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[House Report 113-433]
[From the U.S. Government Publishing Office]

113th Congress                                            Rept. 113-433
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================

 
                      ELECTRIFY AFRICA ACT OF 2014

                                _______
                                

  May 2, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Royce, from the Committee on Foreign Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2548]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 2548) to establish a comprehensive United States 
Government policy to assist countries in sub-Saharan Africa to 
develop an appropriate mix of power solutions for more broadly 
distributed electricity access in order to support poverty 
alleviation and drive economic growth, and for other purposes, 
having considered the same, reports favorably thereon with 
amendments and recommends that the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Summary and Purpose..............................................     7
Background and Need for Legislation..............................     7
Hearings.........................................................     9
Committee Consideration..........................................    10
Committee Oversight Findings.....................................    10
New Budget Authority, Tax Expenditures, and Federal Mandates.....    10
Congressional Budget Office Cost Estimate........................    11
Directed Rule Making.............................................    14
Non-Duplication of Federal Programs..............................    14
Performance Goals and Objectives.................................    15
Congressional Accountability Act.................................    15
New Advisory Committees..........................................    15
Earmark Identification...........................................    15
Constitutional Authority Statement...............................    15
Letters of Jurisdiction..........................................    16
Section-by-Section Analysis......................................    17
Changes in Existing Law Made by the Bill, as Reported............    19

                             The Amendment

    The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Electrify Africa Act of 2014''.

SEC. 2. PURPOSE.

  The purpose of this Act is to encourage the efforts of countries in 
sub-Saharan Africa to improve access to affordable and reliable 
electricity in Africa in order to unlock the potential for economic 
growth, job creation, food security, improved health, education and 
environmental outcomes, and poverty reduction.

SEC. 3. FINDINGS.

  Congress finds that--
          (1) 589,000,000 people in sub-Saharan Africa, or 68 percent 
        of the population, did not have access to electricity, as of 
        2010;
          (2) in sub-Saharan Africa, electricity services are highly 
        unreliable and they are at least twice as expensive for those 
        with electricity access compared to other emerging markets;
          (3) lack of access to electricity services disproportionally 
        affects women and girls, who often shoulder the burden of 
        seeking sources of heat and light such as dung, wood or 
        charcoal and are often more exposed to the associated negative 
        health impacts. Women and girls also face an increased risk of 
        assault from walking long distances to gather fuel sources;
          (4) access to electricity creates opportunities, including 
        entrepreneurship, for people to work their way out of poverty;
          (5) a lack of electricity contributes to the high use of 
        inefficient and often highly polluting fuel sources for indoor 
        cooking, heating, and lighting that produce toxic fumes 
        resulting in more than 3,000,000 annual premature deaths from 
        respiratory disease, more annual deaths than from HIV/AIDS and 
        malaria in sub-Saharan Africa;
          (6) electricity access is crucial for the cold storage of 
        vaccines and anti-retroviral and other lifesaving medical 
        drugs, as well as the operation of modern lifesaving medical 
        equipment;
          (7) electricity access can be used to improve food security 
        by enabling post-harvest processing, pumping, irrigation, dry 
        grain storage, milling, refrigeration, and other uses;
          (8) reliable electricity access can provide improved lighting 
        options and information and communication technologies, 
        including Internet access and mobile phone charging, that can 
        greatly improve health, social, and education outcomes, as well 
        as economic and commercial possibilities;
          (9) sub-Saharan Africa's consumer base of nearly one billion 
        people is rapidly growing and will create increasing demand for 
        United States goods, services, and technologies, but the 
        current electricity deficit in sub-Saharan Africa limits this 
        demand by restricting economic growth on the continent;
          (10) approximately 30 African countries face endemic power 
        shortages, and nearly 70 percent of surveyed African businesses 
        cite unreliable power as a major constraint to growth;
          (11) the Millennium Challenge Corporation's work in the 
        energy sector shows high projected economic rates of return 
        that translate to sustainable economic growth and that the 
        highest returns are projected when infrastructure improvements 
        are coupled with significant legislative, regulatory, 
        institutional, and policy reforms;
          (12) in many countries, weak governance capacity, regulatory 
        bottlenecks, legal constraints, and lack of transparency and 
        accountability can stifle the ability of private investment to 
        assist in the generation and distribution of electricity; and
          (13) without new policies and more effective investments in 
        electricity sector capacity to increase and expand electricity 
        access in sub-Saharan Africa, over 70 percent of the rural 
        population, and 48 percent of the total population, will 
        potentially remain without access to electricity by 2030.

SEC. 4. STATEMENT OF POLICY.

  Congress declares that it is the policy of the United States--
          (1) in consultation with sub-Saharan African governments, to 
        encourage the private sector, international community, African 
        Regional Economic Communities, philanthropies, civil society, 
        and other governments to promote--
                  (A) the installation of at least an additional 20,000 
                megawatts of electrical power in sub-Saharan Africa by 
                2020 to support poverty reduction, promote development 
                outcomes, and drive economic growth;
                  (B) first-time direct access to electricity for at 
                least 50,000,000 people in sub-Saharan Africa by 2020 
                in both urban and rural areas;
                  (C) efficient institutional platforms with 
                accountable governance to provide electrical service to 
                rural and underserved areas; and
                  (D) the necessary in-country legislative, regulatory 
                and policy reforms to make such expansion of 
                electricity access possible; and
          (2) to encourage private sector and international support for 
        construction of hydroelectric dams in sub-Saharan Africa that--
                  (A) offer low-cost clean energy consistent with--
                          (i) the national security interests of the 
                        United States; and
                          (ii) best international practices regarding 
                        social and environmental safeguards, 
                        including--
                                  (I) engagement of local communities 
                                regarding the design, implementation, 
                                monitoring, and evaluation of such 
                                projects;
                                  (II) the consideration of energy 
                                alternatives, including distributed 
                                renewable energy; and
                                  (III) the development of appropriate 
                                mitigation measures; and
                  (B) support partner country efforts.

SEC. 5. DEVELOPMENT OF A COMPREHENSIVE, MULTIYEAR STRATEGY.

