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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2673 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 2673

  To ensure European, including Ukrainian, energy security, protect, 
  modernize, and rebuild European energy resources and infrastructure 
according to accepted principles of international good governance, and 
  support European efforts to reduce the reliance of allied European 
countries on imported Russian energy resources, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2023

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

_______________________________________________________________________

                                 A BILL

 
  To ensure European, including Ukrainian, energy security, protect, 
  modernize, and rebuild European energy resources and infrastructure 
according to accepted principles of international good governance, and 
  support European efforts to reduce the reliance of allied European 
countries on imported Russian energy resources, 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 ``Responding to the Energy Security 
Crisis in Ukraine and Europe (RESCUE) Act of 2023''.

SEC. 2. SENSE OF CONGRESS ON ENERGY RESOURCE IMPLICATIONS OF THE 
              RUSSIAN FEDERATION'S INVASION OF UKRAINE.

    It is the sense of Congress that the United States should support 
allies and partners' efforts to reduce dependence on imported Russian 
energy resources and enhance energy security in a manner that 
reinforces the sovereignty of these democratic countries by 
diversifying and securing their energy supplies and mobilizing domestic 
energy resource production by--
            (1) working to ban all imports of Russian energy resources 
        to the United States;
            (2) increasing the access of European partners and allies 
        to immediate energy resources necessitated by the Russian 
        Federation's invasion of Ukraine and the resulting global 
        energy crisis;
            (3) supporting Europe's development and deployment of 
        emerging and advanced energy technologies to ensure countries' 
        energy security and diversification away from Russian-
        controlled energy resources;
            (4) recognizing that the severity and cost of Russia's 
        damage to Ukraine's energy infrastructure is dynamic and 
        continues to worsen, as explained in the World Bank's second 
        Ukraine Rapid Damage and Needs Assessment for February 2022-
        February 2023, which estimates that--
                    (A) current damage and losses to Ukraine's energy 
                sector is estimated to be $27,000,000,000, which is 
                more than double the level in the fall of 2022 
                ($12,000,000,000);
                    (B) damage to power, gas, and heating 
                infrastructure and coal mining, as of February 24, 
                2023, was above $10,000,000,000 as compared to an 
                estimated $2,000,000,000 on June 1, 2022;
                    (C) the largest share of damage is in the 
                electricity production and transmission sector and is 
                estimated to be close to $6,500,000,000 in damage; and
                    (D) Ukraine's gas sector has sustained an estimated 
                $1,200,000,000 in damage, which includes damage to gas 
                distribution infrastructure, as well as damage reported 
                by the gas transmission system operator;
            (5) supporting Ukraine's efforts to rebuild and modernize 
        its energy infrastructure, according to internationally 
        accepted standards of transparency and good governance, 
        including promoting long-term energy independence from Russia 
        with reliable energy resources in line with the Government of 
        Ukraine's efforts to integrate with the energy markets and 
        principles of Europe;
            (6) supporting Ukraine's prospective membership in and 
        integration with the European Union (EU), including through 
        alignment with policies like the EU's 20/20/20 objectives and 
        through the synchronization and commercial integration of the 
        Ukrainian, Moldovan, and Baltic electric power systems with the 
        central European power system, operated by the member of the 
        European Network of Transmission System Operators for 
        Electricity (ENTSO-E);
            (7) utilizing the Development Finance Corporation, which 
        has unique capabilities to help finance, convene other 
        countries' development finance institutions, and mobilize 
        private finance in support of efforts to restore and 
        reconstruction Ukraine's energy sector and improve European 
        energy security;
            (8) condemning attacks and any other efforts by Russian 
        Federation forces, Russian Federation officials, or its proxies 
        to cut off Ukrainian electricity generation units or portions 
        of the Ukrainian electrical grid and annex these assets into 
        the Russian electrical grid system;
            (9) condemning all efforts by the Russian Federation, its 
        proxies, or other malign actors to interfere with Ukraine's 
        power networks, electricity transmission, and electricity 
        generation units, including theft, destruction, or acts of 
        sabotage of infrastructure;
            (10) providing technical assistance to Ukraine, Moldova, 
        and European allies and partners of the United States to build 
        resilience and incident response and recovery capacities 
        against cyberattacks on energy infrastructure;
            (11) supporting Ukrainian efforts to meet European and 
        industry standards on corporate governance, transparency in 
        contracting and procurement, and independence from political 
        pressure;
            (12) working with the International Atomic Energy Agency 
        (IAEA) to implement needed safety and security requirements;
            (13) providing support to Eastern and Central European 
        countries whose energy import, storage, and generation capacity 
        was negatively affected by the Russian Federation's invasion of 
        Ukraine, and improving the resilience and safety of nuclear 
        energy infrastructure in the region, including at Ukrainian 
        nuclear facilities;
            (14) cooperating on activities to support Eastern and 
        Central European countries affected by Russian Federation 
        forces' invasion of Ukraine, in keeping with the European 
        Commission's plan ``to make Europe independent from Russian 
        fossil fuels well before 2030'', including via measures ``to 
        respond to rising energy prices'' and efforts to ``replenish 
        gas stocks for next winter''; and
            (15) encouraging United States private sector investment 
        and public-private partnerships in the Three Seas Initiative to 
        facilitate resilient development of European energy, transport, 
        and digital sectors.

