[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4392 Reported in Senate (RS)]
<DOC>
Calendar No. 508
119th CONGRESS
2d Session
S. 4392
To promote United States and allied energy and mineral security, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 27, 2026
Mr. Coons (for himself, Mr. Ricketts, Mr. Hickenlooper, and Mr. Curtis)
introduced the following bill; which was read twice and referred to the
Committee on Foreign Relations
July 27, 2026
Reported by Mr. Risch, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To promote United States and allied energy and mineral security, 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 ``Energy Security Pacts
Act''.</DELETED>
<DELETED>SEC. 2. DEFINITIONS.</DELETED>
<DELETED> In this Act:</DELETED>
<DELETED> (1) Appropriate congressional committees.--The
term ``appropriate congressional committees'' means--</DELETED>
<DELETED> (A) the Committee on Foreign Relations,
the Committee on Finance, and the Committee on
Appropriations of the Senate; and</DELETED>
<DELETED> (B) the Committee on Foreign Affairs, the
Committee on Ways and Means, and the Committee on
Appropriations of the House of
Representatives.</DELETED>
<DELETED> (2) Council agency.--The term ``council agency''
means a department, agency, or organization described in
section 6(c).</DELETED>
<DELETED> (3) Critical mineral.--The term ``critical
mineral'' means any mineral on the list of critical minerals
required by section 7002(c)(3) of the Energy Act of 2020 (30
U.S.C. 1606(c)(3)) on or after January 1, 2026.</DELETED>
<DELETED> (4) Director for energy security pacts.--The term
``Director for Energy Security Pacts'' means the Director for
Energy Security Pacts described in section 4.</DELETED>
<DELETED> (5) Energy security pact.--The term ``Energy
Security Pact'' means an Energy Security Pact described in
section 3.</DELETED>
<DELETED> (6) Energy security pacts council.--The term
``Energy Security Pacts Council'' means the Energy Security
Pacts Council established under section 6.</DELETED>
<DELETED> (7) Partner country.--The term ``partner country''
means a country eligible for participation in an Energy
Security Pact.</DELETED>
<DELETED> (8) Secretary.--The term ``Secretary'' means the
Secretary of State.</DELETED>
<DELETED> (9) Under secretary.--The term ``Under Secretary''
means the Under Secretary of State for Economic Growth, Energy,
and the Environment.</DELETED>
<DELETED>SEC. 3. AUTHORITY AND FUNDING FOR ENERGY SECURITY
PACTS.</DELETED>
<DELETED> (a) In General.--The Secretary may establish multiyear
agreements (to be known as ``Energy Security Pacts'') with partner
countries under which the Secretary may coordinate and provide
assistance to enhance the energy and economic security and stability of
the United States and such partner countries, including through efforts
to counter economic coercion through the diversification of critical
mineral and energy supply chains.</DELETED>
<DELETED> (b) Funding.--</DELETED>
<DELETED> (1) Availability of amounts.--The Secretary may
make available, from amounts authorized to be appropriated for
fiscal year 2026 or any subsequent fiscal year under the
heading ``National Security Investment Programs'' in Acts
making appropriations for the Department of State, foreign
operations, and related programs (including amounts authorized
to be appropriated to the Economic Resilience Initiative),
amounts for the purpose of establishing and implementing Energy
Security Pacts.</DELETED>
<DELETED> (2) Transfers.--Funds authorized to be made
available pursuant to paragraph (1) may be transferred to, and
merged with, funds appropriated for fiscal year 2026 or any
subsequent fiscal year under the headings ``United States Trade
and Development Agency'', ``Millennium Challenge Corporation'',
``United States International Development Finance-Corporate
Capital Account'', ``United States International Development
Finance-Program Account'', ``Development Finance Corporate
Equity Investment Account'', and ``Export-Import Bank of the
United States-Program Account'' to carry out the purpose
described in paragraph (1).</DELETED>
<DELETED> (3) Consultation and notification.--The transfer
authority provided by this subsection is--</DELETED>
<DELETED> (A) in addition to any other transfer
authority provided by law; and</DELETED>
<DELETED> (B) subject to--</DELETED>
<DELETED> (i) prior consultation with--
</DELETED>
<DELETED> (I) the Committee on
Appropriations and the Committee on
Foreign Relations of the Senate;
and</DELETED>
<DELETED> (II) the Committee on
Appropriations and the Committee on
Foreign Affairs of the House of
Representatives; and</DELETED>
<DELETED> (ii) the regular notification
procedures of such committees.</DELETED>
<DELETED> (c) Assistance for the Development and Implementation of
Pacts.--The Director for Energy Security Pacts may--</DELETED>
<DELETED> (1) enter into contracts for required technical
support related to Energy Security Pacts;</DELETED>
<DELETED> (2) make grants to partner countries that meet
eligibility requirements for United States foreign assistance
for the purpose of building the administrative or technical
capacity necessary to facilitate the development and
implementation of an Energy Security Pact between the United
States and such country; and</DELETED>
<DELETED> (3) lead Country Pact Teams, in accordance with
section 4(c), to carry out the implementation of Energy
Security Pacts.</DELETED>
<DELETED> (d) Limitations.--</DELETED>
