[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2870 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2870

To amend the Foreign Assistance Act of 1961 to facilitate protection of 
tropical forests through debt reduction with developing countries with 
                           tropical forests.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 7, 1997

Mr. Portman (for himself, Mr. Kasich, and Mr. Hamilton) introduced the 
 following bill; which was referred to the Committee on International 
                               Relations

_______________________________________________________________________

                                 A BILL


 
To amend the Foreign Assistance Act of 1961 to facilitate protection of 
tropical forests through debt reduction with developing countries with 
                           tropical forests.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL 
              FORESTS.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by adding at the end the following:

``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS

``SEC. 801. SHORT TITLE.

    ``This part may be cited as the `Tropical Forest Conservation Act 
of 1998'.

``SEC. 802. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds the following:
            ``(1) It is the established policy of the United States to 
        support and seek protection of tropical forests around the 
        world.
            ``(2) Tropical forests provide a wide range of benefits to 
        humankind by--
                    ``(A) harboring a major share of the Earth's 
                biological and terrestrial resources, which are the 
                basis for developing pharmaceutical products and 
                revitalizing agricultural crops;
                    ``(B) playing a critical role as carbon sinks in 
                reducing greenhouse gases in the atmosphere, thus 
                moderating potential global climate change; and
                    ``(C) regulating hydrological cycles on which far-
                flung agricultural and coastal resources depend.
            ``(3) International negotiations and assistance programs to 
        conserve forest resources have proliferated over the past 
        decade, but the rapid rate of tropical deforestation continues 
        unabated.
            ``(4) Developing countries with urgent needs for investment 
        and capital for development have allocated a significant amount 
        of their forests to logging concessions.
            ``(5) Poverty and economic pressures on the populations of 
        developing countries have, over time, resulted in clearing of 
        vast areas of forest for conversion to agriculture, which is 
        often unsustainable in the poor soils underlying tropical 
        forests.
            ``(6) Debt reduction can reduce economic pressures on 
        developing countries and result in increased protection for 
        tropical forests.
    ``(b) Purposes.--The purposes of this part are--
            ``(1) to recognize the values received by United States 
        citizens from protection of tropical forests;
            ``(2) to facilitate greater protection of tropical forests 
        (and to give priority to protecting tropical forests with the 
        highest levels of biodiversity and under the most severe 
        threat) by providing for the alleviation of debt in countries 
        where tropical forests are located, thus allowing the use of 
        additional resources to protect these critical resources and 
        reduce economic pressures that have led to deforestation;
            ``(3) to ensure that resources freed from debt in such 
        countries are targeted to protection of tropical forests and 
        their associated values; and
            ``(4) to rechannel existing resources to facilitate the 
        protection of tropical forests.

``SEC. 803. ESTABLISHMENT OF THE FACILITY.

    ``There is established in the Department of the Treasury an entity 
to be known as the `Tropical Forest Facility' for the purpose of 
providing for the administration of debt reduction in accordance with 
this part.

``SEC. 804. ELIGIBILITY FOR BENEFITS.

    ``(a) In General.--To be eligible for benefits from the Facility 
under this part, a country shall be a developing country with a 
tropical forest--
            ``(1) whose government meets the requirements applicable to 
        Latin American or Caribbean countries under paragraphs (1) 
        through (5) and (7) of section 703(a) of this Act; and
            ``(2) that has put in place major investment reforms in 
        conjunction with a loan of the appropriate international 
        development bank for the region in which the country is located 
        or otherwise is implementing, or is making significant progress 
        toward, an open investment regime.
    ``(b) Eligibility Determinations.--
            ``(1) In general.--Consistent with subsection (a), the 
        President shall determine whether a country is eligible to 
        receive benefits under this part.
            ``(2) Congressional notification.--The President shall 
        notify the appropriate congressional committees of his 
        intention to designate a country as an eligible country at 
        least 15 days in advance of any formal determination.

``SEC. 805. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF 
              CONCESSIONAL LOANS UNDER THE FOREIGN ASSISTANCE ACT OF 
              1961.

