[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3585 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3585

  To prioritize the efforts of and enhance coordination among United 
States agencies to encourage countries in Central and Eastern Europe to 
  diversify their energy sources and supply routes, increase Europe's 
  energy security, and help the United States reach its global energy 
                security goals, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 11, 2018

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

_______________________________________________________________________

                                 A BILL


 
  To prioritize the efforts of and enhance coordination among United 
States agencies to encourage countries in Central and Eastern Europe to 
  diversify their energy sources and supply routes, increase Europe's 
  energy security, and help the United States reach its global energy 
                security goals, 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 ``European Energy Security and 
Diversification Act of 2018''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Central or eastern european country.--The term 
        ``Central or Eastern European country'' includes--
                    (A) Albania;
                    (B) Bosnia and Herzegovina;
                    (C) Bulgaria;
                    (D) Croatia;
                    (E) Cyprus;
                    (F) the Czech Republic;
                    (G) Estonia;
                    (H) Greece;
                    (I) Hungary;
                    (J) Kosovo;
                    (K) Latvia;
                    (L) Lithuania;
                    (M) Macedonia;
                    (N) Moldova;
                    (O) Montenegro;
                    (P) Poland;
                    (Q) Romania;
                    (R) Serbia;
                    (S) Slovakia;
                    (T) Slovenia; and
                    (U) Ukraine.
            (2) Early-stage project support.--The term ``early-stage 
        project support'' includes--
                    (A) feasibility studies;
                    (B) resource evaluations;
                    (C) project appraisal and costing;
                    (D) pilot projects;
                    (E) commercial support, such as trade missions, 
                reverse trade missions, technical workshops, 
                international buyer programs, and international partner 
                searchers to link suppliers to projects;
                    (F) technical assistance and other guidance to 
                improve the local regulatory environment and market 
                frameworks to encourage transparent competition and 
                enhance energy security; and
                    (G) long-term energy sector planning.
            (3) Late-stage project support.--The term ``late-stage 
        project support'' includes debt financing, insurance, and 
        transaction advisory services.

SEC. 3. STATEMENT OF POLICY.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States has economic and national security interests in assisting 
Central and Eastern European countries achieve energy security through 
diversification of their energy sources and supply routes.
    (b) Statement of Policy.--It is the policy of the United States--
            (1) to advance United States foreign policy and development 
        goals by assisting Central and Eastern European countries to 
        reduce their dependence on energy resources from countries that 
        use energy dependence for undue political influence, such as 
        the Russian Federation, which has used natural gas to coerce, 
        intimidate, and influence other countries;
            (2) to promote the energy security of allies and partners 
        of the United States by encouraging the development of 
        accessible, transparent, and competitive energy markets that 
        provide diversified sources, types, and routes of energy;
            (3) to encourage United States public and private sector 
        investment in European energy infrastructure projects to bridge 
        the gap between energy security requirements and commercial 
        demand in a way that is consistent with the region's absorptive 
        capacity; and
            (4) to help facilitate the export of United States energy 
        resources, technology, and expertise to global markets in a way 
        that benefits the energy security of allies and partners of the 
        United States, including in Central and Eastern Europe.

SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR ENERGY 
              INFRASTRUCTURE PROJECTS IN CENTRAL AND EASTERN EUROPE.

