[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2508 Reported in Senate (RS)]

                                                       Calendar No. 489
113th CONGRESS
  2d Session
                                S. 2508

                          [Report No. 113-219]

To establish a comprehensive United States Government policy to assist 
     countries in sub-Saharan Africa to improve access to and the 
affordability, reliability, and sustainability of power, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 19, 2014

  Mr. Menendez (for himself, Mr. Corker, Mr. Coons, Mr. Isakson, Mr. 
Markey, Mr. Johanns, Mr. Cardin, Mrs. Shaheen, Mr. Franken, Mr. Durbin, 
   Ms. Klobuchar, Mr. Graham, Mr. Blunt, Ms. Stabenow, Mr. Udall of 
 Colorado, and Ms. Cantwell) introduced the following bill; which was 
     read twice and referred to the Committee on Foreign Relations

                             July 24, 2014

Reported by Mr. Menendez, with amendments and an amendment to the title
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
To establish a comprehensive United States Government policy to assist 
     countries in sub-Saharan Africa to improve access to and the 
affordability, reliability, and sustainability of power, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energize Africa 
Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
   TITLE I--POLICIES TO IMPROVE ACCESS TO POWER IN SUB-SAHARAN AFRICA

Sec. 101. Purpose.
Sec. 102. Statement of policy.
Sec. 103. Development of comprehensive, multiyear strategy.
Sec. 104. Sense of Congress on priorities with respect the energy 
                            sector of sub-Saharan African countries.
Sec. 105. Prioritization of assistance for power projects in sub-
                            Saharan Africa by the United States Agency 
                            for International Development.
Sec. 106. Prioritization of assistance for power projects in sub-
                            Saharan Africa by the Trade and Development 
                            Agency.
Sec. 107. Prioritization of assistance for power projects in sub-
                            Saharan Africa by the Overseas Private 
                            Investment Corporation.
Sec. 108. Prioritization of assistance for power projects in sub-
                            Saharan Africa by the World Bank Group and 
                            the African Development Bank.
Sec. 109. Prioritization of assistance for power projects in sub-
                            Saharan Africa by the United States African 
                            Development Foundation.
Sec. 110. Prioritization of assistance for power projects in sub-
                            Saharan Africa by the Millennium Challenge 
                            Corporation.
Sec. <DELETED>110</DELETED>111. Progress report.
           TITLE II--OVERSEAS PRIVATE INVESTMENT CORPORATION

Sec. 201. Extension of issuing authority.
Sec. 202. Expedited procedures for financing of small projects related 
                            to power generation and distribution in 
                            sub-Saharan Africa.
Sec. 203. Activities in sub-Saharan Africa; investment advisory 
                            council.
Sec. 204. Pilot program for expansion of eligible investors.
Sec. 205. Pilot program for direct investment and local currency 
                            guaranties for power projects in sub-
                            Saharan Africa.
Sec. 206. Extension of maximum term of obligation for renewable energy 
                            projects in sub-Saharan Africa.
Sec. 207. Inspector General.
Sec. 208. Assessment of customer satisfaction.
Sec. 209. Schedule B hiring authority.
Sec. 210. Sense of Congress on funding.
Sec. 211. Report on equity authority.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) As of 2010, approximately 589,000,000 people in sub-
        Saharan Africa, or 68 percent of the population, did not have 
        access to power.
            (2) Lack of access to power services disproportionally 
        affects women, who often shoulder the burden of seeking sources 
        of heat and light such as dung, wood, or charcoal and are often 
        more exposed to the associated negative health effects.
            (3) Women and girls also face increased risks of assault 
        from walking long distances to gather fuel sources.
            (4) Access to power creates opportunities for people to 
        work their way out of poverty, including through 
        entrepreneurship.
            (5) A lack of power contributes to the high use of 
        inefficient and often highly polluting fuel sources for indoor 
        cooking, heating, and lighting that produce toxic fumes 
        resulting in more than 3,000,000 annual premature deaths from 
        respiratory disease.
            (6) Reliable access to power is crucial for the storage of 
        vaccines and antiretroviral and other lifesaving medical drugs, 
        as well as for the operation of modern lifesaving medical 
        equipment.
            (7) Access to power can be used to improve food security by 
        enabling post-harvest processing, pumping, irrigation, dry 
        grain storage, milling, and refrigeration, and for other uses.
            (8) Access to power can provide improved information and 
        communication technologies that can greatly improve health and 
        education outcomes as well as economic and commercial 
        opportunities.
            (9) For the majority of people with access to power in sub-
        Saharan Africa, power services are highly unreliable and remain 
        at least twice as expensive compared to other emerging regions.
            (10) According to Enterprise Surveys of the World Bank, 
        power cuts in sub-Saharan Africa cost companies more than 10 
        percent of sales in certain countries.
            (11) The consumer base in sub-Saharan Africa of 
        approximately 1,000,000,000 people is rapidly growing and will 
        create increasing demand for United States goods, services, and 
        technologies, but the current power deficit in sub-Saharan 
        Africa limits that growth in demand by restricting economic 
        growth on the continent of Africa.
            (12) Approximately 30 countries in sub-Saharan Africa face 
        endemic power shortages, and nearly 70 percent of surveyed 
        businesses in sub-Saharan Africa cite unreliable power as a 
        major constraint to growth.
            (13) The work of the Millennium Challenge Corporation in 
        the energy sector shows high projected economic rates of 
        returns that translate to sustainable economic growth and the 
        highest returns are projected when infrastructure improvements 
        are coupled with significant legislative, policy, and 
        regulatory reforms and institutional strengthening.
            (14) Sub-Saharan Africa has abundant renewable and fossil 
        fuel resources with which to generate power.
            (15) In some countries in sub-Saharan Africa, weak 
        governance capacity, undue regulatory barriers, and unnecessary 
        legal constraints, as well as a lack of transparency and 
        accountability, stifle the ability of public and private 
        investment to assist in the generation and distribution of 
        power.
            (16) Without new policies and more effective public and 
        private investments in power sector enterprises to increase and 
        expand access to power in sub-Saharan Africa, more than 70 
        percent of the rural population, and 48 percent of the total 
        population, are likely to remain without access to power 
        through at least 2030.
            (17) Consumers in sub-Saharan Africa spend billions of 
        dollars annually on kerosene and other fuels for household 
        needs, which can, for poor families, represent more than 15 
        percent of household income and can expose residents to 
        significant fire and toxicity risks.
            (18) Kerosene lamps used in homes can cause fires and 
        severe burn injuries and expose users to hazardous air 
        pollutants in close quarters, and switching from fuel-based 
        lighting to cheaper, cleaner systems would provide higher 
        quality light with no negative health effects while achieving 
        significant economic savings.
            (19) New technological advances in power generation coupled 
        with more efficient appliances are resulting in robust, 
        affordable, and non-polluting off-grid power solutions and 
        entrepreneurs are developing new business models allowing off-
        grid households to finance systems over time, resulting in a 
        rapidly growing off-grid power market.