<DELETED> (1) Prohibition on military assistance and
training.--Assistance under this section may not include
military assistance or military training for a
country.</DELETED>
<DELETED> (2) Prohibition on assistance relating to united
states job loss or production displacement.--Assistance under
this section may not be provided for any project that is likely
to cause a substantial loss of United States jobs or a
substantial displacement of United States production.</DELETED>
<DELETED> (3) Prohibition on assistance relating to
environmental, health, or safety hazards.--Assistance under
this section may not be provided for any project that is likely
to cause a significant environmental, health, or safety
hazard.</DELETED>
<DELETED> (4) Foreign aid transparency and accountability
act compliance.--None of the funds authorized to be
appropriated or otherwise made available to carry out this Act
may be obligated or expended for an Energy Security Pact unless
the Secretary complies with the requirements of section 4 of
the Foreign Aid Transparency and Accountability Act of 2016 (22
U.S.C. 2394c) with respect to the Pact and all activities
associated with the Pact.</DELETED>
<DELETED> (5) Prohibition on assistance for certain
entities.--None of the funds authorized to be appropriated or
otherwise made available to carry out this Act may be obligated
or expended to provide any grant, contract, loan, or other
financial assistance to an entity in which a senior United
States Government official or an immediate family member (as
defined in section 1128(j) of the Social Security Act (42
U.S.C. 1320a-7(j))) of such official holds any ownership
interest or serves in any managerial, officer, director, or
board capacity.</DELETED>
<DELETED> (6) Other prohibition.--Assistance under this
section may not be used in any manner otherwise prohibited by
any provision of law.</DELETED>
<DELETED>SEC. 4. OFFICE OF ENERGY SECURITY PACTS.</DELETED>
<DELETED> (a) Establishment.--Not later than 180 days after the date
of the enactment of this Act, the Secretary shall establish an Office
of Energy Security Pacts, which shall perform such functions related to
the administration, coordination, and implementation of Energy Security
Pacts as the Under Secretary may prescribe.</DELETED>
<DELETED> (b) Director for Energy Security Pacts.--</DELETED>
<DELETED> (1) In general.--The Office of Energy Security
shall be led by a Director for Energy Security Pacts, who shall
be--</DELETED>
<DELETED> (A) appointed by the Secretary;
and</DELETED>
<DELETED> (B) responsible--</DELETED>
<DELETED> (i) to the Under Secretary for all
matters pertaining to the administration and
implementation of Energy Security Pacts;
and</DELETED>
<DELETED> (ii) for such other related duties
as the Secretary may from time to time
designate.</DELETED>
<DELETED> (2) Responsibilities.--In addition to the
responsibilities described in paragraph (1), the Director for
Energy Security Pacts shall be responsible for supporting the
coordination and implementation by the Department of State of
the Economic Resilience Initiative and the Energy Security
Pacts Council, including for all matters pertaining to the
following:</DELETED>
<DELETED> (A) Drafting the contribution of the
Secretary to the strategy required by section 7030(d)
of the Further Consolidated Appropriations Act, 2024
(Public Law 118-47; 138 Stat. 782).</DELETED>
<DELETED> (B) Leading the development, negotiation,
and management of all Energy Security Pacts.</DELETED>
<DELETED> (C) Consulting and coordinating with
council agencies to develop prospective Energy Security
Pacts and implement ongoing Energy Security Pacts, as
appropriate.</DELETED>
<DELETED> (D) Serving as the recipient for--
</DELETED>
<DELETED> (i) solicited proposals under
Energy Security Pacts; and</DELETED>
<DELETED> (ii) unsolicited proposals for
projects to be considered for inclusion in any
Energy Security Pact by national, regional, and
local governments and private
corporations.</DELETED>
<DELETED> (E) Signing joint agency agreements on
behalf of the Department of State, transferring or
receiving appropriated funds from any department,
agency, or independent establishment of the United
States Government on behalf of the Department of State
(with the consent of the head of such department,
agency, or establishment) for the purpose of
developing, implementing, or otherwise participating in
an Energy Security Pact, including for use as a credit
subsidy to provide loans.</DELETED>
<DELETED> (F) Coordinating with other donor
entities, including countries that are allies and
partners of the United States, the Forum on Resource
Geostrategic Engagement of the Department of State, and
other multilateral fora, for purposes of deconflicting,
augmenting, and leveraging, as appropriate, Energy
Security Pact workplans with the development and
financing activities performed by others.</DELETED>
<DELETED> (3) Annual report required.--Not less frequently
than annually until the date that is 5 years after the date of
the enactment of this Act, the Director for Energy Security
Pacts shall submit to the appropriate congressional committees,
the Executive Office of the President, the National Security
Council, and the Secretary a report describing--</DELETED>
<DELETED> (A) the current status of activities
authorized under this Act;</DELETED>
<DELETED> (B) any obstacles to the implementation of
such activities; and</DELETED>
<DELETED> (C) any updates to the multiyear financial