    (a) In General.--In pursuing the policy described in section 3, the 
Secretary of State, in coordination with the heads of United States 
agencies that operate under the policy guidance of the Secretary, 
shall, as appropriate, prioritize and expedite the efforts of the 
Department of State and those agencies in supporting the efforts of the 
European Commission and the governments of Central and Eastern European 
countries to increase their energy security, including through--
            (1) providing diplomatic and political support to the 
        European Commission and those governments, as necessary--
                    (A) to facilitate international negotiations 
                concerning cross-border infrastructure;
                    (B) to enhance Europe's regulatory environment with 
                respect to energy; and
                    (C) to develop accessible, transparent, and 
                competitive energy markets supplied by diverse sources, 
                types, and routes of energy; and
            (2) providing support to improve European energy markets, 
        including early-stage project support and late-stage project 
        support for the construction or improvement of energy 
        infrastructure, as necessary--
                    (A) to diversify the energy sources and supply 
                routes of Central and Eastern European countries;
                    (B) to enhance energy market integration across the 
                region; and
                    (C) to increase competition within energy markets.
    (b) Project Selection.--
            (1) In general.--The agencies described in subsection (a) 
        shall identify energy infrastructure projects that would be 
        appropriate for United States assistance under this section.
            (2) Project eligibility.--A project is eligible for United 
        States assistance under this section if the project is--
                    (A) related to--
                            (i) natural gas infrastructure, such as 
                        interconnectors, storage facilities, liquefied 
                        natural gas import facilities, or reverse flow 
                        capacity;
                            (ii) electricity transmission 
                        infrastructure, electricity storage projects, 
                        or smart grid projects;
                            (iii) renewable energy projects in wind, 
                        solar, tidal, or other forms; or
                            (iv) the improvement, rehabilitation, or 
                        construction of natural gas, coal, or other 
                        electricity generation facilities to increase 
                        the efficiency and reliability of electricity 
                        production; and
                    (B) located in a Central or Eastern European 
                country.
            (3) Preference.--In selecting among projects that are 
        eligible under paragraph (2), the agencies described in 
        subsection (a) shall give preference to projects that--
                    (A) link the energy systems of 2 or more Central 
                and Eastern European countries;
                    (B) have already been identified by the European 
                Commission as being integral for the energy security of 
                Central and Eastern European countries;
                    (C) are expected to enhance energy market 
                integration;
                    (D) can attract funding from the private sector, an 
                international financial institution, the government of 
                the country in which the project will be carried out, 
                or the European Commission; or
                    (E) have the potential to use United States goods 
                and services during project implementation.
    (c) Types of Assistance.--
            (1) Diplomatic and political support.--The Secretary of 
        State shall provide diplomatic and political support to the 
        European Commission and the governments of Central and Eastern 
        European countries, as necessary, including by using the 
        diplomatic and political influence and expertise of the 
        Department of State to build the capacity of those countries to 
        resolve any impediments to the development of projects selected 
        under subsection (b).
            (2) Early-stage project support.--The Director of the Trade 
        and Development Agency shall provide early-stage project 
        support with respect to projects selected under subsection (b), 
        as necessary.
            (3) Late-stage project support.--Agencies described in 
        subsection (a) that provide late-stage project support shall do 
        so with respect to projects selected under subsection (b), as 
        necessary.
    (d) Funding.--
            (1) Private sector investment.--The agencies described in 
        subsection (a)--
                    (A) are authorized to obligate and expend not more 
                than $1,000,000,000 to support private sector 
                investment in projects that diversify the energy 
                sources and energy transport capabilities of Central 
                and Eastern European countries and to improve energy 
                market integration in those countries; and
                    (B) shall ensure that amounts from such investments 
                are available for fiscal years 2019 through 2023 for 
                debt financing and insurance for projects under this 
                section.
            (2) Authorization of appropriations for trade and 
        development agency.--There are authorized to be appropriated to 
        the Director of the Trade and Development Agency for each of 
        fiscal years 2019 through 2023--
                    (A) $5,000,000 to provide assistance under this 
                section; and
                    (B) such sums as may be necessary for the Agency to 
                employ additional personnel to provide such assistance.
            (3) Countering russian influence fund.--Section 254(b) of 
        the Countering Russian Influence in Europe and Eurasia Act of 
        2017 (22 U.S.C. 9543(b)) is amended by adding at the end the 
        following:
            ``(7) To assist United States agencies in providing 
        assistance under section 4 of the European Energy Security and 
        Diversification Act of 2018.''.

SEC. 5. PROGRESS REPORTS.

    Not later than one year after the date of the enactment of this 
Act, and annually thereafter, 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 in providing assistance for projects under section 4 that 
includes--
            (1) a description of the energy infrastructure projects the 
        United States has identified for such assistance; and
            (2) for each such project--
                    (A) a description of the role of the United States 
                in the project, including in early-stage project 
                support and late-stage project support;
                    (B) the amount and form of any debt financing and 
                insurance provided by the United States Government for 
                the project;
                    (C) the amount and form of any early-stage project 
                support; and
                    (D) an update on the progress made on the project 
                as of the date of the report.
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