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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-241

======================================================================



 
  OVERSEAS PRIVATE INVESTMENT CORPORATION REAUTHORIZATION ACT OF 2007

                                _______
                                

 July 19, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Lantos, from the Committee on Foreign Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2798]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 2798) to reauthorize the programs of the Overseas 
Private Investment Corporation, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     2
Summary..........................................................    10
Background and Purpose for the Legislation.......................    10
Hearings.........................................................    11
Committee Consideration..........................................    11
Votes of the Committee...........................................    11
Committee Oversight Findings.....................................    11
New Budget Authority and Tax Expenditures........................    12
Congressional Budget Office Cost Estimate........................    12
Performance Goals and Objectives.................................    14
Constitutional Authority Statement...............................    15
New Advisory Committees..........................................    15
Congressional Accountability Act.................................    15
Earmark Identification...........................................    15
Section-by-Section Analysis and Discussion.......................    15
Changes in Existing Law Made by the Bill, as Reported............    29

                             The Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Overseas Private Investment 
Corporation Reauthorization Act of 2007''.

SEC. 2. FINDINGS.

  The Congress finds the following:
          (1) Since its founding in 1971, the Overseas Private 
        Investment Corporation (in this section referred to as 
        ``OPIC'') has helped to mobilize and facilitate private capital 
        by United States investors in developing and emerging market 
        countries in support of United States foreign policy and 
        development goals.
          (2) OPIC assistance should not, in any way, support projects 
        in countries that reject their obligations to support 
        international peace, security, and basic human rights.
          (3) OPIC assistance should not be provided to those who 
        support enemies of the United States.
          (4) OPIC assistance is a privilege and should be granted to 
        persons that, along with their affiliated companies, 
        demonstrate responsible and sustainable business practices, 
        particularly with regard to the environment, international 
        worker rights, and efforts against genocide and nuclear 
        proliferation. Denial of OPIC assistance is not a penalty or 
        sanction.
          (5) Over OPIC's 35-year history, OPIC has supported 
        $177,000,000,000 in operating investments in more than 150 
        developing countries, helping to create more than 800,000 jobs 
        and some $13,000,000,000 in host-government revenues.
          (6) OPIC projects have generated $71,000,000,000 in United 
        States exports and supported more than 271,000 United States 
        jobs.
          (7) Projects assisted by OPIC in fiscal year 2006 are 
        projected to generate $1,000,000,000 in United States exports, 
        support more than 2,700 United States jobs, and have a positive 
        impact on the United States balance of payments.
          (8) In fiscal year 2006, 87 percent of all OPIC-supported 
        projects supported small-and-medium-sized businesses in the 
        United States.
          (9) In an era of limited Federal budgetary resources, OPIC 
        has consistently demonstrated an ability to operate on a self-
        sustaining basis to support United States companies, all at a 
        net cost of zero to the United States taxpayer.
          (10) OPIC has reserves totaling approximately $5,300,000,000 
        and will make an estimated net budget contribution to the 
        international affairs account of $159,000,000 in fiscal year 
        2008.

SEC. 3. REAUTHORIZATION OF OPIC PROGRAMS.

  Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(2)) is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2011'' .

SEC. 4. PREFERENTIAL CONSIDERATION OF CERTAIN INVESTMENT PROJECTS.

  Section 231(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191(f)) is amended to read as follows:
          ``(f) to give preferential consideration to investment 
        projects in less developed countries the governments of which 
        are receptive to private enterprise, domestic and foreign, and 
        to projects in countries the governments of which are willing 
        and able to maintain conditions that enable private enterprise 
        to make its full contribution to the development process;''.

SEC. 5. REQUIREMENTS REGARDING INTERNATIONAL WORKER RIGHTS.

  (a) Country Requirements.--Subsection (a) of section 231A of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2191a(a)) is amended--
          (1) by amending the subsection heading to read as follows: 
        ``International Worker Rights'';
          (2) in paragraph (4), by striking ``(4) In'' and inserting 
        ``(5) Additional determination.--In'' ; and
          (3) by striking paragraphs (1) through (3) and inserting the 
        following:
          ``(1) Limitation on opic activities.--(A) The Corporation may 
        insure, reinsure, guarantee, or finance a project only if the 
        country in which the project is to be undertaken has made or is 
        making significant progress towards the recognition, adoption, 
        and implementation of laws that substantially provide 
        international worker rights, including in any designated zone, 
        or special administrative region or area, in that country.
          ``(B) The Corporation shall also include the following 
        language, in substantially the following form, in all contracts 
        which the Corporation enters into with eligible investors to 
        provide financial support under this title:
          ```The investor agrees not to take any actions to obstruct or 
        prevent employees of the foreign enterprise from exercising 
        their international worker rights (as defined in section 238(h) 
        of the Foreign Assistance Act of 1961), and agrees to adhere to 
        the obligations regarding those international worker rights.'
          ``(2) Preference to certain countries.--To the degree 
        possible and consistent with its development objectives, the 
        Corporation shall give preferential consideration to projects 
        in countries that have adopted, maintain, and enforce laws that 
        substantially provide international worker rights.
          ``(3) Use of annual reports on international worker rights.--
        The Corporation shall, in carrying out paragraph (1)(A), use, 
        among other sources, the reports submitted to the Congress 
        pursuant to section 504 of the Trade Act of 1974. Such other 
        sources include the observations, reports, and recommendations 
        of the International Labor Organization, and other relevant 
        organizations.
          ``(4) Inapplicability to humanitarian activities.--Paragraph 
        (1) shall not prohibit the Corporation from providing any 
        insurance, reinsurance, guaranty, financing, or other 
        assistance for the provision of humanitarian assistance in a 
        country.''.
  (b) Board of Directors.--Section 233(b) of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2193(b)) is amended by adding at the end the 
following: ``The selection of the small business, organized labor, and 
cooperative directors should be made, respectively, in consultation 
with relevant representative organizations.''.
  (c) Definitions.--Section 238 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2198) is amended--
          (1) in subsection (f), by striking ``and'' after the 
        semicolon;
          (2) in subsection (g), by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(h) the term `international worker rights' means--
                  ``(1) internationally recognized worker rights, as 
                defined in section 507(4) of the Trade Act of 1974 (19 
                U.S.C. 2467(4)); and
                  ``(2) the elimination of discrimination with respect 
                to employment and occupation.''.
  (d) General Provisions and Powers.--Section 239 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2199) is amended--
          (1) in subsection (h), by adding at the end the following: 
        ``In addition, the Corporation should consult with relevant 
        stakeholders in developing such criteria.''; and
          (2) in subsection (i), in the first sentence, by inserting 
        ``, including international worker rights,'' after 
        ``fundamental freedoms''.

SEC. 6. ENVIRONMENTAL ASSESSMENTS.

  Section 231A(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191a(b)) is amended to read as follows:
  ``(b) Environmental Impact.--The Board of Directors of the 
Corporation shall not vote in favor of any action proposed to be taken 
by the Corporation that is likely to have significant adverse 
environmental impacts, unless for at least 60 days before the date of 
the vote--
          ``(1) an environmental impact assessment, or initial 
        environmental audit, analyzing the environmental impacts of the 
        proposed action and of alternatives to the proposed action has 
        been completed by the project applicant and made available to 
        the Board of Directors; and
          ``(2) such assessment or audit has been made available to the 
        public of the United States, locally affected groups in the 
        host country, and host country nongovernmental 
        organizations.''.

SEC. 7. COMMUNITY SUPPORT.

  Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197) is 
amended by adding at the end the following:
  ``(p) Community Support.--To the maximum extent practicable, the 
Corporation shall require the applicant for a project that is subject 
to section 231A(b) to obtain broad community support for the 
project.''.

SEC. 8. CLIMATE CHANGE MITIGATION ACTION PLAN.

  Title IV of chapter 2 of part I of the Foreign Assistance Act of 1961 
(22 U.S.C. 2291 et seq.) is amended by inserting after section 234A the 
following new section:

``SEC. 234B. CLIMATE CHANGE MITIGATION.

  ``(a) Mitigation Action Plan.--The Corporation shall, not later than 
180 days after the date of the enactment of the Overseas Private 
Investment Corporation Reauthorization Act of 2007, institute a climate 
change mitigation action plan that includes the following:
          ``(1) Clean and efficient energy technology.--
                  ``(A) Increasing assistance.--The Corporation shall 
                establish a goal of substantially increasing its 
                support of projects that use, develop, or otherwise 
                promote the use of clean energy technologies over the 
                4-year period beginning on the date of the enactment of 
                the Overseas Private Investment Corporation 
                Reauthorization Act of 2007.
                  ``(B) Preferential treatment to projects.--The 
                Corporation shall give preferential treatment to the 
                evaluation and awarding of assistance for and provide 
                greater flexibility in supporting projects that use, 
                develop, or otherwise promote the use of clean and 
                efficient energy technologies.
          ``(2) Environmental impact assessments.--
                  ``(A) Greenhouse gas emissions.--The Corporation 
                shall, in making an environmental impact assessment for 
                a project under section 231A(b), take into account the 
                degree to which the project contributes to the emission 
                of greenhouse gases.
                  ``(B) Other duties not affected.--The requirement 
                under subparagraph (A) is in addition to any other 
                requirement, obligation, or duty that the Corporation 
                has.
          ``(3) Report to congressional committees.--The Corporation 
        shall, within 180 days after the date of the enactment of the 
        Overseas Private Investment Corporation Reauthorization Act of 
        2007, submit to the Committee on Foreign Affairs of the House 
        of Representatives and the Committee on Foreign Relations of 
        the Senate a report on the plan developed to carry out 
        paragraph (1)(A). Thereafter, the Corporation shall include in 
        its annual report under section 240A a discussion of such plan 
        and its implementation.
  ``(b) Extraction Investments.--
          ``(1) Prior notification to congressional committees.--The 
        Corporation may not approve any contract of insurance or 
        reinsurance, or any guaranty, or enter into any agreement to 
        provide financing for any project which significantly involves 
        an extractive industry and in which assistance by the 
        Corporation would be valued at $10,000,000 or more (including 
        contingent liability), until at least 30 days after the 
        Corporation notifies the Committee on Foreign Affairs of the 
        House of Representatives and the Committee on Foreign Relations 
        of the Senate of such contract or agreement.
          ``(2) Commitment to eiti principles.--The Corporation may 
        approve a contract of insurance or reinsurance, or any 
        guaranty, or enter into an agreement to provide financing to an 
        eligible investor for a project that significantly involves an 
        extractive industry only if--
                  ``(A) the eligible investor has agreed to implement 
                the Extractive Industries Transparency Initiative 
                principles and criteria, or substantially similar 
                principles and criteria; or
                  ``(B) the host country where the project is to be 
                carried out has committed to the Extractive Industries 
                Transparency Initiative principles and criteria, or 
                substantially similar principles and criteria.
          ``(3) Preference for certain projects.--With respect to all 
        projects that significantly involve an extractive industry, the 
        Corporation, to the degree possible and consistent with its 
        development objectives, shall give preference to a project in 
        which both the eligible investor has agreed to implement the 
        Extractive Industries Transparency Initiative principles and 
        criteria, or substantially similar principles and criteria, and 
        the host country where the project is to be carried out has 
        committed to the Extractive Industries Transparency Initiative 
        principles and criteria, or substantially similar principles 
        and criteria.
          ``(4) Definitions.--In this subsection:
                  ``(A) Extractive industry.--The term `extractive 
                industry' refers to an enterprise engaged in the 
                exploration, development, or extraction of oil and gas 
                reserves, metal ores, gemstones, industrial minerals, 
                or coal.
                  ``(B) Extractive industries transparency initiative 
                principles and criteria.--The term `Extractive 
                Industries Transparency Initiative principles and 
                criteria' means the principles and criteria of the 
                Extractive Industries Transparency Initiative, as set 
                forth in Annex A to the Anti-Corruption Policies and 
                Strategies Handbook of the Corporation, as published in 
                September 2006.
          ``(5) Reporting requirement.--The Corporation shall include 
        in its annual report required under section 240A a description 
        of its activities to carry out this subsection.
  ``(c) Definitions.--In this section:
          ``(1) Clean and efficient energy technology.--The term `clean 
        and efficient energy technology' means an energy supply or end-
        use technology--
                  ``(A) such as--
                          ``(i) solar technology;
                          ``(ii) wind technology;
                          ``(iii) geothermal technology;
                          ``(iv) hydroelectric technology; and
                          ``(v) carbon capture technology; and
                  ``(B) that, over its life cycle and compared to a 
                similar technology already in commercial use--
                          ``(i) is reliable, affordable, economically 
                        viable, socially acceptable, and compatible 
                        with the needs and norms of the country 
                        involved;
                          ``(ii) results in--
                                  ``(I) reduced emissions of greenhouse 
                                gases; or
                                  ``(II) increased geological 
                                sequestration; and
                          ``(iii) may--
                                  ``(I) substantially lower emissions 
                                of air pollutants; or
                                  ``(II) generate substantially smaller 
                                and less hazardous quantities of solid 
                                or liquid waste.
          ``(2) Greenhouse gas.--The term `greenhouse gas' means--
                  ``(A) carbon dioxide;
                  ``(B) methane;
                  ``(C) nitrous oxide;
                  ``(D) hydrofluorocarbons;
                  ``(E) perfluorocarbons; or
                  ``(F) sulfur hexafluoride.''.

SEC. 9. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN RAILWAY 
                    CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.

  Section 237 of the of the Foreign Assistance Act of 1961 (22 U.S.C. 
2197) is further amended by adding at the end the following:
  ``(q) Prohibition on Assistance for Certain Railway Projects.--The 
Corporation may not provide insurance, reinsurance, a guaranty, 
financing, or other assistance to support the development or promotion 
of any railway connection or railway-related connection that does not 
traverse or connect with Armenia and does connect Azerbaijan and 
Turkey.''.

SEC. 10. INELIGIBILITY OF PERSONS DOING CERTAIN BUSINESS WITH STATE 
                    SPONSORS OF TERRORISM.

