coordinate the
activities of relevant United States Government departments and
agencies involved in carrying out the strategy required under
this section.
(2) Functions.--The Interagency Working Group may, among
other things, seek to coordinate the activities of the United
States Government departments and agencies involved in
implementing the strategy, ensure efficient and effective
coordination between participating departments and agencies,
facilitate information sharing, and coordinate partnerships
between United States Government, the private sector, and other
development partners to achieve the goals of the strategy.
<DELETED>(c)</DELETED>(d) African Power Advisory Group.--
(1) Establishment.--For the purposes of developing the
strategy required by subsection (a), the President shall
establish a African Power Advisory Group to advise on the
development and implementation of the strategy and report
required by this section and <DELETED>assistance</DELETED>
support provided pursuant to this section.
(2) Membership.--The African Power Advisory Group shall be
composed of <DELETED>12</DELETED> 13 members appointed by the
President, including the following:
(A) The Coordinator of the President's Power Africa
Initiative.
(B) Seven individuals from the power sector, of
whom--
(i) at least one shall have experience in
the fossil fuel power sector;
(ii) at least one shall have experience
with the rural electrical cooperatives;
(iii) at least one shall have experience in
the renewable energy sector; and
(iv) at least one shall have experience in
the distributed generation sector.
(C) Three individuals, other than individuals
described in subparagraph (B), who shall have
experience in working with the business community in
Africa or with governments of countries in Africa.
(D) One individual who shall have experience with
utility regulation.
(E) The official designated pursuant to section
1206(d) of the National Defense Authorization Act for
Fiscal Year 2014 (Public law 113-66; 127 Stat. 902; 22
U.S.C. 2151 note) to coordinate efforts to increase
United States exports to Africa.
(3) Functions.--The President shall call upon members of
the African Power Advisory Group, either collectively or
individually, to advise the President regarding the development
and implementation of the strategy and report required by this
section and <DELETED>assistance</DELETED> support provided
pursuant to this section.
(4) Meetings.--The African Power Advisory Group shall meet
not later than 60 days after the date of the enactment of this
Act and not less frequently than annually thereafter.
(5) Federal advisory committee act.--The African Power
Advisory Group established under this section shall not be
subject to the Federal Advisory Committee Act (5 U.S.C. App.).
SEC. 104. SENSE OF CONGRESS ON PRIORITIES WITH RESPECT THE ENERGY
SECTOR OF SUB-SAHARAN AFRICAN COUNTRIES.
It is the sense of Congress that--
(1) as the United States deepens its engagement with
countries in sub-Saharan Africa pursuant to the authorities
provided under this Act, priority should be given to countries
with a demonstrated commitment to--
(A) transparency, accountability, and credibility
in energy sector governance;
(B) prudent macroeconomic management of energy
resources, including sound fiscal and debt management;
(C) energy sector reforms, including tariff reform,
unbundling of vertically integrated utilities, and
access for independent power producers;
(D) responsible development of newly discovered
energy resources;
(E) expansion of power generation, transmission,
and access, including distributed mini-grid and off-
grid solutions; and
(F) private sector and investment climate reforms,
such as strong rule of law and robust controls over the
business regulatory environment; and
(2) the United States should consider, in prioritizing
efforts carried out pursuant to this Act--
(A) opportunities for the United States private
sector to contribute to the energy sector in sub-
Saharan African countries through technology,
innovation, and project development;
(B) the potential of such efforts to facilitate
regional power trade and expand power access across
borders;
(C) private sector interest and participation in
the energy sector of sub-Saharan African countries;
(D) the long-term financial viability of energy
sector projects in development;
(E) opportunities to collaborate with international
donors and partners in energy sector development
involving multilateral institutions such as the World
Bank Group and the African Development Bank;
(F) the availability of United States Government
resources and appropriate funds to support the
expansion of technical assistance, delivery units, and
transaction advisors and teams to implement United
States Government programs to expand power access in
sub-Saharan Africa; and
(G) mechanisms to promote efficient and effective
coordination among United States Government departments
and agencies, including allocation of well-defined
roles for each such department or agency.
