[Congressional Record Volume 165, Number 51 (Monday, March 25, 2019)]
[House]
[Pages H2771-H2773]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EUROPEAN ENERGY SECURITY AND DIVERSIFICATION ACT OF 2019
Mr. SIRES. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 1616) to prioritize the efforts of and enhance coordination among
United States agencies to encourage countries in Central and Eastern
Europe to diversify their energy sources and supply routes, increase
Europe's energy security, and help the United States reach its global
energy security goals, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1616
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 ``European Energy Security and
Diversification Act of 2019''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Early-stage project support.--The term ``early-stage
project support'' includes the following:
(A) Feasibility studies.
(B) Resource evaluations.
(C) Project appraisal and costing.
(D) Pilot projects.
(E) Commercial support, such as trade missions, reverse
trade missions, technical workshops, international buyer
programs, and international partner searchers to link
suppliers to projects.
(F) Technical assistance and other guidance to improve the
local regulatory environment and market frameworks to
encourage transparent competition and enhance energy
security.
(G) Long-term energy sector planning.
(2) Late-stage project support.--The term ``late-stage
project support'' includes support described in section 1421
of the Better Utilization of Investments Leading to
Development Act of 2018 (also referred to as the ``BUILD Act
of 2018''; enacted as division F of the FAA Reauthorization
Act of 2018 (Public Law 115-254)).
(3) International financial institution.--The term
``international financial institution'' has the meaning given
such term in section 1701(c) of the International Financial
Institutions Act (22 U.S.C. 262r(c)).
SEC. 3. SENSE OF CONGRESS; STATEMENT OF POLICY.
(a) Sense of Congress.--It is the sense of Congress that
the United States has economic and national security
interests in assisting European and Eurasian countries
achieve energy security through diversification of their
energy sources and supply routes.
(b) Statement of Policy.--It is the policy of the United
States to--
(1) advance United States foreign policy and development
goals by assisting European and Eurasian countries to reduce
their dependence on energy resources from countries that use
energy dependence for undue political influence, such as the
Russian Federation, which has used natural gas to coerce,
intimidate, and influence other countries;
(2) promote the energy security of European and Eurasian
allies and partners of the United States by encouraging the
development of accessible, transparent, and competitive
energy markets that provide diversified sources, types, and
routes of energy;
(3) encourage United States public and private sector
investment in European and Eurasian energy infrastructure
projects to bridge the gap between energy security
requirements and commercial demand in a way that is
consistent with the region's absorptive capacity;
(4) help facilitate a well-functioning market for energy
resources in a way that benefits the energy security of the
United States and European and Eurasian allies and partners
of the United States; and
(5) help facilitate the export of United States energy
technology and expertise to global markets.
SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR ENERGY
INFRASTRUCTURE PROJECTS IN EUROPE AND EURASIA.
(a) In General.--In pursuing the policy described in
section 3(b), the Secretary of State, in coordination with
the heads of United States agencies that operate under the
foreign policy guidance of the Secretary, shall, as
appropriate, prioritize and expedite the efforts of the
Department of State and such agencies in supporting the
efforts of the European Commission and European and Eurasian
countries to increase the energy security of such countries,
including through--
(1) providing diplomatic and political support to the
European Commission and such countries, as necessary to--
(A) facilitate international negotiations concerning cross-
border infrastructure;
(B) enhance Europe's and Eurasia's regulatory environment
with respect to energy; and
(C) develop accessible, transparent, and competitive energy
markets supplied by diverse sources, types, and routes of
energy; and
(2) providing support to improve European and Eurasian
energy markets, including early-stage project support and
late-stage project support for the construction or
improvement of energy infrastructure, as necessary, to--
(A) diversify the energy sources and supply routes of such
countries;
(B) enhance energy market integration across the region;
and
(C) increase competition within energy markets.
(b) Project Selection.--
(1) In general.--The Secretary of State, in consultation
with the heads of agencies described in subsection (a), shall
identify and, in accordance with paragraph (3), select energy
infrastructure projects that would be appropriate for United
States assistance under this section.