  (a) In General.--Section 237 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197) is further amended by adding at the end the following:
  ``(r) Ineligible Projects.--
          ``(1) In general.--A project will not be eligible to receive 
        support provided by the Corporation under this title if either 
        of the following applies:
                  ``(A)(i) An applicant for insurance, reinsurance, 
                financing, or other support for a project provided to 
                the government of a state sponsor of terrorism a loan, 
                or an extension of credit, that remains outstanding.
                  ``(ii) For purposes of this subparagraph, the sale of 
                goods, other than food or medicine, on any terms other 
                than a cash basis shall be considered to be an 
                extension of credit.
                  ``(B) An applicant for insurance, reinsurance, 
                financing, or other support for a project has an 
                investment commitment valued at $20,000,000 or more for 
                the energy sector in a country that is a state sponsor 
                of terrorism.
          ``(2) Definitions.--In this subsection:
                  ``(A) Cash basis.--The term `cash basis' refers to a 
                sale in which the purchaser of goods or services is 
                required to make payment in full within 45 days after 
                receiving the goods or services.
                  ``(B) Energy sector.--The term `energy sector' refers 
                to activities to develop or transport petroleum or 
                natural gas resources.
                  ``(C) Investment commitment.--The term `investment 
                commitment' means any of the following activities if 
                such activity is undertaken pursuant to a commitment, 
                or pursuant to the exercise of rights under a 
                commitment, that was entered into with the government 
                of a state sponsor of terrorism or a nongovernmental 
                entity in a country that is a state sponsor of 
                terrorism:
                          ``(i) The entry into a contract that includes 
                        responsibility for the development of petroleum 
                        resources located in a country that is a state 
                        sponsor of terrorism, or the entry into a 
                        contract providing for the general supervision 
                        and guarantee of another person's performance 
                        of such a contract.
                          ``(ii) The purchase of a share of ownership, 
                        including an equity interest, in that 
                        development.
                          ``(iii) The entry into a contract providing 
                        for the participation in royalties, earnings, 
                        or profits in that development, without regard 
                        to the form of the participation.
                  ``(D) State sponsor of terrorism.--The term `state 
                sponsor of terrorism' means a country the government of 
                which the Secretary of State has determined, for 
                purposes of section 6(j) of the Export Administration 
                Act of 1979, section 620A of the Foreign Assistance Act 
                of 1961, section 40 of the Arms Export Control Act, or 
                any other provision of law, to be a government that has 
                repeatedly provided support for acts of international 
                terrorism.
          ``(3) Certification.--
                  ``(A) By applicants.--A person or entity applying for 
                insurance, reinsurance, a guaranty, financing, or other 
                assistance under this title may not receive such 
                support unless its chief executive officer certifies to 
                the Corporation, under penalty of perjury, that the 
                person or entity and its majority-owned subsidiaries 
                are not engaged in any activity described in 
                subparagraph (A) or (B) of paragraph (1).
                  ``(B) By ultimate parent entities.--In the case of an 
                applicant that is a majority-owned entity of another 
                entity, in addition to the certification under 
                subparagraph (A), the chief executive officer of the 
                ultimate parent entity of the applicant must certify, 
                under penalty of perjury, that it and its majority-
                owned subsidiaries are not engaged in any activity 
                described in subparagraph (A) or (B) of paragraph (1).
                  ``(C) Application to straw man transactions.--In any 
                case in which--
                          ``(i) an applicant for insurance, 
                        reinsurance, financing, or other assistance 
                        under this title is providing goods and 
                        services to a project,
                          ``(ii) more than 50 percent of such goods and 
                        services are acquired from an unaffiliated 
                        entity, and
                          ``(iii) the unaffiliated entity is receiving 
                        $20,000,000 or more, or sums greater than 50 
                        percent of the amount of the assistance 
                        provided by the Corporation for the project 
                        (including contingent liability), for such 
                        goods or services,
                then the chief executive officer of the unaffiliated 
                entity must make a certification under subparagraph 
                (A), and any ultimate parent entity must make a 
                certification required by subparagraph (B).
                  ``(D) Diligent inquiry.--A certification required by 
                subparagraph (A), (B), or (C) may be made to the best 
                knowledge and belief of the certifying officer if that 
                officer states that he or she has made diligent inquiry 
                into the matter certified.
                  ``(E) Exception.--(i) A chief executive officer of an 
                applicant or other entity may provide a certification 
                required by subparagraph (A), (B), or (C) with respect 
                to the activity of a majority-owned subsidiary or 
                entity notwithstanding activity by such majority-owned 
                subsidiary or entity that would cause a project to be 
                ineligible for support under subparagraph (A) or (B) of 
                paragraph (1) if such activity is carried out under a 
                contract or other obligation of such majority-owned 
                subsidiary or entity that was entered into or incurred 
                before the acquisition of such majority-owned 
                subsidiary or entity by the applicant or ultimate 
                parent entity.
                  ``(ii) Clause (i) shall not apply if the terms of 
                such contract or other obligation are expanded or 
                extended after such acquisition.
                  ``(F) Definition.--For purposes of this paragraph, a 
                person is an ultimate parent of an entity if the person 
                owns directly, or through majority ownership of other 
                entities, greater than 50 percent of the equity of the 
                entity.
          ``(4) Exception.--The prohibition in paragraph (1) shall 
        not--
                  ``(A) apply to a loan, extension of credit, or 
                investment commitment by an applicant, or other entity 
                covered by a certification under subparagraph (A), (B), 
                or (C) of paragraph (3), in Southern Sudan, Southern 
                Kordofan/Nuba Mountains State, Blue Nile State, or 
                Abyei, Darfur, if the Corporation, with the concurrence 
                of the Secretary of State, determines that such loan, 
                extension of credit, or investment commitment will 
                provide emergency relief, promote economic self-
                sufficiency, or implement a nonmilitary program in 
                support of a viable peace agreement in Sudan, including 
                the Comprehensive Peace Agreement for Sudan and the 
                Darfur Peace Agreement; or
                  ``(B) prohibit the Corporation from providing support 
                for projects in Southern Sudan, Southern Kordofan/Nuba 
                Mountains State, Blue Nile State, and Abyei, Darfur, if 
                the Corporation, with the concurrence of the Secretary 
                of State, determines that such projects will provide 
                emergency relief, promote economic self-sufficiency, or 
                implement a nonmilitary program in support of a viable 
                peace agreement in Sudan, including the Comprehensive 
                Peace Agreement for Sudan and the Darfur Peace 
                Agreement .
          ``(5) Prospective application of subsection.--This subsection 
        shall not be applied to limit support by the Corporation under 
        this title because an applicant, or other entity covered by a 
        certification under subparagraph (A), (B), or (C) of paragraph 
        (3) engaged in commercial activity specifically licensed by the 
        Office of Foreign Assets Control of the Department of the 
        Treasury.''.
  (b) Termination.--
          (1) In general.--The amendment made by this section shall 
        cease to be effective with respect to a country that is a state 
        sponsor of terrorism 30 days after the President certifies to 
        the appropriate congressional committees that--
                  (A) the country has ceased providing support for acts 
                of international terrorism and no longer satisfies the 
                requirements for designation as a state sponsor of 
                terrorism;
                  (B) the country does not possess nuclear weapons or a 
                significant program to develop nuclear weapons; and
                  (C) the country is not committing genocide or 
                conducting a program of ethnic cleansing against a 
                civilian population that approaches genocide.
          (2) Definitions.--In this subsection:
                  (A) Appropriate congressional committees.--The term 
                ``appropriate congressional committees'' means the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate.
                  (B) State sponsor of terrorism.--The term ``state 
                sponsor of terrorism'' has the meaning given that term 
                in section 237(r)(2)(D) of the Foreign Assistance Act 
                of 1961, as added by subsection (a) of this section.

SEC. 11. INCREASED TRANSPARENCY.

  (a) In General.--Section 237 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197) is further amended by adding at the end the following 
new subsections:
  ``(s) Availability of Project Information.--Beginning 90 days after 
the date of the enactment of the Overseas Private Investment 
Corporation Reauthorization Act of 2007, the Corporation shall make 
public, and post on its Internet website, summaries of all new projects 
supported by the Corporation, and other relevant information, except 
that the Corporation shall not include any confidential business 
information in the summaries and information made available under this 
subsection.
  ``(t) Review of Methodology.--Not later than 180 days after the date 
of the enactment of the Overseas Private Investment Corporation 
Reauthorization Act of 2007, the Corporation shall publish in the 
Federal Register and periodically revise, subject to a period of public 
comment, the detailed methodology, including relevant regulations, used 
to assess and monitor the impact of projects supported by the 
Corporation on the development and environment of, and international 
worker rights in, host countries, and on United States employment.
  ``(u) Public Notice Prior to Project Approval.--
          ``(1) Public notice.--The Board of Directors of the 
        Corporation may not vote in favor of any action proposed to be 
        taken by the Corporation on any Category A project until at 
        least 60 days after the Corporation--
                  ``(A) makes available for public comment a summary of 
                the project and relevant information about the project; 
                and
                  ``(B) makes the summary and information described in 
                paragraph (1) available to locally affected groups in 
                the area of impact of the proposed project, and to host 
                country nongovernmental organizations.
        The Corporation shall not include any business confidential 
        information in the summary and information made available under 
        subparagraphs (A) and (B).
          ``(2) Published response.--To the extent practicable, the 
        Corporation shall publish responses to the comments received 
        under paragraph (1) with respect to a Category A project and 
        submit the responses to the Board not later than 7 days before 
        a vote is to be taken on any action proposed by the Corporation 
        on the project.
          ``(3) Definitions.--In this subsection, the term `Category A 
        project' means any project or other activity for which the 
        Corporation proposes to provide insurance, reinsurance, 
        financing, or other support under this title and which is 
        likely to have significant adverse environmental impacts.''.
  (b) Office of Accountability.--Section 237 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2197) is further amended by adding at the end 
the following new subsection:
  ``(v) Office of Accountability.--The Corporation shall maintain an 
Office of Accountability to provide problem-solving services for 
projects supported by the Corporation and to review the Corporation's 
compliance with its environmental, social, worker rights, human rights, 
and transparency policies and procedures, to the maximum extent 
practicable. The Office of Accountability shall operate in a manner 
that is fair, objective and transparent.''.

SEC. 12. FRAUD AND OTHER BREACHES OF CONTRACT.

  Section 237(n) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2197(n)) is amended--
          (1) by striking ``Whoever'' and inserting:
          ``(1) In general.--Whoever''; and
          (2) by adding at the end the following:
          ``(2) Deferrals to department of justice.--(A) The President 
        of the Corporation shall refer to the Department of Justice for 
        appropriate action information known to the Corporation 
        concerning any substantial evidence of--
                  ``(i) a violation of this title;
                  ``(ii) a material breach of contract entered into 
                with the Corporation by an eligible investor; or
                  ``(iii) a material false representation made by an 
                investor to the Corporation.
          ``(B) Subparagraph (A) does not apply if the President of the 
        Corporation concludes that the matter described in clause (i), 
        (ii), or (iii), as the case may be, of subparagraph (A)--
                  ``(i) is not evidence of a possible violation of 
                criminal law; and
                  ``(ii) is not evidence that the Federal Government is 
                entitled to civil remedy or to impose a civil 
                penalty.''.

SEC. 13. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS.

  (a) In General.--Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199) is amended by adding at the end the following:
  ``(l) Transparency and Accountability of Investment Funds.--
          ``(1) Competitive selection of investment fund management.--
        With respect to any investment fund that the Corporation 
        creates on or after the date of the enactment of the Overseas 
        Private Investment Corporation Reauthorization Act of 2007, the 
        Corporation may select persons to manage the fund only by 
        contract using full and open competitive procedures.
          ``(2) Criteria for selection.--In assessing proposals for 
        investment fund management proposals, the Corporation shall 
        consider, in addition to other factors, the following:
                  ``(A) The prospective fund management's experience, 
                depth, and cohesiveness.
                  ``(B) The prospective fund management's track record 
                in investing risk capital in emerging markets.
                  ``(C) The prospective fund management's experience, 
                management record, and monitoring capabilities in its 
                target countries, including details of local presence 
                (directly or through local alliances).
                  ``(D) The prospective fund management's experience as 
                a fiduciary in managing institutional capital, meeting 
                reporting requirements, and administration.
                  ``(E) The prospective fund management's record in 
                avoiding investments in companies that would be 
                disqualified under section 237(r).
          ``(3) Annual report.--The Corporation shall include in each 
        annual report under section 240A an analysis of the investment 
        fund portfolio of the Corporation, including the following:
                  ``(A) Fund performance.--An analysis of the aggregate 
                financial performance of the investment fund portfolio 
                grouped by region and maturity.
                  ``(B) Status of loan guaranties.--The amount of 
                guaranties committed by the Corporation to support 
                investment funds, including the percentage of such 
                amount that has been disbursed to the investment funds.
                  ``(C) Risk ratings.--The definition of risk ratings, 
                and the current aggregate risk ratings for the 
                investment fund portfolio, including the number of 
                investment funds in each of the Corporation's rating 
                categories.
                  ``(D) Competitive selection of investment fund 
                management.--The number of proposals received and 
                evaluated for each newly established investment 
                fund.''.
  (b) GAO Audit.--Not later than 1 year after the submission of the 
first report to Congress under section 240A of the Foreign Assistance 
Act of 1961 that includes the information required by section 239(l)(3) 
of that Act (as added by subsection (a) of this section), the 
Comptroller General of the United States shall prepare and submit to 
the Committee on Foreign Affairs of the House of Representatives and 
the Committee on Foreign Relations of the Senate an independent 
assessment of the investment fund portfolio of the Overseas Private 
Investment Corporation, covering the items required to be addressed 
under such section 239(l)(3).

SEC. 14. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ.

  Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is 
amended by adding at the end the following:
  ``(m) Operations in Iraq.--Notwithstanding subsections (a) and (b) of 
section 237, the Corporation is authorized to undertake in Iraq any 
program authorized by this title.''.

SEC. 15. CONSISTENCY WITH EXISTING LAW.

  Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is 
further amended by adding at the end the following:
  ``(n) Consistency With Other Law.--Section 620L of this Act shall 
apply to any insurance, reinsurance, guaranty, or other financing 
issued by the Corporation for projects in the West Bank and Gaza to the 
same extent as such section applies to other assistance under this Act.
  ``(o) Limitation on Assistance to Gaza and the West Bank .--The 
Corporation may not provide insurance, reinsurance, a guaranty, 
financing, or other assistance to support a project in any part of Gaza 
or the West Bank unless the Secretary of State determines that the 
location for the project is not under the effective control of Hamas or 
any other foreign terrorist organization designated under section 219 
of the Immigration and Nationality Act (8 U.S.C. 1189).''.

SEC. 16. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM CONTINGENT 
                    LIABILITY.

  Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is 
further amended by adding at the end the following:
  ``(p) Congressional Notification of Increase in Maximum Contingent 
Liability.--The Corporation shall notify the Committee on Foreign 
Affairs of the House of Representatives and the Committee on Foreign 
Relations of the Senate not later than 15 days after the date on which 
the Corporation's maximum contingent liability outstanding at any one 
time pursuant to insurance issued under section 234(a), and the amount 
of financing issued under sections 234(b) and (c), exceeds the previous 
fiscal year's maximum contingent liability by 25 percent.''.

SEC. 17. ASSISTANCE FOR SMALL BUSINESSES AND ENTITIES.

  Section 240 of the Foreign Assistance Act of 1961 (22 U.S.C. 2200) is 
amended by adding at the end the following:
  ``(c) Resources Dedicated to Small Businesses, Cooperatives, and 
Other Small United States Investors.--The Corporation shall ensure that 
adequate personnel and resources, including senior officers, are 
dedicated to assist United States small businesses, cooperatives, and 
other small United States investors in obtaining insurance, 
reinsurance, financing, and other support under this title. The 
Corporation shall include, in each annual report under section 240A, 
the following information with respect to the period covered by the 
report:
          ``(1) A description of such personnel and resources.
          ``(2) The number of small businesses, cooperatives, and other 
        small United States investors that received such insurance, 
        reinsurance, financing, and other support, and the dollar value 
        of such insurance, reinsurance, financing and other support.
          ``(3) A description of the projects for which such insurance, 
        reinsurance, financing, and other support was provided.''.

SEC. 18. TECHNICAL CORRECTIONS.

