[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 458 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 458
To establish a program to reduce the reliance of allied and partner
nations on natural gas, petroleum, nuclear fuel, and minerals produced
in Russia, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 15, 2023
Mr. Manchin (for himself and Ms. Murkowski) introduced the following
bill; which was read twice and referred to the Committee on Foreign
Relations
_______________________________________________________________________
A BILL
To establish a program to reduce the reliance of allied and partner
nations on natural gas, petroleum, nuclear fuel, and minerals produced
in Russia, 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 ``North American Transatlantic
Resource Security Partnership Act of 2023''.
SEC. 2. DEFINITION OF SECRETARIES.
In this Act, the term ``Secretaries'' means the Secretary of Energy
and the Secretary of the Interior.
SEC. 3. PROGRAM TO REDUCE RELIANCE ON RUSSIAN ENERGY.
(a) Definition of Ally or Partner Nation.--In this section, the
term ``ally or partner nation'' means the Government of each of the
following:
(1) Australia.
(2) Finland.
(3) Japan.
(4) The Republic of Korea.
(5) Sweden.
(6) Switzerland.
(7) Ukraine.
(8) Kosovo.
(9) Moldova.
(10) A country with a transmission system operator that is
included in the European Network of Transmission System
Operators for Electricity.
(11) A member of the North Atlantic Treaty Organization.
(12) Any other country designated as an ally or partner
nation by the Secretaries for purposes of this Act.
(b) Establishment.--The Secretaries shall establish a joint program
(referred to in this section as the ``program'') to reduce the reliance
of ally or partner nations on natural gas, petroleum (including crude
oil and petroleum products), coal, minerals, nuclear fuel, isotopes,
and other energy-related and mineral-related technologies and
commodities produced in Russia by--
(1) developing or manufacturing relevant resources,
materials, or equipment domestically;
(2) providing those resources, materials, and equipment to
an ally or partner nation under such terms and conditions as
the Secretaries determine appropriate;
(3) issuing loans, loan guarantees, other financial
assistance, or assistance in the form of an equity interest to
carry out the activities described in paragraphs (1) and (2);
and
(4) providing relevant technical assistance to an ally or
partner nation.
(c) Priority.--In carrying out the program, the Secretaries shall
give priority to activities and projects that--
(1) are located in the United States; or
(2) are located in or benefit countries that had an annual
per capita gross domestic product of not more than $28,000 in
2020.
(d) Partnerships.--The Secretaries may partner with other Federal
agencies to carry out the program.
(e) Authority To Enter Into Agreements.--In carrying out the
program, the Secretaries may enter into 1 or more agreements directly
with an ally or partner nation or a third party under such terms and
conditions as the Secretaries determine appropriate.
(f) Domestic Sourcing Considerations.--
(1) In general.--Except as provided in paragraph (2), to
the extent practicable, the Secretaries may only carry out an
activity described in paragraphs (1) through (4) of subsection
(b) if the activity--
(A) relies on resources, materials, or equipment
that are developed or produced in the United States;
and
(B) promotes--
(i) the energy and national security of the
United States or ally or partner nations; or
(ii) manufacturing in the United States.
(2) Exception.--Paragraph (1) shall not apply with respect
to an activity described in paragraphs (1) through (4) of
subsection (b) if the Secretary of Energy certifies that such
an activity cannot reasonably satisfy clause (i) or (ii) of
paragraph (1)(B).
(g) Reports.--Not later than 90 days after the date of enactment of
this Act, and annually thereafter, the Secretaries shall submit to the
Committee on Energy and Natural Resources and the Committee on Foreign
Relations of the Senate and the Committee on Energy and Commerce and
the Committee on Foreign Affairs of the House of Representatives a
report that--
(1) identifies any resources, materials, or equipment
developed under subsection (b)(1); and
(2) analyzes how the program benefits domestic resource
suppliers and manufacturers.
(h) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretaries to carry out this section $500,000,000 for
fiscal year 2024, to remain available until September 30, 2026.
(2) Nord stream 2 pipeline discontinuation.--
(A) Authorization of appropriations.--In addition
to the amount authorized to be appropriated under
paragraph (1), there is authorized to be appropriated
to the Secretaries to carry out this section
$500,000,000 for fiscal year 2024, to remain available
until September 30, 2026.
