[Congressional Record Volume 144, Number 93 (Tuesday, July 14, 1998)]
[Senate]
[Pages S8152-S8159]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TROPICAL FOREST PROTECTION ACT OF 1998
Mr. ROBERTS. I ask unanimous consent that the Senate proceed to the
[[Page S8153]]
consideration of Calendar No. 420, S. 1758.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report.
The assistant legislative clerk read as follows:
A bill (S. 1758) to amend the Foreign Assistance Act of
1961 to facilitate protection of tropical forests through
debt reduction with developing countries with tropical
forests.
There being no objection, the Senate proceeded to consider the
bill which had been reported from the Committee on Foreign Relations,
with amendments, as follows:
(The parts of the bill intended to be stricken are shown in boldface
brackets and the parts of the bill intended to be inserted are shown in
italic.)
S. 1758
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH
TROPICAL FORESTS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)
is amended by adding at the end the following:
``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS
``SEC. 801. SHORT TITLE.
``This part may be cited as the `Tropical Forest
Conservation Act of 1998'.
``SEC. 802. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds the following:
``(1) It is the established policy of the United States to
support and seek protection of tropical forests around the
world.
``(2) Tropical forests provide a wide range of benefits to
humankind by--
``(A) harboring a major share of the Earth's biological and
terrestrial resources, which are the basis for developing
pharmaceutical products and revitalizing agricultural crops;
``(B) playing a critical role as carbon sinks in reducing
greenhouse gases in the atmosphere, thus moderating potential
global climate change; and
``(C) regulating hydrological cycles on which far-flung
agricultural and coastal resources depend.
``(3) International negotiations and assistance programs to
conserve forest resources have proliferated over the past
decade, but the rapid rate of tropical deforestation
continues unabated.
``(4) Developing countries with urgent needs for investment
and capital for development have allocated a significant
amount of their forests to logging concessions.
``(5) Poverty and economic pressures on the populations of
developing countries have, over time, resulted in clearing of
vast areas of forest for conversion to agriculture, which is
often unsustainable in the poor soils underlying tropical
forests.
``(6) Debt reduction can reduce economic pressures on
developing countries and result in increased protection for
tropical forests.
``(7) Finding economic benefits to local communities from
sustainable uses of tropical forests is critical to the
protection of tropical forests.
``(b) Purposes.--The purposes of this part are--
``(1) to recognize the values received by United States
citizens from protection of tropical forests;
``(2) to facilitate greater protection of tropical forests
(and to give priority to protecting tropical forests with the
highest levels of biodiversity and under the most severe
threat) by providing for the alleviation of debt in countries
where tropical forests are located, thus allowing the use of
additional resources to protect these critical resources and
reduce economic pressures that have led to deforestation;
``(3) to ensure that resources freed from debt in such
countries are targeted to protection of tropical forests and
their associated values; and
``(4) to rechannel existing resources to facilitate the
protection of tropical forests.
``SEC. 803. DEFINITIONS.
``As used in this part:
``(1) Administering body.--The term `administering body'
means the entity provided for in section 809(c).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on International Relations and the
Committee on Appropriations of the House of Representatives;
and
``(B) the Committee on Foreign Relations and the Committee
on Appropriations of the Senate.
``(3) Beneficiary country.--The term `beneficiary country'
means an eligible country with respect to which the authority
of section 806(a)(1), section 807(a)(1), or paragraph (1) or
(2) of section 808(a) is exercised.
``(4) Board.--The term `Board' means the board referred to
in section 811.
``(5) Developing country with a tropical forest.--The term
`developing country with a tropical forest' means--
``(A)(i) a country that has a per capita income of $725 or
less in 1994 United States dollars (commonly referred to as
`low-income country'), as determined and adjusted on an
annual basis by the International Bank for Reconstruction and
Development in its World Development Report; or
``(ii) a country that has a per capita income of more than
$725 but less than $8,956 in 1994 United States dollars
(commonly referred to as `middle-income country'), as
determined and adjusted on an annual basis by the
International Bank for Reconstruction and Development in its
World Development Report; and
``(B) a country that contains at least one tropical forest
that is globally outstanding in terms of its biological
diversity or represents one of the larger intact blocks of
tropical forests left, on a continental or global scale.
``(6) Eligible country.--The term `eligible country' means
a country designated by the President in accordance with
section 805.
``(7) Tropical forest agreement.--The term `Tropical Forest
Agreement' or `Agreement' means a Tropical Forest Agreement
provided for in section 809.
``(8) Tropical forest facility.--The term `Tropical Forest
Facility' or `Facility' means the Tropical Forest Facility
established in the Department of the Treasury by section 804.
``(9) Tropical forest fund.--The term `Tropical Forest
Fund' or `Fund' means a Tropical Forest Fund provided for in
section 810.
``SEC. 804. ESTABLISHMENT OF THE FACILITY.
``There is established in the Department of the Treasury an
entity to be known as the `Tropical Forest Facility' for the
purpose of providing for the administration of debt reduction
in accordance with this part.
``SEC. 805. ELIGIBILITY FOR BENEFITS.
``(a) In General.--To be eligible for benefits from the
Facility under this part, a country shall be a developing
country with a tropical forest--
``(1) whose government meets the requirements applicable to
Latin American or Caribbean countries under paragraphs (1)
through (5) and (7) of section 703(a) of this Act; and
``(2) that has put in place major investment reforms, as
evidenced by the conclusion of a bilateral investment treaty
with the United States, implementation of an investment
sector loan with the Inter-American Development Bank, World
Bank-supported investment reforms, or other measures, as
appropriate.
``(b) Eligibility Determinations.--
``(1) In general.--Consistent with subsection (a), the
President shall determine whether a country is eligible to
receive benefits under this part.
``(2) Congressional notification.--The President shall
notify the appropriate congressional committees of his
intention to designate a country as an eligible country at
least 15 days in advance of any formal determination.
``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A
RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN
ASSISTANCE ACT OF 1961.
``(a) Authority To Reduce Debt.--
``(1) Authority.--The President may reduce the amount owed
to the United States (or any agency of the United States)
that is outstanding as of January 1, 1998, as a result of
concessional loans made to an eligible country by the United
States under part I of this Act, chapter 4 of part II of this
Act, or predecessor foreign economic assistance legislation.
``(2) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to this section,
there are authorized to be appropriated to the President--
``(A) $25,000,000 for fiscal year 1999;
``(B) $75,000,000 for fiscal year 2000; and
``(C) $100,000,000 for fiscal year 2001.