  (a) Strategy.--The President shall establish a comprehensive, 
integrated, multiyear policy, partnership, and funding strategy to 
encourage countries in sub-Saharan Africa to develop an appropriate mix 
of power solutions, including renewable energy, to provide sufficient 
electricity access to people living in rural and urban areas in order 
to alleviate poverty and drive economic growth. Such strategy shall 
maintain sufficient flexibility and remain responsive to technological 
innovation in the power sector.
  (b) Report.--
          (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the President shall transmit to the 
        appropriate congressional committees a report setting forth the 
        strategy described in subsection (a).
          (2) Report contents.--The report required by paragraph (1) 
        shall include a discussion of the elements described in 
        paragraph (3), and should include a discussion of any 
        additional elements relevant to the strategy described in 
        subsection (a).
          (3) Report elements.--The elements referred to in paragraph 
        (2) are the following:
                  (A) The general and specific objectives of the 
                strategy described in subsection (a), the criteria for 
                determining success of the strategy, a description of 
                the manner in which the strategy will support partner 
                country efforts to increase production and improve 
                access to electricity, and criteria and indicators used 
                to select partner countries for focused engagement on 
                the power sector.
                  (B) Development, by partner country governments, of 
                plans and regulations at the national, regional, and 
                local level to increase power production, strengthen 
                existing electrical transmission and distribution 
                infrastructure, bolster accountable governance and 
                oversight, and improve access to electricity.
                  (C) Administration plans to support partner country 
                efforts to increase new access to electricity, 
                including a description of how the strategy will 
                address commercial and residential needs, as well as 
                urban and rural access.
                  (D) Administration strategy to support partner 
                country efforts to reduce government waste, fraud, and 
                corruption, and improve existing power generation 
                through improvement of existing transmission and 
                distribution systems, as well as the use of a broad 
                power mix, including renewable energy, and the use of a 
                distributed generation model.
                  (E) Administration policy to support partner country 
                efforts to attract private sector investment and public 
                sector resources.
                  (F) A description of the Administration's strategy 
                for the transfer of relevant technology, skills, and 
                information to increase local participation in the 
                long-term maintenance and management of the power 
                sector to ensure investments are sustainable and 
                transparent, including details of the programs to be 
                undertaken to maximize United States contributions in 
                the areas of technical assistance and training.
                  (G) An identification of the relevant executive 
                branch agencies that will be involved in carrying out 
                the strategy, the level and distribution of resources 
                that will be dedicated on an annual basis among such 
                agencies, timely and comprehensive publication of aid 
                information and available transmission of resource data 
                consistent with Administration commitments to implement 
                the transparency measures specified in the 
                International Aid Transparency Initiative by December 
                2015, the assignment of priorities to such agencies, a 
                description of the role of each such agency, and the 
                types of programs that each such agency will undertake.
                  (H) A description of the mechanisms that will be 
                utilized by the Administration, including the 
                International Aid Transparency Initiative, to 
                coordinate the efforts of the relevant executive branch 
                agencies in carrying out the strategy to avoid 
                duplication of efforts, enhance coordination, and 
                ensure that each agency undertakes programs primarily 
                in those areas where each such agency has the greatest 
                expertise, technical capabilities, and potential for 
                success.
                  (I) A description of the mechanisms that will be 
                established by the Administration for monitoring and 
                evaluating the strategy and its implementation, 
                including procedures for learning and sharing best 
                practices among relevant executive branch agencies, as 
                well as among participating countries, and for 
                terminating unsuccessful programs.
                  (J) A description of the Administration's engagement 
                plan, consistent with international best practices, to 
                ensure local and affected communities are informed, 
                consulted, and benefit from projects encouraged by the 
                United States, as well as the environmental and social 
                impacts of the projects.
                  (K) A description of the mechanisms that will be 
                utilized to ensure greater coordination between the 
                United States and foreign governments, international 
                organizations, African regional economic communities, 
                international fora, the private sector, and civil 
                society organizations.
                  (L) A description of how United States leadership 
                will be used to enhance the overall international 
                response to prioritizing electricity access for sub-
                Saharan Africa and to strengthen coordination among 
                relevant international forums such as the Post-2015 
                Development Agenda and the G8 and G20, as well as the 
                status of efforts to support reforms that are being 
                undertaken by partner country governments.
                  (M) An outline of how the Administration intends to 
                partner with foreign governments, the international 
                community, and other public sector entities, civil 
                society groups, and the private sector to assist sub-
                Saharan African countries to conduct comprehensive 
                project feasibility studies and facilitate project 
                development.
                  (N) A description of how the Administration intends 
                to help facilitate transnational and regional power and 
                electrification projects where appropriate.

SEC. 6. USAID.

  (a) Loan Guarantees.--It is the sense of Congress that in pursuing 
the policy goals described in section 4, the Administrator of USAID 
should identify and prioritize--
          (1) loan guarantees to local sub-Saharan African financial 
        institutions that would facilitate the involvement of such 
        financial institutions in power projects in sub-Saharan Africa; 
        and
          (2) partnerships and grants for research, development, and 
        deployment of technology that would increase access to 
        electricity in sub-Saharan Africa.
  (b) Grants.--It is the sense of Congress that the Administrator of 
USAID should consider providing grants to--
          (1) support the development and implementation of national, 
        regional, and local energy and electricity policy plans;
          (2) expand distribution of electricity access to the poorest; 
        and
          (3) build a country's capacity to plan, monitor and regulate 
        the energy and electricity sector.
  (c) USAID Defined.--In this section, the term ``USAID'' means the 
United States Agency for International Development.

SEC. 7. LEVERAGING INTERNATIONAL SUPPORT.

  In pursuing the policy goals described in section 4, the President 
should direct the United States' representatives to appropriate 
international bodies to use the influence of the United States, 
consistent with the broad development goals of the United States, to 
advocate that each such body--
          (1) commit to significantly increase efforts to promote 
        investment in well-designed power sector and electrification 
        projects in sub-Saharan Africa that increase energy access, in 
        partnership with the private sector and consistent with the 
        host countries' absorptive capacity;
          (2) address energy needs of individuals and communities where 
        access to an electricity grid is impractical or cost-
        prohibitive;
          (3) enhance coordination with the private sector in sub-
        Saharan Africa to increase access to electricity;
          (4) provide technical assistance to the regulatory 
        authorities of sub-Saharan African governments to remove 
        unnecessary barriers to investment in otherwise commercially 
        viable projects; and
          (5) utilize clear, accountable, and metric-based targets to 
        measure the effectiveness of such projects.

SEC. 8. OVERSEAS PRIVATE INVESTMENT CORPORATION.