    ``(a) Authority To Reduce Debt.--
            ``(1) Authority.--The President may reduce the amount owed 
        to the United States (or any agency of the United States) that 
        is outstanding as of January 1, 1997, as a result of 
        concessional loans made to an eligible country by the United 
        States under part I of this Act, chapter 4 of part II of this 
        Act, or predecessor foreign economic assistance legislation.
            ``(2) Authorization of appropriations.--For the reduction 
        of any debt pursuant to this section, there are authorized to 
        be appropriated to the President--
                    ``(A) $25,000,000 for fiscal year 1999;
                    ``(B) $75,000,000 for fiscal year 2000; and
                    ``(C) $100,000,000 for fiscal year 2001.
            ``(3) Certain prohibitions inapplicable.--
                    ``(A) In general.--A reduction of debt pursuant to 
                this section shall not be considered assistance for 
                purposes of any provision of law limiting assistance to 
                a country.
                    ``(B) Additional requirement.--The authority of 
                this section may be exercised notwithstanding section 
                620(r) of this Act or section 321 of the International 
                Development and Food Assistance Act of 1975.
    ``(b) Implementation of Debt Reduction.--
            ``(1) In general.--Any debt reduction pursuant to 
        subsection (a) shall be accomplished at the direction of the 
        Facility by the exchange of a new obligation for obligations of 
        the type referred to in subsection (a) outstanding as of the 
        date specified in subsection (a)(1).
            ``(2) Exchange of obligations.--
                    ``(A) In general.--The Facility shall notify the 
                agency primarily responsible for administering part I 
                of this Act of an agreement entered into under 
                paragraph (1) with an eligible country to exchange a 
                new obligation for outstanding obligations.
                    ``(B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the agreement shall be canceled and a new debt 
                obligation for the country shall be established 
                relating to the agreement, and the agency primarily 
                responsible for administering part I of this Act shall 
                make an adjustment in its accounts to reflect the debt 
                reduction.
    ``(c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the reduction of debt under 
subsection (a)(1) in the same manner as such terms and conditions apply 
to the reduction of debt under section 704(a)(1) of this Act:
            ``(1) The provisions relating to repayment of principal 
        under section 705 of this Act.
            ``(2) The provisions relating to interest on new 
        obligations under section 706 of this Act.

``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF 
              CREDITS EXTENDED UNDER TITLE I OF THE AGRICULTURAL TRADE 
              DEVELOPMENT AND ASSISTANCE ACT OF 1954.

    ``(a) Authority To Reduce Debt.--
            ``(1) Authority.--Notwithstanding any other provision of 
        law, the President may reduce the amount owed to the United 
        States (or any agency of the United States) that is outstanding 
        as of January 1, 1997, as a result of any credits extended 
        under title I of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a country 
        eligible for benefits from the Facility.
            ``(2) Authorization of appropriations.--For the reduction 
        of any debt pursuant to this section, there are authorized to 
        be appropriated to the President--
                    ``(A) $25,000,000 for fiscal year 1999;
                    ``(B) $50,000,000 for fiscal year 2000; and
                    ``(C) $50,000,000 for fiscal year 2001.
    ``(b) Implementation of Debt Reduction.--
            ``(1) In general.--Any debt reduction pursuant to 
        subsection (a) shall be accomplished at the direction of the 
        Facility by the exchange of a new obligation for obligations of 
        the type referred to in subsection (a) outstanding as of the 
        date specified in subsection (a)(1).
            ``(2) Exchange of obligations.--
                    ``(A) In general.--The Facility shall notify the 
                Commodity Credit Corporation of an agreement entered 
                into under paragraph (1) with an eligible country to 
                exchange a new obligation for outstanding obligations.
                    ``(B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the agreement may be canceled and a new debt 
                obligation may be established for the country relating 
                to the agreement, and the Commodity Credit Corporation 
                shall make an adjustment in its accounts to reflect the 
                debt reduction.
    ``(c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the reduction of debt under 
subsection (a)(1) in the same manner as such terms and conditions apply 
to the reduction of debt under section 604(a)(1) of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1738c):
            ``(1) The provisions relating to repayment of principal 
        under section 605 of such Act.
            ``(2) The provisions relating to interest on new 
        obligations under section 606 of such Act.

