SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Global Environmental Cleanup Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the lack of environmental pollution controls in foreign 
        countries provides a huge cost savings for foreign 
        manufacturers and agricultural producers, which provide them 
        with an unfair competitive advantage in the global marketplace;
            (2) air and water pollution, including pollution of the 
        oceans, by foreign countries is a direct threat to United 
        States citizens and undermines United States environmental 
        efforts;
            (3) the United States is the largest export market for the 
        worst international polluters; and
            (4) a Global Cleanup Fund that takes a portion of the 
        foreign assistance funds allocated to each foreign country with 
        pollution control standards less stringent than those of the 
        United States and uses those funds to make loans to that 
        country in order to finance the purchase of pollution control 
        equipment and services from the United States--
                    (A) would not impose additional costs on United 
                States taxpayers,
                    (B) would result in increased employment in the 
                United States, and
                    (C) would promote international environmental 
                efforts by establishing environmental responsibility as 
                a clear United States foreign policy priority.

SEC. 3. ANNUAL COUNTRY REPORTS ON POLLUTION PREVENTION PRACTICES.

    (a) Requirement for Reports.--The Secretary of State shall prepare 
a detailed annual report regarding the environmental protection 
requirements of each foreign country with respect to air quality, water 
quality, and disposal of hazardous and solid wastes. For each foreign 
country, each such report shall--
            (1) describe the air quality, water quality, and hazardous 
        and solid waste disposal conditions in that country;
            (2) describe the laws, policies, and practices of the 
        government of that country with respect to air quality, water 
        quality, and hazardous and solid waste disposal; and
            (3) include a determination by the Secretary of State, made 
        after consultation with Administrator of the Environmental 
        Protection Agency, of whether those laws, policies, and 
        practices are adequately enforced to protect the local 
        environment from damaging industrial practices.
    (b) Use of Reports.--Not later than January 31 each year, the 
Secretary of State shall submit a copy of the report required by 
subsection (a) to--
            (1) the Congress;
            (2) the United States Trade Representative, who shall 
        consider the information and determinations contained in such 
        report in carrying out trade negotiations; and
            (3) the head of each agency of the United States Government 
        that is involved in foreign assistance programs, who shall 
        consider the information and determinations contained in such 
        report in determining which countries will receive foreign 
        assistance.

SEC. 4. GLOBAL CLEANUP FUND.

    (a) Countries to Which Section Applies.--This section applies with 
respect to any country for which United States foreign assistance funds 
are allocated for a fiscal year unless the Secretary of State, after 
consultation with Administrator of the Environmental Protection Agency, 
determines that that country, through its laws, policies, and 
practices, assures compliance with pollution control standards with 
respect to air quality, water quality, and disposal of hazardous and 
solid wastes and promotes the protection of the local environment from 
damaging industrial practices.
    (b) Use of Foreign Assistance Funds To Finance the Acquisition of 
United States Environmental Protection Goods and Services.--
Notwithstanding any other provision of law, the President shall use 20 
percent of the aggregate amount of foreign assistance funds allocated 
each fiscal year for a country described in subsection (a)--
            (1) to make loans to the government of that country, on 
        such terms and conditions as the President determines, to 
        enable it to purchase United States pollution control products 
        and services; and
            (2) for administrative expenses in carrying out this 
        section.
    (c) Annual Report to Congress.--Each year, the President shall 
submit to the Committee on Government Operations of the House of 
Representatives and the Committee on Governmental Affairs of the Senate 
a report with respect to implementation of this section during the 
preceding fiscal year. Each such report--
            (1) shall set forth the amount made available for loans to 
        each country under this section;
            (2) shall describe the loans made;
            (3) shall describe the use of United States pollution 
        control products and services purchased by each such country as 
        a result of loans; and
            (4) shall describe the status of pollution control efforts 
        in each such country.

SEC. 5. INTERNATIONAL FINANCIAL INSTITUTION LOANS TO COUNTRIES THAT DO 
              NOT ENFORCE ENVIRONMENTAL STANDARDS TO PROTECT LOCAL 
              ENVIRONMENTS FROM DAMAGING INDUSTRIAL PRACTICES.

    (a) The Secretary of the Treasury shall instruct the United States 
Executive Director of each international financial institution to use 
the voice and vote of the United States to oppose any proposed lending 
by that institution unless the Secretary of State, after consultation 
with the Administrator of the Environmental Protection Agency, 
determines that--
            (1) the borrowing country, through its laws, policies, and 
        practices, adequately and constructively assures compliance 
        with pollution control standards with respect to air quality, 
        water quality, and disposal of hazardous and solid wastes that 
        will protect local environments from damaging industrial 
        practices; or
            (2) the lending will support an industrial project or 
        program that--
                    (A) has the potential to adversely affect air 
                quality or water quality or will involve hazardous or 
                solid wastes, but
                    (B) is designed to protect the local environment 
                from damaging industrial practices.

SEC. 6. DEFINITIONS.

    As used in this Act--
            (1) the term ``foreign assistance'' means assistance under 
        the Foreign Assistance Act of 1961 or section 23 of the Arms 
        Export Control Act; and
            (2) the term ``international financial institution'' 
        includes the International Monetary Fund, the International 
        Bank for Reconstruction and Development, the International 
        Development Association, the International Finance Corporation, 
        and each regional multilateral development bank in which the 
        United States participates.
Global Environmental Cleanup Act - Directs the Secretary of State to prepare an annual report regarding the environmental protection requirements of each foreign country with respect to air and water quality and hazardous and solid waste disposal. 
Directs the President to use 20 percent of the aggregate amount of foreign assistance allocated each fiscal year for a foreign country to make loans to enable the country to purchase U.S. pollution control products and services and for administrative expenses.  Makes such requirement inapplicable if a country assures compliance with pollution control standards and promotes protection of the local environment from damaging industrial practices. 
Requires the Secretary of the Treasury to instruct the U.S. executive directors of each international financial institution to oppose proposed lending unless the Secretary of State determines that: (1) the borrowing country assures compliance with pollution control standards that will protect local environments from damaging industrial practices; or (2) the lending will support an industrial program that has the potential to adversely affect air or water quality or involves hazardous or solid wastes but is designed to protect the environment from damaging industrial practices.
Global Environmental Cleanup Act