[Congressional Record Volume 151, Number 22 (Wednesday, March 2, 2005)]
[Senate]
[Pages S1932-S1934]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FRIST (for himself, Mr. Reid, and Mr. Lugar):
  S. 492. A bill to make access to safe water and sanitation for 
developing countries a specific policy objective of the United States 
foreign assistance programs, and for other purposes; to the Committee 
on Foreign Relations.
  Mr. FRIST. Mr. President, 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. 492

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Safe Water: Currency for 
     Peace Act of 2005''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Water-related diseases are a human tragedy, killing and 
     debilitating millions of people annually, preventing millions 
     of people from leading healthy lives, and undermining 
     development efforts.
       (2) Providing safe supplies of water, and sanitation and 
     hygiene improvements would save millions of lives by reducing 
     the prevalence of water-borne diseases, water-based diseases, 
     water-privation diseases, and water-related vector diseases.

[[Page S1933]]

       (3) An estimated 1,800,000 people die of diarrhoeal 
     diseases every year. Ninety percent of these people are 
     children under the age of five who live in developing 
     countries. Simple household and personal hygiene measures, 
     such as household water treatment and safe storage and 
     effective hand washing with soap, reduce the burden of 
     diarrhoeal disease by more than 40 percent.
       (4) According to the World Health Organization, 88 percent 
     of diarrhoeal disease can be attributed to unsafe water 
     supply, and inadequate sanitation and hygiene.
       (5) Around the world, more than 150,000,000 people are 
     threatened by blindness caused by trachoma, a disease that is 
     spread through poor hygiene and sanitation, and aggravated by 
     inadequate water supply.
       (6) Chronic intestinal helminth infections are a leading 
     source of global morbidity, including cognitive impairment 
     and anemia for hundred of millions of children and adults. 
     Access to safe water and sanitation and better hygiene 
     practices can greatly reduce the number of these infections.
       (7) Schistosomiasis is a disease that affects 200,000,000 
     people, 20,000,000 of whom suffer serious consequences, 
     including liver and intestinal damage. Improved water 
     resource management to reduce infestation of surface water, 
     improved sanitation and hygiene, and deworming treatment can 
     dramatically reduce this burden.
       (8) In 2002, 2,600,000,000 people lacked access to improved 
     sanitation. In sub-Saharan Africa, only 36 percent of the 
     population has access to improved sanitation. In developing 
     countries, only 31 percent of the population in rural areas 
     has access to improved sanitation.
       (9) Improved management of water resources can contribute 
     to comprehensive strategies for controlling mosquito 
     populations associated with life-threatening vector-borne 
     diseases in developing countries, especially malaria, which 
     kills more than 1,000,000 people each year, most of whom are 
     children.
       (10) Natural disasters such as floods and droughts threaten 
     people's health. Floods contaminate drinking-water systems 
     with industrial waste refuse, sewage, and human and animal 
     excreta. Droughts exacerbate malnutrition and limit access to 
     drinking water supplies. Sound water resource management can 
     mitigate the impact of such natural disasters.
       (11) The United Nations Population Fund report entitled 
     ``Water: A Critical Resource'' stated that ``Nearly 500 
     million people [suffer from] water stress or serious water 
     scarcity. Under current trends, two-thirds of the world's 
     population may be subject to moderate to high water stress by 
     2025''. Effective water management and equitable allocation 
     of scarce water supplies for all uses will become 
     increasingly important for meeting both human and ecosystem 
     water needs in the future.
       (12) The participants in the World Summit on Sustainable 
     Development, held in Johannesburg, South Africa, in 2002, 
     agreed to the Plan of Implementation of the World Summit on 
     Sustainable Development which included an agreement to work 
     to reduce by one-half ``the proportion of people who are 
     unable to reach or afford safe drinking water,'' and ``the 
     proportion of people without access to basic sanitation'' by 
     2015.
       (13) At the World Summit on Sustainable Development, 
     building on the U.S.-Japan Partnership for Security and 
     Prosperity announced in June 2001 by President Bush and Prime 
     Minister Koizumi, the United States and Japan announced a 
     Clean Water for People Initiative to cooperate in providing 
     safe water and sanitation to the world's poor, improve 
     watershed management, and increase the productivity of water.
       (14) At the World Summit on Sustainable Development, the 
     United States announced the Water for the Poor Initiative 
     which committed the United States to provide $970,000,000 
     over 3 years to increase access to safe water and sanitation 
     services, improve watershed management, and increase the 
     productivity of water. During fiscal year 2004, the United 
     States provided an estimated $817,000,000 in assistance to 
     the Water for the Poor Initiative, including funds made 
     available for reconstruction activities in Iraq, of which 
     $388,000,000 was made available for safe drinking water and 
     sanitation programs.
       (15) During fiscal year 2004, the United States provided 
     $49,000,000 in assistance for activities to provide safe 
     drinking water and sanitation in sub-Saharan Africa, an 
     amount that is equal to 6.5 percent of total United States 
     foreign assistance provided for all water activities in the 
     Water for the Poor Initiative.
       (16) At the 2003 Summit of the Group of Eight in Evian, 
     France, the members of the Group of Eight produced a plan 
     entitled ``Water: A G8 Action Plan'' that stated that a lack 
     of water can undermine human security. The Action Plan 
     committed the members of the Group of Eight to playing a more 
     active role in international efforts to provide safe water 
     and sanitation to the world's poor by mobilizing domestic 
     resources in developing countries for water infrastructure 
     financing through the development and strengthening of local 
     capital markets and financial institutions, particularly by 
     establishing, where appropriate, at the national and local 
     levels, revolving funds that offer local currency financings, 
     which allow communities to finance capital-intensive water 
     infrastructure projects over an affordable period of time at 
     competitive rates.
       (17) The G8 Action Plan also committed members of the Group 
     of Eight to provide risk mitigation mechanisms for such 
     revolving funds and to provide technical assistance for the 
     development of efficient local financial markets and building 
     municipal government capacity to design and implement 
     financially viable projects and provide, as appropriate, 
     targeted subsidies for the poorest communities that cannot 
     fully service market rate debt.
       (18) The United Nations General Assembly Resolution 58/217 
     of February 9, 2004, proclaimed ``the period from 2005 to 
     2015 the International Decade for Action, `Water for Life', 
     to commence on World Water Day, 22 March 2005'' for the 
     purpose of increasing the focus of the international 
     community on water-related issues at all levels and on the 
     implementation of water-related programs and projects.