``SEC. 807. SALE, REDUCTION, OR CANCELLATION OF LOANS MADE BY THE 
              UNITED STATES UNDER THE EXPORT-IMPORT BANK ACT OF 1945.

    ``(a) Authority To Sell, Reduce, or Cancel Loans.--
            ``(1) Authority.--Notwithstanding any other provision of 
        law, the President may, in accordance with this section, sell 
        to any eligible purchaser any loan or portion thereof made 
        before January 1, 1997, to any eligible country or any agency 
        thereof pursuant to the Export-Import Bank Act of 1945 (12 
        U.S.C. 635 et seq.), or, on receipt of payment from an eligible 
        purchaser, reduce or cancel such loan or portion thereof.
            ``(2) Authorization of appropriations.--For the sale, 
        reduction, or cancellation of loans or portion thereof pursuant 
        to this section, there are authorized to be appropriated to the 
        President $75,000,000 for fiscal year 2001.
    ``(b) Implementation of Debt Reduction.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the President shall, in accordance with this section, 
        establish the terms and conditions under which loans may be 
        sold, reduced, or canceled pursuant to subsection (a).
            ``(2) Administration.--The Facility shall notify the 
        Export-Import Bank of the United States of purchasers that the 
        President has determined to be eligible, and shall direct the 
        Bank to carry out the sale, reduction, or cancellation of a 
        loan pursuant to this section, and the Bank shall make an 
        adjustment in its accounts to reflect the sale, reduction, or 
        cancellation.
    ``(c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the sale, reduction, or 
cancellation of loans under subsection (a)(1) in the same manner as 
such terms and conditions apply to the sale, reduction, or cancellation 
of loans under section 12(c)(1) of the Export-Import Bank Act of 1945:
            ``(1) The provisions relating to the treatment of the sale, 
        reduction, or cancellation of loans under the Securities Act of 
        1933 under section 12(c)(3) of the Export-Import Bank Act of 
        1945.
            ``(2) The provisions relating to the deposit of proceeds, 
        eligible purchasers, and debtor consultation under subsections 
        (d), (e), and (f), respectively, of section 12 of such Act.

``SEC. 808. TROPICAL FOREST FUND.

    ``(a) Establishment.--Each beneficiary country that enters into a 
Tropical Forest Agreement under section 809 shall be required to 
establish a Tropical Forest Fund to receive payments of interest on new 
obligations issued by the beneficiary country under this part.
    ``(b) Requirements Relating to Operation of Fund.--The following 
terms and conditions shall apply to the Fund in the same manner as such 
terms as conditions apply to an Enterprise for the Americas Fund under 
section 707 of this Act:
            ``(1) The provision relating to deposits under subsection 
        (b) of such section.
            ``(2) The provision relating to investments under 
        subsection (c) of such section.
            ``(3) The provision relating to disbursements under 
        subsection (d) of such section.

``SEC. 809. TROPICAL FOREST AGREEMENT.

