[Congressional Record (Bound Edition), Volume 160 (2014), Part 5]
[House]
[Pages 7512-7518]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1915
                      ELECTRIFY AFRICA ACT OF 2014

  Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2548) to establish a comprehensive United States Government 
policy to assist countries in sub-Saharan Africa to develop an 
appropriate mix of power solutions for more broadly distributed 
electricity access in order to support poverty alleviation and drive 
economic growth, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2548

       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 ``Electrify Africa Act of 
     2014''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to encourage the efforts of 
     countries in sub-Saharan Africa to improve access to 
     affordable and reliable electricity in Africa in order to 
     unlock the potential for economic growth, job creation, food 
     security, improved health, education and environmental 
     outcomes, and poverty reduction.

     SEC. 3. FINDINGS.

       Congress finds that--
       (1) 589,000,000 people in sub-Saharan Africa, or 68 percent 
     of the population, did not have access to electricity, as of 
     2010;
       (2) in sub-Saharan Africa, electricity services are highly 
     unreliable and they are at least twice as expensive for those 
     with electricity access compared to other emerging markets;

[[Page 7513]]

       (3) lack of access to electricity services 
     disproportionally affects women and girls, who often shoulder 
     the burden of seeking sources of heat and light such as dung, 
     wood or charcoal and are often more exposed to the associated 
     negative health impacts. Women and girls also face an 
     increased risk of assault from walking long distances to 
     gather fuel sources;
       (4) access to electricity creates opportunities, including 
     entrepreneurship, for people to work their way out of 
     poverty;
       (5) a lack of electricity contributes to the high use of 
     inefficient and often highly polluting fuel sources for 
     indoor cooking, heating, and lighting that produce toxic 
     fumes resulting in more than 3,000,000 annual premature 
     deaths from respiratory disease, more annual deaths than from 
     HIV/AIDS and malaria in sub-Saharan Africa;
       (6) electricity access is crucial for the cold storage of 
     vaccines and anti-retroviral and other lifesaving medical 
     drugs, as well as the operation of modern lifesaving medical 
     equipment;
       (7) electricity access can be used to improve food security 
     by enabling post-harvest processing, pumping, irrigation, dry 
     grain storage, milling, refrigeration, and other uses;
       (8) reliable electricity access can provide improved 
     lighting options and information and communication 
     technologies, including Internet access and mobile phone 
     charging, that can greatly improve health, social, and 
     education outcomes, as well as economic and commercial 
     possibilities;
       (9) sub-Saharan Africa's consumer base of nearly one 
     billion people is rapidly growing and will create increasing 
     demand for United States goods, services, and technologies, 
     but the current electricity deficit in sub-Saharan Africa 
     limits this demand by restricting economic growth on the 
     continent;
       (10) approximately 30 African countries face endemic power 
     shortages, and nearly 70 percent of surveyed African 
     businesses cite unreliable power as a major constraint to 
     growth;
       (11) the Millennium Challenge Corporation's work in the 
     energy sector shows high projected economic rates of return 
     that translate to sustainable economic growth and that the 
     highest returns are projected when infrastructure 
     improvements are coupled with significant legislative, 
     regulatory, institutional, and policy reforms;
       (12) in many countries, weak governance capacity, 
     regulatory bottlenecks, legal constraints, and lack of 
     transparency and accountability can stifle the ability of 
     private investment to assist in the generation and 
     distribution of electricity; and
       (13) without new policies and more effective investments in 
     electricity sector capacity to increase and expand 
     electricity access in sub-Saharan Africa, over 70 percent of 
     the rural population, and 48 percent of the total population, 
     will potentially remain without access to electricity by 
     2030.

     SEC. 4. STATEMENT OF POLICY.

       Congress declares that it is the policy of the United 
     States--
       (1) in consultation with sub-Saharan African governments, 
     to encourage the private sector, international community, 
     African Regional Economic Communities, philanthropies, civil 
     society, and other governments to promote--
       (A) the installation of at least an additional 20,000 
     megawatts of electrical power in sub-Saharan Africa by 2020 
     to support poverty reduction, promote development outcomes, 
     and drive economic growth;
       (B) first-time direct access to electricity for at least 
     50,000,000 people in sub-Saharan Africa by 2020 in both urban 
     and rural areas;
       (C) efficient institutional platforms with accountable 
     governance to provide electrical service to rural and 
     underserved areas; and
       (D) the necessary in-country legislative, regulatory and 
     policy reforms to make such expansion of electricity access 
     possible; and
       (2) to encourage private sector and international support 
     for construction of hydroelectric dams in sub-Saharan Africa 
     that--
       (A) offer low-cost clean energy consistent with--
       (i) the national security interests of the United States; 
     and
       (ii) best international practices regarding social and 
     environmental safeguards, including--

       (I) engagement of local communities regarding the design, 
     implementation, monitoring, and evaluation of such projects;
       (II) the consideration of energy alternatives, including 
     distributed renewable energy; and
       (III) the development of appropriate mitigation measures; 
     and

       (B) support partner country efforts.

     SEC. 5. DEVELOPMENT OF A COMPREHENSIVE, MULTIYEAR STRATEGY.