SEC. 105. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
SAHARAN AFRICA BY THE UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT.
(a) Loan Guarantees.--In pursuing the policy goals described in
section 102, the Administrator of the United States Agency for
International Development should prioritize loan guarantees to local
financial institutions in sub-Saharan Africa, as appropriate, to--
(1) facilitate the involvement of such institutions in
power projects and markets, both on- and off-grid, in sub-
Saharan Africa;
(2) allow such institutions to partner with other investors
to leverage expertise and increase the impact of such loan
guarantees for energy access and power production projects in
sub-Saharan Africa;
(3) allow such institutions to partner with other investors
to fund local research, development, and deployment of
technology in order to specifically increase access to
reliable, affordable, and sustainable power in sub-Saharan
Africa; and
(4) allow such institutions to fund the development of
plans to increase distribution coverage, including off-grid
projects and services in rural areas of sub-Saharan Africa.
(b) Grants.--The Administrator <DELETED>shall</DELETED> should, as
appropriate, prioritize assistance to--
(1) support the implementation or development, as
appropriate, of national, regional, and local energy and
economically sustainable power policy plans in sub-Saharan
Africa;
(2) expand power access across sub-Saharan Africa,
including specifically to the poorest populations and rural and
isolated communities;
(3) build the capacity of countries in sub-Saharan Africa
to monitor and appropriately and transparently regulate the
power sector and encourage private investment in power
production and distribution; and
(4) increase access to reliable, affordable, and
sustainable power in sub-Saharan Africa, including the
development of plans to increase power access in rural areas.
(c) Effectiveness Measurement.--In providing the loan guarantees
and assistance prioritized pursuant to this section, the Administrator
shall use clear, accountable, and metric-based targets to measure the
effectiveness of such guarantees and assistance in achieving the goals
described in section 102.
(d) Rule of Construction.--Nothing in this section shall be
construed to authorize modifying or limiting the portfolio of the
United States Agency for International Development in other developing
regions.
SEC. 106. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
SAHARAN AFRICA BY THE TRADE AND DEVELOPMENT AGENCY.
(a) In General.--The Director of the Trade and Development Agency
should prioritize, as appropriate--
(1) the promotion of United States private sector
participation in energy sector development projects in sub-
Saharan Africa by conducting project preparation activities for
projects in sub-Saharan Africa, including feasibility studies,
technical assistance, pilot projects, reverse trade missions,
conferences, and workshops; and
(2) the funding of project preparation activities for
projects in sub-Saharan Africa that involve increased access to
power, including power generation and trade capacity building.
(b) Focus.--The project preparation activities described in
subsection (a) should focus on supporting projects in sub-Saharan
Africa that enhance efficiencies in the areas of power generation,
transmission, and distribution grids, including on-grid, off-grid, and
micro-grid solutions, and best practices in demand-side management.
(c) Rule of Construction.--Nothing in this section shall be
construed to authorize modifying or limiting the portfolio of the Trade
and Development Agency in other developing regions.
SEC. 107. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
SAHARAN AFRICA BY THE OVERSEAS PRIVATE INVESTMENT
CORPORATION.
(a) In General.--The Overseas Private Investment Corporation
should, as appropriate--
(1) prioritize support for private sector investments in
the power sector of sub-Saharan Africa, including in renewable
energy, that will--
(A) maximize the number of people with new access
to power and power services;
(B) improve and expand the transmission and
distribution of power and off-grid lighting and power
solutions;
(C) provide reliable power to people and businesses
in urban and rural communities;
(D) address the energy needs of people living in
areas where there is little or no access to a power
grid;
(E) reduce transmission and distribution losses and
improve end-use efficiency and demand-side management;
and
(F) reduce energy-related impediments to business
productivity and investment;
(2) implement procedures for expedited review of and, where
appropriate, approval of, applications by eligible investors
(as defined in section 238 of the Foreign Assistance Act of
1961 (22 U.S.C. 2198)) for loans, loan guarantees, and
insurance for such investments;
(3) encourage small- and medium-sized enterprises and
cooperative service providers to participate in energy
investment activities in sub-Saharan Africa; and
(4) publish information on the effects of its energy
investments on development in sub-Saharan Africa.