(B) Conditions.--Amounts appropriated pursuant to
subparagraph (A) may only be expended if the Secretary
of Energy certifies to Congress that the planning,
construction, and operation of the Nord Stream 2
pipeline has been permanently discontinued, including
as a result of United States sanctions imposed on any
person or entity responsible for such planning,
construction, or operation.
SEC. 4. DOMESTIC ENERGY AND MINERAL SECURITY EVALUATION.
(a) Report on Domestic Energy and Mineral Security.--Not later than
1 year after the date of enactment of this Act, the Secretaries shall
develop and submit to the Committee on Energy and Natural Resources of
the Senate and the Committee on Energy and Commerce of the House of
Representatives a report that evaluates the energy and mineral security
of the United States, including--
(1) identification of any threats posed to the supply,
transmission, distribution, or use of energy in the United
States;
(2) identification of any threats posed to the supply,
processing, refining, and distribution of minerals in the
United States;
(3) the potential impact of the threats described in
paragraphs (1) and (2) on--
(A) the economy of the United States;
(B) consumers and well-functioning and competitive
energy and mineral markets in the United States; and
(C) the national security of the United States; and
(4) identification of means to strengthen domestic
production while standardizing a system to support projects
with ally or partner nations to establish resilient and
responsible energy and mineral supply chains.
(b) Consultation.--In developing the report under subsection (a),
the Secretaries may consult with relevant Federal, State, private
sector, and other entities, as the Secretaries determine appropriate.
SEC. 5. ENERGY AND RELATED INFRASTRUCTURE SUPPLY CHAIN RELIABILITY
ASSURANCE PROGRAM.
(a) In General.--The Secretaries shall establish a supply chain
reliability assurance program (referred to in this section as the
``program''), under which the Secretaries shall--
(1) prioritize, to the maximum extent practicable, domestic
activities that ensure the establishment of secure supply
chains, including energy production, mining, mineral
processing, and manufacturing;
(2) facilitate collaboration with Federal agencies,
industrial partners, Mexico, and Canada to establish, grow, and
maintain a reliable domestic supplier base of critical energy
materials and technologies by establishing government-to-
government partnerships and public-private partnerships--
(A) to procure materials (as defined in section
2(b) of the National Materials and Minerals Policy,
Research and Development Act of 1980 (30 U.S.C.
1601(b))) to meet the engineering and performance
requirements of the Department of Energy (referred to
in this section as the ``Department'') and private and
public entities; and
(B) that may relate to--
(i) high-performance computing;
(ii) carbon capture materials;
(iii) the electric grid, including
transformers and high voltage direct current;
(iv) energy storage;
(v) hydropower and pumped storage
hydropower;
(vi) nuclear energy;
(vii) catalysts;
(viii) semiconductors;
(ix) solar photovoltaics;
(x) wind;
(xi) isotopes;
(xii) oil and gas;
(xiii) advanced materials; and
(xiv) geothermal electrical and thermal
power storage;
(3) improve coordination with Mexico and Canada to improve
planning for material requirements and potential disruptions to
commercial or contractor supply chains of materials crucial to
energy and related technologies, including by--
(A) assisting in coordination for forecasting
future needs in existing and emerging energy and
related technologies and new procurements; and
(B) establishing clear requirements to increase raw
material availability, expand manufacturing
capabilities, support the formation of diverse, secure,
and socially responsible foreign supply chains, and
improve supply chain knowledge and decision-making for
energy and related technologies;
(4) collaborate with Federal agencies, industrial partners,
and international partners to establish processes to mitigate
manufacturing challenges for energy infrastructure and other
energy-related products and to develop strategies to lower the
long-term costs of energy materials and technology while
identifying and preserving--
(A) the production of materials and components
required for advanced energy technologies and products,
including natural gas, hydrogen, pipelines, and
transmission, renewables, advanced nuclear, advanced
energy materials, and commercial-scale energy storage
by the Department; and
(B) energy and related infrastructure; and
(5) plan for--
(A) the sustainment of the supply of recycled
materials for energy and related technologies; and
(B) required infrastructure to recycle materials
for energy and related technologies.
(b) Financial Assistance.--The Secretaries may provide loans, loan
guarantees, other financial assistance, and assistance in the form of
an equity interest to carry out the activities under the program.
(c) Funding.--There is authorized to be appropriated to the
Secretaries to carry out this section $200,000,000 for the period of
fiscal years 2024 through 2028.
SEC. 6. NORTH AMERICAN ENERGY SECURITY COOPERATION.
