II 

Calendar No. 331 

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 

DECEMBER 17, 2019 

Reported by Mr. RISCH, with an amendment and an amendment to the title 

[Strike out all after the enacting clause and insert the part printed in italic] 

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, 


kjohnson on DSK79L0C42 with BILLS
2 

•S 704 RS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘European Energy Se3 curity and Diversification Act of 2019’’. 

4 SEC. 2. DEFINITIONS. 

5 In this Act: 

6 (1) CENTRAL OR EASTERN EUROPEAN COUN7 TRY.—The term ‘‘Central or Eastern European 

8 country’’ includes— 

9 (A) Albania; 

10 (B) Bosnia and Herzegovina; 

11 (C) Bulgaria; 

12 (D) Croatia; 

13 (E) Cyprus; 

14 (F) the Czech Republic; 

15 (G) Estonia; 

16 (H) Greece; 

17 (I) Hungary; 

18 (J) Kosovo; 

19 (K) Latvia; 

20 (L) Lithuania; 

21 (M) Macedonia; 

22 (N) Moldova; 

23 (O) Montenegro; 

24 (P) Poland; 

25 (Q) Romania; 

26 (R) Serbia; 


kjohnson on DSK79L0C42 with BILLS
3 

•S 704 RS

1 (S) Slovakia; 

2 (T) Slovenia; and 

3 (U) Ukraine. 

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

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

6 (A) feasibility studies; 

7 (B) resource evaluations; 

8 (C) project appraisal and costing; 

9 (D) pilot projects; 

10 (E) commercial support, such as trade 

11 missions, reverse trade missions, technical 

12 workshops, international buyer programs, and 

13 international partner searchers to link suppliers 

14 to projects; 

15 (F) technical assistance and other guid16 ance to improve the local regulatory environ17 ment and market frameworks to encourage 

18 transparent competition and enhance energy se19 curity; and 

20 (G) long-term energy sector planning. 

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

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

23 insurance, and transaction advisory services. 


kjohnson on DSK79L0C42 with BILLS
4 

•S 704 RS

1 SEC. 3. STATEMENT OF POLICY. 

2 (a) SENSE OF CONGRESS.—It is the sense of Con3 gress that the United States has economic and national 

4 security interests in assisting Central and Eastern Euro5 pean countries achieve energy security through diversifica6 tion of their energy sources and supply routes. 

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

8 United States— 

9 (1) to advance United States foreign policy and 

10 development goals by assisting Central and Eastern 

11 European countries to reduce their dependence on 

12 energy resources from countries that use energy de13 pendence for undue political influence, such as the 

14 Russian Federation, which has used natural gas to 

15 coerce, intimidate, and influence other countries; 

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

17 partners of the United States by encouraging the de18 velopment of accessible, transparent, and competitive 

19 energy markets that provide diversified sources, 

20 types, and routes of energy; 

21 (3) to encourage United States public and pri22 vate sector investment in European energy infra23 structure projects to bridge the gap between energy 

24 security requirements and commercial demand in a 

25 way that is consistent with the region’s absorptive 

26 capacity; and 


kjohnson on DSK79L0C42 with BILLS
5 

•S 704 RS

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

2 energy resources, technology, and expertise to global 

3 markets in a way that benefits the energy security 

4 of allies and partners of the United States, including 

5 in Central and Eastern Europe. 

6 SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE 

7 FOR ENERGY INFRASTRUCTURE PROJECTS 

8 IN CENTRAL AND EASTERN EUROPE. 

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

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

11 the heads of United States agencies that operate under 

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

13 prioritize and expedite the efforts of the Department of 

14 State and those agencies in supporting the efforts of the 

15 European Commission and the governments of Central 

16 and Eastern European countries to increase their energy 

17 security, including through— 

18 (1) providing diplomatic and political support to 

19 the European Commission and those governments, 

20 as necessary— 

21 (A) to facilitate international negotiations 

22 concerning cross-border infrastructure; 

