118 HR 10341 IH: Sustainable International Financial Institutions Act of 2024 U.S. House of Representatives 2024-12-10 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I118th CONGRESS2d SessionH. R. 10341IN THE HOUSE OF REPRESENTATIVESDecember 10, 2024Mr. Huffman (for himself, Ms. Norton, Ms. Escobar, Mr. Levin, Mr. Grijalva, Mr. Blumenauer, Ms. Lofgren, Ms. Barragán, and Ms. Matsui) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedA BILLTo require the use of the voice and vote of the United States in international financial institutions to advance the cause of transitioning the global economy to a clean energy economy and to prohibit United States Government assistance to countries or entities to support fossil fuel activity, and for other purposes.
1.
Short title
This Act may be cited as the Sustainable International Financial Institutions Act of 2024.
2.
Clean energy and climate justice at international financial institutions
The International Financial Institutions Act (22 U.S.C. 262c et seq.) is amended by adding at the end the following:<enum>XX</enum><header>Clean energy and climate justice</header><section id="H3DF4A64686B64EFF8803BB8C4D4C86B9"><enum>2001.</enum><header>Clean energy and climate justice</header><subsection id="H3040D9CE36224A2EB59B349BCC65A32E"><enum>(a)</enum><header>In general</header><text>The United States Executive Directors at the international financial institutions specified in subsection (c) shall use the voice and vote of the United States in those institutions—</text><paragraph id="H06045FEEA1DD48A7832FAD26F737F13F"><enum>(1)</enum><text>to advance the cause of reducing greenhouse gas emissions and transitioning the global economy to a clean energy economy, including by seeking to channel assistance toward countries and entities that are building clean and sustainable energy systems; </text></paragraph><paragraph id="HBBB0C5955EC548829F62B29A352D9F7A"><enum>(2)</enum><text>to oppose any policy reform, or investment, loan, or extension of financial or technical assistance to any country or entity, that is intended to create, or will have the effect of creating, new capacity for, or the expansion of, fossil fuel activity, including—</text><subparagraph id="HCB6844FB488B43FDBC669A956E32BBC9"><enum>(A)</enum><text>any such policy reform, investment, loan, or extension of assistance that would support the refurbishment or life extension of existing fossil fuel capacity; or</text></subparagraph><subparagraph id="HA3BBC60F36324523AEA673593242AA56"><enum>(B)</enum><text>any such investment, loan, or extension of assistance to a country or entity that would necessitate, or is predicated upon, increased fossil fuel capacity outside of the country receiving the investment, loan, or extension of assistance or the country in which the entity operates, as applicable, without regard whether the activity falls within the portfolio of the international financial institution providing the investment, loan, or extension of assistance; and</text></subparagraph></paragraph><paragraph id="H46DF5A4745B34E9DBCEC7B3170679340"><enum>(3)</enum><text>to support the phasing out of funding for internal combustion engines for passenger vehicles and buses by 2030 in a way that is sustainable and sensitive to communities in need of mobility.</text></paragraph></subsection><subsection id="H4F30809D75004873A670310B2E0A2DB2"><enum>(b)</enum><header>Reduction of contributions; deposit in escrow account</header><paragraph id="H17C3DB5532D44C0886AE8F93DCA54614"><enum>(1)</enum><header>Determination of expenditure on new fossil fuel capacity</header><text>In each fiscal year, the Secretary of the Treasury shall—</text><subparagraph id="H492CBEC5FEF34EA681EE73D5F8BA040D"><enum>(A)</enum><text>determine the amount of investments, loans, and extensions of financial or technical assistance provided by each international financial institution specified in subsection (c) to any country or entity to create new capacity for fossil fuel activity during the preceding fiscal year; and</text></subparagraph><subparagraph id="HE307F4E4F7EF469584BAB4E422CB6713"><enum>(B)</enum><text>reduce the contribution of the United States to that institution by the amount determined under subparagraph (A).</text></subparagraph></paragraph><paragraph id="H3A9F162B7F21409AAAC15546DA9928AE"><enum>(2)</enum><header>Deposit in escrow account</header><text>The Secretary shall deposit in an escrow account the amount by which the contribution of the United States to each international financial institution specified in subsection (c) is reduced under paragraph (1)(B).</text></paragraph><paragraph id="HFFCCD2F6C47B465FA96A2A1289BC8C97"><enum>(3)</enum><header>Release from escrow account</header><text>The Secretary shall release to each international financial institution specified in subsection (c) the amount in the escrow account under paragraph (2) attributable to contributions to that institution reduced under paragraph (1)(B) at such time as the Secretary determines and certifies to Congress that the institution is no longer providing investments, loans, or extensions of financial or technical assistance to any country or entity to create new capacity for fossil fuel activity.