  (a) Pilot Equity Finance Program.--Section 234 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194) is amended--
          (1) by striking subsection (g); and
          (2) by redesignating subsection (h) as subsection (g).
  (b) Transfer Authority.--Section 235 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2195) is amended--
          (1) by striking subsection (e); and
          (2) by redesignating subsection (f) as subsection (e).
  (c) Guaranty Contract.--Section 237(j) of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2197(j)) is amended by inserting ``insurance, 
reinsurance, and'' after ``Each''.
  (d) Transfer of Predecessor Programs and Authorities.--
          (1) Transfer.--Section 239 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2199), as amended by the preceding provisions 
        of this Act, is amended--
                  (A) by striking subsection (b); and
                  (B) by redesignating the subsections (c) through (p) 
                as subsections (b) through (o), respectively.
          (2) Conforming amendments.--(A) Section 237(m)(1) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2197(m)(1)) is 
        amended by striking ``239(g)'' and inserting ``239(f)''.
          (B) Section 240A(a) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2200A(a)) is amended--
                  (i) in paragraph (1), by striking ``239(h)'' and 
                inserting ``239(g)''; and
                  (ii) in paragraph (2)(A), by striking ``239(i)'' and 
                inserting ``239(h)''.
          (C) Section 209(e)(16) of the Admiral James W. Nance and Meg 
        Donovan Foreign Relations Authorization Act, Fiscal Years 2000 
        and 2001 (as enacted into law by section 1000(a)(7) of Public 
        Law 106-113; 31 U.S.C. 1113 note) is amended by striking 
        ``239(c)'' and ``2199(c)'' and inserting ``239(b)'' and 
        ``2199(b)'', respectively.
  (e) Additional Clerical Amendments.--Section 234(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194(b)) is amended by striking 
``235(a)(2)'' and inserting ``235(a)(1)''.

SEC. 19. EFFECTIVE DATE.

  (a) New Applications.--This Act and the amendments made by this Act 
shall apply with respect to any application for insurance, reinsurance, 
a guaranty, financing, or other support under title IV of chapter 2 of 
part I of the Foreign Assistance Act of 1961 if the application is 
received by the Overseas Private Investment Corporation on or after 
July 1, 2007, and the application is approved by the Corporation on or 
after the date of the enactment of this Act.
  (b) Extensions and Renewals.--
          (1) In general.--Subject to paragraph (2), this Act and the 
        amendments made by this Act shall apply with respect to any 
        extension or renewal of a contract or agreement for any such 
        insurance, reinsurance, guaranty, financing, or support that 
        was entered into by the Corporation before the date of the 
        enactment of this Act if the extension or renewal is approved 
        by the Corporation on or after such date of enactment.
          (2) Exception.--This Act and the amendments made by this Act 
        shall not apply to any extension or renewal which is 
        substantially identical to an extension or renewal formally 
        requested in a detailed writing filed with the Corporation 
        before July 1, 2007.

                                Summary

    H.R. 2798, the Overseas Private Investment Corporation 
Reauthorization Act of 2007, was referred to the Committee on 
Foreign Affairs on June 20, 2007, and was subsequently referred 
to the Subcommittee on Terrorism, Nonproliferation, and Trade. 
On June 21, 2007, the Subcommittee on Terrorism, 
Nonproliferation, and Trade adopted an amendment in the nature 
of a substitute, and the bill was reported favorably, as 
amended, to the Committee on Foreign Affairs by a vote of 6-2. 
On June 26, 2007, during the full committee markup, the 
Committee on Foreign Affairs reported the bill favorably, as 
amended, by a vote of 23-5, with one voting ``present.''

               Background and Purpose for the Legislation

    The Overseas Private Investment Corporation (OPIC) was 
established as an agency of the United States in 1971. OPIC's 
mandate is to mobilize and facilitate the participation of 
United States private capital and skills in the economic and 
social development of less developed countries, thereby 
complementing the development assistance objectives of the 
United States. OPIC provides political risk insurance, project 
financing, and other financial assistance to U.S. companies in 
support of these objectives. Over the agency's 35-year history, 
OPIC has supported $177,000,000,000 in assistance in more than 
150 developing countries, helping to create more than 800,000 
jobs and some $13,000,000,000 in host-government revenues. OPIC 
operates on a self-sustaining basis, at a net cost of zero to 
U.S. taxpayers.
    H.R. 2798, the ``Overseas Private Investment Corporation 
Reauthorization Act of 2007'' reauthorizes OPIC through 
September 30, 2011, while strengthening the agency's 
development mandate and ensuring that OPIC activities are 
consistent with United States foreign policy objectives. The 
bill has many important aspects, including: (1) strengthening 
the rights of workers overseas; (2) requiring OPIC to institute 
a climate change mitigation action plan to increase the 
Corporation's support of projects that use and promote the use 
of clean energy technology; and (3) discouraging private sector 
investment with enemies of the United States by prohibiting the 
Corporation from supporting applicants of OPIC assistance that 
have certain ties to state sponsors of terrorism.

                                Hearings

    The Subcommittee on Terrorism, Nonproliferation, and Trade 
held a hearing entitled ``The Reauthorization of OPIC'' on May 
24, 2007. The Subcommittee heard testimony from Robert 
Mosbacher, Jr., President and Chief Executive Officer of the 
Overseas Private Investment Corporation; Jeff Vogt of the AFL-
CIO; Jonathan Sohn of the World Resources Institute; Frank J. 
Gaffney, Jr. of the Center for Security Policy; and Dr. Tim 
Kane of The Heritage Foundation.

                        Committee Consideration

    On June 26, 2007, the Committee held a markup and H.R. 2798 
was reported favorably to the House, as amended, by a vote of 
23-5, with one voting ``present.''

                         Votes of the Committee

    H.R. 2798 was reported favorably to the House, as amended, 
by a vote of 23-5, with one voting ``present.''

Voting yes: Lantos, Ackerman, Faleomavaega, Sherman, Wexler, 
        Engel, Watson, Carnahan, Woolsey, Scott, Sires, Ros-
        Lehtinen, Gallegly, Manzullo, Pence, Wilson, Barrett, 
        Fortenberry, McCaul, Poe, Inglis, Fortuno, and 
        Bilirakis.

Voting no: Burton, Royce, Chabot, Tancredo, and Flake.

Voting ``present'': Jackson Lee.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    In compliance with Clause 3(c)(2) of House Rule XIII, the 
Committee adopts as its own the estimate of new budget 
authority, entitlement authority, or tax expenditures or 
revenues contained in the cost estimate prepared by the 
Director of the Congressional Budget Office, pursuant to 
section 402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R.2798, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 16, 2007.
Hon. Tom Lantos, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2798, the Overseas 
Private Investment Corporation Reauthorization Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sam 
Papenfuss, who can be reached at 226-2840.
            Sincerely,
                                           Peter R. Orszag.
Enclosure

cc:
        Honorable Ileana Ros-Lehtinen
        Ranking Member
H.R. 2798--Overseas Private Investment Corporation Reauthorization Act 
        of 2007

                                SUMMARY

    H.R. 2798 would extend through 2011 the authority of the 
Overseas Private Investment Corporation (OPIC) to issue 
political risk insurance and to finance investments in 
developing countries and emerging market economies with direct 
loans and loan guarantees. Additionally, the bill would require 
OPIC to give preferential treatment to a variety of projects, 
including those in less-developed countries, those that respect 
workers' rights, those that promote the use of alternative 
energy sources, and those that agree to an international 
standard for transparency for projects that involve extractive 
industries, like mining and drilling. H.R. 2798 also would 
require OPIC to publish summaries of each project it approves 
on its Internet Web site, use competitive bidding to select 
managers for its investment funds, and create an office of 
accountability. Finally, the bill would allow OPIC to operate 
in Iraq on a permanent basis as well as in Gaza and Sudan with 
the concurrence of the Secretary of State.
    CBO estimates that implementing H.R. 2798 would cost $6 
million in 2008 and $74 million over the 2008-2012 period, 
assuming appropriation of the estimated amounts. Enacting the 
bill would not affect direct spending or revenues.
    H.R. 2798 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 2798 is shown in the 
following table. The costs of this legislation fall within 
budget function 150 (international affairs).

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                              2007     2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for OPIC                            -124     -193     -190     -189     -195     -209
  Estimated Authorization Level\1\
  Estimated Outlays                                             -62     -144     -165     -176     -191     -207

Proposed Changes                                                  0       33       30       29       35        4
  Estimated Authorization Level\2\
  Estimated Outlays                                               0        6        7       12       23       26

Spending Under H.R. 2798 for OPIC                              -124     -160     -160     -160     -160     -205
  Estimated Authorization Level
  Estimated Outlays                                             -62     -138     -158     -164     -168     -181
----------------------------------------------------------------------------------------------------------------
Note: OPIC = Overseas Private Investment Corporation.
\1\The 2007 level is the amount appropriated for that year plus the estimated amount of offsetting collections
  for negative subsidy receipts in OPIC's credit program account and for collections in OPIC's noncredit
  account. The 2008-2012 levels are CBO's baseline projections for collections and administrative spending
  sufficient to service OPIC's outstanding portfolio.
\2\The estimated authorization level reflects the amount OPIC requested for its 2008 appropriation, adjusted for
  inflation, minus the estimated amount OPIC would need to service its outstanding portfolio of insurance,
  loans, and loan guarantees.

                           BASIS OF ESTIMATE

    For this estimate, CBO assumes that the bill will be 
enacted before the end of fiscal year 2007, that the necessary 
funds and authority will be provided in annual appropriation 
acts near the start of each fiscal year, and that outlays will 
follow historical spending patterns for OPIC activities.
    OPIC insures investors in developing countries and emerging 
markets against losses due to expropriation, currency 
inconvertibility, and damage that results from political 
violence. In addition, OPIC provides direct loans and loan 
guarantees to finance such investment. The bill would authorize 
OPIC to issue new insurance policies and to make direct loans 
and loan guarantees through 2011, to the extent the necessary 
authority and funds are provided in annual appropriations acts.
    The estimated spending under current law assumes that OPIC 
continues to service its outstanding insurance and credits and 
to receive collections on its investments in U.S. securities, 
but that it issues no new insurance policies and finances no 
new investments after September 30, 2007. (Interest on existing 
securities brings in collections of more than $200 million a 
year to the OPIC account, but that interest is paid by the U.S. 
Treasury and thus shows up as an offsetting payment elsewhere 
in the federal budget.) CBO expects that administrative 
expenses under current law would gradually be reduced to the 
minimum rate necessary to service outstanding insurance and 
credits.
    CBO estimates that funding for administrative expenses and 
the cost of credit would be provided in annual appropriations 
acts at the level requested by OPIC for 2008--$77 million--
adjusted for inflation. Additionally, we expect that under H.R. 
2798, OPIC would continue to issue new insurance policies 
through 2011. Because the bill would extend OPIC's authorities 
through 2011 only, we estimate that funding in 2012 would only 
be needed for the administrative expenses of servicing 
outstanding insurance, direct loans, and loan guarantees.
    For the past few years, the subsidy rate for many loan 
guarantees made by OPIC has been negative, thus generating 
discretionary offsetting collections. CBO estimates that under 
current law those collections would gradually decline from $36 
million in 2007 to $6 million in 2011. Under the bill, CBO 
estimates that negative subsidy collections would increase by 
$114 million over the 2008-2012 period, and those collections 
are reflected in the net estimated costs over the 2008-2012 
period.
    Based on information from OPIC, CBO estimates that the new 
requirements in H.R. 2798 would not significantly affect the 
costs of OPIC's operations. Accordingly, CBO estimates that 
extending OPIC's authorization through 2011 would have a net 
cost of $6 million in 2008 and $74 million over the 2008-2012 
period, assuming appropriation of the necessary funds.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    H.R. 2798 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would not affect the budgets of 
state, local or tribal governments.

                         ESTIMATE PREPARED BY:

Federal Costs: Sam Papenfuss (226-2840)
Impact on State, Local, and Tribal Governments: Neil Hood (225-
        3220)
Impact on the Private Sector: Paige Piper/Bach (226-2960)

                         ESTIMATE APPROVED BY:

Peter H. Fontaine
Deputy Assistant Director for Budget Analysis

                    Performance Goals and Objectives

    Pursuant to clause (3)(c) of House rule XIII, upon 
enactment of this legislation, the Overseas Private Investment 
Corporation should use the support programs that it offers to 
promote internationally-recognized worker rights, encourage the 
use of clean and efficient energy technology, and deter 
investments in states that sponsor terrorism, engage in nuclear 
proliferation, or commit acts of genocide.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8 of the Constitution.

                        New Advisory Committees

    H.R. 2798 does not establish or authorize any new advisory 
committees.

                    Congressional Accountability Act

    H.R. 2798 does not apply to the Legislative Branch.

