[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5105 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5105

 To establish a lending program for Latin America and the Caribbean to 
  reaffirm the United States commitment to sustainable and equitable 
         growth and energy security in the Western Hemisphere.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2023

Mr. Espaillat introduced the following bill; which was referred to the 
                      Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
 To establish a lending program for Latin America and the Caribbean to 
  reaffirm the United States commitment to sustainable and equitable 
         growth and energy security in the Western Hemisphere.

    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 ``Las Americas Energy Security Act''.

SEC. 2. FINDINGS; PURPOSE; STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Energy independence and security are critical for a 
        country to maintain its sovereignty, independence, and 
        sustainable economic growth.
            (2) The International Energy Agency (``IEA'') defines 
        energy security as the uninterrupted availability of energy 
        sources at an affordable price.
            (3) The IEA defines long-term energy security as primarily 
        dealing with timely investments to supply energy in line with 
        economic developments and environmental needs.
            (4) The IEA defines short-term energy security as focusing 
        on the ability of a country's energy system to react promptly 
        to sudden changes in the supply-demand balance.
            (5) The IEA's Executive Director remarked in February 2023 
        that Russia's February 2022 invasion of Ukraine had sparked an 
        ongoing global energy crisis with serious implications for 
        international energy security.
            (6) The Intergovernmental Panel on Climate Change (IPCC), a 
        United Nations body that provides regular assessments on global 
        heating, issued a synthesis report in March 2023, and found 
        that the effects of global temperature changes were ``already 
        affecting many weather and climate extremes in every region 
        across the globe,'' which has ``led to widespread adverse 
        impacts on food and water security, human health and on 
        economies and society and related losses and damages to nature 
        and people.''.
            (7) The IPCC notes that to avoid mounting loss of life, 
        biodiversity, and infrastructure, we must have ambitious, 
        accelerated action to adapt to climate change, while also 
        making rapid, deep cuts in greenhouse gas emissions.
            (8) The World Meteorological Organization's State of the 
        Climate in Latin America and the Caribbean 2021 report found 
        that--
                    (A) widespread drought across Latin America and the 
                Caribbean has had significant impact on inland shipping 
                routes, crop yields, and food production, and 
                consequently led to worsening food insecurity;
                    (B) extreme weather events affected millions of 
                people across Central America, exacerbating food 
                insecurity in countries already crippled by economic 
                shocks, COVID-19 impacts, and conflict; and
                    (C) sea-level rise poses a major risk to low-lying 
                coastal zones in Latin America and the Caribbean.
            (9) The United Nations states that facilitating more 
        reliable and affordable access to clean electricity helps 
        governments to improve the quality of other basic services, 
        such as education and healthcare. Electricity access also helps 
        diversify and strengthen local economies. Thus, increasing 
        electricity access could reduce the need to migrate to urban 
        areas and other countries.
            (10) Natural disasters of increased frequency are projected 
        to increase the displacement of people and the United Nations 
        High Commissioner for Refugees estimates that an annual average 
        of more than 20 million people have been forcibly displaced by 
        weather-related sudden onset hazards every year since 2008.
            (11) Rising commodity and energy prices, as well as other 
        global economic shocks such as those caused by natural 
        disasters, pandemics, and conflict pose a serious security risk 
        that may lead to social unrest and instability in Latin America 
        and the Caribbean.
    (b) Sense of Congress.--It is the sense of Congress that the United 
States has economic and national security interests in assisting Latin 
America and the Caribbean to achieve sustainable energy security.
    (c) Statement of Policy.--It is the policy of the United States--
            (1) to advance United States foreign policy and development 
        goals by helping Latin America and the Caribbean meet its 
        short-term energy needs;
            (2) to promote the energy security of Latin America and the 
        Caribbean by encouraging the development of accessible, 
        transparent, competitive, and solvent energy markets and 
        systems that provide diversified sources, types, and routes of 
        energy, as well as by prioritizing clean energy sources that 
        reduce carbon emissions and address the ongoing global rise in 
        temperatures;
            (3) to encourage United States public and private sector 
        investment in Latin American and Caribbean energy 
        infrastructure projects to bridge the gap between energy 
        security and commercial demand in a way that is consistent with 
        the region's current absorptive capacity, and that recognizes 
        the importance of building and widening the absorptive capacity 
        of the region;
            (4) to help facilitate the export of United States energy 
        resources, technology, and expertise to global markets in a way 
        that benefits the comprehensive energy security of Latin 
        America and the Caribbean; and
            (5) to assist partner countries in developing and 
        strengthening regulatory and investment frameworks that support 
        energy security.

