[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2349 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2349

    To reauthorize the programs of the Overseas Private Investment 
                  Corporation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 14, 2007

  Mr. Reid (for Mr. Biden (for himself and Mr. Lugar)) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Foreign Relations

_______________________________________________________________________

                                 A BILL


 
    To reauthorize the programs of the Overseas Private Investment 
                  Corporation, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Overseas Private Investment 
Corporation Reauthorization Act of 2007''.

SEC. 2. REAUTHORIZATION OF OPIC PROGRAMS.

    Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(2)) is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2011''.

SEC. 3. REQUIREMENTS REGARDING INTERNATIONAL WORKER RIGHTS.

    (a) Country Requirements.--Subsection (a) of section 231A of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2191a(a)) is amended--
            (1) by amending the subsection heading to read as follows: 
        ``International Worker Rights'';
            (2) in paragraph (4), by striking ``(4) In'' and inserting 
        ``(4) Additional determination.--In''; and
            (3) by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) Limitation on opic activities.--
                    ``(A) In general.--The Corporation may insure, 
                reinsure, guarantee, or finance a project only if the 
                country in which the project is to be undertaken is 
                taking steps to adopt and implement laws that extend 
                international worker rights to workers in that country, 
                including in any designated zone, or special 
                administrative region or area, in that country.
                    ``(B) Contract language.--The Corporation shall 
                also include the following language, in substantially 
                the following form, in all contracts which the 
                Corporation enters into with eligible investors to 
                provide financial support under this title: `The 
                investor agrees not to take any actions to obstruct or 
                prevent employees of the foreign enterprise from 
                exercising their international worker rights (as 
                defined in section 238(h) of the Foreign Assistance Act 
                of 1961), and agrees to adhere to the obligations 
                regarding those international worker rights. The 
                investor agrees to the elimination of discrimination 
                with respect to employment and occupation.'.
            ``(2) Preference to certain countries.--To the extent 
        practicable and consistent with its development objectives, the 
        Corporation shall give preferential consideration to projects 
        in countries that have adopted, maintained, and enforced laws 
        that substantially provide international worker rights, as well 
        as the elimination of discrimination with respect to employment 
        and occupation.
            ``(3) Use of annual reports on international worker 
        rights.--The Corporation shall, in carrying out paragraph 
        (1)(A), use, among other sources, the reports submitted to the 
        Congress pursuant to section 504 of the Trade Act of 1974 (19 
        U.S.C. 2464). The Corporation should also consider other 
        relevant sources, including the observations, reports, and 
        recommendations of the International Labour Organization.''.
    (b) Definitions.--Section 238 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2198) is amended--
            (1) in subsection (f), by striking ``and'' after the 
        semicolon;
            (2) in subsection (g), by striking the period at the end 
        and inserting ``;''; and
            (3) by adding at the end the following:
    ``(h) the term `international worker rights' means internationally 
recognized worker rights, as defined in section 507(4) of the Trade Act 
of 1974 (19 U.S.C. 2467(4)); and
    ``(i) the terms `Category A project' and `Category A extractive 
industry project' mean any project or other activity for which the 
Corporation proposes to provide insurance, reinsurance, financing, or 
other support under this title and which is likely to have a 
significant adverse environmental impact.''.
    (c) General Provisions and Powers.--Section 239 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2199) is amended--
            (1) in subsection (h), by adding at the end the following: 
        ``The Corporation shall also consult with relevant stakeholders 
        in developing such criteria.''; and
            (2) in subsection (i), in the first sentence, by inserting 
        ``(including international worker rights and the elimination of 
        discrimination with respect to employment and occupation)'' 
        after ``fundamental freedoms'' each place it appears.

SEC. 4. ENVIRONMENTAL ASSESSMENTS.