(a) Covered Energy Source Defined.--In this section, the term
``covered energy source'' means any of the following:
(1) Solar energy.
(2) Biomass energy.
(3) Energy efficiency technology.
(4) Wind energy.
(5) Geothermal energy.
(6) Wave and tidal energy.
(7) Advanced battery technology.
(8) Hydrogen technology.
(9) Nuclear energy.
(10) Carbon capture, utilization, and storage technology.
(11) Natural gas energy, including conventional and
unconventional natural gas technologies and other associated
technologies, and natural gas projects.
(12) Water technologies, including water desalination,
wastewater treatment and reclamation, and other water treatment
refining.
(13) Petroleum, petroleum derivatives, and petroleum
products.
(14) Critical materials (as defined in section 7002(a) of
the Energy Act of 2020 (30 U.S.C. 1606(a))) necessary for use
of any of the energy sources described in paragraphs (1)
through (13).
(b) Sense of Congress on United States-Mexico-Canada Cooperation
Agreement.--It is the sense of Congress that--
(1) it is in the highest economic and national security
interests of the United States to develop covered energy
sources in the United States;
(2) the states of Mexico and provinces of Canada are
steadfast allies of the United States and have the capacity to
produce energy and mineral resources that contribute to
economic and national security;
(3) enhanced cooperation between the United States, Mexico,
and Canada for the purpose of research and development of
covered energy sources would be in the national interests of
all 3 countries;
(4) energy cooperation between the United States, Mexico,
and Canada and the development of natural resources by all 3
countries are in the strategic interests of the United States;
(5) the United States can play a role in assisting Mexico
and Canada with regional safety and security issues;
(6) the Secretaries, as appropriate and in consultation
with the National Science Foundation, should collaborate with
Mexico and Canada with respect to research, development, and
deployment of covered energy sources;
(7) the United States, Mexico, and Canada should strive to
develop more robust academic cooperation with respect to--
(A) energy innovation technology and engineering;
(B) water science;
(C) technology transfer; and
(D) analysis of--
(i) emerging geopolitical dynamics,
threats, and crises from acquisitions of
natural resources and energy supplies by
foreign countries; and
(ii) the development of domestic resources
as a response to those threats; and
(8) the United States strongly urges open dialogue and
continued mechanisms for regular engagement and encourages
further cooperation between applicable departments, agencies,
ministries, institutions of higher education, and the private
sector of the United States, Mexico, and Canada on energy
security issues, including with respect to--
(A) identifying policy priorities associated with
the development of natural resources of Mexico and
Canada;
(B) discussing and sharing best practices with
respect to securing cyber energy infrastructure and
other energy security matters;
(C) leveraging natural gas to positively impact
regional stability;
(D) issues relating to the energy-water nexus,
including improving energy efficiency and the overall
performance of water technologies through research and
development in water desalination, wastewater treatment
and reclamation, water treatment in gas and oil
production processes, and other water treatment
refiners;
(E) technical and environmental management of deep-
water exploration and production;
(F) emergency response and coastal protection and
restoration;
(G) academic outreach and engagement;
(H) private sector and business development;
(I) regulatory consultations;
(J) leveraging alternative transportation fuels and
technologies; and
(K) any other areas determined appropriate by the
governments of the United States, Mexico, and Canada.
(c) Program To Promote North American Energy Cooperation.--
(1) In general.--The Secretaries, in consultation with the
Secretary of State, the Secretary of Commerce, and the heads of
other relevant agencies, shall carry out a program to promote
cooperation on energy issues with the governments of Mexico and
Canada.
(2) Activities.--Under the program required by paragraph
(1), the Secretaries shall coordinate with the governments of
Mexico and Canada--
(A) to increase the production of energy supplies;
(B) to improve energy efficiency;
(C) to assist in the development and transfer of
energy supply and efficiency technologies that would
have a beneficial impact on world energy markets;
(D) to align energy-related regulations to reduce
the burden on energy companies conducting trans-border
activities and to align regulations and standards in
the appropriate sectors;
(E) to streamline the United States presidential
permitting process to ensure that requirements are
consistently implemented by having a fair and reliable
process for obtaining presidential permits for trans-
border energy infrastructure projects;
(F) to implement processes for cross-border
movement of equipment and workers to avoid delays in
business and trade transactions; and
(G) to involve States of the United States, states
of Mexico, and provinces of Canada in efforts to
advance North American energy integration.
