[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 704 Reported in Senate (RS)]
<DOC>
Calendar No. 331
116th CONGRESS
1st Session
S. 704
To prioritize the efforts of and enhance coordination among United
States agencies to encourage countries in Central and Eastern Europe to
diversify their energy sources and supply routes, increase Europe's
energy security, and help the United States reach its global energy
security goals, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 7, 2019
Mr. Murphy (for himself, Mr. Johnson, Mr. Cardin, Mr. Rubio, Mrs.
Shaheen, and Mr. Gardner) introduced the following bill; which was read
twice and referred to the Committee on Foreign Relations
December 17, 2019
Reported by Mr. Risch, with an amendment and an amendment to the title
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To prioritize the efforts of and enhance coordination among United
States agencies to encourage countries in Central and Eastern Europe to
diversify their energy sources and supply routes, increase Europe's
energy security, and help the United States reach its global energy
security goals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``European Energy Security
and Diversification Act of 2019''.</DELETED>
<DELETED>SEC. 2. DEFINITIONS.</DELETED>
<DELETED> In this Act:</DELETED>
<DELETED> (1) Central or eastern european country.--The term
``Central or Eastern European country'' includes--</DELETED>
<DELETED> (A) Albania;</DELETED>
<DELETED> (B) Bosnia and Herzegovina;</DELETED>
<DELETED> (C) Bulgaria;</DELETED>
<DELETED> (D) Croatia;</DELETED>
<DELETED> (E) Cyprus;</DELETED>
<DELETED> (F) the Czech Republic;</DELETED>
<DELETED> (G) Estonia;</DELETED>
<DELETED> (H) Greece;</DELETED>
<DELETED> (I) Hungary;</DELETED>
<DELETED> (J) Kosovo;</DELETED>
<DELETED> (K) Latvia;</DELETED>
<DELETED> (L) Lithuania;</DELETED>
<DELETED> (M) Macedonia;</DELETED>
<DELETED> (N) Moldova;</DELETED>
<DELETED> (O) Montenegro;</DELETED>
<DELETED> (P) Poland;</DELETED>
<DELETED> (Q) Romania;</DELETED>
<DELETED> (R) Serbia;</DELETED>
<DELETED> (S) Slovakia;</DELETED>
<DELETED> (T) Slovenia; and</DELETED>
<DELETED> (U) Ukraine.</DELETED>
<DELETED> (2) Early-stage project support.--The term
``early-stage project support'' includes--</DELETED>
<DELETED> (A) feasibility studies;</DELETED>
<DELETED> (B) resource evaluations;</DELETED>
<DELETED> (C) project appraisal and
costing;</DELETED>
<DELETED> (D) pilot projects;</DELETED>
<DELETED> (E) commercial support, such as trade
missions, reverse trade missions, technical workshops,
international buyer programs, and international partner
searchers to link suppliers to projects;</DELETED>
<DELETED> (F) technical assistance and other
guidance to improve the local regulatory environment
and market frameworks to encourage transparent
competition and enhance energy security; and</DELETED>
<DELETED> (G) long-term energy sector
planning.</DELETED>
<DELETED> (3) Late-stage project support.--The term ``late-
stage project support'' includes debt financing, insurance, and
transaction advisory services.</DELETED>
<DELETED>SEC. 3. STATEMENT OF POLICY.</DELETED>
<DELETED> (a) Sense of Congress.--It is the sense of Congress that
the United States has economic and national security interests in
assisting Central and Eastern European countries achieve energy
security through diversification of their energy sources and supply
routes.</DELETED>
<DELETED> (b) Statement of Policy.--It is the policy of the United
States--</DELETED>
<DELETED> (1) to advance United States foreign policy and
development goals by assisting Central and Eastern European
countries to reduce their dependence on energy resources from
countries that use energy dependence for undue political
influence, such as the Russian Federation, which has used
natural gas to coerce, intimidate, and influence other
countries;</DELETED>
<DELETED> (2) to promote the energy security of allies and
partners of the United States by encouraging the development of
accessible, transparent, and competitive energy markets that
provide diversified sources, types, and routes of
energy;</DELETED>
<DELETED> (3) to encourage United States public and private
sector investment in European energy infrastructure projects to
bridge the gap between energy security requirements and
commercial demand in a way that is consistent with the region's
absorptive capacity; and</DELETED>
<DELETED> (4) to help facilitate the export of United States
energy resources, technology, and expertise to global markets
in a way that benefits the energy security of allies and
partners of the United States, including in Central and Eastern
Europe.</DELETED>
<DELETED>SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR ENERGY
INFRASTRUCTURE PROJECTS IN CENTRAL AND EASTERN
EUROPE.</DELETED>
<DELETED> (a) In General.--In pursuing the policy described in
section 3, the Secretary of State, in coordination with the heads of
United States agencies that operate under the policy guidance of the
Secretary, shall, as appropriate, prioritize and expedite the efforts
of the Department of State and those agencies in supporting the efforts
of the European Commission and the governments of Central and Eastern
European countries to increase their energy security, including
through--</DELETED>
