[Congressional Record Volume 153, Number 118 (Monday, July 23, 2007)]
[House]
[Pages H8204-H8210]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  OVERSEAS PRIVATE INVESTMENT CORPORATION REAUTHORIZATION ACT OF 2007

  Mr. SHERMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2798) to reauthorize the programs of the Overseas Private 
Investment Corporation, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2798

       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 ``Overseas Private Investment 
     Corporation Reauthorization Act of 2007''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) Since its founding in 1971, the Overseas Private 
     Investment Corporation (in this section referred to as 
     ``OPIC'') has helped to mobilize and facilitate private 
     capital by United States investors in developing and emerging 
     market countries in support of United States foreign policy 
     and development goals.
       (2) OPIC assistance should not, in any way, support 
     projects in countries that reject their obligations to 
     support international peace, security, and basic human 
     rights.
       (3) OPIC assistance should not be provided to those who 
     support enemies of the United States.
       (4) OPIC assistance is a privilege and should be granted to 
     persons that, along with their affiliated companies, 
     demonstrate responsible and sustainable business practices, 
     particularly with regard to the environment, international 
     worker rights, and efforts against genocide and nuclear 
     proliferation. Denial of OPIC assistance is not a penalty or 
     sanction.
       (5) Over OPIC's 35-year history, OPIC has supported 
     $177,000,000,000 in operating investments in more than 150 
     developing countries, helping to create more than 800,000 
     jobs and some $13,000,000,000 in host-government revenues.
       (6) OPIC projects have generated $71,000,000,000 in United 
     States exports and supported more than 271,000 United States 
     jobs.
       (7) Projects assisted by OPIC in fiscal year 2006 are 
     projected to generate $1,000,000,000 in United States 
     exports, support more than 2,700 United States jobs, and have 
     a positive impact on the United States balance of payments.
       (8) In fiscal year 2006, 87 percent of all OPIC-supported 
     projects supported small-and-medium-sized businesses in the 
     United States.
       (9) In an era of limited Federal budgetary resources, OPIC 
     has consistently demonstrated an ability to operate on a 
     self-sustaining basis to support United States companies, all 
     at a net cost of zero to the United States taxpayer.
       (10) OPIC has reserves totaling approximately 
     $5,300,000,000 and will make an estimated net budget 
     contribution to the international affairs account of 
     $159,000,000 in fiscal year 2008.

     SEC. 3. REAUTHORIZATION OF OPIC PROGRAMS.

       Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2195(a)(2)) is amended by striking ``September 30, 
     2007'' and inserting ``September 30, 2011'' .

     SEC. 4. PREFERENTIAL CONSIDERATION OF CERTAIN INVESTMENT 
                   PROJECTS.

       Section 231(f) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2191(f)) is amended to read as follows:
       ``(f) to give preferential consideration to investment 
     projects in less developed countries the governments of which 
     are receptive to private enterprise, domestic and foreign, 
     and to projects in countries the governments of which are 
     willing and able to maintain conditions that enable private 
     enterprise to make its full contribution to the development 
     process;''.

[[Page H8205]]

     SEC. 5. REQUIREMENTS REGARDING INTERNATIONAL WORKER RIGHTS.

       (a) Country Requirements.--Subsection (a) of section 231A 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2191a(a)) is 
     amended--
       (1) by amending the subsection heading to read as follows: 
     ``International Worker Rights'';
       (2) in paragraph (4), by striking ``(4) In'' and inserting 
     ``(5) Additional determination.--In '' ; and
       (3) by striking paragraphs (1) through (3) and inserting 
     the following:
       ``(1) Limitation on opic activities.--(A) The Corporation 
     may insure, reinsure, guarantee, or finance a project only if 
     the country in which the project is to be undertaken has made 
     or is making significant progress towards the recognition, 
     adoption, and implementation of laws that substantially 
     provide international worker rights, including in any 
     designated zone, or special administrative region or area, in 
     that country.
       ``(B) The Corporation shall also include the following 
     language, in substantially the following form, in all 
     contracts which the Corporation enters into with eligible 
     investors to provide financial support under this title:
       `` `The investor agrees not to take any actions to obstruct 
     or prevent employees of the foreign enterprise from 
     exercising their international worker rights (as defined in 
     section 238(h) of the Foreign Assistance Act of 1961), and 
     agrees to adhere to the obligations regarding those 
     international worker rights.'
       ``(2) Preference to certain countries.--To the degree 
     possible and consistent with its development objectives, the 
     Corporation shall give preferential consideration to projects 
     in countries that have adopted, maintain, and enforce laws 
     that substantially provide international worker rights.
       ``(3) Use of annual reports on international worker 
     rights.--The Corporation shall, in carrying out paragraph 
     (1)(A), use, among other sources, the reports submitted to 
     the Congress pursuant to section 504 of the Trade Act of 
     1974. Such other sources include the observations, reports, 
     and recommendations of the International Labor Organization, 
     and other relevant organizations.
       ``(4) Inapplicability to humanitarian activities.--
     Paragraph (1) shall not prohibit the Corporation from 
     providing any insurance, reinsurance, guaranty, financing, or 
     other assistance for the provision of humanitarian assistance 
     in a country.''.
       (b) Board of Directors.--Section 233(b) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2193(b)) is amended by 
     adding at the end the following: ``The selection of the small 
     business, organized labor, and cooperative directors should 
     be made, respectively, in consultation with relevant 
     representative organizations.''.
       (c) Definitions.--Section 238 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2198) is amended--
       (1) in subsection (f), by striking ``and'' after the 
     semicolon;
       (2) in subsection (g), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(h) the term `international worker rights' means--
       ``(1) internationally recognized worker rights, as defined 
     in section 507(4) of the Trade Act of 1974 (19 U.S.C. 
     2467(4)); and
       ``(2) the elimination of discrimination with respect to 
     employment and occupation.''.
       (d) General Provisions and Powers.--Section 239 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2199) is amended--
       (1) in subsection (h), by adding at the end the following: 
     ``In addition, the Corporation should consult with relevant 
     stakeholders in developing such criteria.''; and
       (2) in subsection (i), in the first sentence, by inserting 
     ``, including international worker rights,'' after 
     ``fundamental freedoms''.

     SEC. 6. ENVIRONMENTAL ASSESSMENTS.

