[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2272 Referred in Senate (RFS)]

  1st Session
                                H. R. 2272


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 17, 2001

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 AN ACT


 
To amend the Foreign Assistance Act of 1961 to provide for debt relief 
to developing countries who take action to protect critical coral reef 
                               habitats.

    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 CORAL REEFS AND 
              OTHER COASTAL MARINE RESOURCES.

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

``PART VI--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH CORAL REEFS AND 
                     OTHER COASTAL MARINE RESOURCES

``SEC. 901. SHORT TITLE.

    ``This part may be cited as the `Coral Reef and Coastal Marine 
Conservation Act of 2001'.

``SEC. 902. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds the following:
            ``(1) It is the established policy of the United States to 
        support and seek the protection and restoration of natural 
        coastal marine areas, in particular coral reefs and other 
        critically imperiled coastal marine resources around the world, 
        as demonstrated by the establishment of the United States 
        Government's Coral Reef Task Force under Executive Order 13089 
        (June 11, 1998) and by the emphasis given to coral reefs at the 
        Conference on Oceans held in Monterey, California.
            ``(2) Coral reefs and other coastal marine resources 
        provide a wide range of benefits to mankind by--
                    ``(A) harboring a major share of the world's marine 
                biological diversity, and by acting as seed-grounds and 
                nurseries for many deep-sea species; and
                    ``(B) serving as the basis for major activities of 
                critical economic, social, and cultural importance, 
                including fishing, pharmaceutical research, recreation, 
                tourism, and the natural purification and recharge of 
                waters.
            ``(3) International organizations and assistance programs 
        to conserve coral reefs and other coastal marine resources have 
        proliferated in recent years, but the rapid destruction of 
        these resources nonetheless continues in many countries.
            ``(4) Poverty and economic pressures on many developing 
        countries, including the burden of official debts, has promoted 
        inefficient, unsustainable over-exploitation of coral reefs and 
        other coastal marine resources, while also denying necessary 
        funds to protection efforts.
            ``(5) Reduction of official, government-to-government debts 
        can help reduce economic pressures for over-exploitation of 
        coral reefs and other coastal marine resources and can mobilize 
        additional resources for their protection.
    ``(b) Purposes.--The purposes of this part are--
            ``(1) to recognize the values received by United States 
        citizens from protection of coral reefs and other coastal 
        marine resources;
            ``(2) to facilitate greater protection of remaining coral 
        reefs and other coastal marine resources, and the recovery of 
        damaged areas, by providing for the alleviation of debt in 
        countries where these resources are located, thus allowing for 
        the use of additional resources to protect and restore such 
        coral reefs and other coastal marine resources, and to reduce 
        economic pressures that have led to unsustainable exploitation; 
        and
            ``(3) to ensure that resources freed from debt in such 
        countries are rechanneled to protection of coral reefs and 
        other coastal marine resources.

``SEC. 903. DEFINITIONS.

    ``In this part:
            ``(1) Administering body.--The term `administering body' 
        means the entity provided for in section 908(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 906(a) or paragraph (1) or (2) of section 907(a) of 
        this part is exercised.
            ``(4) Board.--The term `Board' means the board referred to 
        in section 910.
            ``(5) Coral.--The term `coral' means species of the phylum 
        Cnidaria, including--
                    ``(A) all species of the orders Antipatharia (black 
                corals), Scleractinia (stony corals), Alcyonacea (soft 
                corals), Gorgonacea (horny corals), Stolonifera 
                (organpipe corals and others), and Coenothecalia (blue 
                coral), of the class Anthozoa; and
                    ``(B) all species of the order Hydrocorallina (fire 
                corals and hydrocorals) of the class Hydrozoa.
            ``(6) Coral reef.--The term `coral reef' means any reef or 
        shoal composed primarily of corals.
            ``(7) Developing country with a coral reef or other coastal 
        marine resource.--The term `developing country with a coral 
        reef or other coastal marine resource' 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 coral 
                reef or other coastal marine resource that is of 
                conservation concern.
            ``(8) Eligible country.--The term `eligible country' means 
        a country designated by the President in accordance with 
        section 905.
            ``(9) Coral reef and other coastal marine resources 
        agreement.--The term `Coral Reef and Other Coastal Marine 
        Resources Agreement' or `Agreement' means an Coral Reef and 
        Other Coastal Marine Resources Agreement as provided for in 
        section 908.
            ``(10) Coral reef and other coastal marine resources 
        facility.--The term `Coral Reef and Other Coastal Marine 
        Resources Facility' or `Facility' means the Coral Reef and 
        Other Coastal Marine Resources Facility established in the 
        Department of the Treasury by section 904.
            ``(11) Coral reef and other coastal marine resources 
        fund.--The term `Coral Reef and Other Coastal Marine Resources 
        Fund' or `Fund' means a Coral Reef and Other Coastal Marine 
        Resources Fund provided for in section 909.