``(3) Certain prohibitions inapplicable.--
``(A) In general.--A reduction of debt pursuant to this
section shall not be considered assistance for purposes of
any provision of law limiting assistance to a country.
``(B) Additional requirement.--The authority of this
section may be exercised notwithstanding section 620(r) of
this Act or section 321 of the International Development and
Food Assistance Act of 1975.
``(b) Implementation of Debt Reduction.--
``(1) In general.--Any debt reduction pursuant to
subsection (a) shall be accomplished at the direction of the
Facility by the exchange of a new obligation for obligations
of the type referred to in subsection (a) outstanding as of
the date specified in subsection (a)(1).
``(2) Exchange of obligations.--
``(A) In general.--The Facility shall notify the agency
primarily responsible for administering part I of this Act of
an agreement entered into under paragraph (1) with an
eligible country to exchange a new obligation for outstanding
obligations.
``(B) Additional requirement.--At the direction of the
Facility, the old obligations that are the subject of the
agreement shall be canceled and a new debt obligation for the
country shall be established relating to the agreement, and
the agency primarily responsible for administering part I of
this Act shall make an adjustment in its accounts to reflect
the debt reduction.
``(c) Additional Terms and Conditions.--The following
additional terms and conditions shall apply to the reduction
of debt under subsection (a)(1) in the same manner as such
terms and conditions apply to the reduction of debt under
section 704(a)(1) of this Act:
``(1) The provisions relating to repayment of principal
under section 705 of this Act.
[[Page S8154]]
``(2) The provisions relating to interest on new
obligations under section 706 of this Act.
``SEC. 807. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A
RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
ACT OF 1954.
``(a) Authority To Reduce Debt.--
``(1) Authority.--Notwithstanding any other provision of
law, the President may reduce the amount owed to the United
States (or any agency of the United States) that is
outstanding as of January 1, 1998, as a result of any credits
extended under title I of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a
country eligible for benefits from the Facility.
``(2) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to this section,
there are authorized to be appropriated to the President--
``(A) $25,000,000 for fiscal year 1999;
``(B) $50,000,000 for fiscal year 2000; and
``(C) $50,000,000 for fiscal year 2001.
``(b) Implementation of Debt Reduction.--
``(1) In general.--Any debt reduction pursuant to
subsection (a) shall be accomplished at the direction of the
Facility by the exchange of a new obligation for obligations
of the type referred to in subsection (a) outstanding as of
the date specified in subsection (a)(1).
``(2) Exchange of obligations.--
``(A) In general.--The Facility shall notify the Commodity
Credit Corporation of an agreement entered into under
paragraph (1) with an eligible country to exchange a new
obligation for outstanding obligations.
``(B) Additional requirement.--At the direction of the
Facility, the old obligations that are the subject of the
agreement shall be canceled and a new debt obligation shall
be established for the country relating to the agreement, and
the Commodity Credit Corporation shall make an adjustment in
its accounts to reflect the debt reduction.
``(c) Additional Terms and Conditions.--The following
additional terms and conditions shall apply to the reduction
of debt under subsection (a)(1) in the same manner as such
terms and conditions apply to the reduction of debt under
section 604(a)(1) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1738c):
``(1) The provisions relating to repayment of principal
under section 605 of such Act.
``(2) The provisions relating to interest on new
obligations under section 606 of such Act.
``SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND
DEBT BUYBACKS.
``(a) Loans and Credits Eligible for Sale, Reduction, or
Cancellation.--
``(1) Debt-for-nature swaps.--
``(A) In general.--Notwithstanding any other provision of
law, the President may, in accordance with this section, sell
to any eligible purchaser described in subparagraph (B) any
concessional loans described in section 806(a)(1) or any
credits described in section 807(a)(1), or on receipt of
payment from an eligible purchaser described in subparagraph
(B), reduce or cancel such loans (or credits) or portion
thereof, only for the purpose of facilitating a debt-for-
nature swap to support eligible activities described in
section 809(d).
``(B) Eligible purchaser described.--A loan or credit may
be sold, reduced, or canceled under subparagraph (A) only to
a purchaser who presents plans satisfactory to the President
for using the loan or credit for the purpose of engaging in
debt-for-nature swaps to support eligible activities
described in section 809(d).
``(C) Consultation requirement.--Before the sale under
subparagraph (A) to any eligible purchaser described in
subparagraph (B), or any reduction or cancellation under such
subparagraph (A), of any loan or credit made to an eligible
country, the President shall consult with the country
concerning the amount of loans or credits to be sold,
reduced, or canceled and their uses for debt-for-nature swaps
to support eligible activities described in section 809(d).
``(D) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to subparagraph
(A), amounts authorized to appropriated under sections
806(a)(2) and 807(a)(2) shall be made available for such
reduction of debt pursuant to subparagraph (A).
``(2) Debt buybacks.--Notwithstanding any other provision
of law, the President may, in accordance with this section,
sell to any eligible country any concessional loans described
in section 806(a)(1) or any credits described in section
807(a)(1), or on receipt of payment from an eligible country,
reduce or cancel such loans (or credits) or portion thereof,
only for the purpose of facilitating a debt buyback by an
eligible country of its own qualified debt, only if the
eligible country uses an additional amount of the local
currency of the eligible country, equal to not less than 40
percent of the price paid for such debt by such eligible
country, or the difference between the price paid for such
debt and the face value of such debt, to support eligible
activities described in section 809(d).
``(3) Terms and conditions.--Notwithstanding any other
provision of law, the President shall, in accordance with
this section, establish the terms and conditions under which
loans and credits may be sold, reduced, or canceled pursuant
to this section.
``(4) Administration.--
``(A) In general.--The Facility shall notify the
administrator of the agency primarily responsible for
administering part I of this Act or the Commodity Credit
Corporation, as the case may be, of eligible purchasers
described in paragraph (1)(B) that the President has
determined to be eligible under paragraph (1), and shall
direct such agency or Corporation, as the case may be, to
carry out the sale, reduction, or cancellation of a loan
pursuant to such paragraph.
``(B) Additional requirement.--Such agency or Corporation,
as the case may be, shall make an adjustment in its accounts
to reflect the sale, reduction, or cancellation.
``(b) Deposit of Proceeds.--The proceeds from the sale,
reduction, or cancellation of any loan sold, reduced, or
canceled pursuant to this section shall be deposited in the
United States Government account or accounts established for
the repayment of such loan.
``SEC. 809. TROPICAL FOREST AGREEMENT.
