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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5019 Introduced in Senate (IS)]

<DOC>

117th CONGRESS
  2d Session
                                S. 5019

To establish an international terrestrial carbon sequestration program 
   and provide international technical assistance for carbon market 
                  development, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2022

Mr. Menendez (for himself and Mr. Braun) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
To establish an international terrestrial carbon sequestration program 
   and provide international technical assistance for carbon market 
                  development, and for other purposes.

    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 ``America Mitigating and Achieving 
Zero-emissions Originating from Nature for the 21st Century Act'' or 
the ``AMAZON21 Act''.

SEC. 2. INTERNATIONAL TERRESTRIAL CARBON SEQUESTRATION PROGRAM.

    (a) In General.--The Secretary shall establish a program, to be 
known as the ``International Terrestrial Carbon Sequestration 
Program'', to provide results-based payments for eligible projects in 
developing countries that reduce emissions and enhance carbon 
sequestration from forests and other terrestrial ecosystems.
    (b) Goals.--In carrying out the program established pursuant to 
subsection (a), the Secretary shall work with the governments of 
developing countries and appropriate local partners in developing 
countries to identify, develop, and implement eligible projects that--
            (1) will help developing countries meet their international 
        greenhouse gas mitigation commitments; and
            (2) have the potential to contribute to cooperative 
        efforts--
                    (A) to conserve and restore forests and other 
                terrestrial ecosystems;
                    (B) to provide a counterbalance to investments from 
                countries of concern in cooperating developing 
                countries;
                    (C) to reduce illegal deforestation; and
                    (D) to mitigate and sequester carbon dioxide.
    (c) Results-Based Payments.--
            (1) In general.--An eligible project shall qualify for 
        results-based payments under the program established pursuant 
        to subsection (a) if--
                    (A) in the determination of the Secretary, the host 
                developing country or appropriate local partner will be 
                able to fulfill its obligations under any agreement 
                with respect to the funding of the eligible project 
                through the program established pursuant to subsection 
                (a), including (as applicable) with respect to--
                            (i) host country standards of governance 
                        and respect for rule of law;
                            (ii) environmental and social safeguards; 
                        and
                            (iii) potential for corruption or misuse of 
                        payments made by the Secretary;
                    (B) the eligible project is appropriately designed 
                to use results-based payments;
                    (C) the host developing country or appropriate 
                local partner, as applicable, agrees--
                            (i) to abide by transparency requirements 
                        with respect to the use of funds received under 
                        the program established pursuant to subsection 
                        (a);
                            (ii) to fulfill measuring, reporting, and 
                        verification requirements, including 
                        independent third-party verification, necessary 
                        to provide results-based payments;
                            (iii) to report publicly any data with 
                        respect to emissions reductions achieved under 
                        such program, linking such data to reporting 
                        requirements of or commitments made by a host 
                        country under relevant international 
                        agreements;
                            (iv) to count the verified emission 
                        reductions associated with the eligible project 
                        solely towards any of the relevant 
                        international commitments of the host 
                        developing country;
                            (v) to ensure that women, indigenous 
                        communities, and other local stakeholders, as 
                        applicable, are empowered and enabled to 
                        meaningfully participate in the development, 
                        implementation, and potential benefits of the 
                        eligible project; and
                            (vi) to disclose any debt the applicant may 
                        owe to any entity known to be owned or 
                        controlled by a country of concern, including 
                        loan amounts, duration, rates, and contractual 
                        provisions; and
                    (D) with respect to subparagraph (C)(vi), the host 
                developing country or appropriate local partner agrees 
                that payments may not be used to amortize any loan 
                principal owed to any entity known to be owned or 
                controlled by the country of concern.
            (2) Additional forms of qualification for results based 
        payments.--Notwithstanding paragraph (1), an eligible project 
        may qualify for results-based payments under this subsection 
        if--
                    (A) the eligible project includes a combination or 
                aggregation of existing terrestrial carbon mitigation 
                projects such that the total of such projects 
                contributes to the full national or, on an interim 
                basis, subnational territory in the host developing 
                country; or
                    (B) the eligible project is nested into the 
                accounting and reporting of an existing national or 
                sub-national terrestrial carbon mitigation program in 
                the host developing country, including with regard to 
