[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5019 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 5019
To establish an international terrestrial carbon sequestration program
and provide international technical assistance for carbon market
development, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 29, 2022
Mr. Menendez (for himself and Mr. Braun) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To establish an international terrestrial carbon sequestration program
and provide international technical assistance for carbon market
development, 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 ``America Mitigating and Achieving
Zero-emissions Originating from Nature for the 21st Century Act'' or
the ``AMAZON21 Act''.
SEC. 2. INTERNATIONAL TERRESTRIAL CARBON SEQUESTRATION PROGRAM.
(a) In General.--The Secretary shall establish a program, to be
known as the ``International Terrestrial Carbon Sequestration
Program'', to provide results-based payments for eligible projects in
developing countries that reduce emissions and enhance carbon
sequestration from forests and other terrestrial ecosystems.
(b) Goals.--In carrying out the program established pursuant to
subsection (a), the Secretary shall work with the governments of
developing countries and appropriate local partners in developing
countries to identify, develop, and implement eligible projects that--
(1) will help developing countries meet their international
greenhouse gas mitigation commitments; and
(2) have the potential to contribute to cooperative
efforts--
(A) to conserve and restore forests and other
terrestrial ecosystems;
(B) to provide a counterbalance to investments from
countries of concern in cooperating developing
countries;
(C) to reduce illegal deforestation; and
(D) to mitigate and sequester carbon dioxide.
(c) Results-Based Payments.--
(1) In general.--An eligible project shall qualify for
results-based payments under the program established pursuant
to subsection (a) if--
(A) in the determination of the Secretary, the host
developing country or appropriate local partner will be
able to fulfill its obligations under any agreement
with respect to the funding of the eligible project
through the program established pursuant to subsection
(a), including (as applicable) with respect to--
(i) host country standards of governance
and respect for rule of law;
(ii) environmental and social safeguards;
and
(iii) potential for corruption or misuse of
payments made by the Secretary;
(B) the eligible project is appropriately designed
to use results-based payments;
(C) the host developing country or appropriate
local partner, as applicable, agrees--
(i) to abide by transparency requirements
with respect to the use of funds received under
the program established pursuant to subsection
(a);
(ii) to fulfill measuring, reporting, and
verification requirements, including
independent third-party verification, necessary
to provide results-based payments;
(iii) to report publicly any data with
respect to emissions reductions achieved under
such program, linking such data to reporting
requirements of or commitments made by a host
country under relevant international
agreements;
(iv) to count the verified emission
reductions associated with the eligible project
solely towards any of the relevant
international commitments of the host
developing country;
(v) to ensure that women, indigenous
communities, and other local stakeholders, as
applicable, are empowered and enabled to
meaningfully participate in the development,
implementation, and potential benefits of the
eligible project; and
(vi) to disclose any debt the applicant may
owe to any entity known to be owned or
controlled by a country of concern, including
loan amounts, duration, rates, and contractual
provisions; and
(D) with respect to subparagraph (C)(vi), the host
developing country or appropriate local partner agrees
that payments may not be used to amortize any loan
principal owed to any entity known to be owned or
controlled by the country of concern.
(2) Additional forms of qualification for results based
payments.--Notwithstanding paragraph (1), an eligible project
may qualify for results-based payments under this subsection
if--
(A) the eligible project includes a combination or
aggregation of existing terrestrial carbon mitigation
projects such that the total of such projects
contributes to the full national or, on an interim
basis, subnational territory in the host developing
country; or
(B) the eligible project is nested into the
accounting and reporting of an existing national or
sub-national terrestrial carbon mitigation program in
the host developing country, including with regard to
safeguard requirements and any transfer of credits,
without regard to whether the eligible project is below
the sub-national level or scale.
(d) Multi-Year Agreements.--
(1) In general.--Upon determining that an eligible project
qualifies for results-based payments, the Secretary is
authorized to enter into multi-year agreements to provide
results-based payments to a host developing country or
appropriate local partners in the host developing country,
including in the form of grants from the International Forestry
Carbon Mitigation Fund established in subsection (g), to carry
out such eligible project.
(2) Prioritization.--The Secretary is encouraged to
consider any project for which the execution of such project
would directly or indirectly combat illegal deforestation or
counter malicious influence from countries of concern in a
particular developing country.
(3) Third-party leverage of funds.--The Secretary is
encouraged to prioritize projects that include terms that
leverage funding from non-profits, businesses, other developed
countries, and multilateral financing and development agencies.