       (a) Strategy.--The President shall establish a 
     comprehensive, integrated, multiyear policy, partnership, and 
     funding strategy to encourage countries in sub-Saharan Africa 
     to develop an appropriate mix of power solutions, including 
     renewable energy, to provide sufficient electricity access to 
     people living in rural and urban areas in order to alleviate 
     poverty and drive economic growth. Such strategy shall 
     maintain sufficient flexibility and remain responsive to 
     technological innovation in the power sector.
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the President shall transmit to 
     the appropriate congressional committees a report setting 
     forth the strategy described in subsection (a).
       (2) Report contents.--The report required by paragraph (1) 
     shall include a discussion of the elements described in 
     paragraph (3), and should include a discussion of any 
     additional elements relevant to the strategy described in 
     subsection (a).
       (3) Report elements.--The elements referred to in paragraph 
     (2) are the following:
       (A) The general and specific objectives of the strategy 
     described in subsection (a), the criteria for determining 
     success of the strategy, a description of the manner in which 
     the strategy will support partner country efforts to increase 
     production and improve access to electricity, and criteria 
     and indicators used to select partner countries for focused 
     engagement on the power sector.
       (B) Development, by partner country governments, of plans 
     and regulations at the national, regional, and local level to 
     increase power production, strengthen existing electrical 
     transmission and distribution infrastructure, bolster 
     accountable governance and oversight, and improve access to 
     electricity.
       (C) Administration plans to support partner country efforts 
     to increase new access to electricity, including a 
     description of how the strategy will address commercial and 
     residential needs, as well as urban and rural access.
       (D) Administration strategy to support partner country 
     efforts to reduce government waste, fraud, and corruption, 
     and improve existing power generation through improvement of 
     existing transmission and distribution systems, as well as 
     the use of a broad power mix, including renewable energy, and 
     the use of a distributed generation model.
       (E) Administration policy to support partner country 
     efforts to attract private sector investment and public 
     sector resources.
       (F) A description of the Administration's strategy for the 
     transfer of relevant technology, skills, and information to 
     increase local participation in the long-term maintenance and 
     management of the power sector to ensure investments are 
     sustainable and transparent, including details of the 
     programs to be undertaken to maximize United States 
     contributions in the areas of technical assistance and 
     training.
       (G) An identification of the relevant executive branch 
     agencies that will be involved in carrying out the strategy, 
     the level and distribution of resources that will be 
     dedicated on an annual basis among such agencies, timely and 
     comprehensive publication of aid information and available 
     transmission of resource data consistent with Administration 
     commitments to implement the transparency measures specified 
     in the International Aid Transparency Initiative by December 
     2015, the assignment of priorities to such agencies, a 
     description of the role of each such agency, and the types of 
     programs that each such agency will undertake.
       (H) A description of the mechanisms that will be utilized 
     by the Administration, including the International Aid 
     Transparency Initiative, to coordinate the efforts of the 
     relevant executive branch agencies in carrying out the 
     strategy to avoid duplication of efforts, enhance 
     coordination, and ensure that each agency undertakes programs 
     primarily in those areas where each such agency has the 
     greatest expertise, technical capabilities, and potential for 
     success.
       (I) A description of the mechanisms that will be 
     established by the Administration for monitoring and 
     evaluating the strategy and its implementation, including 
     procedures for learning and sharing best practices among 
     relevant executive branch agencies, as well as among 
     participating countries, and for terminating unsuccessful 
     programs.
       (J) A description of the Administration's engagement plan, 
     consistent with international best practices, to ensure local 
     and affected communities are informed, consulted, and benefit 
     from projects encouraged by the United States, as well as the 
     environmental and social impacts of the projects.
       (K) A description of the mechanisms that will be utilized 
     to ensure greater coordination between the United States and 
     foreign governments, international organizations, African 
     regional economic communities, international fora, the 
     private sector, and civil society organizations.
       (L) A description of how United States leadership will be 
     used to enhance the overall international response to 
     prioritizing electricity access for sub-Saharan Africa and to 
     strengthen coordination among relevant international forums 
     such as the Post-2015 Development Agenda and the G8 and G20, 
     as well as the status of efforts to support reforms that are 
     being undertaken by partner country governments.
       (M) An outline of how the Administration intends to partner 
     with foreign governments, the international community, and 
     other public sector entities, civil society groups, and the 
     private sector to assist sub-Saharan African countries to 
     conduct comprehensive project feasibility studies and 
     facilitate project development.

[[Page 7514]]

       (N) A description of how the Administration intends to help 
     facilitate transnational and regional power and 
     electrification projects where appropriate.

     SEC. 6. USAID.