plan developed pursuant to section 5(d)(G).</DELETED>
<DELETED> (c) Country Pact Teams.--</DELETED>
<DELETED> (1) In general.--The Secretary, in consultation
with the Under Secretary and relevant Federal departments and
agencies, shall designate a Country Pact Team for each Energy
Security Pact.</DELETED>
<DELETED> (2) Leadership; duties.--Each Country Pact Team
shall--</DELETED>
<DELETED> (A) be led by the Director for Energy
Security Pacts, who shall regularly engage with the
Energy Security Pacts Council on matters related to the
Energy Security Pact; and</DELETED>
<DELETED> (B) manage the day-to-day activities
related to the development, negotiation,
implementation, and monitoring of the Pact.</DELETED>
<DELETED> (d) Personnel.--</DELETED>
<DELETED> (1) In general.--The Under Secretary or the Under
Secretary's designee may--</DELETED>
<DELETED> (A) detail staff to heads of council
agencies with relevant sectoral, financial, or regional
expertise for the express purpose of supporting the
negotiation or implementation of an Energy Security
Pact;</DELETED>
<DELETED> (B) request from the heads of council
agencies the detail of personnel to the Office of
Energy Security Pacts with relevant sectoral,
financial, or regional expertise, on a reimbursable
basis, for the express purpose of supporting the
negotiation or implementation of an Energy Security
Pact; and</DELETED>
<DELETED> (C) appoint, without regard to the
provisions of sections 3309 through 3318 of title 5,
United States Code, candidates directly to positions in
the competitive service, as defined in section 2102 of
that title.</DELETED>
<DELETED> (2) Detailed employees.--Any employee detailed
pursuant to a request made under paragraph (1)(B) shall remain,
for the purpose of preserving such employee's allowances,
privileges, rights, seniority, and other benefits, an employee
of the agency from which detailed.</DELETED>
<DELETED> (e) Termination.--</DELETED>
<DELETED> (1) New energy security pacts.--The authority to
enter into new Energy Security Pacts shall terminate on the
date that is 15 years after the date of the enactment of this
Act.</DELETED>
<DELETED> (2) Office; director; council.--The Office of
Energy Security Pacts, the position of Director for Energy
Security Pacts, and the Energy Security Pacts Council shall
terminate after the final Energy Security Pact
expires.</DELETED>
<DELETED> (f) Reports.--Not later than 180 days after the date of
the enactment of this Act, the Under Secretary shall submit to the
appropriate congressional committees a report that contains plans to
attract and retain diplomatic, policy, legal, and technical expertise
for civil service officers in the Office of Energy Security Pacts,
including career promotion tracks to supervisory and non-supervisory
GS-15 positions.</DELETED>
<DELETED>SEC. 5. APPROVAL, ELIGIBILITY, AND ELEMENTS OF ENERGY SECURITY
PACTS.</DELETED>
<DELETED> (a) Goal.--It shall be the goal of each Energy Security
Pact to increase reliable access to energy or electricity, including
that needed for production of critical minerals, for the United States
and the partner country to the Energy Security Pact, for the purpose of
stimulating economic growth, enabling follow-on private sector
investment, supporting the commercial competitiveness of United States
companies, or diversifying relevant supply chains.</DELETED>
<DELETED> (b) Initial Requirements.--</DELETED>
<DELETED> (1) Recommendation; analysis.--Before entering
into an Energy Security Pact--</DELETED>
<DELETED> (A) the Pact shall be recommended by the
Director for Energy Security Pacts and the Under
Secretary and approved by the Secretary; and</DELETED>
<DELETED> (B) the Director for Energy Security
Pacts, in collaboration with the Energy Security Pacts
Council and partner country, shall conduct a
constraints analysis that identifies insufficiencies in
the energy sector and supply-chain segments needed to
strengthen the partner country's energy security,
consistent with United States energy security risks and
commercial opportunities.</DELETED>
<DELETED> (2) Congressional notification.--Not later than 30
days before entering into an Energy Security Pact, the Director
for Energy Security Pacts shall--</DELETED>
<DELETED> (A) notify and consult with the
appropriate congressional committees regarding such
Pact;</DELETED>
<DELETED> (B) transmit to the appropriate
congressional committees the text of such Pact;
and</DELETED>
<DELETED> (C) provide to the appropriate
congressional committees an in-person briefing
regarding such Pact.</DELETED>
<DELETED> (c) Eligibility.--A country is eligible for participation
in an Energy Security Pact if--</DELETED>
<DELETED> (1)(A) the per capita income of the country is not
greater than the World Bank's loan threshold; or</DELETED>
<DELETED> (B) at the beginning of the year in which
negotiations are initiated, the country is eligible for support
from the World Bank's International Bank for Reconstruction and
Development or International Development Association graduation
process;</DELETED>
<DELETED> (2) the country has been identified as
strategically or commercially important for the United States
by the Secretary or the President;</DELETED>
<DELETED> (3) the Under Secretary determines that the
country has the capacity and commitment to implement the Energy
Security Pact; and</DELETED>
<DELETED> (4) the country is not a foreign country of
concern (as defined in section 10612(a) of the Research and
Development, Competition, and Innovation Act (42 U.S.C.