(4) Partnerships with multilateral programs.--The Secretary
may partner with multilateral or multi-donor programs to fund
grants for any eligible project that qualifies for results
based payments under subsection (c).
(5) Reciprocal commitment.--The Secretary shall take steps
to ensure that the host developing country or appropriate local
partners in the host developing country, as applicable,
reciprocates the commitments to achieving the goals described
in subsection (b).
(6) Periodic reviews.--The Secretary shall periodically
review and evaluate the progress of eligible projects--
(A) to ensure that eligible projects are proceeding
successfully and appropriately maintained;
(B) to account for and adapt to externalities that
could prevent an eligible project from meeting its
objectives; and
(C) to assist proponents of an eligible projects in
planning and executing the eligible project in
accordance with this Act.
(7) Termination.--An agreement under this subsection may be
unilaterally terminated by the Secretary if the Secretary
determines that--
(A) the host developing country or a appropriate
local partner is failing or has failed to uphold the
terms and conditions established for the eligible
project; or
(B) the eligible project is not in the national
interest of the United States.
(8) Double counting of payments.--The Secretary shall take
such steps as may be necessary--
(A) to prevent the double counting of, or double
payment for, emissions reduction or carbon
sequestration results from eligible projects that also
may receive funds from other sources, including in
accordance with international guidelines and rules on
carbon markets; and
(B) to ensure that the payments and eligible
projects are interoperable and do not supplant or
compete with international transferred mitigation
outcomes.
(e) Transparency.--The Secretary shall make publicly available a
list of funds made available under the program established by
subsection (a) and shall update on an annual basis the progress or any
lack of progress in the implementation of the corresponding eligible
projects and the achievement of the goals described in subsection (b).
(f) Agency Coordination.--In carrying out the program under this
section, the Secretary shall consult as appropriate with the heads of
other relevant Federal departments and agencies, including--
(1) with respect to terrestrial carbon sequestration, the
Secretary of Agriculture, the Secretary of the Interior, the
Administrator of the National Oceanic and Atmospheric
Administration, the Chief Forester of the Forest Service, the
Administrator of the United States Agency for International
Development, and the Administrator of the Environmental
Protection Agency;
(2) with respect to project monitoring, reporting, and
verification, the Administrator of the National Oceanic and
Atmospheric Administration, the Administrator of the National
Aeronautics and Space Administration, the Administrator of the
United States Agency for International Development, the
Director of the United States Geological Survey, the
Administrator of the Environmental Protection Agency, the
Secretary of Agriculture, and the Chief Forester of the Forest
Service; and
(3) with respect to avoiding duplicative foreign aid
efforts, particularly for conservation funds, the Administrator
of the United States Agency for International Development.
(g) Trust Fund.--There is established in the Treasury of the United
States a fund to be known as the ``International Terrestrial Carbon
Sequestration Fund'', which shall consist of--
(1) amounts appropriated pursuant to the authorization in
subsection (h)(1) to carry out this section; and
(2) such gifts, bequests, or devises of property for the
benefit of, or in connection with carrying out this section as
the Secretary may accept in the form of donations by
individuals or entities, including private entities, non-profit
entities, other developed countries, and multinational
entities.
(h) Authorization of Appropriations.--
(1) Authorization.--There is authorized to be appropriated
to carry out this section--
(A) $1,125,000,000 for fiscal year 2022;
(B) $1,125,000,000 for fiscal year 2023;
(C) $1,125,000,000 for fiscal year 2024; and
(D) $1,125,000,000 for fiscal year 2025.
(2) Availability.--Amounts appropriated to carry out this
section are authorized to remain available until expended and
shall be used solely for the purposes of this section.
(3) Salaries and expenses.--Of the amounts made available
for any fiscal year pursuant to the authorization under
paragraph (1), not more than $10,000,000 is authorized to be
made available for the salaries and expenses of employees to
carry out this section.
(i) Emissions Baseline for Eligible Projects.--
(1) Proposals for emissions baseline.--
(A) In general.--To receive results-based payments
under this section for an eligible project qualified to
receive results-based payments pursuant to subsection
(c), a developing country or appropriate local partner
shall submit to the Secretary a proposal for an
emissions baseline that--
(i) is credible, transparent, accurate, and
conservatively evaluates the reduction of
carbon emission of an eligible project; and
(ii) meets the criteria established by the
Secretary under paragraph (2).
(B) Determination by secretary.--
(i) In general.--After receipt of a
proposal under subparagraph (A), the Secretary
shall determine whether the emission baseline
meets the criteria under paragraph (2).