    Section 231A(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191a(b)) is amended to read as follows:
    ``(b) Environmental Impact.--The Board of Directors of the 
Corporation shall not vote in favor of any action proposed to be taken 
by the Corporation that is likely to have significant adverse 
environmental impacts, unless for at least 60 days before the date of 
the vote--
            ``(1) an environmental impact assessment, or initial 
        environmental audit, analyzing the environmental impacts of the 
        proposed action and of alternatives to the proposed action has 
        been completed by the project applicant and made available to 
        the Board of Directors; and
            ``(2) such assessment or audit has been made available to 
        the public of the United States, locally affected groups in the 
        host country, and nongovernmental organizations in the host 
        country.''.

SEC. 5. COMMUNITY SUPPORT.

    Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197) 
is amended by adding at the end the following new subsection:
    ``(p) Community Support.--To the maximum extent practicable, the 
Corporation shall require the applicant for a project that is subject 
to the requirements of section 231A(b) to obtain broad community 
support for the project.''.

SEC. 6. CLIMATE CHANGE MITIGATION ACTION PLAN.

    Title IV of chapter 2 of part I of the Foreign Assistance Act of 
1961 (22 U.S.C. 2291 et seq.) is amended by inserting after section 
234A the following new section:

``SEC. 234B. CLIMATE CHANGE MITIGATION.