       (a) Loan Guarantees.--It is the sense of Congress that in 
     pursuing the policy goals described in section 4, the 
     Administrator of USAID should identify and prioritize--
       (1) loan guarantees to local sub-Saharan African financial 
     institutions that would facilitate the involvement of such 
     financial institutions in power projects in sub-Saharan 
     Africa; and
       (2) partnerships and grants for research, development, and 
     deployment of technology that would increase access to 
     electricity in sub-Saharan Africa.
       (b) Grants.--It is the sense of Congress that the 
     Administrator of USAID should consider providing grants to--
       (1) support the development and implementation of national, 
     regional, and local energy and electricity policy plans;
       (2) expand distribution of electricity access to the 
     poorest; and
       (3) build a country's capacity to plan, monitor and 
     regulate the energy and electricity sector.
       (c) USAID Defined.--In this section, the term ``USAID'' 
     means the United States Agency for International Development.

     SEC. 7. LEVERAGING INTERNATIONAL SUPPORT.

       In pursuing the policy goals described in section 4, the 
     President should direct the United States' representatives to 
     appropriate international bodies to use the influence of the 
     United States, consistent with the broad development goals of 
     the United States, to advocate that each such body--
       (1) commit to significantly increase efforts to promote 
     investment in well-designed power sector and electrification 
     projects in sub-Saharan Africa that increase energy access, 
     in partnership with the private sector and consistent with 
     the host countries' absorptive capacity;
       (2) address energy needs of individuals and communities 
     where access to an electricity grid is impractical or cost-
     prohibitive;
       (3) enhance coordination with the private sector in sub-
     Saharan Africa to increase access to electricity;
       (4) provide technical assistance to the regulatory 
     authorities of sub-Saharan African governments to remove 
     unnecessary barriers to investment in otherwise commercially 
     viable projects; and
       (5) utilize clear, accountable, and metric-based targets to 
     measure the effectiveness of such projects.

     SEC. 8. OVERSEAS PRIVATE INVESTMENT CORPORATION.

       (a) In General.--The Overseas Private Investment 
     Corporation should--
       (1) in carrying out its programs and pursuing the policy 
     goals described in section 4, place a priority on supporting 
     investment in the electricity sector of sub-Saharan Africa, 
     including renewable energy, and implement procedures for 
     expedited review of and, where appropriate, approval of, 
     applications by eligible investors for loans, loan 
     guarantees, and insurance for such investments;
       (2) support investments in projects and partner country 
     strategies to the extent permitted by its authorities, 
     policies, and programs, that will--
       (A) maximize the number of people with new access to 
     electricity to support economic development;
       (B) improve the generation, transmission, and distribution 
     of electricity;
       (C) provide reliable and low-cost electricity, including 
     renewable energy and on-grid, off-grid, and multi-grid 
     solutions, to people living in rural and urban communities;
       (D) consider energy needs of individuals where access to an 
     electricity grid is impractical or cost-prohibitive;
       (E) reduce transmission and distribution losses and improve 
     end-use efficiency; and
       (F) reduce energy-related impediments to business and 
     investment opportunity and success;
       (3) encourage locally-owned, micro, small- and medium-sized 
     enterprises and cooperative service providers to participate 
     in investment activities in sub-Saharan Africa; and
       (4) publish in an accessible digital format measurable 
     development impacts of its investments, including appropriate 
     quantifiable metrics to measure energy access at the 
     individual household, enterprise, and community level; and
       (5) publish in an accessible digital format the amount, 
     type, location, duration, and measurable results, with links 
     to relevant reports and displays on an interactive map, where 
     appropriate, of all OPIC investments and financings.
       (b) Amendments.--Title IV of chapter 2 of part I of the 
     Foreign Assistance Act of 1961 is amended--
       (1) in section 233 (22 U.S.C. 2193)--
       (A) in subsection (b), by inserting after the sixth 
     sentence the following new sentence: ``Of the eight such 
     Directors, not more than five should be of the same political 
     party.''; and
       (B) by adding at the end the following new subsection:
       ``(e) Investment Advisory Council.--The Board shall take 
     prompt measures to increase the loan, guarantee, and 
     insurance programs, and financial commitments, of the 
     Corporation in sub-Saharan Africa, including through the use 
     of an investment advisory council to assist the Board in 
     developing and implementing policies, programs, and financial 
     instruments with respect to sub-Saharan Africa. In addition, 
     the investment advisory council shall make recommendations to 
     the Board on how the Corporation can facilitate greater 
     support by the United States for trade and investment with 
     and in sub-Saharan Africa. The investment advisory council 
     shall terminate on December 31, 2017.'';
       (2) in section 234(c) (22 U.S.C. 2194(c)), by inserting 
     ``eligible investors or'' after ``involve'';
       (3) in section 235(a)(2) (22 U.S.C. 2195), by striking 
     ``2007'' and inserting ``2017'';
       (4) in section 237(d) (22 U.S.C. 2197(d))--
       (A) in paragraph (2), by inserting ``, systems 
     infrastructure costs,'' after ``outside the Corporation''; 
     and
       (B) in paragraph (3), by inserting ``, systems 
     infrastructure costs,'' after ``project-specific transaction 
     costs''; and
       (5) by amending section 239(e) (22 U.S.C. 2199(e)) to read 
     as follows:
       ``(e) Inspector General.--The Board shall appoint and 
     maintain an Inspector General in the Corporation, in 
     accordance with the Inspector General Act of 1978 (5 U.S.C. 
     App.).''.
       (c) Annual Consumer Satisfaction Survey and Report.--
       (1) Survey.--
       (A) In general.--For each of calendar years 2014 through 
     2016, the Overseas Private Investment Corporation shall 
     conduct a survey of private entities that sponsor or are 
     involved in projects that are insured, reinsured, guaranteed, 
     or financed by the Corporation regarding the level of 
     satisfaction of such entities with the operations and 
     procedures of the Corporation with respect to such projects.
       (B) Priority.--The survey shall be primarily focused on 
     United States small businesses and businesses that sponsor or 
     are involved in projects with a cost of less than $20,000,000 
     (as adjusted for inflation).
       (2) Report.--
       (A) In general.--Not later than each of July 1, 2015, July 
     1, 2016, and July 1, 2017, the Corporation should submit to 
     the congressional committees specified in subparagraph (C) a 
     report on the results of the survey required under paragraph 
     (1).
       (B) Matters to be included.--The report should include the 
     Corporation's plans to revise its operations and procedures 
     based on concerns raised in the results of the survey, if 
     appropriate.
       (C) Form.--The report shall be submitted in unclassified 
     form and shall not disclose any confidential business 
     information.
       (D) Congressional committees specified.--The congressional 
     committees specified in this subparagraph are--
       (i) the Committee on Appropriations and the Committee on 
     Foreign Affairs of the House of Representatives; and
       (ii) the Committee on Appropriations and the Committee on 
     Foreign Relations of the Senate.