     SEC. 3. WATER FOR HEALTH AND DEVELOPMENT.

       (a) In General.--Part I of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151 et seq.) is amended by inserting after 
     section 104C the following new section:

     ``SEC. 104D. WATER FOR HEALTH AND DEVELOPMENT.

       ``(a) Finding.--Congress makes the following findings:
       ``(1) Access to safe water and sanitation and improved 
     hygiene are significant factors in controlling the spread of 
     disease in the developing world and positively affecting 
     economic development.
       ``(2) The health of children and other vulnerable rural and 
     urban populations in developing countries, especially sub-
     Saharan Africa and South Asia, is threatened by a lack of 
     adequate safe water, sanitation, and hygiene.
       ``(3) Efforts to meet United States foreign assistance 
     objectives, including those related to agriculture, the human 
     immunodeficiency virus (HIV) and acquired immune deficiency 
     syndrome (AIDS), and the environment will be advanced by 
     improving access to safe water and sanitation and promoting 
     sound water management throughout the world.
       ``(4) Developing sustainable financing mechanisms, 
     including private sector financing, is critical to the long-
     term sustainability of improved water supply, sanitation, and 
     hygiene.
       ``(5) The annual level of investment needed to meet the 
     water and sanitation needs of developing countries far 
     exceeds the amount of Official Development Assistance (ODA) 
     and spending by governments of developing countries, so 
     attracting greater public and private investment is 
     essential.
       ``(6) Long-term sustainability in the provision of access 
     to safe water and sanitation and in the maintenance of water 
     and sanitation facilities requires a legal and regulatory 
     environment conducive to private sector investment and 
     private sector participation in the delivery of water and 
     sanitation services.
       ``(7) The absence of robust domestic financial markets and 
     sources for long-term financing are a major impediment to the 
     development of water and sanitation projects in developing 
     countries.
       ``(8) At the 2003 Summit of the Group of Eight in Evian, 
     France, the members of the Group of Eight produced a plan 
     entitled `Water: A G8 Action Plan' that contemplated the 
     promotion of domestic revolving funds to provide local 
     currency financing for capital-intensive water infrastructure 
     projects. Innovative financing mechanisms such as revolving 
     funds and pooled-financings have been effective vehicles for 
     mobilizing domestic savings for investments in water and 
     sanitation both in the United States and in some developing 
     countries. These mechanisms can serve as a catalyst for 
     greater investment in water and sanitation projects by 
     villages, small towns, and municipalities.
       ``(9) The G8 Action Plan also committed members of the 
     Group of Eight to improving coordination and cooperation 
     between donors, and such improved coordination and 
     cooperation is essential for enlarging the beneficial impact 
     of donor initiatives.
       ``(b) Policy.--It is a major objective of United States 
     foreign assistance--
       ``(1) to promote good health and economic development by 
     providing assistance to expand access to safe water and 
     sanitation, promote sound water management, and improve 
     hygiene for people around the world; and
       ``(2) to promote, to the maximum extent practicable and 
     appropriate, long-term sustainability in the provision of 
     access to safe water and sanitation by encouraging private 
     investment in water and sanitation infrastructure and 
     services.
       ``(c) Authorization.--
       ``(1) In general.--To carry out the policy set out in 
     subsection (b), the President is authorized to furnish 
     assistance, including health information and education, to 
     advance good health and promote economic development by 
     improving the safety of water supplies, expanding access to 
     safe water and sanitation, promoting sound water management, 
     and promoting better hygiene.
       ``(2) Local currency.--The President may use payments made 
     in local currencies under an agreement made under title I of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1701 et seq.) to provide assistance under this 
     section, including assistance for activities related to 
     drilling or maintaining wells.''.
       (b) Conforming Amendment.--Section 104(c) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1704(c)) is