    ``(a) Mitigation Action Plan.--The Corporation shall, not later 
than 180 days after the date of the enactment of the Overseas Private 
Investment Corporation Reauthorization Act of 2007, institute a climate 
change mitigation action plan that includes the following:
            ``(1) Clean technology.--
                    ``(A) Increasing assistance.--The Corporation shall 
                establish a goal of substantially increasing its 
                support of projects that use, develop, or otherwise 
                promote the use of clean energy technologies over the 
                10-year period beginning on the date of the enactment 
                of the Overseas Private Investment Corporation 
                Reauthorization Act of 2007.
                    ``(B) Preferential treatment to projects.--The 
                Corporation shall give preferential treatment to the 
                evaluation and awarding of assistance for and provide 
                greater flexibility in supporting projects that use, 
                develop, or otherwise promote the use of clean energy 
                technologies.
            ``(2) Environmental impact assessments.--
                    ``(A) Greenhouse gas emissions.--The Corporation 
                shall, in making an environmental impact assessment for 
                a project under section 231A(b), take into account the 
                degree to which the project contributes to the emission 
                of greenhouse gases.
                    ``(B) Other duties not affected.--The requirement 
                under subparagraph (A) is in addition to any other 
                requirement, obligation, or duty of the Corporation.
            ``(3) Goals for reducing greenhouse gas emissions.--
                    ``(A) In general.--The Corporation shall continue 
                to maintain--
                            ``(i) a goal for reducing direct greenhouse 
                        gas emissions associated with projects in the 
                        Corporation's portfolio on the date of the 
                        enactment of the Overseas Private Investment 
                        Corporation Reauthorization Act of 2007 by 20 
                        percent over a 10-year period; and
                            ``(ii) a goal for limiting annual 
                        investments in projects that have significant 
                        greenhouse gas emissions after such date of 
                        enactment in a manner that reduces greenhouse 
                        gas emissions associated with projects in the 
                        Corporation's total portfolio by 20 percent 
                        over a 10-year period.
                    ``(B) Special rules.--
                            ``(i) Baseline.--For purposes of 
                        determining the percentage that greenhouse gas 
                        emissions are reduced under subparagraph (A), 
                        the Corporation shall use the aggregate 
                        estimated greenhouse gas emissions for projects 
                        in the Corporation's portfolio.
                            ``(ii) Significant greenhouse gas emissions 
                        projects.--For purposes of this paragraph, 
                        projects that have significant greenhouse gas 
                        emissions are projects that result in the 
                        emission of more than 100,000 tons of 
                        CO<INF>2</INF> equivalent each year.
                    ``(C) Reporting requirements.--The Corporation 
                shall include, in each annual report under section 
                240A, the following information with respect to the 
                period covered by the report:
                            ``(i) The annual greenhouse gas emissions 
                        attributable to each project in the 
                        Corporation's active portfolio that has 
                        significant greenhouse gas emissions.
                            ``(ii) The estimated greenhouse gas 
                        emissions for each new project for which the 
                        Corporation provided insurance financing, or 
                        reinsurance that has significant greenhouse gas 
                        emissions since the last report.
                            ``(iii) The extent to which the Corporation 
                        is meeting the goals described in subparagraph 
                        (A) for reducing greenhouse gas emissions.
                            ``(iv) Each new project for which the 
                        Corporation provided insurance, financing, or 
                        reinsurance that involves renewable energy and 
                        environmentally beneficial products and 
                        services, including increased energy 
                        efficiency.
            ``(4) Report to congressional committees.--The Corporation 
        shall, not later than 180 days after the date of the enactment 
        of the Overseas Private Investment Corporation Reauthorization 
        Act of 2007, submit to the Committees on Foreign Relations and 
        Appropriations of the Senate and the Committees on Foreign 
        Affairs and Appropriations of the House of Representatives a 
        report on the plan developed to carry out paragraph (1)(A). 
        Thereafter, the Corporation shall include in its annual report 
        under section 240A a discussion of such plan and its 
        implementation.
    ``(b) Extraction Investments.--
            ``(1) Prior notification to congressional committees.--The 
        Corporation shall provide notice of consideration to the 
        Committees on Foreign Relations and Appropriations of the 
        Senate and the Committees on Foreign Affairs and Appropriations 
        of the House of Representatives at least 60 days before 
        approval of a Category A extractive industry project (as 
        defined in section 238(i)) or any extractive industry project 
        in which assistance by the Corporation would be valued at 
        $10,000,000 or more (including contingent liability). Nothing 
        in this subsection shall affect the limitations and 
        prohibitions with respect to direct investments described in 
        section 234(c).
            ``(2) Commitment to eiti principles.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Corporation may approve a 
                contract of insurance or reinsurance, or any guaranty, 
                or enter into an agreement to provide financing to an 
                eligible investor for a project that significantly 
                involves an extractive industry only if--
                            ``(i) the eligible investor has agreed to 
                        implement the Extractive Industries 
                        Transparency Initiative principles and 
                        criteria, or substantially similar principles 
                        and criteria related to the specific project to 
                        be carried out; and
                            ``(ii)(I) the host country where the 
                        project is to be carried out has committed to 
                        the Extractive Industries Transparency 
                        Initiative principles and criteria, or 
                        substantially similar principles and criteria; 
                        or
                            ``(II) the host country where the project 
                        is to be carried out has in place or is taking 
                        the necessary steps to establish functioning 
                        systems for--
                                    ``(aa) accurately accounting for 
                                revenues and expenditures in connection 
                                with the extraction and export of the 
                                type of natural resource to be 
                                extracted or exported;
                                    ``(bb) the independent audit of 
                                such revenues and expenditures and the 
                                widespread public dissemination of the 
                                audit; and
                                    ``(cc) verifying government 
                                receipts against company payments, 
                                including widespread dissemination of 
                                such payment information, and 
                                disclosing such documents as Host 
                                Government Agreements, Concession 
                                Agreements, and bidding documents, 
                                allowing in any such dissemination or 
                                disclosure for the redaction of, or 
                                exceptions for, information that is 
                                commercially proprietary or that would 
                                create competitive disadvantage.
                    ``(B) Exception.--If the host country does not meet 
                the requirements of subparagraph (A)(ii) (I) or (II), 
                the Corporation may approve a contract of insurance or 
                reinsurance, or any guaranty, or enter into an 
                agreement to provide financing if the Corporation 
                determines it is in the foreign policy interest of the 
                United States for the Corporation to support the 
                project in the host country and the host country does 
                not prevent an eligible investor from complying with 
                this paragraph.
            ``(3) Preference for certain projects.--With respect to all 
        projects that significantly involve an extractive industry, the 
        Corporation, to the extent practicable and consistent with the 
        Corporation's development objectives, shall give preference to 
        a project in which both the eligible investor has agreed to 
        implement the Extractive Industries Transparency Initiative 
        principles and criteria, or substantially similar principles 
        and criteria, and the host country where the project is to be 
        carried out has committed to the Extractive Industries 
        Transparency Initiative principles and criteria, or 
        substantially similar principles and criteria.
            ``(4) Reporting requirement.--The Corporation shall include 
        in its annual report required under section 240A a description 
        of its activities to carry out this subsection.
    ``(c) Definitions.--In this section:
            ``(1) Clean technology.--The term `clean energy technology' 
        means an energy supply or end-use technology--
                    ``(A) such as--
                            ``(i) solar technology;
                            ``(ii) wind technology;
                            ``(iii) geothermal technology;
                            ``(iv) hydroelectric technology;
                            ``(v) biomass technology; and
                            ``(vi) carbon capture and storage 
                        technology; and
                    ``(B) that, over its life cycle and compared to a 
                similar technology already in commercial use--
                            ``(i) results in--
                                    ``(I) reduced emissions of 
                                greenhouse gases;
                                    ``(II) increased geological 
                                sequestration of greenhouse gases;
                                    ``(III) decreases energy intensity 
                                of operation; or
                                    ``(IV) reduces fossil fuel 
                                consumption; and
                            ``(ii) may--
                                    ``(I) substantially lower emissions 
                                of air pollutants; or
                                    ``(II) generate substantially 
                                smaller and less hazardous quantities 
                                of solid or liquid waste.
            ``(2) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; or
                    ``(F) sulfur hexafluoride.
            ``(3) Extractive industry.--The term `extractive industry' 
        refers to an enterprise engaged in the exploration, 
        development, or extraction of oil and gas reserves, metal ores, 
        gemstones, industrial minerals (except rock used for 
        construction purposes), or coal.''.