19221(a))).</DELETED>
<DELETED> (d) Energy Security Pact Elements.--</DELETED>
<DELETED> (1) In general.--Each Energy Security Pact shall
contain the following:</DELETED>
<DELETED> (A) The constraints analysis conducted
under subsection (b)(1)(B).</DELETED>
<DELETED> (B) A demonstrated effort to integrate the
national economic development strategy of the partner
country.</DELETED>
<DELETED> (C) Specific objectives that the partner
country and the United States expect to achieve during
the term of the Energy Security Pact, including--
</DELETED>
<DELETED> (i) increased energy production,
reliability, and affordability in the partner
country;</DELETED>
<DELETED> (ii) economic growth in the
partner country that may reduce the need for
foreign assistance;</DELETED>
<DELETED> (iii) improved access to energy,
in consultation with affected communities and
civil society; and</DELETED>
<DELETED> (iv) improved infrastructure that
enables access to critical minerals mining and
processing.</DELETED>
<DELETED> (D) The responsibilities of the partner
country and the United States in the achievement of
such objectives.</DELETED>
<DELETED> (E) Regular quantitative benchmarks to
measure, as appropriate, progress toward achieving such
objectives.</DELETED>
<DELETED> (F) An identification of the intended
impact of the activities carried out in accordance with
the Energy Security Pact.</DELETED>
<DELETED> (G) A multiyear financial plan, updated
annually until the expiration of the term of the Energy
Security Pact, that--</DELETED>
<DELETED> (i) estimates the amount of
contributions, commitments, and other
participation to be provided by council
agencies, the partner country, multilateral
development banks, and other development
finance institutions as applicable;</DELETED>
<DELETED> (ii) ensures that the Pact
incorporates and is complementary to
development programs administered by other
Federal departments and agencies, so that
United States funds are used to improve
feasibility for private sector investment to
further development goals;</DELETED>
<DELETED> (iii) identifies proposed
mechanisms to implement the plan and provide
oversight of the plan; and</DELETED>
<DELETED> (iv) describes how the
requirements described in this subsection will
be met, including the role of the private
sector in the achievement of such
requirements.</DELETED>
<DELETED> (H) As appropriate, a description of the
current and potential participation of other donors,
including council agencies or countries that are allies
and partners of the United States, in the achievement
of the objectives described in subparagraph
(C).</DELETED>
<DELETED> (I) A description of how oversight and
transparency of the foreign assistance provided through
the Economic Resilience Initiative will be
maintained.</DELETED>
<DELETED> (J) As appropriate, a process or processes
for considering--</DELETED>
<DELETED> (i) solicited proposals under the
Energy Security Pact; and</DELETED>
<DELETED> (ii) unsolicited proposals by
national, regional, and local governments and
private corporations.</DELETED>
<DELETED> (K) A requirement that open, fair,
competitive, and transparent procedures are used in the
administration of grants or cooperative agreements or
the procurement of goods and services for the
accomplishment of objectives under the Energy Security
Pact.</DELETED>
<DELETED> (L) The strategy of the partner country to
sustain progress made toward achieving the objectives
described in subparagraph (C) after expiration of the
Energy Security Pact.</DELETED>
<DELETED> (M) A description of the role of council
agencies in any design, implementation, and monitoring
of programs and activities funded through the Energy
Security Pact.</DELETED>
<DELETED> (N) A description of any contribution, as
appropriate, from the partner country relative to its
national budget and taking into account the prevailing
economic conditions, toward meeting the objectives
described in subparagraph (C).</DELETED>
<DELETED> (2) Prohibition on taxation.--In addition to the
elements described in paragraph (1), each Energy Security Pact
shall contain a provision stating that assistance provided by
the United States under the Energy Security Pact shall be
exempt from taxation by the government of the partner
country.</DELETED>
<DELETED> (3) Energy sources.--An Energy Security Pact shall
not exclude, as a matter of policy, any specific type of energy
or power generation.</DELETED>
<DELETED> (e) Notification Regarding Increase or Extension of
Assistance.--Not later than 15 days after making a determination and
before distributing funds to increase or extend assistance under an
Energy Security Pact with a partner country, the Secretary, acting
through the Director for Energy Security Pacts, shall submit to the
appropriate congressional committees a written notification that
contains the following:</DELETED>
<DELETED> (1) A justification for the
determination.</DELETED>
<DELETED> (2) A detailed summary of the proposed increase
in, or extension of, assistance under the Energy Security
Pact.</DELETED>
<DELETED> (3) A copy of the full text of the amendment to
the Energy Security Pact.</DELETED>
<DELETED> (f) Duration.--The duration of an Energy Security Pact may
not exceed 10 years.</DELETED>
<DELETED> (g) Subsequent and Concurrent Pacts.--A partner country
that has entered into, and has in effect, an Energy Security Pact may
enter into, and concurrently have in effect, additional Energy Security
Pacts.</DELETED>
<DELETED> (h) Rule of Construction.--Nothing in this section shall
be construed to alter, supersede, or otherwise affect any authorities,
restrictions, or eligibility requirements existing on the date of the
enactment of this Act applicable to foreign assistance programs
administered by any Federal department or agency, including