[[Page S1934]]

     amended by adding at the end the following new paragraph:
       ``(9) Safe water.--To provide assistance under section 104D 
     of the Foreign Assistance Act of 1961 to advance good health 
     and promote economic development by improving the safety of 
     water supplies, including programs related to drilling or 
     maintaining wells.''.

     SEC. 4. PILOT PROGRAM FOR WATER SUSTAINABILITY INFRASTRUCTURE 
                   DEVELOPMENT AND CAPACITY BUILDING.

       (a) In General.--Section 104D of the Foreign Assistance Act 
     of 1961, as added by section 3, is amended by adding at the 
     end the following new subsection:
       ``(d) Pilot Clean Water Sustainability Infrastructure 
     Development Program.--
       ``(1) Authority for pilot program.--In order to study the 
     feasibility and desirability of a program to assist countries 
     that have a high proportion of the population that is 
     susceptible to water-borne illnesses as a result of a lack of 
     basic infrastructure for clean water and sanitation, the 
     President, in close coordination with the Administrator of 
     the United States Agency for International Development and 
     the Director of the Overseas Private Investment Corporation, 
     is authorized to establish a 5-year pilot program under which 
     the President may--
       ``(A) provide for the issuance of investment insurance, 
     investment guarantees, or loan guarantees, provide for direct 
     investment or investment encouragement, or carry out special 
     projects and programs for eligible investors to assist such 
     countries in the development of safe drinking water and 
     sanitation infrastructure programs; and
       ``(B) provide assistance to support the activities 
     described in subparagraphs (A) through (D) of paragraph (2) 
     for the purposes of--
       ``(i) carrying out the policy set out in subsection (b); 
     and
       ``(ii) maximizing the effectiveness of assistance provided 
     under subparagraph (A).
       ``(2) Activities supported.--Assistance provided to a 
     country under paragraph (1)(B) shall be used to--
       ``(A) assess the water development needs of such country;
       ``(B) design projects to address such water development 
     needs;
       ``(C) develop the capacity of individuals and institutions 
     in such country to carry out and maintain water development 
     programs through training, joint work projects, and 
     educational programs; and
       ``(D) provide long-term monitoring of water development 
     programs.
       ``(3) Geographic limitation.--The President may only 
     provide assistance under the pilot program under paragraph 
     (1) to a country based on consultation with Congress.
       ``(4) Additional criteria.--In making determinations of 
     eligibility under this subsection, the President should give 
     preferential consideration to projects sponsored by or 
     significantly involving United States small businesses or 
     cooperatives.
       ``(5) Implementation.--To the extent provided for in 
     advance in appropriations Acts, the President is authorized 
     to create such legal mechanisms as may be necessary for the 
     implementation of its authorities under this subsection. Such 
     legal mechanisms may be deemed non-Federal borrowers for 
     purposes of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661 et seq.).
       ``(6) Loan guarantees.--Notwithstanding any other provision 
     of law, the President is authorized to provide assistance 
     under the pilot program under paragraph (1) in the form of 
     partial loan guarantees, provided that such a loan guarantee 
     may not exceed 75 percent of the total amount of the loan.
       ``(7) Coordination.--The President is authorized to 
     coordinate the activities of each agency or department of the 
     United States to provide to a country assistance for an 
     activity described in subparagraphs (A) through (D) of 
     paragraph (2).
       ``(8) Federal agency responsibilities.--Under the direction 
     of the President, the head of each agency or department of 
     the United States is authorized to assign, detail, or 
     otherwise make available to the Department of State any 
     officer or employee of such agency or department who 
     possesses expertise related to an activity described in 
     subparagraphs (A) through (D) of paragraph (2).
       ``(9) Report to congress.--The President shall annually 
     prepare and submit to the Committee on Appropriations, the 
     Committee on Foreign Relations, and the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Appropriations, the Committee on International 
     Relations, and the Committee on Energy and Commerce of the 
     House of Representatives a report concerning the 
     implementation of the pilot program under this subsection.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective during the 5-year period beginning on the 
     date of enactment of this Act.