SEC. 7. INCREASED TRANSPARENCY.

    (a) In General.--Section 237 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197), as amended by section 5, is amended by adding at the 
end the following new subsections:
    ``(q) Availability of Project Information.--Beginning 90 days after 
the date of the enactment of the Overseas Private Investment 
Corporation Reauthorization Act of 2007, the Corporation shall make 
public, and post on its Internet website, summaries of all new projects 
supported by the Corporation, and other relevant information, except 
that the Corporation shall not include any confidential business 
information in the summaries and information made available under this 
subsection.
    ``(r) Review of Methodology.--Not later than 180 days after the 
date of the enactment of the Overseas Private Investment Corporation 
Reauthorization Act of 2007, the Corporation shall make available to 
the public the methodology, including relevant regulations, used to 
assess and monitor the impact of projects supported by the Corporation 
on--
            ``(1) the development of host countries;
            ``(2) the environment of host countries;
            ``(3) international worker rights (as well as the 
        elimination of discrimination with respect to employment and 
        occupation) in host countries; and
            ``(4) United States employment.
    ``(s) Public Notice Prior to Project Approval.--
            ``(1) Public notice.--The Board of Directors of the 
        Corporation may not vote in favor of any action proposed to be 
        taken by the Corporation on any Category A project until at 
        least 60 days after the Corporation--
                    ``(A) makes available for public comment a summary 
                of the project and relevant information about the 
                project; and
                    ``(B) makes the summary and information described 
                in subparagraph (A) available to locally affected 
                groups in the area of impact of the proposed project, 
                and to host country nongovernmental organizations.
            ``(2) Limitations on disclosure.--The Corporation shall not 
        include any business confidential information in the summary 
        and information made available under of paragraph (1).
            ``(3) Published response.--To the extent practicable, the 
        Corporation shall publish responses to the comments received 
        under paragraph (1) and submit the responses to the Board not 
        later than 7 days before a vote is to be taken on any action 
        proposed by the Corporation on the project.''.
    (b) Office of Accountability.--Section 237 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2197), as amended by subsection (a), 
is amended by adding at the end the following new subsection:
    ``(t) Office of Accountability.--The Corporation shall maintain an 
Office to provide, upon request, problem-solving services for projects 
supported by the Corporation and, to the maximum extent practicable, 
review the Corporation's compliance with policies relating to the 
environment, extractive industries, transparency, human rights, social 
standards, international worker rights, and the elimination of 
discrimination with respect to employment and occupation. The Office 
shall operate in a manner that is fair, objective, and transparent.''.