(2) Project eligibility.--A project is eligible for United
States assistance under this section if such project is--
(A) related to--
(i) natural gas infrastructure, such as interconnectors,
storage facilities, liquefied natural gas import facilities,
or reverse flow capacity;
(ii) electricity transmission infrastructure, electricity
storage projects, or smart grid projects;
(iii) renewable energy projects in wind, solar, tidal, or
other forms; or
(iv) the improvement, rehabilitation, or construction of
electricity generation facilities to increase the efficiency
and reliability of electricity production; and
(B) located in a European or Eurasian country.
(3) Preference.--In selecting among projects that are
eligible under paragraph (2), the Secretary of State and the
heads of agencies described in subsection (a) shall give
preference to projects that--
(A) improve the capacity of energy systems to efficiently
transfer gas and electricity within and between European or
Eurasian countries;
(B) have already been identified by the European Commission
as being integral for the energy security of European or
Eurasian countries;
(C) are expected to enhance energy market integration and
transparency;
(D) can attract funding from the private sector, an
international financial institution, the government of the
country in which the project will be carried out, or the
European Commission; or
(E) have the potential to use United States goods and
services.
(c) Types of Assistance.--
(1) Diplomatic and political support.--The Secretary of
State, in coordination with the heads of agencies described
in subsection (a), as appropriate, shall provide diplomatic
and political support to the European Commission and European
or Eurasian countries, as necessary, including by using the
diplomatic and political influence and expertise of the
Department of State to build the capacity of such countries
to resolve any impediments to the development of projects
selected under subsection (b).
(2) Early-stage project support.--The Secretary of State,
in coordination, as appropriate, with the heads of agencies
described in subsection (a), including the Director of the
Trade and Development Agency, shall provide early-stage
project support to projects selected under subsection (b), as
necessary and in accordance with section 661 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2421).
(3) Late-stage project support.--The Secretary of State, in
coordination, as appropriate, with the heads of agencies
described in subsection (a), shall provide late-stage project
support to projects selected under subsection (b), as
necessary and in accordance with section 1412 of the Better
Utilization of Investments Leading to Development Act
(relating to the establishment of the United States
International Development Finance Corporation).
(d) Funding.--
(1) Trade and development agency.--Subparagraph (A) of
section 661(f)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2421(f)(1)) is amended by striking ``$48,000,000 for
fiscal year 2000'' and inserting ``$79,500,000 for fiscal
year 2020''.
(2) Countering russian influence fund.--Section 254 of the
Countering Russian Influence in Europe and Eurasia Act of
2017 (enacted as title II of the Countering America's
Adversaries Through Sanctions Act; Public Law 115-44; 22
U.S.C. 9543) is amended--
(A) in subsection (a), by striking ``fiscal years 2018 and
2019'' and adding ``fiscal years 2020 and 2021''; and
(B) in subsection (b), by adding at the end the following
new paragraph:
``(7) To assist United States agencies that operate under
the foreign policy guidance of the Secretary of State in
providing assistance under section 4 of the European Energy
Security and Diversification Act of 2019.''.
(e) Exception.--No United States assistance under this
section may be provided to a European or Eurasian country
that engages
[[Page H2772]]
in a significant transaction described in subsection (a) of
section 231 of the Countering America's Adversaries Through
Sanctions Act (22 U.S.C. 9525).
SEC. 5. PROGRESS REPORTS.
Not later than one year after the date of the enactment of
this Act and annually thereafter for seven years, the
President shall transmit to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs
of the House of Representatives a report on progress made in
providing assistance for projects under section 4 that
includes the following:
(1) A description of the energy infrastructure projects the
United States has identified for such assistance.
(2) For each such project, the following:
(A) A description of the role of the United States in the
project, including in early-stage project support and late-
stage project support.
(B) The amount and form of any debt financing and insurance
provided by the United States Government for the project.
(C) The amount and form of any early-stage project support.
