1.
This Act may be cited as the
International Clean Energy Deployment
and Global Energy Markets Investment Act of 2005
.
2.
The purposes of this Act
are—
(1)
to strengthen the cooperation
of the United States with developing countries in addressing critical energy
needs and global climate change;
(2)
to promote sustainable
economic development, increase access to modern energy services, reduce
greenhouse gas emissions, and strengthen energy security and independence in
developing countries through the deployment of clean energy
technologies;
(3)
to facilitate the export of
clean energy technologies to developing countries;
(4)
to reduce the trade deficit
of the United States through the export of United States energy technologies
and technological expertise;
(5)
to retain and create
manufacturing and related service jobs in the United States;
(6)
to integrate the objectives
described in paragraphs (1) through (5) in a manner consistent with interests
of the United States, into the foreign policy of the United States;
(7)
to authorize funds for clean
energy development activities in developing countries; and
(8)
to ensure that activities
funded under part C of title VII of the Global Environmental Protection
Assistance Act of 1989 (as added by section 3) contribute to economic growth,
poverty reduction, good governance, the rule of law, property rights, and
environmental protection.
3.
Clean energy technology deployment in developing
countries
Title VII of the Global
Environmental Protection Assistance Act of 1989 (Public Law 101–240; 103 Stat.
2521) is amending by adding at the end the following:
C
Clean energy technology deployment in developing
countries
731.
In this part:
(1)
The term clean energy
technology means an energy supply or end-use technology that, over its
lifecycle and compared to a similar technology already in commercial use in any
developing country—
(A)
is reliable, affordable,
economically viable, socially acceptable, and compatible with the needs and
norms of the host country;
(B)
results in—
(i)
reduced emissions of
greenhouse gases; or
(ii)
increased geological
sequestration; and
(C)
may—
(i)
substantially lower
emissions of air pollutants; and
(ii)
generate substantially
smaller or less hazardous quantities of solid or liquid waste.
(2)
The term
Department means the Department of State.
(3)
(A)
The term developing
country means any country not listed in Annex I of the United Nations
Framework Convention on Climate Change, done at New York on May 9, 1992.
(B)
The term developing
country may include a country with an economy in transition, as
determined by the Secretary.
(4)
The term geological
sequestration means the capture and long-term storage in a geological
formation of a greenhouse gas from an energy producing facility, which prevents
the release of greenhouse gases into the atmosphere.
(5)
The term greenhouse
gas means—
(A)
carbon dioxide;
(B)
methane;
(C)
nitrous oxide;
(D)
hydrofluorocarbons;
(E)
perfluorocarbons;
and
(F)
sulfur hexafluoride.
(6)
Institution of higher education
The term institution
of higher education has the meaning given the term in section 101(a) of
the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(7)
Interagency working group
The term Interagency
Working Group means the Interagency Working Group on Clean Energy
Technology Exports established under section 732(b)(1)(A).
(8)
The term National
Laboratory means any of the following laboratories owned by the
Department of Energy:
(A)
Ames Laboratory.
(B)
Argonne National
Laboratory.
(C)
Brookhaven National
Laboratory.
(D)
Fermi National Accelerator
Laboratory.
(E)
Idaho National Engineering
and Environmental Laboratory.
(F)
Lawrence Berkeley National
Laboratory.
(G)
Lawrence Livermore National
Laboratory.
(H)
Los Alamos National
Laboratory.
(I)
National Energy Technology
Laboratory.
(J)
National Renewable Energy
Laboratory.
(K)
Oak Ridge National
Laboratory.
(L)
Pacific Northwest National
Laboratory.
(M)
Princeton Plasma Physics
Laboratory.
(N)
Sandia National
Laboratories.
(O)
Stanford Linear Accelerator
Center.
(P)
Thomas Jefferson National
Accelerator Facility.
(9)
The term qualifying
project means a project meeting the criteria established under section
735(b).
(10)
The term
Secretary means the Secretary of State.
(11)
The term State
means—
(A)
a State;
(B)
the District of
Columbia;
(C)
the Commonwealth of Puerto
Rico; and
(D)
any other territory or
possession of the United States.
(12)
The term
Strategy means the strategy established under section 733.
(13)
The term Task
Force means the Task Force on International Clean Energy Cooperation
established under section 732(a).
(14)
The term United
States, when used in a geographical sense, means all of the
States.
732.
