Page 39 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 262m–7

§ 262m–7. Assessment of environmental impact of

proposed multilateral development bank actions

(a) Assessment required before favorable vote on

action

(1) In general

Beginning 2 years after December 19, 1989,

the Secretary of the Treasury shall instruct

the United States Executive Director of each

multilateral development bank not to vote in

favor of any action proposed to be taken by

the respective bank which would have a significant effect on the human environment, unless for at least 120 days before the date of the

vote—

(A) an assessment analyzing the environmental impacts of the proposed action and

of alternatives to the proposed action has

been completed by the borrower or the institution, and been made available to the board

of directors of the institution; and

(B) except as provided in paragraph (2),

such assessment or a comprehensive summary of such assessment has been made

available to the multilateral development

bank, affected groups, and local nongovernmental organizations.

(2) Exceptions and reports

(A) Exceptions

The requirement of paragraph (1)(B) shall

not apply where the Secretary finds compelling reasons to believe that disclosure in any

case described in paragraph (1) would jeopardize the confidential relationship between

the borrower and the respective bank.

(B) Reports by Secretary

The Secretary shall submit a quarterly report in writing to the Committees specified

in subsection (f)(1) of this section of the findings described in subparagraph (A).

(b) Access to assessments in all member countries

The Secretary of the Treasury shall seek the

adoption of policies and procedures, through discussions and negotiations with the other member countries of the multilateral development

banks and with the management of such banks,

which result in access by governmental agencies

and interested members of the public of such

member countries, to environmental assessments or documentary information containing

comprehensive summaries of such assessments

which discuss the environmental impact of prospective projects and programs being considered

by such banks. Such assessments or summaries

should be made available to such governmental

agencies and interested members of the public

at least 120 days before scheduled board action,

and public participation in review of the relevant environmental information should be encouraged.

(c) Consideration of assessment

The Secretary of the Treasury shall—

(1) ensure that an environmental impact assessment or comprehensive summary of such

assessment described in subsection (a) of this

section accompanies loan proposals through

the agency review process; and

(2) take into consideration recommendations

from all other interested Federal agencies and

interested members of the public.

(d) Development of procedures for systematic environmental assessment

The Secretary of the Treasury, in consultation

with other Federal agencies, including the Environmental Protection Agency, the Department

of State, and the Council on Environmental

Quality, shall—

(1) instruct the United States Executive Director of each multilateral development bank

to initiate discussions with the other executive directors of the respective bank and to

propose that the respective bank develop and

make available to member governments of,

and borrowers from, the respective bank, within 18 months after December 19, 1989, a procedure for the systematic environmental assessment of development projects for which the respective bank provides financial assistance,

taking into consideration the Guidelines and

Principles for Environmental Impact Assessment promulgated by the United Nations Environmental Programme and other bilateral or

multilateral assessment procedures; and

(2) in determining the position of the United

States on any action proposed to be taken by

a multilateral development bank, develop and

prescribe procedures for the consideration of,

among other things—

(A) the environmental impact assessment

of the action described in subsection (a) of

this section;

(B) interagency and public review of such

assessment; and

(C) other environmental review and consultation of such action that is required by

other law.

(e) Use of United States personnel

The Secretary of the Treasury, in consultation

with the Secretary of State, the Secretary of

the Interior, the Administrator of the Environmental Protection Agency, the Chairman of the

Council on Environmental Quality, the Administrator of the Agency for International Development, and the Administrator of the National

Oceanic and Atmospheric Administration,

shall—

(1) make available to the multilateral development banks, without charge, appropriate

United States Government personnel to assist

in—

(A) training bank staff in environmental

impact assessment procedures;

(B) providing advice on environmental issues;

(C) preparing environmental studies for

projects with potentially significant environmental impacts; and

(D) preparing documents for public release,

and developing procedures to provide for the

inclusion of interested nongovernmental organizations in the environmental review

process; and

(2) encourage other member countries of

such banks to provide similar assistance.
§ 262n TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 40

(f) Reports

(1) In general

The Secretary of the Treasury shall submit

to the Committees on Foreign Relations and

Environment and Public Works of the Senate

and the Committee on Banking, Finance and

Urban Affairs of the House of Representatives—

(A) not later than the end of the 1-year period beginning on December 19, 1989, a

progress report on the efficacy of efforts by

the United States to encourage consistent

and timely environmental impact assessment of actions proposed to be taken by the

multilateral development banks and on the

progress made by the multilateral development banks in developing and instituting

environmental assessment policies and procedures; and

(B) not later than January 1, 1993, a detailed report on the matters described in

subparagraph (A).