       Section 231A(b) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2191a(b)) is amended to read as follows:
       ``(b) Environmental Impact.--The Board of Directors of the 
     Corporation shall not vote in favor of any action proposed to 
     be taken by the Corporation that is likely to have 
     significant adverse environmental impacts, unless for at 
     least 60 days before the date of the vote--
       ``(1) an environmental impact assessment, or initial 
     environmental audit, analyzing the environmental impacts of 
     the proposed action and of alternatives to the proposed 
     action has been completed by the project applicant and made 
     available to the Board of Directors; and
       ``(2) such assessment or audit has been made available to 
     the public of the United States, locally affected groups in 
     the host country, and host country nongovernmental 
     organizations.''.

     SEC. 7. COMMUNITY SUPPORT.

       Section 237 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2197) is amended by adding at the end the following:
       ``(p) Community Support.--To the maximum extent 
     practicable, the Corporation shall require the applicant for 
     a project that is subject to section 231A(b) to obtain broad 
     community support for the project.''.

     SEC. 8. CLIMATE CHANGE MITIGATION ACTION PLAN.

       Title IV of chapter 2 of part I of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2291 et seq.) is amended by inserting 
     after section 234A the following new section:

     ``SEC. 234B. CLIMATE CHANGE MITIGATION.

       ``(a) Mitigation Action Plan.--The Corporation shall, not 
     later than 180 days after the date of the enactment of the 
     Overseas Private Investment Corporation Reauthorization Act 
     of 2007, institute a climate change mitigation action plan 
     that includes the following:
       ``(1) Clean and efficient energy technology.--
       ``(A) Increasing assistance.--The Corporation shall 
     establish a goal of substantially increasing its support of 
     projects that use, develop, or otherwise promote the use of 
     clean energy technologies over the 4-year period beginning on 
     the date of the enactment of the Overseas Private Investment 
     Corporation Reauthorization Act of 2007.
       ``(B) Preferential treatment to projects.--The Corporation 
     shall give preferential treatment to the evaluation and 
     awarding of assistance for and provide greater flexibility in 
     supporting projects that use, develop, or otherwise promote 
     the use of clean and efficient energy technologies.
       ``(2) Environmental impact assessments.--
       ``(A) Greenhouse gas emissions.--The Corporation shall, in 
     making an environmental impact assessment for a project under 
     section 231A(b), take into account the degree to which the 
     project contributes to the emission of greenhouse gases.
       ``(B) Other duties not affected.--The requirement under 
     subparagraph (A) is in addition to any other requirement, 
     obligation, or duty that the Corporation has.
       ``(3) Report to congressional committees.--The Corporation 
     shall, within 180 days after the date of the enactment of the 
     Overseas Private Investment Corporation Reauthorization Act 
     of 2007, submit to the Committee on Foreign Affairs of the 
     House of Representatives and the Committee on Foreign 
     Relations of the Senate a report on the plan developed to 
     carry out paragraph (1)(A). Thereafter, the Corporation shall 
     include in its annual report under section 240A a discussion 
     of such plan and its implementation.
       ``(b) Extraction Investments.--
       ``(1) Prior notification to congressional committees.--The 
     Corporation may not approve any contract of insurance or 
     reinsurance, or any guaranty, or enter into any agreement to 
     provide financing for any project which significantly 
     involves an extractive industry and in which assistance by 
     the Corporation would be valued at $10,000,000 or more 
     (including contingent liability), until at least 30 days 
     after the Corporation notifies the Committee on Foreign 
     Affairs of the House of Representatives and the Committee on 
     Foreign Relations of the Senate of such contract or 
     agreement.
       ``(2) Commitment to eiti principles.--The Corporation may 
     approve a contract of insurance or reinsurance, or any 
     guaranty, or enter into an agreement to provide financing to 
     an eligible investor for a project that significantly 
     involves an extractive industry only if--
       ``(A) the eligible investor has agreed to implement the 
     Extractive Industries Transparency Initiative principles and 
     criteria, or substantially similar principles and criteria; 
     or
       ``(B) the host country where the project is to be carried 
     out has committed to the Extractive Industries Transparency 
     Initiative principles and criteria, or substantially similar 
     principles and criteria.
       ``(3) Preference for certain projects.--With respect to all 
     projects that significantly involve an extractive industry, 
     the Corporation, to the degree possible and consistent with 
     its development objectives, shall give preference to a 
     project in which both the eligible investor has agreed to 
     implement the Extractive Industries Transparency Initiative 
     principles and criteria, or substantially similar principles 
     and criteria, and the host country where the project is to be 
     carried out has committed to the Extractive Industries 
     Transparency Initiative principles and criteria, or 
     substantially similar principles and criteria.
       ``(4) Definitions.--In this subsection:
       ``(A) Extractive industry.--The term `extractive industry' 
     refers to an enterprise engaged in the exploration, 
     development, or extraction of oil and gas reserves, metal 
     ores, gemstones, industrial minerals, or coal.
       ``(B) Extractive industries transparency initiative 
     principles and criteria.--The term `Extractive Industries 
     Transparency Initiative principles and criteria' means the 
     principles and criteria of the Extractive Industries 
     Transparency Initiative, as set forth in Annex A to the Anti-
     Corruption Policies and Strategies Handbook of the 
     Corporation, as published in September 2006.
       ``(5) Reporting requirement.--The Corporation shall include 
     in its annual report required under section 240A a 
     description of its activities to carry out this subsection.
       ``(c) Definitions.--In this section:
       ``(1) Clean and efficient energy technology.--The term 
     `clean and efficient energy technology' means an energy 
     supply or end-use technology--
       ``(A) such as--
       ``(i) solar technology;
       ``(ii) wind technology;
       ``(iii) geothermal technology;
       ``(iv) hydroelectric technology; and
       ``(v) carbon capture technology; and
       ``(B) that, over its life cycle and compared to a similar 
     technology already in commercial use--
       ``(i) is reliable, affordable, economically viable, 
     socially acceptable, and compatible

[[Page H8206]]

     with the needs and norms of the country involved;
       ``(ii) results in--

       ``(I) reduced emissions of greenhouse gases; or
       ``(II) increased geological sequestration; and

       ``(iii) may--

       ``(I) substantially lower emissions of air pollutants; or
       ``(II) generate substantially smaller and less hazardous 
     quantities of solid or liquid waste.

       ``(2) Greenhouse gas.--The term `greenhouse gas' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons; or
       ``(F) sulfur hexafluoride.''.

     SEC. 9. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE 
                   CERTAIN RAILWAY CONNECTIONS AND RAILWAY-RELATED 
                   CONNECTIONS.