                         Earmark Identification

    H.R. 2798 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

               Section-by-Section Analysis and Discussion

Section 1. Short Title.
    This section states that this Act may be cited as the 
``Overseas Private Investment Corporation Reauthorization Act 
of 2007.''
Section 2. Findings.
    This section includes several findings that support the 
reauthorization of the Overseas Private Investment Corporation, 
hereafter referred to as ``OPIC'' or ``the Corporation.'' The 
findings note that since its creation in 1971, the Corporation 
has generated $71,000,000,000 in United States exports and 
supported more than 271,000 United States jobs. Beyond its goal 
of assisting less developed countries, the Committee believes 
that OPIC should continue to prioritize expanding U.S. exports, 
supporting U.S. jobs, and assisting U.S. small- and medium-
sized businesses.
    This section also notes that OPIC assistance is a privilege 
and should be granted to persons who, along with their 
affiliated companies, demonstrate responsible and sustainable 
business practices, particularly with regard to the 
environment, international worker rights, and efforts against 
genocide and nuclear proliferation. Moreover, OPIC is in a 
unique position to advance democracy by supporting investments 
in those countries that promote human rights and the rule of 
law as opposed to countries that have oppressive regimes.
Section 3. Reauthorization of OPIC Programs.
    This section amends section 235 of the Foreign Assistance 
Act of 1961 (FAA) by reauthorizing OPIC through September 30, 
2011. The Corporation's current authority expires September 30, 
2007.
Section 4. Preferential Consideration of Certain Investment Projects.
    This section amends section 231 of the FAA to require OPIC 
to give preferential consideration to investment projects in 
less developed countries, the governments of which are 
receptive to private enterprise and are willing and able to 
maintain conditions that enable private enterprise to make its 
full contribution to the development process. The Committee 
believes that the prospects for a country's development are 
improved, especially over the long run, when the host 
government protects the human rights of its people, strengthens 
the rule of law, and promotes democratic governance.
Section 5. Requirements Regarding International Worker Rights.
    This section amends section 231A of the FAA to require OPIC 
to take certain measures to strengthen the rights of workers 
overseas. This subsection requires that OPIC support a project 
only if the country in which the project is to be undertaken 
has made or is making significant progress toward the 
recognition, adoption, and implementation of laws that 
substantially provide international worker rights. Here, 
``international worker rights'' is defined as the International 
Labor Organization (ILO) core labor standards plus acceptable 
conditions of work. Current law provides that the Corporation 
may support a project only if the country in which the project 
is to be undertaken is taking steps to adopt and implement laws 
that extend internationally-recognized worker rights to workers 
in that country. This requirement does not, however, prohibit 
the Corporation from supporting a project that provides 
humanitarian assistance. Moreover, each eligible investor will 
be required contractually not to take any action to obstruct or 
prevent an employee from exercising their international worker 
rights, a greater commitment than what was previously required. 
This subsection also requires, to the degree possible and 
consistent with its development objectives, OPIC to give 
preferential consideration to projects in countries that have 
adopted, maintain, and enforce laws that substantially provide 
international worker rights.
    The Committee believes that promoting international worker 
rights is a cornerstone of U.S. foreign policy, and OPIC should 
play an active role in this effort. OPIC must guarantee that 
all eligible investors provide for and respect international 
worker rights. While the Committee recognizes that the 
Corporation currently relies on the Generalized System of 
Preferences (GSP) process for verifying the majority of 
countries in which OPIC assistance may be provided, the 
Committee expects OPIC to implement a thorough review of its 
approval process for determining the eligibility of non-GSP 
cleared countries to ensure that OPIC assistance is not being 
used to reward those countries that fail to respect 
international worker rights.
    The Committee also expects OPIC to carefully review all 
project applications to ensure that project sponsors have not 
previously committed serious violations of international worker 
rights and are not currently violating those rights on any 
current projects. OPIC should also closely and routinely 
monitor project compliance, and review any complaints related 
to a project.
    Additionally, the Corporation should make every effort to 
further advance international worker rights abroad by giving 
preferential treatment to projects in countries that have 
adopted, maintain, and enforce laws that provide international 
worker rights. The Committee requires OPIC to promote U.S. 
investment in developing countries that proactively provide for 
international worker rights, rather than in those countries 
that are making minimal progress. Such a system should not 
reward minor progress of states toward ensuring respect for 
workers; it should instead encourage U.S. investment in 
developing countries that respect the rights of workers in 
practice.
    Subsection (b) amends section 233 of the FAA to state that 
the selection of the small business, organized labor, and 
cooperative directors to OPIC's Board should be made, 
respectively, in consultation with relevant representative 
organizations.
    Subsection (c) amends section 238 of the FAA by broadening 
the definition of international worker rights to include the 
elimination of discrimination with respect to employment and 
occupation.
    Subsection (d) amends section 239 of the FAA by making 
changes to OPIC's general provisions.
Section 6. Environmental Assessments.
    This section amends section 231A of the FAA to require an 
OPIC project applicant to conduct an environmental impact 
assessment or audit for any project that is likely to have 
significant adverse environmental impacts. The assessment 
required by this section must be undertaken at least sixty days 
prior to OPIC approval and made available to the public.
    The Committee believes that OPIC must maintain strong 
environmental safeguards. In furtherance of this mandate, 
interested parties in the Unites States and in the host country 
must have ample opportunity to comment on these assessments and 
audits. The Corporation must make readily accessible, in full, 
the aforementioned assessments and audits to all members of the 
Board of Directors, the American public, and all affected 
groups in the host country.
Section 7. Community Support.
    This section amends section 237 of the FAA to require 
applicants for OPIC assistance to obtain broad community 
support for projects that are likely to have significant 
adverse environmental impacts. The Committee believes that 
securing the support of local communities potentially impacted 
by these projects is critical to ensuring effective results. 
Local support for the project is likely to be inadequate if 
efforts to obtain approval do not respect local community and 
indigenous decision making structures.
    Efforts by the International Finance Corporation (IFC) to 
implement its Policy and Performance Standards on Social and 
Environmental Sustainability requirement for ``broad community 
support'' provide one model for understanding how the support 
of communities should be obtained. Applicants for OPIC 
assistance should obtain the support of indigenous peoples and 
other locally affected communities for proposed projects, and 
be manifested in specific and mutual agreements. Such 
agreements should result from a participatory process by which 
indigenous peoples, local communities, government agencies, and 
companies reach consensus in a forum that gives affected people 
enough leverage to negotiate the conditions under which the 
proposed project could proceed. Such a process should provide 
transparent and measurable outcomes that clearly benefit the 
community after project completion.
Section 8. Climate Change Mitigation Action Plan.
    This section amends title IV of chapter 2 of part I of the 
FAA by inserting a new section after section 234A that requires 
OPIC to institute a climate change mitigation action plan. 
Within 180 days of enactment, the Corporation must institute a 
plan that: (1) establishes a goal of substantially increasing 
its support of projects that use, develop, or otherwise promote 
the use of clean energy technologies; and (2) gives 
preferential treatment to projects that use, develop, or 
otherwise promote the use of clean and efficient energy 
technologies. This section further requires OPIC to take into 
account the degree to which a project contributed to greenhouse 
gas emissions in making an environmental assessment under 
section 231A(b) (as amended by this Act). The Committee notes 
that Section 8 should not be construed to detract from OPIC's 
ability to respond to other environmental remediation projects.
    In February 2007, the Intergovernmental Panel on Climate 
Change released its report on climate change science, finding 
``unequivocal'' evidence that the Earth's climate is warming. 
The report further states that the current atmospheric 
concentrations of carbon dioxide and methane, two important 
greenhouse gas emissions, ``exceeds by far the natural range 
over the last 650,000 years.'' In response, OPIC must develop 
and implement a comprehensive climate change mitigation plan 
that substantially reduces the Corporation's greenhouse gas 
footprint.
    The World Bank Group, consistent with the carbon disclosure 
practices of a number of similar institutions and major 
corporations, is developing a system to estimate the impacts of 
overall greenhouse gas emissions in countries where it 
operates. Pursuant to the Clean Energy Investment Framework, 
mandated by the Group of 8 in Gleneagles in 2005 and 
subsequently being developed by the World Bank Group, similar 
work is being initiated. The options assessment will include an 
ex ante accounting for all direct and indirect greenhouse gas 
emissions and the project lifetime trajectory of those expected 
emissions.
    The Committee expects OPIC to develop a climate change 
mitigation action plan and ensure that its environmental impact 
assessments include an accounting of both direct and indirect 
greenhouse gas emissions over the lifetime of all projects 
assisted by the Corporation.
    Private sector firms Citigroup and Bank of America set 
clean energy investment targets of $50 billion and $20 billion 
respectively. In 2005, Goldman Sachs set a $1 billion target 
for clean energy and met that target. The World Bank has 
adopted a target to increase investments in ``new renewable 
energy'' by 20 percent annually. Similarly, OPIC should 
establish, as appropriate, a goal that at least 10 percent of 
its aggregate loan, guarantee, and insurance authority goes to 
support projects that use, develop, or otherwise promote clean 
and efficient energy technologies or energy conservation. A 
wide variety of options are available to the Corporation for 
meeting this goal, including investments in solar technology, 
energy efficiency, geothermal technology, carbon capture 
systems, and other technologies that significantly reduce 
emissions of greenhouse gases. OPIC should avoid any investment 
in controversial projects involving nuclear energy, 
environmentally questionable hydroelectric projects over 10 
megawatts, or wind projects which have a negative environmental 
impact which may exceed its positive environmental impact.
    Some observers have expressed concern about providing U.S. 
assistance to projects that involve extractive industries. An 
extractive industry refers to an enterprise engaged in the 
exploration, development, or extraction of oil and gas 
reserves, metal ores, gemstones, industrial minerals, or coal. 
History has shown that while these industries have generated a 
lot of government revenues, many of these have been exploited 
for personal gain by public officials. In recent years, many in 
the international community have sought to address these 
problems by promoting an array of ``good governance'' measures 
aimed at increasing the transparency of these projects. For 
example, the International Finance Corporation (IFC), a 
component of the World Bank Group, requires that clients of all 
IFC-financed extractive industry projects publicly disclose 
their material payments from those projects to the host 
government(s).
    Section 8 contains a number of requirements for OPIC to 
support projects that involve the extractive industries. This 
section requires OPIC to notify the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate 30 days prior to approving any 
project which significantly involves an extractive industry 
where OPIC financing exceeds $10,000,000.
    This section further mandates that in order for OPIC to 
support a project that involves the extractive industry, either 
the host country or project sponsor must commit to the 
Extractive Industries Transparency Initiative (EITI) principles 
and criteria, or substantially similar principles and criteria. 
The EITI supports improved governance in resource-rich 
countries through the verification and full publication of the 
project sponsor's payments and government revenues.
    By ``substantially similar principles and criteria,'' the 
Committee means the general agreement of EITI principles, as 
well as the adoption of specific criteria, including:

        1) LRegular publication of all material oil, gas and 
        mining payments by companies to governments and all 
        material revenues received by governments from oil, gas 
        and mining companies to a wide audience in a publicly 
        accessible, comprehensive and comprehensible manner. 
        Where such audits do not already exist, payments and 
        revenues are the subject of a credible, independent 
        audit, applying international auditing standards;

        2) LPayments and revenues are reconciled by a credible, 
        independent administrator, applying international 
        auditing standards and with publication of the 
        administrator's opinion regarding that reconciliation 
        including discrepancies, should any be identified;

        3) LThis approach should be extended to all companies 
        including state-owned enterprises;

        4) LCivil society is actively engaged as a participant 
        in the design, monitoring and evaluation of this 
        process and contributes towards public debate; and

        5) LA public, financially sustainable work plan for all 
        the above is developed by the host government, with 
        assistance from the international financial 
        institutions where required, including measurable 
        targets, a timetable for implementation, and an 
        assessment of potential capacity constraints.

