[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 704 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 331
116th CONGRESS
  1st Session
                                 S. 704

  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

                             March 7, 2019

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

                           December 17, 2019

 Reported by Mr. Risch, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``European Energy Security 
and Diversification Act of 2019''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

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

<DELETED>SEC. 3. STATEMENT OF POLICY.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Statement of Policy.--It is the policy of the United 
States--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>

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

<DELETED>    (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--</DELETED>
        <DELETED>    (1) providing diplomatic and political support to 
        the European Commission and those governments, as necessary--
        </DELETED>
                <DELETED>    (A) to facilitate international 
                negotiations concerning cross-border 
                infrastructure;</DELETED>
                <DELETED>    (B) to enhance Europe's regulatory 
                environment with respect to energy; and</DELETED>
                <DELETED>    (C) to develop accessible, transparent, 
                and competitive energy markets supplied by diverse 
                sources, types, and routes of energy; and</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) to diversify the energy sources and 
                supply routes of Central and Eastern European 
                countries;</DELETED>
                <DELETED>    (B) to enhance energy market integration 
                across the region; and</DELETED>
                <DELETED>    (C) to increase competition within energy 
                markets.</DELETED>
<DELETED>    (b) Project Selection.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Project eligibility.--A project is eligible 
        for United States assistance under this section if the project 
        is--</DELETED>
                <DELETED>    (A) related to--</DELETED>
                        <DELETED>    (i) natural gas infrastructure, 
                        such as interconnectors, storage facilities, 
                        liquefied natural gas import facilities, or 
                        reverse flow capacity;</DELETED>
                        <DELETED>    (ii) electricity transmission 
                        infrastructure, electricity storage projects, 
                        or smart grid projects;</DELETED>
                        <DELETED>    (iii) renewable energy projects in 
                        wind, solar, tidal, or other forms; 
                        or</DELETED>
                        <DELETED>    (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</DELETED>
                <DELETED>    (B) located in a Central or Eastern 
                European country.</DELETED>
        <DELETED>    (3) Preference.--In selecting among projects that 
        are eligible under paragraph (2), the agencies described in 
        subsection (a) shall give preference to projects that--
        </DELETED>
                <DELETED>    (A) link the energy systems of two or more 
                Central and Eastern European countries;</DELETED>
                <DELETED>    (B) have already been identified by the 
                European Commission as being integral for the energy 
                security of Central and Eastern European 
                countries;</DELETED>
                <DELETED>    (C) are expected to enhance energy market 
                integration;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (E) have the potential to use United 
                States goods and services during project 
                implementation.</DELETED>
<DELETED>    (c) Types of Assistance.--</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Funding.--</DELETED>
        <DELETED>    (1) Private sector investment.--The agencies 
        described in subsection (a)--</DELETED>
                <DELETED>    (A) are authorized to provide financing of 
                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</DELETED>
                <DELETED>    (B) shall ensure that amounts from such 
                investments are available for fiscal years 2020 through 
                2024 for debt financing and insurance for projects 
                under this section.</DELETED>
        <DELETED>    (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 2020 through 2024--</DELETED>
                <DELETED>    (A) $5,000,000 to provide assistance under 
                this section; and</DELETED>
                <DELETED>    (B) such sums as may be necessary for the 
                Agency to employ additional personnel to provide such 
                assistance.</DELETED>
        <DELETED>    (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:</DELETED>
        <DELETED>    ``(7) To assist United States agencies in 
        providing assistance under section 4 of the European Energy 
        Security and Diversification Act of 2019.''.</DELETED>

<DELETED>SEC. 5. PROGRESS REPORTS.</DELETED>

<DELETED>    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--</DELETED>
        <DELETED>    (1) a description of the energy infrastructure 
        projects the United States has identified for such assistance; 
        and</DELETED>
        <DELETED>    (2) for each such project--</DELETED>
                <DELETED>    (A) a description of the role of the 
                United States in the project, including in early-stage 
                project support and late-stage project 
                support;</DELETED>
                <DELETED>    (B) the amount and form of any debt 
                financing and insurance provided by the United States 
                Government for the project;</DELETED>
                <DELETED>    (C) the amount and form of any early-stage 
                project support; and</DELETED>
                <DELETED>    (D) an update on the progress made on the 
                project as of the date of the report.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``European Energy Security and 
Diversification Act of 2019''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) 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.
            (2) 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 
European and Eurasian 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 European and Eurasian 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 Europe and Eurasia.

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

    (a) In General.--In pursuing the policy described in section 3, the 
Secretary of State, in consultation with the Secretary of Energy and 
the heads of other relevant United States agencies, 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 European and Eurasian 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 and Eurasian 
        energy markets, including early-stage project support and late-
        stage project support for the construction or improvement of 
        energy and related infrastructure, as necessary--
                    (A) to diversify the energy sources and supply 
                routes of European and Eurasian 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--
                    (A)(i) improves electricity transmission 
                infrastructure, power generation through the use of a 
                broad power mix (including fossil fuel and renewable 
                energy), or energy efficiency; or
                    (ii) advances electricity storage projects, smart 
                grid projects, distributed generation models, or other 
                technological innovations, as appropriate; and
                    (B) is located in a European or Eurasian 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 European 
                or Eurasian countries;
                    (B) have already been identified by the European 
                Commission as being integral for the energy security of 
                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 European and 
        Eurasian 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 European 
                and Eurasian countries and to improve energy market 
                integration in those countries; and
                    (B) shall ensure that amounts from such investments 
                are available for fiscal years 2020 through 2024 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 2020 through 2024--
                    (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 2019.''.
    (e) Exception From Certain Limitation Under BUILD Act.--
            (1) In general.--For purposes of providing support for 
        projects under this section--
                    (A) the United States International Development 
                Finance Corporation may provide support for projects in 
                countries with upper-middle-income economies or high-
                income economies (as those terms are defined by the 
                World Bank);
                    (B) the restriction under section 1412(c)(2) of the 
                Better Utilization of Investments Leading to 
                Development Act of 2018 (22 U.S.C. 9612(c)(2)) shall 
                not apply; and
                    (C) the Corporation shall restrict the provision of 
                such support in a country described in subparagraph (A) 
                unless--
                            (i) the President certifies to the 
                        appropriate congressional committees that such 
                        support furthers the national economic or 
                        foreign policy interests of the United States; 
                        and
                            (ii) such support is--
                                    (I) designed to produce significant 
                                developmental outcomes or provide 
                                developmental benefits to the poorest 
                                population of that country; or
                                    (II) necessary to preempt or 
                                counter efforts by a strategic 
                                competitor of the United States to 
                                secure significant political or 
                                economic leverage or acquire national 
                                security-sensitive technologies or 
                                infrastructure in a country that is an 
                                ally or partner of the United States.
            (2) Definitions.--In this subsection, the terms 
        ``appropriate congressional committees'' and ``less developed 
        country'' have the meanings given those terms in section 1402 
        of the Better Utilization of Investments Leading to Development 
        Act of 2018 (22 U.S.C. 9601).

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.
            Amend the title so as to read: ``A bill to prioritize the 
        efforts of and enhance coordination among United States 
        agencies to encourage European and Eurasian countries 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.''.
                                                       Calendar No. 331

116th CONGRESS

  1st Session

                                 S. 704

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           December 17, 2019

        Reported with an amendment and an amendment to the title