[Congressional Record Volume 155, Number 18 (Thursday, January 29, 2009)]
[Senate]
[Pages S1061-S1063]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR (for himself, Mr. Kerry, Mr. Brownback, Mr. Leahy, 
        and Mr. Kaufman):
  S. 345 A bill to reauthorize the Tropical Forest Conservation Act of 
1998 through fiscal year 2012, to rename the Tropical Forest 
Conservation Act of 1998 as the ``Tropical Forest and Coral 
Conservation Act of 2009'', and for other purposes; to the Committee on 
Foreign Relations.
  Mr. LUGAR. Mr. President, I rise to introduce the Tropical Forest and 
Coral Conservation Act of 2009, a bill to protect outstanding tropical 
forests and coral reefs in developing countries through Debt for Nature 
Swaps that then-Senator Biden and myself first passed more than ten 
years ago.
  This bill reauthorizes a proven program which enjoys the ardent 
support of the Treasury Department and State Department for the third 
time since 1998. It will help developing countries reduce foreign debt 
and provide comprehensive environmental preservation programs to 
protect tropical forests and endangered marine habitats around the 
world. This bill will also serve as an important diplomatic tool to 
provide for our national security.
  As one of the most successful U.S. conservation assistance programs, 
the agreements concluded under the Tropical Forest Conservation Act so 
far will together generate over $188 million to help conserve over 50 
million acres of tropical forests in Asia, the Caribbean, Central and 
South America. In addition, private donors, including the Nature 
Conservancy, the World Wildlife Fund, the Wildlife Conservation 
Society, and Conservation International, have contributed more than $12 
million to TFCA swaps, leveraging U.S. Government funds. This is an 
effective use of scarce Federal conservation dollars. But the rate of 
deforestation continues to accelerate across the globe.
  This bill is an example of how we can use economic incentives and 
opportunities to change behavior and to influence personal and societal 
choices. Clearly, there are economic opportunities in clean energy 
sources, solar, wind and biofuels, and carbon sequestration and storage 
technologies. But improvements in farming and forestry practices may be 
among the lowest hanging fruit in the quest to deal with climate 
change.
  During the global climate change discussions in the late 1990s in 
Kyoto, the concept of carbon sinks provided by forestry and agriculture 
was taken off the table. Last year during the Bali discussions, the 
topic of carbon sequestration through forestry and agricultural 
practices was revived. This is an important development, and it should 
be embraced by the United States.
  Also alarming is the rapid rate of coral reef and coastal 
exploitation. The burden of foreign debt falls especially hard on 
nations with few natural resources that often resort to harvesting or 
otherwise exploiting coral reefs and other marine habitats to earn hard 
currency to service foreign debt. According to the National Oceanic and 
Atmospheric Administration, NOAA, 61 percent of the world's coral reefs 
may be destroyed by the year 2050 if the present rate of destruction 
continues.
  The Tropical Forest and Coral Conservation Act expands the current 
tropical forest conservation programs to include the protection and 
conservation of these vital coral ecosystems. This legislation will 
make available resources for environmental stewardship that would 
otherwise be of the lowest priority in a developing country. It will 
reduce debt by investing locally in programs that will strengthen 
indigenous economies by creating long-term management policies that 
will preserve the natural resources upon which local commerce is based.
  Both Indonesia and Brazil have been declared eligible for Tropical 
Forest Conservation Act funds. Brazil is the second most populous 
nation in our hemisphere. It wields enormous influence over neighboring 
states in South America and has expressed interest in a leading global 
role. It would be a diplomatic mistake to hinder our outreach to a 
nation on an issue--conservation--where we have mutual goals. 
Similarly, we should not encumber conservation cooperation with one the 
largest democracies in the world, Indonesia. The United States cannot 
afford to squander diplomatic opportunities that allow us to establish 
working relationships with key agencies in such strategically important 
nations.
  This legislation has enormous consequences for the existence of 
critical ecosystems, the health of our planet, the livelihoods of 
millions of people across the globe, and even the security of Americans 
here at home.
  I would like to provide additional information about activities under 
this act.
  Fourteen TFCA agreements have been concluded to date in Bangladesh, 
El Salvador, Belize, Peru, the Philippines, Panama, Guatemala, 
Colombia, Paraguay, Botswana, Costa Rica, and Jamaica. With the 
reauthorization of TFCA, the U.S. Government will be able to pursue 
agreements to conserve threatened coral reefs along with tropical 
forests.
  The Tropical Forest and Coral Reef Conservation Act of 2009 
authorizes appropriations for debt reduction for eligible countries at 
$25,000,000 in fiscal year 2009; $30,000,000 in fiscal year 2010; 
$30,000,000 in fiscal year 2011; and $30,000,000 in fiscal year 2012 
subject to appropriations.
  First, the bill authorizes a Debt Swap option under which a third 
party may purchase the debt of a TFCA-eligible country in exchange for 
the creation of a fund to support tropical forest or coral reef 
conservation. The terms of the agreement are negotiated with the 
country, the third party and the U.S. Government.
  Under this option, there may be no cost to the United States 
Government