  (a) In General.--The Overseas Private Investment Corporation should--
          (1) in carrying out its programs and pursuing the policy 
        goals described in section 4, place a priority on supporting 
        investment in the electricity sector of sub-Saharan Africa, 
        including renewable energy, and implement procedures for 
        expedited review of and, where appropriate, approval of, 
        applications by eligible investors for loans, loan guarantees, 
        and insurance for such investments;
          (2) support investments in projects and partner country 
        strategies to the extent permitted by its authorities, 
        policies, and programs, that will--
                  (A) maximize the number of people with new access to 
                electricity to support economic development;
                  (B) improve the generation, transmission, and 
                distribution of electricity;
                  (C) provide reliable and low-cost electricity, 
                including renewable energy and on-grid, off-grid, and 
                multi-grid solutions, to people living in rural and 
                urban communities;
                  (D) consider energy needs of individuals where access 
                to an electricity grid is impractical or cost-
                prohibitive;
                  (E) reduce transmission and distribution losses and 
                improve end-use efficiency; and
                  (F) reduce energy-related impediments to business and 
                investment opportunity and success;
          (3) encourage locally-owned, micro, small- and medium-sized 
        enterprises and cooperative service providers to participate in 
        investment activities in sub-Saharan Africa; and
          (4) publish in an accessible digital format measurable 
        development impacts of its investments, including appropriate 
        quantifiable metrics to measure energy access at the individual 
        household, enterprise, and community level; and
          (5) publish in an accessible digital format the amount, type, 
        location, duration, and measurable results, with links to 
        relevant reports and displays on an interactive map, where 
        appropriate, of all OPIC investments and financings.
  (b) Amendments.--Title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961 is amended--
          (1) in section 233 (22 U.S.C. 2193)--
                  (A) in subsection (b), by inserting after the sixth 
                sentence the following new sentence: ``Of the eight 
                such Directors, not more than five should be of the 
                same political party.''; and
                  (B) by adding at the end the following new 
                subsection:
  ``(e) Investment Advisory Council.--The Board shall take prompt 
measures to increase the loan, guarantee, and insurance programs, and 
financial commitments, of the Corporation in sub-Saharan Africa, 
including through the use of an investment advisory council to assist 
the Board in developing and implementing policies, programs, and 
financial instruments with respect to sub-Saharan Africa. In addition, 
the investment advisory council shall make recommendations to the Board 
on how the Corporation can facilitate greater support by the United 
States for trade and investment with and in sub-Saharan Africa. The 
investment advisory council shall terminate on December 31, 2017.'';
          (2) in section 234(c) (22 U.S.C. 2194(c)), by inserting 
        ``eligible investors or'' after ``involve'';
          (3) in section 235(a)(2) (22 U.S.C. 2195), by striking 
        ``2007'' and inserting ``2017'';
          (4) in section 237(d) (22 U.S.C. 2197(d))--
                  (A) in paragraph (2), by inserting ``, systems 
                infrastructure costs,'' after ``outside the 
                Corporation''; and
                  (B) in paragraph (3), by inserting ``, systems 
                infrastructure costs,'' after ``project-specific 
                transaction costs''; and
          (5) by amending section 239(e) (22 U.S.C. 2199(e)) to read as 
        follows:
  ``(e) Inspector General.--The Board shall appoint and maintain an 
Inspector General in the Corporation, in accordance with the Inspector 
General Act of 1978 (5 U.S.C. App.).''.
  (c) Annual Consumer Satisfaction Survey and Report.--
          (1) Survey.--
                  (A) In general.--For each of calendar years 2014 
                through 2016, the Overseas Private Investment 
                Corporation shall conduct a survey of private entities 
                that sponsor or are involved in projects that are 
                insured, reinsured, guaranteed, or financed by the 
                Corporation regarding the level of satisfaction of such 
                entities with the operations and procedures of the 
                Corporation with respect to such projects.
                  (B) Priority.--The survey shall be primarily focused 
                on United States small businesses and businesses that 
                sponsor or are involved in projects with a cost of less 
                than $20,000,000 (as adjusted for inflation).
          (2) Report.--
                  (A) In general.--Not later than each of July 1, 2015, 
                July 1, 2016, and July 1, 2017, the Corporation should 
                submit to the congressional committees specified in 
                subparagraph (C) a report on the results of the survey 
                required under paragraph (1).
                  (B) Matters to be included.--The report should 
                include the Corporation's plans to revise its 
                operations and procedures based on concerns raised in 
                the results of the survey, if appropriate.
                  (C) Form.--The report shall be submitted in 
                unclassified form and shall not disclose any 
                confidential business information.
                  (D) Congressional committees specified.--The 
                congressional committees specified in this subparagraph 
                are--
                          (i) the Committee on Appropriations and the 
                        Committee on Foreign Affairs of the House of 
                        Representatives; and
                          (ii) the Committee on Appropriations and the 
                        Committee on Foreign Relations of the Senate.

SEC. 9. TRADE AND DEVELOPMENT AGENCY.

  (a) In General.--The Director of the Trade and Development Agency 
should--
          (1) promote United States private sector participation in 
        energy sector development projects in sub-Saharan Africa 
        through project preparation activities, including feasibility 
        studies at the project, sector, and national level, technical 
        assistance, pilot projects, reverse trade missions, conferences 
        and workshops; and
          (2) seek opportunities to fund project preparation activities 
        that involve increased access to electricity, including power 
        generation and trade capacity building.
  (b) Focus.--In pursuing the policy goals described in section 4, 
project preparation activities described in subsection (a) should focus 
on power generation, including renewable energy, improving the 
efficiency of transmission and distribution grids, including on-grid, 
off-grid and mini-grid solutions, and promoting energy efficiency and 
demand-side management.

SEC. 10. PROGRESS REPORT.

