[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7934 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7934
To establish a lending program for Latin America and the Caribbean to
reaffirm the United States commitment to growth and energy security in
the Western Hemisphere.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 3, 2022
Mr. Espaillat introduced the following bill; which was referred to the
Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To establish a lending program for Latin America and the Caribbean to
reaffirm the United States commitment to growth and energy security in
the Western Hemisphere.
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 ``Las Americas Energy Security Act''.
SEC. 2. FINDINGS; PURPOSE; STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Energy independence and security are critical for a
country to maintain its sovereignty and independence.
(2) The International Energy Agency (``IEA'') defines
energy security as the uninterrupted availability of energy
sources at an affordable price.
(3) The IEA defines long-term energy security as primarily
dealing with timely investments to supply energy in line with
economic developments and environmental needs.
(4) The IEA defines short-term energy security as focusing
on the ability of a country's energy system to react promptly
to sudden changes in the supply-demand balance.
(5) The IEA found in February 2022 that Russia's unlawful
invasion of Ukraine poses serious implications for
international energy security.
(6) The Intergovernmental Panel on Climate Change (IPCC), a
United Nations body that provides regular assessments on
climate change, issued its sixth report in February 2022, and
found that ``human-induced climate change, including more
frequent and intense extreme events, has caused widespread
adverse impacts and related losses and damages to nature and
people, beyond natural climate variability''.
(7) The IPCC notes that to avoid mounting loss of life,
biodiversity, and infrastructure, we must have ambitious,
accelerated action to adapt to climate change, while also
making rapid, deep cuts in greenhouse gas emissions.
(8) The World Meteorological Organization's State of the
Climate in Latin America and the Caribbean 2020 report found
that--
(A) widespread drought across Latin America and the
Caribbean has had significant impact on inland shipping
routes, crop yields, and food production, and
consequently led to worsening food insecurity;
(B) extreme weather events affected more than 8
million people across Central America, exacerbating
food insecurity in countries already crippled by
economic shocks, COVID-19 impacts, and conflict; and
(C) sea-level rise poses a major risk to low-lying
coastal zones in the Latin America and the Caribbean.
(9) Rising commodity and energy prices, as well as other
global economic shocks such as those caused by natural
disasters, pandemics, and conflict, pose a serious food
security risk that may lead to social unrest and instability in
Latin America and the Caribbean.
(b) Sense of Congress.--It is the sense of Congress that the United
States has economic and national security interests in assisting Latin
America and the Caribbean to achieve energy security.
(c) Statement of Policy.-- It is the policy of the United States--
(1) to advance United States foreign policy and development
goals by helping Latin America and the Caribbean meet its
short-term energy needs;
(2) to promote the energy security of Latin America and the
Caribbean by encouraging the development of accessible,
transparent, and competitive energy markets that provide
diversified sources, types, and routes of energy, prioritizing
renewable energy practices that address challenges posed by
climate change;
(3) to encourage United States public and private sector
investment in Latin American and Caribbean 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 that
recognizes the importance of building and widening the
absorptive capacity of the region; 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 Latin America and the
Caribbean.
SEC. 3. SOVEREIGN LENDING PROGRAM FOR ELIGIBLE LATIN AMERICAN AND
CARIBBEAN PARTNER COUNTRIES.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of the Treasury, with the
concurrence of the Secretary of State, shall establish a sovereign
lending program for eligible Latin American and Caribbean partner
countries--
(1) to support their short-term energy needs; and
(2) to fund projects that help them transition to renewable
energy.
(b) Application.--To be eligible to receive a loan under the
program, an eligible Latin American or Caribbean partner country shall
submit to the Secretary of the Treasury an application at such time, in
such manner, and containing such information as the Secretary may
require.
(c) Loan Conditions.--A loan provided under the program--
(1) shall be--
(A) a zero-interest loan, not to exceed 30 years in
duration; or
(B) a low-interest concessional loan, not to exceed
50 years in duration;
(2) shall not contain any requirements that an eligible
Latin American or Caribbean partner country engage in austerity
measures or policies that increase poverty and inequality,
diminish the quality of life, and threaten the immediate access
of goods and services; and
(3) shall be subject to such other terms and conditions as
the Secretary of Treasury, with the concurrence of the
Secretary of State, determines to be appropriate.