SEC. 3. SUPPORTING UKRAINE'S ENERGY SECTOR RECONSTRUCTION, SECURITY, 
              AND MODERNIZATION.

    (a) In General.--The Secretary of State, in coordination with the 
heads of relevant Federal departments and agencies, as defined in 
section 11, shall conduct activities to increase Ukrainian access to 
energy resources to meet immediate needs, reconstruct energy 
infrastructure damaged by the Russian Federation forces' attacks, and 
modernize and reconstruct Ukraine's energy sector overall in accordance 
with international standards of efficiency, transparency, and good 
governance. These efforts to assist the modernization of Ukraine's 
energy sector should begin immediately, where possible.
    (b) Purposes.--The Secretary of State, in consultation with the 
Administrator of the United States Agency for International Development 
and heads of other relevant Federal departments and agencies, shall 
provide assistance to the Government of Ukraine for the acquisition of 
energy resources and equipment to meet critical needs and prevent power 
disruption resulting from attacks, malevolent acts, or other actions 
perpetrated by the Russian Federation or its proxies.
    (c) Notification.--Congress shall be notified of any provision of 
assistance over $500,000 provided under subsection (b) not less than 14 
days prior to the date of intended obligation of funds.
    (d) Certification Requirement.--Of the funds authorized to be 
appropriated under section 10, not more than half shall be made 
available until the Secretary submits a certification to the relevant 
congressional committees that--
            (1) the Supervisory Boards of UkrEnergo, Naftogaz, and 
        Energoatom remain independent and capable of executing their 
        roles and responsibilities, free from undue political or 
        oligarchic influence;
            (2) UkrEnergo, Naftogaz, and Energoatom continue to follow 
        international best practices, including applicable IMF 
        standards and conditions, related to board selection, corporate 
        governance, anti-corruption measures, and transparent 
        accounting and procurement; and
            (3) United States assistance is not supporting grants, 
        contracts, or subcontracts to entities owned or controlled by 
        the Government of the People's Republic of China.

SEC. 4. EFFORTS TO REDUCE EUROPEAN RELIANCE ON RUSSIAN ENERGY.