  Not later than three years after the date of the enactment of this 
Act, the President shall transmit to the Committee on Foreign Affairs 
of the House of Representatives and the Committee on Foreign Relations 
of the Senate, and post through appropriate digital means, a report on 
progress made toward achieving the policy goals described in section 4, 
including the following:
          (1) The number, type, and status of policy, regulatory, and 
        legislative changes implemented in partner countries to support 
        increased electricity generation and access, and strengthen 
        effective, accountable governance of the electricity sector 
        since United States engagement.
          (2) A list of power sector and electrification projects 
        United States Government instruments are supporting to achieve 
        the policy goals described in section 4, and for each such 
        project--
                  (A) a description of how each such project fits into 
                the national power plans of the partner country;
                  (B) the total cost of each such project and predicted 
                United States Government contributions, and actual 
                grants and other financing provided to such projects, 
                broken down by United States Government funding source, 
                including from the Overseas Private Investment 
                Corporation, the United States Agency for International 
                Development, the Department of the Treasury, and other 
                appropriate United States Government departments and 
                agencies;
                  (C) the predicted electrical power capacity of each 
                project upon completion, with metrics appropriate to 
                the scale of electricity access being supplied, as well 
                as total megawatts installed;
                  (D) compliance with international best practices and 
                expected environmental and social impacts from each 
                project;
                  (E) the estimated number of women, men, poor 
                communities, businesses, schools, and health facilities 
                that have gained electricity connections as a result of 
                each project at the time of such report; and
                  (F) the current operating electrical power capacity 
                in wattage of each project.
    Amend the title so as to read:
    A bill to establish a comprehensive United States 
Government policy to encourage the efforts of countries in sub-
Saharan Africa to develop an appropriate mix of power 
solutions, including renewable energy, for more broadly 
distributed electricity access in order to support poverty 
reduction, promote development outcomes, and drive economic 
growth, and for other purposes.

                          Summary and Purpose

    H.R. 2548, the Electrify Africa Act of 2014, is a response 
to the massive power shortage plaguing nearly 600 million 
people in the sub-Saharan region. Recognizing that lack of 
electricity limits economic opportunities and adversely affects 
humanitarian conditions, the Act sets out a comprehensive, 
sustainable, and market-based approach to bring people facing 
endemic power shortages in sub-Saharan Africa into the global 
economy. To achieve this purpose, the bill directs the 
President to establish a multiyear strategy to develop an 
appropriate mix of power solutions. The bill describes several 
mechanisms by which the United States can aid the efforts of 
private-sector and public-sector organizations seeking to 
expand electricity access in the region, including USAID grants 
and loan guarantees and OPIC investment prioritization. 
Finally, the bill establishes oversight mechanisms and 
reporting requirements to mitigate waste, fraud, or abuse.
    The purpose of the legislation is to provide a clear 
strategic framework that encourages the efforts of the private 
sector and countries in sub-Saharan Africa to improve access to 
affordable, reliable electricity in order to unlock the 
potential for economic growth and community well-being.

                  Background and Need for Legislation

    Nearly 600 million people in sub-Saharan Africa lack access 
to electricity. This endemic power shortage has devastating 
effects on the region, including economic stagnation, hazardous 
health conditions, and constraints on educational 
opportunities. United States government actions to encourage 
expanded electricity access will allow these nations to 
flourish and contribute to the global economy. H.R. 2548 is 
motivated by a genuine desire to address this need and is 
consistent with U.S. humanitarian, economic and national 
security interests.

Unlocking Economic Potential

    The African Growth and Opportunity Act (AGOA) provides 
African countries with liberal access to U.S. markets. Despite 
this favorable trade environment, many sub-Saharan African 
nations have been unable to meaningfully participate in the 
international economy. For example, in the first eleven months 
of 2013, Liberia exported only $3,000 worth of goods. Lack of 
electricity access is one of the most significant constraints 
on economic growth. Seventy percent of surveyed African 
businesses cite unreliable power as a major obstacle. Even 
where trade conditions are ripe, the cost of running a plant on 
a diesel generator in a nation without an energy grid is 
prohibitive.
    Lack of electricity not only prevents African nations from 
participating in the global economy as manufacturers, but also 
prevents the people of sub-Saharan Africa from taking part in 
the market as consumers. With improved access to electricity, 
United States' goods, services, and technology can reach the 
nearly one billion people in sub-Saharan Africa. Communities 
will be able to purchase and utilize modern technology, 
including Internet access and cellular telephones.
    China has already recognized this significant opportunity. 
Where the United States has left a void for economic investment 
in Africa, China has stepped in to direct nearly $2 billion 
towards energy projects on the continent, leveraging Chinese 
companies. If the United States wishes to tap into this 
potential consumer base and effectively compete, it must act. 
The Millennium Challenge Corporation's work in the energy 
sector shows high projected economic rates of return that 
translate into sustainable economic growth. With U.S.-supported 
efforts to overcome the weak governance capacity, regulatory 
bottlenecks, and legal constraints, private investment in the 
sub-African energy sector can, and will, flourish.

Allowing Communities to Flourish

    In addition to economic considerations, increased 
electricity access in sub-Saharan African countries will 
eliminate hazardous health and welfare conditions. Without 
electricity, cold storage of vaccines is almost impossible, and 
doctors are unable to utilize life-saving technology. Because 
of power shortages, women spend long days searching for wood, 
charcoal, and dung, placing themselves in danger to provide 
heat and light for their families. Men and women farm for 
sustenance, unable to safely store excess produce for trade or 
profit, and children study with light from highly-flammable 
kerosene lamps. Resultant health risks are extremely high. 
Toxic fumes from highly inefficient and polluting sources cause 
more than 3 million deaths per year in sub-Saharan Africa- more 
than HIV/AIDS and malaria combined.

Supporting a Range of Energy Solutions for Diverse Circumstances

    H.R. 2548 recognizes that there is no ``one size fits all'' 
energy solution for the countries in sub-Saharan Africa. It 
supports an appropriate mix of non-renewable and renewable 
energy options to address the dire need for electricity, while 
recognizing the potential environmental impacts of this 
technology.
    The Electrify Africa Act acknowledges that sub-Saharan 
Africa has abundant resources to fuel renewable sources of 
energy, including sunlight, wind, geothermal, and water. 
Electrify Africa declares that it is U.S. policy to support 
hydroelectric dams that offer low-cost clean energy consistent 
with U.S. national security interests and best international 
practices regarding social and environmental safeguards. The 
Committee also recognizes that non-renewable energy options 
including natural gas, oil and clean coal are readily available 
in sub-Saharan Africa.
    H.R. 2548 encourages increasing access to rural and off-
grid communities with a variety of approaches. A substantial 
proportion of the population in Sub-Saharan Africa and will 
continue to live in rural communities, which are often the last 
to benefit from large, centralized power grid systems. H.R. 
2548 recognizes that rural communities cannot be forgotten in 
the push to increase electricity access, and that mini-grid and 
off-grid technologies can be well suited for these areas.

