I 

110TH CONGRESS 

1ST SESSION H. R. 1886 

To prevent public financing of oil or gas field development projects, surveying 

or extraction activities, processing facilities, pipelines, or terminals, or 

other oil and gas production or distribution operations or facilities, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 17, 2007 

Mr. HINCHEY introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prevent public financing of oil or gas field development 

projects, surveying or extraction activities, processing facilities, pipelines, or terminals, or other oil and gas production or distribution operations or facilities, and for 

other purposes. 

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

3 SECTION 1. FINDINGS. 

4 The Congress finds as follows: 


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1 (1) In 2005, the oil industry recorded revenues 

2 of $1,620,000,000,000, and profits for the industry 

3 totaled almost $140,000,000,000. 

4 (2) In 2005, multilateral development institu5 tions such as those in the World Bank Group, and 

6 United States agencies such as the Export-Import 

7 Bank of the United States and the United States 

8 Overseas Private Investment Corporation, alone pro9 vided more than $3,000,000,000 in financing to the 

10 international oil and gas industry, including major 

11 oil companies. 

12 (3) Limited public resources for international 

13 finance and development assistance should support 

14 the many critical needs of developing countries, not 

15 the international oil and gas industry which has sig16 nificant access to private capital markets. 

17 (4) Providing financing to oil and gas oper18 ations overseas increases the dependence of the 

19 United States on oil and gas imported from these 

20 operations. 

21 (5) Providing financing to oil and gas oper22 ations overseas increases the dependence of the de23 veloping world on oil and gas imported from these 

24 operations. 


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1 (6) Oil and gas production in developing coun2 tries has generally not alleviated poverty, but has in3 stead been widely associated with increased levels of 

4 poverty and economic inequality. 

5 (7) Oil and gas production has often exacer6 bated poor governance, corruption and conflict in 

7 many developing countries. 

8 (8) Oil and gas production has historically led 

9 to increased levels of developing country debt due to 

10 these countries’ reliance on external debt financing 

11 to provide infrastructure for oil and gas extraction 

12 projects. 

13 (9) Emissions from combustion of oil and gas 

14 account for just over one-third of all global green15 house gas emissions. 

16 (10) While the vast majority of greenhouse gas 

17 emissions have occurred in the wealthy countries be18 longing to the Organization for Economic Coopera19 tion and Development, it will be the poorest coun20 tries, who can least afford to adapt to a changing 

21 climate, who will suffer first and worst. 

22 (11) Following a 2-year multi-stakeholder proc23 ess that evaluated the effects of international oil 

24 projects on developing country poverty, local environ25 ments, and global climate, the Extractive Industries 


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1 Review by the World Bank Group recommended an 

2 end to financing of oil projects by the World Bank 

3 Group by 2008. 

4 SEC. 2. EXPORT-IMPORT BANK. 

5 Section 2(b) of the Export-Import Bank Act of 1945 

6 (12 U.S.C. 635(b)) is amended by adding at the end the 

7 following: 

8 ‘‘(14) PROHIBITION ON FINANCING FOR OIL

9 AND GAS PROJECTS.— 

10 ‘‘(A) IN GENERAL.—The Bank may not 

11 guarantee, insure, or extend (or participate in 

12 an extension of) credit— 

13 ‘‘(i) in connection with an oil or gas 

14 project; or 

15 ‘‘(ii) to any entity that may use the 

16 guarantee, insurance, or credit to finance 

17 such a project. 

18 ‘‘(B) OIL OR GAS PROJECT DEFINED.— 

19 The term ‘oil or gas project’ means an oil or 

20 gas field development project (including sur21 veying and extraction), processing facility, pipe22 line, or terminal, or other oil or gas production 

23 or distribution operation or facility.’’. 


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1 SEC. 3. OVERSEAS PRIVATE INVESTMENT CORPORATION. 

2 Section 237 of the Foreign Assistance Act of 1961 

3 (22 U.S.C. 2197) is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(p) RESTRICTION ON INSURANCE AND FINANCE

6 FOR OIL AND GAS PROJECTS.— 

7 ‘‘(1) RESTRICTION ON INSURANCE AND FINANC8 ING OF PROJECTS DIRECTLY.—The Corporation may 

9 not issue any contract of insurance or reinsurance, 

10 or any guarantee, or enter into any agreement to 

11 provide financing, for a proposed investment that in12 volves an oil or gas project. 

13 ‘‘(2) RESTRICTION ON INSURANCE AND FINANC14 ING FOR PROJECTS INDIRECTLY.—The Corporation 

15 may not issue any contract of insurance or reinsur16 ance, or any guarantee, or enter into any agreement 

17 to provide financing to any person if such insurance, 

18 reinsurance, or financing may be used by that per19 son to insure or provide any form of financing to an 

20 oil or gas project. 