    (a) Establishment.--The Secretary of State, in coordination with 
the heads of the relevant Federal departments and agencies, shall 
implement and conduct activities to reduce the reliance of qualified 
Central, Eastern, and Southeastern European countries on energy 
resources controlled or exported by Russia and diversify energy 
resources, supplies, and routes by--
            (1) supporting--
                    (A) the identification and coordination of 
                international financial products and technical 
                assistance supporting planning activities for improving 
                or restoring energy security, providing operational 
                efficiencies in energy systems, recovering energy 
                resources, or modernizing energy systems;
                    (B) the procurement of resources, materials, 
                equipment, and services that support the efforts 
                described in subparagraph (A);
                    (C) the construction of infrastructure related to 
                the production of energy, generation, transmission, and 
                distribution of electricity and powering of 
                transportation that does not rely wholly or principally 
                on Russian energy resources; and
                    (D) the reconstruction or modernization of energy-
                related infrastructure damaged or destroyed due to the 
                Russian Federation's war against Ukraine, in accordance 
                with internationally accepted norms of transparency and 
                corporate governance;
            (2) providing qualified Central, Eastern, and Southeastern 
        European countries, in accordance with subsection (b), under 
        such terms and conditions as the Secretary of State determines 
        appropriate, with awards, loans, or loan guarantees to carry 
        out projects to develop or purchase assets, resources, 
        materials, or equipment, that can reduce the reliance of those 
        countries on exported Russian energy resources; and
            (3) providing technical assistance to qualified Central, 
        Eastern, and Southeastern European countries, as defined under 
        section 11 as the Secretary of State, in coordination with the 
        heads of relevant Federal departments and agencies, determines 
        necessary to reduce those countries' reliance on Russian energy 
        resources.
    (b) Country Prioritization and Exceptions.--The Secretary of State, 
in consultation with the heads of relevant Federal departments and 
agencies, shall prioritize the provision of support, including 
financial support to qualified Central, Eastern, and Southeastern 
European countries that are determined to be vulnerable to Russian 
coercive energy practices.
    (c) Partnerships.--The Secretary of State, in coordination with the 
heads of other relevant Federal departments and agencies, may carry out 
the activities established under subsection (a), including pursuing 
blended finance opportunities and joint investment projects with other 
appropriate development finance institutions of other countries.
    (d) Authority To Enter Into Arrangements.--In carrying out the 
activities established under subsection (a), the Secretary of State, in 
coordination with the heads of the relevant Federal departments and 
agencies, may enter into one or more arrangements directly with 
qualified Central and Eastern European countries and third parties 
under such terms and conditions as the Secretary of State determines 
appropriate.
    (e) Domestic Sourcing Considerations.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary of State shall, to the maximum extent practicable, 
        prioritize support for activities described in paragraph (1), 
        (2), or (3) of subsection (a) that--
                    (A) promote manufacturing in the United States; or
                    (B) utilize resources, services, materials, or 
                equipment that is sourced in the United States.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to an activity described in paragraph (1), (2), or (3) of 
        subsection (a) if the Secretary of State certifies that the 
        activity cannot reasonably satisfy the criteria set forth in 
        subparagraphs (A) and (B) of paragraph (1) of this subsection.
    (f) Reports.--Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter for 3 years, the Secretary of 
State shall submit to the Committee on Foreign Relations and the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Foreign Affairs and the Committee on Energy and Commerce 
of the House of Representatives a report that--
            (1) identifies any resources, materials, or equipment 
        developed, produced, procured, or provided pursuant to the 
        activities described in subsection (a); and
            (2) provides an analysis of how such activities benefit 
        United States energy resource suppliers and equipment 
        manufacturers.

SEC. 5. UKRAINE AND MOLDOVA INTEGRATION INTO THE EUROPEAN POWER GRID.