SEC. 3. SOVEREIGN LENDING PROGRAM FOR ELIGIBLE LATIN AMERICAN AND 
              CARIBBEAN PARTNER COUNTRIES.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of the Treasury, with the 
concurrence of the Secretary of State, shall establish a sovereign 
lending program for eligible Latin American and Caribbean partner 
countries--
            (1) to support their short-term energy needs;
            (2) to fund projects that help them transition to renewable 
        or clean energy that reduces carbon emissions;
            (3) to fund technical assistance programs that ensure that 
        there is a continuous pipeline of clean energy projects 
        available for investment from the United States, Latin America, 
        and the Caribbean;
            (4) to provide capital and financing for United States 
        companies to make it easier to invest in renewable energy 
        projects in smaller and developing markets; and
            (5) to provide financing to partner countries to help 
        purchase battery solutions that contribute to reliable and 
        affordable electricity prices.
    (b) Application.--To be eligible to receive a loan under the 
program, an eligible Latin American or Caribbean partner country shall 
submit to the Secretary of the Treasury an application at such time, in 
such manner, and containing such information as the Secretary may 
require. At minimum, the Secretary shall require an applicant to 
provide--
            (1) information about the energy projects that will be 
        supported through these funds, including their economic and 
        technical viability, feasibility to attract funding from the 
        private sector, net carbon impact, the potential to use United 
        States goods and services during project implementation, and 
        enhancement of energy market integration;
            (2) data on how funds will support equitable job creation;
            (3) information regarding environmental impact, including 
        on biodiversity;
            (4) data on the impact upon marginalized communities; and
            (5) certification that no funds shall be used to purchase a 
        commodity from or support in any manner a corporation or state-
        owned enterprise that has an ownership relationship with the 
        Government of the People's Republic of China or the Chinese 
        Communist Party, the Government of the Russian Federation, or 
        any other foreign adversary or malign influence.
    (c) Preference.--In selecting among applications for a loan under 
this section, the Secretary of State shall give preference to an 
eligible Latin American or Caribbean partner country that shares 
democratic values, respect for human rights, and economic freedom, as 
determined by the Secretary of State, including members of the Alliance 
for Development in Democracy (the Dominican Republic, Costa Rica, 
Panama, and Ecuador) and the Caribbean Community (CARICOM).
    (d) Loan Conditions.--A loan provided under the program--
            (1) shall be--
                    (A) a zero-interest loan, not to exceed 30 years in 
                duration; or
                    (B) a low-interest concessional loan, not to exceed 
                50 years in duration;
            (2) shall not contain any requirements that an eligible 
        Latin American or Caribbean partner country engage in austerity 
        measures or policies that increase poverty and inequality, 
        diminish the quality of life, and threaten the immediate access 
        of goods and services;
            (3) shall ensure that no funds are used to purchase a 
        commodity from or support in any manner a corporation or state-
        owned enterprise that has an ownership relationship with the 
        Government of the People's Republic of China or the Chinese 
        Communist Party, the Government of the Russian Federation, or 
        any other foreign adversary or malign actor; and
            (4) shall be subject to such other terms and conditions as 
        the Secretary of the Treasury, in concurrence with the 
        Secretary of State, determines to be appropriate.
    (e) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and annually thereafter for 4 years, 
        the Secretary of the Treasury, in concurrence with the 
        Secretary of State, and in consultation with the Secretary of 
        Energy and the heads of other relevant Federal departments and 
        agencies, shall submit to the Committee on Foreign Affairs and 
        the Committee on Appropriations of the House of Representatives 
        and the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate a report on progress in the 
        implementation of the program.
            (2) Matters to be included.--The report shall--
                    (A) include a description of how the program 
                strengthens United States national security and 
                economic interests in Latin America and the Caribbean;
                    (B) include an assessment of--
                            (i) the status and effectiveness of current 
                        efforts by regional governments, multilateral 
                        development banks, and the private sector to 
                        promote energy security in Latin America and 
                        the Caribbean and to transition to clean energy 
                        practices;
                            (ii) major challenges hindering such 
                        efforts; and
                            (iii) how the United States can strengthen 
                        the effectiveness of such efforts;
                    (C) identify how activities by the Department of 
                State, the United States Agency for International 
                Development, the United States International 
                Development Finance Corporation, and other related 
                agencies can effectively be leveraged to strengthen and 
                promote energy independence and security in Latin 
                America and the Caribbean;
                    (D) assess diplomatic initiatives taken to secure 
                specific national commitments by governments of 
                eligible Latin American and Caribbean partner countries 
                to undertake efforts to promote energy security and 
                independence in the region, address corruption and rule 
                of law concerns, modernize digital and physical 
                infrastructure, improve ease of doing business, and 
                finance and incentivize energy security initiatives; 
                and
                    (E) detail coordination of efforts with relevant 
                multilateral development banks to advance energy 
                security and independence of eligible Latin American 
                and Caribbean partner countries.
    (f) Annual Audit.--The Secretary of the Treasury--
            (1) shall ensure that a full audit of the program is 
        performed on an annual basis; and
            (2) shall submit the results of the audit to the Committee 
        on Foreign Affairs and the Committee on Appropriations of the 
        House of Representatives and the Committee on Foreign Relations 
        and the Committee on Appropriations of the Senate.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of the Treasury $100,000,000 for each of 
fiscal years 2024 through 2029 to carry out the program.
    (h) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean 
partner country''--
            (1) means a country that--
                    (A) is a beneficiary country for purposes of the 
                Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 
                et seq.);
                    (B) is a member state of the Caribbean Community 
                (commonly referred to as ``CARICOM'');
                    (C) is a member state of the Alliance for 
                Development in Democracy;
                    (D) is a country in the Western Hemisphere that is 
                a party to a free trade agreement or preference program 
                with the United States; or
                    (E) is a beneficiary country of the Caribbean Basin 
                Security Initiative; and
            (2) does not include any country that--
                    (A) has been sanctioned by the United States; or
                    (B) the Secretary of State determines--
                            (i) to be a state sponsor of terrorism; or
                            (ii) to be a foreign adversary, defined as 
                        a foreign government engaged in a long-term 
                        pattern or serious instances of conduct adverse 
                        to the national security of the United States 
                        or security and safety of United States 
                        persons.