   TITLE I--POLICIES TO IMPROVE ACCESS TO POWER IN SUB-SAHARAN AFRICA

SEC. 101. PURPOSE.

    The purpose of this title is to <DELETED>assist</DELETED> encourage 
the efforts of countries in sub-Saharan Africa to improve access to 
affordable and reliable power in order to unlock the potential for 
economic growth and promote development, job creation, food security, 
improved health, educational, and environmental outcomes, and reduce 
poverty.

SEC. 102. STATEMENT OF POLICY.

    Congress declares that it is the policy of the United States to 
partner, consult, and coordinate with the governments of sub-Saharan 
African countries, international financial institutions, African 
regional economic communities, and the private sector, in a concerted 
effort to--
            (1) promote first-time access to power and power services 
        for at least 50,000,000 people in sub-Saharan Africa by 2020 in 
        both urban and rural areas;
            (2) encourage the installation of at least 20,000 
        additional megawatts of electrical power in sub-Saharan Africa 
        by 2020 using a broad mix of energy options to help reduce 
        poverty, promote sustainable development, and drive economic 
        growth;
            (3) promote reliable, affordable, and sustainable power in 
        urban areas (including small urban areas) to promote economic 
        growth and job creation;
            (4) promote efficient institutional platforms and financing 
        to provide electrical service to rural and underserved 
        populations;
            (5) encourage the necessary in-country reforms to make such 
        expansion of power access possible;
            (6) promote reforms of power production, delivery, and 
        pricing, as well as regulatory reforms and transparency, to 
        support long-term, market-based power generation and 
        distribution; <DELETED>and
        </DELETED>    (7) promote policies to displace kerosene 
        lighting with other technologies<DELETED>.</DELETED>; and
            (8) promote an all-of-the-above energy development strategy 
        for sub-Saharan Africa that includes the use of oil, natural 
        gas, coal, hydroelectric, wind, solar, and geothermal power, 
        and other sources of energy.

SEC. 103. DEVELOPMENT OF COMPREHENSIVE, MULTIYEAR STRATEGY.