       Section 237 of the of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2197) is further amended by adding at the end the 
     following:
       ``(q) Prohibition on Assistance for Certain Railway 
     Projects.--The Corporation may not provide insurance, 
     reinsurance, a guaranty, financing, or other assistance to 
     support the development or promotion of any railway 
     connection or railway-related connection that does not 
     traverse or connect with Armenia and does connect Azerbaijan 
     and Turkey.''.

     SEC. 10. INELIGIBILITY OF PERSONS DOING CERTAIN BUSINESS WITH 
                   STATE SPONSORS OF TERRORISM.

       (a) In General.--Section 237 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2197) is further amended by adding at the 
     end the following:
       ``(r) Ineligible Projects.--
       ``(1) In general.--A project will not be eligible to 
     receive support provided by the Corporation under this title 
     if either of the following applies:
       ``(A)(i) An applicant for insurance, reinsurance, 
     financing, or other support for a project provided to the 
     government of a state sponsor of terrorism a loan, or an 
     extension of credit, that remains outstanding.
       ``(ii) For purposes of this subparagraph, the sale of 
     goods, other than food or medicine, on any terms other than a 
     cash basis shall be considered to be an extension of credit.
       ``(B) An applicant for insurance, reinsurance, financing, 
     or other support for a project has an investment commitment 
     valued at $20,000,000 or more for the energy sector in a 
     country that is a state sponsor of terrorism.
       ``(2) Definitions.--In this subsection:
       ``(A) Cash basis.--The term `cash basis' refers to a sale 
     in which the purchaser of goods or services is required to 
     make payment in full within 45 days after receiving the goods 
     or services.
       ``(B) Energy sector.--The term `energy sector' refers to 
     activities to develop or transport petroleum or natural gas 
     resources.
       ``(C) Investment commitment.--The term `investment 
     commitment' means any of the following activities if such 
     activity is undertaken pursuant to a commitment, or pursuant 
     to the exercise of rights under a commitment, that was 
     entered into with the government of a state sponsor of 
     terrorism or a nongovernmental entity in a country that is a 
     state sponsor of terrorism:
       ``(i) The entry into a contract that includes 
     responsibility for the development of petroleum resources 
     located in a country that is a state sponsor of terrorism, or 
     the entry into a contract providing for the general 
     supervision and guarantee of another person's performance of 
     such a contract.
       ``(ii) The purchase of a share of ownership, including an 
     equity interest, in that development.
       ``(iii) The entry into a contract providing for the 
     participation in royalties, earnings, or profits in that 
     development, without regard to the form of the participation.
       ``(D) State sponsor of terrorism.--The term `state sponsor 
     of terrorism' means a country the government of which the 
     Secretary of State has determined, for purposes of section 
     6(j) of the Export Administration Act of 1979, section 620A 
     of the Foreign Assistance Act of 1961, section 40 of the Arms 
     Export Control Act, or any other provision of law, to be a 
     government that has repeatedly provided support for acts of 
     international terrorism.
       ``(3) Certification.--
       ``(A) By applicants.--A person or entity applying for 
     insurance, reinsurance, a guaranty, financing, or other 
     assistance under this title may not receive such support 
     unless its chief executive officer certifies to the 
     Corporation, under penalty of perjury, that the person or 
     entity and its majority-owned subsidiaries are not engaged in 
     any activity described in subparagraph (A) or (B) of 
     paragraph (1).
       ``(B) By ultimate parent entities.--In the case of an 
     applicant that is a majority-owned entity of another entity, 
     in addition to the certification under subparagraph (A), the 
     chief executive officer of the ultimate parent entity of the 
     applicant must certify, under penalty of perjury, that it and 
     its majority-owned subsidiaries are not engaged in any 
     activity described in subparagraph (A) or (B) of paragraph 
     (1).
       ``(C) Application to straw man transactions.--In any case 
     in which--
       ``(i) an applicant for insurance, reinsurance, financing, 
     or other assistance under this title is providing goods and 
     services to a project,
       ``(ii) more than 50 percent of such goods and services are 
     acquired from an unaffiliated entity, and
       ``(iii) the unaffiliated entity is receiving $20,000,000 or 
     more, or sums greater than 50 percent of the amount of the 
     assistance provided by the Corporation for the project 
     (including contingent liability), for such goods or services,

     then the chief executive officer of the unaffiliated entity 
     must make a certification under subparagraph (A), and any 
     ultimate parent entity must make a certification required by 
     subparagraph (B).
       ``(D) Diligent inquiry.--A certification required by 
     subparagraph (A), (B), or (C) may be made to the best 
     knowledge and belief of the certifying officer if that 
     officer states that he or she has made diligent inquiry into 
     the matter certified.
       ``(E) Exception.--(i) A chief executive officer of an 
     applicant or other entity may provide a certification 
     required by subparagraph (A), (B), or (C) with respect to the 
     activity of a majority-owned subsidiary or entity 
     notwithstanding activity by such majority-owned subsidiary or 
     entity that would cause a project to be ineligible for 
     support under subparagraph (A) or (B) of paragraph (1) if 
     such activity is carried out under a contract or other 
     obligation of such majority-owned subsidiary or entity that 
     was entered into or incurred before the acquisition of such 
     majority-owned subsidiary or entity by the applicant or 
     ultimate parent entity.
       ``(ii) Clause (i) shall not apply if the terms of such 
     contract or other obligation are expanded or extended after 
     such acquisition.
       ``(F) Definition.--For purposes of this paragraph, a person 
     is an ultimate parent of an entity if the person owns 
     directly, or through majority ownership of other entities, 
     greater than 50 percent of the equity of the entity.
       ``(4) Exception.--The prohibition in paragraph (1) shall 
     not--
       ``(A) apply to a loan, extension of credit, or investment 
     commitment by an applicant, or other entity covered by a 
     certification under subparagraph (A), (B), or (C) of 
     paragraph (3), in Southern Sudan, Southern Kordofan/Nuba 
     Mountains State, Blue Nile State, or Abyei, Darfur, if the 
     Corporation, with the concurrence of the Secretary of State, 
     determines that such loan, extension of credit, or investment 
     commitment will provide emergency relief, promote economic 
     self-sufficiency, or implement a nonmilitary program in 
     support of a viable peace agreement in Sudan, including the 
     Comprehensive Peace Agreement for Sudan and the Darfur Peace 
     Agreement; or
       ``(B) prohibit the Corporation from providing support for 
     projects in Southern Sudan, Southern Kordofan/Nuba Mountains 
     State, Blue Nile State, and Abyei, Darfur, if the 
     Corporation, with the concurrence of the Secretary of State, 
     determines that such projects will provide emergency relief, 
     promote economic self-sufficiency, or implement a nonmilitary 
     program in support of a viable peace agreement in Sudan, 
     including the Comprehensive Peace Agreement for Sudan and the 
     Darfur Peace Agreement.
       ``(5) Prospective application of subsection.--This 
     subsection shall not be applied to limit support by the 
     Corporation under this title because an applicant, or other 
     entity covered by a certification under subparagraph (A), 
     (B), or (C) of paragraph (3) engaged in commercial activity 
     specifically licensed by the Office of Foreign Assets Control 
     of the Department of the Treasury.''.
       (b) Termination.--
       (1) In general.--The amendment made by this section shall 
     cease to be effective with respect to a country that is a 
     state sponsor of terrorism 30 days after the President 
     certifies to the appropriate congressional committees that--
       (A) the country has ceased providing support for acts of 
     international terrorism and no longer satisfies the 
     requirements for designation as a state sponsor of terrorism;
       (B) the country does not possess nuclear weapons or a 
     significant program to develop nuclear weapons; and
       (C) the country is not committing genocide or conducting a 
     program of ethnic cleansing against a civilian population 
     that approaches genocide.
       (2) Definitions.--In this subsection:
       (A) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate.
       (B) State sponsor of terrorism.--The term ``state sponsor 
     of terrorism'' has the meaning given that term in section 
     237(r)(2)(D) of the Foreign Assistance Act of 1961, as added 
     by subsection (a) of this section.