determinations regarding the eligibility of countries for such
assistance made pursuant to the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) or any other provision of law.</DELETED>
<DELETED>SEC. 6. ENERGY SECURITY PACTS COUNCIL.</DELETED>
<DELETED> (a) Establishment.--Not later than 90 days after the date
of the enactment of this Act, the President shall establish an Energy
Security Pacts Council (in this section referred to as the ``Council'')
to coordinate and implement Energy Security Pacts.</DELETED>
<DELETED> (b) Chairperson.--The Council shall be chaired by the
Secretary.</DELETED>
<DELETED> (c) Composition.--The Council shall be composed of
principal officers of executive departments from the
following:</DELETED>
<DELETED> (1) The United States International Development
Finance Corporation.</DELETED>
<DELETED> (2) The Department of Energy.</DELETED>
<DELETED> (3) The United States Trade and Development
Agency.</DELETED>
<DELETED> (4) The Export-Import Bank of the United
States.</DELETED>
<DELETED> (5) The Department of Commerce.</DELETED>
<DELETED> (6) The United States Trade
Representative.</DELETED>
<DELETED> (7) The Department of Defense.</DELETED>
<DELETED> (8) The Department of State.</DELETED>
<DELETED> (9) The Department of the Treasury.</DELETED>
<DELETED> (10) The Millennium Challenge
Corporation.</DELETED>
<DELETED> (11) The Department of the Interior.</DELETED>
<DELETED> (12) Any other Federal department, agency, or
organization that the President determines to be
appropriate.</DELETED>
<DELETED> (d) Vacancies.--When there is a vacancy in the office of a
principal officer of an executive department, the individual acting in
the capacity of principal officer shall serve as a member of the
Council until a new principal officer of the executive department is
appointed.</DELETED>
<DELETED> (e) Delegation.--The principal officer of an executive
department may delegate a senior official (as described in section 1(d)
of the State Department Basic Authorities Act of 1956 (22 U.S.C.
2651a(d)) or following other relevant agency guidance) to serve on the
Council, as appropriate.</DELETED>
<DELETED> (f) Meetings.--The Council shall meet not less frequently
than quarterly.</DELETED>
<DELETED> (g) Duties.--The Council shall--</DELETED>
<DELETED> (1) coordinate Energy Security Pact-related
activities of the council agencies;</DELETED>
<DELETED> (2) make annual recommendations to the Director
for Energy Security Pacts, taking into account the stated
priorities of the National Security Council and the President,
regarding the prioritization of countries eligible for Energy
Security Pact negotiation; and</DELETED>
<DELETED> (3) make recommendations to improve interagency
collaboration for purposes of promoting energy security and
United States national security interests abroad.</DELETED>
<DELETED> (h) Sunshine Act Compliance.--Meetings of the Council are
subject to section 552b of title 5, United States Code (commonly
referred to as the ``Government in the Sunshine Act'').</DELETED>
<DELETED>SEC. 7. EVALUATION BY GOVERNMENT ACCOUNTABILITY
OFFICE.</DELETED>
<DELETED> Not later than 2 years after the date of the enactment of
this Act, and annually thereafter until the final Energy Security Pact
expires, the Comptroller General of the United States shall submit to
Congress an evaluation of the efficiency and development impact of
projects supported by an Energy Security Pact.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Security Pacts Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate; and
(B) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives.
(2) Council agency.--The term ``council agency'' means a
department, agency, or organization described in section 6(c).
(3) Critical mineral.--The term ``critical mineral'' means
any mineral on the list of critical minerals required by
section 7002(c)(3) of the Energy Act of 2020 (30 U.S.C.
1606(c)(3)) on or after January 1, 2026.
(4) Director for energy security pacts.--The term
``Director for Energy Security Pacts'' means the Director for
Energy Security Pacts described in section 4.
(5) Energy security pact.--The term ``Energy Security
Pact'' means an Energy Security Pact described in section 3.
(6) Energy security pacts council.--The term ``Energy
Security Pacts Council'' means the Energy Security Pacts
Council established under section 6.
(7) Partner country.--The term ``partner country'' means a
country eligible for participation in an Energy Security Pact.
(8) Reliable access to energy or electricity.--The term
``reliable access to energy or electricity'' means access to
energy or electricity that enables the electric system to
consistently meet demand through a combination of generation,
forecasting, storage, and grid management tools available
across all resources and technologies.
(9) Secretary.--The term ``Secretary'' means the Secretary
of State.
(10) Senior united states government official.--The term
``senior United States Government official'' means--
(A) any individual serving in a position at level I
of the Executive Schedule under section 5312 of title
5, United States Code; and
(B) any individual serving as a presidential
special envoy.
(11) Under secretary.--The term ``Under Secretary'' means
the Under Secretary of State for Economic Growth, Energy, and
the Environment.
SEC. 3. AUTHORITY FOR ENERGY SECURITY PACTS.
(a) In General.--The Secretary may carry out an initiative to
establish multiyear agreements, to be known as ``Energy Security
Pacts'', with partner countries for the purpose of enhancing the energy
and economic security and stability of the United States and partner
countries, including through efforts to counter economic coercion
through the diversification of critical mineral and energy supply
chains.