(2) Availability of reports

The reports required by paragraph (1) shall

be made available to the member governments

of, and the borrowers from, the multilateral

development banks, and to the public.

(g) ‘‘Multilateral development bank’’ defined

For purposes of this section, the term ‘‘multilateral development bank’’ means any of the institutions named in section 262m–2(b) of this

title, and the International Finance Corporation.

(Pub. L. 95–118, title XIII, §1307, formerly §1308,

as added and renumbered §1307, Pub. L. 101–240,

title V, §§521, 541(f)(4), Dec. 19, 1989, 103 Stat.

2511, 2519; Pub. L. 105–118, title V, §560(b), Nov.

26, 1997, 111 Stat. 2426.)

AMENDMENTS

1997—Subsec. (a)(1)(A). Pub. L. 105–118, §560(b)(1), substituted ‘‘borrower’’ for ‘‘borrowing country’’.

Subsec. (a)(2)(A). Pub. L. 105–118, §560(b)(2), struck

out ‘‘country’’ after ‘‘borrower’’.

Subsec. (g). Pub. L. 105–118, §560(b)(3), added subsec.

(g).

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of

House of Representatives treated as referring to Committee on Banking and Financial Services of House of

Representatives by section 1(a) of Pub. L. 104–14, set

out as a note preceding section 21 of Title 2, The Congress.

§ 262n. Congressional findings and policies respecting agricultural and commodity production

The Congress hereby finds the following:

(1) The financing of certain programs and

projects by multilateral development banks

has been of great concern insofar as the programs and projects have been detrimental to

the interests of American farmers and the agribusiness sector.

(2) An increase in rural income in developing

countries will generally result in an increase

in exports of United States agricultural and

food products.

(Pub. L. 95–118, title XIV, §1401, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134.)

CODIFICATION

Section 1401 of Pub. L. 95–118 is based on section 701

of title VII of H.R. 3750, One Hundredth Congress, as introduced Dec. 11, 1987, and enacted into law by Pub. L.

100–202.

DEFINITIONS

The definitions in section 262p–5 of this title apply to

this section.

§ 262n–1. Increase in income and employment in

developing countries; enhancement of purchasing power; diversification away from

single crop or product economies

The Secretary of the Treasury, after consultations with the Secretary of Agriculture and the

Secretary of the Interior (to the extent appropriate) on markets and prices for commodities,

shall periodically instruct the United States Executive Director of each multilateral development bank to work with other executive directors of the respective bank to continue to—

(1) support activities which result in broad

increases in income and employment and enhance purchasing power in developing countries, particularly among the rural poor; and

(2) encourage diversification away from single crop or product economies in developing

countries to help reduce wide fluctuations in

commodity prices and the adverse impact of

abrupt changes in the terms of trade.

(Pub. L. 95–118, title XIV, §1402, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134.)

CODIFICATION

Section 1402 of Pub. L. 95–118 is based on section 701

of title VII of H.R. 3750, One Hundredth Congress, as introduced Dec. 11, 1987, and enacted into law by Pub. L.

100–202.

DEFINITIONS

The definitions in section 262p–5 of this title apply to

this section.

§ 262n–2. Financing projects for production of export commodities, products, or minerals in

surplus in world markets discouraged; instructions by Secretary of the Treasury to

United States Executive Directors

(a) The Secretary of the Treasury shall take

all appropriate steps to discourage multilateral

development banks from financing projects

which will result in the production of commodities, products, or minerals for export that will

be in surplus in world markets at the time such

production begins.

(b) The Secretary of the Treasury shall instruct the United States Executive Directors of

the multilateral development banks to use the

voice and vote of the United States in the respective banks—

(1) to oppose financing by the respective

bank of projects which produce, or will

produce, commodities, products, or minerals

for export if—

(A) the commodity, product, or mineral is

subsidized in a manner which is inconsistent

with Article XVI.3 of the General Agreement

on Tariffs and Trade or Article 10 of the

Agreement on Interpretation and Applica-