[[Page S1062]]

because the financial assistance involved would come from 
nongovernmental or private entities. Third-party funding may be 
leveraged, in part, with U.S. Government appropriated funds.
  Second, the bill authorizes a debt reduction option in which 
principal and interest payments due to the U.S. Government may be 
wholly or partially reduced. In return, the country accepts a new 
obligation to make payments to a conservation fund to be administered 
by a tropical forest or coral reef board within that country.
  The bill authorizes appropriations to compensate the United States 
Treasury for the reduction in the revenues caused by TFCA debt 
treatment. However, these funds would be effectively leveraged because 
the amounts placed by an eligible country in its conservation fund 
would exceed the cost of debt reduction to the United States Treasury.
  Third, under the Buy Back option, an eligible country is able to buy 
back its debt at its asset value in exchange for its willingness to 
place an additional amount based on the purchase price in local 
currency in a tropical forest fund.
  Under this third option, there would be no cost to the United States 
Government since the debt is being bought back at its value as 
determined under the Federal Credit Reform Act of 1990.
  The Tropical Forest Conservation and Coral Act applies to 
concessional loans made under the Foreign Assistance Act of 1961 and 
credits granted under the Agricultural Trade and Assistance Act of 
1954. It is consistent with established Treasury Department debt 
reduction practices as well as with the Federal Credit Reform Act of 
1990.
  Within each developing country, the conservation fund would be 
administered by a commission representing a majority of local 
nongovernmental, community development and scientific and academic 
organizations, representatives of the host government and a 
representative of the United States Government.
  The conservation fund could be used to provide grants for the 
following purposes: to preserve, maintain or restore the tropical 
forest or coral reef of the beneficiary country through establishing 
parks and reserves; to develop and implement scientifically sound 
systems of natural resource management; to provide training programs to 
strengthen the scientific, technical and managerial capacities of 
individuals and organizations involved in conservation; to provide for 
restoration, protection and sustainable use of diverse animal and plant 
species; to provide research and identification of medicinal uses of 
tropical forest plant life to treat human diseases, illnesses, and 
health-related concerns; to develop and support individuals living in 
or near a tropical forest or coral reef, including the cultures of such 
individuals.
  Oversight of this program would continue through multiple mechanisms 
including the following: funds for this program are subject to periodic 
formal evaluations and annual fund evaluations recently required as 
part of OMB's Program Assessment Rating Tool, PART. TFCA Evaluation 
Scorecard is completed each year on each TFCA Fund. The Evaluation 
Scorecard was developed to provide for consistent, on-going evaluation 
and reporting across local TFCA programs.
  Local TFCA funds are subject to regular audits. In addition, the 
local board or oversight committee monitors performance under each 
grant agreement to make sure that time schedules and other performance 
goals are being achieved. Grant agreements include budgets, timelines, 
and provisions requiring periodic progress reports from the grantee to 
the board.
  In addition, the U.S. Government uses the annual management budget 
provided by Congress to fund evaluations of local TFCA programs. 
Evaluations undertaken with these funds include local site visits to 
determine that activities are being carried out consistent with the 
terms of the TFCA agreement.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 345

       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 ``Tropical Forest and Coral 
     Conservation Reauthorization Act of 2009''.

     SEC. 2. AMENDMENT TO SHORT TITLE OF ACT TO ENCOMPASS EXPANDED 
                   SCOPE.