     SEC. 9. TRADE AND DEVELOPMENT AGENCY.

       (a) In General.--The Director of the Trade and Development 
     Agency should--
       (1) promote United States private sector participation in 
     energy sector development projects in sub-Saharan Africa 
     through project preparation activities, including feasibility 
     studies at the project, sector, and national level, technical 
     assistance, pilot projects, reverse trade missions, 
     conferences and workshops; and
       (2) seek opportunities to fund project preparation 
     activities that involve increased access to electricity, 
     including power generation and trade capacity building.
       (b) Focus.--In pursuing the policy goals described in 
     section 4, project preparation activities described in 
     subsection (a) should focus on power generation, including 
     renewable energy, improving the efficiency of transmission 
     and distribution grids, including on-grid, off-grid and mini-
     grid solutions, and promoting energy efficiency and demand-
     side management.

     SEC. 10. PROGRESS REPORT.

       Not later than three years after the date of the enactment 
     of this Act, the President shall transmit to the Committee on 
     Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate, and post 
     through appropriate digital means, a report on progress made 
     toward achieving the policy goals described in section 4, 
     including the following:
       (1) The number, type, and status of policy, regulatory, and 
     legislative changes implemented in partner countries to 
     support increased electricity generation and access, and 
     strengthen effective, accountable governance of the 
     electricity sector since United States engagement.
       (2) A list of power sector and electrification projects 
     United States Government instruments are supporting to 
     achieve the policy goals described in section 4, and for each 
     such project--
       (A) a description of how each such project fits into the 
     national power plans of the partner country;
       (B) the total cost of each such project and predicted 
     United States Government contributions, and actual grants and 
     other financing provided to such projects, broken

[[Page 7515]]

     down by United States Government funding source, including 
     from the Overseas Private Investment Corporation, the United 
     States Agency for International Development, the Department 
     of the Treasury, and other appropriate United States 
     Government departments and agencies;
       (C) the predicted electrical power capacity of each project 
     upon completion, with metrics appropriate to the scale of 
     electricity access being supplied, as well as total megawatts 
     installed;
       (D) compliance with international best practices and 
     expected environmental and social impacts from each project;
       (E) the estimated number of women, men, poor communities, 
     businesses, schools, and health facilities that have gained 
     electricity connections as a result of each project at the 
     time of such report; and
       (F) the current operating electrical power capacity in 
     wattage of each project.

