[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5845 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5845
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
October 28, 2025
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 2026 through 2031 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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