(d) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter for 5 years,
the Secretary of Treasury, with the concurrence of the
Secretary of State, shall submit to the Committee on Foreign
Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate a report on progress in the
implementation of the program.
(2) Matters to be included.--The report shall--
(A) include a description of how the program
strengthens United States national security and
economic interests in Latin America and the Caribbean;
(B) include an assessment of--
(i) the status and effectiveness of current
efforts by regional governments, multilateral
development banks, and the private sector to
promote energy independence and security in
Latin America and the Caribbean and to
transition to renewable energy practices;
(ii) major challenges hindering such
efforts; and
(iii) how the United States can strengthen
the effectiveness of such efforts;
(C) identify how activities by the United States
Agency for International Development and the United
States International Development Finance Corporation
can effectively be leveraged to strengthen and promote
energy independence and security in Latin America and
the Caribbean;
(D) assess diplomatic initiatives taken to secure
specific national commitments by governments of
eligible Latin American and Caribbean partner countries
to undertake efforts to create favorable conditions for
energy security and independence in the region, address
corruption and rule of law concerns, modernize digital
and physical infrastructure, improve ease of doing
business, and finance and incentivize energy security
initiatives; and
(E) detail coordination of efforts with relevant
multilateral development banks to advance energy
security and independence of eligible Latin American
and Caribbean partner countries.
(e) Annual Audit.--The Secretary of Treasury--
(1) shall ensure that a full audit of the program is
performed on an annual basis; and
(2) shall submit the results of the audit to the Committee
on Foreign Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of the Treasury $100,000,000 for each of
fiscal years 2023 through 2028 to carry out the program.
(g) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean
partner country'' means--
(1) a country that--
(A) is a beneficiary country for purposes of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2701
et seq.);
(B) is a member state of the Caribbean Community
(commonly referred to as ``CARICOM''); or
(C) is a country in the Western Hemisphere that is
a party to a free trade agreement or preference program
with the United States; or
(2) any other country in the Western Hemisphere, as
determined to be appropriate by the Secretary of State.
SEC. 4. SUPPORTING EFFORTS TO INCREASE ENERGY SECURITY OF ELIGIBLE
LATIN AMERICAN AND CARIBBEAN PARTNER COUNTRIES.
(a) In General.--The Secretary of State, in consultation with the
Secretary of Energy and the heads of other relevant Federal departments
and agencies, shall, as appropriate, prioritize and expedite the
efforts of the Department of State and those other departments and
agencies in supporting the efforts of eligible Latin American and
Caribbean partner countries to increase their energy security,
including through--
(1) providing diplomatic and political support to these
governments, as necessary--
(A) to facilitate international negotiations
concerning cross-border infrastructure and
transactions;
(B) to enhance and build the Latin America's and
the Caribbean'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 to achieve energy
efficiency; and
(2) providing support to improve Latin American and
Caribbean 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 eligible Latin American and Caribbean partner
countries;
(B) to enhance energy market integration across the
region; and
(C) to increase competition and aggregate energy
markets.
(b) Project Selection.--
(1) In general.--The Federal departments and 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 and power generation through the use of
a broad power mix, prioritizing 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 an eligible Latin American of
Caribbean partner country.
(3) Preference.--In selecting among projects that are
eligible under paragraph (2), the Federal departments and
agencies described in subsection (a) shall give preference to
projects that--
(A) link the energy systems of two or more Latin
American and Caribbean partner countries;
(B) address the impacts of climate change;
(C) enhance resilience to global economic shocks;
(D) are expected to enhance energy market
integration;
(E) can attract funding from the private sector, an
international financial institution, or the government
of the country in which the project will be carried
out; or
(F) 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
governments of eligible Latin American and Caribbean 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, in consultation with the Inter-American
Development Bank, the Caribbean Development Bank, and the World
Bank, shall provide early-stage project support with respect to
projects selected under subsection (b), as necessary.
(3) Late-stage project support.--Federal departments and
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) 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
BUILD 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.
(e) Progress Reports.--Not later than one year after the date of
the enactment of this Act, and annually thereafter for seven years, the
President shall transmit to the Committee on Foreign Affairs of the
House of Representatives and the Committee on Foreign Relations of the
Senate a report on progress made in providing assistance for projects
under this section that includes the following:
(1) A description of the energy infrastructure projects the
United States has identified for such assistance.
(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.
(f) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean
partner country'' has the meaning given that term in section 3(g).
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