Strategic Framework and Tools

    H.R. 2548 provides a comprehensive means to address issues 
stemming from electricity shortages. It declares that the 
United States, in consultation with sub-Saharan African 
governments, will encourage: (i) the installation of an 
additional 20,000 megawatts of electrical power in the region 
by 2020, (ii) the provision of first-time access to electricity 
for at least 50 million people by 2020, and (iii) any reforms 
necessary to facilitate these goals. Developed prior to the 
announcement of the Administration's Power Africa Initiative, 
Electrify Africa provides a framework for investment in 
Africa's energy sector that includes much needed oversight and 
transparency mechanisms. The strategic framework required 
through the Electrify Africa Act helps provide the transparency 
to the private sector and recipient countries that will allow 
them to direct their own resources to help increase energy 
access. The Electrify Africa Act lays out a plan poised to 
endure long after the Administration's Power Africa initiative 
concludes.
    Given the ability of the Overseas Private Investment 
Corporation (OPIC) to catalyze investment in sub-Saharan 
Africa's electricity sector, H.R. 2548 requires OPIC to 
prioritize such investments, while implementing numerous 
reforms. The Committee fully expects OPIC, during its limited 
three-year reauthorization, to use its range of financing tools 
to promote investment in electricity generation and 
distribution across sub-Saharan Africa in coordination with 
other implementing agencies. Reform measures imposed through 
the Electrify Africa Act include: 1) requiring that OPIC become 
more transparent and digitally post its investments, including 
their impact; 2) require that an Inspector General be appointed 
for OPIC; 3) making the Board of OPIC bipartisan for the first 
time; and 4) reactivating the investment advisory council to 
allow individuals outside of government to share insights on 
how to improve investments in sub-Saharan Africa.

                                Hearings

    During the 113th Congress, the Committee held the following 
hearings related to the content of H.R. 2548:

          July 18, 2013, Subcommittee on Africa, Global Health, 
        Global Human Rights, and International Organizations 
        hearing on ``Resources in Africa'' (Corinna Gilfillan, 
        Global Witness USA; Mohammed Amin Adam, Centre for 
        Energy Policy; Anquan Boldin, Oxfam America; Tutu 
        Alicante of EG Justice); and
          May 7, 2013, Subcommittee on Africa, Global Health, 
        Global Human Rights, and International Organizations 
        hearing on ``Increasing American Jobs through Greater 
        Exports to Africa'' (Stephen Lande, Manchester Trade; 
        Peter C. Hansen, Law Office of Peter C. Hansen, LLC; 
        Sharon T. Freeman, All American Small Business 
        Exporters Association; Barbara Keating, Computer 
        Fronteirs).

    During the 112th Congress, the Committee held the following 
hearings and briefings related to the content of H.R. 2548:

          June 20, 2012, Subcommittee on Africa, Global Health, 
        Global Human Rights, and International Organizations 
        hearing on ``The African Growth and Opportunity Act: 
        Ensuring Success (Anthony Carroll, Manchester Trade, 
        Ltd.; Paul Ryberg, African Coalition for Trade; 
        Jaswinder Bedi, African Cotton and Textile Industries 
        Federation; Stephen Hayes, The Corporate Council on 
        Africa);
          March 29, 2012, the Subcommittee on Africa, Global 
        Health, Global Human Rights, and International 
        Organizations hearing on ``Assessing China's Role and 
        Influence in Africa'' (Hon. David Shinn, Elliot School 
        of International Affairs, George Washington University; 
        Donald Y. Yamamoto, Bureau of African Affairs. U.S. 
        Dept. of State; Carolyn Bartholomew, United States-
        China Economic and Security Review Commission; J. Peter 
        Pham, Michael S. Ansari Africa Center, Atlantic 
        Council; Stephen Hayes, The Corporate Council of 
        Africa); and
          March 18, 2013, the Subcommittee on Terrorism, 
        Nonproliferation, and Trade held a briefing on the 
        Overseas Private Investment Corporation with President 
        Elizabeth Littlefield, Executive Vice President Mimi 
        Alemayehou, and Vice President and Chief Financial 
        Officer Allan Villabroza.

                        Committee Consideration

    On February 27, 2014, the Foreign Affairs Committee marked 
up the bill, H.R. 2548, pursuant to notice, in open session. An 
amendment in the nature of a substitute, offered by the 
Chairman, and a second-degree amendment from Rep. Mark Meadows 
requiring an OPIC report on customer satisfaction, were agreed 
to in separate voice votes. The bill, as amended, was agreed to 
by voice vote.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of rules of 
the House of Representatives, the Committee reports that 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of House Rule X, are 
incorporated in the descriptive portions of this report, 
particularly in the ``Background and Purpose'' and ``Section-
by-Section Analysis'' sections.

      New Budget Authority, Tax Expenditures, and Federal Mandates

    In compliance with clause 3(c)(2) of House Rule XIII and 
the Unfunded Mandates Reform Act (P.L. 104-4), the Committee 
adopts as its own the estimate of new budget authority, 
entitlement authority, tax expenditure or revenues, and Federal 
mandates contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 12, 2014.

Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2548, the 
Electrify Africa Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte, who can be reached at 226-2840.
            Sincerely,
                                      Douglas W. Elmendorf.
Enclosure

cc:
        Honorable Eliot L. Engel
        Ranking Member

H.R. 2548--Electrify Africa Act of 2014

    As ordered reported by the House Committee on Foreign 
Affairs on February 27, 2014

                                SUMMARY

    H.R. 2548 would extend through 2017 the authority of the 
Overseas Private Investment Corporation (OPIC) to provide loans 
and insurance to help U.S. companies invest and expand in 
overseas markets. It also would require the Administration to 
encourage the private sector, other nations, international 
organizations, and nonprofits to increase access to electricity 
in sub-Saharan Africa. CBO estimates that implementing the 
legislation would save $86 million over the 2014-2019 period, 
assuming appropriation actions consistent with the bill. Pay-
as-you-go procedures do not apply because enacting this 
legislation would not affect direct spending or revenues.
    H.R. 2548 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 2548 is shown in the 
following table. The costs of this legislation fall within 
budget function 150 (international affairs).