  The SPEAKER pro tempore (Mr. Collins of Georgia). Pursuant to the 
rule, the gentleman from California (Mr. Royce) and the gentleman from 
New York (Mr. Engel) each will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members have 
5 legislative days to revise and extend their remarks and to include 
any extraneous materials they may want to in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the Electrify Africa Act is a direct response to the 
problem that nearly 600 million people living in sub-Saharan Africa do 
not have access to reliable electricity.
  The Electrify Africa Act offers a market-based response to that 
problem, and it does this through U.S. private sector investment to 
develop affordable, reliable energy in Africa. Most importantly, I 
think it does so at no additional cost to the taxpayer.
  Why do we want to help increase energy access to the African 
continent? To create jobs, to improve lives. It will improve lives in 
Africa. It will create jobs there and here in the United States. It is 
no secret that Africa has great potential as a trading partner and 
could help create jobs here in the U.S.
  As the Foreign Affairs Committee investigated how to make better use 
of the African Growth and Opportunity Act, landmark legislation that we 
passed over a decade ago to expand trade with Africa, we learned that 
the lack of affordable, reliable energy made the production of goods 
for trade and export nearly impossible.
  How impossible? I will just give you an example. We were in Liberia 
looking at the interrupted power that is always a problem there. Even 
at our own Embassy, the cost of ruining that diesel generator is 
$10,000 a day sometimes when they have to get that thing up and running 
in order to keep power generated. You can imagine the problem when you 
are talking about a country with as much power generation and as much 
electricity as the size of the electricity that lights up the Dallas 
Cowboys stadium. That is the problem that one country has. You can 
imagine what it would mean if we could bring online electricity in 
order to electrify the subcontinent.
  I would also remind the Members that the United States is not alone 
in its interests in enhancing trade with Africa through investment and 
energy. The example I would give you is China, because China has 
stepped in to direct $2 billion towards energy projects on the 
continent. As I speak, the Chinese Premier is in Africa signing deals 
that favor Chinese companies over American businesses. If the United 
States wishes to tap into the potential consumer base there in sub-
Saharan Africa, we must act now.
  This bill will also have a tangible impact on people's lives, as I 
said. As former chairman of the Subcommittee on Africa, I have seen 
firsthand how our considerable investments in improving access to 
health care, improving access to education in Africa are undermined by 
the lack of reliable energy. In many places, schoolchildren are forced 
to study by inefficient, dangerous kerosene lamps. Cold storage of 
lifesaving vaccines is almost impossible without the existence of 
reliable electricity. Too many families resort to using charcoal and 
other inefficient and highly toxic sources of fuel whose fumes in 
Africa today cause more deaths than HIV/AIDS and malaria, combined.
  Many of us on the committee have worked to transform our foreign 
assistance programs that offer extensive Band-Aids to policies that 
support economic growth. The Electrify Africa Act is part, frankly, of 
a very important transition here. This bill mandates a clear and 
comprehensive U.S. policy, providing the private sector with the 
certainty that it needs to invest in African electricity at no cost to 
the U.S. taxpayer. In fact, the bill is predicted to generate savings 
by requiring the Overseas Private Investment Corporation to focus on 
these energy priorities and undertake much-needed permanent reforms.
  I reserve the balance of my time, Mr. Speaker.
  Mr. ENGEL. Mr. Speaker, I rise in strong support of H.R. 2548, the 
Electrify Africa Act, and I yield myself such time as I may consume.
  Mr. Speaker, I would first like to begin by thanking our chairman of 
the Committee on Foreign Affairs, Mr. Royce, for working with us in a 
bipartisan manner on this important legislation and for his 
longstanding commitment to improving U.S.-Africa relations and lifting 
Africans out of poverty.
  Mr. Royce has long, for many years on the Committee on Foreign 
Affairs, worked with and been very concerned about Africa. This bill 
is, in part, a culmination of his hard work and his longstanding 
dedication.
  In the United States, we take reliable electricity for granted. When 
we flip the switch, we expect the lights to come on. This winter many 
of us were frustrated when storms knocked out our power. Life was 
harder as we impatiently waited for the electricity to be restored. 
Imagine if the power never came back and that was your life every day, 
year in and year out. That is the stark reality facing many families in 
Africa.
  Indeed sub-Saharan Africa is one of the most energy-deficient regions 
of the world, with nearly 70 percent of the population, more than half 
a billion people, lacking access to electricity. In some countries the 
figure is even higher: in the Democratic Republic of the Congo, 85 
percent of the population has no power; in Kenya, 82 percent of the 
population has no power; and in Uganda, 92 percent. These are truly 
staggering statistics.
  The lack of reliable electricity has a major impact on day-to-day 
life and many negative consequences. In desperation, people burn 
anything they can find for heat and cooking: wood, plastic, trash, and 
other toxic materials. These dirtier fuels cause greater harm to 
people's health and also to the environment.
  Many businesses have had a hard time succeeding because they are 
forced to pour expensive diesel fuel into generators day and night or 
deal with constant power outages from unreliable electrical grids. 
Hospitals cannot provide adequate services because they are unable to 
provide consistent cold storage, light, or power for lifesaving 
devices. The list goes on and on.
  This legislation directs the executive branch to develop a strategy 
to increase electrification in Africa and to employ U.S. assistance 
programs to help accomplish that goal. This long-term strategy will 
focus not only on providing incentives for the private sector to build 
more power plants, but also on increasing African government 
accountability and transparency, improving regulatory environments, and 
increasing access to electricity in rural and poor communities through 
small, renewable energy projects.
  Only by addressing all of these challenges in a comprehensive way 
will millions of people in Africa finally have access to electricity 
that will allow them to grow their economies and ultimately reduce 
their reliance on foreign aid.