SEC. 4. SUPPORTING EFFORTS TO INCREASE ENERGY SECURITY OF ELIGIBLE 
              LATIN AMERICAN AND CARIBBEAN PARTNER COUNTRIES.

    (a) In General.--The Secretary of State, in consultation with the 
Secretary of Energy and the heads of other relevant Federal departments 
and agencies, shall, as appropriate, prioritize and expedite the 
efforts of the Department of State and those other departments and 
agencies in supporting the efforts of eligible Latin American and 
Caribbean partner countries to increase their energy security, 
including through--
            (1) providing diplomatic and political support to these 
        governments, as necessary--
                    (A) to facilitate international negotiations 
                concerning cross-border infrastructure and 
                transactions;
                    (B) to enhance and build Latin America's and the 
                Caribbean'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 to achieve energy 
                efficiency; and
            (2) providing support to improve Latin American and 
        Caribbean 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 eligible Latin American and Caribbean partner 
                countries;
                    (B) to enhance energy market integration across the 
                region; and
                    (C) to increase competition and aggregate energy 
                markets.
    (b) Project Selection.--
            (1) In general.--The Federal departments and 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 and power generation through the use of 
                a broad power mix, prioritizing renewable energy or 
                energy efficiency;
                    (ii) advances energy storage projects, smart grid 
                projects, distributed generation models, or other 
                technological innovations and digitalization of the 
                power sector, as appropriate; and
                    (iii) improves energy access for marginalized and 
                underserved communities;
                    (B) is located in an eligible Latin American or 
                Caribbean partner country; and
                    (C) can be conducted in a transparent and 
                accountable manner that mitigates any risk of 
                corruption.
            (3) Preference.--In selecting among projects that are 
        eligible under paragraph (2), the Federal departments and 
        agencies described in subsection (a) shall give preference to 
        projects that--
                    (A) link the energy systems of two or more Latin 
                American and Caribbean partner countries;
                    (B) address the impacts of sustained global 
                temperature increases;
                    (C) enhance resilience to sustained global 
                temperature increases and global economic shocks;
                    (D) are expected to enhance energy market 
                integration;
                    (E) can demonstrate sustainability by attracting 
                funding from the private sector, an international 
                financial institution, or the government of the country 
                in which the project will be carried out;
                    (F) have the potential to use United States goods 
                and services during project implementation; or
                    (G) decrease electricity prices and promote price 
                stability in the face of global economic shocks.
    (c) Types of Assistance.--
            (1) Diplomatic and political support.--The Secretary of 
        State shall provide diplomatic and political support to the 
        governments of eligible Latin American and Caribbean 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, in consultation with the United States 
        Agency for International Development, the Inter-American 
        Development Bank, the Caribbean Development Bank, and the World 
        Bank, shall provide early-stage project support with respect to 
        projects selected under subsection (b), as necessary.
            (3) Late-stage project support.--Federal departments and 
        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) Exception From Certain Limitation Under Build Act.--For 
purposes of providing support for projects under this section--
            (1) 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);
            (2) the restriction under section 1412(c)(2) of the BUILD 
        Act of 2018 (22 U.S.C. 9612(c)(2)) shall not apply; and
            (3) the Corporation shall restrict the provision of such 
        support in a country described in paragraph (1) unless--
                    (A) the President certifies to the appropriate 
                congressional committees that such support furthers the 
                national economic or foreign policy interests of the 
                United States; and
                    (B) 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.
    (e) Progress Reports.--Not later than one year after the date of 
the enactment of this Act, and annually thereafter for seven years, the 
President shall transmit to the Committee on Foreign Affairs and the 
Committee on Appropriations of the House of Representatives and the 
Committee on Foreign Relations and the Committee on Appropriations of 
the Senate a report on progress made in providing assistance for 
projects under this section that includes the following:
            (1) A description of the energy infrastructure projects the 
        United States has identified for such assistance.
            (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.
    (f) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean 
partner country'' has the meaning given that term in section 3(h).
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