SEC. 8. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ.

    Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) 
is amended by adding at the end the following:
    ``(l) Operations in Iraq.--Notwithstanding subsections (a) and (b) 
of section 237, the Corporation is authorized to undertake in Iraq any 
program authorized by this title.''.

SEC. 9. LOW-INCOME HOUSING.

    Not later than 1 year after the date of the enactment of this Act, 
the Corporation shall submit a report to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives, in consultation with appropriate departments, 
agencies, and instrumentalities of the United States, as well as 
private entities, on the feasibility of broadening the assistance the 
Corporation provides to projects that provide assistance to low-income 
home buyers. If the Corporation finds such assistance is feasible, the 
Corporation shall identify and begin to implement steps to proceed to 
provide such assistance.

SEC. 10. ASSISTANCE FOR SMALL BUSINESSES AND ENTITIES.

    Section 240 of the Foreign Assistance Act of 1961 (22 U.S.C. 2200) 
is amended by adding at the end the following:
    ``(c) Resources Dedicated to Small Businesses, Cooperatives, and 
Other Small United States Investors.--The Corporation shall ensure that 
adequate personnel and resources, including senior officers, are 
dedicated to assist United States small businesses, cooperatives, and 
other small United States investors in obtaining insurance, 
reinsurance, financing, and other support under this title. The 
Corporation shall include, in each annual report under section 240A, 
the following information with respect to the period covered by the 
report:
            ``(1) A description of such personnel and resources.
            ``(2) The number of small businesses, cooperatives, and 
        other small United States investors that received such 
        insurance, reinsurance, financing, and other support, and the 
        dollar value of such insurance, reinsurance, financing, and 
        other support.
            ``(3) A description of the projects for which such 
        insurance, reinsurance, financing, and other support was 
        provided.''.

SEC. 11. TECHNICAL CORRECTIONS.

    (a) Pilot Equity Finance Program.--Section 234 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194) is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
    (b) Transfer Authority.--Section 235 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2195) is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).
    (c) Guaranty Contract.--Section 237(j) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2197(j)) is amended by inserting ``insurance, 
reinsurance, and'' after ``Each''.
    (d) Transfer of Predecessor Programs and Authorities.--
            (1) Transfer.--Section 239 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2199), as amended by section 3, is amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) through (l) as 
                subsections (b) through (k), respectively.
            (2) Conforming amendments.--
                    (A) Section 237(m)(1) of the Foreign Assistance Act 
                of 1961 (22 U.S.C. 2197(m)(1)) is amended by striking 
                ``239(g)'' and inserting ``239(f)''.
                    (B) Section 240A(a) of the Foreign Assistance Act 
                of 1961 (22 U.S.C. 2200A(a)) is amended--
                            (i) in paragraph (1), by striking 
                        ``239(h)'' and inserting ``239(g)''; and
                            (ii) in paragraph (2)(A), by striking 
                        ``239(i)'' and inserting ``239(h)''.
                    (C) Section 209(e)(16) of the Admiral James W. 
                Nance and Meg Donovan Foreign Relations Authorization 
                Act, Fiscal Years 2000 and 2001 (as enacted into law by 
                section 1000(a)(7) of Public Law 106-113; 31 U.S.C. 
                1113 note) is amended by striking ``239(c)'' and 
                ``2199(c)'' and inserting ``239(b)'' and ``2199(b)'', 
                respectively.
    (e) Additional Clerical Amendments.--Section 234(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194(b)) is amended by striking 
``235(a)(2)'' and inserting ``235(a)(1)''.
                                 <all>