       (a) In General.--Section 801 of the Tropical Forest 
     Conservation Act of 1998 (Public Law 87-195; 22 U.S.C. 2151 
     note) is amended by striking ``Tropical Forest Conservation 
     Act of 1998'' and inserting ``Tropical Forest and Coral 
     Conservation Act of 2009''.
       (b) References.--Any reference in any other provision of 
     law, regulation, document, paper, or other record of the 
     United States to the ``Tropical Forest Conservation Act of 
     1998'' shall be deemed to be a reference to the ``Tropical 
     Forest and Coral Conservation Act of 2009''.

     SEC. 3. EXPANSION OF SCOPE OF ACT TO PROTECT FORESTS AND 
                   CORAL REEFS.

       (a) In General.--Section 802 of the Tropical Forest and 
     Coral Conservation Act of 2009 (22 U.S.C. 2431), as renamed 
     by section 2(a), is amended--
       (1) in subsections (a)(1), (a)(6), (a)(7), (b)(1), (b)(3), 
     and (b)(4), by striking ``tropical forests'' each place it 
     appears and inserting ``tropical forests and coral reefs and 
     associated coastal marine ecosystems'';
       (2) in subsection (a)(2)--
       (A) in subparagraph (A), by striking ``resources, which are 
     the basis for developing pharmaceutical products and 
     revitalizing agricultural crops'' and inserting 
     ``resources''; and
       (B) in subparagraph (C), by striking ``far-flung''; and
       (3) in subsection (b)(2)--
       (A) by striking ``tropical forests'' the first place it 
     appears and inserting ``tropical forests and coral reefs and 
     associated coastal marine ecosystems'';
       (B) by striking ``tropical forests'' the second place it 
     appears and inserting ``areas'';
       (C) by striking ``tropical forests'' the third place it 
     appears and inserting ``tropical forests and coral reefs and 
     their associated coastal marine ecosystems''; and
       (D) by striking ``that have led to deforestation'' and 
     inserting ``on such countries''.
       (b) Amendments Related to Definitions.--Section 803 of such 
     Act (22 U.S.C. 2431a) is amended--
       (1) in paragraph (5)--
       (A) in the heading, by striking ``tropical forest'' and 
     inserting ``tropical forest or coral reef'';
       (B) in the matter preceding subparagraph (A), by striking 
     ``tropical forest'' and inserting ``tropical forest or coral 
     reef''; and
       (C) in subparagraph (B)--
       (i) by striking ``tropical forest'' and inserting 
     ``tropical forest or coral reef''; and
       (ii) by striking ``tropical forests'' and inserting 
     ``tropical forests or coral reefs''
       (2) by adding at the end the following new paragraphs:
       ``(10) Coral.--The term `coral' means species of the phylum 
     Cnidaria, including--
       ``(A) all species of the orders Antipatharia (black 
     corals), Scleractinia (stony corals), Alcyonacea (soft 
     corals), Gorgonacea (horny corals), Stolonifera (organpipe 
     corals and others), and Coenothecalia (blue coral), of the 
     class Anthoza; and
       ``(B) all species of the order Hydrocorallina (fire corals 
     and hydrocorals) of the class Hydrozoa.
       ``(11) Coral reef.--The term `coral reef' means any reef or 
     shoal composed primarily of coral.
       ``(12) Associated coastal marine ecosystem.--The term 
     `associated coastal marine ecosystem' means any coastal 
     marine ecosystem surrounding, or directly related to, a coral 
     reef and important to maintaining the ecological integrity of 
     that coral reef, such as seagrasses, mangroves, sandy seabed 
     communities, and immediately adjacent coastal areas.''.

     SEC. 4. CHANGE TO NAME OF FACILITY.

       (a) In General.--Section 804 of the Tropical Forest and 
     Coral Conservation Act of 2009 (22 U.S.C. 2431b), as renamed 
     by section 2(a), is amended by striking ``Tropical Forest 
     Facility'' and inserting ``Conservation Facility''.
       (b) Conforming Amendments to Definitions.--Section 803(8) 
     of such Act (22 U.S.C. 2431a(8)) is amended--
       (1) in the heading, by striking ``Tropical forest 
     facility'' and inserting ``Conservation facility''; and
       (2) by striking ``Tropical Forest Facility'' both places it 
     appears and inserting ``Conservation Facility''.
       (c) References.--Any reference in any other provision of 
     law, regulation, document, paper, or other record of the 
     United States to the ``Tropical Forest Facility'' shall be 
     deemed to be a reference to the ``Conservation Facility''.