``(a) Authority.--
``(1) In general.--The Secretary of State is authorized, in
consultation with other appropriate officials of the Federal
Government, to enter into a Tropical Forest Agreement with
any eligible country concerning the operation and use of the
Fund for that country.
``(2) Consultation.--In the negotiation of such an
Agreement, the Secretary shall consult with the Board in
accordance with section 811.
``(b) Contents of Agreement.--The requirements contained in
section 708(b) of this Act (relating to contents of an
agreement) shall apply to [a Agreement] an Agreement in the
same manner as such requirements apply to an Americas
Framework Agreement.
``(c) Administering Body.--
``(1) In general.--Amounts disbursed from the Fund in each
beneficiary country shall be administered by a body
constituted under the laws of that country.
``(2) Composition.--
``(A) In general.--The administering body shall consist
of--
``(i) one or more individuals appointed by the United
States Government;
``(ii) one or more individuals appointed by the government
of the beneficiary country; and
``(iii) individuals who represent a broad range of--
``(I) environmental nongovernmental organizations of, or
active in, the beneficiary country;
``(II) local community development nongovernmental
organizations of the beneficiary country; and
[``(III) scientific or academic organizations or
institutions of the beneficiary country.]
``(III) scientific, academic, or agroforestry organizations
of the beneficiary country.
``(B) Additional requirement.--A majority of the members of
the administering body shall be individuals described in
subparagraph (A)(iii).
``(3) Responsibilities.--The requirements contained in
section 708(c)(3) of this Act (relating to responsibilities
of the administering body) shall apply to an administering
body described in paragraph (1) in the same manner as such
requirements apply to an administering body described in
section 708(c)(1) of this Act.
``(d) Eligible Activities.--Amounts deposited in a Fund
shall be used to provide grants to preserve, maintain, and
restore the tropical forests in the beneficiary country,
including one or more of the following activities:
``(1) Establishment, restoration, protection, and
maintenance of parks, protected areas, and reserves.
``(2) Development and implementation of scientifically
sound systems of natural resource management, including land
and ecosystem management practices.
``(3) Training programs to strengthen conservation
institutions and increase scientific, technical, and
managerial capacities of individuals and organizations
involved in conservation efforts.
``(4) Restoration, protection, or sustainable use of
diverse animal and plant species.
``(5) Research and identification of medicinal uses of
tropical forest plant life to treat human diseases and
illnesses and health related concerns.
``[(5)] (6) Mitigation of greenhouse gases in the
atmosphere.
``[(6)] (7) Development and support of the livelihoods of
individuals living in or near a tropical forest, including
the cultures of such individuals, in a manner consistent with
protecting such tropical forest.
``(e) Grant Recipients.--
``(1) In general.--Grants made from a Fund shall be made
to--
``(A) nongovernmental environmental, conservation, and
indigenous peoples organizations of, or active in, the
beneficiary country;
``(B) other appropriate local or regional entities of, or
active in, the beneficiary country; [and] or
``(C) in exceptional circumstances, the government of the
beneficiary country.
``(2) Priority.--In providing grants under paragraph (1),
priority shall be given to projects that are run by
nongovernmental organizations and other private entities and
that involve local communities in their planning and
execution.
``(f) Review of Larger Grants.--Any grant of more than
$100,000 from a Fund shall
[[Page S8155]]
be subject to veto by the Government of the United States or
the government of the beneficiary country.
``(g) Eligibility Criteria.--In the event that a country
ceases to meet the eligibility requirements set forth in
section 805(a), as determined by the President pursuant to
section 805(b), then grants from the Fund for that country
may only be made to nongovernmental organizations until such
time as the President determines that such country meets the
eligibility requirements set forth in section 805(a).
``SEC. 810. TROPICAL FOREST FUND.
``(a) Establishment.--Each beneficiary country that enters
into a Tropical Forest Agreement under section 809 shall be
required to establish a Tropical Forest Fund to receive
payments of interest on new obligations undertaken by the
beneficiary country under this part.
``(b) Requirements Relating to Operation of Fund.--The
following terms and conditions shall apply to the Fund in the
same manner as such terms as conditions apply to an
Enterprise for the Americas Fund under section 707 of this
Act:
``(1) The provision relating to deposits under subsection
(b) of such section.
``(2) The provision relating to investments under
subsection (c) of such section.
``(3) The provision relating to disbursements under
subsection (d) of such section.
``SEC. 811. BOARD.
``(a) Enterprise for the Americas Board.--The Enterprise
for the Americas Board established under section 610(a) of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1738i(a)) shall, in addition to carrying out the
responsibilities of the Board under section 610(c) of such
Act, carry out the duties described in subsection (c) of this
section for the purposes of this part.
``(b) Additional Membership.--
``(1) In general.--The Enterprise for the Americas Board
shall be composed of an additional four members appointed by
the President as follows:
``(A) Two representatives from the United States
Government, including a representative of the International
Forestry Division of the United States Forest Service.
``(B) Two representatives from private nongovernmental
environmental, [scientific, and] scientific, agricultural, or
academic organizations with experience and expertise in
preservation, maintenance, sustainable uses, and restoration
of tropical forests.
``(2) Chairperson.--Notwithstanding section 610(b)(2) of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board
shall be headed by a chairperson who shall be appointed by
the President from among the representatives appointed under
section 610(b)(1)(A) of such Act or paragraph (1)(A) of this
subsection.
``(c) Duties.--The duties described in this subsection are
as follows:
``(1) Advise the Secretary of State on the negotiations of
Tropical Forest Agreements.
``(2) Ensure, in consultation with--
``(A) the government of the beneficiary country,
``(B) nongovernmental organizations of the beneficiary
country,
``(C) nongovernmental organizations of the region (if
appropriate),
``(D) environmental, scientific, and academic leaders of
the beneficiary country, and
``(E) environmental, scientific, and academic leaders of
the region (as appropriate),
that a suitable administering body is identified for each
Fund.
``(3) Review the programs, operations, and fiscal audits of
each administering body.
``SEC. 812. CONSULTATIONS WITH THE CONGRESS.
``The President shall consult with the appropriate
congressional committees on a periodic basis to review the
operation of the Facility under this part and the eligibility
of countries for benefits from the Facility under this part.
``SEC. 813. ANNUAL REPORTS TO THE CONGRESS.