(b) Rule of Construction.--Nothing in this section shall be
construed to authorize modifying or limiting the portfolio of the
Overseas Private Investment Corporation in other developing regions.
SEC. 108. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
SAHARAN AFRICA BY THE WORLD BANK GROUP AND THE AFRICAN
DEVELOPMENT BANK.
(a) In General.--The Secretary of the Treasury should direct the
United States Executive Directors of the World Bank Group and the
African Development Bank to, as appropriate, use the voice, vote, and
influence of the United States to help ensure the World Bank Group and
the African Development Bank--
(1) prioritize--
(A) increasing their investment in, and efforts to
promote investment in, well-designed power sector and
electrification projects in sub-Saharan Africa;
(B) creating financing opportunities, provide
financing, and provide technical assistance to promote
both on- and off-grid power and lighting solutions in
sub-Saharan Africa;
(C) stimulating private investment in reliable,
affordable, and sustainable power in sub-Saharan
Africa; and
(D) providing technical assistance to the
regulatory authorities of governments in sub-Saharan
Africa to--
(i) remove unnecessary regulatory and legal
barriers to investment in commercially viable
power projects and markets;
(ii) modify regulatory and legal regimes to
assist providers in reducing power transmission
and distribution technical losses;
(iii) implement cost-based power tariffs
and provide for commercial cost recovery;
(iv) encourage end-use efficiency and
demand-side management in the power sector;
(v) strengthen local power markets;
(vi) reduce corruption in the power
industry, including in government and
regulatory processes associated with power
production and distribution;
(vii) encourage domestic investment in the
power sector;
(viii) improve transparency and good
governance with respect to regulatory and legal
processes and requirements in the power sector;
(ix) encourage affordable and expedited
interconnection for distributed energy systems
and independent power producers;
(x) ensure compliance with the best
practices of the World Bank Group and the
African Development Bank; and
(xi) implement regulatory and legal reforms
that facilitate efficient power generation,
transmission, and distribution and efficient
off-grid energy markets;
(2) use clear, accountable, and metric-based targets to
measure the effectiveness of investment and other assistance
provided by the World Bank Group or the African Development
Bank, as the case may be, for power sector and electrification
projects in sub-Saharan Africa; and
(3) support the efforts of the World Bank Group to foster
growth in the off-grid lighting and power markets.
(b) Rule of Construction.--Nothing in this section shall be
construed to authorize the Secretary of the Treasury to advocate for
modifying or limiting the portfolio of the World Bank Group or the
African Development Bank in other developing regions.
SEC. 109. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
SAHARAN AFRICA BY THE UNITED STATES AFRICAN DEVELOPMENT
FOUNDATION.
(a) In General.--The Board of Directors and the President of the
United States African Development Foundation should seek opportunities
to make grants and provide technical support to businesses and
organizations in sub-Saharan Africa that qualify for assistance from
the Foundation and are developing on- and off-grid solutions to meet
the power needs of rural communities underserved by national grids.
(b) Focus.--The mission of the United States African Development
Foundation under subsection (a) is to meet the needs of underserved
communities and close critical development gaps with speed, efficiency,
and effectiveness.
SEC. 110. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
SAHARAN AFRICA BY THE MILLENNIUM CHALLENGE CORPORATION.
(a) In General.--The Chief Executive Officer and the Board of
Directors of the Millennium Challenge Corporation should--
(1) assess, as appropriate, the extent to which
insufficient access to and reliability of electricity is a
binding constraint on sustainable economic growth in countries
in sub-Saharan Africa; and
(2) prioritize, as appropriate--
(A) the provision of assistance to support private
and public sector efforts to increase access to and the
reliability of electricity in such countries, including
through on- and off-grid generation and electrical
transmission and distribution projects;
(B) engagement with governments of such countries
to assist in identifying and establishing legal,
regulatory, policy, and institutional reforms related
to power sector investments;
(C) consultation with independent power producers,
public and private financial institutions, and other
power sector stakeholders during project planning; and
(D) guidance, including in the design of project
methodologies and performance metrics, as requested by
other United States Government departments and agencies
involved in activities authorized under this title.