(ii) Provision of results-based payments
approved emissions baseline.--If the Secretary
determines under clause (i) that the emissions
baseline meets the criteria under paragraph
(2), the Secretary may provide results-based
payments for such eligible project to the
developing country or appropriate local partner
in accordance with this section.
(iii) Failure to meet criteria.--
(I) In general.--If the Secretary
determines under clause (i) that the
emissions baseline does not meet the
criteria under paragraph (2), the
Secretary may negotiate with the
developing country or appropriate local
partner to reach an agreement on an
emissions baseline for the eligible
project.
(II) Provision of results-based
payments for agreed emissions
baseline.--Once an agreement has been
reached under subclause (I), the
Secretary may provide results-based
payments for the eligible project to
the developing country or appropriate
local partner in accordance with this
section.
(2) Baseline criteria.--The Secretary shall establish
criteria for each emissions baseline proposed, which shall
include requirements that the emissions baseline--
(A) is used to account for net emissions reductions
achieved from the eligible project;
(B) is national, or subnational on an interim
basis, in scope;
(C) is consistent with mitigation commitments,
targets, or actions that are appropriate for the
developing country with respect to deforestation or
loss of terrestrial ecosystems, taking into
consideration--
(i) the average annual historical emissions
and removals from forests, and other
terrestrial ecosystems, as applicable, during a
period of at least 5 years; and
(ii) the use of the relevant 2006 IPCC
Guidelines for National Greenhouse Gas
Inventories published by the Intergovernmental
Panel on Climate Change to determine applicable
drivers of deforestation and land use
conversion;
(D) establishes a trajectory that would result in
zero net deforestation by not later than 10 years after
the date on which the baseline is established;
(E) is updated not less frequently than once every
5 years to account for changing circumstances in the
developing country;
(F) includes emissions and removals from--
(i) remaining forest land;
(ii) conversions of other lands to or from
forest land;
(iii) conversions between land-use
categories other than forest land that,
cumulatively with the conversions described in
clause (i) amount to 90 percent of the absolute
level of the total greenhouse gas emissions and
removals associated with all land-use
conversions; and
(iv) any other land-use category estimated
to contribute at least 10 percent of
agriculture, forestry, and other land use
(AFOLU) emissions in the project area; and
(G) takes into consideration existing or planned
terrestrial carbon mitigation projects as identified in
subsection (c)(2) in a developing country and the
effect those projects might have in establishing an
emissions baseline for eligible projects funded under
this Act.
SEC. 3. TECHNICAL ASSISTANCE FOR SCALING NATURE-BASED SOLUTIONS IN
DEVELOPING COUNTRIES.
(a) In General.--The Administrator of the United States Agency for
International Development, in consultation with the Secretary, shall
conduct a program to provide resources and technical assistance to
developing countries and appropriate local partners to conserve,
manage, and restore forests and other terrestrial ecosystems, to
support nature-based carbon sequestration as a means of addressing a
changing climate, including by providing such resources and assistance
with respect to projects for the goals described in section 2(b).
Projects under such program shall be directed in developing countries
meeting each of the following criteria:
(1) The country contains globally significant forests or
other terrestrial ecosystems--
(A) that are threatened with destruction,
degradation, or fragmentation; or
(B) where the degradation of forests or terrestrial
ecosystems impairs development and significantly drives
greenhouse gas emissions.
(2) Legitimate land owners or customary use rights holders
in the developing country are permitted--
(A) to sell carbon credits to voluntary and carbon
compliance markets;
(B) to receive benefits from the sale of such
carbon credits by the government; and
(C) to participate in results-based payments
transactions.
(3) The country has developed, or is in the process of
developing, comprehensive policies to monitor, report, and
verify the environmental, social, and financial quality and
integrity of any such projects, including, if applicable,
policies to ensure that the host country avoids double-counting
the resulting reductions greenhouse gas emissions.
(4) The country presently contains large reserves of
forests and terrestrial ecosystems that cannot be recuperated
once lost.
(b) Technical Support Prioritization.--In conducting the program
described in subsection (a), the Administrator of the United States
Agency for International Development shall prioritize technical support
for and investment in the following activities:
(1) Reducing greenhouse gas emissions from deforestation,
fragmentation, and forest degradation.
(2) Enhancing greenhouse gas sequestration through carbon
sinks by restoring natural forests and other terrestrial and
ecosystems as well as building resilience.
(3) Monitoring, reporting, and verification of the
environmental, social, and financial quality and integrity of
the project as an important component of the work.