``(a) In General.--Not later than December 31 of each
[fiscal] year, the President shall prepare and transmit to
the Congress an annual report concerning the operation of the
Facility for the prior fiscal year. Such report shall
include--
``(1) a description of the activities undertaken by the
Facility during the previous fiscal year;
``(2) a description of any Agreement entered into under
this part;
``(3) a report on any Funds that have been established
under this part and on the operations of such Funds; and
``(4) a description of any grants that have been provided
by administering bodies pursuant to Agreements under this
part.
``(b) Supplemental Views in Annual Report.--Not later than
December 15 of each [fiscal] year, each member of the Board
shall be entitled to receive a copy of the report required
under subsection (a). Each member of the Board may prepare
and submit supplemental views to the President on the
implementation of this part by December 31 for inclusion in
the annual report when it is transmitted to Congress pursuant
to this section.''.
Amendment No. 3148
(Purpose: To make technical and clarifying amendments)
Mr. ROBERTS. Mr. President, there is an amendment at the desk making
technical changes. I ask for its immediate consideration.
The PRESIDING OFFICER. The clerk will report the amendment.
The assistant legislative clerk read as follows:
The Senator from Kansas [Mr. Roberts], for Mr. Helms, for
himself, Mr. Biden, and Mr. Lugar, proposes an amendment
numbered 3148.
Mr. ROBERTS. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 6, line 11, strike ``continental'' and insert
``regional, continental,''.
On page 11, line 7, strike ``For the cost'' and insert the
following:
``(A) In general.--For the cost''.
On page 11, line 11, strike ``(A)'' and insert ``(i)''.
On page 11, line 12, strike ``(B)'' and insert ``(ii)''.
On page 11, line 13, strike ``(C)'' and insert ``(iii)''.
On page 11, between lines 13 and 14, insert the following:
``(B) Limitation.--The authority provided by this section
shall be available only to the extent that appropriations for
the cost (as defined in section 502(5) of the Federal Credit
Reform Act of 1990) of the modification of any debt pursuant
to this section are made in advance.
On page 15, line 2, insert ``the lessor of'' after
``than''.
On page 15, between lines 6 and 7, insert the following:
``(3) Limitation.--The authority provided by paragraphs (1)
and (2) shall be available only to the extent that
appropriations for the cost (as defined in section 502(5) of
the Federal Credit Reform Act of 1990) of the modification of
any debt pursuant to such paragraphs are made in advance.
On page 15, line 7, strike ``(3)'' and insert ``(4)''.
On page 15, line 12, strike ``(4)'' and insert ``(5)''.
On page 18, line 2, strike ``agroforestry'' and insert
``forestry''.
On page 18, line 16, strike ``to provide grants to
preserve'' and insert ``only to provide grants to
conserve,''.
On page 18, line 18, strike ``including'' and insert
``through''.
On page 19, lines 1 and 2, strike ``strengthen conservation
institutions and increase'' and insert ``increase the''.
On page 19, strike lines 10 and 11.
On page 19, line 12, strike ``(7)'' and insert ``(6)''.
On page 19, line 14, strike ``, including the cultures of
such individuals,''.
On page 19, line 21, insert ``forestry,'' after
``conservation,''.
On page 22, line 7, strike ``agricultural'' and insert
``forestry''.
On page 23, line 5, insert ``forestry,'' after
``scientific,''.
On page 23, line 7, insert ``forestry,'' after
``scientific,''.
Mr. LUGAR. Mr. President, there has been a remarkable degree of
bipartisan cooperation in moving this bill forward. I would like to
thank Senator Biden, Senator Chafee, and Senator Leahy for their help
in drafting the Senate bill, which is a companion to H.R. 2870,
introduced by Representatives Portman, Kasich and Hamilton. I would
also like to thank my twenty nine additional Senate cosponsors from
both sides of the aisle for their important support. I would especially
like to thank Senator Helms for cosponsoring the bill and moving it
expeditiously through the Committee on Foreign Relations, which
approved it by voice vote on May 19, 1998.
Senator Biden and I have worked together on international
environmental issues for many years. The original debt-for-nature bill
was the Biden-Lugar Global Environmental Protection Assistance Act of
1989. This was followed by President Bush's Enterprise for the Americas
Initiative (EAI), which also linked debt reduction and environmental
protection in the developing nations of Latin America and the
Caribbean.
S. 1758, the Tropical Forest Conservation Act, allows lower and
middle income developing countries to reduce certain debts owed to the
U.S. Government under the Foreign Assistance Act and the Agricultural
Trade and Development Assistance Act. In return, they must place local
currencies in a tropical forest fund to protect outstanding tropical
forests in their own country.
The tropical forest fund in each country would be administered by a
local board. These boards would be comprised of representatives of its
government, our government and environmental, community development,
forestry, scientific and academic organizations with expertise in the
protection of tropical forests. A majority of the
[[Page S8156]]
local board would have to represent these nongovernmental
organizations. Oversight would be accomplished through expanding the
Enterprise for the Americas Board to fifteen members, with eight
members representing federal agencies and seven representing
nongovernmental organizations with expertise in the protection of
tropical forests. All grants of more than $100,000 would have to be
approved by this Board.
The United States has a strong interest in helping to protect
tropical forests in developing countries. Our world food security
depends on tropical forests, which provide genetic materials to enhance
world food production and which regulate the hydrological cycles on
which world agriculture depends. The fight against cancer depends upon
plants in tropical forests. Tropical forests also store carbon,
mitigating the build up of greenhouse gas concentrations in the
atmosphere.
I urge the Senate to support S. 1758 along with the technical and
clarifying amendments which Senator Helms, Senator Biden and I have
offered to the Committee reported bill.
Mr. BIDEN. Mr. President, I join with my friend, the distinguished
senior Senator from Indiana, to urge my colleagues to support the
Tropical Forest Protection Act of 1998.
Mr. President, this bill marks a real victory for sensible,
bipartisan action on an issue of global importance. Just looking at the
list of our cosponsors--thirty-one of our colleagues, evenly divided
between our two parties--shows me that good policy is good politics.
Right now, as we speak today, fires are burning in tropical forests
around the world, the result of a combustible mix of unusually dry
weather with unsustainable human activity. Slash-and-burn agriculture,
logging, and the road cuts to support those activities, have exposed
one of our planet's most important resources to a deadly threat.
Rainforests have a profound effect on our planet's weather, through
their ability to absorb the most important greenhouse gas, carbon
dioxide. They influence rainfall, and are therefore the sources of many
of our most important rivers, that in turn support the farms and
fisheries that feed us.
They are home to rich biological diversity--both flora and fauna--
that we are just now realizing hold the secret to disease-resistant
crops and new medicines.
