II 

116TH CONGRESS 

1ST SESSION S. 704 

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. 

IN THE SENATE OF THE UNITED STATES 

MARCH 7, 2019 

Mr. MURPHY (for himself, Mr. JOHNSON, Mr. CARDIN, Mr. RUBIO, Mrs. SHAHEEN, and Mr. GARDNER) introduced the following bill; which was read 

twice and referred to the Committee on Foreign Relations 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘European Energy Se5 curity and Diversification Act of 2019’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) CENTRAL OR EASTERN EUROPEAN COUN4 TRY.—The term ‘‘Central or Eastern European 

5 country’’ includes— 

6 (A) Albania; 

7 (B) Bosnia and Herzegovina; 

8 (C) Bulgaria; 

9 (D) Croatia; 

10 (E) Cyprus; 

11 (F) the Czech Republic; 

12 (G) Estonia; 

13 (H) Greece; 

14 (I) Hungary; 

15 (J) Kosovo; 

16 (K) Latvia; 

17 (L) Lithuania; 

18 (M) Macedonia; 

19 (N) Moldova; 

20 (O) Montenegro; 

21 (P) Poland; 

22 (Q) Romania; 

23 (R) Serbia; 

24 (S) Slovakia; 

25 (T) Slovenia; and 

26 (U) Ukraine. 


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1 (2) EARLY-STAGE PROJECT SUPPORT.—The 

2 term ‘‘early-stage project support’’ includes— 

3 (A) feasibility studies; 

4 (B) resource evaluations; 

5 (C) project appraisal and costing; 

6 (D) pilot projects; 

7 (E) commercial support, such as trade 

8 missions, reverse trade missions, technical 

9 workshops, international buyer programs, and 

10 international partner searchers to link suppliers 

11 to projects; 

12 (F) technical assistance and other guid13 ance to improve the local regulatory environ14 ment and market frameworks to encourage 

15 transparent competition and enhance energy se16 curity; and 

17 (G) long-term energy sector planning. 

18 (3) LATE-STAGE PROJECT SUPPORT.—The term 

19 ‘‘late-stage project support’’ includes debt financing, 

20 insurance, and transaction advisory services. 

21 SEC. 3. STATEMENT OF POLICY. 

22 (a) SENSE OF CONGRESS.—It is the sense of Con23 gress that the United States has economic and national 

24 security interests in assisting Central and Eastern EuroVerDate Sep 11 2014 03:47 Mar 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S704.IS S704

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1 pean countries achieve energy security through diversifica2 tion of their energy sources and supply routes. 

3 (b) STATEMENT OF POLICY.—It is the policy of the 

4 United States— 

5 (1) to advance United States foreign policy and 

6 development goals by assisting Central and Eastern 

7 European countries to reduce their dependence on 

8 energy resources from countries that use energy de9 pendence for undue political influence, such as the 

10 Russian Federation, which has used natural gas to 

11 coerce, intimidate, and influence other countries; 

12 (2) to promote the energy security of allies and 

13 partners of the United States by encouraging the de14 velopment of accessible, transparent, and competitive 

15 energy markets that provide diversified sources, 

16 types, and routes of energy; 

17 (3) to encourage United States public and pri18 vate sector investment in European energy infra19 structure projects to bridge the gap between energy 

20 security requirements and commercial demand in a 

21 way that is consistent with the region’s absorptive 

22 capacity; and 

23 (4) to help facilitate the export of United States 

24 energy resources, technology, and expertise to global 

25 markets in a way that benefits the energy security 


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1 of allies and partners of the United States, including 

2 in Central and Eastern Europe. 

3 SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE 

4 FOR ENERGY INFRASTRUCTURE PROJECTS 

5 IN CENTRAL AND EASTERN EUROPE. 

6 (a) IN GENERAL.—In pursuing the policy described 

7 in section 3, the Secretary of State, in coordination with 

8 the heads of United States agencies that operate under 

9 the policy guidance of the Secretary, shall, as appropriate, 

10 prioritize and expedite the efforts of the Department of 

11 State and those agencies in supporting the efforts of the 

12 European Commission and the governments of Central 

13 and Eastern European countries to increase their energy 

14 security, including through— 

15 (1) providing diplomatic and political support to 

16 the European Commission and those governments, 

17 as necessary— 

18 (A) to facilitate international negotiations 

19 concerning cross-border infrastructure; 

20 (B) to enhance Europe’s regulatory envi21 ronment with respect to energy; and 

22 (C) to develop accessible, transparent, and 

23 competitive energy markets supplied by diverse 

24 sources, types, and routes of energy; and 


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1 (2) providing support to improve European en2 ergy markets, including early-stage project support 

3 and late-stage project support for the construction 

4 or improvement of energy infrastructure, as nec5 essary— 

6 (A) to diversify the energy sources and 

7 supply routes of Central and Eastern European 

8 countries; 

9 (B) to enhance energy market integration 

10 across the region; and 

11 (C) to increase competition within energy 

12 markets. 

