International clean technology fund

(a)

In general

The Bretton Woods Agreements Act (22 U.S.C. 286–286oo) is amended by adding at the end the following:

64.

Clean technology fund

(a)

Contribution authority

(1)

In general

The Secretary of the Treasury may contribute on behalf of the United States $400,000,000 to a fund, as described in subsection (b) (in this section referred to as the Clean Technology Fund). (2)

Limitations on authorization of appropriations

For the contribution authorized by paragraph (1), there is authorized to be appropriated not more than $400,000,000 for fiscal year 2009. (b)

Requirements

The requirements of this subsection are as follows: (1)

Administration

The Clean Technology Fund is established and administered by the Bank. (2)

Purpose

The purpose of the Clean Technology Fund is to promote accelerated deployment in developing countries of technologies that will substantially reduce greenhouse gas emissions, by providing funds, primarily through multilateral development banks to promising projects in developing countries. (3)

Coordination with the United Nations Framework Convention on Climate Change

(A)

In general

The Clean Technology Fund is required to operate in a manner that is fully consistent and supportive of the United Nations Framework Convention on Climate Change (in this paragraph referred to as the UNFCCC). (B)

Termination of operations

The Bank is required to take necessary steps to conclude the operations of the Clean Technology Fund (including by not entering into new agreements for contributions to the Clean Technology Fund) on the commencement of operations of an international clean technology fund provided for by the UNFCCC, unless the outcome of the UNFCCC negotiations indicates otherwise. (4)

Authority to hold undisbursed funds in interest-bearing accounts

Pending disbursement from the Clean Technology Fund of amounts provided under this section, the Bank has the authority to hold the amounts in interest-bearing accounts of the Clean Technology Fund. (5)

Limits on country access

(A)

Distribution of fund resources

The Clean Technology Fund is prohibited from providing more than approximately 15 percent of Fund resources to any 1 country. (B)

Country eligibility

In order for a country to be eligible for support from the Clean Technology Fund, the country must— (i)submit to the governing body of the Clean Technology Fund an investment plan that will achieve substantial reductions in national-level greenhouse gas emissions; and (ii)in the case of a country classified by the Bank as lower middle income or above, based on gross national income per capita, contribute, from public funds, an amount equal to 25 percent of the cost of any project for which the country seeks assistance from the Clean Technology Fund— (I)to the project; or (II)to the Clean Technology Fund. (6)

Project and program requirements

(A)

In general

Support from the Clean Technology Fund is required to be used to cover the incremental costs of deploying clean energy technologies that result in substantial and additional reductions from baseline greenhouse gas emissions to the atmosphere. (B)

Selection criteria

Support from the Clean Technology Fund is required to be allocated with the principal objectives of— (i)deploying zero carbon clean energy technologies, such as electricity generation from renewable sources; (ii)maximizing additional reductions of greenhouse emissions per dollar of support provided; (iii)catalyzing a shift within the host country towards widespread commercial deployment of clean energy technologies; and (iv)prioritizing clean technology investments to proven privately-owned enterprises, preferably small and medium-sized enterprises. (C)

Limitations on coal-related projects

The Clean Technology Fund is prohibited from providing support for any new coal-fired electricity generation facility unless— (i)the facility utilizes— (I)integrated gasification combined cycle or ultrasupercritical technology; or (II)another new technology (but not subcritical or supercritical technology) with an efficiency rating equal to or greater than the efficiency rating of the technologies referred to in subclause (I); (ii)the facility would not use the technology so utilized in the absence of support from the Clean Technology Fund; and (iii)the facility is specifically designed to accommodate retrofitting with carbon capture and storage technology when the technology becomes ready for commercial deployment. (D)

Definitions

For purposes of this paragraph: (i)

Additional

The term additional means the extent to which reductions in greenhouse gas emissions are incremental to business-as-usual, measured as the difference between— (I)the baseline; and (II)net lifecycle greenhouse gas emissions resulting from a project or program, including, where practicable, effects beyond the physical boundaries of the project but associated with the project activity. (ii)

Baseline

The term baseline means the greenhouse gas emissions that would have occurred in the absence of a project or program. (iii)

Clean energy technology

The term clean energy technology means an energy supply technology or an end-use energy efficiency technology that, as compared with technologies being deployed at that time for widespread commercial use in the country involved— (I)achieves substantial reductions in lifecycle emissions of greenhouse gases, calculated on an appropriate per unit basis; and (II)does not result in significant incremental adverse effects on public health or the environment. (iv)

Greenhouse gas

The term greenhouse gas means any of— (I)carbon dioxide; (II)methane; (III)nitrous oxide; (IV)sulfur hexafluoride; (V)a hydrofluorocarbon; or (VI)a perfluorocarbon. (7)