But as the nations that contain our most significant rainforests
enter the world economy, they are under increasing pressure to turn
these irreplaceable assets into cash, for both their own short-term
domestic needs and to service debts owed to the industrial nations,
including the United States.
That's why this bill is so important. It allows the reduction of the
debt those nations owe us, if they use the savings to protect those
rainforests. This will help to break the tie between debt and the
destruction of rainforests, to the benefit of everyone. It won't put
out those fires, but it will remove some of the financial arrangements
that fuel them.
I am particularly pleased to join again with my friend, Senator
Lugar, to expand on earlier Lugar-Biden legislation that has been on
the books since 1989, and that is part of the 1990 Enterprise for the
Americas Initiative.
And I am honored to be joined in this effort by the distinguished
Chairman of the Foreign Relations Committee, the distinguished Chairman
of the Environment and Public Works Committee, and so many other of our
colleagues on both sides of the aisle.
Thank you, Mr. President.
Mr. CHAFEE. Mr. President I am pleased to be here today with my
distinguished colleagues to offer my support for the Tropical Forest
Conservation Act of 1998. This bipartisan legislation addresses one of
the most important global environmental issues today--the protection
and preservation of tropical rain forests.
Since 1950 the world has lost as much as half of its tropical
forests, and the destruction is continuing unabated. The most
comprehensive survey of global deforestation estimated that, last year
alone, we lost more than 30 million acres of tropical rain forest--an
area the size of the State of Washington. This is a devastating loss
because of the potential biological impacts deforestation can have both
regionally and globally.
Tropical forests contain the world's richest stores of biological
diversity, and their health is essential for life on Earth. Scientists
estimate that more than 50 percent of the Earth's terrestrial
biological diversity is contained within these forests, which account
for less than 2 percent of the planet's land surface. Almost 40 percent
of all terrestrial plants and at least 25 percent of terrestrial
vertebrate species are endemic to these areas. Many of these species
are found only in a small area of the forests. And as the forests are
destroyed, Mr. President, the species are permanently lost through
extinction.
Tropical forests also function as carbon ``sinks,'' storing
greenhouse gasses that could otherwise contribute to global climate
change. While there are still many scientific uncertainties related to
climate change, it is undeniable that atmospheric carbon dioxide levels
are rising rapidly. A significant number of scientists believe that
humans have already influenced our global climate. In order to lessen
the risks associated with this change, such as sea level rise, extreme
weather conditions, and higher average temperatures, it is important
that the United States join with other nations to take preventative
action. Protecting our tropical rain forests, and thus preserving their
vital function of reducing greenhouse gases in the atmosphere, is one
such action.
Many of the world's tropical forests are located in developing
countries that, since the international debt crisis of the 1970s, have
been unable to repay loans to foreign lenders. These countries are in
need of hard currency, and to come up with cash, they have resorted to
exploiting their natural resources with little regard for environmental
planning. Vast areas of tropical forests are destroyed each year for
logging, agriculture and livestock operations. This trend will continue
as debt continues to mount.
Mr. President, the Tropical Forest Conservation Act will help turn
the tide against this deforestation. This legislation builds upon
President Bush's Enterprise for the Americas Initiative, or EAI. EAI
created a system by which Latin American and Carribean governments
could restructure some of their official debt to the United States,
while channeling local currency into funds to support environmental and
child development programs.
Using so-called ``debt-for-nature swaps,'' EAI restructured bilateral
debt to provide $154 million to environmental trust funds in Latin
America. Under these swaps, a nation's debt is modified, rescheduled,
or written off, in return for the borrower nation's commitment of its
own currency towards local conservation. The legislation before us
today would extend the debt-for-nature mechanism of the EAI to the
protection of significant tropical forests in lower and middle income
countries throughout the world, not just those in Latin America and the
Caribbean.
The Tropical Forest Conservation Act will authorize $325 million over
three years to be used for debt-for-nature swaps with developing
countries that have forests with the greatest biodiversity and the
highest risk of threat. S. 1758 assists countries with tropical forests
that are globally outstanding in terms of their biodiversity, and
applies to any lesser developed country with tropical forests and
qualified U.S. debt. The authorized amount would be used to compensate
the Treasury Department for any revenues lost due to the restructuring
of outstanding debt.
The legislation gives the President authority to reduce debt owed to
the United States as a result of any credit extended through specific
loan programs. In exchange, the developing countries would establish
funds in their local currency to preserve and restore tropical forests.
To ensure accountability, funds shall be administered and overseen by
U.S. Government officials, environmental nongovernmental organizations
active in the beneficiary country, and scientific or academic
organizations.
To qualify for assistance, countries must meet the criteria
established by Congress under EAI, including that the government must
be democratically elected, has not provided support for acts of
international terrorism, is not failing to cooperate on international
[[Page S8157]]
narcotics control matters, and does not participate in a consistent
pattern of gross violations of internationally recognized human rights.
Mr. President, I believe this is an important bill that will go a
long way in helping protect some of the world's most ecologically
sensitive and vital areas. The Tropical Forest Conservation Act
promotes debt reduction, investment reforms, community based
conservation and sustainable use of the environment. In addition, it
stretches limited Federal dollars making an effective use of
international environmental assistance. I urge my colleagues here in
the Senate to support S. 1758.
Mr. ROBERTS. Mr. President, I ask unanimous consent the amendment be
considered and agreed to, the committee amendments be agreed to, and
the bill be read a third time.
The amendment (No. 3148) was agreed to.
The Committee amendments were agreed to.
The bill (S. 1758) was read the third time.
Mr. ROBERTS. I further ask unanimous consent that the Foreign
Relations Committee be discharged from further consideration of H.R.
2870, that the Senate proceed to its immediate consideration, and all
after the enacting clause be stricken and the text of S. 1758, as
amended, be inserted in lieu thereof. I further ask unanimous consent
that the bill be read a third time, passed, and the motion to
reconsider be laid upon the table, and, finally, S. 1758 be placed back
on the calendar.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (H.R. 2870), as amended, was considered read the third time
and passed, as follows:
Resolved, That the bill from the House of Representatives
(H.R. 2870) entitled ``An Act to amend the Foreign Assistance
Act of 1961 to facilitate protection of tropical forests
through debt reduction with developing countries with
tropical forests.'', do pass with the following amendment:
Strike out all after the enacting clause and insert:
SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH
TROPICAL FORESTS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)
is amended by adding at the end the following:
``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS
``SEC. 801. SHORT TITLE.
``This part may be cited as the `Tropical Forest
Conservation Act of 1998'.