(b) Assistance for the Development and Implementation of Pacts.--
The Director for Energy Security Pacts may--
(1) enter into contracts for required technical support
related to Energy Security Pacts;
(2) make grants to partner countries that meet eligibility
requirements for United States foreign assistance for the
purpose of building the administrative or technical capacity
necessary to facilitate the development and implementation of
an Energy Security Pact between the United States and such
country; and
(3) lead Country Pact Teams, in accordance with section
4(c), to carry out the implementation of Energy Security Pacts.
(c) Limitations and Conditions.--
(1) Prohibition on military assistance and training.--
Assistance under this section may not include military
assistance or military training for a country.
(2) Condition on assistance relating to american
competitiveness or production displacement.--Prior to funding a
project pursuant to an Energy Security Pact, the Secretary, in
consultation with other relevant departments and agencies,
should conduct an assessment on whether the proposed project
would undermine the competitiveness or displace production of
relevant domestic suppliers.
(3) Prohibition on assistance relating to environmental,
health, or safety hazards.--Assistance under this section may
not be provided for any project that is likely to cause a
significant environmental, health, or safety hazard.
(4) Foreign aid transparency and accountability act
compliance.--None of the funds authorized to be appropriated or
otherwise made available to carry out this Act may be obligated
or expended for an Energy Security Pact unless the Secretary
complies with the requirements of section 4 of the Foreign Aid
Transparency and Accountability Act of 2016 (22 U.S.C. 2394c)
with respect to the Pact and all activities associated with the
Pact.
(5) Prohibition on assistance for certain entities.--None
of the funds authorized to be appropriated or otherwise made
available to carry out this Act may be obligated or expended to
provide any grant, contract, or other financial assistance to
an entity in which a senior United States Government official
or an immediate family member (as defined in section 1128(j) of
the Social Security Act (42 U.S.C. 1320a-7(j))) of such
official holds any ownership interest or serves in any
managerial, officer, director, or board capacity.
(6) Other prohibition.--Assistance under this section may
not be used in any manner otherwise prohibited by any provision
of law.
SEC. 4. DIRECTOR OF ENERGY SECURITY PACTS.
(a) Director for Energy Security Pacts.--
(1) In general.--The activities described in this Act may
be led by a Director for Energy Security Pacts, who may be--
(A) appointed by the Secretary; and
(B) responsible--
(i) to the Under Secretary for all matters
pertaining to the administration and
implementation of Energy Security Pacts; and
(ii) for such other related duties as the
Secretary may from time to time designate.
(2) Responsibilities.--In addition to the responsibilities
described in paragraph (1), the Director for Energy Security
Pacts should be responsible for supporting the coordination and
implementation of the Energy Security Pacts Council, including
for matters pertaining to the following:
(A) Leading the development, negotiation, and
management of Energy Security Pacts.
(B) Consulting and coordinating with council
agencies to develop prospective Energy Security Pacts
and implement ongoing Energy Security Pacts, as
appropriate.
(C) Serving as the recipient for--
(i) solicited proposals under Energy
Security Pacts; and
(ii) unsolicited proposals for projects to
be considered for inclusion in any Energy
Security Pact by national, regional, and local
governments and private corporations.
(D) Signing interagency agreements from
departments, agencies, or independent establishments of
the United States Government on behalf of the
Department of State (with the consent of the head of
such department, agency, or establishment) for the
purpose of developing, implementing, or otherwise
participating in an Energy Security Pact.
(E) Coordinating with other donor entities,
including countries that are allies and partners of the
United States, the Forum on Resource Geostrategic
Engagement of the Department of State, and other
multilateral fora, for purposes of deconflicting,
augmenting, and leveraging, as appropriate, Energy
Security Pact workplans with the development and
financing activities performed by others.
(3) Annual report required.--Not less frequently than
annually until the date that is 5 years after the date of the
enactment of this Act, the Director for Energy Security Pacts
shall submit to the appropriate congressional committees, the
Executive Office of the President, the National Security
Council, and the Secretary a report describing--
(A) the current status and expenditures of
activities authorized under this Act;
(B) any obstacles to the implementation of such
activities; and
(C) any updates to the multiyear financial plan
developed pursuant to section 5(d)(G).
(b) Country Pact Teams.--
(1) In general.--The Secretary, in consultation with the
Under Secretary and relevant Federal departments and agencies,
may designate a Country Pact Team for each Energy Security
Pact.
(2) Leadership; duties.--Each Country Pact Team shall--
(A) be led by the Director for Energy Security
Pacts, who may regularly engage with the Energy
Security Pacts Council on matters related to the Energy
Security Pact; and
(B) manage the day-to-day activities related to the
development, negotiation, implementation, and
monitoring of the Pact.