``SEC. 904. ESTABLISHMENT OF THE FACILITY.

    There is established in the Department of the Treasury an entity to 
be known as the `Coral Reef and Other Coastal Marine Resources 
Facility' for the purpose of providing for the administration of debt 
reduction in accordance with this part.

``SEC. 905. 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 coral 
reef or other coastal marine resource--
            ``(1) the government of which 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 established investment reforms, as evidenced 
        by the conclusion of a bilateral investment treaty with the 
        United States, implementation of an investment sector loan with 
        the Inter-American Development Bank, World Bank-supported 
        investment reforms, or other measures, as appropriate.
    ``(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 the 
        intention of the President to designate a country as an 
        eligible country at least 15 days in advance of any formal 
        determination.

``SEC. 906. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF 
              CONCESSIONAL LOANS UNDER THIS ACT.

    ``(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, 1999, as a result of 
        concessional loans made to an eligible country by the United 
        States under this Act or predecessor foreign economic 
        assistance legislation.
            ``(2) Authorization of appropriations.--For the cost (as 
        defined in section 502(5) of the Federal Credit Reform Act of 
        1990) for the reduction of any debt pursuant to this section, 
        there are authorized to be appropriated to the President 
        $10,000,000 for each of the fiscal years 2002 through 2005.
            ``(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 
                United States Agency for International Development 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 United States Agency 
                for International Development 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. 907. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND DEBT 
              BUYBACKS.

    ``(a) Loans and Credits Eligible For Sale, Reduction, or 
Cancellation.--
            ``(1) Debt-for-nature swaps.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the President may, in accordance with 
                this section, sell to any eligible purchaser described 
                in subparagraph (B) any concessional loans described in 
                section 906(a)(1), or on receipt of payment from an 
                eligible purchaser described in subparagraph (B), 
                reduce or cancel such loans or portion thereof, only 
                for the purpose of facilitating a debt-for-nature swap 
                to support eligible activities described in section 
                908(d).
                    ``(B) Eligible purchaser described.--A loan may be 
                sold, reduced, or canceled under subparagraph (A) only 
                to a purchaser who presents plans satisfactory to the 
                President for using the loan for the purpose of 
                engaging in debt-for-nature swaps to support eligible 
                activities described in section 908(d).
                    ``(C) Consultation requirement.--Before the sale 
                under subparagraph (A) to any eligible purchaser 
                described in subparagraph (B), or any reduction or 
                cancellation under such subparagraph (A), of any loan 
                made to an eligible country, the President shall 
                consult with the country concerning the amount of loans 
                to be sold, reduced, or canceled and their uses for 
                debt-for-nature swaps to support eligible activities 
                described in section 908(d).
                    ``(D) Authorization of appropriations.--For the 
                cost (as defined in section 502(5) of the Federal 
                Credit Reform Act of 1990) for the reduction of any 
                debt pursuant to subparagraph (A), amounts authorized 
                to be appropriated under section 906(a)(2) shall be 
                made available for such reduction of debt pursuant to 
                subparagraph (A).
            ``(2) Debt buybacks.--Notwithstanding any other provision 
        of law, the President may, in accordance with this section, 
        sell to any eligible country any concessional loans described 
        in section 906(a)(1), or on receipt of payment from an eligible 
        purchaser described in paragraph (1)(B), reduce or cancel such 
        loans or portion thereof, only for the purpose of facilitating 
        a debt buyback by an eligible country of its own qualified 
        debt, only if the eligible country uses an additional amount of 
        the local currency of the eligible country, equal to not less 
        than the lessor of 40 percent of the price paid for such debt 
        by such eligible country, or the difference between the price 
        paid for such debt and the face value of such debt, to support 
        eligible activities described in section 908(d).
            ``(3) Limitation.--The authority provided by paragraphs (1) 
        and (2) shall be available only to the extent that 
        appropriations for the cost (as defined in section 502(5) of 
        the Federal Credit Reform Act of 1990) of the modification of 
        any debt pursuant to such paragraphs are made in advance.
            ``(4) Terms and conditions.--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 this section.
            ``(5) Administration.--
                    ``(A) In general.--The Facility shall notify the 
                Administrator of the United States Agency for 
                International Development of eligible purchasers 
                described in paragraph (1)(B) that the President has 
                determined to be eligible under paragraph (1), and 
                shall direct such agency to carry out the sale, 
                reduction, or cancellation of a loan pursuant to such 
                paragraph.
                    ``(B) Additional requirement.--Such agency shall 
                make an adjustment in its accounts to reflect the sale, 
                reduction, or cancellation of such a loan.
    ``(b) Deposit of Proceeds.--The proceeds from the sale, reduction, 
or cancellation of any loan sold, reduced or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.