13 (b) PROJECT SELECTION.— 

14 (1) IN GENERAL.—The agencies described in 

15 subsection (a) shall identify energy infrastructure 

16 projects that would be appropriate for United States 

17 assistance under this section. 

18 (2) PROJECT ELIGIBILITY.—A project is eligible 

19 for United States assistance under this section if the 

20 project is— 

21 (A) related to— 

22 (i) natural gas infrastructure, such as 

23 interconnectors, storage facilities, liquefied 

24 natural gas import facilities, or reverse 

25 flow capacity; 


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1 (ii) electricity transmission infrastruc2 ture, electricity storage projects, or smart 

3 grid projects; 

4 (iii) renewable energy projects in 

5 wind, solar, tidal, or other forms; or 

6 (iv) the improvement, rehabilitation, 

7 or construction of natural gas, coal, or 

8 other electricity generation facilities to in9 crease the efficiency and reliability of elec10 tricity production; and 

11 (B) located in a Central or Eastern Euro12 pean country. 

13 (3) PREFERENCE.—In selecting among projects 

14 that are eligible under paragraph (2), the agencies 

15 described in subsection (a) shall give preference to 

16 projects that— 

17 (A) link the energy systems of two or more 

18 Central and Eastern European countries; 

19 (B) have already been identified by the 

20 European Commission as being integral for the 

21 energy security of Central and Eastern Euro22 pean countries; 

23 (C) are expected to enhance energy market 

24 integration; 


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1 (D) can attract funding from the private 

2 sector, an international financial institution, the 

3 government of the country in which the project 

4 will be carried out, or the European Commis5 sion; or 

6 (E) have the potential to use United States 

7 goods and services during project implementa8 tion. 

9 (c) TYPES OF ASSISTANCE.— 

10 (1) DIPLOMATIC AND POLITICAL SUPPORT.— 

11 The Secretary of State shall provide diplomatic and 

12 political support to the European Commission and 

13 the governments of Central and Eastern European 

14 countries, as necessary, including by using the diplo15 matic and political influence and expertise of the De16 partment of State to build the capacity of those 

17 countries to resolve any impediments to the develop18 ment of projects selected under subsection (b). 

19 (2) EARLY-STAGE PROJECT SUPPORT.—The Di20 rector of the Trade and Development Agency shall 

21 provide early-stage project support with respect to 

22 projects selected under subsection (b), as necessary. 

23 (3) LATE-STAGE PROJECT SUPPORT.—Agencies 

24 described in subsection (a) that provide late-stage 


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1 project support shall do so with respect to projects 

2 selected under subsection (b), as necessary. 

3 (d) FUNDING.— 

4 (1) PRIVATE SECTOR INVESTMENT.—The agen5 cies described in subsection (a)— 

6 (A) are authorized to provide financing of 

7 not more than $1,000,000,000 to support pri8 vate sector investment in projects that diversify 

9 the energy sources and energy transport capa10 bilities of Central and Eastern European coun11 tries and to improve energy market integration 

12 in those countries; and 

13 (B) shall ensure that amounts from such 

14 investments are available for fiscal years 2020 

15 through 2024 for debt financing and insurance 

16 for projects under this section. 

17 (2) AUTHORIZATION OF APPROPRIATIONS FOR

18 TRADE AND DEVELOPMENT AGENCY.—There are au19 thorized to be appropriated to the Director of the 

20 Trade and Development Agency for each of fiscal 

21 years 2020 through 2024— 

22 (A) $5,000,000 to provide assistance under 

23 this section; and 


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1 (B) such sums as may be necessary for the 

2 Agency to employ additional personnel to pro3 vide such assistance. 

4 (3) COUNTERING RUSSIAN INFLUENCE FUND.— 

5 Section 254(b) of the Countering Russian Influence 

6 in Europe and Eurasia Act of 2017 (22 U.S.C. 

7 9543(b)) is amended by adding at the end the fol8 lowing: 

9 ‘‘(7) To assist United States agencies in pro10 viding assistance under section 4 of the European 

11 Energy Security and Diversification Act of 2019.’’. 

12 SEC. 5. PROGRESS REPORTS. 

13 Not later than one year after the date of the enact14 ment of this Act, and annually thereafter, the President 

15 shall submit to the Committee on Foreign Relations of the 

16 Senate and the Committee on Foreign Affairs of the 

17 House of Representatives a report on progress made in 

18 providing assistance for projects under section 4 that in19 cludes— 

20 (1) a description of the energy infrastructure 

21 projects the United States has identified for such as22 sistance; and 

23 (2) for each such project— 


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1 (A) a description of the role of the United 

2 States in the project, including in early-stage 

3 project support and late-stage project support; 

4 (B) the amount and form of any debt fi5 nancing and insurance provided by the United 

6 States Government for the project; 

7 (C) the amount and form of any early8 stage project support; and 

9 (D) an update on the progress made on 

10 the project as of the date of the report. 

Æ 


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