``SEC. 802. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds the following:
``(1) It is the established policy of the United States to
support and seek protection of tropical forests around the
world.
``(2) Tropical forests provide a wide range of benefits to
humankind by--
``(A) harboring a major share of the Earth's biological and
terrestrial resources, which are the basis for developing
pharmaceutical products and revitalizing agricultural crops;
``(B) playing a critical role as carbon sinks in reducing
greenhouse gases in the atmosphere, thus moderating potential
global climate change; and
``(C) regulating hydrological cycles on which far-flung
agricultural and coastal resources depend.
``(3) International negotiations and assistance programs to
conserve forest resources have proliferated over the past
decade, but the rapid rate of tropical deforestation
continues unabated.
``(4) Developing countries with urgent needs for investment
and capital for development have allocated a significant
amount of their forests to logging concessions.
``(5) Poverty and economic pressures on the populations of
developing countries have, over time, resulted in clearing of
vast areas of forest for conversion to agriculture, which is
often unsustainable in the poor soils underlying tropical
forests.
``(6) Debt reduction can reduce economic pressures on
developing countries and result in increased protection for
tropical forests.
``(7) Finding economic benefits to local communities from
sustainable uses of tropical forests is critical to the
protection of tropical forests.
``(b) Purposes.--The purposes of this part are--
``(1) to recognize the values received by United States
citizens from protection of tropical forests;
``(2) to facilitate greater protection of tropical forests
(and to give priority to protecting tropical forests with the
highest levels of biodiversity and under the most severe
threat) by providing for the alleviation of debt in countries
where tropical forests are located, thus allowing the use of
additional resources to protect these critical resources and
reduce economic pressures that have led to deforestation;
``(3) to ensure that resources freed from debt in such
countries are targeted to protection of tropical forests and
their associated values; and
``(4) to rechannel existing resources to facilitate the
protection of tropical forests.
``SEC. 803. DEFINITIONS.
``As used in this part:
``(1) Administering body.--The term `administering body'
means the entity provided for in section 809(c).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on International Relations and the
Committee on Appropriations of the House of Representatives;
and
``(B) the Committee on Foreign Relations and the Committee
on Appropriations of the Senate.
``(3) Beneficiary country.--The term `beneficiary country'
means an eligible country with respect to which the authority
of section 806(a)(1), section 807(a)(1), or paragraph (1) or
(2) of section 808(a) is exercised.
``(4) Board.--The term `Board' means the board referred to
in section 811.
``(5) Developing country with a tropical forest.--The term
`developing country with a tropical forest' means--
``(A)(i) a country that has a per capita income of $725 or
less in 1994 United States dollars (commonly referred to as
`low-income country'), as determined and adjusted on an
annual basis by the International Bank for Reconstruction and
Development in its World Development Report; or
``(ii) a country that has a per capita income of more than
$725 but less than $8,956 in 1994 United States dollars
(commonly referred to as `middle-income country'), as
determined and adjusted on an annual basis by the
International Bank for Reconstruction and Development in its
World Development Report; and
``(B) a country that contains at least one tropical forest
that is globally outstanding in terms of its biological
diversity or represents one of the larger intact blocks of
tropical forests left, on a regional, continental, or global
scale.
``(6) Eligible country.--The term `eligible country' means
a country designated by the President in accordance with
section 805.
``(7) Tropical forest agreement.--The term `Tropical Forest
Agreement' or `Agreement' means a Tropical Forest Agreement
provided for in section 809.
``(8) Tropical forest facility.--The term `Tropical Forest
Facility' or `Facility' means the Tropical Forest Facility
established in the Department of the Treasury by section 804.
``(9) Tropical forest fund.--The term `Tropical Forest
Fund' or `Fund' means a Tropical Forest Fund provided for in
section 810.
``SEC. 804. ESTABLISHMENT OF THE FACILITY.
``There is established in the Department of the Treasury an
entity to be known as the `Tropical Forest Facility' for the
purpose of providing for the administration of debt reduction
in accordance with this part.
``SEC. 805. ELIGIBILITY FOR BENEFITS.
``(a) In General.--To be eligible for benefits from the
Facility under this part, a country shall be a developing
country with a tropical forest--
``(1) whose government meets the requirements applicable to
Latin American or Caribbean countries under paragraphs (1)
through (5) and (7) of section 703(a) of this Act; and
``(2) that has put in place major investment reforms, as
evidenced by the conclusion of a bilateral investment treaty
with the United States, implementation of an investment
sector loan with the Inter-American Development Bank, World
Bank-supported investment reforms, or other measures, as
appropriate.
``(b) Eligibility Determinations.--
``(1) In general.--Consistent with subsection (a), the
President shall determine whether a country is eligible to
receive benefits under this part.
``(2) Congressional notification.--The President shall
notify the appropriate congressional committees of his
intention to designate a country as an eligible country at
least 15 days in advance of any formal determination.
``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A
RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN
ASSISTANCE ACT OF 1961.
``(a) Authority To Reduce Debt.--
``(1) Authority.--The President may reduce the amount owed
to the United States (or any agency of the United States)
that is outstanding as of January 1, 1998, as a result of
concessional loans made to an eligible country by the United
States under part I of this Act, chapter 4 of part II of this
Act, or predecessor foreign economic assistance legislation.
``(2) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to this section,
there are authorized to be appropriated to the President--
``(A) $25,000,000 for fiscal year 1999;
``(B) $75,000,000 for fiscal year 2000; and
``(C) $100,000,000 for fiscal year 2001.
``(3) Certain prohibitions inapplicable.--
``(A) In general.--A reduction of debt pursuant to this
section shall not be considered assistance for purposes of
any provision of law limiting assistance to a country.
``(B) Additional requirement.--The authority of this
section may be exercised notwithstanding section 620(r) of
this Act or section 321 of the International Development and
Food Assistance Act of 1975.
``(b) Implementation of Debt Reduction.--
``(1) In general.--Any debt reduction pursuant to
subsection (a) shall be accomplished at the direction of the
Facility by the exchange of a new obligation for obligations
of the type referred to in subsection (a) outstanding as of
the date specified in subsection (a)(1).
``(2) Exchange of obligations.--
``(A) In general.--The Facility shall notify the agency
primarily responsible for administering part I of this Act of
an agreement entered into under paragraph (1) with an
eligible country to exchange a new obligation for outstanding
obligations.