    ``(a) Authority.--
            ``(1) In general.--The Secretary of State is authorized, in 
        consultation with other appropriate officials of the Federal 
        Government, to enter into a Tropical Forest Agreement with any 
        eligible country concerning the operation and use of the Fund 
        for that country.
            ``(2) Consultation.--In the negotiation of such an 
        Agreement, the Secretary shall consult with the Tropical Forest 
        Board in accordance with section 810.
    ``(b) Contents of Agreement.--The requirements contained in section 
708(b) of this Act (relating to contents of an agreement) shall apply 
to a Agreement in the same manner as such requirements apply to an 
Americas Framework Agreement.
    ``(c) Administering Body.--
            ``(1) In general.--Amounts disbursed from the Fund in each 
        beneficiary country shall be administered by a body constituted 
        under the laws of that country.
            ``(2) Composition.--
                    ``(A) In general.--The administering body shall 
                consist of--
                            ``(i) one or more individuals appointed by 
                        the United States Government;
                            ``(ii) one or more individuals appointed by 
                        the government of the beneficiary country; and
                            ``(iii) individuals who represent a broad 
                        range of--
                                    ``(I) environmental nongovernmental 
                                organizations active in the beneficiary 
                                country;
                                    ``(II) local community development 
                                nongovernmental organizations of the 
                                beneficiary country; and
                                    ``(III) scientific or academic 
                                organizations or institutions of the 
                                beneficiary country.
                    ``(B) Additional requirement.--A majority of the 
                members of the administering body shall be individuals 
                described in subparagraph (A)(iii).
            ``(3) Responsibilities.--The requirements contained in 
        section 708(c)(3) of this Act (relating to responsibilities of 
        the administering body) shall apply to an administering body 
        described in paragraph (1) in the same manner as such 
        requirements apply to an administering body described in 
        section 708(c)(1) of this Act.
    ``(d) Eligible Activities.--Amounts deposited in a Fund shall be 
used to provide grants to preserve, maintain, and restore the tropical 
forests in the beneficiary country, including one or more of the 
following activities:
            ``(1) Establishment, restoration, protection, and 
        maintenance of parks and reserves.
            ``(2) Development and implementation of sound systems of 
        natural resource management, including land and ecosystem 
        management practices.
            ``(3) Training programs to strengthen conservation 
        institutions and increase scientific, technical, and managerial 
        capacities of individuals and organizations involved in 
        conservation efforts.
            ``(4) Restoration, protection, or sustainable use of 
        diverse animal and plant species.
            ``(5) Protection of the world's stratosphere from the 
        build-up of global warming gases.
            ``(6) Development and support of individuals living in or 
        near a tropical forest, including the cultures of such 
        individuals.
    ``(e) Grant Recipients.--
            ``(1) In general.--Grants made from a Fund shall be made 
        to--
                    ``(A) nongovernmental environmental, conservation, 
                and indigenous peoples organizations active in the 
                beneficiary country;
                    ``(B) other appropriate local or regional entities; 
                and
                    ``(C) in exceptional circumstances, the government 
                of the beneficiary country.
            ``(2) Priority.--In providing grants under paragraph (1), 
        priority shall be given to projects that are run by 
        nongovernmental organizations and other private entities and 
        that involve local communities in their planning and execution.
    ``(f) Review of Larger Grants.--Any grant of more than $100,000 
from a Fund shall be subject to veto by the Government of the United 
States or the government of the beneficiary country.
    ``(g) Eligibility Criteria.--In the event that a country ceases to 
meet the eligibility requirements set forth in section 804(a), as 
determined by the President pursuant to section 804(b), then grants 
from the Fund for that country may only be made to nongovernmental 
organizations until such time as the President determines that such 
country meets the eligibility requirements set forth in section 804(a).

``SEC. 810. TROPICAL FOREST BOARD.

    ``(a) Establishment.--There is established a board to be known as 
the `Tropical Forest Board'.
    ``(b) Membership and Chairperson.--
            ``(1) Membership.--The Board shall be composed of the 
        following members appointed by the President:
                    ``(A) Six representatives from the United States 
                Government, at least one of whom shall be a 
                representative of the Department of Agriculture.
                    ``(B) Five representatives from private 
                nongovernmental environmental, scientific, and academic 
                organizations with experience and expertise in 
                preservation, maintenance, and restoration of tropical 
                forests.
            ``(2) Chairperson.--The Board shall be headed by a 
        chairperson who shall be appointed by the President from among 
        the representatives appointed under paragraph (1)(A).
    ``(c) Duties.--The Board--
            ``(1) shall advise the Secretary of State on the 
        negotiations of Tropical Forest Agreements;
            ``(2) shall ensure, in consultation with--
                    ``(A) the government of the beneficiary country,
                    ``(B) nongovernmental organizations of the 
                beneficiary country,
                    ``(C) nongovernmental organizations of the region 
                (if appropriate),
                    ``(D) environmental, scientific, and academic 
                leaders of the beneficiary country, and
                    ``(E) environmental, scientific, and academic 
                leaders of the region (as appropriate),
        that a suitable administering body is identified for each Fund; 
        and
            ``(3) shall review the programs, operations, and fiscal 
        audits of each administering body.