    (a) Strategy Required.--
            (1) In general.--The President shall establish a 
        comprehensive, integrated, multiyear strategy to 
        <DELETED>assist</DELETED>  encourage the efforts of countries 
        in sub-Saharan Africa to implement national power strategies 
        and develop an appropriate mix of power solutions, including 
        renewable energy, to provide access to sufficient reliable, 
        affordable, and sustainable power in order to reduce poverty 
        and drive economic growth and job creation.
            (2) Flexibility and responsiveness.--The President shall 
        ensure that the strategy required by paragraph (1) maintains 
        sufficient flexibility for and remains responsive to 
        technological innovation in the power sector.
    (b) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the Committee on 
Foreign Relations of the Senate and the Committee on Foreign Affairs of 
the House of Representatives a report that contains the strategy 
required by subsection (a) and includes a discussion of the following 
elements:
            (1) The general and specific objectives of the strategy.
            (2) The criteria for determining the success of the 
        strategy.
            (3) A description of the manner in which the strategy will 
        support efforts of countries <DELETED>receiving assistance 
        pursuant to the strategy</DELETED> in sub-Saharan Africa to 
        improve access to power using a broad mix of energy options and 
        improve the affordability and reliability of power in sub-
        Saharan Africa.
            (4) A general description of regional and country plans and 
        significant local efforts, as appropriate, in sub-Saharan 
        Africa to--
                    (A) increase power production;
                    (B) strengthen electrical transmission and 
                distribution infrastructure;
                    (C) provide for regulatory reform and transparent 
                and accountable governance and oversight;
                    (D) improve the reliability of power;
                    (E) maintain the affordability of power;
                    (F) maximize the financial sustainability of the 
                power sector; and
                    (G) improve access to power.
            (5) A description of plans to support efforts of countries 
        <DELETED>receiving assistance pursuant to the strategy</DELETED> 
        in sub-Saharan Africa to increase access to power in urban and 
        rural areas, including a description of plans designed to 
        address commercial, industrial, and residential needs.
            (6) A description of plans to support efforts of such 
        countries to reduce waste and corruption and improve existing 
        power generation through the use of a broad power mix, 
        including fossil fuel and renewable energy, distributed 
        generation models, and other technological innovations, as 
        appropriate.
            (7) An analysis of existing mechanisms for ensuring, and 
        recommendations to promote--
                    (A) commercial cost recovery <DELETED>in countries 
                receiving assistance</DELETED>  pursuant to the 
                strategy</DELETED>;
                    (B) commercialization of electric service through 
                distribution service providers to consumers;
                    (C) improvements in revenue cycle management, power 
                pricing, and fees assessed for service contracts and 
                connections;
                    (D) reductions in technical losses in the 
                transmission systems and commercial losses resulting 
                from inefficiencies, including inefficiencies in the 
                billing and collection cycle, theft, and manipulation 
                of meter reading and billing systems; and
                    (E) access to power, including recommendations on 
                the creation of new service provider models that 
                mobilize community participation in the provision of 
                power services.
            (8) A description of United States Government efforts to 
        support the efforts of countries <DELETED>receiving assistance 
        pursuant to the strategy</DELETED>  in sub-Saharan Africa to 
        leverage private sector resources and public sector financing 
        pursuant to the strategy.
            (9) A description of the reforms being undertaken or 
        planned by countries in sub-Saharan Africa to ensure the long-
        term economic viability of power projects and to increase 
        access to power, including--
                    (A) reforms designed to allow third parties to 
                connect power generation to the grid affordably, 
                quickly, and without undue regulatory burdens;
                    (B) policies to ensure there is a viable, 
                adequately resourced, independent, and capable utility 
                regulator;
                    (C) strategies to ensure utilities become or remain 
                creditworthy;
                    (D) regulations that permit the participation of 
                independent power producers and private-public 
                partnerships;
                    (E) policies that encourage private investment in 
                power generation;
                    (F) policies that ensure compensation for power 
                provided to the electrical grid by on-site producers;
                    (G) policies to unbundle power services; and
                    (H) regulations to eliminate conflicts of interest 
                in the utility sector.
            (10) A description of plans to ensure--
                    (A) local consultation, as appropriate, in the 
                planning, long-term maintenance, and management of 
                investments designed to increase access to power in 
                sub-Saharan Africa; and
                    (B) that such investments are sustainable and 
                transparent, including through the provision of 
                technical assistance and training.
            (11) An identification of the relevant United States 
        Government departments and agencies that will be involved in 
        carrying out the strategy.
            (12) A description of the level and distribution of 
        resources that will be dedicated on an annual basis among those 
        departments and agencies.
            (13) A description of the role of each such department or 
        agency and the types of programs that each such department or 
        agency will conduct.
            (14) A description of the mechanisms that will be used to 
        coordinate the efforts of United States Government departments 
        and agencies in carrying out the strategy to avoid duplication 
        of efforts, enhance coordination, and ensure that each such 
        department or agency conducts programs primarily in the areas 
        in which that department or agency has the greatest expertise, 
        technical capabilities, and potential for success.
            (15) A description of the mechanisms to be established 
        for--
                    (A) monitoring and evaluating increased access to, 
                and reliability and affordability of, power in sub-
                Saharan Africa for individuals, communities, and 
                businesses;
                    (B) maximizing the financial sustainability of 
                power generation, transmission, and distribution in 
                sub-Saharan Africa;
                    (C) sharing best practices among relevant United 
                States Government departments and agencies and with 
                other countries and institutions participating in 
                efforts to increase access to power in sub-Saharan 
                Africa;
                    (D) establishing metrics to demonstrate progress on 
                meeting goals relating to access to power, power 
                generation, and distribution in sub-Saharan Africa; and
                    (E) terminating unsuccessful programs.
            (16) A description of the engagement plan for working with 
        local communities benefitting from or affected by projects 
        carried out pursuant to the strategy.
            (17) A description of the mechanisms that will be used to 
        ensure greater coordination between the United States and 
        foreign governments, international organizations, African 
        regional economic communities, international financial 
        institutions, international fora such as the G-8 and G-20, and 
        private sector and civil society organizations.
            (18) An outline of how the President intends to partner 
        with foreign governments, the World Bank Group, the African 
        Development Bank, the private sector, and other development 
        partners to <DELETED>assist</DELETED> encourage sub-Saharan 
        African countries to conduct project studies and facilitate 
        project development.
            (19) A description of how the President intends to help 
        facilitate transnational and regional electrification projects 
        where appropriate.
            (20) A description of how the President intends to help 
        sub-Saharan countries use new or potential fossil fuel and 
        other resources in order to provide power to their citizens.
            (21) A description of how the President intends to promote 
        trade in electrical equipment with countries in sub-Saharan 
        Africa, including a description of how the government of each 
        country receiving assistance pursuant to the strategy--
                    (A) plans to lower or eliminate import tariffs or 
                other taxes for energy and other power production and 
                distribution technologies destined for sub-Saharan 
                Africa, including equipment used to provide energy 
                access, including solar lanterns, solar home systems, 
                and micro and mini grids; and
                    (B) plans to protect the intellectual property of 
                companies designing and manufacturing products that can 
                be used to provide energy access in sub-Saharan Africa.
            (22) A description of how the President intends to work 
        with the African Development Bank and other partners to 
        increase the capacity of sub-Saharan African utilities to--
                    (A) develop standardized power purchase agreements 
                and other contracts to streamline project development; 
                and
                    (B) negotiate and monitor compliance with power 
                purchase agreements and other contracts entered into 
                with the private sector.
            (23) A description of how the President intends to 
        encourage the growth of distributed renewable energy markets in 
        sub-Saharan Africa, including off-grid lighting and power, that 
        includes--
                    (A) a country-by-country analysis of the state of 
                distributed renewable energy in sub-Saharan Africa, 
                including off-grid lighting and power;
                    (B) a description of market barriers to the 
                deployment of distributed renewable energy technologies 
                both on- and off-grid in sub-Saharan Africa;
                    (C) measures United States Government departments 
                and agencies, including the United States Agency for 
                International Development and the Overseas Private 
                Investment Corporation, can take--
                            (i) to overcome or eliminate market 
                        barriers or enhance financing opportunities for 
                        distributed renewable energy solutions in sub-
                        Saharan Africa; and
                            (ii) to <DELETED>assist</DELETED> encourage 
                        multilateral organizations such as the World 
                        Bank Group in efforts to eliminate such 
                        barriers or enhance such opportunities;
                    (D) the amount and kind of financial support and 
                financing provided to participants in distributed 
                energy markets by the United States Government, 
                international financial institutions, and other 
                international organizations;
                    (E) an analysis of the efficacy of efforts by the 
                Overseas Private Investment Corporation and the United 
                States Agency for International Development to 
                facilitate the financing of the importation, 
                distribution, sale, leasing, or marketing of 
                distributed renewable energy technologies; and
                    (F) a description of how bolstering distributed 
                renewable energy can enhance the overall effort to 
                increase power access in sub-Saharan Africa.
            (24) Any other issues the President determines are relevant 
        to the strategy.
    (c) Interagency Working Group.--
            (1) In general.--The President may, as appropriate, 
        establish an Interagency Working Group to coordinate the 
        activities of relevant United States Government departments and 
        agencies involved in carrying out the strategy required under 
        this section.
            (2) Functions.--The Interagency Working Group may, among 
        other things, seek to coordinate the activities of the United 
        States Government departments and agencies involved in 
        implementing the strategy, ensure efficient and effective 
        coordination between participating departments and agencies, 
        facilitate information sharing, and coordinate partnerships 
        between United States Government, the private sector, and other 
        development partners to achieve the goals of the strategy.
    <DELETED>(c)</DELETED>(d) African Power Advisory Group.--
            (1) Establishment.--For the purposes of developing the 
        strategy required by subsection (a), the President shall 
        establish a African Power Advisory Group to advise on the 
        development and implementation of the strategy and report 
        required by this section and <DELETED>assistance</DELETED>  
        support provided pursuant to this section.
            (2) Membership.--The African Power Advisory Group shall be 
        composed of <DELETED>12</DELETED>  13 members appointed by the 
        President, including the following:
                    (A) The Coordinator of the President's Power Africa 
                Initiative.
                    (B) Seven individuals from the power sector, of 
                whom--
                            (i) at least one shall have experience in 
                        the fossil fuel power sector;
                            (ii) at least one shall have experience 
                        with the rural electrical cooperatives;
                            (iii) at least one shall have experience in 
                        the renewable energy sector; and
                            (iv) at least one shall have experience in 
                        the distributed generation sector.
                    (C) Three individuals, other than individuals 
                described in subparagraph (B), who shall have 
                experience in working with the business community in 
                Africa or with governments of countries in Africa.
                    (D) One individual who shall have experience with 
                utility regulation.
                    (E) The official designated pursuant to section 
                1206(d) of the National Defense Authorization Act for 
                Fiscal Year 2014 (Public law 113-66; 127 Stat. 902; 22 
                U.S.C. 2151 note) to coordinate efforts to increase 
                United States exports to Africa.
            (3) Functions.--The President shall call upon members of 
        the African Power Advisory Group, either collectively or 
        individually, to advise the President regarding the development 
        and implementation of the strategy and report required by this 
        section and <DELETED>assistance</DELETED> support provided 
        pursuant to this section.
            (4) Meetings.--The African Power Advisory Group shall meet 
        not later than 60 days after the date of the enactment of this 
        Act and not less frequently than annually thereafter.
            (5) Federal advisory committee act.--The African Power 
        Advisory Group established under this section shall not be 
        subject to the Federal Advisory Committee Act (5 U.S.C. App.).