                safeguard requirements and any transfer of credits, 
                without regard to whether the eligible project is below 
                the sub-national level or scale.
    (d) Multi-Year Agreements.--
            (1) In general.--Upon determining that an eligible project 
        qualifies for results-based payments, the Secretary is 
        authorized to enter into multi-year agreements to provide 
        results-based payments to a host developing country or 
        appropriate local partners in the host developing country, 
        including in the form of grants from the International Forestry 
        Carbon Mitigation Fund established in subsection (g), to carry 
        out such eligible project.
            (2) Prioritization.--The Secretary is encouraged to 
        consider any project for which the execution of such project 
        would directly or indirectly combat illegal deforestation or 
        counter malicious influence from countries of concern in a 
        particular developing country.
            (3) Third-party leverage of funds.--The Secretary is 
        encouraged to prioritize projects that include terms that 
        leverage funding from non-profits, businesses, other developed 
        countries, and multilateral financing and development agencies.
            (4) Partnerships with multilateral programs.--The Secretary 
        may partner with multilateral or multi-donor programs to fund 
        grants for any eligible project that qualifies for results 
        based payments under subsection (c).
            (5) Reciprocal commitment.--The Secretary shall take steps 
        to ensure that the host developing country or appropriate local 
        partners in the host developing country, as applicable, 
        reciprocates the commitments to achieving the goals described 
        in subsection (b).
            (6) Periodic reviews.--The Secretary shall periodically 
        review and evaluate the progress of eligible projects--
                    (A) to ensure that eligible projects are proceeding 
                successfully and appropriately maintained;
                    (B) to account for and adapt to externalities that 
                could prevent an eligible project from meeting its 
                objectives; and
                    (C) to assist proponents of an eligible projects in 
                planning and executing the eligible project in 
                accordance with this Act.
            (7) Termination.--An agreement under this subsection may be 
        unilaterally terminated by the Secretary if the Secretary 
        determines that--
                    (A) the host developing country or a appropriate 
                local partner is failing or has failed to uphold the 
                terms and conditions established for the eligible 
                project; or
                    (B) the eligible project is not in the national 
                interest of the United States.
            (8) Double counting of payments.--The Secretary shall take 
        such steps as may be necessary--
                    (A) to prevent the double counting of, or double 
                payment for, emissions reduction or carbon 
                sequestration results from eligible projects that also 
                may receive funds from other sources, including in 
                accordance with international guidelines and rules on 
                carbon markets; and
                    (B) to ensure that the payments and eligible 
                projects are interoperable and do not supplant or 
                compete with international transferred mitigation 
                outcomes.
    (e) Transparency.--The Secretary shall make publicly available a 
list of funds made available under the program established by 
subsection (a) and shall update on an annual basis the progress or any 
lack of progress in the implementation of the corresponding eligible 
projects and the achievement of the goals described in subsection (b).
    (f) Agency Coordination.--In carrying out the program under this 
section, the Secretary shall consult as appropriate with the heads of 
other relevant Federal departments and agencies, including--
            (1) with respect to terrestrial carbon sequestration, the 
        Secretary of Agriculture, the Secretary of the Interior, the 
        Administrator of the National Oceanic and Atmospheric 
        Administration, the Chief Forester of the Forest Service, the 
        Administrator of the United States Agency for International 
        Development, and the Administrator of the Environmental 
        Protection Agency;
            (2) with respect to project monitoring, reporting, and 
        verification, the Administrator of the National Oceanic and 
        Atmospheric Administration, the Administrator of the National 
        Aeronautics and Space Administration, the Administrator of the 
        United States Agency for International Development, the 
        Director of the United States Geological Survey, the 
        Administrator of the Environmental Protection Agency, the 
        Secretary of Agriculture, and the Chief Forester of the Forest 
        Service; and
            (3) with respect to avoiding duplicative foreign aid 
        efforts, particularly for conservation funds, the Administrator 
        of the United States Agency for International Development.
    (g) Trust Fund.--There is established in the Treasury of the United 
States a fund to be known as the ``International Terrestrial Carbon 
Sequestration Fund'', which shall consist of--
            (1) amounts appropriated pursuant to the authorization in 
        subsection (h)(1) to carry out this section; and
            (2) such gifts, bequests, or devises of property for the 
        benefit of, or in connection with carrying out this section as 
        the Secretary may accept in the form of donations by 
        individuals or entities, including private entities, non-profit 
        entities, other developed countries, and multinational 
        entities.
    (h) Authorization of Appropriations.--
            (1) Authorization.--There is authorized to be appropriated 
        to carry out this section--
                    (A) $1,125,000,000 for fiscal year 2022;
                    (B) $1,125,000,000 for fiscal year 2023;
                    (C) $1,125,000,000 for fiscal year 2024; and
                    (D) $1,125,000,000 for fiscal year 2025.
