[Congressional Record Volume 150, Number 107 (Friday, September 10, 2004)]
[Senate]
[Page S9076]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. LUGAR (for himself and Mr. Biden):
S. 2787. A bill to reauthorize the Tropical Forest Conservation Act
of 1998 through fiscal year 2007, and for other purposes; to the
Committee on Foreign Relations.
Mr. LUGAR. Mr. President, I join with Senator Biden today to
introduce legislation reauthorizing the Tropical Forest Conservation
Act of 1998 (TFCA) through fiscal year 2007. Since its creation, the
TFCA has helped conserve 40 million acres of tropical forests in the
world.
The current TFCA authorization, P.L. 107-26, expires at the end of
fiscal year 2004. The House of Representatives has already voted in
favor of H.R. 4654, which is identical to the legislation we introduce
today. We hope the Senate will be able to take speedy action on this
important program.
Senator Biden and I proposed TFCA in 1998 based on the 1991
Enterprise for Americas Initiative (EAI) that allows the President to
restructure debt in exchange for conservation efforts in Latin America.
The TFCA expanded on the EAI and allows protection of threatened
tropical forests worldwide through ``debt-for-nature'' mechanisms.
With TFCA, the State Department has reached agreements generating
$70.4 million in long-term commitments for tropical forest
conservation. In addition, private donors, including the Nature
Conservancy, the World Wildlife Fund, the Wildlife Conservation Society
and Conservation International, have contributed more than $5 million
to TFCA swaps, leveraging U.S. Government funds.
Seven TFCA agreements have been concluded to date in Bangladesh, El
Salvador, Belize, Peru, the Philippines, Panama and Colombia. With the
reauthorization of TFCA, the State Department will be able to complete
negotiations with Jamaica and Sri Lanka, and pursue agreement with
Guatemala, Ecuador, Paraguay, St. Vincent, Botswana, Costa Rica, the
Dominican Republic, India, Indonesia, Brazil and Kenya.
This legislation authorizes appropriations for debt reduction for
eligible countries through fiscal year 2007 at $20,000,000 in fiscal
year 2005 (as the President requested); $25,000,000 in fiscal year
2006; and $30,000,000 in fiscal year 2007.
A new section authorizes that funds can be used for audits and
evaluations of the program. In addition, an amendment allows for TFCA
debt reduction agreements to redirect reduced principal payments for
forest conservation activities. Current law allows only the redirection
of reduced interest payments into forest conservation funds.
The debt-for-nature mechanisms in the TFCA have proven to be an
effective, market-oriented tool to leverage scarce funds available to
international conservation. The host country places an amount in its
tropical forest fund that typically exceeds the cost to the U.S.
Government of the debt reduction agreement.
In addition to forest conservation and debt relief, TFCA strengthens
civil society in participating countries by creating local foundations
to support small grants to nongovernmental organizations and local
communities.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 2787
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REDUCTION OF DEBT UNDER THE FOREIGN ASSISTANCE ACT
OF 1961 AND TITLE I OF THE AGRICULTURAL TRADE
DEVELOPMENT AND ASSISTANCE ACT OF 1954.
Section 806(d) of the Tropical Forest Conservation Act of
1998 (22 U.S.C. 2431d(d)) is amended by adding at the end the
following new paragraphs:
``(4) $20,000,000 for fiscal year 2005.
``(5) $25,000,000 for fiscal year 2006.
``(6) $30,000,000 for fiscal year 2007.''.
SEC. 2. USE OF FUNDS TO CONDUCT PROGRAM AUDITS AND
EVALUATIONS.
Section 806 of the Tropical Forest Conservation Act of 1998
(22 U.S.C. 2431d) is amended by adding at the end the
following new subsection:
``(e) Use of Funds To Conduct Program Audits and
Evaluations.--Of the amounts made available to carry out this
part for a fiscal year, $200,000 is authorized to be made
available to carry out audits and evaluations of programs
under this part, including personnel costs associated with
such audits and evaluations.''.
SEC. 3. AUTHORITY TO ALLOW FOR PAYMENTS OF INTEREST AND
PRINCIPAL IN LOCAL CURRENCIES.
(a) Authority Under the Foreign Assistance Act of 1961.--
Section 806(c) of the Tropical Forest Conservation Act of
1998 (22 U.S.C. 2431d(c)) is amended--
(1) in the matter preceding paragraph (1), by striking
``The following'' and inserting ``(1) The following'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively; and
(3) by adding at the end the following:
``(2) In addition to the application of the provisions
relating to repayment of principal under section 705 of this
Act to the reduction of debt under subsection (a)(1) (in
accordance with paragraph (1)(A) of this subsection),
repayment of principal on a new obligation established under
subsection (b) may be made in the local currency of the
beneficiary country and deposited in the Tropical Forest Fund
of the country in the same manner as the provisions relating
to payment of interest on new obligations under section 706
of this Act.''.
(b) Authority Under Title I of the Agricultural Trade
Development and Assistance Act of 1954.--Section 807(c) of
the Tropical Forest Conservation Act of 1998 (22 U.S.C.
2431e(c)) is amended--
(1) in the matter preceding paragraph (1), by striking
``The following'' and inserting ``(1) The following'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively; and
(3) by adding at the end the following:
``(2) In addition to the application of the provisions
relating to repayment of principal under section 605 of the
Agricultural Trade Development and Assistance Act of 1954 to
the reduction of debt under subsection (a)(1) (in accordance
with paragraph (1)(A) of this subsection), repayment of
principal on a new obligation established under subsection
(b) may be made in the local currency of the beneficiary
country and deposited in the Tropical Forest Fund of the
country in the same manner as the provisions relating to
payment of interest on new obligations under section 606 of
such Act.''.
(c) Conforming Amendment.--Section 810(a) of the Tropical
Forest Conservation Act of 1998 (22 U.S.C. 2431h(a)) is
amended by inserting ``and principal'' after ``interest''.
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