SEC. 104. SENSE OF CONGRESS ON PRIORITIES WITH RESPECT THE ENERGY 
              SECTOR OF SUB-SAHARAN AFRICAN COUNTRIES.

    It is the sense of Congress that--
            (1) as the United States deepens its engagement with 
        countries in sub-Saharan Africa pursuant to the authorities 
        provided under this Act, priority should be given to countries 
        with a demonstrated commitment to--
                    (A) transparency, accountability, and credibility 
                in energy sector governance;
                    (B) prudent macroeconomic management of energy 
                resources, including sound fiscal and debt management;
                    (C) energy sector reforms, including tariff reform, 
                unbundling of vertically integrated utilities, and 
                access for independent power producers;
                    (D) responsible development of newly discovered 
                energy resources;
                    (E) expansion of power generation, transmission, 
                and access, including distributed mini-grid and off-
                grid solutions; and
                    (F) private sector and investment climate reforms, 
                such as strong rule of law and robust controls over the 
                business regulatory environment; and
            (2) the United States should consider, in prioritizing 
        efforts carried out pursuant to this Act--
                    (A) opportunities for the United States private 
                sector to contribute to the energy sector in sub-
                Saharan African countries through technology, 
                innovation, and project development;
                    (B) the potential of such efforts to facilitate 
                regional power trade and expand power access across 
                borders;
                    (C) private sector interest and participation in 
                the energy sector of sub-Saharan African countries;
                    (D) the long-term financial viability of energy 
                sector projects in development;
                    (E) opportunities to collaborate with international 
                donors and partners in energy sector development 
                involving multilateral institutions such as the World 
                Bank Group and the African Development Bank;
                    (F) the availability of United States Government 
                resources and appropriate funds to support the 
                expansion of technical assistance, delivery units, and 
                transaction advisors and teams to implement United 
                States Government programs to expand power access in 
                sub-Saharan Africa; and
                    (G) mechanisms to promote efficient and effective 
                coordination among United States Government departments 
                and agencies, including allocation of well-defined 
                roles for each such department or agency.