                           BASIS OF ESTIMATE

    For this estimate, CBO assumes that H.R. 2548 will be 
enacted in 2014, that the necessary amounts will be 
appropriated each year, and that outlays will follow historical 
spending patterns for the affected programs.

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                   2014     2015     2016     2017     2018     2019   2014-2019
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Reauthorizing OPIC
  Administrative Expenses                              0        2       32       41       41       10       126
    Estimated Authorization Level
    Estimated Outlays                                  0        2       27       39       40       14       122

  Positive Subsidy Costs for Loans                     0       27       28       28        0        0        83
    Estimated Authorization Level
    Estimated Outlays                                  0        1        5       13       17       16        52

  Negative Subsidies for Loans                         0      -18      -64      -80      -74      -29      -265
    Estimated Authorization Level
    Estimated Outlays                                  0      -18      -64      -80      -74      -29      -265

  Insurance Programs                                   0       -1       -2       -2        0        0        -5
    Estimated Authorization Level
    Estimated Outlays                                  0        *       -1       -2       -1       -1        -5

    Subtotal for Reauthorizing OPIC                    0       10       -6      -13      -33      -19       -61
      Estimated Authorization Level
      Estimated Outlays                                0      -15      -33      -30      -18        *       -96

Inspector General                                      *        2        2        2        2        2        10
    Estimated Authorization Level
    Estimated Outlays                                  *        1        2        2        2        2         9

Promoting Access to Electricity                        *        *        *        *        *        *         1
    Estimated Authorization Level
    Estimated Outlays                                  *        *        *        *        *        *         1

    Total Changes                                      *       12       -4      -11      -31      -17       -50
      Estimated Authorization Level
      Estimated Outlays                                *      -14      -31      -28      -16        2       -86
----------------------------------------------------------------------------------------------------------------
Note: OPIC = Overseas Private Investment Corporation; * = between -$500,000 and $500,000.

Reauthorizing OPIC

    OPIC assists U.S. companies to expand and invest overseas 
by providing direct loans, loan guarantees, and insurance. 
OPIC's authority to enter into new agreements expires at the 
end of fiscal year 2014; however, under current law, it would 
continue to operate for some years after that date to service 
its existing contracts. Section 8 would extend OPIC's authority 
to enter into new contracts through 2017.
    The bill would not authorize the appropriation of specific 
amounts. CBO assumes that appropriations would continue for 
both the administrative costs and the subsidy costs of new 
loans and guarantees as defined in the Federal Credit Reform 
Act (FCRA).\1\ Some of the loans OPIC provides yield a net 
budgetary savings under the cost formula specified in FCRA, 
which requires that the expected government cash flows be 
discounted using the rates on Treasury securities of comparable 
maturity. In recent years, OPIC has generated sufficient 
receipts through such loans with negative subsidies to more 
than offset its other costs.
---------------------------------------------------------------------------
    \1\Under the Federal Credit Reform Act of 1990, the subsidy cost of 
a direct loan or loan guarantee is the net present value of estimated 
payments by the government to cover defaults and delinquencies, 
interest subsidies, or other expenses, offset by any payments to the 
government, including origination fees, other fees, penalties, and 
recoveries on defaulted loans. The net present value does not include 
the cost of market risk. Such subsidy costs are recorded in the budget 
when the loans are disbursed.
---------------------------------------------------------------------------
    CBO estimates that implementing section 8 would yield net 
savings of $96 million over the 2015-2019 period, assuming 
appropriation actions consistent with the bill. The components 
of that estimate are discussed below.
    Administrative Expenses. Based on information from OPIC, 
CBO estimates that under current law the agency would begin 
reduce its staffing in 2015 but severance payments would keep 
administrative expenses at the current level ($63 million) in 
that year. Thus, under the bill, CBO estimates that 
reauthorizing OPIC would require additional appropriations of 
only $2 million in 2015 for administrative expenses. Over the 
2015-2017 period, CBO estimates that OPIC's total 
administrative expenses would grow by 2 percent each year. In 
2018, when its authorization would expire, CBO estimates that 
severance payments associated with staff reductions would keep 
administrative expenses at the same level as in 2017 but that 
by 2019 the additional amounts needed would begin to decline. 
Assuming appropriation of the estimated amounts, CBO estimates 
that under section 8 administrative expenses would increase by 
$122 million over the 2015-2019 period.
    Positive Subsidy Costs. CBO estimates that in 2015 OPIC 
would require appropriations of $27 million for the subsidy 
cost of new agreements (that amount is identical to the enacted 
level for 2014). Based on information from OPIC about its 
recent and projected growth, CBO estimates that over the 2015-
2017 period the subsidy appropriations that OPIC would require 
would grow by 2 percent each year. Starting in 2018, when 
OPIC's authorization to provide new loans and insurance would 
expire, it would not need a subsidy appropriation. Assuming 
appropriation of the necessary amounts, CBO estimates that 
subsidy costs under section 8 would increase by $52 million 
over the 2015-2019 period.
    Negative Subsidies. Some of OPIC's loan programs have lower 
default rates and higher fees than its other products and, 
thus, generate net collections to the government. Based on 
information from OPIC, CBO estimates that under section 8 it 
would collect an additional $18 million in 2015 and $265 
million over the 2015-2019 period.
    Insurance Programs. OPIC's insurance programs offer 
protection against political risks associated with investing 
overseas such as expropriation, political violence or civil 
strife, and currency inconvertibility. Information from OPIC 
suggests that most policies have terms of 20 years and that 
reauthorizing OPIC for three years would cause only small 
changes in net collections. CBO estimates that under section 8 
OPIC would collect an additional $5 million over the 2015-2019 
period.

Inspector General

    Section 8 also would establish an Inspector General (IG) 
for OPIC. Currently, the IG for the United States Agency for 
International Development (USAID) covers OPIC's programs. Based 
on information from OPIC, CBO estimates that the agency would 
hire one IG and three support staff and would contract out 
certain functions such as financial auditing. After including 
costs for compensation, office space, travel, and other 
expenses and adjusting for lower costs for the USAID IG, CBO 
estimates that implementing that requirement would cost about 
$9 million over the 2015-2019 period, assuming appropriation of 
the necessary amounts.