(b) Rule of Construction.--Nothing in this section shall be
construed to authorize modifying or limiting the assistance programs of
the Millennium Challenge Corporation in other developing regions or
sectors.
SEC. <DELETED>110.</DELETED>111. PROGRESS REPORT.
(a) In General.--Not later than 3 years after the date of the
enactment of this Act, the President shall submit to the Committee on
Foreign Relations of the Senate and the Committee on Foreign Affairs of
the House of Representatives a report on progress made toward achieving
the policy goals described in section 102 that includes the following:
(1) A report on United States programs supporting
implementation of policy and legislative changes leading to
increased power generation and access in sub-Saharan Africa,
including a description of the number, type, and status of
policy, regulatory, and legislative changes initiated or
implemented as a result of programs funded or supported by the
United States in countries in sub-Saharan Africa to support
increased power generation and access after the date of the
enactment of this Act.
(2) A description of power projects receiving United States
Government support and how such projects, including off-grid
efforts, are intended to achieve the policy goals described in
section 102.
(3) For each project described in paragraph (2)--
(A) a description of how the project fits into, or
encourages modifications of, the national energy plan
of the country in which the project will be carried
out, including encouraging regulatory reform in that
county;
(B) an estimate of the total cost of the project to
the consumer, the country in which the project will be
carried out, and other investors;
(C) the amount of financing provided or guaranteed
by the United States Government for the project;
(D) an estimate of United States Government
resources for the project, itemized by funding source,
including from the Overseas Private Investment
Corporation, the United States Agency for International
Development, the Department of the Treasury, or other
appropriate United States Government departments and
agencies;
(E) an estimate of the number of individuals,
communities, businesses, schools, and health facilities
that have gained power connections as a result of the
project, with a description of how the reliability,
affordability, and sustainability of power has been
improved as of the date of the report; and
(F) an assessment of the increase in the number of
people and businesses with access to power and in the
operating electrical power capacity in megawatts as a
result of the project between the date of the enactment
of this Act and the date of the report.
(4) A description of any significant estimated non-economic
effects of the efforts carried out pursuant to this Act.
TITLE II--OVERSEAS PRIVATE INVESTMENT CORPORATION
SEC. 201. EXTENSION OF ISSUING AUTHORITY.
Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C.
2195(a)(2)) is amended by striking ``2007'' and inserting ``2019''.
SEC. 202. EXPEDITED PROCEDURES FOR FINANCING OF SMALL PROJECTS RELATED
TO POWER GENERATION AND DISTRIBUTION IN SUB-SAHARAN
AFRICA.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Overseas Private Investment Corporation
should, as appropriate, simplify and streamline the application,
approval, and post-approval processes for insurance, financing,
investment, or reinsurance for projects or subprojects, including off-
grid efforts, in sub-Saharan Africa for which the total support of the
Corporation is less than $20,000,000, by--
(1) expediting the review and consideration of, and
determinations with respect to, applications for insurance,
financing, investment, or reinsurance, consistent with
investment best practices, including appropriate risk
management, for such projects and subprojects; and
(2) reducing the burdens of project management for, and
eliminating duplicative or unnecessary oversight of such
projects and subprojects after approval of insurance,
financing, investment, or reinsurance for projects or
subprojects.
(b) Consideration of Best Practices.--In revising its procedures as
required by subsection (a), the Overseas Private Investment Corporation
should consider best practices established by the International Finance
Corporation of the World Bank Group.
SEC. 203. ACTIVITIES IN SUB-SAHARAN AFRICA; INVESTMENT ADVISORY
COUNCIL.
Section 233(e) of the Foreign Assistance Act of 1961 (22 U.S.C.
2193(e)) is amended to read as follows:
``(e) Activities in Sub-Saharan Africa; Investment Advisory
Council.--
``(1) In general.--The Board should take prompt measures to
prioritize, as appropriate, the loan, guarantee, and insurance
programs, and financial commitments, of the Corporation in sub-
Saharan Africa in the areas of power generation, distribution,
and off-grid power and lighting, 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.