     SEC. 11. INCREASED TRANSPARENCY.

       (a) In General.--Section 237 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2197) is further amended by adding at the 
     end the following new subsections:
       ``(s) Availability of Project Information.--Beginning 90 
     days after the date of the enactment of the Overseas Private 
     Investment Corporation Reauthorization Act of 2007, the 
     Corporation shall make public, and post on its Internet 
     website, summaries of all new projects supported by the 
     Corporation, and other relevant information, except

[[Page H8207]]

     that the Corporation shall not include any confidential 
     business information in the summaries and information made 
     available under this subsection.
       ``(t) Review of Methodology.--Not later than 180 days after 
     the date of the enactment of the Overseas Private Investment 
     Corporation Reauthorization Act of 2007, the Corporation 
     shall publish in the Federal Register and periodically 
     revise, subject to a period of public comment, the detailed 
     methodology, including relevant regulations, used to assess 
     and monitor the impact of projects supported by the 
     Corporation on the development and environment of, and 
     international worker rights in, host countries, and on United 
     States employment.
       ``(u) Public Notice Prior to Project Approval.--
       ``(1) Public notice.--The Board of Directors of the 
     Corporation may not vote in favor of any action proposed to 
     be taken by the Corporation on any Category A project until 
     at least 60 days after the Corporation--
       ``(A) makes available for public comment a summary of the 
     project and relevant information about the project; and
       ``(B) makes the summary and information described in 
     paragraph (1) available to locally affected groups in the 
     area of impact of the proposed project, and to host country 
     nongovernmental organizations.

     The Corporation shall not include any business confidential 
     information in the summary and information made available 
     under subparagraphs (A) and (B).
       ``(2) Published response.--To the extent practicable, the 
     Corporation shall publish responses to the comments received 
     under paragraph (1) with respect to a Category A project and 
     submit the responses to the Board not later than 7 days 
     before a vote is to be taken on any action proposed by the 
     Corporation on the project.
       ``(3) Definitions.--In this subsection, the term `Category 
     A project' means any project or other activity for which the 
     Corporation proposes to provide insurance, reinsurance, 
     financing, or other support under this title and which is 
     likely to have significant adverse environmental impacts.''.
       (b) Office of Accountability.--Section 237 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2197) is further amended by 
     adding at the end the following new subsection:
       ``(v) Office of Accountability.--The Corporation shall 
     maintain an Office of Accountability to provide problem-
     solving services for projects supported by the Corporation 
     and to review the Corporation's compliance with its 
     environmental, social, worker rights, human rights, and 
     transparency policies and procedures, to the maximum extent 
     practicable. The Office of Accountability shall operate in a 
     manner that is fair, objective and transparent.''.

     SEC. 12. FRAUD AND OTHER BREACHES OF CONTRACT.

       Section 237(n) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2197(n)) is amended--
       (1) by striking ``Whoever'' and inserting:
       ``(1) In general.--Whoever''; and
       (2) by adding at the end the following:
       ``(2) Deferrals to department of justice.--(A) The 
     President of the Corporation shall refer to the Department of 
     Justice for appropriate action information known to the 
     Corporation concerning any substantial evidence of--
       ``(i) a violation of this title;
       ``(ii) a material breach of contract entered into with the 
     Corporation by an eligible investor; or
       ``(iii) a material false representation made by an investor 
     to the Corporation.
       ``(B) Subparagraph (A) does not apply if the President of 
     the Corporation concludes that the matter described in clause 
     (i), (ii), or (iii), as the case may be, of subparagraph 
     (A)--
       ``(i) is not evidence of a possible violation of criminal 
     law; and
       ``(ii) is not evidence that the Federal Government is 
     entitled to civil remedy or to impose a civil penalty. ''.

     SEC. 13. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS.

       (a) In General.--Section 239 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2199) is amended by adding at the end the 
     following:
       ``(l) Transparency and Accountability of Investment 
     Funds.--
       ``(1) Competitive selection of investment fund 
     management.--With respect to any investment fund that the 
     Corporation creates on or after the date of the enactment of 
     the Overseas Private Investment Corporation Reauthorization 
     Act of 2007, the Corporation may select persons to manage the 
     fund only by contract using full and open competitive 
     procedures.
       ``(2) Criteria for selection.--In assessing proposals for 
     investment fund management proposals, the Corporation shall 
     consider, in addition to other factors, the following:
       ``(A) The prospective fund management's experience, depth, 
     and cohesiveness.
       ``(B) The prospective fund management's track record in 
     investing risk capital in emerging markets.
       ``(C) The prospective fund management's experience, 
     management record, and monitoring capabilities in its target 
     countries, including details of local presence (directly or 
     through local alliances).
       ``(D) The prospective fund management's experience as a 
     fiduciary in managing institutional capital, meeting 
     reporting requirements, and administration.
       ``(E) The prospective fund management's record in avoiding 
     investments in companies that would be disqualified under 
     section 237(r).
       ``(3) Annual report.--The Corporation shall include in each 
     annual report under section 240A an analysis of the 
     investment fund portfolio of the Corporation, including the 
     following:
       ``(A) Fund performance.--An analysis of the aggregate 
     financial performance of the investment fund portfolio 
     grouped by region and maturity.
       ``(B) Status of loan guaranties.--The amount of guaranties 
     committed by the Corporation to support investment funds, 
     including the percentage of such amount that has been 
     disbursed to the investment funds.
       ``(C) Risk ratings.--The definition of risk ratings, and 
     the current aggregate risk ratings for the investment fund 
     portfolio, including the number of investment funds in each 
     of the Corporation's rating categories.
       ``(D) Competitive selection of investment fund 
     management.--The number of proposals received and evaluated 
     for each newly established investment fund.''.
       (b) GAO Audit.--Not later than 1 year after the submission 
     of the first report to Congress under section 240A of the 
     Foreign Assistance Act of 1961 that includes the information 
     required by section 239(l)(3) of that Act (as added by 
     subsection (a) of this section), the Comptroller General of 
     the United States shall prepare and submit to the Committee 
     on Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate an independent 
     assessment of the investment fund portfolio of the Overseas 
     Private Investment Corporation, covering the items required 
     to be addressed under such section 239(l)(3).