``SEC. 908. CORAL REEF AND OTHER COASTAL MARINE RESOURCES 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 Coral Reef and Other Coastal Marine 
        Resources 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 Board in 
        accordance with section 910.
    ``(b) Contents of Agreement.--The requirements contained in section 
708(b) of this Act (relating to contents of an agreement) shall apply 
to an 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 non-
                                governmental organizations of, or 
                                active in, the beneficiary country;
                                    ``(II) local community development 
                                non-governmental organizations of the 
                                beneficiary country; and
                                    ``(III) scientific, academic, or 
                                forestry organizations 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 only to provide grants to conserve, maintain, and restore the 
coral reefs and other coastal marine resources in the beneficiary 
country, through one or more of the following activities:
            ``(1) Establishment, restoration, protection, and 
        maintenance of parks, protected areas, and reserves.
            ``(2) Development and implementation of scientifically 
        sound systems of natural resource management, including 
        `ridgeline to reef' and ecosystem management practices.
            ``(3) Training programs to increase the scientific, 
        technical, and managerial capacities of individuals and 
        organizations involved in conservation efforts.
            ``(4) Restoration, protection, or sustainable use of 
        diverse marine animal and plant species.
            ``(5) Development and support of the livelihoods of 
        individuals living near a coral reef or other coastal marine 
        resource, in a manner consistent with protecting those 
        resources.
    ``(e) Grant Recipients.--
            ``(1) In general.--Grants made from a Fund shall be made 
        to--
                    ``(A) nongovernmental environmental, forestry, 
                conservation, and indigenous peoples organizations of, 
                or active in, the beneficiary country;
                    ``(B) other appropriate local or regional entities 
                of, or active in, the beneficiary country; or
                    ``(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 905(a), as 
determined by the President pursuant to section 905(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 905(a).

``SEC. 909. CORAL REEF AND OTHER COASTAL MARINE RESOURCES FUND.

    ``(a) Establishment.--Each beneficiary country that enters into a 
Coral Reef and Other Coastal Marine Resources Agreement under section 
908 shall be required to establish a Coral Reef and Other Coastal 
Marine Resources Fund to receive payments of interest on new 
obligations undertaken 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. 910. BOARD.

    ``(a) Enterprise for the Americas Board.--The Enterprise for the 
Americas Board established under section 610(a) of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1738i(a)) shall, 
in addition to carrying out the responsibilities of the Board under 
section 610(c) of such Act, carry out the duties described in 
subsection (c) of this section for the purposes of this part.
    ``(b) Membership.--
            ``(1) Initial membership.--Of the six members of the 
        Enterprise for the Americas Board appointed by the President 
        under section 610(b)(1)(A) of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 
        1738i(b)(1)(A)), at least one shall be a representative of the 
        Department of State, at least one shall be a representative of 
        the Department of the Treasury, and at least one shall be a 
        representative of the Inter-American Foundation.
            ``(2) Additional membership.--The Enterprise for the 
        Americas Board shall be composed of an additional four members 
        appointed by the President as follows:
                    ``(A) Two representatives from the United States 
                Government, including a representative of the National 
                Oceanographic and Atmospheric Administration (NOAA) and 
                a representative of the United States Geological Survey 
                (USGS).
                    ``(B) Two representatives from private 
                nongovernmental environmental, scientific, forestry, or 
                academic organizations with experience and expertise in 
                preservation, maintenance, sustainable uses, and 
                restoration of coral reefs and other coastal marine 
                resources.
    ``(c) Duties.--The duties described in this subsection are as 
follows:
            ``(1) Advise the Secretary of State on the negotiations of 
        Coral Reef and Other Coastal Marine Resources Agreements.
            ``(2) 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, oceanographic, and 
                academic leaders of the beneficiary country; and
                    ``(E) environmental, scientific, oceanographic, and 
                academic leaders of the region (as appropriate),
        that a suitable administering body is identified for each Fund.
            ``(3) Review the programs, operations, and fiscal audits of 
        each administering body.

``SEC. 911. 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. 912. ANNUAL REPORTS TO THE CONGRESS.

    ``(a) In General.--Not later than December 31 of each 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 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.''.

            Passed the House of Representatives October 16, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.