(a)
(1)
Not later than 90 days
after the date of enactment of this part, the President shall establish a Task
Force on International Clean Energy Cooperation.
(2)
The Task Force shall be
composed of—
(A)
the Secretary, who shall
serve as Chairperson; and
(B)
representatives, appointed
by the head of the respective Federal agency, of—
(i)
the Department of
Commerce;
(ii)
the Department of the
Treasury;
(iii)
the Department of
Energy;
(iv)
the Environmental
Protection Agency;
(v)
the United States Agency
for International Development;
(vi)
the Export-Import
Bank;
(vii)
the Overseas Private
Investment Corporation;
(viii)
the Trade and Development
Agency;
(ix)
the Small Business
Administration;
(x)
the Office of United States
Trade Representative; and
(xi)
other Federal agencies, as
determined by the President.
(3)
(A)
The Task Force shall act as
the lead agency in the development and implementation of strategy under section
733.
(B)
Coordination and implementation
The Task Force shall
support the coordination and implementation of programs under sections 1331,
1332, and 1608 of the Energy Policy Act of 1992 (42 U.S.C. 13361, 13362,
13387).
(4)
The Task Force, including
any working group established by the Task Force, shall terminate on January 1,
2016.
(b)
(1)
The Task Force—
(A)
shall establish an
Interagency Working Group on Clean Energy Technology Exports; and
(B)
may establish other working
groups as necessary to carry out this part.
(2)
Composition of interagency working group
The Interagency Working
Group shall be composed of—
(A)
the Secretary of Energy,
the Secretary of Commerce, and the Administrator of the United States Agency
for International Development, who shall jointly serve as Chairpersons;
and
(B)
other members, as
determined by the Task Force.
(c)
(1)
There is established an
Interagency Center in the Office of International Energy Market Development of
the Department of Energy.
(2)
The Interagency Center
shall—
(A)
assist the Interagency
Working Group in carrying out this part; and
(B)
perform such other duties
as are determined to be appropriate by the Secretary of Energy.
733.
(a)
(1)
Not later than 1 year after
the date of enactment of this part, the Task Force shall develop and submit to
the President a Strategy to—
(A)
support the development and
implementation of programs and policies in developing countries to promote the
adoption of clean energy technologies and energy efficiency technologies and
strategies, with an emphasis on those developing countries that are expected to
experience the most significant growth in energy production and use over the
next 20 years;
(B)
open and expand clean
energy technology markets and facilitate the export of clean energy technology
to developing countries, in a manner consistent with the subsidy codes of the
World Trade Organization;
(C)
integrate into the foreign
policy objectives of the United States the promotion of—
(i)
clean energy technology
deployment and reduced greenhouse gas emissions in developing countries;
and
(ii)
clean energy technology
exports;
(D)
establish a pilot program
that provides financial assistance for qualifying projects; and
(E)
develop financial
mechanisms and instruments (including securities that mitigate the political
and foreign exchange risks of uses that are consistent with the foreign policy
of the United States by combining the private sector market and government
enhancements) that—
(i)
are cost-effective;
and
(ii)
facilitate private capital
investment in clean energy technology projects in developing countries.
(2)
On receiving the Strategy
from the Task Force under paragraph (1), the President shall transmit to
Congress the Strategy.
(b)
(1)
Not later than 2 years
after the date of submission of the initial Strategy under subsection (a)(1),
and every 2 years thereafter—
(A)
the Task Force
shall—
(i)
review and update the
Strategy; and
(ii)
report the results of the
review and update to the President; and
(B)
the President shall submit
to Congress a report on the Strategy.
(2)
The report shall
include—
(A)
the updated
Strategy;
(B)
a description of the
assistance provided under this part;
(C)
the results of the pilot
projects carried out under this part, including a comparative analysis of the
relative merits of each pilot project;
(D)
the activities and progress
reported by developing countries to the Department under section 736(b)(2);
and
(E)
the activities and progress
reported towards meeting the goals established under section 736(b)(2).