    Finally, this section requires the Corporation, to the 
degree possible and consistent with its development objectives, 
to give preference to a project in which both the eligible 
investor and host country has agreed to implement the 
Extractive Industries Transparency Initiative principles and 
criteria, or substantially similar principles and criteria.
    The Committee believes that OPIC should also seek the 
disclosure of such documents as Host Government Agreements, 
Concession Agreements, and bidding documents, allowing in any 
such dissemination or disclosure for the redaction of, or 
exceptions for, business proprietary information or information 
that would create a competitive disadvantage.
    The Committee commends OPIC for its transition away from 
assisting large oil and gas projects to focus on projects that 
better meet its development mandate. Limited public resources 
for foreign assistance should focus on the many critical needs 
of developing countries. Extractive industries have significant 
access to private capital markets and increasingly do not need 
OPIC assistance.
    Following a 2-year multi-stakeholder process that evaluated 
the effects of international oil projects on poverty reduction 
and the environment in a development country and on the global 
climate, the Extractive Industries Review of the World Bank 
Group recommended an end to financing oil projects by the World 
Bank Group by 2008 and that from January 1, 2007, clients of 
all IFC-financed extractive industry projects publicly disclose 
their material payments from those projects to the host 
government(s). Similarly, OPIC is currently prohibited from 
providing direct investment loans to finance any project that 
involves the extraction of oil and gas. The Committee 
discourages the Corporation from pursuing or issuing contracts 
of insurance, reinsurance, or any guaranty, entering into any 
agreement to provide financing, or providing other assistance 
for projects that involve the development, extraction, 
processing or transportation of crude oil.
    While the Committee has not legislatively prohibited the 
Corporation from supporting projects that significantly involve 
an extractive industry, the provisions in this section will 
greatly improve the transparency of OPIC's investment in 
extractive industries. The Committee will closely monitor 
OPIC's efforts to improve transparency when considering the 
appropriateness of the Corporation's involvement in this 
sector. OPIC should include in its annual report to Congress 
information concerning the progress made by the Corporation in 
implementing the provisions contained in this section.
Section 9. Prohibition on Assistance to Develop or Promote Certain 
        Railway Connections and Railway-Related Connections.
    This section amends section 237 of the FAA to prohibit OPIC 
from supporting the development or promotion of any railway 
connection that does not traverse or connect with Armenia and 
does connect Azerbaijan and Turkey. While the prohibition in 
this section is limited to railway projects in the Caucasus, 
the Committee believes that the Corporation should not support 
any projects designed to deliberately isolate countries 
friendly to the United States or which otherwise shut out a 
country allied with the United States from participation in a 
regional development project.
    The Committee commends OPIC's President, Robert Mosbacher, 
for his commitment to prohibit OPIC support for a controversial 
railway project in the Caucasus. This section will ensure that 
future presidents likewise avoid OPIC participation in this and 
similar railway development projects. The proposed Kars-
Tbilisi-Baku railway is estimated to cost as much as $800 
million. The existing railroad could be utilized to connect 
these cities more efficiently and for a tiny fraction of the 
cost if an existing rail linkage through Armenian territory 
would be utilized. However, efficient and inexpensive 
development of rail connections in the region is not the only 
goal of this project, as evidenced by statements of Azeri 
officials, including President Aliyev. Isolation of Armenia is 
a significant motivating factor in the route of this proposed 
railway. U.S. support for projects in this region should be 
used to promote economic development and, where possible, to 
lay the groundwork for reconciliation through mutual benefit 
and should support projects that reinforce the need for 
peaceful coexistence between Armenia and its neighbors.
Section 10. Ineligibility of Persons Doing Certain Business with State 
        Sponsors of Terrorism.
    Section 10 adds a new subsection (r) to Section 237 of the 
FAA to make ineligible for OPIC assistance persons with certain 
business activity in or with state sponsors of terrorism.
    Paragraph (1) provides that OPIC may not support an 
applicant's project where an applicant for OPIC assistance has 
an investment commitment valued at $20 million or more in the 
energy sector of a country identified by the Department of 
State as a state sponsor of terrorism, or where an applicant 
has an outstanding loan or extension of credit to the 
government of one of the countries designated as a state 
sponsor of terrorism. Sales of goods and services, other than 
food or medicine, on anything other than a cash basis 
constitute an extension of credit for these purposes.
    The Committee believes that OPIC assistance is a privilege, 
not a right. The Committee believes that only good actors 
should receive such assistance, which does not include those 
persons engaged in business activities in or with countries 
designated by the Department of State as state sponsors of 
terrorism. United States law and regulations apply a wide array 
of sanctions to these countries, often prohibiting U.S. persons 
from conducting most transactions with these countries. The 
Committee is aware that for the most part, U.S. firms are 
already prohibited from conducting the activities described in 
this section.
    Paragraph (2) defines cash basis as requiring payment 
within 45 days of receipt of goods. Allowing a government buyer 
to keep open accounts beyond 45 days, either by agreement or 
because the seller regularly declines to demand or otherwise 
enforce its right to timely payment, shall be considered an 
impermissible extension of credit. Investment commitment in the 
energy sector is broadly defined to include any commitment to 
help develop petroleum and/or natural gas resources of the 
countries.
    While the Committee employs a similar definition of an 
investment commitment to that used in the Iran Sanctions Act 
(50 U.S.C. 1701 note), the Committee does not intend for that 
statute to govern this provision's application to investments 
in Iran. The Department of State has willfully ignored that law 
and failed to find a single violation of the statute since 
1998. OPIC should not find that a company or any of the 
applicable affiliated entities are eligible for OPIC assistance 
merely because the Department of State has never found them in 
violation of the Iran Sanctions Act. OPIC should take every 
necessary step to determine whether there is a disqualifying 
investment commitment. Where some evidence exists (perhaps 
through reportage in the financial press) that an applicant or 
an applicable affiliated entity has a disqualifying energy 
sector investment in any of the state sponsors of terrorism, 
then the burden of proof should be on the applicant to 
demonstrate to the Corporation that it and its applicable 
affiliates does not have such an investment.
    Paragraph (3) requires that the chief executive officers of 
applicant firms certify as part of the application process that 
their firms are not undertaking the disqualifying activities. 
The chief executive officer of an applicant will sign on behalf 
of his/her firm and any subsidiaries in which they hold a 
majority stake. If the applicant cannot certify that it, and 
its majority owned subsidiaries, are not undertaking these 
activities, they are ineligible for OPIC assistance. The 
ultimate parent entity of the applicant must similarly certify 
that it, and its majority-owned subsidiaries, is not conducting 
the disqualifying activities. The ultimate parent of an 
applicant is the entity at the top of the majority-ownership 
chain. For example, if more than 50 percent of the shares of an 
applicant are owned by company A, and if more than 50 percent 
of the shares of company A are in turn owned by company B and 
if no single entity owns 50% of company B, then the highest 
ranking executive of company B must certify that his/her 
company and any of its majority-owned subsidiary entities are 
not engaged in disqualifying activities described by this 
section. The term ``chief executive officer'' is meant as a 
descriptive term--the highest ranking officer of the company 
should sign the required certification, whatever his/her title 
may be.
    The Committee has been concerned that U.S. corporations 
have used their foreign-incorporated subsidiaries to avoid U.S. 
sanctions laws. While this conduct may sometimes comply with 
the letter of the law, the Committee believes that such 
corporations should prevent their subsidiaries and other 
affiliates under their control from doing business in countries 
that are state sponsors of terrorism. Firms that fail to take 
this action should, at a minimum, face a loss of OPIC 
assistance to all of the companies they control.
    The certifications are designed to ease implementation and 
enforcement of the provision. In making the required 
certifications, the signing officers should not rely on the 
fact that their firms and any applicable affiliates have not 
been found in violation of the Iran Sanctions Act or any other 
statutes and regulations concerning business with state 
sponsors of terrorism. The officers may know more about the 
corporations they control than the Department of State can 
learn or process. The officers must sign under penalty of 
perjury and their inquiries into their own firm's and any 
applicable affiliates' activities should therefore be exacting. 
The Committee expects signing officers to err on the side of 
caution when possible disqualifying activities are found. 
Likewise, the Corporation should not simply take at face value 
the certifications provided by applicable officers. There are a 
number of sources available that will allow the Corporation to 
periodically verify the accuracy of certifications.
    A chief executive officer may provide a required 
certification under an exemption to the certification 
requirements provided for in subsection (E) notwithstanding the 
fact that an affiliated entity has a $20 million investment 
commitment in the energy sector of one of the state sponsors of 
terrorism or has an outstanding loan or extension of credit to 
one of the governments of those countries, so long as the 
affiliated entity's disqualifying activity occurred prior to 
the time of affiliation. However, if an existing business 
relationship or contract that would be a disqualifying act is 
expanded or extended temporarily after acquisition, than this 
exemption shall not apply. For example, an executive required 
to provide one of the certifications called for by this section 
may do so notwithstanding the fact that a firm that his/her 
corporation acquired two years ago has an investment in the 
energy sector of Sudan pursuant to a contract entered into 
prior to the acquisition of the subsidiary. If however, the 
contract were to be extended for an additional period, or 
expanded to include additional development, the certification 
could not be made.
    Subparagraph (3) also applies the certification requirement 
to ``straw man'' transactions, which involve a non-applicant 
firm that receives much of the benefits of OPIC assistance and 
provides much of the goods or services supported by the 
assistance, but which is not directly in contract with OPIC. 
The applicant firm should be considered a ``straw man'' if the 
applicant is: (1) buying goods and services from another firm, 
and (2) those goods or services are worth 50 percent or more of 
the total provided to the project by the applicant, and (3) the 
other, non-applicant firm will receive $20 million or more or 
an amount equal to or greater than 50 percent of the value of 
the OPIC assistance as consideration for the goods and services 
provided. The chief executive officer of the non-applicant firm 
is required to sign the certification called for by Paragraph 
3(A) and any ultimate parent entity of the non-applicant firm 
must sign the certification required by Paragraph 3(B). This 
provision is meant to prevent a situation where one firm would 
be able to effectively receive OPIC assistance notwithstanding 
prohibited activities, through contract or other commitment 
with another firm that would be the actual applicant.
    Subsection (4) sets out an exception for otherwise 
disqualifying investments or business in certain areas of 
Sudan, including Southern Sudan, Southern Kordofan/Nuba 
Mountains State, Blue Nile State, and Abei, Darfur, if the 
Corporation, with the concurrence of the Secretary of State, 
determines that the investment or other business will provide 
humanitarian relief, promote self-sufficiency or support 
certain peace agreements.
    The Committee acknowledges that certain investments and 
business in Sudan, especially in the South, may actually 
benefit the cause of peace and beneficial economic development 
for the very people who have been victimized by the regime in 
Khartoum. The Committee provides that the disqualification in 
section 10 should not apply to business activities by 
applicants in Sudan that benefit certain populations of the 
country. The Committee strongly believes that OPIC should 
provide assistance for projects in certain areas of Sudan, 
including Southern Sudan, Southern Kordofan/Nuba Mountains 
State, Blue Nile State, and Abei, Darfur.
    Subsection (5) provides for the termination of these 
provisions with respect to a country if the President certifies 
that the country is no longer a state sponsor of terrorism and 
also does not have nuclear weapons or a program to develop 
nuclear weapons, and is no longer committing genocide or 
``ethnic cleansing that approaches genocide.'' This section 
applies to any country listed by the Department of State as a 
sponsor of terrorism. However, in order for this provision to 
cease to be effective against a country, its government must 
demonstrate, and the President must affirmatively concur, that 
it no longer supports terrorism and no longer has a nuclear 
program or possesses nuclear weapons, and is no longer 
committing genocide or a program of ethnic cleansing that 
approaches genocide.
    The Committee, through previous legislative action, has 
determined the Khartoum government's actions in Darfur 
constitute genocide. In the future, whether similarly gross 
violations against human rights rise to the level of genocide 
may be debated. The Committee believes that the inclusion of 
the term ``ethnic cleansing that approaches genocide'' should 
avoid ambiguity with respect to the termination of this 
provision.
Section 11. Increased Transparency.
    This section amends section 237 of the FAA to increase the 
transparency of OPIC activities. Subsection (a) requires the 
Corporation (1) to make public, and post on its Internet 
website, summaries of all new projects supported by the 
Corporation (excluding any confidential business information), 
and (2) to publish in the Federal Register and subject to a 
period of public comment, the detailed methodology used to 
assess and monitor the impact of projects supported by the 
Corporation on the development and environment of, and 
international worker rights in, host countries, and on United 
States employment. Subsection (a) also requires that OPIC's 
Board of Directors may not vote in favor of any action proposed 
to be taken by the Corporation on any Category A project until 
at least 60 days after the Corporation makes available for 
public comment a summary of the project and relevant 
information about the project.
    To strengthen its monitoring of international worker rights 
and environmental practices and to enhance the credibility of 
its efforts in these areas among outside parties, the Committee 
expects OPIC to make its procedures significantly more 
transparent, adopting industry best practices of posting 
information about controversial cases, internal and third-party 
inspection results, and remediation follow-up on OPIC's 
website.
    The Committee expects the Corporation to make available on 
its website as much project information as possible without 
disclosing business confidential information. The Committee 
expects the Corporation to make available to the public in 
whole all eligible documents and the eligible portions of 
documents containing relevant information on environmental, 
economic, social, and worker rights impacts, including pre-
approval and post-approval documents.
    The Committee is concerned by the lack of information 
regarding the methodologies employed by OPIC to determine 
whether it is complying with its mandate. To ensure that OPIC 
is meeting its obligations, OPIC must publish in the Federal 
Register, subject to a period of public comment, the detailed 
methodology used to assess and monitor the impact of projects 
supported by the Corporation on the development and environment 
of, and international worker rights in, host countries, and on 
United States employment.
    OPIC is additionally subject to new requirements intended 
to increase the transparency of ``Category A'' projects, which 
involve projects that have a significant adverse environmental 
impact. OPIC's Board of Directors cannot vote in favor of any 
``Category A'' project until at least 60 days after the 
Corporation makes available for public comment a summary of the 
project and all eligible and relevant information about the 
project. It is the intent of the Committee that the 
Corporation, to the maximum extent practicable, works with 
relevant and concerned parties in assessing the environmental 
impact of its projects and provides substantive responses to 
the concerns of the American public, affected groups in the 
area of impact of the proposed project, host country non-
governmental organizations, and other stakeholders. 
Consequently, the Corporation is barred from approving any 
``Category A'' project unless all members of the Board of 
Directors receive 7 days prior to the vote full copies of the 
Corporation's responses to the comments received from all 
stakeholders.
    Subsection (b) requires OPIC to maintain an Office of 
Accountability to provide problem-solving services for projects 
supported by the Corporation and to review the Corporation's 
compliance with its environmental, social, worker rights, human 
rights, and transparency policies and procedures. The Committee 
expects the Office of Accountability to operate in a manner 
that is fair, objective and transparent.
    The Corporation is to be commended for establishing an 
Office of Accountability, which was called for in the Overseas 
Private Investment Corporation Amendments Act of 2003. The 
Committee expects OPIC to properly maintain the Office. The 
Office of Accountability must provide problem-solving services 
for OPIC-supported projects, and it must, on an ongoing basis, 
review the Corporation's compliance with its environmental, 
social, worker rights, human rights, and transparency policies 
and procedures.
Section 12. Fraud and Other Breaches of Contract.
    The Committee recognizes and commends OPIC for its efforts 
to address cases of fraud. To ensure that OPIC upholds the 
highest standards of accountability, the Committee, under this 
section, requires the President of OPIC to refer to the 
Department of Justice for appropriate action information known 
to the Corporation concerning any substantial evidence of: (1) 
a violation of this title; (2) a material breach of contract 
entered into with the Corporation by an eligible investor; or 
(3) a material false representation made by an investor to the 
Corporation. This section does not apply if the President of 
the Corporation concludes that the matter is not evidence of a 
possible violation of criminal law and is not evidence that the 
Federal Government is entitled to civil remedy or to impose a 
civil penalty.
Section 13. Transparency and Accountability of Investment Funds.
    Subsection (a) amends Section 239 of the FAA by adding 
provisions relating to transparency and accountability of OPIC 
investment funds. This subsection mandates that the Corporation 
contract with persons to manage investment funds only by full 
and open competition. This subsection also requires that OPIC 
consider various factors in assessing proposals for investment 
fund management, including the prospective fund manager's track 
record in investing risk capital in emerging markets, and its 
record in avoiding investments in companies that would be 
disqualified under section 237(r) of the FAA (as added by 
section 10 of this Act).
    The Committee requires OPIC to select the investment fund 
management through a competitive and open process, using 
criteria that assess the prospective management's experience 
and track record. The Committee recognizes and commends OPIC 
for initiating this policy already as a response to abuses in 
the 1990s. The Committee intends to legislatively mandate this 
reform.
    The Committee requires OPIC to report on the investment 
fund management selection process. Existing reporting on the 
investment funds leaves it unclear how competitive it actually 
is for capital management firms to secure OPIC management 
contracts. The Committee requires this information to assess 
the competitiveness of the selection process, as well as the 
nature of the investment fund market. This information is 
especially important given the increasing number of OPIC 
investment funds. The Committee also intends that investment 
fund managers and beneficiary firms be considered applicants 
for OPIC assistance for purposes of section 10.
    Subsection (b) requires the Government Accountability 
Office to carry out an independent assessment of the investment 
fund portfolio of OPIC.
Section 14. Extension of Authority to Operate in Iraq.
    This section amends section 239 of the FAA to allow OPIC to 
support projects in Iraq, notwithstanding subsection (a) and 
(b) of section 237 of the FAA. Those provisions require that 
there be an agreement in place with the government of any 
country in which it operates and that suitable conditions exist 
to protect the interests of the Corporation. Given the violent 
and chaotic situation in Iraq, and due to difficulties in 
dealing with an unstable Iraqi government, no agreement is in 
place between the United States and Iraq to provide OPIC 
assistance.
    The Committee has provided limited authority to allow OPIC 
to provide assistance to projects in Iraq, notwithstanding 
subsection (a) and (b) of section 237 of the FAA. The 
Corporation should otherwise comply with all other requisite 
mandates, including worker rights provisions, in operating in 
that country. The committee has permitted OPIC to support 
development in Iraq provided that Iraq is taking substantial 
steps toward reaching such an agreement with the United States 
and making definitive progress towards establishing the 
conditions that protect the interest of the Corporation.
Section 15. Consistency with Existing Law.
    This section amends section 239 of the FAA to ensure that 
OPIC, in providing support for projects in the West Bank and 
Gaza, is complying with other statutory restrictions related to 
providing U.S. assistance to these areas. Additionally, OPIC 
may not support a project in any part of Gaza or the West Bank 
unless the Secretary of State determines that the location for 
the project is not under the effective control of Hamas or any 
other foreign terrorist organization designated under section 
219 of the Immigration and Nationality Act.
    Congress enacted the Palestinian Anti-Terrorism Act of 2006 
in December, 2006. The Act was a response to the Palestinian 
elections held in January 2006, where Hamas, a group designated 
by the State Department as a foreign terrorist organization, 
won a majority of seats in the Palestinian Parliament. The 
intent of this section is to clarify that the restrictions on 
U.S. assistance provided for under that Act apply to OPIC 
assistance.
Section 16. Congressional Notification Regarding Maximum Contingent 
        Liability.
    This section amends section 239 of the FAA to require that 
OPIC notifies the House Committee on Foreign Affairs and the 
Senate Committee on Foreign Relations within 15 days after the 
Corporation's maximum contingent liability outstanding exceeds 
the previous fiscal years maximum contingent liability by 25 
percent.
    Although world economic conditions have been stable in 
recent years and OPIC is well-reserved against potential 
losses, future economic instability or financial shocks in 
developing markets (such as occurred in Mexico, Asia, Russia 
and Brazil from 1994-1999) cannot be ruled out. Such an 
eventuality, while perhaps unlikely, could raise into question 
the ability of OPIC to absorb potential losses without having 
to seek appropriations funding from the Congress. This 
provision requires that Congress be given ``early warning'' of 
any undue expansion of OPIC's balance sheet, thereby helping to 
enhance Congressional oversight and help shield the American 
taxpayers from potential liability.
Section 17. Assistance for Small Business and Entities.
    This section amends section 240 of the FAA by requiring 
that OPIC commit adequate staff and resources to assist small 
businesses and investors in the United States with obtaining 
the insurance, reinsurance, financing, and the other types of 
support that the Corporation offers. The Corporation is 
required to detail in each annual report the progress it has 
made in terms of assisting small business by including: (1) a 
description of the staff and resources directed to this area; 
(2) the number of small businesses and investors that the 
Corporation has supported, and the total dollar value 
associated with that support; and (3) a description of each 
small business project that the Corporation supported.
    OPIC continues to play a critical role in helping U.S. 
small- and medium-sized enterprises (SMEs) operate abroad. OPIC 
already has an existing Small Business Center that offers a 
streamlined approval process to help SMEs access the OPIC 
services. The Small Business Center is headed by a Vice 
President who reports directly to the President and CEO of 
OPIC. OPIC also has teams of specialists within their insurance 
division and other divisions within OPIC (such as the General 
Counsel's office) to cater to the unique needs of SMEs. The 
Committee commends OPIC for taking these initiatives to 
administratively create these offices to meet the challenges of 
serving United States SMEs. As a result, OPIC's financing 
support to U.S. SMEs grew 62 percent over the past 10 years--to 
$320--million since attention was first brought to this issue. 
More than 80 percent of all OPIC projects approved in 2006 were 
for U.S. SMEs--up from just 18 percent in 1996. The Committee 
strongly encourages more U.S. small businesses to get involved 
in exporting as one way to help lower the nation's trade 
deficit. Having various Federal trade promotion agencies pay 
special attention to SMEs by ensuring that adequate resources 
and personnel are in place will go a long way toward 
accomplishing the goal of increased U.S. exports.
    The purpose of Section 17 is to ensure that OPIC will 
continue to have a specialized cadre of experts on staff that 
understand and can quickly respond to the unique needs of SMEs. 
Small businesses often have tighter time frames in which to 
conclude a deal and cannot afford to wait in line behind an 
application filed in support of a complex, ``big business'' 
deal. Section 17 is intended to give maximum management 
flexibility to OPIC in implementing this provision which would 
allow OPIC to maintain its current structure with respect to 
SMEs or to streamline the small and medium business operations 
at some point in the future. However, the Committee wants to 
also ensure that the SME team at OPIC includes senior 
officials, including at least one individual at the Vice 
President level, that reports directly to the President and CEO 
of OPIC. This ensures that the voice of SMEs will continue to 
be heard at the top in order to implement policies or 
procedures that respond to the ever changing needs of SMEs 
engaged in the global marketplace. The Committee would strongly 
disapprove any downgrading of the current structure at OPIC 
that is designed to assist SMEs.
    Section 17 also ensures that OPIC reveals as part of its 
annual report various performance measurements as to how OPIC 
served U.S. SMEs during the previous year. The information 
shall include a description of the personnel and resources OPIC 
primarily dedicates to SMEs, the number of SMEs helped by 
OPIC's programs, the dollar volume of such assistance, and a 
description of the SME projects. This information will give the 
Committee and the general public another tool by which to 
evaluate the effectiveness of OPIC.
Section 18. Technical Corrections.
    This section amends various sections of the FAA to make 
technical and conforming corrections.
Section 19. Effective Date.
    Subsection (a) establishes that the Overseas Private 
Investment Corporation Reauthorization Act of 2007 and the 
amendments made by the Act shall apply to only applications for 
OPIC support that both are received by the Corporation on or 
after July 1, 2007 and also approved by the Corporation on or 
after the date of the enactment of the Act.
    Subsection (b) establishes that the Overseas Private 
Investment Corporation Reauthorization Act of 2007 and the 
amendments made by the Act shall apply to any extension or 
renewal of OPIC support that was entered into before the 
enactment of the Act if the extension or renewal is approved on 
or after the date of the enactment of the Act.
    Subsection (b) establishes that the Overseas Private 
Investment Corporation Reauthorization Act of 2007 and the 
amendments made by the Act do not apply to an extension or 
renewal of OPIC support that is substantially identical to an 
extension or renewal formally requested before July 1, 2007.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                     FOREIGN ASSISTANCE ACT OF 1961