SEC. 105. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
              SAHARAN AFRICA BY THE UNITED STATES AGENCY FOR 
              INTERNATIONAL DEVELOPMENT.

    (a) Loan Guarantees.--In pursuing the policy goals described in 
section 102, the Administrator of the United States Agency for 
International Development should prioritize loan guarantees to local 
financial institutions in sub-Saharan Africa, as appropriate, to--
            (1) facilitate the involvement of such institutions in 
        power projects and markets, both on- and off-grid, in sub-
        Saharan Africa;
            (2) allow such institutions to partner with other investors 
        to leverage expertise and increase the impact of such loan 
        guarantees for energy access and power production projects in 
        sub-Saharan Africa;
            (3) allow such institutions to partner with other investors 
        to fund local research, development, and deployment of 
        technology in order to specifically increase access to 
        reliable, affordable, and sustainable power in sub-Saharan 
        Africa; and
            (4) allow such institutions to fund the development of 
        plans to increase distribution coverage, including off-grid 
        projects and services in rural areas of sub-Saharan Africa.
    (b) Grants.--The Administrator <DELETED>shall</DELETED>  should, as 
appropriate, prioritize assistance to--
            (1) support the implementation or development, as 
        appropriate, of national, regional, and local energy and 
        economically sustainable power policy plans in sub-Saharan 
        Africa;
            (2) expand power access across sub-Saharan Africa, 
        including specifically to the poorest populations and rural and 
        isolated communities;
            (3) build the capacity of countries in sub-Saharan Africa 
        to monitor and appropriately and transparently regulate the 
        power sector and encourage private investment in power 
        production and distribution; and
            (4) increase access to reliable, affordable, and 
        sustainable power in sub-Saharan Africa, including the 
        development of plans to increase power access in rural areas.
    (c) Effectiveness Measurement.--In providing the loan guarantees 
and assistance prioritized pursuant to this section, the Administrator 
shall use clear, accountable, and metric-based targets to measure the 
effectiveness of such guarantees and assistance in achieving the goals 
described in section 102.
    (d) Rule of Construction.--Nothing in this section shall be 
construed to authorize modifying or limiting the portfolio of the 
United States Agency for International Development in other developing 
regions.

SEC. 106. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
              SAHARAN AFRICA BY THE TRADE AND DEVELOPMENT AGENCY.

    (a) In General.--The Director of the Trade and Development Agency 
should prioritize, as appropriate--
            (1) the promotion of United States private sector 
        participation in energy sector development projects in sub-
        Saharan Africa by conducting project preparation activities for 
        projects in sub-Saharan Africa, including feasibility studies, 
        technical assistance, pilot projects, reverse trade missions, 
        conferences, and workshops; and
            (2) the funding of project preparation activities for 
        projects in sub-Saharan Africa that involve increased access to 
        power, including power generation and trade capacity building.
    (b) Focus.--The project preparation activities described in 
subsection (a) should focus on supporting projects in sub-Saharan 
Africa that enhance efficiencies in the areas of power generation, 
transmission, and distribution grids, including on-grid, off-grid, and 
micro-grid solutions, and best practices in demand-side management.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to authorize modifying or limiting the portfolio of the Trade 
and Development Agency in other developing regions.

SEC. 107. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
              SAHARAN AFRICA BY THE OVERSEAS PRIVATE INVESTMENT 
              CORPORATION.

    (a) In General.--The Overseas Private Investment Corporation 
should, as appropriate--
            (1) prioritize support for private sector investments in 
        the power sector of sub-Saharan Africa, including in renewable 
        energy, that will--
                    (A) maximize the number of people with new access 
                to power and power services;
                    (B) improve and expand the transmission and 
                distribution of power and off-grid lighting and power 
                solutions;
                    (C) provide reliable power to people and businesses 
                in urban and rural communities;
                    (D) address the energy needs of people living in 
                areas where there is little or no access to a power 
                grid;
                    (E) reduce transmission and distribution losses and 
                improve end-use efficiency and demand-side management; 
                and
                    (F) reduce energy-related impediments to business 
                productivity and investment;
            (2) implement procedures for expedited review of and, where 
        appropriate, approval of, applications by eligible investors 
        (as defined in section 238 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2198)) for loans, loan guarantees, and 
        insurance for such investments;
            (3) encourage small- and medium-sized enterprises and 
        cooperative service providers to participate in energy 
        investment activities in sub-Saharan Africa; and
            (4) publish information on the effects of its energy 
        investments on development in sub-Saharan Africa.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to authorize modifying or limiting the portfolio of the 
Overseas Private Investment Corporation in other developing regions.

SEC. 108. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
              SAHARAN AFRICA BY THE WORLD BANK GROUP AND THE AFRICAN 
              DEVELOPMENT BANK.