Transparency

The Bank and the governing body of the Clean Technology Fund shall provide for maximum transparency in all aspects of the governance of the Clean Technology Fund, including— (A)providing for broad-based input of stakeholders in the strategic directions, results, and impacts of the Clean Technology Fund, including through meetings of interested governments, multilateral development banks, United Nations agencies, the Global Environment Facility, other multilateral and bilateral climate programs, nongovernmental organizations, private sector entities and scientific and technical experts; (B)in the case of the governing body, engaging in an active dialogue with representatives of institutions with a mandate to promote investments in clean technology to address climate change, including by extending invitations of the institutions to attend meetings of the governing body as observers; and (C)in the case of the Bank, maintaining a clearly identified web site that includes all public information or links to information regarding the policies of the Clean Technology Fund, projects and programs supported by the Clean Technology Fund, minutes of the Trust Fund Committee meetings, annual reports of the Clean Technology Fund and other result measurement documents. (c)

United States votes on fund proposals and United States policy on environmental assessments

The Secretary of the Treasury shall— (1)direct the United States representative in the entity that oversees the operations and activities of the Clean Technology Fund to use the voice and vote of the United States to oppose any proposal (including any loan, credit, grant, or guarantee) which would result in the Clean Technology Fund failing to meet the requirements of subsection (b)(3), (b)(5), (b)(6), or (b)(7) of this section; and (2)encourage all the multilateral development banks to apply environmental assessment procedures similar to those described in section 1307 of the International Financial Institutions Act (22 U.S.C. 262m–7) in their consideration and implementation of Clean Technology Fund proposals. (d)

Coordination with the International Clean Energy Foundation

The Secretary of the Treasury shall seek to ensure that the duties and activities of the Clean Technology Fund are complementary to the duties and activities of the International Clean Energy Foundation as established by section 922 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17352).

(b)

Report to the Congress

Within 180 days after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury shall submit to the Congress a report on the operations of any fund to which amounts made available under section 64 of the Bretton Woods Agreements Act are provided, including a description of— (1)any projects for which amounts have been disbursed from the fund; (2)the effects expected by the Secretary of each such project (or, in the case of a project which has been implemented, the effects of the project) on the overall greenhouse gas emissions from the country in which the project is being carried out; (3)the criteria and methodology used to determine the eligibility of proposed projects for funding from the fund; (4)the progress made in commencing operations of the fund, including any remaining obstacles to the operations; and (5)any project for which amounts have been disbursed from the fund which support coal or coal-related technologies, and a justification for support for the project from the fund, including a description of— (A)the transformational nature of the project; (B)how the project is consistent with the national low carbon strategy of the country involved; (C)the degree to which the project reduced greenhouse gas emissions; and (D)the degree to which the technology was a higher-cost technology relative to other available technologies. (c)

Sense of the Congress

It is the sense of the Congress that small and medium-sized enterprises— (1)are an important source of technological innovation and economic development globally; (2)can and should play an important role in the dissemination and implementation of innovative clean technologies in developing countries; and (3)should be supported through any fund referred to in subsection (b).

Expansion of climate change mitigation activities of, and use of greenhouse gas accounting by, the multilateral development banks

Title XIII of the International Financial Institutions Act (22 U.S.C. 26m—262m–7) is amended by adding at the end the following:

1308.

Expansion of climate change mitigation activities of, and use of greenhouse gas accounting by, the multilateral development banks

(a)

Use of greenhouse gas accounting

The Secretary of the Treasury shall seek to ensure that each multilateral development bank (as defined in section 1701(c)(4)) adopts and implements greenhouse gas (GHG) accounting in analyzing the benefits and costs of individual projects (excluding those with de minimus greenhouse gas emissions) for which funding is sought from the bank. (b)

Sense of the Congress

It is the sense of the Congress that adopting and implementing GHG accounting includes— (1)calculating net GHG flows; (2)establishing uniform calculation techniques, with provision for modification as professional standards evolve; (3)making public the calculation techniques and the calculations; (4)measuring GHG emissions of individual projects, and considering global social costs of the emissions when evaluating the economic costs and benefits of the projects; and (5)performing GHG accounting for each project. (c)

Expansion of climate change mitigation activities

The Secretary of the Treasury shall work to ensure that the multilateral development banks (as defined in section 1701(c)(4) of the International Financial Institutions Act) expand their activities supporting climate change mitigation by— (1)expending support for energy efficiency and renewable energy investments; (2)reviewing all proposed infrastructure investments to ensure all opportunities for integrating viable energy efficiency measures have been considered; and (3)increasing their dialogue with developing country governments on analysis and policy measures needed for low-carbon-emission economic development, including on reforms needed to promote private sector engagement in renewable and energy efficiency investments, and integrate low-carbon-emission economic development objectives into multilateral development bank country strategies. (d)

Report to Congress

Within 1 year after the date of the enactment of this section, and annually thereafter, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a report on the status of efforts to implement this section.