PART I

           *       *       *       *       *       *       *


           Title IV--Overseas Private Investment Corporation

  Sec. 231. Creation, Purpose and Policy.--To mobilize and 
facilitate the participation of United States private capital 
and skills in the economic and social development of less 
developed countries and areas, and countries in transition from 
nonmarket to market economies, thereby complementing the 
development assistance objectives of the United States, there 
is hereby created the Overseas Private Investment Corporation 
(hereinafter called the ``Corporation''), which shall be an 
agency of the United States under the policy guidance of the 
Secretary of State.
   * * *

           *       *       *       *       *       *       *

          [(f) to consider in the conduct of its operations the 
        extent to which less developed country governments are 
        receptive to private enterprise, domestic and foreign, 
        and their willingness and ability to maintain 
        conditions which enable private enterprise to make its 
        full contribution to the development process;]
          (f) to give preferential consideration to investment 
        projects in less developed countries the governments of 
        which are receptive to private enterprise, domestic and 
        foreign, and to projects in countries the governments 
        of which are willing and able to maintain conditions 
        that enable private enterprise to make its full 
        contribution to the development process;

           *       *       *       *       *       *       *

  Sec. 231A. Additional Requirements.--(a) [Worker Rights] 
International Worker Rights.--
          [(1) Limitation on opic activities.--The Corporation 
        may insure, reinsure, guarantee, or finance a project 
        only if the country in which the project is to be 
        undertaken is taking steps to adopt and implement laws 
        that extend internationally recognized worker rights, 
        as defined in section 507(4) of the Trade Act of 1974, 
        to workers in that country (including any designated 
        zone in that country). The Corporation shall also 
        include the following language, in substantially the 
        following form, in all contracts which the Corporation 
        enters into with eligible investors to provide 
        financial support under this title: The investor agrees 
        not to take actions to prevent employees of the foreign 
        enterprise from lawfully exercising their right of 
        association and their right to organize and bargain 
        collectively. The investor further agrees to observe 
        applicable laws relating to a minimum age for 
        employment of children, acceptable conditions of work 
        with respect to minimum wages, hours of work, and 
        occupational health and safety, and not to use forced 
        labor. The investor is not responsible under this 
        paragraph for the actions of a foreign government.
          [(2) Use of annual reports on workers rights.--The 
        Corporation shall, in making its determinations under 
        paragraph (1), use the reports submitted to the 
        Congress pursuant to section 504 of the Trade Act of 
        1974. The restriction set forth in paragraph (1) shall 
        not apply until the first such report is submitted to 
        the Congress.
          [(3) Waiver.--Paragraph (1) shall not prohibit the 
        Corporation from providing any insurance, reinsurance, 
        guaranty, or financing with respect to a country if the 
        President determines that such activities by the 
        Corporation would be in the national economic interests 
        of the United States. Any such determination shall be 
        reported in writing to the Congress, together with the 
        reasons for the determination.]
          (1) Limitation on opic activities.--(A) The 
        Corporation may insure, reinsure, guarantee, or finance 
        a project only if the country in which the project is 
        to be undertaken has made or is making significant 
        progress towards the recognition, adoption, and 
        implementation of laws that substantially provide 
        international worker rights, including in any 
        designated zone, or special administrative region or 
        area, in that country.
          (B) The Corporation shall also include the following 
        language, in substantially the following form, in all 
        contracts which the Corporation enters into with 
        eligible investors to provide financial support under 
        this title:
          ``The investor agrees not to take any actions to 
        obstruct or prevent employees of the foreign enterprise 
        from exercising their international worker rights (as 
        defined in section 238(h) of the Foreign Assistance Act 
        of 1961), and agrees to adhere to the obligations 
        regarding those international worker rights.''
          (2) Preference to certain countries.--To the degree 
        possible and consistent with its development 
        objectives, the Corporation shall give preferential 
        consideration to projects in countries that have 
        adopted, maintain, and enforce laws that substantially 
        provide international worker rights.
          (3) Use of annual reports on international worker 
        rights.--The Corporation shall, in carrying out 
        paragraph (1)(A), use, among other sources, the reports 
        submitted to the Congress pursuant to section 504 of 
        the Trade Act of 1974. Such other sources include the 
        observations, reports, and recommendations of the 
        International Labor Organization, and other relevant 
        organizations.
          (4) Inapplicability to humanitarian activities.--
        Paragraph (1) shall not prohibit the Corporation from 
        providing any insurance, reinsurance, guaranty, 
        financing, or other assistance for the provision of 
        humanitarian assistance in a country.
          [(4) In] (5) Additional determination.--In making a 
        determination under this section for the People's 
        Republic of China, the Corporation shall discuss fully 
        and completely the justification for making such 
        determination with respect to each item set forth in 
        subparagraphs (A) through (E) of section 507(4) of the 
        Trade Act of 1974.
  [(b) Environmental Impact.--The Board of Directors of the 
Corporation shall not vote in favor of any action proposed to 
be taken by the Corporation that is likely to have significant 
adverse environmental impacts that are sensitive, diverse, or 
unprecedented, unless for at least 60 days before the date of 
the vote--
          [(1) an environmental impact assessment or initial 
        environmental audit, analyzing the environmental 
        impacts of the proposed action and of alternatives to 
        the proposed action has been completed by the project 
        applicant and made available to the Board of Directors; 
        and
          [(2) such assessment or audit has been made available 
        to the public of the United States, locally affected 
        groups in the host country, and host country 
        nongovernmental organizations.]
  (b) Environmental Impact.--The Board of Directors of the 
Corporation shall not vote in favor of any action proposed to 
be taken by the Corporation that is likely to have significant 
adverse environmental impacts, unless for at least 60 days 
before the date of the vote--
          (1) an environmental impact assessment, or initial 
        environmental audit, analyzing the environmental 
        impacts of the proposed action and of alternatives to 
        the proposed action has been completed by the project 
        applicant and made available to the Board of Directors; 
        and
          (2) such assessment or audit has been made available 
        to the public of the United States, locally affected 
        groups in the host country, and host country 
        nongovernmental organizations.

           *       *       *       *       *       *       *

  Sec. 233. Organization and Management.--(a) * * *
  (b) Board of Directors.--All powers of the Corporation shall 
vest in and be exercised by or under the authority of its Board 
of Directors (``the Board'') which shall consist of fifteen 
Directors, including the Chairman, with eight Directors 
constituting a quorum for the transaction of business. Eight 
Directors shall be appointed by the President of the United 
States, by and with the advice and consent of the Senate, and 
shall not be officials or employees of the Government of the 
United States. At least two of the eight Directors appointed 
under the preceding sentence shall be experienced in small 
business, one in organized labor, and one in cooperatives. Each 
such Director shall be appointed for a term of no more than 
three years. The terms of no more than three such Directors 
shall expire in any one year. Such Directors shall serve until 
their successors are appointed and qualified and may be 
reappointed.

           *       *       *       *       *       *       *

   All Directors who are not officers of the Corporation or 
officials of the Government of the United States shall be 
compensated at a rate equivalent to that of level IV of the 
Executive Schedule (5 U.S.C. 5315) when actually engaged in the 
business of the Corporation and may be paid per diem in lieu of 
subsistence at the applicable rate prescribed in the 
standardized Government travel regulations, as amended, from 
time to time, while away from their homes or usual places of 
business. The selection of the small business, organized labor, 
and cooperative directors should be made, respectively, in 
consultation with relevant representative organizations.

           *       *       *       *       *       *       *

  Sec. 234. Investment Insurance and Other Programs.--The 
Corporation is hereby authorized to do the following:
  (a) * * *
  (b) Investment Guaranties.--To issue to eligible investors 
guaranties of loans and other investments made by such 
investors assuring against loss due to such risks and upon such 
terms and conditions as the Corporation may determine: 
Provided, however, That such guaranties on other than loan 
investments shall not exceed 75 per centum of such investment: 
Provided further, That except for loan investments for credit 
unions made by eligible credit unions or credit union 
associations, the aggregate amount of investment (exclusive of 
interest and earnings) so guaranteed with respect to any 
project shall not exceed, at the time of issuance of any such 
guaranty, 75 per centum of the total investment committed to 
any such project as determined by the Corporation, which 
determination shall be conclusive for purposes of the 
Corporation's authority to issue any such guaranty: Provided 
further, That not more than 15 per centum of the maximum 
contingent liability of investment guaranties which the 
Corporation is permitted to have outstanding under section 
[235(a)(2)] 235(a)(1) shall be issued to a single investor.

           *       *       *       *       *       *       *

  [(g) Pilot Equity Finance Program.--
          [(1) Authority for pilot program.--In order to study 
        the feasibility and desirability of a program of equity 
        financing, the Corporation is authorized to establish a 
        4-year pilot program under which it may, on the limited 
        basis prescribed in paragraphs (2) through (5), 
        purchase, invest in, or otherwise acquire equity or 
        quasi-equity securities of any firm or entity, upon 
        such terms and conditions as the Corporation may 
        determine, for the purpose of providing capital for any 
        project which is consistent with the provisions of this 
        title except that--
                  [(A) the aggregate amount of the 
                Corporation's equity investment with respect to 
                any project shall not exceed 30 percent of the 
                aggregate amount of all equity investment made 
                with respect to such project at the time that 
                the Corporation's equity investment is made, 
                except for securities acquired through the 
                enforcement of any lien, pledge, or contractual 
                arrangement as a result of a default by any 
                party under any agreement relating to the terms 
                of the Corporation's investment; and
                  [(B) the Corporation's equity investment 
                under this subsection with respect to any 
                project, when added to any other investments 
                made or guaranteed by the Corporation under 
                subsection (b) or (c) with respect to such 
                project, shall not cause the aggregate amount 
                of all such investment to exceed, at the time 
                any such investment is made or guaranteed by 
                the Corporation, 75 percent of the total 
                investment committed to such project as 
                determined by the Corporation.
        The determination of the Corporation under subparagraph 
        (B) shall be conclusive for purposes of the 
        Corporation's authority to make or guarantee any such 
        investment.
          [(2) Limitation to projects in sub-saharan africa and 
        caribbean basin.--Equity investments may be made under 
        this subsection only in projects in countries eligible 
        for financing under this title that are countries in 
        sub-Saharan Africa or countries designated as 
        beneficiary countries under section 212 of the 
        Caribbean Basin Economy Recovery Act.
          [(3) Additional criteria.--In making investment 
        decisions under this subsection, the Corporation shall 
        give preferential consideration to projects sponsored 
        by or significantly involving United States small 
        business or cooperatives. The Corporation shall also 
        consider the extent to which the Corporation's equity 
        investment will assist in obtaining the financing 
        required for the project.
          [(4) Disposition of equity interest.--Taking into 
        consideration, among other things, the Corporations' 
        financial interests and the desirability of fostering 
        the development of local capital markets in less 
        developed countries, the Corporation shall endeavor to 
        dispose of any equity interest it may acquire under 
        this subsection within a period of 10 years from the 
        date of acquisition of such interest.
          [(6) Consultations with congress.--The Corporation 
        shall consult annually with the Committee on Foreign 
        Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate on the 
        implementation of the pilot equity finance program 
        established under this subsection.]
  [(h)] (g) Local Currency Guaranties for Eligible Investors.--
To issue to--
          (1)  * * *

           *       *       *       *       *       *       *


SEC. 234B. CLIMATE CHANGE MITIGATION.