     SEC. 14. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ.

       Section 239 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2199) is amended by adding at the end the following:
       ``(m) Operations in Iraq.--Notwithstanding subsections (a) 
     and (b) of section 237, the Corporation is authorized to 
     undertake in Iraq any program authorized by this title.''.

     SEC. 15. CONSISTENCY WITH EXISTING LAW.

       Section 239 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2199) is further amended by adding at the end the 
     following:
       ``(n) Consistency With Other Law.--Section 620L of this Act 
     shall apply to any insurance, reinsurance, guaranty, or other 
     financing issued by the Corporation for projects in the West 
     Bank and Gaza to the same extent as such section applies to 
     other assistance under this Act.
       ``(o) Limitation on Assistance to Gaza and the West Bank.--
     The Corporation may not provide insurance, reinsurance, a 
     guaranty, financing, or other assistance to support a project 
     in any part of Gaza or the West Bank unless the Secretary of 
     State determines that the location for the project is not 
     under the effective control of Hamas or any other foreign 
     terrorist organization designated under section 219 of the 
     Immigration and Nationality Act (8 U.S.C. 1189).''.

     SEC. 16. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM 
                   CONTINGENT LIABILITY.

       Section 239 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2199) is further amended by adding at the end the 
     following:
       ``(p) Congressional Notification of Increase in Maximum 
     Contingent Liability.--The Corporation shall notify the 
     Committee on Foreign Affairs of the House of Representatives 
     and the Committee on Foreign Relations of the Senate not 
     later than 15 days after the date on which the Corporation's 
     maximum contingent liability outstanding at any one time 
     pursuant to insurance issued under section 234(a), and the 
     amount of financing issued under sections 234(b) and (c), 
     exceeds the previous fiscal year's maximum contingent 
     liability by 25 percent.''.

     SEC. 17. ASSISTANCE FOR SMALL BUSINESSES AND ENTITIES.

       Section 240 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2200) is amended by adding at the end the following:
       ``(c) Resources Dedicated to Small Businesses, 
     Cooperatives, and Other Small United States Investors.--The 
     Corporation shall ensure that adequate personnel and 
     resources, including senior officers, are dedicated to assist 
     United States small businesses, cooperatives, and other small 
     United States investors in obtaining insurance, reinsurance, 
     financing, and other support under this title. The 
     Corporation shall include, in each annual report under 
     section 240A, the following information with respect to the 
     period covered by the report:
       ``(1) A description of such personnel and resources.
       ``(2) The number of small businesses, cooperatives, and 
     other small United States investors that received such 
     insurance, reinsurance, financing, and other support, and the 
     dollar value of such insurance, reinsurance, financing and 
     other support.
       ``(3) A description of the projects for which such 
     insurance, reinsurance, financing, and other support was 
     provided.''.

     SEC. 18. TECHNICAL CORRECTIONS.

       (a) Pilot Equity Finance Program.--Section 234 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2194) is amended--
       (1) by striking subsection (g); and
       (2) by redesignating subsection (h) as subsection (g).

[[Page H8208]]

       (b) Transfer Authority.--Section 235 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2195) is amended--
       (1) by striking subsection (e); and
       (2) by redesignating subsection (f) as subsection (e).
       (c) Guaranty Contract.--Section 237(j) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2197(j)) is amended by 
     inserting ``insurance, reinsurance, and'' after ``Each''.
       (d) Transfer of Predecessor Programs and Authorities.--
       (1) Transfer.--Section 239 of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2199), as amended by the preceding provisions 
     of this Act, is amended--
       (A) by striking subsection (b); and
       (B) by redesignating the subsections (c) through (p) as 
     subsections (b) through (o), respectively.
       (2) Conforming amendments.--(A) Section 237(m)(1) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2197(m)(1)) is 
     amended by striking ``239(g)'' and inserting ``239(f)''.
       (B) Section 240A(a) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2200A(a)) is amended--
       (i) in paragraph (1), by striking ``239(h)'' and inserting 
     ``239(g)''; and
       (ii) in paragraph (2)(A), by striking ``239(i)'' and 
     inserting ``239(h)''.
       (C) Section 209(e)(16) of the Admiral James W. Nance and 
     Meg Donovan Foreign Relations Authorization Act, Fiscal Years 
     2000 and 2001 (as enacted into law by section 1000(a)(7) of 
     Public Law 106-113; 31 U.S.C. 1113 note) is amended by 
     striking ``239(c)'' and ``2199(c)'' and inserting ``239(b)'' 
     and ``2199(b)'', respectively.
       (e) Additional Clerical Amendments.--Section 234(b) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2194(b)) is amended 
     by striking ``235(a)(2)'' and inserting ``235(a)(1)''.

     SEC. 19. EFFECTIVE DATE.