(D) An update on the progress made on the project as of the
date of the report.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
Jersey (Mr. Sires) and the gentleman from Florida (Mr. Rooney) each
will control 20 minutes.
The Chair recognizes the gentleman from New Jersey.
General Leave
Mr. SIRES. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days in which to revise and extend their remarks and
include extraneous material on H.R. 1616, the European Energy Security
and Diversification Act of 2019, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New Jersey?
There was no objection.
Mr. SIRES. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of the European Energy Security and
Diversification Act of 2019.
I would like to thank my colleagues on the Foreign Affairs Committee,
Mr. Kinzinger and Mr. Keating, for introducing this bipartisan
legislation.
When we look at the full scope of Vladimir Putin's nefarious behavior
throughout the world, we see it take many shapes: insidious attempts to
influence democratic elections, incursions into the sovereign territory
of other nations, and military exercises designed to intimidate its
neighbors.
But this legislation addresses yet another tool in Putin's arsenal:
the manipulation of natural resources.
More and more, we see Russia using energy as a weapon to blackmail
countries depending on Russian energy sources. The European Union and
many of our allies and partners in Europe recognize this threat and
have begun to take steps to reduce their vulnerability to Russian
pressure.
This bill will ramp up American support for Europe's energy security
and reduce dependence on Russia, including financial support for
projects that better connect European energy networks and improve
energy efficiency.
Mr. Speaker, I urge my colleagues to join me in supporting this
legislation, and I reserve the balance of my time.
Mr. ROONEY of Florida. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in strong support of the European Energy Security
and Diversification Act, which the Foreign Affairs Committee adopted
unanimously earlier this month.
This bill, sponsored by Mr. Keating and Mr. Kinzinger, for whom we
are deeply thankful, will help European and Eurasian countries reduce
their reliance on Russian energy by providing diplomatic, political,
technical, and financial support to projects that diversify energy
sources and supply routes, enhance energy market integration across the
region, and increase competition within the energy markets.
Europe imports nearly 40 percent of its natural gas from Russia. Some
EU countries source as much as 100 percent of their gas from Moscow,
which has weaponized its energy dominance in the region to coerce,
intimidate, and influence the political decisions of countries that
depend on it for their energy.
In 2006, 2009, and 2014, Vladimir Putin cut off gas to Ukraine, a
country he has tried to dismember through his illegal annexation of
Crimea and his continued aggression in the East.
Putin is now trying to build a massive new pipeline to Germany, the
Nord Stream 2. This pipeline will increase Russian influence over
Berlin, a key NATO ally and the largest economy in the EU, and also
reduce Russia's reliance on Ukraine as a vital pipeline transit route
to other European markets. This will deprive Ukraine of its critical
transit fees, the proceeds of which are roughly equal to what it spends
on its military.
It is not hard to see that this is a strategic play by Putin to
increase pressure on Ukraine, where he continues to wage a war, and
also get closer to Germany and dominate their energy.
This bill isn't just about helping Europe. This bill advances U.S.
foreign policy and economic interests by strengthening our alliances
with countries in the region and promoting U.S. energy as an
appropriate alternative to the bondage of Russia.
The shale revolution and the repeal of the 1970s-era ban on crude oil
sales in 2015 have unlocked America's abundant oil and natural gas
reserves. These have enabled us to become the world's largest producer
of oil and gas--some 13 million barrels a day now--giving our partners
and allies a reliable alternative to unstable sources of energy.
We also lead the world in cutting-edge clean energy technologies, one
of which, carbon sequester, is very important for the environment as
well. Others are like nuclear and renewables, which this bill promotes.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Mr. SIRES. Mr. Speaker, I yield 5 minutes to the gentleman from
Massachusetts (Mr. Keating).
Mr. KEATING. Mr. Speaker, I thank the gentleman from New Jersey (Mr.
Sires), the chair of the subcommittee dealing with the very important
issue that we are dealing with now in the Western Hemisphere and
Venezuela, and I associate myself with his remarks in that regard.