[[Page 7516]]

  I urge my colleagues to join me in supporting this amendment. It is a 
very important piece of legislation.
  I reserve the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. McClintock).
  Mr. McCLINTOCK. Mr. Speaker, I thank my friend for yielding to a 
dissenting opinion.
  Mr. Speaker, one of the biggest complaints I hear is the practice of 
forcing taxpayers to underwrite the losses and risks of politically 
well-connected companies. Companies reap the profits; taxpayers pay for 
the losses.
  Today the House considers a bill that perpetuates this policy with 
the objective of creating jobs not in America, but overseas. Quietly 
tucked into this bill is a provision to reauthorize the Overseas 
Private Investment Corporation, or OPIC, for another 3 years.
  OPIC provides political risk insurance, loan guarantees, and direct 
loans to U.S. companies for their overseas investments, making U.S. 
taxpayers responsible for their losses. Recent beneficiaries include 
the Ritz-Carlton in Istanbul; Citibank branches in Pakistan, Jordan, 
and Egypt; and a SunEdison solar farm in South Africa.
  According to the Congressional Research Service, this does nothing to 
help our economy. We are told it doesn't cost taxpayers because recent 
losses have been minimal and covered by fees. I remember similar 
assurances about Fannie Mae and Freddie Mac. Such assurances are good 
only until they are not good, and taxpayer exposure is monumental and 
growing.
  This measure directs OPIC ``to prioritize investment in the sub-
Saharan electricity sector.'' Yet one company doing so, Symbion, 
recently warned the Senate that it was owed $70 million at the end of 
February by utilities in just one African country.

                              {time}  1930

  Reviewing OPIC's $10 billion portfolio in Africa, the Center for 
Global Development reported that if the money had been used for natural 
gas plants rather than renewables, an additional 60 million people 
would have had electricity. But that is not politically correct.
  OPIC pays for the bad business decisions of large corporations and 
underwrites job creation abroad, all ultimately underwritten by 
hardworking American taxpayers. What is not to like about that?
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  I share the gentleman's concern about corporate welfare. I have spent 
years pressing OPIC for greater transparency. Finally, in this measure 
we have a whole host of reforms.
  But I will remind this body that years back we exposed and helped 
kill OPIC's investment funds that were helping political cronies.
  I would also remind this body that we are only willing to give OPIC a 
short-term extension by redirecting it to focus on an area that lacks 
investment and will have a major impact on the long-term growth of a 
country, and that is electricity.
  I can assure the gentleman from California that this committee will 
continue its OPIC oversight, but I should note that OPIC is not a free 
service. OPIC charges fees that generate a financial return for the 
U.S. Treasury. To ensure that OPIC is not crowding out the private 
sector, they must demonstrate that no commercial bank is willing to 
provide the financing package requested directly from OPIC, and this is 
the case in doing business in Africa.
  The temporary authorization for OPIC, by the way, was included in the 
introduced version of the Electrify Africa Act and has remained in 
every following version.
  I would also point out that this bill includes the significant 
reforms, additional reforms, that I and others have been trying to get 
into OPIC. For example, OPIC's operations will finally be transparent 
to the public, as the agency will be required to post specific 
information about all of its projects online, including each project's 
financing, the location, the partners. The bill also creates an OPIC 
inspector general. It forces OPIC's board to become for the first time 
in history bipartisan. This ensures that organizations interested in 
working with OPIC will be able to get a balanced perspective when 
reaching out to the agency.
  I will also close in response by noting that OPIC's last multiyear 
authorization expired in 2007. The agency has been extended 28 times on 
appropriations bills and continuing resolutions with zero reforms. We 
come to the floor here in an open process to try to reform OPIC and to 
give it this mission. I think this legislation accomplishes a great 
deal on both fronts.
  I continue to reserve the balance of my time.
  Mr. ENGEL. Mr. Speaker, when this bill was submitted it had, and 
continues to have, strong bipartisan support.
  I yield as much time as she may consume to the gentlewoman from 
California (Ms. Bass), one of the original cosponsors on the bill, our 
ranking member on the Africa Subcommittee.
  Ms. BASS. Mr. Speaker, I rise in strong support of H.R. 2548, the 
Electrify Africa Act of 2014, a bill that directs the President to 
expand electrification in Sub-Saharan Africa.
  I would like to thank my good friends and colleagues, Chairman Ed 
Royce and Ranking Member Eliot Engel, and the committee staff, for all 
of the work that they have done on this important bill.
  H.R. 2548 directs the President to establish a multiyear strategy to 
assist countries in Sub-Saharan Africa to develop an appropriate mix of 
power solutions to provide sufficient electricity access to people 
living in rural and urban areas in order to alleviate poverty and drive 
economic growth.
  With greater access to electricity, Africa has the capacity to grow 
its economies, facilitating greater volumes of interregional, 
transcontinental, and international trade. Greater access to 
electricity also enables countries to expand human capacity and address 
the critical challenges of underemployment. Access to additional power 
will also help both individual countries and geographic regions address 
infrastructure challenges related to things such as roads, rail, and 
ports, all of which contributes to increasing the capacity of African 
nations and the continent as a whole.
  Greater access to electricity improves the quality of life for not 
only urban, but rural communities. Even though we are well into the 
21st century, it is difficult to imagine two-thirds of the population 
of Sub-Saharan Africa lives without electricity, including more than 85 
percent of Africans living in rural areas. Not having electricity means 
children study by candlelight and doctors and midwives delivering 
babies who must rely on flashlights. A life without electricity means 
education, health care, and the basic needs of millions of Africans 
suffer.
  In summary, I believe we are taking a giant step in the right 
direction by helping to address the issues of access to electrical 
power in Africa. This bill provides an opportunity to work with the 
governments and private sectors of African countries anxious to 
increase their individual and combined regional access to electricity. 
We all know that seven of the 10 fastest-growing economies are on the 
African continent. This is a great step forward toward addressing 
poverty and changing the paradigm in U.S.-Africa relations.
  I agree with the chair of the committee who talked about the reforms 
to OPIC. I would differ with my colleague from California though, 
because I do believe that as the economies of Africa strengthen, that 
increases the ability for those countries and businesses on the 
continent to do business with U.S. companies, which, in my opinion, 
also increases jobs in the United States.
  I urge my colleagues to join me in supporting H.R. 2548, the 
Electrify Africa Act of 2014.
  Mr. ROYCE. Mr. Speaker, I continue to reserve the balance of my time.
  Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
  In closing, I would like to once again point out that this is a 
bipartisan bill. The four original cosponsors are Chairman Royce and 
Chairman Smith on the Republican side, myself as the ranking member, 
and Ms. Bass as the ranking