       (a) New Applications.--This Act and the amendments made by 
     this Act shall apply with respect to any application for 
     insurance, reinsurance, a guaranty, financing, or other 
     support under title IV of chapter 2 of part I of the Foreign 
     Assistance Act of 1961 if the application is received by the 
     Overseas Private Investment Corporation on or after July 1, 
     2007, and the application is approved by the Corporation on 
     or after the date of the enactment of this Act.
       (b) Extensions and Renewals.--
       (1) In general.--Subject to paragraph (2), this Act and the 
     amendments made by this Act shall apply with respect to any 
     extension or renewal of a contract or agreement for any such 
     insurance, reinsurance, guaranty, financing, or support that 
     was entered into by the Corporation before the date of the 
     enactment of this Act if the extension or renewal is approved 
     by the Corporation on or after such date of enactment.
       (2) Exception.--This Act and the amendments made by this 
     Act shall not apply to any extension or renewal which is 
     substantially identical to an extension or renewal formally 
     requested in a detailed writing filed with the Corporation 
     before July 1, 2007.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Sherman) and the gentleman from Indiana (Mr. Pence) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. SHERMAN. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days to revise and extend their remarks and 
include extraneous material on the bill now under consideration, and on 
the next three resolutions that the House will consider, H. Res. 521, 
H. Res. 380, and H. Con. Res. 139.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. SHERMAN. Mr. Speaker, I rise in strong support of this bill, and 
I yield myself such time as I may consume.
  I would like to thank the many colleagues who have been involved in 
crafting this legislation, including Chairman Lantos, Ranking Member 
Ros-Lehtinen, Ranking Member Royce, Mr. Manzullo, Ambassador Watson and 
others. Their assistance was critical in the bipartisan effort of 
making the Overseas Private Investment Corporation even more effective.
  As I proceed, I will point out that the Overseas Private Investment 
Corporation is saddled with the most unfortunate acronym in Washington, 
OPIC. Let us hope it is not confused with that other, nefarious 
organization, OPEC.
  OPIC's mission is ``to mobilize and facilitate the participation of 
United States private capital and skills in the economic and social 
development of less developed countries and areas.''
  Since its creation in 1971, the Overseas Private Investment 
Corporation has generated $71 billion in U.S. exports, supported over 
271,000 U.S. jobs, and supported projects in over 150 developing 
countries.
  OPIC uses a nimble, private-sector model to accomplish its important 
public-sector goals, to further development in poor countries, 
including unstable countries, and to support the goals of American 
foreign policy. It supports targeted investments in some of the world's 
poorest countries, many of which would otherwise not benefit from 
American private-sector projects because the private sector would be 
otherwise unwilling to take the risks involved.
  OPIC, being part of the Federal Government, is uniquely qualified to 
carry out this mission. There are private sector organizations which 
will sell on rare occasions expropriation insurance, but they often 
refuse to sell such insurance or refuse to finance projects in 
difficult and problematic countries because if expropriation did occur, 
they would only have their private-sector contacts to persuade the 
foreign government to relent. In the case of OPIC, it is able to rely 
on the United States State Department to convince foreign countries not 
to expropriate projects and assets funded by or guaranteed by the 
United States agency.
  OPIC has a sophisticated system that reviews applications and funds 
projects in some of the places where companies are least likely to get 
the very kind of insurance they are most likely to need; namely, 
insurance for political risk. In fact, OPIC requires applicants for 
assistance to seek insurance in the private market and certify that it 
was unavailable before OPIC will offer its services.
  OPIC operates at no net cost to the United States taxpayer. 
Amazingly, it has turned a profit in every single year of its 
operations and now has reserves of $5.3 billion on deposit in the U.S. 
Treasury. Despite working in some of the least developed countries of 
the world, it has amassed this $5.3 billion in reserves. If all of our 
government agencies ran this way, perhaps even those on the other side 
of the aisle would be more favorably disposed to Federal programs.

                              {time}  1300

  Today's bill not only reauthorizes OPIC but improves both its 
strategy and oversight to make it the most responsible investor it can 
be.
  With this bill, the new and improved OPIC will work in countries and 
with companies, private sector companies, in a manner which provides 
greater protection for international worker rights.
  The new and improved OPIC will take additional steps to guarantee 
that its projects do not damage the environment and, in fact, move 
toward a greener economy.
  The new and improved OPIC will be as transparent as possible and more 
transparent than any Federal agency I am aware of.
  I want to especially focus on section 10 of the bill because it 
contains a provision that is unique as to bills that have come to this 
floor, but which is being talked about in a wide variety of our other 
bills, designed to focus on using the economic power of the United 
States to deal with terrorist countries, particularly those who are 
committing genocide, such as Sudan, or developing nuclear weapons, such 
as Iran and North Korea.
  If this bill is enacted, this provision would be the only statute 
requiring a screen for companies doing business with a U.S. government 
agency that requires the private sector companies to certify that 
neither they nor any entity, as part of their affiliated group of 
corporations, is engaging in an enterprise which is helping terrorist 
states as defined in the bill.
  Now, one of the toughest issues for anyone trying to use the economic 
power of the United States to achieve our foreign policy objectives 
must ask is, what types of investments are we trying to discourage? The 
broader the definition of what we're trying to discourage, the less 
focused the pressure that we put on private sector entities.
  In this bill, and this is a bill that I hope will form a template for 
the divestiture movement in the United States, for procurement laws 
that come before this Congress, et cetera, we focus rather narrowly the 
economic pressure of the United States. We tell these multinational 
corporations that we're not going to bar you from dealing with OPIC if 
you sell a candy bar to a private store in Tehran or you sell paper 
clips to a stationery store in Khartoum.

[[Page H8209]]