            (2) Availability.--Amounts appropriated to carry out this 
        section are authorized to remain available until expended and 
        shall be used solely for the purposes of this section.
            (3) Salaries and expenses.--Of the amounts made available 
        for any fiscal year pursuant to the authorization under 
        paragraph (1), not more than $10,000,000 is authorized to be 
        made available for the salaries and expenses of employees to 
        carry out this section.
    (i) Emissions Baseline for Eligible Projects.--
            (1) Proposals for emissions baseline.--
                    (A) In general.--To receive results-based payments 
                under this section for an eligible project qualified to 
                receive results-based payments pursuant to subsection 
                (c), a developing country or appropriate local partner 
                shall submit to the Secretary a proposal for an 
                emissions baseline that--
                            (i) is credible, transparent, accurate, and 
                        conservatively evaluates the reduction of 
                        carbon emission of an eligible project; and
                            (ii) meets the criteria established by the 
                        Secretary under paragraph (2).
                    (B) Determination by secretary.--
                            (i) In general.--After receipt of a 
                        proposal under subparagraph (A), the Secretary 
                        shall determine whether the emission baseline 
                        meets the criteria under paragraph (2).
                            (ii) Provision of results-based payments 
                        approved emissions baseline.--If the Secretary 
                        determines under clause (i) that the emissions 
                        baseline meets the criteria under paragraph 
                        (2), the Secretary may provide results-based 
                        payments for such eligible project to the 
                        developing country or appropriate local partner 
                        in accordance with this section.
                            (iii) Failure to meet criteria.--
                                    (I) In general.--If the Secretary 
                                determines under clause (i) that the 
                                emissions baseline does not meet the 
                                criteria under paragraph (2), the 
                                Secretary may negotiate with the 
                                developing country or appropriate local 
                                partner to reach an agreement on an 
                                emissions baseline for the eligible 
                                project.
                                    (II) Provision of results-based 
                                payments for agreed emissions 
                                baseline.--Once an agreement has been 
                                reached under subclause (I), the 
                                Secretary may provide results-based 
                                payments for the eligible project to 
                                the developing country or appropriate 
                                local partner in accordance with this 
                                section.
            (2) Baseline criteria.--The Secretary shall establish 
        criteria for each emissions baseline proposed, which shall 
        include requirements that the emissions baseline--
                    (A) is used to account for net emissions reductions 
                achieved from the eligible project;
                    (B) is national, or subnational on an interim 
                basis, in scope;
                    (C) is consistent with mitigation commitments, 
                targets, or actions that are appropriate for the 
                developing country with respect to deforestation or 
                loss of terrestrial ecosystems, taking into 
                consideration--
                            (i) the average annual historical emissions 
                        and removals from forests, and other 
                        terrestrial ecosystems, as applicable, during a 
                        period of at least 5 years; and
                            (ii) the use of the relevant 2006 IPCC 
                        Guidelines for National Greenhouse Gas 
                        Inventories published by the Intergovernmental 
                        Panel on Climate Change to determine applicable 
                        drivers of deforestation and land use 
                        conversion;
                    (D) establishes a trajectory that would result in 
                zero net deforestation by not later than 10 years after 
                the date on which the baseline is established;
                    (E) is updated not less frequently than once every 
                5 years to account for changing circumstances in the 
                developing country;
                    (F) includes emissions and removals from--
                            (i) remaining forest land;
                            (ii) conversions of other lands to or from 
                        forest land;
                            (iii) conversions between land-use 
                        categories other than forest land that, 
                        cumulatively with the conversions described in 
                        clause (i) amount to 90 percent of the absolute 
                        level of the total greenhouse gas emissions and 
                        removals associated with all land-use 
                        conversions; and
                            (iv) any other land-use category estimated 
                        to contribute at least 10 percent of 
                        agriculture, forestry, and other land use 
                        (AFOLU) emissions in the project area; and
                    (G) takes into consideration existing or planned 
                terrestrial carbon mitigation projects as identified in 
                subsection (c)(2) in a developing country and the 
                effect those projects might have in establishing an 
                emissions baseline for eligible projects funded under 
                this Act.