(c)
In developing, updating,
and submitting a report on the Strategy, the Task Force shall—
(1)
assess—
(A)
energy trends, energy
needs, and potential energy resource bases in developing countries; and
(B)
the implications of the
trends and needs for domestic and global economic and security
interests;
(2)
analyze technology, policy,
and market opportunities for international development, demonstration, and
deployment of clean energy technologies and strategies;
(3)
examine relevant trade,
tax, finance, international, and other policy issues to assess what policies,
in the United States and in developing countries, would help open markets and
improve clean energy technology exports of the United States in support
of—
(A)
enhancing energy innovation
and cooperation, including energy sector and market reform, capacity building,
and financing measures;
(B)
improving energy end-use
efficiency technologies (including buildings and facilities) and vehicle,
industrial, and co-generation technology initiatives; and
(C)
promoting energy supply
technologies, including fossil, nuclear, and renewable technology
initiatives;
(4)
investigate issues
associated with building capacity to deploy clean energy technology in
developing countries, including—
(A)
energy-sector
reform;
(B)
creation of open,
transparent, and competitive markets for clean energy technologies;
(C)
the availability of trained
personnel to deploy and maintain clean energy technology; and
(D)
demonstration and
cost-buydown mechanisms to promote first adoption of clean energy
technology;
(5)
establish priorities for
promoting the diffusion and adoption of clean energy technologies and
strategies in developing countries, taking into account economic and security
interests of the United States and opportunities for the export of technology
of the United States;
(6)
identify the means of
integrating the priorities established under paragraph (5) into bilateral,
multilateral, and assistance activities and commitments of the United
States;
(7)
establish methodologies for
the measurement, monitoring, verification, and reporting under section
736(b)(2) of the greenhouse gas emission impacts of clean energy projects and
policies in developing countries;
(8)
establish a registry that
is accessible to the public through electronic means (including through the
Internet) in which information reported under section 736(b)(2) shall be
collected;
(9)
make recommendations to the
heads of appropriate Federal agencies on ways to streamline Federal programs
and policies to improve the role of the agencies in the international
development, demonstration, and deployment of clean energy technology;
(10)
make assessments and
recommendations regarding the distinct technological, market, regional, and
stakeholder challenges necessary to deploy clean energy technology;
(11)
recommend conditions and
criteria that will help ensure that funds provided by the United States promote
sound energy policies in developing countries while simultaneously opening
their markets and exporting clean energy technology of the United
States;
(12)
establish an advisory
committee, composed of representatives of the private sector and other
interested groups, on the export and deployment of clean energy
technology;
(13)
establish a coordinated
mechanism for disseminating information to the private sector and the public on
clean energy technologies and clean energy technology transfer opportunities;
and
(14)
monitor the progress of
each Federal agency in promoting the purposes of this part, in accordance
with—
(A)
the 5-year strategic plan
submitted to Congress in October 2002; and
(B)
other applicable
law.
734.
Clean energy assistance to developing countries
(a)
Subject to section 736, the
Secretary may provide assistance to developing countries for activities that
are consistent with the priorities established in the Strategy.
(b)
The assistance may be
provided through—
(1)
the Millennium Challenge
Corporation established under section 604(a) of the Millennium Challenge Act of
2003 (22 U.S.C. 7703(a));
(2)
the Global Village Energy
Partnership; and
(3)
other international
assistance programs or activities of—
(A)
the Department;
(B)
the United States Agency
for International Development; and
(C)
other Federal
agencies.
(c)
The activities supported
under this section include—
(1)
development of national
action plans and policies to—
(A)
facilitate the provision of
clean energy services and the adoption of energy efficiency measures;
(B)
identify linkages between
the use of clean energy technologies and the provision of agricultural,
transportation, water, health, educational, and other development-related
services; and
(C)
integrate the use of clean
energy technologies into national strategies for economic growth, poverty
reduction, and sustainable development;
(2)
strengthening of public and
private sector capacity to—
(A)
assess clean energy needs
and options;
(B)
identify opportunities to
reduce, avoid, or sequester greenhouse gas emissions;
(C)
establish enabling policy
frameworks;
(D)
develop and access
financing mechanisms; and
(E)
monitor progress in
implementing clean energy and greenhouse gas reduction strategies;
(3)
enactment and
implementation of market-favoring measures to promote commercial-based energy
service provision and to improve the governance, efficiency, and financial
performance of the energy sector; and
(4)
development and use of
innovative public and private mechanisms to catalyze and leverage financing for
clean energy technologies, including use of the development credit authority of
the United States Agency for International Development and credit enhancements
through the Export-Import Bank and the Overseas Private Investment
Corporation.
735.
Pilot program for demonstration projects
(a)
Not later than 2 years
after the date of enactment of this part, the Secretary, in consultation with
the Secretary of Energy and the Administrator of the United States Agency for
International Development, shall, by regulation, establish a pilot program that
provides financial assistance for qualifying projects consistent with the
Strategy and the performance criteria established under section 736.