(c) Personnel.--
(1) In general.--The Under Secretary or the Under
Secretary's designee may--
(A) upon request from the heads of relevant Federal
departments and agencies, detail staff, on a
reimbursable basis, to heads of council agencies with
relevant sectoral, financial, or regional expertise for
the express purpose of supporting the negotiation or
implementation of an Energy Security Pact;
(B) request from the heads of council agencies the
detail of personnel to the Director of Energy Security
Pacts with relevant sectoral, financial, or regional
expertise, on a reimbursable basis, for the express
purpose of supporting the negotiation or implementation
of an Energy Security Pact; and
(C) appoint, without regard to the provisions of
sections 3309 through 3318 of title 5, United States
Code, candidates directly to positions in the
competitive service, as defined in section 2102 of that
title.
(2) Detailed employees.--Any employee detailed pursuant to
a request made under paragraph (1)(A) shall remain, for the
purpose of preserving such employee's allowances, privileges,
rights, seniority, and other benefits, an employee of the
agency from which detailed.
(d) Termination.--
(1) New energy security pacts.--The authority to enter into
new Energy Security Pacts shall terminate on the date that is
15 years after the date of the enactment of this Act.
(2) Director; council.--The position of Director for Energy
Security Pacts and the Energy Security Pacts Council shall
terminate 30 days after the final Energy Security Pact expires.
(e) Reports.--Not later than 180 days after the date of the
enactment of this Act, the Under Secretary shall submit to the
appropriate congressional committees a report that contains plans to
attract and retain diplomatic, policy, legal, and technical expertise
for civil service officers to work with the Director of Energy Security
Pacts, including career promotion tracks to supervisory and non-
supervisory GS-15 positions.
SEC. 5. APPROVAL, ELIGIBILITY, AND ELEMENTS OF ENERGY SECURITY PACTS.
(a) Goal.--It shall be the goal of each Energy Security Pact to
increase reliable access to energy or electricity for the United States
and the partner country to the Energy Security Pact, for the purpose of
stimulating economic growth, promoting United States mineral production
where possible, enabling follow-on private sector investment,
supporting the commercial competitiveness of United States companies,
or diversifying relevant supply chains.
(b) Initial Requirements.--
(1) Recommendation; analysis.--Before entering into an
Energy Security Pact--
(A) the Pact shall be recommended by the Director
for Energy Security Pacts and the Under Secretary and
approved by the Secretary, after consultation with the
United States Ambassador, or in the absence of an
Ambassador, the Charge d'Affaires, for the partner
country; and
(B) the Director for Energy Security Pacts, in
collaboration with the Energy Security Pacts Council
and the partner country, shall conduct a constraints
analysis that--
(i) identifies insufficiencies in the
energy sector and supply-chain segments needed
to strengthen the partner country's energy
security, consistent with United States energy
security risks and commercial opportunities;
and
(ii) includes an assessment of the partner
country's ability to address shared critical
mineral supply chain vulnerabilities.
(2) Congressional notification.--Not later than 30 days
before entering into an Energy Security Pact, the Director for
Energy Security Pacts shall--
(A) notify and consult with the appropriate
congressional committees regarding such Pact;
(B) transmit to the appropriate congressional
committees the text of such Pact and additional
documentation that describes the implementation of such
Pact; and
(C) provide to the appropriate congressional
committees an in-person briefing regarding such Pact.
(c) Eligibility.--A country is eligible for participation in an
Energy Security Pact if--
(1)(A) the per capita income of the country is not greater
than the World Bank's loan threshold; or
(B) at the beginning of the year in which negotiations are
initiated, the country is eligible for support from the World
Bank's International Bank for Reconstruction and Development or
International Development Association graduation process; and
(2)(A) the country has deposits of critical minerals
strategically or commercially important for the United States;
or
(B) United States adversary encroachment into the country's
energy system poses a threat to the national security of the
United States; and
(3) the country is not a covered nation (as defined in
section 4872(f) of title 10, United States Code).
(d) Energy Security Pact Elements.--
(1) In general.--Each Energy Security Pact shall contain
the following:
(A) The constraints analysis conducted under
subsection (b)(1)(B).
(B) A demonstrated effort to integrate the national
economic development strategy of the partner country.
(C) Specific objectives that the partner country
and the United States expect to achieve during the term
of the Energy Security Pact, including--
(i) increased energy production,
reliability, and affordability in the partner
country;
(ii) economic growth in the partner country
that may reduce the need for foreign
assistance;
(iii) improved access to energy, in
consultation with affected communities and
civil society; and
(iv) improved infrastructure that enables
access to critical minerals mining and
processing.
(D) The responsibilities of the partner country and
the United States in the achievement of such
objectives.
(E) Regular quantitative benchmarks to measure, as
appropriate, progress toward achieving such objectives.
(F) An identification of the intended impact of the
activities carried out in accordance with the Energy
Security Pact.
(G) A multiyear financial plan, updated annually
until the expiration of the term of the Energy Security
Pact, that--
(i) estimates the amount of contributions,
commitments, and other participation to be
provided by council agencies, the partner
country, multilateral development banks, and
other development finance institutions as
applicable;
(ii) ensures that the Pact incorporates and
is complementary to development programs
administered by other Federal departments and
agencies, so that United States funds are used
to improve feasibility for private sector
investment to further development goals;
(iii) identifies proposed mechanisms to
implement the plan and provide oversight of the
plan; and
(iv) describes how the requirements
described in this subsection will be met,
including the role of the private sector in the
achievement of such requirements.