23 (B) to enhance Europe’s regulatory envi24 ronment with respect to energy; and 


kjohnson on DSK79L0C42 with BILLS
6 

•S 704 RS

1 (C) to develop accessible, transparent, and 

2 competitive energy markets supplied by diverse 

3 sources, types, and routes of energy; and 

4 (2) providing support to improve European en5 ergy markets, including early-stage project support 

6 and late-stage project support for the construction 

7 or improvement of energy infrastructure, as nec8 essary— 

9 (A) to diversify the energy sources and 

10 supply routes of Central and Eastern European 

11 countries; 

12 (B) to enhance energy market integration 

13 across the region; and 

14 (C) to increase competition within energy 

15 markets. 

16 (b) PROJECT SELECTION.— 

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

18 subsection (a) shall identify energy infrastructure 

19 projects that would be appropriate for United States 

20 assistance under this section. 

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

22 for United States assistance under this section if the 

23 project is— 

24 (A) related to— 


kjohnson on DSK79L0C42 with BILLS
7 

•S 704 RS

1 (i) natural gas infrastructure, such as 

2 interconnectors, storage facilities, liquefied 

3 natural gas import facilities, or reverse 

4 flow capacity; 

5 (ii) electricity transmission infrastruc6 ture, electricity storage projects, or smart 

7 grid projects; 

8 (iii) renewable energy projects in 

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

10 (iv) the improvement, rehabilitation, 

11 or construction of natural gas, coal, or 

12 other electricity generation facilities to in13 crease the efficiency and reliability of elec14 tricity production; and 

15 (B) located in a Central or Eastern Euro16 pean country. 

17 (3) PREFERENCE.—In selecting among projects 

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

19 described in subsection (a) shall give preference to 

20 projects that— 

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

22 Central and Eastern European countries; 

23 (B) have already been identified by the 

24 European Commission as being integral for the 


kjohnson on DSK79L0C42 with BILLS
8 

•S 704 RS

1 energy security of Central and Eastern Euro2 pean countries; 

3 (C) are expected to enhance energy market 

4 integration; 

5 (D) can attract funding from the private 

6 sector, an international financial institution, the 

7 government of the country in which the project 

8 will be carried out, or the European Commis9 sion; or 

10 (E) have the potential to use United States 

11 goods and services during project implementa12 tion. 

13 (c) TYPES OF ASSISTANCE.— 

14 (1) DIPLOMATIC AND POLITICAL SUPPORT.— 

15 The Secretary of State shall provide diplomatic and 

16 political support to the European Commission and 

17 the governments of Central and Eastern European 

18 countries, as necessary, including by using the diplo19 matic and political influence and expertise of the De20 partment of State to build the capacity of those 

21 countries to resolve any impediments to the develop22 ment of projects selected under subsection (b). 

23 (2) EARLY-STAGE PROJECT SUPPORT.—The Di24 rector of the Trade and Development Agency shall 


kjohnson on DSK79L0C42 with BILLS
9 

•S 704 RS

1 provide early-stage project support with respect to 

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

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

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

5 project support shall do so with respect to projects 

6 selected under subsection (b), as necessary. 

7 (d) FUNDING.— 

8 (1) PRIVATE SECTOR INVESTMENT.—The agen9 cies described in subsection (a)— 

10 (A) are authorized to provide financing of 

11 not more than $1,000,000,000 to support pri12 vate sector investment in projects that diversify 

13 the energy sources and energy transport capa14 bilities of Central and Eastern European coun15 tries and to improve energy market integration 

16 in those countries; and 

17 (B) shall ensure that amounts from such 

18 investments are available for fiscal years 2020 

19 through 2024 for debt financing and insurance 

20 for projects under this section. 