``(2) Recommendations.--The investment advisory council
described in paragraph (1) shall make recommendations to the
Board on how the Corporation can facilitate greater support by
the United States for private sector trade and investment with
and in sub-Saharan Africa.
``(3) Termination.--The investment advisory council
described in paragraph (1) shall terminate on December 31,
2018.
``(4) Applicability of federal advisory committee act.--The
investment advisory council described in paragraph (1) shall
not be subject to the Federal Advisory Committee Act (5 U.S.C.
App.).''.
SEC. 204. PILOT PROGRAM FOR EXPANSION OF ELIGIBLE INVESTORS.
(a) In General.--The Overseas Private Investment Corporation shall
conduct a pilot program under which entities that are covered by
section 238(c)(3) of the Foreign Assistance Act of 1961 (22 U.S.C.
2198(c)(3)) and are substantially beneficially owned by United States
citizens shall be considered eligible investors under section 238(c) of
that Act for the sole purpose of receiving assistance from the
Corporation for power projects in sub-Saharan Africa.
(b) Cap on Assistance.--Assistance provided by the Corporation for
a power project in sub-Saharan Africa pursuant to subsection (a) to an
entity that is covered by section 238(c)(3) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2198(c)(3)) and is substantially beneficially
owned by United States citizens shall not exceed the lesser of--
(1) the share of ownership in the entity of such United
States citizens; or
(2) the percentage of the investment of the entity in the
project.
(c) Termination of Pilot Program.--The pilot program under
subsection (a) shall terminate on the date that is 5 years after the
date of the enactment of this Act.
(d) Continued Validity of Existing Support.--Notwithstanding
subsection (c), any support provided before the date that is 5 years
after the date of the enactment of this Act pursuant to the pilot
program under subsection (a) shall remain valid on and after that date.
SEC. 205. PILOT PROGRAM FOR DIRECT INVESTMENT AND LOCAL CURRENCY
GUARANTIES FOR POWER PROJECTS IN SUB-SAHARAN AFRICA.
(a) In General.--The Overseas Private Investment Corporation shall
conduct a pilot program to--
(1) make loans to eligible investors under section 234(c)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2194(c)) for
power projects in sub-Saharan Africa and for which the total
support of the Corporation does not exceed $50,000,000; and
(2) issue local currency guarantees under section 234(h) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2194(h)) to
African subsidiaries of foreign financial institutions if the
issuance of such guarantees directly facilitates lending for
power projects in sub-Saharan Africa undertaken by eligible
investors.
(b) Eligible Investor Defined.--In this section, the term
``eligible investor'' means an eligible investor as defined in section
238(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 2198(c)) or
described in section 204(a) of this Act.
(c) Termination of Pilot Program.--The pilot program under
subsection (a) shall terminate on the date that is 5 years after the
date of the enactment of this Act.
(d) Continued Validity of Existing Loans and Guarantees.--
Notwithstanding subsection (c), any loans made or local currency
guarantees issued pursuant to the pilot program under subsection (a)
before the date that is 5 years after the date of the enactment of this
Act shall remain valid on and after that date.
SEC. 206. EXTENSION OF MAXIMUM TERM OF OBLIGATION FOR RENEWABLE ENERGY
PROJECTS IN SUB-SAHARAN AFRICA.
Section 237(e) of the Foreign Assistance Act of 1961 (22 U.S.C.
2197(e)) is amended to read as follows:
``(e) Maximum Term of Obligation.--
``(1) In general.--Except as provided in paragraph (2), no
insurance, guaranty, or reinsurance of any equity investment
shall extend beyond 20 years after the date of issuance.
``(2) Extended term of obligation for certain projects.--An
insurance, guaranty, or reinsurance of an equity investment in
a renewable energy project in sub-Saharan Africa may extend up
to 30 years after the date of issuance.''.
SEC. 207. INSPECTOR GENERAL.