[[Page 7517]]

member on the Africa Subcommittee on the Democratic side. So this is 
truly a bipartisan collaboration that is very important, well thought 
out, and I agree with everything the chairman said. This bill will 
reform OPIC and will reform how this kind of aid is done.
  I would like to again thank Chairman Royce for being an outstanding 
partner in drafting this legislation and for his leadership in passing 
the bill out of our committee unanimously. That is another thing that I 
think is so important to what we do on the committee. We try to pass 
things in consensus and try to let everybody put his or her thoughts 
into the bill. This passed unanimously out of the committee, and that 
doesn't happen lightly or easily. It is done because lots of concerns 
were taken into consideration, things were ameliorated, things were 
changed, and what we have is a very, very good product.
  As has been said, this legislation has the potential to impact 
millions of people in Sub-Saharan Africa. A doctor in Kenya will be 
able to treat a patient without worrying about her equipment shutting 
off, a child in Congo can continue studying long after the sun sets. 
The bottom line is that reliable access to electricity will help build 
African economies and reduce their reliance on foreign aid, saving the 
United States money.
  I hope the Senate will also take action on this bill, again, which 
has broad bipartisan support in the Senate. I urge my colleagues to 
support this positive piece of legislation for Africa.
  I yield back the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  I do want to thank Ranking Member Eliot Engel of New York, as well as 
Chairman Chris Smith and Ranking Member Karen Bass of the Africa 
Subcommittee, for working closely with me to craft the Electrify Africa 
Act.
  I will remind the Members that where the United States has left a 
void for economic investment in the world--and Africa is one of them--
China has stepped in. In this case, we are speaking at a time when the 
Premier of China is on the ground right now in Sub-Saharan Africa. 
China has stepped in to direct $2 billion to African energy projects. 
This bill will counter China's growing commercial and strategic 
influence.
  But what else will the bill do? Unlocking the constraint on African 
economic growth means a continent less reliant on aid. The bill 
promotes an all-of-the-above approach to electricity that includes 
natural gas and clean coal and hydro.
  The CBO estimates that this bill will save the U.S. Treasury $86 
million. Electrify Africa imposes permanent reform, as I mentioned, on 
the Overseas Private Investment Corporation. The bill focuses OPIC on 
promoting electricity in Africa. It forces oversight. It demands 
transparency on the institution, lays that out, and makes the OPIC 
board bipartisan.
  There is every reason to support efforts that encourage economic 
independence, that strengthen trading partners and that compete with 
Chinese influence in a vital region, as someone once said.
  I also want to recognize the wide range of enthusiasm for this bill. 
We have received letters of support from 35 African ambassadors, the 
Chamber of Commerce, the Corporate Council on Africa, the National 
Rural Electric Cooperative Association, the American Academy of 
Pediatrics--and we know from Karen Bass' testimony why they are in 
support--and from the One Campaign. Many of these supporters have 
joined us today in the House gallery to watch this landmark vote.
  The United States has economic and national security interests in the 
continued development of the African continent. This bill sets out a 
comprehensive, sustainable, market-based plan to bring close to 600 
million Africans out of the dark and into the global economy, 
benefiting American businesses and workers at the same time.
  Mr. Speaker, I urge Members to support H.R. 2548, the Electrify 
Africa Act.
  I yield back the balance of my time.
  Mrs. LUMMIS. Mr. Speaker, today the U.S. House of Representatives 
considered legislation important to improving the quality-of-life and 
opportunities for the millions of people living in sub-Saharan Africa. 
H.R. 2548, the Electrify Africa Act, would require the United States to 
develop a comprehensive strategy to improve access to electricity for 
the nearly 600 million people currently living without it in those 
countries.
  Almost 70 percent of the population in sub-Saharan Africa lives in 
energy poverty, without access to even basic electricity services. The 
connection between energy poverty and economic poverty cannot be 
ignored. For those of us in the United States with access to reliable 
electricity, it is difficult to truly comprehend what life would be 
like without the services electricity provides: the ability to simply 
flip a light switch to have light at any hour of the day, or charge 
your cell phone; refrigeration of foods, medicines, and life-saving 
vaccines; indoor cooking; use of the Internet; advanced health care 
technology; clean water and sanitation services. The list goes on and 
on.
  But consider how different our lives would be if we did not have 
access to affordable and reliable electricity--what it would be like if 
we had to travel miles each day to gather fuel sources to cook our 
food; had to rely only on daylight to accomplish tasks; had no access 
to clean water and other sanitation services; and no access to life-
saving medical technology readily available in other parts of the world 
but that require electricity to work. That is the reality for the 
hundreds of millions of people in sub-Saharan Africa. They struggle 
each day to provide for their basic needs. Affordable and reliable 
access to electricity would transform these regions, providing 
opportunities for economic growth and a better quality-of-life.
  What I consider especially important about H.R. 2548 is that this 
bill recognizes that a ``one-size-fits-all'' energy strategy will not 
benefit these countries and their populations. This legislation calls 
for an appropriate mix of energy options, non-renewable and renewable, 
to address the energy poverty endemic to these regions. In its report, 
the House Foreign Affairs Committee notes that coal, natural gas, and 
oil are all available potential energy sources to generate electricity 
in sub-Saharan Africa, as well as solar, hydropower, and geothermal.
  An all-inclusive energy mix is vital to addressing energy 
accessibility and reliability in impoverished parts of the world. 
Regions and countries should responsibly generate power using the 
energy resources that are most readily available to them and that 
provide the most affordable and reliable option. If the energy source 
to generate the electricity is available but so expensive that people 
cannot afford to use it, then what good does it do? Similarly, an 
electricity supply too dependent on intermittent sources does not 
benefit a health care provider trying to perform a procedure using 
medical equipment reliant on a consistent source of electricity or 
administer vaccines that must be kept refrigerated.
  The current Administration has unfortunately sought to dictate what 
sources of energy can be used in developing nations, promoting some and 
discriminating against others, namely cheap and abundant coal-fired 
power. This only does a disservice to the people who need the services 
and opportunities that electricity provides. H.R. 2548 reminds us of 
the consequences of not having access to affordable and reliable 
electricity, something I think many of us take for granted. It further 
reminds us about the importance of an all-of-the-above energy mix to 
our country's access to cheap and reliable electricity, economic 
stability, and quality-of-life. I am pleased that the Electrify Africa 
Act recognizes these realities, establishing a framework for countries 
in Sub-Saharan Africa to pursue the energy development that makes the 
most sense for them.
  Mr. SMITH of New Jersey. Mr. Speaker, Chairman Royce and Ranking 
Member Engel, thank you for introducing this important legislation H.R. 
2548, the Electrify Africa Act, which my subcommittee Ranking Member 
Karen Bass and I have joined you in sponsoring. We acknowledge the 
importance of this legislation, and we hope our colleagues share our 
enthusiasm for what this bill can accomplish.
  Congress' interest in Africa is not only longstanding, but also 
varied. Some of focus on development, and some are more interested in 
trade. Others are keen to meet the humanitarian needs of the continent, 
while still others believe education is the key to Africa's future 
success. All of those elements are important, but none of them can be 
accomplished fully without electricity, which is in far too short a 
supply throughout Africa.
  In Africa's largest cities, there are plenty of lights, and in Lagos, 
Accra, Nairobi, Dakar, Johannesburg, Addis Ababa or Lusaka the modern 
way of life is thriving--day or night. Unfortunately, in many other 
cities, electricity is