21 (2) AUTHORIZATION OF APPROPRIATIONS FOR

22 TRADE AND DEVELOPMENT AGENCY.—There are au23 thorized to be appropriated to the Director of the 

24 Trade and Development Agency for each of fiscal 

25 years 2020 through 2024— 


kjohnson on DSK79L0C42 with BILLS
10 

•S 704 RS

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

2 this section; and 

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

4 Agency to employ additional personnel to pro5 vide such assistance. 

6 (3) COUNTERING RUSSIAN INFLUENCE FUND.— 

7 Section 254(b) of the Countering Russian Influence 

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

9 9543(b)) is amended by adding at the end the fol10 lowing: 

11 ‘‘(7) To assist United States agencies in pro12 viding assistance under section 4 of the European 

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

14 SEC. 5. PROGRESS REPORTS. 

15 Not later than one year after the date of the enact16 ment of this Act, and annually thereafter, the President 

17 shall submit to the Committee on Foreign Relations of the 

18 Senate and the Committee on Foreign Affairs of the 

19 House of Representatives a report on progress made in 

20 providing assistance for projects under section 4 that in21 cludes— 

22 (1) a description of the energy infrastructure 

23 projects the United States has identified for such as24 sistance; and 

25 (2) for each such project— 


kjohnson on DSK79L0C42 with BILLS
11 

•S 704 RS

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. 

11 SECTION 1. SHORT TITLE. 

12 This Act may be cited as the ‘‘European Energy Secu13 rity and Diversification Act of 2019’’. 

14 SEC. 2. DEFINITIONS. 

15 In this Act: 

16 (1) EARLY-STAGE PROJECT SUPPORT.—The term 

17 ‘‘early-stage project support’’ includes— 

18 (A) feasibility studies; 

19 (B) resource evaluations; 

20 (C) project appraisal and costing; 

21 (D) pilot projects; 

22 (E) commercial support, such as trade mis23 sions, reverse trade missions, technical work24 shops, international buyer programs, and interVerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\S704.RS S704

kjohnson on DSK79L0C42 with BILLS
12 

•S 704 RS

1 national partner searchers to link suppliers to 

2 projects; 

3 (F) technical assistance and other guidance 

4 to improve the local regulatory environment and 

5 market frameworks to encourage transparent 

6 competition and enhance energy security; and 

7 (G) long-term energy sector planning. 

8 (2) LATE-STAGE PROJECT SUPPORT.—The term 

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

10 insurance, and transaction advisory services. 

11 SEC. 3. STATEMENT OF POLICY. 

12 (a) SENSE OF CONGRESS.—It is the sense of Congress 

13 that the United States has economic and national security 

14 interests in assisting European and Eurasian countries 

15 achieve energy security through diversification of their en16 ergy sources and supply routes. 

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

18 United States— 

19 (1) to advance United States foreign policy and 

20 development goals by assisting European and Eur21 asian countries to reduce their dependence on energy 

22 resources from countries that use energy dependence 

23 for undue political influence, such as the Russian 

24 Federation, which has used natural gas to coerce, in25 timidate, and influence other countries; 


kjohnson on DSK79L0C42 with BILLS
13 

•S 704 RS

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

2 partners of the United States by encouraging the de3 velopment of accessible, transparent, and competitive 

4 energy markets that provide diversified sources, types, 

5 and routes of energy; 

6 (3) to encourage United States public and pri7 vate sector investment in European energy infrastruc8 ture projects to bridge the gap between energy security 

9 requirements and commercial demand in a way that 

10 is consistent with the region’s absorptive capacity; 

11 and 

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

13 energy resources, technology, and expertise to global 

14 markets in a way that benefits the energy security of 

15 allies and partners of the United States, including in 

16 Europe and Eurasia. 

17 SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE 

18 FOR ENERGY INFRASTRUCTURE PROJECTS IN 

19 EUROPE AND EURASIA. 

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

21 section 3, the Secretary of State, in consultation with the 

22 Secretary of Energy and the heads of other relevant United 

23 States agencies, shall, as appropriate, prioritize and expe24 dite the efforts of the Department of State and those agen25 cies in supporting the efforts of the European Commission 


kjohnson on DSK79L0C42 with BILLS
14 

•S 704 RS

1 and the governments of European and Eurasian countries 

2 to increase their energy security, including through— 

3 (1) providing diplomatic and political support 

4 to the European Commission and those governments, 

5 as necessary— 

6 (A) to facilitate international negotiations 

7 concerning cross-border infrastructure; 