<DELETED> (1) providing diplomatic and political support to
the European Commission and those governments, as necessary--
</DELETED>
<DELETED> (A) to facilitate international
negotiations concerning cross-border
infrastructure;</DELETED>
<DELETED> (B) to enhance Europe's regulatory
environment with respect to energy; and</DELETED>
<DELETED> (C) to develop accessible, transparent,
and competitive energy markets supplied by diverse
sources, types, and routes of energy; and</DELETED>
<DELETED> (2) providing support to improve European energy
markets, including early-stage project support and late-stage
project support for the construction or improvement of energy
infrastructure, as necessary--</DELETED>
<DELETED> (A) to diversify the energy sources and
supply routes of Central and Eastern European
countries;</DELETED>
<DELETED> (B) to enhance energy market integration
across the region; and</DELETED>
<DELETED> (C) to increase competition within energy
markets.</DELETED>
<DELETED> (b) Project Selection.--</DELETED>
<DELETED> (1) In general.--The agencies described in
subsection (a) shall identify energy infrastructure projects
that would be appropriate for United States assistance under
this section.</DELETED>
<DELETED> (2) Project eligibility.--A project is eligible
for United States assistance under this section if the project
is--</DELETED>
<DELETED> (A) related to--</DELETED>
<DELETED> (i) natural gas infrastructure,
such as interconnectors, storage facilities,
liquefied natural gas import facilities, or
reverse flow capacity;</DELETED>
<DELETED> (ii) electricity transmission
infrastructure, electricity storage projects,
or smart grid projects;</DELETED>
<DELETED> (iii) renewable energy projects in
wind, solar, tidal, or other forms;
or</DELETED>
<DELETED> (iv) the improvement,
rehabilitation, or construction of natural gas,
coal, or other electricity generation
facilities to increase the efficiency and
reliability of electricity production;
and</DELETED>
<DELETED> (B) located in a Central or Eastern
European country.</DELETED>
<DELETED> (3) Preference.--In selecting among projects that
are eligible under paragraph (2), the agencies described in
subsection (a) shall give preference to projects that--
</DELETED>
<DELETED> (A) link the energy systems of two or more
Central and Eastern European countries;</DELETED>
<DELETED> (B) have already been identified by the
European Commission as being integral for the energy
security of Central and Eastern European
countries;</DELETED>
<DELETED> (C) are expected to enhance energy market
integration;</DELETED>
<DELETED> (D) can attract funding from the private
sector, an international financial institution, the
government of the country in which the project will be
carried out, or the European Commission; or</DELETED>
<DELETED> (E) have the potential to use United
States goods and services during project
implementation.</DELETED>
<DELETED> (c) Types of Assistance.--</DELETED>
<DELETED> (1) Diplomatic and political support.--The
Secretary of State shall provide diplomatic and political
support to the European Commission and the governments of
Central and Eastern European countries, as necessary, including
by using the diplomatic and political influence and expertise
of the Department of State to build the capacity of those
countries to resolve any impediments to the development of
projects selected under subsection (b).</DELETED>
<DELETED> (2) Early-stage project support.--The Director of
the Trade and Development Agency shall provide early-stage
project support with respect to projects selected under
subsection (b), as necessary.</DELETED>
<DELETED> (3) Late-stage project support.--Agencies
described in subsection (a) that provide late-stage project
support shall do so with respect to projects selected under
subsection (b), as necessary.</DELETED>
<DELETED> (d) Funding.--</DELETED>
<DELETED> (1) Private sector investment.--The agencies
described in subsection (a)--</DELETED>
<DELETED> (A) are authorized to provide financing of
not more than $1,000,000,000 to support private sector
investment in projects that diversify the energy
sources and energy transport capabilities of Central
and Eastern European countries and to improve energy
market integration in those countries; and</DELETED>
<DELETED> (B) shall ensure that amounts from such
investments are available for fiscal years 2020 through
2024 for debt financing and insurance for projects
under this section.</DELETED>
<DELETED> (2) Authorization of appropriations for trade and
development agency.--There are authorized to be appropriated to
the Director of the Trade and Development Agency for each of
fiscal years 2020 through 2024--</DELETED>
<DELETED> (A) $5,000,000 to provide assistance under
this section; and</DELETED>
<DELETED> (B) such sums as may be necessary for the
Agency to employ additional personnel to provide such
assistance.</DELETED>
<DELETED> (3) Countering russian influence fund.--Section
254(b) of the Countering Russian Influence in Europe and
Eurasia Act of 2017 (22 U.S.C. 9543(b)) is amended by adding at
the end the following:</DELETED>
<DELETED> ``(7) To assist United States agencies in
providing assistance under section 4 of the European Energy
Security and Diversification Act of 2019.''.</DELETED>
<DELETED>SEC. 5. PROGRESS REPORTS.</DELETED>