  Rather, you must certify that your corporation and all its affiliates 
have abstained from two very important actions: first, that you have 
made no loan to the terrorist government; and, second, that you are not 
investing significant assets in the oil and energy sector of a 
terrorist State, particularly no more than $20 million.
  This builds on what used to be called the Iran-Libya Sanctions Act, 
now the Iran Sanctions Act, which draws the line and finds the pressure 
point for both Iran and Sudan, and probably Syria as well, in stating 
that our goal is to prevent investments of more than $20 million in the 
terrorist states' oil sector.
  Also, OPIC would not be able to approve an application if the 
applicant company has an outstanding loan or extension of credit to one 
of the state sponsors of terrorist governments. Sales of goods other 
than food and medicine on anything other than a cash basis would 
constitute U.N. extension of credit for these purposes.
  Now, section 10 of the bill would apply these prohibitions, as I've 
pointed out, to foreign subsidiaries of the applicant. In order to 
benefit from partnering with OPIC, the entire group of affiliated 
corporations would have to make the certification.
  Section 10 of the bill would require the CEOs of any applicant and 
the CEO of the applicant's ultimate parent corporation to certify that 
none of the affiliated groups have engaged in the prohibited 
activities.
  Section 10 is also narrowly targeted with regard to the geography of 
the Sudan in that it does not prohibit activities in those regions of 
Sudan not under the power of the Khartoum government.
  For 35 years, OPIC has funded and ensured the type of infrastructure-
building that no one else would do in some countries where no private 
corporation would otherwise go. OPIC has paved the way for roads and 
bridges, buildings and energy facilities in countries marked by 
conflict and war.
  For these reasons, we should reauthorize OPIC.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PENCE. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. PENCE asked and was given permission to revise and extend his 
remarks.)
  Mr. PENCE. Mr. Speaker, at the outset I'd like to express my 
admiration to our distinguished chairman; our ranking member, Ms. Ros-
Lehtinen, as well as Mr. Sherman, for crafting this important 
legislation and for bringing it to the careful thought and 
consideration that colleagues and those looking on today would see 
easily in evidence in the gentleman from California's remarks, and I am 
grateful for his leadership.
  Mr. Speaker, we all understand that from time to time the Overseas 
Private Investment Corporation has been the subject of controversy. On 
the other hand, it is accurate to say that it is significant that every 
President since 1971 has believed that OPIC is an important tool for 
advancing international development in U.S. foreign policy by 
stimulating private capital investment.
  In recent years, OPIC appears to have better focused its resources 
and efforts, bringing economic development to underserved markets in 
Central America, Africa, Afghanistan, and now in Iraq.
  OPIC has also reached out to U.S. small businesses and minority- and 
women-owned enterprises. For example, more than 80 percent of all OPIC 
projects approved in fiscal year 2006 involved U.S. small- and medium-
sized enterprises.
  OPIC has also sought to enhance transparency and fight corruption, 
thereby leveling the playing field for U.S. businesses as they compete 
in international markets.
  It's also worth noting that OPIC is embarking on new efforts to 
encourage investments that reduce greenhouse gas emissions and promote 
the use of clean energy; and by charging market-based fees for its 
products, OPIC continues to operate as a self-sustaining agency, which 
I applaud, effectively operating at no net cost to taxpayers and 
returning net income every year of operation, with reserves now 
totaling more than $5 billion.
  On balance, then, despite controversy, I believe OPIC continues to 
serve foreign policy interests of the United States, and I urge support 
of this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHERMAN. Mr. Speaker, I have no requests for time. Let me yield 
myself just a couple of minutes and reemphasize, this is an agency that 
has conducted its activities at no cost to the Federal Treasury and, in 
fact, made a profit. It is appropriate that we reauthorize OPIC.
  Second, this bill is, I believe, the first to come before this House 
which defines what precisely it is that we want international 
corporations to stop doing, and that is, investing in the oil sector of 
terrorist states, and, second, making loans to terrorist states. That 
is why I think that this bill may be an important template for other 
legislation, and I hope it will become a guide for what we expect of 
companies in procurement legislation, Ex-Im Bank, et cetera.
  Mr. MANZULLO. Mr. Speaker, it's a privilege and honor for me to be 
closely associated again with the effort to reauthorize the Overseas 
Private Investment Corporation. Along with now Senator Bob Menendez, 
former OPIC President George Munoz, and me--the 3Ms--we were able to 
rescue OPIC from oblivion with a resounding vote of confidence of 357 
to 71 to reauthorize OPIC in 1999. OPIC represents the best of both 
worlds--the agency doesn't cost the U.S. taxpayer any money and it 
creates jobs and aids in economic development both here and abroad as 
evidenced by the Congressional findings section in this bill.
  I also want to commend Mr. Sherman for working with the minority in a 
bipartisan way in order to produce a bill that can receive overwhelming 
support. The bill before us today wouldn't be the one I would have 
written from scratch. However, I am pleased that as the bill has moved 
through the legislation process, the majority has been sensitive to the 
concern as to the practical effects of certain provisions in order to 
insure that OPIC can remain open for business in various markets. I 
also appreciate the willingness of the majority to continue to keep the 
lines of communication open.
  I also want to commend Mr. Sherman for including my suggestion in 
Section 17 to make sure that OPIC will always continue to have 
sufficient staff and resources to support small businesses. I also want 
to thank the majority for their willingness to add in report language a 
statement that the climate change initiative in Section 8 should not 
take away from other environmental remediation efforts by OPIC.


 =========================== NOTE =========================== 

  
  July 23, 2007 On Page H8209 the following appeared: I also want 
to commend Mr. Syman for
  
  The online version should be corrected to read: I also want to 
commend Mr. Sherman for


 ========================= END NOTE ========================= 

  However, I would be remiss in my duties if I didn't raise a couple of 
concerns that I hope will get addressed through the rest of the 
legislative process. First, I believe that the language dealing with 
enhanced worker rights in Section 5 will have the counterproductive 
effect of taking OPIC out of some of the most challenging markets in 
the world where we have a significant foreign policy interest to see 
success such as Afghanistan. In my opinion, it would be much better to 
strengthen OPIC's oversight workforce to make sure that companies live 
up to the agreements they sign rather than remove OPIC totally from 
nations that are not making ``significant progress'' towards worker 
rights. You can't positively influence a nation in this sensitive area 
of internal domestic policy if you disengage from the country. A good 
example is better than speaking a thousands words.
  Second, as evidenced by the difficulty to clarify the direction and 
intent of the language in Section 10, it's hard to narrowly target 
unilateral sanctions without it either harming other U.S. national 
interests or the people we are supposedly trying to help. This section 
could cause big problems down the line, particularly as more and more 
deals at OPIC are also co-financed or co-insured with foreign 
investment insurance agencies. This will only lead to the designing out 
American goods and services from a particular deal and will not produce 
the desired results.
  Mr. Speaker, I commend the majority for their willingness to work 
together on this bill and I look forward to supporting final passage 
and eventually seeing an OPIC reauthorization bill signed into law by 
the President.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in strong support 
of H.R. 2798, the Overseas Private Investment Corporation Act of 2007. 
I would like to thank my colleague Mr. Sherman for introducing this 
important bipartisan legislation.
  The Overseas Private Investment Corporation (OPIC) has led by example 
in improving the social and economic conditions in some of the world's 
poorest countries. Today's bill not only reauthorizes OPIC but it 
improves upon both its strategy and oversight to make it the most 
responsible investor it can be.
  OPIC has, since its inception in 1971, applied a private-sector model 
to a number of

[[Page H8210]]

important public-sector goals. By supporting targeted investments in a 
number of the world's poorest countries, OPIC extends the benefits of 
American projects to areas where a high level of risk might preclude 
investment by private companies. In this way, OPIC fills an important 
void left by the private financial sector. OPIC is essential and vital 
to the development of many countries, providing political risk 
insurance against the risks of inconvertibility, political violence, 
and expropriation allowing business to invest overseas and promote 
economic development in new and emerging markets.
  For the past 35 years, OPIC has funded and insured the type of 
infrastructure building that no private company would do in some of the 
countries in which no company would otherwise go. OPIC has paved the 
way for roads, bridges, buildings, and energy facilities in war-torn 
and impoverished developing nations, and has accomplished all this 
while turning a profit and building billions in reserves.