    (a) In General.--The Secretary of the Treasury should direct the 
United States Executive Directors of the World Bank Group and the 
African Development Bank to, as appropriate, use the voice, vote, and 
influence of the United States to help ensure the World Bank Group and 
the African Development Bank--
            (1) prioritize--
                    (A) increasing their investment in, and efforts to 
                promote investment in, well-designed power sector and 
                electrification projects in sub-Saharan Africa;
                    (B) creating financing opportunities, provide 
                financing, and provide technical assistance to promote 
                both on- and off-grid power and lighting solutions in 
                sub-Saharan Africa;
                    (C) stimulating private investment in reliable, 
                affordable, and sustainable power in sub-Saharan 
                Africa; and
                    (D) providing technical assistance to the 
                regulatory authorities of governments in sub-Saharan 
                Africa to--
                            (i) remove unnecessary regulatory and legal 
                        barriers to investment in commercially viable 
                        power projects and markets;
                            (ii) modify regulatory and legal regimes to 
                        assist providers in reducing power transmission 
                        and distribution technical losses;
                            (iii) implement cost-based power tariffs 
                        and provide for commercial cost recovery;
                            (iv) encourage end-use efficiency and 
                        demand-side management in the power sector;
                            (v) strengthen local power markets;
                            (vi) reduce corruption in the power 
                        industry, including in government and 
                        regulatory processes associated with power 
                        production and distribution;
                            (vii) encourage domestic investment in the 
                        power sector;
                            (viii) improve transparency and good 
                        governance with respect to regulatory and legal 
                        processes and requirements in the power sector;
                            (ix) encourage affordable and expedited 
                        interconnection for distributed energy systems 
                        and independent power producers;
                            (x) ensure compliance with the best 
                        practices of the World Bank Group and the 
                        African Development Bank; and
                            (xi) implement regulatory and legal reforms 
                        that facilitate efficient power generation, 
                        transmission, and distribution and efficient 
                        off-grid energy markets;
            (2) use clear, accountable, and metric-based targets to 
        measure the effectiveness of investment and other assistance 
        provided by the World Bank Group or the African Development 
        Bank, as the case may be, for power sector and electrification 
        projects in sub-Saharan Africa; and
            (3) support the efforts of the World Bank Group to foster 
        growth in the off-grid lighting and power markets.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to authorize the Secretary of the Treasury to advocate for 
modifying or limiting the portfolio of the World Bank Group or the 
African Development Bank in other developing regions.

SEC. 109. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
              SAHARAN AFRICA BY THE UNITED STATES AFRICAN DEVELOPMENT 
              FOUNDATION.

    (a) In General.--The Board of Directors and the President of the 
United States African Development Foundation should seek opportunities 
to make grants and provide technical support to businesses and 
organizations in sub-Saharan Africa that qualify for assistance from 
the Foundation and are developing on- and off-grid solutions to meet 
the power needs of rural communities underserved by national grids.
    (b) Focus.--The mission of the United States African Development 
Foundation under subsection (a) is to meet the needs of underserved 
communities and close critical development gaps with speed, efficiency, 
and effectiveness.

SEC. 110. PRIORITIZATION OF ASSISTANCE FOR POWER PROJECTS IN SUB-
              SAHARAN AFRICA BY THE MILLENNIUM CHALLENGE CORPORATION.

    (a) In General.--The Chief Executive Officer and the Board of 
Directors of the Millennium Challenge Corporation should--
            (1) assess, as appropriate, the extent to which 
        insufficient access to and reliability of electricity is a 
        binding constraint on sustainable economic growth in countries 
        in sub-Saharan Africa; and
            (2) prioritize, as appropriate--
                    (A) the provision of assistance to support private 
                and public sector efforts to increase access to and the 
                reliability of electricity in such countries, including 
                through on- and off-grid generation and electrical 
                transmission and distribution projects;
                    (B) engagement with governments of such countries 
                to assist in identifying and establishing legal, 
                regulatory, policy, and institutional reforms related 
                to power sector investments;
                    (C) consultation with independent power producers, 
                public and private financial institutions, and other 
                power sector stakeholders during project planning; and
                    (D) guidance, including in the design of project 
                methodologies and performance metrics, as requested by 
                other United States Government departments and agencies 
                involved in activities authorized under this title.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to authorize modifying or limiting the assistance programs of 
the Millennium Challenge Corporation in other developing regions or 
sectors.

SEC. <DELETED>110.</DELETED>111. PROGRESS REPORT.

    (a) In General.--Not later than 3 years after the date of the 
enactment of this Act, the President shall submit to the Committee on 
Foreign Relations of the Senate and the Committee on Foreign Affairs of 
the House of Representatives a report on progress made toward achieving 
the policy goals described in section 102 that includes the following:
            (1) A report on United States programs supporting 
        implementation of policy and legislative changes leading to 
        increased power generation and access in sub-Saharan Africa, 
        including a description of the number, type, and status of 
        policy, regulatory, and legislative changes initiated or 
        implemented as a result of programs funded or supported by the 
        United States in countries in sub-Saharan Africa to support 
        increased power generation and access after the date of the 
        enactment of this Act.
            (2) A description of power projects receiving United States 
        Government support and how such projects, including off-grid 
        efforts, are intended to achieve the policy goals described in 
        section 102.
            (3) For each project described in paragraph (2)--
                    (A) a description of how the project fits into, or 
                encourages modifications of, the national energy plan 
                of the country in which the project will be carried 
                out, including encouraging regulatory reform in that 
                county;
                    (B) an estimate of the total cost of the project to 
                the consumer, the country in which the project will be 
                carried out, and other investors;
                    (C) the amount of financing provided or guaranteed 
                by the United States Government for the project;
                    (D) an estimate of United States Government 
                resources for the project, itemized by funding source, 
                including from the Overseas Private Investment 
                Corporation, the United States Agency for International 
                Development, the Department of the Treasury, or other 
                appropriate United States Government departments and 
                agencies;
                    (E) an estimate of the number of individuals, 
                communities, businesses, schools, and health facilities 
                that have gained power connections as a result of the 
                project, with a description of how the reliability, 
                affordability, and sustainability of power has been 
                improved as of the date of the report; and
                    (F) an assessment of the increase in the number of 
                people and businesses with access to power and in the 
                operating electrical power capacity in megawatts as a 
                result of the project between the date of the enactment 
                of this Act and the date of the report.
            (4) A description of any significant estimated non-economic 
        effects of the efforts carried out pursuant to this Act.