8 (B) to enhance Europe’s regulatory environ9 ment with respect to energy; and 

10 (C) to develop accessible, transparent, and 

11 competitive energy markets supplied by diverse 

12 sources, types, and routes of energy; and 

13 (2) providing support to improve European and 

14 Eurasian energy markets, including early-stage 

15 project support and late-stage project support for the 

16 construction or improvement of energy and related 

17 infrastructure, as necessary— 

18 (A) to diversify the energy sources and sup19 ply routes of European and Eurasian countries; 

20 (B) to enhance energy market integration 

21 across the region; and 

22 (C) to increase competition within energy 

23 markets. 

24 (b) PROJECT SELECTION.— 


kjohnson on DSK79L0C42 with BILLS
15 

•S 704 RS

1 (1) IN GENERAL.—The agencies described in sub2 section (a) shall identify energy infrastructure 

3 projects that would be appropriate for United States 

4 assistance under this section. 

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

6 for United States assistance under this section if the 

7 project— 

8 (A)(i) improves electricity transmission in9 frastructure, power generation through the use of 

10 a broad power mix (including fossil fuel and re11 newable energy), or energy efficiency; or 

12 (ii) advances electricity storage projects, 

13 smart grid projects, distributed generation mod14 els, or other technological innovations, as appro15 priate; and 

16 (B) is located in a European or Eurasian 

17 country. 

18 (3) PREFERENCE.—In selecting among projects 

19 that are eligible under paragraph (2), the agencies de20 scribed in subsection (a) shall give preference to 

21 projects that— 

22 (A) link the energy systems of 2 or more 

23 European or Eurasian countries; 


kjohnson on DSK79L0C42 with BILLS
16 

•S 704 RS

1 (B) have already been identified by the Eu2 ropean Commission as being integral for the en3 ergy security of European countries; 

4 (C) are expected to enhance energy market 

5 integration; 

6 (D) can attract funding from the private 

7 sector, an international financial institution, the 

8 government of the country in which the project 

9 will be carried out, or the European Commis10 sion; or 

11 (E) have the potential to use United States 

12 goods and services during project implementa13 tion. 

14 (c) TYPES OF ASSISTANCE.— 

15 (1) DIPLOMATIC AND POLITICAL SUPPORT.—The 

16 Secretary of State shall provide diplomatic and polit17 ical support to the European Commission and the 

18 governments of European and Eurasian countries, as 

19 necessary, including by using the diplomatic and po20 litical influence and expertise of the Department of 

21 State to build the capacity of those countries to re22 solve any impediments to the development of projects 

23 selected under subsection (b). 

24 (2) EARLY-STAGE PROJECT SUPPORT.—The Di25 rector of the Trade and Development Agency shall 


kjohnson on DSK79L0C42 with BILLS
17 

•S 704 RS

1 provide early-stage project support with respect to 

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

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

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

5 project support shall do so with respect to projects se6 lected under subsection (b), as necessary. 

7 (d) FUNDING.— 

8 (1) PRIVATE SECTOR INVESTMENT.—The agen9 cies described in subsection (a)— 

10 (A) are authorized to obligate and expend 

11 not more than $1,000,000,000 to support private 

12 sector investment in projects that diversify the 

13 energy sources and energy transport capabilities 

14 of European and Eurasian countries and to im15 prove energy market integration in those coun16 tries; and 

17 (B) shall ensure that amounts from such in18 vestments are available for fiscal years 2020 

19 through 2024 for debt financing and insurance 

20 for projects under this section. 