    (a) Technical Assistance and Consultation.--The Administrator of 
the United States Agency for International Development, under the 
direction of the Secretary of State and in coordination with heads of 
relevant Federal agencies as described in this section, shall--
            (1) provide technical assistance and expert consultation to 
        the Government of Moldova, the Government of Ukraine, the 
        European Commission, and relevant stakeholders in support of 
        completing the integration of Moldova and Ukraine into the 
        ENTSO-E system in order to bolster the stability of Moldova and 
        Ukraine's electricity supply;
            (2) leverage available expertise to support full 
        commercialization of Moldova and Ukraine's interconnection with 
        ENTSO-E systems; and
            (3) engage with European Union counterparts in support of 
        full commercialization of Moldova and Ukraine's interconnection 
        with the ENTSO-E system.
    (b) Use of Transfer Authorities.--The Secretary of Energy shall 
take full advantage of transfer authorities to allow for maximum 
flexibility in utilizing expertise and resources within the 
Department's Offices of Electricity and Cybersecurity, Energy Security, 
and Emergency Response.
    (c) Concurrence for Activities Related to Activities for Responding 
to the Situation in Ukraine.--The Secretary of Energy shall only act 
with the concurrence of the Secretary and the Administrator when 
executing activities pursuant to title IV of the Ukraine Supplemental 
Appropriations Act, 2022 (division N of Public Law 117-103; 136 Stat. 
780) and when appropriate transfer amounts to the Department of State 
and the United States Agency for International Development to carry out 
such activities.
    (d) Sense of Congress.--It is the Sense of Congress that the 
European Union should work expeditiously to support the synchronization 
of the Baltic States' grid with ENTSO-E.

SEC. 6. INITIATIVES FOR TECHNICAL ASSISTANCE FOR GRID MODERNIZATION, 
              ENERGY EFFICIENCY, AND ENERGY STORAGE IN QUALIFIED 
              CENTRAL AND EASTERN EUROPEAN COUNTRIES.

    (a) In General.--The Secretary of State, in consultation with the 
heads of the relevant Federal departments and agencies, shall support 
new and existing initiatives, as appropriate, to provide technical 
assistance and expertise on electrical grids, energy efficiency, and 
energy storage integration into pre-existing and new power facilities 
improvements in qualified Central and Eastern European countries for 
purposes such as--
            (1) expanding and improving the reliability, flexibility, 
        and resilience of the electrical grid to reach all regions and 
        populations;
            (2) developing decentralized power grids and microgrids or 
        distributed energy resources in areas in which connection to 
        the larger electrical grid is challenging;
            (3) supporting initiatives of qualified Central, Eastern 
        and Southeastern European countries to optimally integrate 
        renewable and clean energy into their electrical grids;
            (4) enhancing the interconnectivity of electrical grids 
        across Central and Eastern Europe;
            (5) developing standards for advanced energy technologies, 
        smart buildings, and data centers;
            (6) increasing deployment of smart meters, heat pumps, and 
        other energy efficiency technologies;
            (7) increasing the energy efficiency of buildings, 
        appliances, and the industrial sector;
            (8) improving pollution controls and the efficiency of 
        district heating systems and fossil fuel electric generating 
        units;
            (9) evaluating the feasibility of retrofitting existing 
        energy production facilities with appropriate energy storage 
        technologies and encouraging and supporting the deployment of 
        energy storage retrofits when practicable; and
            (10) providing technical assistance and support for 
        planning, engineering, and deployment of energy storage systems 
        for new and existing power production facilities, including 
        promoting, to the extent practicable--
                    (A) regulatory reforms and transparency of power 
                production, delivery, and pricing to support long-term 
                market-based energy storage;
                    (B) nondiscriminatory reliable and affordable 
                energy storage projects to promote economic growth and 
                job creation;
                    (C) United States exports to support United States 
                private sector entities in contributing to energy and 
                environmental solutions around the world and promote 
                best practices regarding environmental, safety, 
                corporate governance, and cyber and physical protection 
                standards; and
                    (D) the facilitation of public-private 
                partnerships, to make inclusion of energy storage in 
                new and existing power facilities practicable.
    (b) Consultation.--In carrying out subsection (a), the Secretary of 
State, in consultation with the heads of the relevant Federal 
departments and agencies, and with the cooperation of the governments 
of qualified Central and Eastern European countries and, as 
appropriate, regional authorities in Central and Eastern European 
countries, shall coordinate with international financial institutions 
and regional economic communities, cooperatives, and the private 
sector.