(4) Assisting governments, willing, legitimate land owners,
or willing customary use rights holders in developing projects
to engage in carbon markets through--
(A) carbon credits sold to buyers on existing
carbon compliance markets or voluntary carbon markets;
or
(B) projects providing results-based payments.
(5) Developing domestic infrastructure and capacity
building for creating and tracking carbon credits, such as
registries or projects eligible for results-based payments, and
preparing countries to implement nature-based solution
initiatives.
(6) Ensuring that women, Indigenous Communities, and other
local stakeholders are empowered and enabled to meaningfully
participate and share in the potential benefits of activities
funded under this section.
(7) Ensuring the additionality of projects, programs, and
other activities made possible by funding provided pursuant to
this section.
(c) Authorization.--There are authorized to be appropriated such
sums as may be necessary to carry out this section.
SEC. 4. DEFINITIONS.
In this Act:
(1) Additionality.--The term ``additionality'' means
reductions to greenhouse gas emissions in developing countries
that would not have occurred but for activities to reduce
greenhouse gas emissions in developing countries funded and
made possible by funding provided pursuant to section 3.
(2) Appropriate local partner.--The term ``appropriate
local partner'' means any relevant subnational government,
local authority, indigenous community, non-governmental entity,
or private landowner in a developing country committed to and
capable of achieving the goals described in section 2(b).
(3) Country of concern.--The term ``country of concern''
means the government or ruling party of any of the following
countries:
(A) The Russian Federation.
(B) The People's Republic of China.
(C) The Democratic People's Republic of Korea.
(D) The Islamic Republic of Iran.
(E) The Bolivarian Republic of Venezuela.
(F) The Republic of Cuba.
(4) Deforestation.--The term ``deforestation'' means a
change in land use, including forest fragmentation and forest
degradation, from a forest to any other land use.
(5) Developing country.--The term ``developing country''
means--
(A) a country eligible to receive official
development assistance according to the income
guidelines of the Development Assistance Committee of
the Organisation for Economic Co-operation and
Development; or
(B) any other country identified by the Secretary
with globally significant forests or terrestrial
ecosystems the loss of which is, or has the potential
to, significantly contribute to the changing climate.
(6) Eligible project.-- The term ``eligible project'' means
a verifiable and measurable national or subnational activity
developed or executed by the central government, subnational
government, local authority, indigenous community, non-
governmental entity, private landowner, or any group of such
persons in a developing country that--
(A) reduces a quantity of greenhouse gas emissions
from deforestation and loss of terrestrial ecosystems
that is calculated by measuring actual emissions
against an eligible project baseline, in accordance
with subsection (i); or
(B) is directed at preserving or enhancing
terrestrial ecosystems that might, absent such
activity, be lost through conversion to other uses.
(7) Emissions reductions.--The term ``emissions
reductions'' means greenhouse gas emissions reductions and
increased sequestration achieved from--
(A) reduced, or avoided deforestation;
(B) reforestation;
(C) preservation of terrestrial ecosystems; or
(D) enhancements to terrestrial ecosystems that
will result in the increased sequestration of
greenhouse gas emissions.
(8) Forest degradation.--The term ``forest degradation''
means any reduction in the carbon stock of a forest due to the
effects of human land-use activities, including land-use
changes driven by human activity.
(9) International transferred mitigation outcomes.--The
term ``international transferred mitigation outcomes'' means
the units from the mechanisms that bestow carbon mitigation
credits for use in international carbon markets.
(10) Nature-based solution.--The term ``nature-based
solution'' means an activity within a developing country to
conserve, restore, or better manage forests and terrestrial
ecosystems to sequester greenhouse gas emissions from the
atmosphere.
(11) Results-based payment.--The term ``results-based
payment'' means a mechanism for the provision of United States
assistance in which--
(A) a developing country, or appropriate local
partner in a developing country, assumes responsibility
for achieving measurable results in the reduction of
emissions through an eligible project;
(B) such measurable results are defined in advance
of the obligation of assistance by the United States
for the eligible project; and
(C) such assistance is expended in the form of
payments to such developing country or appropriate
local partner only upon independent verification of
such pre-defined results.
(12) Terrestrial ecosystem.--
(A) In general.--The term ``terrestrial ecosystem''
means naturally occurring grasslands, forests, tropical
rainforests, mangroves, peatlands, or wetlands
comprised of native species generated and maintained
primarily through natural ecological and evolutionary
processes.
(B) Exclusion.--The term ``terrestrial ecosystem''
does not include tree plantations, such as crops of
trees planted by humans primarily for the purposes of
harvesting.
(13) Secretary.--The term ``Secretary'' means the Secretary
of State.
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