           TITLE II--OVERSEAS PRIVATE INVESTMENT CORPORATION

SEC. 201. EXTENSION OF ISSUING AUTHORITY.

    Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(2)) is amended by striking ``2007'' and inserting ``2019''.

SEC. 202. EXPEDITED PROCEDURES FOR FINANCING OF SMALL PROJECTS RELATED 
              TO POWER GENERATION AND DISTRIBUTION IN SUB-SAHARAN 
              AFRICA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Overseas Private Investment Corporation 
should, as appropriate, simplify and streamline the application, 
approval, and post-approval processes for insurance, financing, 
investment, or reinsurance for projects or subprojects, including off-
grid efforts, in sub-Saharan Africa for which the total support of the 
Corporation is less than $20,000,000, by--
            (1) expediting the review and consideration of, and 
        determinations with respect to, applications for insurance, 
        financing, investment, or reinsurance, consistent with 
        investment best practices, including appropriate risk 
        management, for such projects and subprojects; and
            (2) reducing the burdens of project management for, and 
        eliminating duplicative or unnecessary oversight of such 
        projects and subprojects after approval of insurance, 
        financing, investment, or reinsurance for projects or 
        subprojects.
    (b) Consideration of Best Practices.--In revising its procedures as 
required by subsection (a), the Overseas Private Investment Corporation 
should consider best practices established by the International Finance 
Corporation of the World Bank Group.

SEC. 203. ACTIVITIES IN SUB-SAHARAN AFRICA; INVESTMENT ADVISORY 
              COUNCIL.

    Section 233(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2193(e)) is amended to read as follows:
    ``(e) Activities in Sub-Saharan Africa; Investment Advisory 
Council.--
            ``(1) In general.--The Board should take prompt measures to 
        prioritize, as appropriate, the loan, guarantee, and insurance 
        programs, and financial commitments, of the Corporation in sub-
        Saharan Africa in the areas of power generation, distribution, 
        and off-grid power and lighting, including through the use of 
        an investment advisory council to assist the Board in 
        developing and implementing policies, programs, and financial 
        instruments with respect to sub-Saharan Africa.
            ``(2) Recommendations.--The investment advisory council 
        described in paragraph (1) shall make recommendations to the 
        Board on how the Corporation can facilitate greater support by 
        the United States for private sector trade and investment with 
        and in sub-Saharan Africa.
            ``(3) Termination.--The investment advisory council 
        described in paragraph (1) shall terminate on December 31, 
        2018.
            ``(4) Applicability of federal advisory committee act.--The 
        investment advisory council described in paragraph (1) shall 
        not be subject to the Federal Advisory Committee Act (5 U.S.C. 
        App.).''.

SEC. 204. PILOT PROGRAM FOR EXPANSION OF ELIGIBLE INVESTORS.

    (a) In General.--The Overseas Private Investment Corporation shall 
conduct a pilot program under which entities that are covered by 
section 238(c)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2198(c)(3)) and are substantially beneficially owned by United States 
citizens shall be considered eligible investors under section 238(c) of 
that Act for the sole purpose of receiving assistance from the 
Corporation for power projects in sub-Saharan Africa.
    (b) Cap on Assistance.--Assistance provided by the Corporation for 
a power project in sub-Saharan Africa pursuant to subsection (a) to an 
entity that is covered by section 238(c)(3) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2198(c)(3)) and is substantially beneficially 
owned by United States citizens shall not exceed the lesser of--
            (1) the share of ownership in the entity of such United 
        States citizens; or
            (2) the percentage of the investment of the entity in the 
        project.
    (c) Termination of Pilot Program.--The pilot program under 
subsection (a) shall terminate on the date that is 5 years after the 
date of the enactment of this Act.
    (d) Continued Validity of Existing Support.--Notwithstanding 
subsection (c), any support provided before the date that is 5 years 
after the date of the enactment of this Act pursuant to the pilot 
program under subsection (a) shall remain valid on and after that date.

SEC. 205. PILOT PROGRAM FOR DIRECT INVESTMENT AND LOCAL CURRENCY 
              GUARANTIES FOR POWER PROJECTS IN SUB-SAHARAN AFRICA.

    (a) In General.--The Overseas Private Investment Corporation shall 
conduct a pilot program to--
            (1) make loans to eligible investors under section 234(c) 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2194(c)) for 
        power projects in sub-Saharan Africa and for which the total 
        support of the Corporation does not exceed $50,000,000; and
            (2) issue local currency guarantees under section 234(h) of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2194(h)) to 
        African subsidiaries of foreign financial institutions if the 
        issuance of such guarantees directly facilitates lending for 
        power projects in sub-Saharan Africa undertaken by eligible 
        investors.
    (b) Eligible Investor Defined.--In this section, the term 
``eligible investor'' means an eligible investor as defined in section 
238(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 2198(c)) or 
described in section 204(a) of this Act.
    (c) Termination of Pilot Program.--The pilot program under 
subsection (a) shall terminate on the date that is 5 years after the 
date of the enactment of this Act.
    (d) Continued Validity of Existing Loans and Guarantees.--
Notwithstanding subsection (c), any loans made or local currency 
guarantees issued pursuant to the pilot program under subsection (a) 
before the date that is 5 years after the date of the enactment of this 
Act shall remain valid on and after that date.