(3) Loans and loan guarantees.--
(A) Establishment.--In implementing cooperative
agreements with the governments of Mexico and Canada
entered into under this subsection, the Secretary of
Energy shall establish a program under which the
Secretary may provide loans and loan guarantees to
support projects relating to the research, development,
and commercialization of covered energy sources.
(B) Eligible projects.--A project is eligible for a
loan or loan guarantee under subparagraph (A) if the
project--
(i) addresses a requirement relating to
improvement of covered energy sources, as
determined by the Secretary of Energy; and
(ii) is a joint venture between--
(I)(aa) a for-profit business
entity, institution of higher education
(as defined in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C.
1001(a))), National Laboratory (as
defined in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801)),
or nonprofit entity in the United
States; and
(bb) a for-profit business entity,
institution of higher education, or
nonprofit entity in Mexico or Canada;
or
(II) 2 or more of the following:
(aa) The United States
Government.
(bb) The Government of
Mexico.
(cc) The Government of
Canada.
(C) Applications.--
(i) In general.--An entity seeking a loan
or loan guarantee under subparagraph (A) shall
submit to the Secretary of Energy an
application for the loan or loan guarantee in
accordance with procedures established by the
Secretary, in consultation with the advisory
board established under subparagraph (D).
(ii) Loan guarantees.--The Secretary of
Energy shall require any entity seeking a loan
guarantee to pay all credit subsidy costs
associated with the loan guarantee.
(D) Advisory board.--
(i) Establishment.--The Secretary of Energy
shall establish an advisory board--
(I) to monitor the method by which
loans and loan guarantees are awarded
under subparagraph (A); and
(II) to provide to the Secretary of
Energy periodic performance reviews of
actions taken to carry out this
paragraph.
(ii) Composition.--The advisory board
established under clause (i) shall be composed
of 3 members, to be appointed by the Secretary
of Energy, of whom--
(I) 1 shall be a representative of
the United States Government;
(II) 1 shall be selected from a
list of nominees provided by the
Government of Mexico; and
(III) 1 shall be selected from a
list of nominees provided by the
Government of Canada.
(E) Contributed funds.--Notwithstanding section
3302 of title 31, United States Code, the Secretary of
Energy may accept, retain, and use funds contributed by
any person, government entity, or organization for
purposes of carrying out this paragraph--
(i) without further appropriation; and
(ii) without fiscal year limitation.
(F) Report.--Not later than 180 days after the date
of completion of a project for which a loan or loan
guarantee is provided under subparagraph (A), the
recipient of the loan or loan guarantee shall submit to
the Secretary of Energy a report that contains--
(i) a description of how the recipient used
the loan or loan guarantee; and
(ii) an evaluation of the level of success
of the project for which a loan or loan
guarantee was provided.
(d) International Partnerships.--
(1) In general.--The Secretary of Energy may enter into
cooperative agreements supporting and enhancing dialogue and
planning involving international partnerships between the
Department of Energy, including the National Laboratories (as
defined in section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)), and the government of Mexico or Canada.
(2) Federal share.--The Secretary of Energy may not pay
more than 50 percent of the costs of implementing cooperative
agreements entered into pursuant to paragraph (1).
(3) Annual reports.--If the Secretary of Energy enters into
agreements authorized by paragraph (1), the Secretary shall,
not less frequently than annually, submit to the committees
specified in paragraph (4) a report that describes, for the
year preceding submission of the report--
(A) actions taken to implement such agreements; and
(B) any projects undertaken pursuant to such
agreements.
(4) Committees specified.--The committees specified in this
paragraph are--
(A) the Committee on Energy and Natural Resources,
the Committee on Foreign Relations, and the Committee
on Appropriations of the Senate; and
(B) the Committee on Energy and Commerce, the
Committee on Science, Space, and Technology, the
Committee on Foreign Affairs, and the Committee on
Appropriations of the House of Representatives.
(e) United States-Mexico-Canada Energy Center.--
(1) In general.--The Secretary of Energy shall seek to
establish, jointly with the governments of Mexico and Canada, a
United States-Mexico-Canada Energy Center (in this subsection
referred to as the ``Center'') located in the United States.
(2) Purpose.--The purpose of the Center shall be to further
dialogue and collaboration between the United States, Mexico,
and Canada to develop more robust academic cooperation with
respect to--
(A) energy innovation technology and engineering,
water science, and technology transfer;
(B) analysis of emerging geopolitical dynamics,
threats, and crises from acquisitions by foreign
governments of natural resources and energy supplies;
and
(C) the development of domestic resources as a
response to those implications, crises, and threats.