(a) In General.--Section 8G(a) of the Inspector General Act of 1978
(5 U.S.C. App.) is amended--
(1) in paragraph (2), by inserting ``the Overseas Private
Investment Corporation,'' after ``the National Science
Foundation,''; and
(2) in paragraph (4)--
(A) in subparagraph (G), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (H), by inserting ``and'' after
the semicolon; and
(C) by adding at the end the following:
``(I) with respect to the Overseas Private
Investment Corporation, such term means the Board of
Directors of the Overseas Private Investment
Corporation (established under section 233(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2193(b));''.
(b) Conforming Amendment.--Section 239 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2199) is amended by striking subsection (e).
SEC. 208. ASSESSMENT OF CUSTOMER SATISFACTION.
Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199)
is amended by adding at the end the following:
``(l) Assessment of Customer Satisfaction.--
``(1) In general.--Each fiscal year, the Corporation shall
conduct a survey of a sample of its customers to assess the
satisfaction of those customers with the operation and
procedures of the Corporation, with particular attention to
customers of the Corporation that are small businesses and
cooperatives.
``(2) Report to congress.--The Corporation shall include in
its annual report required under section 240A a report on the
survey conducted under paragraph (1) that includes, as
appropriate, summaries of recommendations made by customers of
the Corporation with respect to ways to improve the operations
and procedures of the Corporation.''.
SEC. 209. SCHEDULE B HIRING AUTHORITY.
In carrying out the purposes of this Act and its responsibilities
under this Act, the Overseas Private Investment Corporation may, in
addition to other authorities available, employ not more than 20
individuals, on a limited-appointment basis, pursuant to schedule B of
subpart C of part 213 of title 5, Code of Federal Regulations, for the
purpose of furthering specific efforts in sub-Saharan Africa with
respect to power production and generation and distribution, including
off-grid efforts.
SEC. 210. SENSE OF CONGRESS ON FUNDING.
It is the sense of Congress that appropriations for the
administrative expenses and activities under section 234(g)(5) of the
Foreign Assistance of 1961 (22 U.S.C. 2194(g)(5)) of the Corporation in
each of the fiscal years 2015 through 2019 should be adjusted to
reflect the resources needed to carry out the purposes of this Act,
including enabling the Corporation to hire personnel and to upgrade
systems infrastructure, as appropriate, to implement the purposes of
this Act.
SEC. 211. REPORT ON EQUITY AUTHORITY.
Not later than one year after the date of the enactment of this
Act, the Inspector General of the Overseas Private Investment
Corporation (appointed pursuant to the amendments made by section 207)
shall submit to Congress a report on the authorities of the Corporation
to effectively meet its statutory objectives, including as modified by
this Act, that includes an assessment of the following:
(1) The effectiveness of the existing authorities of the
Corporation in promoting investment in energy and
infrastructure projects.
(2) The effect granting the Corporation the authority to
directly invest in projects would have on--
(A) the ability of the Corporation to support
development projects, including infrastructure and
energy projects, that advance the foreign policy goals
of the United States;
(B) the risk profile of the Corporation;
(C) the budget of the Corporation;
(D) the success rate of projects, measured in terms
of capacity to meet development goals and financial
targets;
(E) sectors or regions in which equity investment
would be particularly beneficial or harmful to
furthering the mission of the Corporation; and
(F) the capability of the Corporation to meet its
statutory objectives, including as modified by this
Act, including whether granting such authority would
limit the effectiveness of the Corporation in meeting
its goals with respect to stimulating United States
private sector investment in such projects, including
investment by small- and medium-sized enterprises.
(3) The effect of any other financing instruments that may
be better suited to energy or infrastructure projects.
(4) The competitiveness of financing provided by the
Corporation relative to financing provided by development
finance institutions of other major economies.
Amend the title so as to read: ``A bill to establish a
comprehensive United States Government policy to encourage the
efforts of countries in sub-Saharan Africa to improve access to
and the affordability, reliability, and sustainability of
power, and for other purposes.''.
Calendar No. 489
113th CONGRESS
2d Session
S. 2508
[Report No. 113-219]
_______________________________________________________________________
A BILL
To establish a comprehensive United States Government policy to assist
countries in sub-Saharan Africa to improve access to and the
affordability, reliability, and sustainability of power, and for other
purposes.
_______________________________________________________________________
July 24, 2014
Reported with amendments and an amendment to the title