<DELETED> Not later than one year after the date of the enactment of
this Act, and annually thereafter, 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 in providing assistance for projects under section 4 that
includes--</DELETED>
<DELETED> (1) a description of the energy infrastructure
projects the United States has identified for such assistance;
and</DELETED>
<DELETED> (2) for each such project--</DELETED>
<DELETED> (A) a description of the role of the
United States in the project, including in early-stage
project support and late-stage project
support;</DELETED>
<DELETED> (B) the amount and form of any debt
financing and insurance provided by the United States
Government for the project;</DELETED>
<DELETED> (C) the amount and form of any early-stage
project support; and</DELETED>
<DELETED> (D) an update on the progress made on the
project as of the date of the report.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``European Energy Security and
Diversification Act of 2019''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Early-stage project support.--The term ``early-stage
project support'' includes--
(A) feasibility studies;
(B) resource evaluations;
(C) project appraisal and costing;
(D) pilot projects;
(E) commercial support, such as trade missions,
reverse trade missions, technical workshops,
international buyer programs, and international partner
searchers to link suppliers to projects;
(F) technical assistance and other guidance to
improve the local regulatory environment and market
frameworks to encourage transparent competition and
enhance energy security; and
(G) long-term energy sector planning.
(2) Late-stage project support.--The term ``late-stage
project support'' includes debt financing, insurance, and
transaction advisory services.
SEC. 3. STATEMENT OF POLICY.
(a) Sense of Congress.--It is the sense of Congress that the United
States has economic and national security interests in assisting
European and Eurasian countries achieve energy security through
diversification of their energy sources and supply routes.
(b) Statement of Policy.--It is the policy of the United States--
(1) to advance United States foreign policy and development
goals by assisting European and Eurasian countries to reduce
their dependence on energy resources from countries that use
energy dependence for undue political influence, such as the
Russian Federation, which has used natural gas to coerce,
intimidate, and influence other countries;
(2) to promote the energy security of allies and partners
of the United States by encouraging the development of
accessible, transparent, and competitive energy markets that
provide diversified sources, types, and routes of energy;
(3) to encourage United States public and private sector
investment in European energy infrastructure projects to bridge
the gap between energy security requirements and commercial
demand in a way that is consistent with the region's absorptive
capacity; and
(4) to help facilitate the export of United States energy
resources, technology, and expertise to global markets in a way
that benefits the energy security of allies and partners of the
United States, including in Europe and Eurasia.
SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR ENERGY
INFRASTRUCTURE PROJECTS IN EUROPE AND EURASIA.
(a) In General.--In pursuing the policy described in section 3, the
Secretary of State, in consultation with the Secretary of Energy and
the heads of other relevant United States agencies, shall, as
appropriate, prioritize and expedite the efforts of the Department of
State and those agencies in supporting the efforts of the European
Commission and the governments of European and Eurasian countries to
increase their energy security, including through--
(1) providing diplomatic and political support to the
European Commission and those governments, as necessary--
(A) to facilitate international negotiations
concerning cross-border infrastructure;
(B) to enhance Europe's regulatory environment with
respect to energy; and
(C) to develop accessible, transparent, and
competitive energy markets supplied by diverse sources,
types, and routes of energy; and
(2) providing support to improve European and Eurasian
energy markets, including early-stage project support and late-
stage project support for the construction or improvement of
energy and related infrastructure, as necessary--
(A) to diversify the energy sources and supply
routes of European and Eurasian countries;
(B) to enhance energy market integration across the
region; and
(C) to increase competition within energy markets.
(b) Project Selection.--
(1) In general.--The agencies described in subsection (a)
shall identify energy infrastructure projects that would be
appropriate for United States assistance under this section.
(2) Project eligibility.--A project is eligible for United
States assistance under this section if the project--
(A)(i) improves electricity transmission
infrastructure, power generation through the use of a
broad power mix (including fossil fuel and renewable
energy), or energy efficiency; or
(ii) advances electricity storage projects, smart
grid projects, distributed generation models, or other
technological innovations, as appropriate; and
(B) is located in a European or Eurasian country.