  (a) Mitigation Action Plan.--The Corporation shall, not later 
than 180 days after the date of the enactment of the Overseas 
Private Investment Corporation Reauthorization Act of 2007, 
institute a climate change mitigation action plan that includes 
the following:
          (1) Clean and efficient energy technology.--
                  (A) Increasing assistance.--The Corporation 
                shall establish a goal of substantially 
                increasing its support of projects that use, 
                develop, or otherwise promote the use of clean 
                energy technologies over the 4-year period 
                beginning on the date of the enactment of the 
                Overseas Private Investment Corporation 
                Reauthorization Act of 2007.
                  (B) Preferential treatment to projects.--The 
                Corporation shall give preferential treatment 
                to the evaluation and awarding of assistance 
                for and provide greater flexibility in 
                supporting projects that use, develop, or 
                otherwise promote the use of clean and 
                efficient energy technologies.
          (2) Environmental impact assessments.--
                  (A) Greenhouse gas emissions.--The 
                Corporation shall, in making an environmental 
                impact assessment for a project under section 
                231A(b), take into account the degree to which 
                the project contributes to the emission of 
                greenhouse gases.
                  (B) Other duties not affected.--The 
                requirement under subparagraph (A) is in 
                addition to any other requirement, obligation, 
                or duty that the Corporation has.
          (3) Report to congressional committees.--The 
        Corporation shall, within 180 days after the date of 
        the enactment of the Overseas Private Investment 
        Corporation Reauthorization Act of 2007, submit to the 
        Committee on Foreign Affairs of the House of 
        Representatives and the Committee on Foreign Relations 
        of the Senate a report on the plan developed to carry 
        out paragraph (1)(A). Thereafter, the Corporation shall 
        include in its annual report under section 240A a 
        discussion of such plan and its implementation.
  (b) Extraction Investments.--
          (1) Prior notification to congressional committees.--
        The Corporation may not approve any contract of 
        insurance or reinsurance, or any guaranty, or enter 
        into any agreement to provide financing for any project 
        which significantly involves an extractive industry and 
        in which assistance by the Corporation would be valued 
        at $10,000,000 or more (including contingent 
        liability), until at least 30 days after the 
        Corporation notifies the Committee on Foreign Affairs 
        of the House of Representatives and the Committee on 
        Foreign Relations of the Senate of such contract or 
        agreement.
          (2) Commitment to eiti principles.--The Corporation 
        may approve a contract of insurance or reinsurance, or 
        any guaranty, or enter into an agreement to provide 
        financing to an eligible investor for a project that 
        significantly involves an extractive industry only if--
                  (A) the eligible investor has agreed to 
                implement the Extractive Industries 
                Transparency Initiative principles and 
                criteria, or substantially similar principles 
                and criteria; or
                  (B) the host country where the project is to 
                be carried out has committed to the Extractive 
                Industries Transparency Initiative principles 
                and criteria, or substantially similar 
                principles and criteria.
          (3) Preference for certain projects.--With respect to 
        all projects that significantly involve an extractive 
        industry, the Corporation, to the degree possible and 
        consistent with its development objectives, shall give 
        preference to a project in which both the eligible 
        investor has agreed to implement the Extractive 
        Industries Transparency Initiative principles and 
        criteria, or substantially similar principles and 
        criteria, and the host country where the project is to 
        be carried out has committed to the Extractive 
        Industries Transparency Initiative principles and 
        criteria, or substantially similar principles and 
        criteria.
          (4) Definitions.--In this subsection:
                  (A) Extractive industry.--The term 
                ``extractive industry'' refers to an enterprise 
                engaged in the exploration, development, or 
                extraction of oil and gas reserves, metal ores, 
                gemstones, industrial minerals, or coal.
                  (B) Extractive industries transparency 
                initiative principles and criteria.--The term 
                ``Extractive Industries Transparency Initiative 
                principles and criteria'' means the principles 
                and criteria of the Extractive Industries 
                Transparency Initiative, as set forth in Annex 
                A to the Anti-Corruption Policies and 
                Strategies Handbook of the Corporation, as 
                published in September 2006.
          (5) Reporting requirement.--The Corporation shall 
        include in its annual report required under section 
        240A a description of its activities to carry out this 
        subsection.
  (c) Definitions.--In this section:
          (1) Clean and efficient energy technology.--The term 
        ``clean and efficient energy technology'' means an 
        energy supply or end-use technology--
                  (A) such as--
                          (i) solar technology;
                          (ii) wind technology;
                          (iii) geothermal technology;
                          (iv) hydroelectric technology; and
                          (v) carbon capture technology; and
                  (B) that, over its life cycle and compared to 
                a similar technology already in commercial 
                use--
                          (i) is reliable, affordable, 
                        economically viable, socially 
                        acceptable, and compatible with the 
                        needs and norms of the country 
                        involved;
                          (ii) results in--
                                  (I) reduced emissions of 
                                greenhouse gases; or
                                  (II) increased geological 
                                sequestration; and
                          (iii) may--
                                  (I) substantially lower 
                                emissions of air pollutants; or
                                  (II) generate substantially 
                                smaller and less hazardous 
                                quantities of solid or liquid 
                                waste.
          (2) Greenhouse gas.--The term ``greenhouse gas'' 
        means--
                  (A) carbon dioxide;
                  (B) methane;
                  (C) nitrous oxide;
                  (D) hydrofluorocarbons;
                  (E) perfluorocarbons; or
                  (F) sulfur hexafluoride.
  Sec. 235. Issuing Authority, Direct Investment Authority and 
Reserves.--
  (a) Issuing Authority.--
          (1) * * *
          (2) Termination of authority.--The authority of 
        subsections (a), (b), and (c) of section 234 shall 
        continue until [September 30, 2007] September 30, 2011.

           *       *       *       *       *       *       *

  [(e) There is hereby authorized to be transferred to the 
Corporation at its call, for the purposes specified in section 
236, all fees and other revenues collected under predecessor 
guaranty authority from December 31, 1968, available as of the 
date of such transfer.]
  [(f)] (e) There are authorized to be appropriated to the 
Corporation, to remain available until expended, such amounts 
as may be necessary from time to time to replenish or increase 
the noncredit account revolving fund, to discharge the 
liabilities under insurance, reinsurance, or guaranties issued 
by the Corporation or issued under predecessor guaranty 
authority, or to discharge obligations of the Corporation 
purchased by the Secretary of the Treasury pursuant to this 
subsection. However, no appropriations shall be made to augment 
the noncredit account revolving fund until the amount of funds 
in the noncredit account revolving fund is less than 
$25,000,000. Any appropriations to augment the noncredit 
account revolving fund shall then only be made either pursuant 
to specific authorization enacted after the date of enactment 
of the Overseas Private Investment Corporation Amendments Act 
of 1974, or to satisfy the full faith and credit provision of 
section 237(c). In order to discharge liabilities under 
investment insurance or reinsurance, the Corporation is 
authorized to issue from time to time for purchase by the 
Secretary of the Treasury its notes, debentures, bonds, or 
other obligations; but the aggregate amount of such obligations 
outstanding at any one time shall not exceed $100,000,000. Any 
such obligation shall be repaid to the Treasury within one year 
after the date of issue of such obligation. Any such obligation 
shall bear interest at a rate determined by the Secretary of 
the Treasury, taking into consideration the current average 
market yield on outstanding marketable obligations of the 
United States of comparable maturities during the month 
preceding the issuance of any obligation authorized by this 
subsection. The Secretary of the Treasury shall purchase any 
obligation of the Corporation issued under this subsection, and 
for such purchase he may use as a public debt transaction the 
proceeds of the sale of any securities issued under the Second 
Liberty Bond Act after the date of enactment of the Overseas 
Private Investment Corporation Amendments Act of 1974. The 
purpose for which securities may be issued under such Bond Act 
shall include any such purchase.
          (1)  * * *

           *       *       *       *       *       *       *

  Sec. 237. General Provisions Relating to Insurance Guaranty, 
and Financing Program.--(a) * * *

           *       *       *       *       *       *       *

  (j) Each insurance, reinsurance, and guaranty contract 
executed by such officer or officers as may be designated by 
the Board shall be conclusively presumed to be issued in 
compliance with the requirements of this Act.

           *       *       *       *       *       *       *

  (m)(1)  * * *
          (A)  * * *

           *       *       *       *       *       *       *

The notification under the preceding sentence shall include a 
summary of the guidelines, standards, and restrictions referred 
to in subparagraphs (A) and (B), and may include any 
environmental impact statement, assessment, review, or study 
prepared with respect to the investment pursuant to section 
[239(g)] 239(f).

           *       *       *       *       *       *       *

  (n) Penalties for Fraud.--[Whoever]
          (1) In general.--Whoever knowingly makes any false 
        statement or report, or willfully overvalues any land, 
        property, or security, for the purpose of influencing 
        in any way the action of the Corporation with respect 
        to any insurance, reinsurance, guarantee, loan, equity 
        investment, or other activity of the Corporation under 
        section 234 or any change or extension of any such 
        insurance, reinsurance, guarantee, loan, equity 
        investment, or activity, by renewal, deferment of 
        action or otherwise, or the acceptance, release, or 
        substitution of security therefor, shall be fined not 
        more than $1,000,000 or imprisoned not more than 30 
        years, or both.
          (2) Deferrals to department of justice.--(A) The 
        President of the Corporation shall refer to the 
        Department of Justice for appropriate action 
        information known to the Corporation concerning any 
        substantial evidence of--
                  (i) a violation of this title;
                  (ii) a material breach of contract entered 
                into with the Corporation by an eligible 
                investor; or
                  (iii) a material false representation made by 
                an investor to the Corporation.
          (B) Subparagraph (A) does not apply if the President 
        of the Corporation concludes that the matter described 
        in clause (i), (ii), or (iii), as the case may be, of 
        subparagraph (A)--
                  (i) is not evidence of a possible violation 
                of criminal law; and
                  (ii) is not evidence that the Federal 
                Government is entitled to civil remedy or to 
                impose a civil penalty.

           *       *       *       *       *       *       *

  (p) Community Support.--To the maximum extent practicable, 
the Corporation shall require the applicant for a project that 
is subject to section 231A(b) to obtain broad community support 
for the project.
  (q) Prohibition on Assistance for Certain Railway Projects.--
The Corporation may not provide insurance, reinsurance, a 
guaranty, financing, or other assistance to support the 
development or promotion of any railway connection or railway-
related connection that does not traverse or connect with 
Armenia and does connect Azerbaijan and Turkey.
  (r) Ineligible Projects.--
          (1) In general.--A project will not be eligible to 
        receive support provided by the Corporation under this 
        title if either of the following applies:
                  (A)(i) An applicant for insurance, 
                reinsurance, financing, or other support for a 
                project provided to the government of a state 
                sponsor of terrorism a loan, or an extension of 
                credit, that remains outstanding.
                  (ii) For purposes of this subparagraph, the 
                sale of goods, other than food or medicine, on 
                any terms other than a cash basis shall be 
                considered to be an extension of credit.
                  (B) An applicant for insurance, reinsurance, 
                financing, or other support for a project has 
                an investment commitment valued at $20,000,000 
                or more for the energy sector in a country that 
                is a state sponsor of terrorism.
          (2) Definitions.--In this subsection:
                  (A) Cash basis.--The term ``cash basis'' 
                refers to a sale in which the purchaser of 
                goods or services is required to make payment 
                in full within 45 days after receiving the 
                goods or services.
                  (B) Energy sector.--The term ``energy 
                sector'' refers to activities to develop or 
                transport petroleum or natural gas resources.
                  (C) Investment commitment.--The term 
                ``investment commitment'' means any of the 
                following activities if such activity is 
                undertaken pursuant to a commitment, or 
                pursuant to the exercise of rights under a 
                commitment, that was entered into with the 
                government of a state sponsor of terrorism or a 
                nongovernmental entity in a country that is a 
                state sponsor of terrorism:
                          (i) The entry into a contract that 
                        includes responsibility for the 
                        development of petroleum resources 
                        located in a country that is a state 
                        sponsor of terrorism, or the entry into 
                        a contract providing for the general 
                        supervision and guarantee of another 
                        person's performance of such a 
                        contract.
                          (ii) The purchase of a share of 
                        ownership, including an equity 
                        interest, in that development.
                          (iii) The entry into a contract 
                        providing for the participation in 
                        royalties, earnings, or profits in that 
                        development, without regard to the form 
                        of the participation.
                  (D) State sponsor of terrorism.--The term 
                ``state sponsor of terrorism'' means a country 
                the government of which the Secretary of State 
                has determined, for purposes of section 6(j) of 
                the Export Administration Act of 1979, section 
                620A of the Foreign Assistance Act of 1961, 
                section 40 of the Arms Export Control Act, or 
                any other provision of law, to be a government 
                that has repeatedly provided support for acts 
                of international terrorism.
          (3) Certification.--
                  (A) By applicants.--A person or entity 
                applying for insurance, reinsurance, a 
                guaranty, financing, or other assistance under 
                this title may not receive such support unless 
                its chief executive officer certifies to the 
                Corporation, under penalty of perjury, that the 
                person or entity and its majority-owned 
                subsidiaries are not engaged in any activity 
                described in subparagraph (A) or (B) of 
                paragraph (1).
                  (B) By ultimate parent entities.--In the case 
                of an applicant that is a majority-owned entity 
                of another entity, in addition to the 
                certification under subparagraph (A), the chief 
                executive officer of the ultimate parent entity 
                of the applicant must certify, under penalty of 
                perjury, that it and its majority-owned 
                subsidiaries are not engaged in any activity 
                described in subparagraph (A) or (B) of 
                paragraph (1).
                  (C) Application to straw man transactions.--
                In any case in which--
                          (i) an applicant for insurance, 
                        reinsurance, financing, or other 
                        assistance under this title is 
                        providing goods and services to a 
                        project,
                          (ii) more than 50 percent of such 
                        goods and services are acquired from an 
                        unaffiliated entity, and
                          (iii) the unaffiliated entity is 
                        receiving $20,000,000 or more, or sums 
                        greater than 50 percent of the amount 
                        of the assistance provided by the 
                        Corporation for the project (including 
                        contingent liability), for such goods 
                        or services,
                then the chief executive officer of the 
                unaffiliated entity must make a certification 
                under subparagraph (A), and any ultimate parent 
                entity must make a certification required by 
                subparagraph (B).
                  (D) Diligent inquiry.--A certification 
                required by subparagraph (A), (B), or (C) may 
                be made to the best knowledge and belief of the 
                certifying officer if that officer states that 
                he or she has made diligent inquiry into the 
                matter certified.
                  (E) Exception.--(i) A chief executive officer 
                of an applicant or other entity may provide a 
                certification required by subparagraph (A), 
                (B), or (C) with respect to the activity of a 
                majority-owned subsidiary or entity 
                notwithstanding activity by such majority-owned 
                subsidiary or entity that would cause a project 
                to be ineligible for support under subparagraph 
                (A) or (B) of paragraph (1) if such activity is 
                carried out under a contract or other 
                obligation of such majority-owned subsidiary or 
                entity that was entered into or incurred before 
                the acquisition of such majority-owned 
                subsidiary or entity by the applicant or 
                ultimate parent entity.
                  (ii) Clause (i) shall not apply if the terms 
                of such contract or other obligation are 
                expanded or extended after such acquisition.
                  (F) Definition.--For purposes of this 
                paragraph, a person is an ultimate parent of an 
                entity if the person owns directly, or through 
                majority ownership of other entities, greater 
                than 50 percent of the equity of the entity.
          (4) Exception.--The prohibition in paragraph (1) 
        shall not--
                  (A) apply to a loan, extension of credit, or 
                investment commitment by an applicant, or other 
                entity covered by a certification under 
                subparagraph (A), (B), or (C) of paragraph (3), 
                in Southern Sudan, Southern Kordofan/Nuba 
                Mountains State, Blue Nile State, or Abyei, 
                Darfur, if the Corporation, with the 
                concurrence of the Secretary of State, 
                determines that such loan, extension of credit, 
                or investment commitment will provide emergency 
                relief, promote economic self-sufficiency, or 
                implement a nonmilitary program in support of a 
                viable peace agreement in Sudan, including the 
                Comprehensive Peace Agreement for Sudan and the 
                Darfur Peace Agreement; or
                  (B) prohibit the Corporation from providing 
                support for projects in Southern Sudan, 
                Southern Kordofan/Nuba Mountains State, Blue 
                Nile State, and Abyei, Darfur, if the 
                Corporation, with the concurrence of the 
                Secretary of State, determines that such 
                projects will provide emergency relief, promote 
                economic self-sufficiency, or implement a 
                nonmilitary program in support of a viable 
                peace agreement in Sudan, including the 
                Comprehensive Peace Agreement for Sudan and the 
                Darfur Peace Agreement .
          (5) Prospective application of subsection.--This 
        subsection shall not be applied to limit support by the 
        Corporation under this title because an applicant, or 
        other entity covered by a certification under 
        subparagraph (A), (B), or (C) of paragraph (3) engaged 
        in commercial activity specifically licensed by the 
        Office of Foreign Assets Control of the Department of 
        the Treasury.
  (s) Availability of Project Information.--Beginning 90 days 
after the date of the enactment of the Overseas Private 
Investment Corporation Reauthorization Act of 2007, the 
Corporation shall make public, and post on its Internet 
website, summaries of all new projects supported by the 
Corporation, and other relevant information, except that the 
Corporation shall not include any confidential business 
information in the summaries and information made available 
under this subsection.
  (t) Review of Methodology.--Not later than 180 days after the 
date of the enactment of the Overseas Private Investment 
Corporation Reauthorization Act of 2007, the Corporation shall 
publish in the Federal Register and periodically revise, 
subject to a period of public comment, the detailed 
methodology, including relevant regulations, used to assess and 
monitor the impact of projects supported by the Corporation on 
the development and environment of, and international worker 
rights in, host countries, and on United States employment.
  (u) Public Notice Prior to Project Approval.--
          (1) Public notice.--The Board of Directors of the 
        Corporation may not vote in favor of any action 
        proposed to be taken by the Corporation on any Category 
        A project until at least 60 days after the 
        Corporation--
                  (A) makes available for public comment a 
                summary of the project and relevant information 
                about the project; and
                  (B) makes the summary and information 
                described in paragraph (1) available to locally 
                affected groups in the area of impact of the 
                proposed project, and to host country 
                nongovernmental organizations.
        The Corporation shall not include any business 
        confidential information in the summary and information 
        made available under subparagraphs (A) and (B).
          (2) Published response.--To the extent practicable, 
        the Corporation shall publish responses to the comments 
        received under paragraph (1) with respect to a Category 
        A project and submit the responses to the Board not 
        later than 7 days before a vote is to be taken on any 
        action proposed by the Corporation on the project.
          (3) Definitions.--In this subsection, the term 
        ``Category A project'' means any project or other 
        activity for which the Corporation proposes to provide 
        insurance, reinsurance, financing, or other support 
        under this title and which is likely to have 
        significant adverse environmental impacts.
  (v) Office of Accountability.--The Corporation shall maintain 
an Office of Accountability to provide problem-solving services 
for projects supported by the Corporation and to review the 
Corporation's compliance with its environmental, social, worker 
rights, human rights, and transparency policies and procedures, 
to the maximum extent practicable. The Office of Accountability 
shall operate in a manner that is fair, objective and 
transparent.
  Sec. 238. Definitions.--As used in this title--
          (a) * * *