[[Page 7518]]

fleeting, and in too many rural areas it is simply scarce. Generators 
provide the power by which many companies are forced to do business, 
and in many homes, generators are needed to ensure that modern 
activities can continue when the government-provided power flickers 
out. This is so expensive that many Africans are forced to rely on more 
basic means of providing light once night approaches, but in the 21st 
century, the people of Africa must not be dependent on the sun or 
candles and lanterns to deliver their light. Certainly, these means 
cannot power their cell phones, televisions or other technology on 
which today's societies thrive.
  We all want Africa to join in the development the rest of the world 
enjoys, yet that is not possible without a steady source of energy. 
Manufacturing is only a notion without the power to move assembly lines 
and produce goods. Vaccines and other medicines will last only so long 
without refrigeration, and that requires steady electrical power. A 
student studying by candlelight or by the light of a lantern is a 
quaint notion that can no longer be the reality of young Africans 
striving to build a better life.
  H.R. 2548 will improve access to affordable, reliable electricity in 
sub-Saharan Africa, where more than two-thirds of Africans lack access 
to electricity. This bill does not provide electricity as a gift; it 
facilitates cooperation between our government and African governments 
in finding the most efficient and effective means of establishing 
electric power for their citizens. By requiring our Administration to 
create a comprehensive multiyear strategy, H.R. 2548 ensures that there 
is a mutually agreeable plan that can be implemented by future 
Administrations and Congresses in collaboration with willing African 
partners. This bill also calls on U.S. representatives to international 
institutions to leverage other international support for providing 
electricity to Africa.
  I call on my colleagues to join with us in voting for H.R. 2548. In 
doing so, we will not only provide power for Africa, but we also will 
energize our dreams for Africa's current and future development.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Royce) that the House suspend the rules 
and pass the bill, H.R. 2548, 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. McCLINTOCK. 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.

                          ____________________