</text></paragraph><paragraph id="HDE2CBAF3E9C04DEFAE52322A75E0BDE4"><enum>(4)</enum><header>Reports required</header><text>Not later than 120 days after depositing amounts into the escrow account under paragraph (2) attributable to contributions to an international financial institution specified in subsection (c) reduced under paragraph (1)(B), and annually thereafter until amounts are released to that institution under paragraph (3), the Secretary shall submit to Congress a report that documents investments, loans, and extensions of financial or technical assistance provided by that institution to any country or entity to create new capacity for fossil fuel activity during the preceding fiscal year. </text></paragraph></subsection><subsection id="H7302E9F1ED24421A83917DFDE26D97EC"><enum>(c)</enum><header>International financial institutions specified</header><text>The international financial institutions specified in this subsection are the following:</text><paragraph id="HC2EA7E34F65D4DDBA6209FDDD1ACC254"><enum>(1)</enum><text>The International Bank for Reconstruction and Development.</text></paragraph><paragraph id="H98EC2F70DE124A3AB068F96174379761"><enum>(2)</enum><text>The International Development Association.</text></paragraph><paragraph id="H370200E1CE3B418D9991326650A86F78"><enum>(3)</enum><text>The International Finance Corporation.</text></paragraph><paragraph id="H72983FEC82644A619BE19727A338E79B"><enum>(4)</enum><text>The Multilateral Investment Guarantee Agency. </text></paragraph><paragraph id="H9896C012F7A94C83803672A7D9268FDB"><enum>(5)</enum><text>The African Development Fund.</text></paragraph><paragraph id="H8F525166D9AB423D83429155D7DEEF59"><enum>(6)</enum><text>The African Development Bank. </text></paragraph><paragraph id="H8C30FAF770DC4812B2A42933F4BAA101"><enum>(7)</enum><text>The Asian Development Fund.</text></paragraph><paragraph id="H16FBE87E988340F5AED33AD13DAD7053"><enum>(8)</enum><text>The Asian Development Bank.</text></paragraph><paragraph id="H8414ADE2A8B94093AC2058EE8F5EBB60"><enum>(9)</enum><text>The European Bank for Reconstruction and Development.</text></paragraph><paragraph id="H5AE45CAE301447AA8EBE8BD3FF8BC033"><enum>(10)</enum><text>The Inter-American Development Bank.</text></paragraph><paragraph id="H46379172396748D7AD9EE3EA403DF48B"><enum>(11)</enum><text>The Inter-American Development Bank Invest. </text></paragraph><paragraph id="H17ED57D6F2C64473A297DD4201113477"><enum>(12)</enum><text>The North American Development Bank.</text></paragraph></subsection><subsection id="HE0E3E5C410184ACCAC294357E2387651"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H21B1F3BF70314EDAAF38B4424AA0F733"><enum>(1)</enum><header>Fossil fuel activity</header><text>The term <term>fossil fuel activity</term> means the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), combustion, distribution, or marketing of, or the construction or operation of plants for the processing or refining of, coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel.</text></paragraph><paragraph id="H4BE03B771F814019A732E93436B169E3"><enum>(2)</enum><header>Fossil fuel</header><subparagraph id="HA79041A4E19D42CBAB49845FF95C6403"><enum>(A)</enum><header>In general</header><text>The term <term>fossil fuel</term> means all forms of coal, oil, and gas.</text></subparagraph><subparagraph id="HDD8F3D55ED5C4075B10D76343D612CF5"><enum>(B)</enum><header>Inclusions</header><text>The term <term>fossil fuel</term> includes—</text><clause id="HCB1B8307569F4818860FD0F602D3F3F3"><enum>(i)</enum><text>bitumen from oil sands;</text></clause><clause id="HFB5FD4257C1D495B927195DA21A190C0"><enum>(ii)</enum><text>kerogen from oil shale;</text></clause><clause id="H02291055BF8649E8B8B43005DCDA36F4"><enum>(iii)</enum><text>liquids manufactured from coal;</text></clause><clause id="H398E6D7A547D4D95A2AEBD2BC6DF3F4E"><enum>(iv)</enum><text>coal bed methane;</text></clause><clause id="H4471550A0CB24E1F99A21AAC9C9A2E2C"><enum>(v)</enum><text>methane hydrates;</text></clause><clause id="HBC66BF28090C4A338DB85F538CE56029"><enum>(vi)</enum><text>light oil derived from shale or other formations;</text></clause><clause id="H4B2BC846A60349AFBC575DF904B712FD"><enum>(vii)</enum><text>natural gas liquids; and</text></clause><clause id="H84BAF4A9ADEC46579C8FC67D8CE16B87"><enum>(viii)</enum><text>all conventionally and unconventionally produced hydrocarbons.</text></clause></subparagraph></paragraph><paragraph id="HEC9C35DC3523432FA20FFE56E54A1B13" commented="no"><enum>(3)</enum><header>Policy reform</header><text>The term <term>policy reform</term> means a process at an international financial institution that changes rules, regulations, or institutions and results in incentivizing fossil fuel investment, such as by lowering tax liability or increasing energy tariffs.</text></paragraph></subsection></section>.
3.
Prohibition on foreign assistance that would support fossil fuel activity
The United States may not provide, directly or indirectly (such as through a financial intermediary), any loan, insurance, guarantee, or extension of financial or technical assistance, including policy guidance, to any country or entity for any fossil fuel activity (as defined in section 2001(d) of the International Financial Institutions Act, as added by section 2) or a related infrastructure project, including through the United States International Development Finance Corporation, the Export-Import Bank of the United States, the Trade and Development Agency, the United States Agency for International Development, or the Millennium Challenge Corporation.