[[Page S8158]]
``(B) Additional requirement.--At the direction of the
Facility, the old obligations that are the subject of the
agreement shall be canceled and a new debt obligation for the
country shall be established relating to the agreement, and
the agency primarily responsible for administering part I of
this Act shall make an adjustment in its accounts to reflect
the debt reduction.
``(c) Additional Terms and Conditions.--The following
additional terms and conditions shall apply to the reduction
of debt under subsection (a)(1) in the same manner as such
terms and conditions apply to the reduction of debt under
section 704(a)(1) of this Act:
``(1) The provisions relating to repayment of principal
under section 705 of this Act.
``(2) The provisions relating to interest on new
obligations under section 706 of this Act.
``SEC. 807. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A
RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
ACT OF 1954.
``(a) Authority To Reduce Debt.--
``(1) Authority.--Notwithstanding any other provision of
law, the President may reduce the amount owed to the United
States (or any agency of the United States) that is
outstanding as of January 1, 1998, as a result of any credits
extended under title I of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a
country eligible for benefits from the Facility.
``(2) Authorization of appropriations.--
``(A) In general.--For the cost (as defined in section
502(5) of the Federal Credit Reform Act of 1990) for the
reduction of any debt pursuant to this section, there are
authorized to be appropriated to the President--
``(i) $25,000,000 for fiscal year 1999;
``(ii) $50,000,000 for fiscal year 2000; and
``(iii) $50,000,000 for fiscal year 2001.
``(B) Limitation.--The authority provided by this section
shall be available only to the extent that appropriations for
the cost (as defined in section 502(5) of the Federal Credit
Reform Act of 1990) of the modification of any debt pursuant
to this section are made in advance.
``(b) Implementation of Debt Reduction.--
``(1) In general.--Any debt reduction pursuant to
subsection (a) shall be accomplished at the direction of the
Facility by the exchange of a new obligation for obligations
of the type referred to in subsection (a) outstanding as of
the date specified in subsection (a)(1).
``(2) Exchange of obligations.--
``(A) In general.--The Facility shall notify the Commodity
Credit Corporation of an agreement entered into under
paragraph (1) with an eligible country to exchange a new
obligation for outstanding obligations.
``(B) Additional requirement.--At the direction of the
Facility, the old obligations that are the subject of the
agreement shall be canceled and a new debt obligation shall
be established for the country relating to the agreement, and
the Commodity Credit Corporation shall make an adjustment in
its accounts to reflect the debt reduction.
``(c) Additional Terms and Conditions.--The following
additional terms and conditions shall apply to the reduction
of debt under subsection (a)(1) in the same manner as such
terms and conditions apply to the reduction of debt under
section 604(a)(1) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1738c):
``(1) The provisions relating to repayment of principal
under section 605 of such Act.
``(2) The provisions relating to interest on new
obligations under section 606 of such Act.
``SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND
DEBT BUYBACKS.
``(a) Loans and Credits Eligible for Sale, Reduction, or
Cancellation.--
``(1) Debt-for-nature swaps.--
``(A) In general.--Notwithstanding any other provision of
law, the President may, in accordance with this section, sell
to any eligible purchaser described in subparagraph (B) any
concessional loans described in section 806(a)(1) or any
credits described in section 807(a)(1), or on receipt of
payment from an eligible purchaser described in subparagraph
(B), reduce or cancel such loans (or credits) or portion
thereof, only for the purpose of facilitating a debt-for-
nature swap to support eligible activities described in
section 809(d).
``(B) Eligible purchaser described.--A loan or credit may
be sold, reduced, or canceled under subparagraph (A) only to
a purchaser who presents plans satisfactory to the President
for using the loan or credit for the purpose of engaging in
debt-for-nature swaps to support eligible activities
described in section 809(d).
``(C) Consultation requirement.--Before the sale under
subparagraph (A) to any eligible purchaser described in
subparagraph (B), or any reduction or cancellation under such
subparagraph (A), of any loan or credit made to an eligible
country, the President shall consult with the country
concerning the amount of loans or credits to be sold,
reduced, or canceled and their uses for debt-for-nature swaps
to support eligible activities described in section 809(d).
``(D) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to subparagraph
(A), amounts authorized to appropriated under sections
806(a)(2) and 807(a)(2) shall be made available for such
reduction of debt pursuant to subparagraph (A).
``(2) Debt buybacks.--Notwithstanding any other provision
of law, the President may, in accordance with this section,
sell to any eligible country any concessional loans described
in section 806(a)(1) or any credits described in section
807(a)(1), or on receipt of payment from an eligible country,
reduce or cancel such loans (or credits) or portion thereof,
only for the purpose of facilitating a debt buyback by an
eligible country of its own qualified debt, only if the
eligible country uses an additional amount of the local
currency of the eligible country, equal to not less than the
lessor of 40 percent of the price paid for such debt by such
eligible country, or the difference between the price paid
for such debt and the face value of such debt, to support
eligible activities described in section 809(d).
``(3) Limitation.--The authority provided by paragraphs (1)
and (2) shall be available only to the extent that
appropriations for the cost (as defined in section 502(5) of
the Federal Credit Reform Act of 1990) of the modification of
any debt pursuant to such paragraphs are made in advance.
``(4) Terms and conditions.--Notwithstanding any other
provision of law, the President shall, in accordance with
this section, establish the terms and conditions under which
loans and credits may be sold, reduced, or canceled pursuant
to this section.
``(5) Administration.--
``(A) In general.--The Facility shall notify the
administrator of the agency primarily responsible for
administering part I of this Act or the Commodity Credit
Corporation, as the case may be, of eligible purchasers
described in paragraph (1)(B) that the President has
determined to be eligible under paragraph (1), and shall
direct such agency or Corporation, as the case may be, to
carry out the sale, reduction, or cancellation of a loan
pursuant to such paragraph.
``(B) Additional requirement.--Such agency or Corporation,
as the case may be, shall make an adjustment in its accounts
to reflect the sale, reduction, or cancellation.
``(b) Deposit of Proceeds.--The proceeds from the sale,
reduction, or cancellation of any loan sold, reduced, or
canceled pursuant to this section shall be deposited in the
United States Government account or accounts established for
the repayment of such loan.
``SEC. 809. TROPICAL FOREST AGREEMENT.
``(a) Authority.--
``(1) In general.--The Secretary of State is authorized, in
consultation with other appropriate officials of the Federal
Government, to enter into a Tropical Forest Agreement with
any eligible country concerning the operation and use of the
Fund for that country.
``(2) Consultation.--In the negotiation of such an
Agreement, the Secretary shall consult with the Board in
accordance with section 811.