     SEC. 5. ELIGIBILITY FOR BENEFITS.

       Section 805(a) of the Tropical Forest and Coral 
     Conservation Act of 2009 (22 U.S.C. 2431c(a)), as renamed by 
     section 2(a), is amended by striking ``tropical forest'' and 
     inserting ``tropical forest or coral reef''.

     SEC. 6. UNITED STATES GOVERNMENT REPRESENTATION ON OVERSIGHT 
                   BODIES FOR GRANTS FROM DEBT-FOR-NATURE SWAPS 
                   AND DEBT-BUYBACKS.

       Section 808(a)(5) of the Tropical Forest and Coral 
     Conservation Act of 2009 (22 U.S.C. 2431f(a)(5)), as renamed 
     by section 2(a), is amended by adding at the end the 
     following new subparagraph:
       ``(C) United states government representation on the 
     administering body.--

[[Page S1063]]

     One or more individuals appointed by the United States 
     Government may serve in an official capacity on the 
     administering body that oversees the implementation of grants 
     arising from a debt-for-nature swap or debt buy-back 
     regardless of whether the United States is a party to any 
     agreement between the eligible purchaser and the government 
     of the beneficiary country.''.

     SEC. 7. CONSERVATION AGREEMENTS.

       (a) Renaming of Agreements.--Section 809 of the Tropical 
     Forest and Coral Conservation Act of 2009 (22 U.S.C. 2431g), 
     as renamed by section 2(a), is amended--
       (1) in the section heading, by striking ``TROPICAL FOREST 
     AGREEMENT'' and inserting ``CONSERVATION AGREEMENT''; and
       (2) in subsection (a)--
       (A) by striking ``Authority'' and all that follows through 
     ``(1) In general.--The Secretary'' and inserting 
     ``Authority.--The Secretary''; and
       (B) by striking ``Tropical Forest Agreement'' and inserting 
     ``Conservation Agreement''.
       (b) Elimination of Requirement To Consult With the 
     Enterprise for the Americas Board.--Such subsection is 
     further amended by striking paragraph (2).
       (c) Role of Beneficiary Countries.--Such section is further 
     amended--
       (1) in subsection (e)(1)(C), by striking ``in exceptional 
     circumstances, the government of the beneficiary country'' 
     and inserting ``in limited circumstances, the government of 
     the beneficiary country when needed to improve governance and 
     enhance management of tropical forests or coral reefs or 
     associated coastal marine ecosystems, without replacing 
     existing levels of financial efforts by the government of the 
     beneficiary country and with priority given to projects that 
     complement grants made under subparagraphs (A) and (B)''; and
       (2) by amending subsection (f) to read as follows:
       ``(f) Review of Larger Grants.--Any grant of more than 
     $250,000 from a Fund must be approved by the Government of 
     the United States and the government of the beneficiary 
     country.''.
       (d) Technical and Conforming Amendments.--Such section is 
     further amended--
       (1) in subsection (c)(2)(A)(i), by inserting ``to serve in 
     an official capacity'' after ``Government'';
       (2) in subsection (d)--
       (A) in the matter preceding paragraph (1), by striking 
     ``tropical forests'' and inserting ``tropical forests and 
     coral reefs and associated coastal marine ecosystems related 
     to such coral reefs'';
       (B) in paragraph (5), by striking ``tropical forest''; and
       (C) in paragraph (6), by striking ``living in or near a 
     tropical forest in a manner consistent with protecting such 
     tropical forest'' and inserting ``dependent on a tropical 
     forest or coral reef or an associated coastal marine 
     ecosystem related to such coral reef and related resources in 
     a manner consistent with conserving such resources''.
       (e) Conforming Amendments to Definitions.--Section 803(7) 
     of such Act (22 U.S.C. 2431a(7)) is amended--
       (1) in the heading, by striking ``Tropical forest 
     agreement'' and inserting ``Conservation agreement''; and
       (2) by striking ``Tropical Forest Agreement'' both places 
     it appears and inserting ``Conservation Agreement''.

     SEC. 8. CONSERVATION FUND.