(3) Use of experience and knowledge.--In establishing the
Center, the Secretary of Energy shall seek to leverage the
experience, knowledge, and expertise of institutions of higher
education and entities in the private sector, among others,
with respect to offshore energy development.
SEC. 7. STRATEGIC ENERGY FINANCING.
(a) Strategic Energy and Minerals Portfolio at United States
International Development Finance Corporation.--Title V of the Better
Utilization of Investments Leading to Development Act of 2018 (22
U.S.C. 9671 et seq.) is amended by adding at the end the following:
``SEC. 1455. STRATEGIC ENERGY AND MINERALS PORTFOLIO.
``The Corporation--
``(1) may provide support under title II for projects
related to any type of energy, including fossil fuels,
renewables (including hydropower), and nuclear energy, or the
production, processing, manufacturing, or recycling of critical
minerals (as defined in section 7002(a) of the Energy Act of
2020 (30 U.S.C. 1606(a))); and
``(2) may not prohibit, restrict, or otherwise impede the
provision of support on the basis of the type of energy
involved in a project.''.
(b) Promotion of Energy and Minerals Exports by Export-Import Bank
of the United States.--
(1) Strategic energy and minerals portfolio.--The Export-
Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended by
adding at the end the following:
``SEC. 16. STRATEGIC ENERGY AND MINERALS PORTFOLIO.
``(a) In General.--The Bank shall establish a strategic energy and
minerals portfolio focused on providing financing (including loans,
loan guarantees, and insurance) for civil nuclear energy infrastructure
projects (subject to subsection (c)), natural gas infrastructure
projects, and critical minerals projects (including production,
processing, manufacturing, or recycling), that may facilitate--
``(1) increases in exports of United States energy
commodities, such as regasification terminals;
``(2) the export of United States equipment, materials, and
technology; or
``(3) the strategic diversification of supply chains
critical to the United States economy.
``(b) Maximum Exposure Cap for Strategic Energy Portfolio.--
``(1) In general.--The aggregate amount of loans,
guarantees, and insurance under subsection (a) the Bank has
outstanding at any one time may not exceed $50,000,000,000.
``(2) Treatment of defaults.--A default on financing
provided under subsection (a) shall not--
``(A) be included in the default rate calculated by
the Bank under section 8(g)(1); or
``(B) count for purposes of the freeze on lending
provided for under section 6(a)(3).
``(c) Limitation.--The Bank may provide financing for civil nuclear
energy infrastructure projects only in countries with which the United
States has in effect a nuclear cooperation agreement under section 123
of the Atomic Energy Act of 1954 (42 U.S.C. 2153).
``(d) Rule of Construction.--Nothing in this section may be
construed to lessen the obligation of the Bank to conduct rigorous due
diligence and mitigate risks with respect to transactions or projects
for which the Bank provides financing under this section.
``(e) Critical Mineral Defined.--In this section, the term
`critical mineral' has the meaning given the term in section 7002(a) of
the Energy Act of 2020 (30 U.S.C. 1606(a)).''.
(2) Promotion of energy exports.--Section 2(b)(1)(C) of the
Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(C)) is
amended by striking ``nonnuclear renewable'' and inserting
``all''.
(3) Modification of limitation on financing for nuclear
energy exports.--Section 2(b)(5) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635(b)(5)) is amended by striking ``any
liquid metal fast breeder nuclear reactor or any nuclear fuel
reprocessing facility'' and inserting ``any nuclear material,
equipment, or technology not provided for under a nuclear
cooperation agreement in effect under section 123 of the Atomic
Energy Act of 1954 (42 U.S.C. 2153)''.
(4) Extension of export-import bank.--
(A) Aggregate loan, guarantee, and insurance
authority.--Section 6(a) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635e(a)) is amended--
(i) in paragraph (2), by striking ``2020
through 2027, means $135,000,000,000'' and
inserting ``2024 through 2033, means
$200,000,000,000''; and
(ii) in paragraph (3), by striking ``If''
and inserting ``Except as provided in section
16(b)(2), if''.
(B) Termination.--Section 7 of the Export-Import
Bank Act of 1945 (12 U.S.C. 635f) is amended by
striking ``2026'' and inserting ``2033''.
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