21 (2) AUTHORIZATION OF APPROPRIATIONS FOR

22 TRADE AND DEVELOPMENT AGENCY.—There are au23 thorized to be appropriated to the Director of the 

24 Trade and Development Agency for each of fiscal 

25 years 2020 through 2024— 


kjohnson on DSK79L0C42 with BILLS
18 

•S 704 RS

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

2 this section; and 

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

4 Agency to employ additional personnel to pro5 vide such assistance. 

6 (3) COUNTERING RUSSIAN INFLUENCE FUND.— 

7 Section 254(b) of the Countering Russian Influence in 

8 Europe and Eurasia Act of 2017 (22 U.S.C. 9543(b)) 

9 is amended by adding at the end the following: 

10 ‘‘(7) To assist United States agencies in pro11 viding assistance under section 4 of the European 

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

13 (e) EXCEPTION FROM CERTAIN LIMITATION UNDER

14 BUILD ACT.— 

15 (1) IN GENERAL.—For purposes of providing 

16 support for projects under this section— 

17 (A) the United States International Devel18 opment Finance Corporation may provide sup19 port for projects in countries with upper-middle20 income economies or high-income economies (as 

21 those terms are defined by the World Bank); 

22 (B) the restriction under section 1412(c)(2) 

23 of the Better Utilization of Investments Leading 

24 to Development Act of 2018 (22 U.S.C. 

25 9612(c)(2)) shall not apply; and 


kjohnson on DSK79L0C42 with BILLS
19 

•S 704 RS

1 (C) the Corporation shall restrict the provi2 sion of such support in a country described in 

3 subparagraph (A) unless— 

4 (i) the President certifies to the appro5 priate congressional committees that such 

6 support furthers the national economic or 

7 foreign policy interests of the United States; 

8 and 

9 (ii) such support is— 

10 (I) designed to produce significant 

11 developmental outcomes or provide de12 velopmental benefits to the poorest pop13 ulation of that country; or 

14 (II) necessary to preempt or 

15 counter efforts by a strategic compet16 itor of the United States to secure sig17 nificant political or economic leverage 

18 or acquire national security-sensitive 

19 technologies or infrastructure in a 

20 country that is an ally or partner of 

21 the United States. 

22 (2) DEFINITIONS.—In this subsection, the terms 

23 ‘‘appropriate congressional committees’’ and ‘‘less de24 veloped country’’ have the meanings given those terms 

25 in section 1402 of the Better Utilization of InvestVerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6203 E:\BILLS\S704.RS S704

kjohnson on DSK79L0C42 with BILLS
20 

•S 704 RS

1 ments Leading to Development Act of 2018 (22 

2 U.S.C. 9601). 

3 SEC. 5. PROGRESS REPORTS. 

4 Not later than one year after the date of the enactment 

5 of this Act, and annually thereafter, the President shall sub6 mit to the Committee on Foreign Relations of the Senate 

7 and the Committee on Foreign Affairs of the House of Rep8 resentatives a report on progress made in providing assist9 ance for projects under section 4 that includes— 

10 (1) a description of the energy infrastructure 

11 projects the United States has identified for such as12 sistance; and 

13 (2) for each such project— 

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

15 States in the project, including in early-stage 

16 project support and late-stage project support; 

17 (B) the amount and form of any debt fi18 nancing and insurance provided by the United 

19 States Government for the project; 

20 (C) the amount and form of any early-stage 

21 project support; and 

22 (D) an update on the progress made on the 

23 project as of the date of the report. 

Amend the title so as to read: ‘‘A bill to prioritize 

the efforts of and enhance coordination among United 

States agencies to encourage European and Eurasian 


kjohnson on DSK79L0C42 with BILLS
21 

•S 704 RS

countries 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.’’. 


kjohnson on DSK79L0C42 with BILLS
Calendar No. 331 

116TH CONGRESS 

1ST SESSION S. 704 

A BILL 

To prioritize the efforts of and enhance coordinagoals, and for other purposes. United States reach its global energy security increase Europe’s energy security, and help the versify their energy sources and supply routes, countries in Central and Eastern Europe to di- tion among United States agencies to encourage 

DECEMBER 17, 2019 

Reported with an amendment and an amendment to the 

title 


kjohnson on DSK79L0C42 with BILLS