I thank the gentleman from Florida (Mr. Rooney), who has been a
strong advocate of energy diversification and renewable energy on the
Foreign Affairs Committee, for his support.
Mr. Speaker, I rise in support of H.R. 1616, which is a bill I
introduced with the ranking member, Representative Kinzinger, as well
as a bill I sponsored towards the last days of the last Congress with
Senator Chris Murphy of Connecticut, showing bipartisan and bicameral
support for this effort.
Mr. Speaker, we saw again last weekend with the summary of the
Mueller report coming forward just underscoring, once again, the attack
that was made on our country by Russia. There is no mistaking it now.
There was little mistake, given our intelligence sources at the time.
This is not only a way that Russia is seeking, number one, to attack
the democracies of our country, but also to strategically create a
wedge with the greatest asset we have, something that they certainly do
not have.
{time} 1715
That asset is the coalition we have with our European allies. It is
one of our greatest strengths, and it is unique to this historic
coalition.
One of the ways Russia is continuing to break up this Western
coalition and cause great damage, is not just the attacks like they had
in the U.S. over their election and democracy, but also wielding energy
as a weapon to break up this great coalition we have, hurt democracies
in Europe--particularly Eastern Europe and here--undercutting our
interest in sharing the values that we have with our greatest allies.
This is something in terms of the energy resources we can't take for
granted. We know that this is a time when the U.S. is a great exporter
of energy in this world, and it is something that will benefit our
economy going forward but will also benefit the diversification of
energy in Europe as well, something that will advance their economy,
but something also that will give them great protection against this
Russian threat.
We also know that it is not just the exporting of this energy that is
going to be of value, but this bill also targets renewable energy
development as well, and that is something that brings the European
countries together with the U.S., and also, together, sets us at a
greater stage to compete worldwide.
We can work together exchanging technological advances. We can work
together as we share investments in
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each other's countries. This is something that will both help the U.S.
economy as a major exporter, but also help our growth going forward.
So, we need to work more closely. Specifically, this bill authorizes
financing for private-sector investments both in energy security
projects in the United States and likewise in the trade that will ensue
in renewables.
Mr. Speaker, I want to thank the committee for taking such early
action in this Congress. I think it states the priority nature of this,
knowing that this is going to be something that enhances European
security, our security, enhances our economy and theirs, and seeks to
protect us. Because as they talk about projects like Nord Stream 2 in
Germany, they are using right now that leverage to create a threat and
to isolate countries like Ukraine from their basic energy economic
development.
This is important in so many respects. I urge my colleagues on both
sides of the aisle, showing the leadership of this bipartisan bill, to
move it forward quickly.
I also want to recognize, again, Senator Murphy who has been such a
leader of this on the Senate side. It is rare that we have such strong
bipartisan support for a bill, as well as bicameral support. Let's go
ahead and move this forward today.
Mr. ROONEY of Florida. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I would once again like to thank the authors of this
important bill, Mr. Kinzinger and Mr. Keating, as well as Chairman
Sires for his support, and I am glad to know that Senator Murphy is on
the case as well.
One more time, I would just like to say, if I might, what a terrible
idea the Nord Stream 2 pipeline is, and I appreciate the strong
comments that Congressman Keating just made. We should be opposing
that, and we should be supporting the Trans-Caucasus pipeline to get
more oil into Eastern Europe, away from Russia, and out of the bondage
of their control of the pipelines.
So, I would like to thank the authors one more time and encourage all
our colleagues to support this important bill, and I yield back the
balance of my time.
Mr. SIRES. Mr. Speaker, I yield myself such time as I may consume. I
want to thank, again, Mr. Kinzinger and Mr. Keating for their work on
this bill to bolster our allies in the face of Russian pressure.
This is a good measure that addresses Russia's use of energy to
exploit and blackmail countries around the world, and I urge my
colleagues to support it.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from New Jersey (Mr. Sires) that the House suspend the rules
and pass the bill, H.R. 1616, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SIRES. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________