[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