21 ‘‘(3) OIL OR GAS PROJECT DEFINED.—In this 

22 subsection, the term ‘oil or gas project’ means an oil 

23 or gas field development project (including surveying 

24 and extraction), processing facility, pipeline, or ter25 minal, or other oil or gas production or distribution 

26 operation or facility.’’. 


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1 SEC. 4. MULTILATERAL DEVELOPMENT BANKS. 

2 (a) IN GENERAL.—Title XVI of the International Fi3 nancial Institutions Act (22 U.S.C. 262p–262p–8) is 

4 amended by adding at the end the following: 

5 ‘‘SEC. 1626. OPPOSITION TO ASSISTANCE FOR OIL OR GAS 

6 PROJECTS. 

7 ‘‘(a) IN GENERAL.—The Secretary of the Treasury 

8 shall instruct the United States Executive Director at each 

9 multilateral development institution (as defined in section 

10 1701(c)(3)) to use the voice and vote of the United States 

11 to oppose the provision by the respective bank of any kind 

12 of assistance, directly or indirectly, to any oil and gas field 

13 development project, surveying or extraction activity, proc14 essing facility, pipeline, or terminal, or other oil and gas 

15 production or distribution operation or facility. 

16 ‘‘(b) ASSISTANCE DEFINED.—The term ‘assistance’ 

17 means any grant, loan, direct or indirect extension of cred18 it, technical assistance, or guarantee, or any other non19 lending support or extension financing, insurance, or rein20 surance.’’. 

21 (b) ANNUAL REPORTS TO THE CONGRESS.—Not 

22 later than June 1 of each calendar year, the Secretary 

23 of the Treasury shall submit to the Committees on Finan24 cial Services and on Appropriations of the House of Rep25 resentatives and the Committees on Foreign Relations and 

26 on Appropriations of the Senate, and make available on 


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1 the website of the Department of the Treasury, a report 

2 which identifies and describes, with respect to each multi3 lateral development institution (as defined in section 

4 1701(c)(3) of the International Financial Institutions 

5 Act), any assistance approved by the institution during the 

6 preceding fiscal year for any oil or gas project, and any 

7 other financial or other assistance, including sectoral lend8 ing, provided to the energy sector. 

9 SEC. 5. REPORT ON UNITED STATES ASSISTANCE TO SUP10 PORT THE OIL AND GAS SECTORS OF DEVEL11 OPING COUNTRIES. 

12 Not later than 180 days after the date of the enact13 ment of this Act, the Administrator of the United States 

14 Agency for International Development shall submit to 

15 Congress a report on the amount of assistance provided 

16 under chapter 1 of part I of the Foreign Assistance Act 

17 of 1961 (22 U.S.C. 2151 et seq.) to support the oil and 

18 gas sectors of developing countries for fiscal year 2007. 

19 The report shall include the name of each country that 

20 received assistance described in the preceding sentence 

21 and a description of the specific type and amount of assist22 ance provided to the country. 


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1 SEC. 6. ORGANIZATION FOR ECONOMIC COOPERATION AND 

2 DEVELOPMENT. 

3 The President shall inform the Organization for Eco4 nomic Cooperation and Development that it is the policy 

5 of the United States that the member states of the Orga6 nization should prohibit their export credit agencies from 

7 providing financing or other assistance to any oil or gas 

8 project. 

9 SEC. 7. STUDY OF ENERGY SECTOR LENDING. 

10 Not later than 180 days after the date of the enact11 ment of this Act, the Comptroller General of the United 

12 States shall submit to the Committees on Financial Serv13 ices and on Appropriations of the House of Representa14 tives and the Committees on Foreign Relations and on Ap15 propriations of the Senate a report on the financing and 

16 other assistance provided to the energy sector (including 

17 the extraction, development, and use of fossil fuels and 

18 other fuel sources) by multilateral development institu19 tions (as defined in section 1701(c)(3) of the International 

20 Financial Institutions Act), the Export-Import Bank of 

21 the United States, the Overseas Private Investment Cor22 poration, and the United States Agency for International 

23 Development. The report shall include analyses of— 

24 (1) whether the energy projects and sectors re25 ceiving financing and other assistance contribute to 

26 greenhouse gas emissions; 


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1 (2) the life cycle environmental impacts of the 

2 projects receiving the financing or other assistance; 

3 and 

4 (3) the extent to which the financing and other 

5 assistance has been used to facilitate the provision 

6 of energy to impoverished populations, including by 

7 means of renewable energy sources. 

8 SEC. 8. DEFINITIONS. 

9 In this Act: 

10 (1) ASSISTANCE.—The term ‘‘assistance’’ 

11 means any grant, loan, direct or indirect extension 

12 of credit, technical assistance, or guarantee, or any 

13 other non-lending support or extension financing, in14 surance, or reinsurance. 

15 (2) OIL OR GAS PROJECT.—The term ‘‘oil or 

16 gas project’’ means an oil or gas field development 

17 project (including surveying and extraction), proc18 essing facility, pipeline, or terminal, or other oil or 

19 gas production or distribution operation or facility. 

Æ 


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