           *       *       *       *       *       *       *

          (f) the term ``predecessor guaranty authority'' means 
        prior guaranty authorities (other than housing guaranty 
        authorities) repealed by the Foreign Assistance Act of 
        1969, section 202(b) and 413(b) of the Mutual Security 
        Act of 1954, as amended, and section 111(b)(3) of the 
        Economic Cooperation Act of 1948, as amended (exclusive 
        of authority relating to informational media 
        guaranties); [and]
          (g) the term ``local financial institution''--
                  (1)  * * *
                  (2) does not include a branch, however 
                organized, of a bank or other financial 
                institution that is organized under the laws of 
                a country in which the Corporation does not 
                operate[.]; and
          (h) the term ``international worker rights'' means--
                  (1) internationally recognized worker rights, 
                as defined in section 507(4) of the Trade Act 
                of 1974 (19 U.S.C. 2467(4)); and
                  (2) the elimination of discrimination with 
                respect to employment and occupation.
  Sec. 239. General Provisions and Powers.--(a) * * *
  [(b) The President shall transfer to the Corporation, at such 
time as he may determine, all obligations, assets and related 
rights and responsibilities arising out of, or related to, 
predecessor programs and authorities similar to those provided 
for in section 234 (a), (b), and (d). Until such transfer, the 
agency heretofore responsible for such predecessor programs 
shall continue to administer such assets and obligations, and 
such programs and activities authorized under this title as may 
be determined by the President.]
  [(c)] (b)(1) The Corporation shall be subject to the 
applicable provisions of chapter 91 of title 31, United States 
Code, except as otherwise provided in this title.

           *       *       *       *       *       *       *

  [(d)] (c) To carry out the purposes of this title, the 
Corporation is authorized to adopt and use a corporate seal, 
which shall be judicially noticed; to sue and be sued in its 
corporate name; to adopt, amend, and repeal bylaws governing 
the conduct of its business and the performance of the powers 
and duties granted to or imposed upon it by law; to acquire, 
hold or dispose of, upon such terms and conditions as the 
Corporation may determine, any property, real, personal, or 
mixed, tangible or intangible, or any interest therein; to 
invest funds derived from fees and other revenues in 
obligations of the United States and to use the proceeds 
therefrom, including earnings and profits, as it shall deem 
appropriate; to indemnify directors, officers, employees and 
agents of the Corporation for liabilities and expenses incurred 
in connection with their Corporation activities; to require 
bonds of officers, employees, and agents and pay the premiums 
therefor; notwithstanding any other provision of law, to 
represent itself or to contract for representation in all legal 
and arbitral proceedings; to enter into limited-term contracts 
with nationals of the United States for personal services to 
carry out activities in the United States and abroad under 
subsections (d) and (e) of section 234; to purchase, discount, 
rediscount, sell, and negotiate, with or without its 
endorsement or guaranty, and guarantee notes, participation 
certificates, and other evidence of indebtedness (provided that 
the Corporation shall not issue its own securities, except 
participation certificates for the purpose of carrying out 
section 231(c) or participation certificates as evidence of 
indebtedness held by the Corporation in connection with 
settlement of claims under section 237(i)); to make and carry 
out such contracts and agreements as are necessary and 
advisable in the conduct of its business; to exercise the 
priority of the Government of the United States in collecting 
debts from bankrupt, insolvent, or decedents' estates; to 
determine the character of and the necessity for its 
obligations and expenditures, and the manner in which they 
shall be incurred, allowed, and paid, subject to provisions of 
law specifically applicable to Government corporations; to 
collect or compromise any obligations assigned to or held by 
the Corporation, including any legal or equitable rights 
accruing to the Corporation; and to take such actions as may be 
necessary or appropriate to carry out the powers herein or 
hereafter specifically conferred upon it.
  [(e)] (d) The Inspector General of the Agency for 
International Development (1) may conduct reviews, 
investigations, and inspections of all phases of the 
Corporation's operations and activities and (2) shall conduct 
all security activities of the Corporation relating to 
personnel and the control of classified material. With respect 
to his responsibilities under this subsection, the Inspector 
General shall report to the Board. The agency primarily 
responsible for administering part I shall be reimbursed by the 
Corporation for all expenses incurred by the Inspector General 
in connection with his responsibilities under this subsection.
  [(f)] (e) Except for the provisions of this title, no other 
provision of this or any other law shall be construed to 
prohibit the operation in Yugoslavia, Poland, Hungary, or any 
other East European country, or the People's Republic of China, 
or Pakistan of the programs authorized by this title, if the 
President determines that the operation of such program in such 
country is important to the national interest.
  [(g)] (f) The requirements of section 117(c) of this Act 
relating to environmental impact statements and environmental 
assessments shall apply to any investment which the Corporation 
insures, reinsures, guarantees, or finances under this title in 
connection with a project in a country.
  [(h)] (g) In order to carry out the policy set forth in 
paragraph (1) of the second undesignated paragraph of section 
231 of this Act, the Corporation shall prepare and maintain for 
each investment project it insures, finances, or reinsures, a 
development impact profile consisting of data appropriate to 
measure the projected and actual effects of such project on 
development. Criteria for evaluating projects shall be 
developed in consultation with the Agency for International 
Development. In addition, the Corporation should consult with 
relevant stakeholders in developing such criteria.
  [(i)] (h) The Corporation shall take into account in the 
conduct of its programs in a country, in consultation with the 
Secretary of State, all available information about observance 
of and respect for human rights and fundamental freedoms, 
including international worker rights, in such country and the 
effect the operation of such programs will have on human rights 
and fundamental freedoms in such country. The provisions of 
section 116 of this Act shall apply to any insurance, 
reinsurance, guaranty, or loan issued by the Corporation for 
projects in a country, except that in addition to the exception 
(with respect to benefiting needy people) set forth in 
subsection (a) of such section, the Corporation may support a 
project if the national security interest so requires.
  [(j)] (i) The Corporation, including its franchise, capital, 
reserves, surplus, advances, intangible property, and income, 
shall be exempt from all taxation at any time imposed by the 
United States, by any territory, dependency, or possession of 
the United States, or by any State, the District of Columbia, 
or any county, municipality, or local taxing authority.
  [(k)] (j) The Corporation shall publish, and make available 
to applicants for insurance, reinsurance, guarantees, 
financing, or other assistance made available by the 
Corporation under this title, the policy guidelines of the 
Corporation relating to its programs.
  (k) Transparency and Accountability of Investment Funds.--
          (1) Competitive selection of investment fund 
        management.--With respect to any investment fund that 
        the Corporation creates on or after the date of the 
        enactment of the Overseas Private Investment 
        Corporation Reauthorization Act of 2007, the 
        Corporation may select persons to manage the fund only 
        by contract using full and open competitive procedures.
          (2) Criteria for selection.--In assessing proposals 
        for investment fund management proposals, the 
        Corporation shall consider, in addition to other 
        factors, the following:
                  (A) The prospective fund management's 
                experience, depth, and cohesiveness.
                  (B) The prospective fund management's track 
                record in investing risk capital in emerging 
                markets.
                  (C) The prospective fund management's 
                experience, management record, and monitoring 
                capabilities in its target countries, including 
                details of local presence (directly or through 
                local alliances).
                  (D) The prospective fund management's 
                experience as a fiduciary in managing 
                institutional capital, meeting reporting 
                requirements, and administration.
                  (E) The prospective fund management's record 
                in avoiding investments in companies that would 
                be disqualified under section 237(r).
          (3) Annual report.--The Corporation shall include in 
        each annual report under section 240A an analysis of 
        the investment fund portfolio of the Corporation, 
        including the following:
                  (A) Fund performance.--An analysis of the 
                aggregate financial performance of the 
                investment fund portfolio grouped by region and 
                maturity.
                  (B) Status of loan guaranties.--The amount of 
                guaranties committed by the Corporation to 
                support investment funds, including the 
                percentage of such amount that has been 
                disbursed to the investment funds.
                  (C) Risk ratings.--The definition of risk 
                ratings, and the current aggregate risk ratings 
                for the investment fund portfolio, including 
                the number of investment funds in each of the 
                Corporation's rating categories.
                  (D) Competitive selection of investment fund 
                management.--The number of proposals received 
                and evaluated for each newly established 
                investment fund.
  (l) Operations in Iraq.--Notwithstanding subsections (a) and 
(b) of section 237, the Corporation is authorized to undertake 
in Iraq any program authorized by this title.
  (m) Consistency with Other Law.--Section 620L of this Act 
shall apply to any insurance, reinsurance, guaranty, or other 
financing issued by the Corporation for projects in the West 
Bank and Gaza to the same extent as such section applies to 
other assistance under this Act.
  (n) Limitation on Assistance to Gaza and the West Bank.--The 
Corporation may not provide insurance, reinsurance, a guaranty, 
financing, or other assistance to support a project in any part 
of Gaza or the West Bank unless the Secretary of State 
determines that the location for the project is not under the 
effective control of Hamas or any other foreign terrorist 
organization designated under section 219 of the Immigration 
and Nationality Act (8 U.S.C. 1189).
  (o) Congressional Notification of Increase in Maximum 
Contingent Liability.--The Corporation shall notify the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate not later 
than 15 days after the date on which the Corporation's maximum 
contingent liability outstanding at any one time pursuant to 
insurance issued under section 234(a), and the amount of 
financing issued under sections 234(b) and (c), exceeds the 
previous fiscal year's maximum contingent liability by 25 
percent.
  Sec. 240. Small Business Development.--(a) * * *

           *       *       *       *       *       *       *

  (c) Resources Dedicated to Small Businesses, Cooperatives, 
and Other Small United States Investors.--The Corporation shall 
ensure that adequate personnel and resources, including senior 
officers, are dedicated to assist United States small 
businesses, cooperatives, and other small United States 
investors in obtaining insurance, reinsurance, financing, and 
other support under this title. The Corporation shall include, 
in each annual report under section 240A, the following 
information with respect to the period covered by the report:
          (1) A description of such personnel and resources.
          (2) The number of small businesses, cooperatives, and 
        other small United States investors that received such 
        insurance, reinsurance, financing, and other support, 
        and the dollar value of such insurance, reinsurance, 
        financing and other support.
          (3) A description of the projects for which such 
        insurance, reinsurance, financing, and other support 
        was provided.
  Sec. 240A. Reports to the Congress.--After (a) the end of 
each fiscal year, the Corporation shall submit to the Congress 
a complete and detailed report of its operations during such 
fiscal year. Such report shall include--
          (1) an assessment, based upon the development impact 
        profiles required by section [239(h)] 239(g), of the 
        economic and social development impact and benefits of 
        the projects with respect to which such profiles are 
        prepared, and of the extent to which the operations of 
        Corporation complement or are compatible with the 
        development assistance programs of the United States 
        and other donors; and
          (2) a description of any project for which the 
        Corporation--
                  (A) refused to provide any insurance, 
                reinsurance, guaranty, financing, or other 
                financial support, on account of violations of 
                human rights referred to in section [239(i)] 
                239(h); or

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                              ----------                              


   SECTION 209 OF THE ADMIRAL JAMES W. NANCE AND MEG DONOVAN FOREIGN 
        RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2000 AND 2001

SEC. 209. CONTINUATION OF REPORTING REQUIREMENTS.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Continuation of Reports Terminated by the Federal Reports 
Elimination and Sunset Act of 1995.--Section 3003(a)(1) of the 
Federal Reports Elimination and Sunset Act of 1995 (Public Law 
104-66; 31 U.S.C. 1113 note) does not apply to any report 
required to be submitted under any of the following provisions 
of law:
          (1)  * * *

           *       *       *       *       *       *       *

          (16) Section [239(c)] 239(b) of the Foreign 
        Assistance Act of 1961 (Public Law 87-195; 22 U.S.C. 
        [2199(c)] 2199(b)) (relating to OPIC audit report).

           *       *       *       *       *       *       *