  Remarkably, OPIC has itself turned a profit in every single year of 
its operations. It currently has reserves of over $5.3 billion, despite 
working in many of the world's least developed nations.
  OPIC's sophisticated system involves reviewing applications and 
funding projects in countries where companies are least likely to get 
insurance coverage for the risk they are taking. In addition OPIC also 
provides financing through direct loans and loan guaranties.
  With H.R. 2798, OPIC will become a new and improved agency. We live 
in a world that requires all of us to work together to fight terrorism, 
hunger and poverty, and for fundamental freedom and rights of every 
individual. This bill will allow OPIC to work in countries and with 
companies that provide greater protection for international workers 
rights.
  This legislation has a number of vital safeguards, preventing funds 
from being used for destructive purposes. It strictly prevents funding 
for any project that damages the environment, and it ensures that it is 
not funding projects in nations with the most dangerous regimes in the 
world, including Iran. This bill prohibits investment in any state 
sponsor of terrorism, and charges OPIC with researching the 
subsidiaries of every company it funds to enforce that prohibition. 
Under the provisions of this bill, OPIC will be as transparent as 
possible.
  I was happy to work with Congressman Sherman to include language in 
the Committee Report to ensure that Iraq is not given a blank check. 
Given the violent and chaotic situation in Iraq, and due to 
difficulties in dealing with an unstable Iraqi government, it is 
necessary to waive certain requirements normally mandatory for OPIC 
involvement in a country. While I believe that OPIC investment has the 
potential to be extremely valuable and beneficial for Iraqi 
reconstruction, I also believe it to be necessary for Iraq to 
demonstrate that it is making definitive and substantial steps toward 
the benchmarks set by the United States, including achieving political 
and national reconciliation.
  For 35 years, OPIC has funded and insured infrastructure-building 
activities that would not otherwise be undertaken by the private 
sector. This legislation ensures that OPIC can continue its valuable 
work, building on its legacy of constructive involvement and further 
refining its strategies and oversight. I believe that OPIC deserves our 
support, and I strongly support this legislation.
  Mr. ROYCE. Mr. Speaker, I want to recognize Subcommittee Chairman 
Sherman for his work on this legislation. He worked this bill 
thoroughly, and while we disagree on OPIC's merits, he supported my 
text to reform its investment funds.
  OPIC's investment funds, as some may remember, have a troubled 
history. In the 1990s, then-OPIC president Ruth Harkin said, ``If 
you're an investor in an OPIC-supported fund, the worst you can do is 
get your money back at the need of 10 years.'' That's not the free 
market OPIC professes to support and not surprisingly, these funds were 
subject to political cronyism.
  There have been reforms to the funds of late, including competitively 
selecting fund managers, but we should mandate them. My language does 
this.
  Fundamentally though, I remain unconvinced that OPIC is doing 
something worthwhile that the private sector wouldn't do. The burden of 
proof should be on OPIC, especially in times of accelerating change in 
financial markets. Several companies have jumped into the political 
risk insurance business, for example, offering increasingly 
sophisticated products, . . . so why are we reauthorizing government-
backed OPIC to continue competing against them?
  We have heard much on the floor trumpeting OPIC's supposed benefits. 
However, most economists believe that subsidizing investment--which is 
what OPIC does--merely shifts it around, often to lesser productive 
locations and uses. The Congressional Research Service has reported, 
``From the point of view of the U.S. economy as a whole, there is 
little theoretical support or empirical evidence that supports claims 
that subsidizing exports or overseas investment offers a positive net 
gain in jobs to the U.S. economy.'' That's persuasive evidence against 
OPIC's claims, and its case for reauthorization.
  OPIC makes much of the fact that it returns money to the U.S. 
Treasury. OK. But let's consider that this money is held against 
potential liabilities stemming from OPIC's activities. And give most 
anybody U.S. government-backing to trade on, and they'd turn a profit 
in financial markets.
  One OPIC critic gave a useful description. Investment is like a rope. 
Less developed countries can only pull it in with good policies; 
efforts to push in investment, which is OPIC's mandate, are bound to be 
inefficient.
  Mr. Speaker, these are some of the reasons I oppose this legislation 
reauthorizing OPIC.
  Mr. DINGELL. Mr. Speaker, I rise in support of H.R. 2798, the 
``Overseas Private Investment Corporation Reauthorization Act of 
2007''. Since its establishment in 1971, OPIC has offered investment 
financing and political risk insurance to American businesses and 
lenders, which are willing to direct private capital to developing 
countries.
  While OPIC has proven to be a valuable tool for U.S. foreign and 
commercial policy, it is in need of some improvement. I am pleased that 
H.R. 2798 establishes requirements that projects be approved only in 
countries that are making progress toward adopting international labor 
and environmental standards. H.R. 2798 also embraces the necessity of 
promoting peace and stability in the international system by 
prohibiting OPIC from participating in projects in countries that are 
sponsors of terrorism, possess or have programs to develop nuclear 
weapons, or commit genocide.
  I would object, however, to one provision in this bill. H.R. 2798 
requires OPIC to implement a climate change mitigation action plan, 
which would include increased support for projects that use and develop 
clean energy technologies. The bill further stipulates that OPIC submit 
a report on this plan, as well as annual environmental impact 
assessments of the projects that it supports, to the House Committee on 
Foreign Affairs and Senate Committee on Foreign Relations. I 
respectfully suggest that these reports also be submitted to the House 
Committee on Energy and Commerce, not only because of the committee's 
jurisdiction and expertise in policy matters related to energy and 
foreign commerce, but also because this would augment Congressional 
oversight of OPIC in order to ensure that its plans for environmentally 
responsible development receive careful and thorough consideration. It 
is my sincere hope that the Committee on Foreign Affairs will work with 
the Committee on Energy and Commerce to address this concern when H.R. 
2798 is considered again during conference.
  I would urge that the House approve H.R. 2798 and thank my colleagues 
on the Committee on Foreign Affairs for their work on this bill.
  Mr. SHERMAN. Mr. Speaker, I yield back the balance of my time, and I 
move that we adopt the bill.
  Mr. PENCE. Mr. Speaker, I urge adoption of the bill as well, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Sherman) that the House suspend the 
rules and pass the bill, H.R. 2798, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________