SEC. 3. TECHNICAL ASSISTANCE FOR SCALING NATURE-BASED SOLUTIONS IN 
              DEVELOPING COUNTRIES.

    (a) In General.--The Administrator of the United States Agency for 
International Development, in consultation with the Secretary, shall 
conduct a program to provide resources and technical assistance to 
developing countries and appropriate local partners to conserve, 
manage, and restore forests and other terrestrial ecosystems, to 
support nature-based carbon sequestration as a means of addressing a 
changing climate, including by providing such resources and assistance 
with respect to projects for the goals described in section 2(b). 
Projects under such program shall be directed in developing countries 
meeting each of the following criteria:
            (1) The country contains globally significant forests or 
        other terrestrial ecosystems--
                    (A) that are threatened with destruction, 
                degradation, or fragmentation; or
                    (B) where the degradation of forests or terrestrial 
                ecosystems impairs development and significantly drives 
                greenhouse gas emissions.
            (2) Legitimate land owners or customary use rights holders 
        in the developing country are permitted--
                    (A) to sell carbon credits to voluntary and carbon 
                compliance markets;
                    (B) to receive benefits from the sale of such 
                carbon credits by the government; and
                    (C) to participate in results-based payments 
                transactions.
            (3) The country has developed, or is in the process of 
        developing, comprehensive policies to monitor, report, and 
        verify the environmental, social, and financial quality and 
        integrity of any such projects, including, if applicable, 
        policies to ensure that the host country avoids double-counting 
        the resulting reductions greenhouse gas emissions.
            (4) The country presently contains large reserves of 
        forests and terrestrial ecosystems that cannot be recuperated 
        once lost.
    (b) Technical Support Prioritization.--In conducting the program 
described in subsection (a), the Administrator of the United States 
Agency for International Development shall prioritize technical support 
for and investment in the following activities:
            (1) Reducing greenhouse gas emissions from deforestation, 
        fragmentation, and forest degradation.
            (2) Enhancing greenhouse gas sequestration through carbon 
        sinks by restoring natural forests and other terrestrial and 
        ecosystems as well as building resilience.
            (3) Monitoring, reporting, and verification of the 
        environmental, social, and financial quality and integrity of 
        the project as an important component of the work.
            (4) Assisting governments, willing, legitimate land owners, 
        or willing customary use rights holders in developing projects 
        to engage in carbon markets through--
                    (A) carbon credits sold to buyers on existing 
                carbon compliance markets or voluntary carbon markets; 
                or
                    (B) projects providing results-based payments.
            (5) Developing domestic infrastructure and capacity 
        building for creating and tracking carbon credits, such as 
        registries or projects eligible for results-based payments, and 
        preparing countries to implement nature-based solution 
        initiatives.
            (6) Ensuring that women, Indigenous Communities, and other 
        local stakeholders are empowered and enabled to meaningfully 
        participate and share in the potential benefits of activities 
        funded under this section.
            (7) Ensuring the additionality of projects, programs, and 
        other activities made possible by funding provided pursuant to 
        this section.
    (c) Authorization.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Additionality.--The term ``additionality'' means 
        reductions to greenhouse gas emissions in developing countries 
        that would not have occurred but for activities to reduce 
        greenhouse gas emissions in developing countries funded and 
        made possible by funding provided pursuant to section 3.
            (2) Appropriate local partner.--The term ``appropriate 
        local partner'' means any relevant subnational government, 
        local authority, indigenous community, non-governmental entity, 
        or private landowner in a developing country committed to and 
        capable of achieving the goals described in section 2(b).
            (3) Country of concern.--The term ``country of concern'' 
        means the government or ruling party of any of the following 
        countries:
                    (A) The Russian Federation.