SEC. 206. EXTENSION OF MAXIMUM TERM OF OBLIGATION FOR RENEWABLE ENERGY 
              PROJECTS IN SUB-SAHARAN AFRICA.

    Section 237(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2197(e)) is amended to read as follows:
    ``(e) Maximum Term of Obligation.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        insurance, guaranty, or reinsurance of any equity investment 
        shall extend beyond 20 years after the date of issuance.
            ``(2) Extended term of obligation for certain projects.--An 
        insurance, guaranty, or reinsurance of an equity investment in 
        a renewable energy project in sub-Saharan Africa may extend up 
        to 30 years after the date of issuance.''.

SEC. 207. INSPECTOR GENERAL.

    (a) In General.--Section 8G(a) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended--
            (1) in paragraph (2), by inserting ``the Overseas Private 
        Investment Corporation,'' after ``the National Science 
        Foundation,''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (G), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (H), by inserting ``and'' after 
                the semicolon; and
                    (C) by adding at the end the following:
                    ``(I) with respect to the Overseas Private 
                Investment Corporation, such term means the Board of 
                Directors of the Overseas Private Investment 
                Corporation (established under section 233(b) of the 
                Foreign Assistance Act of 1961 (22 U.S.C. 2193(b));''.
    (b) Conforming Amendment.--Section 239 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2199) is amended by striking subsection (e).

SEC. 208. ASSESSMENT OF CUSTOMER SATISFACTION.

    Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) 
is amended by adding at the end the following:
    ``(l) Assessment of Customer Satisfaction.--
            ``(1) In general.--Each fiscal year, the Corporation shall 
        conduct a survey of a sample of its customers to assess the 
        satisfaction of those customers with the operation and 
        procedures of the Corporation, with particular attention to 
        customers of the Corporation that are small businesses and 
        cooperatives.
            ``(2) Report to congress.--The Corporation shall include in 
        its annual report required under section 240A a report on the 
        survey conducted under paragraph (1) that includes, as 
        appropriate, summaries of recommendations made by customers of 
        the Corporation with respect to ways to improve the operations 
        and procedures of the Corporation.''.

SEC. 209. SCHEDULE B HIRING AUTHORITY.

    In carrying out the purposes of this Act and its responsibilities 
under this Act, the Overseas Private Investment Corporation may, in 
addition to other authorities available, employ not more than 20 
individuals, on a limited-appointment basis, pursuant to schedule B of 
subpart C of part 213 of title 5, Code of Federal Regulations, for the 
purpose of furthering specific efforts in sub-Saharan Africa with 
respect to power production and generation and distribution, including 
off-grid efforts.

SEC. 210. SENSE OF CONGRESS ON FUNDING.

    It is the sense of Congress that appropriations for the 
administrative expenses and activities under section 234(g)(5) of the 
Foreign Assistance of 1961 (22 U.S.C. 2194(g)(5)) of the Corporation in 
each of the fiscal years 2015 through 2019 should be adjusted to 
reflect the resources needed to carry out the purposes of this Act, 
including enabling the Corporation to hire personnel and to upgrade 
systems infrastructure, as appropriate, to implement the purposes of 
this Act.

SEC. 211. REPORT ON EQUITY AUTHORITY.

    Not later than one year after the date of the enactment of this 
Act, the Inspector General of the Overseas Private Investment 
Corporation (appointed pursuant to the amendments made by section 207) 
shall submit to Congress a report on the authorities of the Corporation 
to effectively meet its statutory objectives, including as modified by 
this Act, that includes an assessment of the following:
            (1) The effectiveness of the existing authorities of the 
        Corporation in promoting investment in energy and 
        infrastructure projects.
            (2) The effect granting the Corporation the authority to 
        directly invest in projects would have on--
                    (A) the ability of the Corporation to support 
                development projects, including infrastructure and 
                energy projects, that advance the foreign policy goals 
                of the United States;
                    (B) the risk profile of the Corporation;
                    (C) the budget of the Corporation;
                    (D) the success rate of projects, measured in terms 
                of capacity to meet development goals and financial 
                targets;
                    (E) sectors or regions in which equity investment 
                would be particularly beneficial or harmful to 
                furthering the mission of the Corporation; and
                    (F) the capability of the Corporation to meet its 
                statutory objectives, including as modified by this 
                Act, including whether granting such authority would 
                limit the effectiveness of the Corporation in meeting 
                its goals with respect to stimulating United States 
                private sector investment in such projects, including 
                investment by small- and medium-sized enterprises.
            (3) The effect of any other financing instruments that may 
        be better suited to energy or infrastructure projects.
            (4) The competitiveness of financing provided by the 
        Corporation relative to financing provided by development 
        finance institutions of other major economies.
            Amend the title so as to read: ``A bill to establish a 
        comprehensive United States Government policy to encourage the 
        efforts of countries in sub-Saharan Africa to improve access to 
        and the affordability, reliability, and sustainability of 
        power, and for other purposes.''.
                                                       Calendar No. 489

113th CONGRESS

  2d Session

                                S. 2508

                          [Report No. 113-219]

_______________________________________________________________________

                                 A BILL

To establish a comprehensive United States Government policy to assist 
     countries in sub-Saharan Africa to improve access to and the 
affordability, reliability, and sustainability of power, and for other 
                               purposes.

_______________________________________________________________________

                             July 24, 2014

         Reported with amendments and an amendment to the title