(H) As appropriate, a description of the current
and potential participation of other donors, including
council agencies or countries that are allies and
partners of the United States, in the achievement of
the objectives described in subparagraph (C).
(I) A description of how oversight and transparency
of the foreign assistance provided through the Energy
Security Pact will be maintained.
(J) As appropriate, a process or processes for
considering--
(i) solicited proposals under the Energy
Security Pact; and
(ii) unsolicited proposals by national,
regional, and local governments and private
corporations.
(K) A requirement that open, fair, competitive, and
transparent procedures are used in the administration
of grants or cooperative agreements or the procurement
of goods and services for the accomplishment of
objectives under the Energy Security Pact.
(L) The strategy of the partner country to sustain
progress made toward achieving the objectives described
in subparagraph (C) after expiration of the Energy
Security Pact.
(M) A description of the role of council agencies
in any design, implementation, and monitoring of
programs and activities funded through the Energy
Security Pact.
(N) A description of any contribution, as
appropriate, from the partner country relative to its
national budget and taking into account the prevailing
economic conditions, toward meeting the objectives
described in subparagraph (C).
(2) Prohibition on taxation.--In addition to the elements
described in paragraph (1), each Energy Security Pact shall
contain a provision stating that assistance provided by the
United States under the Energy Security Pact shall be exempt
from taxation by the government of the partner country.
(3) Energy sources.--An Energy Security Pact shall not
exclude, as a matter of policy, any specific type of energy or
power generation.
(e) Notification Regarding Increase or Extension of Assistance.--
Not later than 30 days after making a determination and before
distributing funds to increase or extend assistance under an Energy
Security Pact with a partner country, the Secretary shall submit to the
appropriate congressional committees a written notification that
contains the following:
(1) A justification for the determination.
(2) A detailed summary of the proposed increase in, or
extension of, assistance under the Energy Security Pact.
(3) A copy of the full text of the amendment to the Energy
Security Pact.
(f) Duration.--The duration of an Energy Security Pact shall not
exceed 10 years.
(g) Subsequent and Concurrent Pacts.--A partner country that has
entered into, and has in effect, an Energy Security Pact may enter
into, and concurrently have in effect, not more than one additional
Energy Security Pact.
(h) Rule of Construction.--Nothing in this section shall be
construed to alter, supersede, or otherwise affect any authorities,
restrictions, or eligibility requirements existing on the date of the
enactment of this Act applicable to foreign assistance programs
administered by any Federal department or agency, including
determinations regarding the eligibility of countries for such
assistance made pursuant to the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) or any other provision of law.
SEC. 6. ENERGY SECURITY PACTS COUNCIL.
(a) Establishment.--Not later than 90 days after the date of the
enactment of this Act, the President should establish an Energy
Security Pacts Council (referred to in this section as the ``Council'')
to coordinate and implement Energy Security Pacts.
(b) Chairperson.--The Council may be chaired by the Secretary.
(c) Composition.--The Council may be composed of principal officers
of executive departments from the following departments and agencies:
(1) The United States International Development Finance
Corporation.
(2) The Department of Energy.
(3) The United States Trade and Development Agency.
(4) The Export-Import Bank of the United States.
(5) The Department of Commerce.
(6) The United States Trade Representative.
(7) The Department of Defense.
(8) The Department of State.
(9) The Department of the Treasury.
(10) The Millennium Challenge Corporation.
(11) The Department of the Interior.
(12) Any other Federal department, agency, or organization
that the President determines to be appropriate.
(d) Vacancies.--When there is a vacancy in the office of a
principal officer of an executive department, the individual acting in
the capacity of principal officer shall serve as a member of the
Council until a new principal officer of the executive department is
appointed.
(e) Designation.--The principal officer of an executive department
may designate a senior official of such department to serve on the
Council, as appropriate.
(f) Meetings.--The Council should meet not less frequently than
quarterly.
(g) Duties.--The Council should--
(1) coordinate Energy Security Pact-related activities of
the council agencies;
(2) make annual recommendations to the Director for Energy
Security Pacts, taking into account the stated priorities of
the National Security Council and the President, regarding the
prioritization of countries eligible for Energy Security Pact
negotiation; and
(3) make recommendations to improve interagency
collaboration for purposes of promoting energy security and
United States national security interests abroad.
(h) Sunshine Act Compliance.--Meetings of the Council are subject
to section 552b of title 5, United States Code (commonly referred to as
the ``Government in the Sunshine Act'').
SEC. 7. EVALUATION BY GOVERNMENT ACCOUNTABILITY OFFICE.
Not later than 2 years after the date of the enactment of this Act,
and annually thereafter until the final Energy Security Pact expires,
the Comptroller General of the United States shall submit to Congress
an evaluation of the efficiency and development impact of projects
supported by an Energy Security Pact.
Calendar No. 508
119th CONGRESS
2d Session
S. 4392
_______________________________________________________________________
A BILL
To promote United States and allied energy and mineral security, and
for other purposes.
_______________________________________________________________________
July 27, 2026
Reported with an amendment