                    (B) The People's Republic of China.
                    (C) The Democratic People's Republic of Korea.
                    (D) The Islamic Republic of Iran.
                    (E) The Bolivarian Republic of Venezuela.
                    (F) The Republic of Cuba.
            (4) Deforestation.--The term ``deforestation'' means a 
        change in land use, including forest fragmentation and forest 
        degradation, from a forest to any other land use.
            (5) Developing country.--The term ``developing country'' 
        means--
                    (A) a country eligible to receive official 
                development assistance according to the income 
                guidelines of the Development Assistance Committee of 
                the Organisation for Economic Co-operation and 
                Development; or
                    (B) any other country identified by the Secretary 
                with globally significant forests or terrestrial 
                ecosystems the loss of which is, or has the potential 
                to, significantly contribute to the changing climate.
            (6) Eligible project.-- The term ``eligible project'' means 
        a verifiable and measurable national or subnational activity 
        developed or executed by the central government, subnational 
        government, local authority, indigenous community, non-
        governmental entity, private landowner, or any group of such 
        persons in a developing country that--
                    (A) reduces a quantity of greenhouse gas emissions 
                from deforestation and loss of terrestrial ecosystems 
                that is calculated by measuring actual emissions 
                against an eligible project baseline, in accordance 
                with subsection (i); or
                    (B) is directed at preserving or enhancing 
                terrestrial ecosystems that might, absent such 
                activity, be lost through conversion to other uses.
            (7) Emissions reductions.--The term ``emissions 
        reductions'' means greenhouse gas emissions reductions and 
        increased sequestration achieved from--
                    (A) reduced, or avoided deforestation;
                    (B) reforestation;
                    (C) preservation of terrestrial ecosystems; or
                    (D) enhancements to terrestrial ecosystems that 
                will result in the increased sequestration of 
                greenhouse gas emissions.
            (8) Forest degradation.--The term ``forest degradation'' 
        means any reduction in the carbon stock of a forest due to the 
        effects of human land-use activities, including land-use 
        changes driven by human activity.
            (9) International transferred mitigation outcomes.--The 
        term ``international transferred mitigation outcomes'' means 
        the units from the mechanisms that bestow carbon mitigation 
        credits for use in international carbon markets.
            (10) Nature-based solution.--The term ``nature-based 
        solution'' means an activity within a developing country to 
        conserve, restore, or better manage forests and terrestrial 
        ecosystems to sequester greenhouse gas emissions from the 
        atmosphere.
            (11) Results-based payment.--The term ``results-based 
        payment'' means a mechanism for the provision of United States 
        assistance in which--
                    (A) a developing country, or appropriate local 
                partner in a developing country, assumes responsibility 
                for achieving measurable results in the reduction of 
                emissions through an eligible project;
                    (B) such measurable results are defined in advance 
                of the obligation of assistance by the United States 
                for the eligible project; and
                    (C) such assistance is expended in the form of 
                payments to such developing country or appropriate 
                local partner only upon independent verification of 
                such pre-defined results.
            (12) Terrestrial ecosystem.--
                    (A) In general.--The term ``terrestrial ecosystem'' 
                means naturally occurring grasslands, forests, tropical 
                rainforests, mangroves, peatlands, or wetlands 
                comprised of native species generated and maintained 
                primarily through natural ecological and evolutionary 
                processes.
                    (B) Exclusion.--The term ``terrestrial ecosystem'' 
                does not include tree plantations, such as crops of 
                trees planted by humans primarily for the purposes of 
                harvesting.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of State.
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