     SEC. 5. SAFE WATER STRATEGY.

       (a) Requirement for Strategy.--The Secretary of State, in 
     close coordination with the Administrator of the United 
     States Agency for International Development and in 
     consultation with other appropriate Federal agencies, 
     appropriate international organizations, foreign governments, 
     United States nongovernmental organizations, and other 
     appropriate entities, shall develop and implement a strategy 
     to further the United States foreign assistance objective to 
     promote economic development by promoting good health through 
     the provision of assistance to expand access to safe water 
     and sanitation, to promote sound water management, and to 
     improve hygiene for people around the world.
       (b) Content.--The strategy required by subsection (a) shall 
     include--
       (1) an assessment of the activities that have been carried 
     out, or that are planned to be carried out, by the United 
     States to improve hygiene or access to safe water and 
     sanitation by underserved rural or urban poor populations, 
     the countries of sub-Saharan Africa, or in countries that 
     receive assistance from the United States Agency for 
     International Development;
       (2) methods to achieve long-term sustainability in the 
     provision of access to safe water and sanitation, the 
     maintenance of water and sanitation facilities, and effective 
     promotion of improved hygiene, in the context of appropriate 
     financial, municipal, health, and water management systems;
       (3) methods to use United States assistance to promote 
     community-based approaches, including the involvement of 
     civil society, to further the objectives described in 
     subsection (a);
       (4) methods to mobilize and leverage the financial, 
     technical, and managerial expertise of businesses, 
     governments, nongovernmental, and civil society in the form 
     of public-private alliances such as the Global Development 
     Alliances of the Agency which encourage innovation and 
     effective solutions for improving sustainable access to safe 
     water and sanitation;
       (5) goals to further the objectives described in subsection 
     (a) and methods to measure whether progress is being made to 
     meet such goals, including indicators to measure progress and 
     procedures to regularly evaluate and monitor progress;
       (6) assessments of the challenges and obstacles that impede 
     the provision of access to safe water and sanitation, as well 
     as the improvement of hygiene practices, critical in 
     developing countries;
       (7) assessments of how access to safe water, sanitation, 
     and hygiene programs, as well as water resource programs, 
     effectively support the goal of combating the human 
     immunodeficiency virus (HIV) and the acquired immune 
     deficiency syndrome (AIDS);
       (8) assessments of the roles that other countries or 
     entities, including international organizations, could play 
     in furthering such objective and mechanisms to establish 
     coordination among the United States, foreign countries, and 
     other entities;
       (9) assessments of the level of resources that are needed 
     each year to further such objective; and
       (10) methods to coordinate and integrate programs of the 
     United States to further such objective with other United 
     States foreign assistance programs.
       (c) Reports to Congress.--
       (1) Initial report.--Not later than 180 days after the date 
     of enactment of this Act, the President shall submit to 
     Congress a report that describes the strategy required by 
     subsection (a).
       (2) Report.--Not less than once every 2 years after the 
     submission of the initial report under paragraph (1), the 
     President shall submit to Congress a report on the status of 
     the implementation of the strategy and progress made in 
     achieving the objective described in subsection (a).

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     for each of the fiscal years 2006 through 2011 such sums as 
     may be necessary to carry out this Act and the amendments 
     made by this Act.
       (b) Other Amounts.--Amounts appropriated pursuant to the 
     authorization of appropriations in subsection (a) shall be in 
     addition to the amounts otherwise available to carry out this 
     Act and the amendments made by this Act.
                                 ______