``(b) Contents of Agreement.--The requirements contained in
section 708(b) of this Act (relating to contents of an
agreement) shall apply to an Agreement in the same manner as
such requirements apply to an Americas Framework Agreement.
``(c) Administering Body.--
``(1) In general.--Amounts disbursed from the Fund in each
beneficiary country shall be administered by a body
constituted under the laws of that country.
``(2) Composition.--
``(A) In general.--The administering body shall consist
of--
``(i) one or more individuals appointed by the United
States Government;
``(ii) one or more individuals appointed by the government
of the beneficiary country; and
``(iii) individuals who represent a broad range of--
``(I) environmental nongovernmental organizations of, or
active in, the beneficiary country;
``(II) local community development nongovernmental
organizations of the beneficiary country; and
``(III) scientific, academic, or forestry organizations of
the beneficiary country.
``(B) Additional requirement.--A majority of the members of
the administering body shall be individuals described in
subparagraph (A)(iii).
``(3) Responsibilities.--The requirements contained in
section 708(c)(3) of this Act (relating to responsibilities
of the administering body) shall apply to an administering
body described in paragraph (1) in the same manner as such
requirements apply to an administering body described in
section 708(c)(1) of this Act.
``(d) Eligible Activities.--Amounts deposited in a Fund
shall be used only to provide grants to conserve, maintain,
and restore the tropical forests in the beneficiary country,
through one or more of the following activities:
``(1) Establishment, restoration, protection, and
maintenance of parks, protected areas, and reserves.
``(2) Development and implementation of scientifically
sound systems of natural resource management, including land
and ecosystem management practices.
``(3) Training programs to increase the scientific,
technical, and managerial capacities of individuals and
organizations involved in conservation efforts.
``(4) Restoration, protection, or sustainable use of
diverse animal and plant species.
``(5) Research and identification of medicinal uses of
tropical forest plant life to treat human diseases and
illnesses and health related concerns.
``(6) Development and support of the livelihoods of
individuals living in or near a tropical forest in a manner
consistent with protecting such tropical forest.
``(e) Grant Recipients.--
``(1) In general.--Grants made from a Fund shall be made
to--
``(A) nongovernmental environmental, forestry,
conservation, and indigenous peoples organizations of, or
active in, the beneficiary country;
``(B) other appropriate local or regional entities of, or
active in, the beneficiary country; or
``(C) in exceptional circumstances, the government of the
beneficiary country.
[[Page S8159]]
``(2) Priority.--In providing grants under paragraph (1),
priority shall be given to projects that are run by
nongovernmental organizations and other private entities and
that involve local communities in their planning and
execution.
``(f) Review of Larger Grants.--Any grant of more than
$100,000 from a Fund shall be subject to veto by the
Government of the United States or the government of the
beneficiary country.
``(g) Eligibility Criteria.--In the event that a country
ceases to meet the eligibility requirements set forth in
section 805(a), as determined by the President pursuant to
section 805(b), then grants from the Fund for that country
may only be made to nongovernmental organizations until such
time as the President determines that such country meets the
eligibility requirements set forth in section 805(a).
``SEC. 810. TROPICAL FOREST FUND.
``(a) Establishment.--Each beneficiary country that enters
into a Tropical Forest Agreement under section 809 shall be
required to establish a Tropical Forest Fund to receive
payments of interest on new obligations undertaken by the
beneficiary country under this part.
``(b) Requirements Relating to Operation of Fund.--The
following terms and conditions shall apply to the Fund in the
same manner as such terms as conditions apply to an
Enterprise for the Americas Fund under section 707 of this
Act:
``(1) The provision relating to deposits under subsection
(b) of such section.
``(2) The provision relating to investments under
subsection (c) of such section.
``(3) The provision relating to disbursements under
subsection (d) of such section.
``SEC. 811. BOARD.
``(a) Enterprise for the Americas Board.--The Enterprise
for the Americas Board established under section 610(a) of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1738i(a)) shall, in addition to carrying out the
responsibilities of the Board under section 610(c) of such
Act, carry out the duties described in subsection (c) of this
section for the purposes of this part.
``(b) Additional Membership.--
``(1) In general.--The Enterprise for the Americas Board
shall be composed of an additional four members appointed by
the President as follows:
``(A) Two representatives from the United States
Government, including a representative of the International
Forestry Division of the United States Forest Service.
``(B) Two representatives from private nongovernmental
environmental, scientific, forestry, or academic
organizations with experience and expertise in preservation,
maintenance, sustainable uses, and restoration of tropical
forests.
``(2) Chairperson.--Notwithstanding section 610(b)(2) of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board
shall be headed by a chairperson who shall be appointed by
the President from among the representatives appointed under
section 610(b)(1)(A) of such Act or paragraph (1)(A) of this
subsection.
``(c) Duties.--The duties described in this subsection are
as follows:
``(1) Advise the Secretary of State on the negotiations of
Tropical Forest Agreements.
``(2) Ensure, in consultation with--
``(A) the government of the beneficiary country,
``(B) nongovernmental organizations of the beneficiary
country,
``(C) nongovernmental organizations of the region (if
appropriate),
``(D) environmental, scientific, forestry, and academic
leaders of the beneficiary country, and
``(E) environmental, scientific, forestry, and academic
leaders of the region (as appropriate),
that a suitable administering body is identified for each
Fund.
``(3) Review the programs, operations, and fiscal audits of
each administering body.
``SEC. 812. CONSULTATIONS WITH THE CONGRESS.
``The President shall consult with the appropriate
congressional committees on a periodic basis to review the
operation of the Facility under this part and the eligibility
of countries for benefits from the Facility under this part.
``SEC. 813. ANNUAL REPORTS TO THE CONGRESS.
``(a) In General.--Not later than December 31 of each year,
the President shall prepare and transmit to the Congress an
annual report concerning the operation of the Facility for
the prior fiscal year. Such report shall include--
``(1) a description of the activities undertaken by the
Facility during the previous fiscal year;
``(2) a description of any Agreement entered into under
this part;
``(3) a report on any Funds that have been established
under this part and on the operations of such Funds; and
``(4) a description of any grants that have been provided
by administering bodies pursuant to Agreements under this
part.
``(b) Supplemental Views in Annual Report.--Not later than
December 15 of each year, each member of the Board shall be
entitled to receive a copy of the report required under
subsection (a). Each member of the Board may prepare and
submit supplemental views to the President on the
implementation of this part by December 31 for inclusion in
the annual report when it is transmitted to Congress pursuant
to this section.''.
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