``SEC. 811. CONSULTATIONS WITH THE CONGRESS.

    ``The President shall consult with the appropriate congressional 
committees on a periodic basis to review the operation of the Facility 
under this part and the eligibility of countries for benefits from the 
Facility under this part.

``SEC. 812. ANNUAL REPORTS TO THE CONGRESS.

    ``(a) In General.--Not later than December 31 of each fiscal year, 
the President shall prepare and transmit to the Congress an annual 
report concerning the operation of the Facility for the prior fiscal 
year. Such report shall include--
            ``(1) a description of the activities undertaken by the 
        Facility during the previous fiscal year;
            ``(2) a description of any Agreement entered into under 
        this part;
            ``(3) a report on any Funds that have been established 
        under this part and on the operations of such Funds; and
            ``(4) a description of any grants that have been provided 
        by administering bodies pursuant to Agreements under this part.
    ``(b) Supplemental Views in Annual Report.--Not later than December 
15 of each fiscal year, each member of the Board shall be entitled to 
receive a copy of the report required under subsection (a). Each member 
of the Board may prepare and submit supplemental views to the President 
on the implementation of this part by December 31 for inclusion in the 
annual report when it is transmitted to Congress pursuant to this 
section.

``SEC. 813. DEFINITIONS.

    ``As used in this part:
            ``(1) Administering body.--The term `administering body' 
        means the entity provided for in section 809(c).
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    ``(B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            ``(3) Beneficiary country.--The term `beneficiary country' 
        means an eligible country with respect to which the authority 
        of section 805(a)(1), 806(a)(1), or 807(a)(1) is exercised.
            ``(4) Developing country with a tropical forest.--The term 
        `developing country with a tropical forest' means--
                    ``(A)(i) a country that has a per capita income of 
                $725 or less in 1994 United States dollars (commonly 
                referred to as `low-income country'), as determined and 
                adjusted on an annual basis by the International Bank 
                for Reconstruction and Development in its World 
                Development Report; or
                    ``(ii) a country that has a per capita income of 
                more than $725 but less than $8,956 in 1994 United 
                States dollars (commonly referred to as `middle-income 
                country'), as determined and adjusted on an annual 
                basis by the International Bank for Reconstruction and 
                Development in its World Development Report; and
                    ``(B) a country that contains at least one tropical 
                forest that is globally outstanding in terms of its 
                biological diversity or represents one of the larger 
                intact blocks of tropical forests left, on a 
                continental or global scale.
            ``(5) Eligible country.--The term `eligible country' 
        means--
                    ``(A) for fiscal year 1999 and fiscal year 2000, 
                the Republic of Bolivia, Brazil, Ecuador, Guyana, the 
                Republique de Cote d'Ivoire, the Republic of Liberia, 
                the Republic of Madagascar, the Republic of Indonesia, 
                Papua New Guinea, Peru, and the Philippines, if such 
                country meets the criteria for designation by the 
                President under section 804; and
                    ``(B) for fiscal year 2001, a country designated by 
                the President in accordance with section 804.
            ``(6) Tropical forest agreement.--The term `Tropical Forest 
        Agreement' or `Agreement' means a Tropical Forest Agreement 
        provided for in section 809.
            ``(7) Tropical forest board.--The term `Tropical Forest 
        Board' or `Board' means the board established by section 810.
            ``(8) Tropical forest facility.--The term `Tropical Forest 
        Facility' or `Facility' means the Tropical Forest Facility 
        established in the Department of the Treasury by section 803.
            ``(9) Tropical forest fund.--The term `Tropical Forest 
        Fund' or `Fund' means a Tropical Forest Fund provided for in 
        section 808.''.
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