Promoting Access to Electricity

    H.R. 2548 would require the Administration to encourage the 
private sector, other nations, international organizations, and 
nonprofits to increase access to electricity in sub-Saharan 
Africa. In June 2013, the President announced a new initiative, 
dubbed ``Power Africa,'' to double access to power in sub-
Saharan Africa. Several federal entities, including OPIC, 
USAID, the United States Trade and Development Agency, the 
Millennium Challenge Corporation, and the Export-Import Bank 
are tasked with providing technical assistance, loans, 
insurance, grants, and other types of assistance to implement 
that initiative. Based on information from some of those 
entities, CBO expects that most of the bill's requirements 
relating to promoting access to electricity will be implemented 
under that initiative. CBO estimates that implementing new 
requirements, such as the development of a comprehensive 
strategy and subsequent reports to the Congress, would cost 
less than $500,000 each year and total $1 million over the 
2014-2019 period, assuming the availability of appropriated 
amounts.

                     PAY-AS-YOU-GO CONSIDERATIONS:

    None.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    H.R. 2548 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would not affect the budgets of 
state, local, or tribal governments.

                         ESTIMATE PREPARED BY:

Federal Costs: Sunita D'Monte
Impact on State, Local, and Tribal Governments: J'nell L. 
        Blanco
Impact on the Private Sector: Paige Piper/Bach

                         ESTIMATE APPROVED BY:

Theresa Gullo
Deputy Assistant Director for Budget Analysis

                          Directed Rule Making

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(k) of H.Res. 5 during the 113th Congress, the 
Committee notes that H.R. 2548 contains no directed rule-making 
provisions.

                  Non-Duplication of Federal Programs

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(j)(2) of H.Res. 5 during the 113th Congress, the 
Committee states that no provision of this bill establishes or 
reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                    Performance Goals and Objectives

    H.R. 2548 is intended to encourage efforts to expand access 
to electricity in sub-Saharan Africa. To achieve this goal, the 
Act requires the President to create a comprehensive plan in 
which the United States will work with the governments of sub-
Saharan African countries and public-sector and private-sector 
organizations. The Act declares that the United States will 
encourage achievement of three objectives: (i) the installation 
of an additional 20,000 megawatts of electrical power in the 
region by 2020, (ii) the provision of first-time access to 
electricity for at least 50 million people by 2020, and (iii) 
any reforms necessary to facilitate these goals.

                    Congressional Accountability Act

    H.R. 2548 does not apply to terms and conditions of 
employment or to access to public services or accommodations 
within the Legislative Branch.

                        New Advisory Committees

    H.R. 2548 does not establish or authorize any new advisory 
committees.

                         Earmark Identification

    H.R. 2548 contains no congressional earmarks, limited tax 
benefits, or limited tariff benefits as described in clauses 
9(e), 9(f), and 9(g) of House Rule XXI.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8 of the Constitution.

                        Letters of Jurisdiction

                              ----------                              

                              ----------                              

                      Section-by-Section Analysis

    Section 1. Short Title. The Electrify Africa Act of 2014.
    Section 2. Purpose. To improve access to affordable and 
reliable electricity in sub-Saharan Africa.
    Section 3. Findings. Almost 70% of the population in sub-
Saharan Africa (589 million people) does not have access to 
electricity. Roughly 30 African countries face endemic power 
shortages. Business leaders in the region say this lack of 
affordable and reliable power is one of the biggest constraints 
to economic growth. It also presents serious environmental and 
health risks.
    Section 4. Statement of Policy. Declares the United States, 
in consultation with sub-Saharan African governments, will 
encourage: (i) the installation of an additional 20,000 
megawatts of electrical power in the region by 2020, (ii) the 
provision of first-time access to electricity for at least 50 
million people by 2020, and (iii) any reforms necessary to 
facilitate these goals. Declares that U.S. policy encourages 
private sector and international support for the construction 
of hydroelectric dams that offer low-cost clean energy 
consistent with U.S. national security interests and best 
international practices regarding social and environmental 
safeguards.
    Section 5. Development of a Comprehensive, Multiyear 
Strategy. Requires the Administration to create a multiyear 
strategy to develop an appropriate mix of power solutions, 
including renewable energy, in order to provide access to 
electricity in sub-Saharan Africa. Requires the President, 
within 180 days of the bill's enactment, to outline this 
strategy to Congress in a report detailing, among other things: 
(i) strategy objectives, (ii) criteria for selecting partner 
countries, (iii) plans to attract public and private-sector 
investment, (iv) plans to coordinate with local governments to 
localize responsibility for long-term management and 
maintenance, (v) a list of U.S. agencies involved in 
implementation, and (vi) mechanisms for monitoring the 
strategy's implementation.
    Section 6. USAID. States that USAID should prioritize loan 
guarantees and research grants that will facilitate power 
projects in sub-Saharan Africa. Encourages USAID to consider 
providing grants to support and expand electricity access.
    Section 7. Leveraging International Support. States that 
U.S. representatives to appropriate international bodies should 
encourage those bodies to: (i) increase efforts to promote 
investment in the sub-Saharan electricity sector, (ii) 
coordinate with private sector actors for increased electricity 
access, and (iii) assist sub-Saharan African governments in 
removing regulatory barriers to investment in commercially 
viable electricity projects.
    Section 8. Overseas Private Investment Corporation. 
Requires the Overseas Private Investment Corporation (OPIC) to 
prioritize investment in the sub-Saharan electricity sector, 
and to expedite review of electricity projects in the region. 
Amends existing law to (i) require a bipartisan board, in that 
no more than five of eight Directors may be from the same 
political party, (ii) re-establish a temporary investment 
advisory council to assist OPIC in developing energy programs 
in sub-Saharan Africa, (iii) reauthorize OPIC until 2017, and 
(iv) require the appointment of an OPIC Inspector General. 
Requires OPIC to publish, in digital form, a list of 
investments and their impact at the community level. The 
Committee expects the list of investments to be comprehensive 
and not just limited to investments in electricity.
    Section 9. Trade and Development Agency. States that the 
Director of the Trade and Development Agency should promote 
private sector participation in energy sector projects in sub-
Saharan Africa, including through feasibility studies and pilot 
projects, and seek opportunities to fund projects that increase 
access to electricity.
    Section 10. Progress Report. Requires the President, within 
three years of this bill's enactment, to submit to the House 
Foreign Affairs Committee and the Senate Foreign Relations 
Committee, and post in digital form, a report detailing 
progress towards the bill's goals, along with any associated 
costs of implementation.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                     FOREIGN ASSISTANCE ACT OF 1961