(3) Preference.--In selecting among projects that are
eligible under paragraph (2), the agencies described in
subsection (a) shall give preference to projects that--
(A) link the energy systems of 2 or more European
or Eurasian countries;
(B) have already been identified by the European
Commission as being integral for the energy security of
European countries;
(C) are expected to enhance energy market
integration;
(D) can attract funding from the private sector, an
international financial institution, the government of
the country in which the project will be carried out,
or the European Commission; or
(E) have the potential to use United States goods
and services during project implementation.
(c) Types of Assistance.--
(1) Diplomatic and political support.--The Secretary of
State shall provide diplomatic and political support to the
European Commission and the governments of European and
Eurasian countries, as necessary, including by using the
diplomatic and political influence and expertise of the
Department of State to build the capacity of those countries to
resolve any impediments to the development of projects selected
under subsection (b).
(2) Early-stage project support.--The Director of the Trade
and Development Agency shall provide early-stage project
support with respect to projects selected under subsection (b),
as necessary.
(3) Late-stage project support.--Agencies described in
subsection (a) that provide late-stage project support shall do
so with respect to projects selected under subsection (b), as
necessary.
(d) Funding.--
(1) Private sector investment.--The agencies described in
subsection (a)--
(A) are authorized to obligate and expend not more
than $1,000,000,000 to support private sector
investment in projects that diversify the energy
sources and energy transport capabilities of European
and Eurasian countries and to improve energy market
integration in those countries; and
(B) shall ensure that amounts from such investments
are available for fiscal years 2020 through 2024 for
debt financing and insurance for projects under this
section.
(2) Authorization of appropriations for trade and
development agency.--There are authorized to be appropriated to
the Director of the Trade and Development Agency for each of
fiscal years 2020 through 2024--
(A) $5,000,000 to provide assistance under this
section; and
(B) such sums as may be necessary for the Agency to
employ additional personnel to provide such assistance.
(3) Countering russian influence fund.--Section 254(b) of
the Countering Russian Influence in Europe and Eurasia Act of
2017 (22 U.S.C. 9543(b)) is amended by adding at the end the
following:
``(7) To assist United States agencies in providing
assistance under section 4 of the European Energy Security and
Diversification Act of 2019.''.
(e) Exception From Certain Limitation Under BUILD Act.--
(1) In general.--For purposes of providing support for
projects under this section--
(A) the United States International Development
Finance Corporation may provide support for projects in
countries with upper-middle-income economies or high-
income economies (as those terms are defined by the
World Bank);
(B) the restriction under section 1412(c)(2) of the
Better Utilization of Investments Leading to
Development Act of 2018 (22 U.S.C. 9612(c)(2)) shall
not apply; and
(C) the Corporation shall restrict the provision of
such support in a country described in subparagraph (A)
unless--
(i) the President certifies to the
appropriate congressional committees that such
support furthers the national economic or
foreign policy interests of the United States;
and
(ii) such support is--
(I) designed to produce significant
developmental outcomes or provide
developmental benefits to the poorest
population of that country; or
(II) necessary to preempt or
counter efforts by a strategic
competitor of the United States to
secure significant political or
economic leverage or acquire national
security-sensitive technologies or
infrastructure in a country that is an
ally or partner of the United States.
(2) Definitions.--In this subsection, the terms
``appropriate congressional committees'' and ``less developed
country'' have the meanings given those terms in section 1402
of the Better Utilization of Investments Leading to Development
Act of 2018 (22 U.S.C. 9601).
SEC. 5. PROGRESS REPORTS.
Not later than one year after the date of the enactment of this
Act, and annually thereafter, 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 in providing assistance for projects under section 4 that
includes--
(1) a description of the energy infrastructure projects the
United States has identified for such assistance; and
(2) for each such project--
(A) a description of the role of the United States
in the project, including in early-stage project
support and late-stage project support;
(B) the amount and form of any debt financing and
insurance provided by the United States Government for
the project;
(C) the amount and form of any early-stage project
support; and
(D) an update on the progress made on the project
as of the date of the report.
Amend the title so as to read: ``A bill to prioritize the
efforts of and enhance coordination among United States
agencies to encourage European and Eurasian countries to
diversify their energy sources and supply routes, increase
Europe's energy security, and help the United States reach its
global energy security goals, and for other purposes.''.
Calendar No. 331
116th CONGRESS
1st Session
S. 704
_______________________________________________________________________
A BILL
To prioritize the efforts of and enhance coordination among United
States agencies to encourage countries in Central and Eastern Europe to
diversify their energy sources and supply routes, increase Europe's
energy security, and help the United States reach its global energy
security goals, and for other purposes.
_______________________________________________________________________
December 17, 2019
Reported with an amendment and an amendment to the title