(b)
To be qualified to receive
assistance under this section, a project shall—
(1)
be a project—
(A)
to construct an energy
production facility in a developing country for the production of energy to be
consumed in the developing country; or
(B)
to improve the efficiency
of energy use in a developing country;
(2)
be a project that—
(A)
is submitted by a firm of
the United States to the Secretary in accordance with procedures established by
the Secretary by regulation;
(B)
meets the requirements of
section 1608(k) of the Energy Policy Act of 1992 (42 U.S.C. 13387(k));
(C)
uses technology that has
been successfully developed or deployed in the United States; and
(D)
is selected by the
Secretary without regard to the developing country in which the project is
located, with notice of the selection published in the Federal Register;
and
(3)
when deployed, result in a
greenhouse gas emission reduction (when compared to the technology that would
otherwise be deployed) of at least—
(A)
in the case of a unit or
energy-efficiency measure placed in service during the period beginning on the
date of enactment of this part and ending on December 31, 2009, 20 percentage
points;
(B)
in the case of a unit or
energy-efficiency measure placed in service during the period beginning on
January 1, 2010, and ending on December 31, 2019, 40 percentage points;
and
(C)
in the case of a unit or
energy-efficiency measure placed in service after December 31, 2019, 60
percentage points.
(c)
(1)
For each qualifying project
selected by the Secretary to participate in the pilot program, the Secretary
shall make a loan or loan guarantee available for not more than 50 percent of
the total cost of the project.
(2)
The interest rate on a loan
made under this subsection shall be equal to the current average yield on
outstanding obligations of the United States with remaining periods of maturity
comparable to the maturity of the loan.
(3)
Host country contribution
To be eligible for a loan
or loan guarantee for a project in a host country under this subsection, the
host country shall—
(A)
make at least a 10 percent
contribution toward the total cost of the project; and
(B)
verify to the Secretary
(using the methodology established under section 733(c)(7)) the quantity of
annual greenhouse gas emissions reduced, avoided, or sequestered as a result of
the deployment of the project.
(4)
Capacity building research
(A)
A proposal made for a
qualifying project may include a research component intended to build
technological capacity within the host country.
(B)
To be eligible for a loan
or loan guarantee under this paragraph, the research shall—
(i)
be related to the
technology being deployed; and
(ii)
involve—
(I)
an institution in the host
country; and
(II)
a participant from the
United States that is an industrial entity, an institution of higher education,
or a National Laboratory.
(C)
Host country contribution
To be eligible for a loan
or loan guarantee for research in a host country under this paragraph, the host
country shall make at least a 50 percent contribution toward the total cost of
the research.
(5)
(A)
The Secretary, in
consultation with the Secretary of Energy and the Administrator of the United
States Agency for International Development, may, at the request of the United
States ambassador to a host country, make grants to help address and overcome
specific, urgent, and unforeseen obstacles in the implementation of a
qualifying project.
(B)
The total amount of a grant
made for a qualifying project under this paragraph may not exceed
$1,000,000.
736.
Performance criteria for major energy consumers
(a)
Identification of major energy consumers
Not later than 1 year after
the date of enactment of this part, the Task Force shall identify those
developing countries that, by virtue of present and projected energy
consumption, represent the predominant share of energy use among developing
countries.
(b)
As a condition of accepting
assistance provided under sections 734 and 735, any developing country
identified under subsection (a) shall—
(1)
meet the eligibility
criteria established under section 607 of the Millennium Challenge Act of 2003
(22 U.S.C. 7706), notwithstanding the eligibility of the developing country as
a candidate country under section 606 of that Act (22 U.S.C. 7705); and
(2)
agree to establish and
report on progress in meeting specific goals for reduced energy-related
greenhouse gas emissions and specific goals for—
(A)
increased access to clean
energy services among unserved and underserved populations;
(B)
increased use of renewable
energy resources;
(C)
increased use of lower
greenhouse gas-emitting fossil fuel-burning technologies;
(D)
more efficient production
and use of energy;
(E)
greater reliance on
advanced energy technologies;
(F)
the sustainable use of
traditional energy resources; or
(G)
other goals for improving
energy-related environmental performance, including the reduction or avoidance
of local air and water quality and solid waste contaminants.
737.
Authorization of appropriations
There are authorized to be
appropriated such sums as are necessary to carry out this part for each of
fiscal years 2006 through 2015.
.