           *       *       *       *       *       *       *
PART I--

           *       *       *       *       *       *       *

CHAPTER 2--OTHER PROGRAMS

           *       *       *       *       *       *       *

Title IV--Overseas Private Investment Corporation

           *       *       *       *       *       *       *

    Sec. 233. Organization and Management.--(a) * * *
    (b) Board of Directors.--All powers of the Corporation 
shall vest in and be exercised by or under the authority of its 
Board of Directors (``the Board'') which shall consist of 
fifteen Directors, including the Chairman, with eight Directors 
constituting a quorum for the transaction of business. Eight 
Directors shall be appointed by the President of the United 
States, by and with the advice and consent of the Senate, and 
shall not be officials or employees of the Government of the 
United States. At least two of the eight Directors appointed 
under the preceding sentence shall be experienced in small 
business, one in organized labor, and one in cooperatives. Each 
such Director shall be appointed for a term of no more than 
three years. The terms of no more than three such Directors 
shall expire in any one year. Such Directors shall serve until 
their successors are appointed and qualified and may be 
reappointed. Of the eight such Directors, not more than five 
should be of the same political party.
    The other Directors shall be principal officers of the 
Government of the United States whose duties relate to the 
programs of the Corporation, including the President of the 
Corporation, the Administrator of the Agency for International 
Development, the United States Trade Representative, and one 
such officer of the Department of Labor, designated by and 
serving at the pleasure of the President of the United States. 
The United States Trade Representative may designate a Deputy 
United States Trade Representative to serve on the Board in 
place of the United States Trade Representative.
    There shall be a Chairman and a Vice Chairman of the Board, 
both of whom shall be designated by the President of the United 
States from among the Directors of the Board other than those 
appointed under the second sentence of the first paragraph of 
this subsection.
    All Directors who are not officers of the Corporation or 
officials of the Government of the United States shall be 
compensated at a rate equivalent to that of level IV of the 
Executive Schedule (5 U.S.C. 5315) when actually engaged in the 
business of the Corporation and may be paid per diem in lieu of 
subsistence at the applicable rate prescribed in the 
standardized Government travel regulations, as amended, from 
time to time, while away from their homes or usual places of 
business.

           *       *       *       *       *       *       *

    (e) Investment Advisory Council.--The Board shall take 
prompt measures to increase the loan, guarantee, and insurance 
programs, and financial commitments, of the Corporation in sub-
Saharan Africa, including through the use of an investment 
advisory council to assist the Board in developing and 
implementing policies, programs, and financial instruments with 
respect to sub-Saharan Africa. In addition, the investment 
advisory council shall make recommendations to the Board on how 
the Corporation can facilitate greater support by the United 
States for trade and investment with and in sub-Saharan Africa. 
The investment advisory council shall terminate on December 31, 
2017.
    Sec. 234. Investment Insurance and Other Programs.--The 
Corporation is hereby authorized to do the following:
    (a) * * *

           *       *       *       *       *       *       *

    (c) Direct Investment.--To make loans in United States 
dollars repayable in dollars or loans in foreign currencies 
(including, without regard to section 1415 of the Supplemental 
Appropriation Act, 1953, such foreign currencies which the 
Secretary of the Treasury may determine to be excess to the 
normal requirements of the United States and the Director of 
the Bureau of the Budget may allocate) to firms privately owned 
or of mixed private and public ownership upon such terms and 
conditions as the Corporation may determine. Loans may be made 
under this subsection only for projects that are sponsored by 
or significantly involve eligible investors or United States 
small business or cooperatives.
    The Corporation may designate up to 25 percent of any loan 
under this subsection for use in the development or adaptation 
in the United States of new technologies or new products or 
services that are to be used in the project for which the loan 
is made and are likely to contribute to the economic or social 
development of less developed countries.
    No loan may be made under this subsection to finance any 
operation for the extraction of oil or gas. The aggregate 
amount of loans under this subsection to finance operations for 
the mining or other extraction of any deposit of ore or other 
nonfuel minerals may not in any fiscal year exceed $4,000,000.

           *       *       *       *       *       *       *

    Sec. 235. Issuing Authority, Direct Investment Authority 
and Reserves.--
    (a) Issuing Authority.--
            (1) * * *
            (2) Termination of authority.--The authority of 
        subsections (a), (b), and (c) of section 234 shall 
        continue until September 30, [2007] 2017.

           *       *       *       *       *       *       *

    Sec. 237. General Provisions Relating to Insurance 
Guaranty, and Financing Program.--(a) * * *

           *       *       *       *       *       *       *

    (d) Fees.--
            (1) * * *
            (2) Credit transaction costs.--Project-specific 
        transaction costs incurred by the Corporation relating 
        to loan obligations or loan guarantee commitments 
        covered by the provisions of the Federal Credit Reform 
        Act of 1990, including the costs of project-related 
        travel and expenses for legal representation provided 
        by persons outside the Corporation, systems 
        infrastructure costs, and other similar expenses which 
        are charged to the borrower, shall be paid out of the 
        appropriate finance account established pursuant to 
        section 505(b) of such Act.
            (3) Noncredit transaction costs.--Fees paid for the 
        project-specific transaction costs, systems 
        infrastructure costs, and other direct costs associated 
        with services provided to specific investors or 
        potential investors pursuant to section 234 (other than 
        those covered in paragraph (2)), including financing, 
        insurance, reinsurance, missions, seminars, 
        conferences, and other preinvestment services, shall be 
        available for obligation for the purposes for which 
        they were collected, notwithstanding any other 
        provision of law.

           *       *       *       *       *       *       *

    Sec. 239. General Provisions and Powers.--(a) * * *

           *       *       *       *       *       *       *

    [(e) The Inspector General of the Agency for International 
Development (1) may conduct reviews, investigations, and 
inspections of all phases of the Corporation's operations and 
activities and (2) shall conduct all security activities of the 
Corporation relating to personnel and the control of classified 
material. With respect to his responsibilities under this 
subsection, the Inspector General shall report to the Board. 
The agency primarily responsible for administering part I shall 
be reimbursed by the Corporation for all expenses incurred by 
the Inspector General in connection with his responsibilities 
under this subsection.]
    (e) Inspector General.--The Board shall appoint and 
maintain an Inspector General in the Corporation, in accordance 
with the Inspector General Act of 1978 (5 U.S.C. App.).

           *       *       *       *       *       *       *

                                  
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