       (a) In General.--Section 810 of the Tropical Forest and 
     Coral Conservation Act of 2009 (22 U.S.C. 2431h), as renamed 
     by section 2(a), is amended--
       (1) in the section heading, by striking ``TROPICAL FOREST 
     FUND'' and inserting ``CONSERVATION FUND''; and
       (2) in subsection (a)--
       (A) by striking ``Tropical Forest Agreement'' and inserting 
     ``Conservation Agreement''; and
       (B) by striking ``Tropical Forest Fund'' and inserting 
     ``Conservation Fund''.
       (b) Conforming Amendments to Definitions.--Such Act is 
     further amended--
       (1) in section 803(9) (22 U.S.C. 2431a(9))--
       (A) in the heading, by striking ``Tropical forest fund'' 
     and inserting ``Conservation fund''; and
       (B) by striking ``Tropical Forest Fund'' both places it 
     appears and inserting ``Conservation Fund'';
       (2) in section 806(c)(2) (22 U.S.C. 2431d(c)(2)), by 
     striking ``Tropical Forest Fund'' and inserting 
     ``Conservation Fund''; and
       (3) in section 807(c)(2) (22 U.S.C. 2431e(c)(2)), by 
     striking ``Tropical Forest Fund'' and inserting 
     ``Conservation Fund''.

     SEC. 9. REPEAL OF AUTHORITY OF THE ENTERPRISE FOR THE 
                   AMERICAS BOARD TO CARRY OUT ACTIVITIES UNDER 
                   THE TROPICAL FOREST AND CORAL CONSERVATION ACT 
                   OF 2009.

       (a) In General.--Section 811 of the Tropical Forest and 
     Coral Conservation Act of 2009 (22 U.S.C. 2431i), as renamed 
     by section 2(a), is repealed.
       (b) Conforming Amendments.--Section 803 of such Act (22 
     U.S.C. 2431a), as renamed by section 2(a), is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5), (6), (7), (8), and (9) 
     as paragraphs (4), (5), (6), (7), and (8), respectively.

     SEC. 10. CHANGES TO DUE DATES OF ANNUAL REPORTS TO CONGRESS.

       Section 813 of the Tropical Forest and Coral Conservation 
     Act of 2009 (22 U.S.C. 2431k), as renamed by section 2(a), is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``(a) In General.--Not later than December 
     31'' and inserting ``Not later than April 15'';
       (B) by striking ``Facility'' both places it appears and 
     inserting ``Conservation Facility''; and
       (C) by striking ``fiscal year'' both places it appears and 
     inserting ``calendar year''; and
       (2) by striking subsection (b).

     SEC. 11. CHANGES TO INTERNATIONAL MONETARY FUND CRITERION FOR 
                   COUNTRY ELIGIBILITY.

       Section 703(a)(5) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2430b(a)(5)) is amended--
       (1) by striking ``or, as appropriate in exceptional 
     circumstances,'' and inserting ``or'';
       (2) in subparagraph (A)--
       (A) by striking ``or in exceptional circumstances, a Fund 
     monitored program or its equivalent,'' and inserting ``or a 
     Fund monitored program, or is implementing sound 
     macroeconomic policies,''; and
       (B) by striking ``(after consultation with the Enterprise 
     for the Americas Board)''; and
       (3) in subparagraph (B), by striking ``(after consultation 
     with the Enterprise for Americas Board)''.

     SEC. 12. NEW AUTHORIZATION OF APPROPRIATIONS FOR THE 
                   REDUCTION OF DEBT AND AUTHORIZATION FOR AUDIT, 
                   EVALUATION, MONITORING, AND ADMINISTRATION 
                   EXPENSES.

       Section 806 of the Tropical Forest and Coral Conservation 
     Act of 2009 (22 U.S.C. 2431d), as renamed by section 2(a), is 
     amended--
       (1) in subsection (d), by adding at the end the following 
     new paragraphs:
       ``(7) $25,000,000 for fiscal year 2009.
       ``(8) $30,000,000 for fiscal year 2010.
       ``(9) $30,000,000 for fiscal year 2011.
       ``(10) $30,000,000 for fiscal year 2012.''; and
       (2) by amending subsection (e) to read as follows:
       ``(e) Use of Funds To Conduct Program Audits, Evaluations, 
     Monitoring, and Administration.--Of the amounts made 
     available to carry out this part for a fiscal year, $300,000 
     is authorized to be made available to carry out audits, 
     evaluations, monitoring, and administration of programs under 
     this part, including personnel costs associated with such 
     audits, evaluations, monitoring and administration.''.
                                 ______