[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''.
                                 ______