SEC. 7. MITIGATING ENVIRONMENTAL HAZARDS IN UKRAINE.

    (a) Sense of Congress.--It is the sense of Congress that Russia's 
invasion of Ukraine has and will continue to contribute to significant 
environmental damage, some of which will be irreparable, and will 
threaten the health and lives of people living in Ukraine for many 
years to come. This damage includes--
            (1) contamination of a significant portion of Ukraine with 
        unexploded ordnance;
            (2) the bombing of factories and industrial complexes that 
        used or produced toxic materials; and
            (3) contamination of the Black Sea and the Azov Sea.
    (b) Establishment.--The Secretary of State, in consultation with 
the Administrator of the United States Agency for International 
Development, the Administrator of the Environmental Protection Agency, 
the Secretary of Agriculture, and the heads of other relevant Federal 
agencies, shall leverage institutional expertise to aid the Government 
of Ukraine in--
            (1) environmental remediation and restoration;
            (2) toxic chemical cleanup, including asbestos, metals, 
        radioactive waste, combustion products, debris, and weapons 
        residues;
            (3) the restoration of utility services that provide--
                    (A) municipal drinking water;
                    (B) wastewater and sewage services;
                    (C) industrial water supplies; and
                    (D) related utility infrastructure;
            (4) the restoration of forests, parks, natural and pastoral 
        landscapes, and habitats; and
            (5) remedial work to remove and neutralize toxic effects of 
        war activities on soils, ground and surface water resources, 
        and air.
    (c) Purposes.--Funds authorized for this section under section 10 
shall be used for activities of the Secretary of State, in 
consultation, as appropriate, with the United States Agency for 
International Development, to support the initial planning for 
rebuilding sustainable, inclusive, and resilient cities in Ukraine 
through--
            (1) evaluating and making assessments on the scope of 
        environmental harms from war actions;
            (2) environmental remediation;
            (3) restoration of environmental services; and
            (4) repair, recovery, and replacement of destroyed or 
        damaged utility infrastructure.
    (d) Notification.--Congress shall be notified of any provision of 
assistance over $500,000 provided under subsection (c) of this section 
not less than 14 days prior to the date of intended obligation of 
funds.

SEC. 8. SUPPORTING NUCLEAR SAFETY AND SECURITY IN UKRAINE.

    (a) Purpose.--To ensure the safety and security of Ukraine's 
nuclear power plants (NPPs), including the Zaporizhzhya Nuclear Power 
Plant (ZNPP) in southern Ukraine, and the communities proximate to 
Ukraine's 4 NPPs, prevent Russia's theft or sabotage of resources, 
technology, and energy produced by the NPPs, and facilitate the 
continued service of the NPPs to the Ukrainian power grid, the 
Secretary of State, in coordination with the Secretary of Energy, 
shall--
            (1) coordinate and support efforts to prevent Russia's--
                    (A) further sabotage of the ZNPP and other 
                Ukrainian NPPs;
                    (B) forced disconnection of the ZNPP or any other 
                Ukrainian NPPs from the Ukrainian power grid;
                    (C) theft and transport of fuel, equipment, or 
                other resources from the ZNPP or any other Ukrainian 
                NPP;
                    (D) unilateral rerouting of generated electricity 
                from the ZNPP and other Ukrainian electricity 
                generation units such as other NPPs to Russia or 
                Russian controlled territories; and
                    (E) theft of United States intellectual property 
                belonging to United States companies who have partnered 
                with Ukrainian NPPs;
            (2) support the International Atomic Energy Agency's 
        efforts to ensure the 7 indispensable pillars for ensuring 
        nuclear safety and security during armed conflict are adhered 
        to throughout Ukraine; and
            (3) provide nuclear disaster safety assistance and 
        associated personal protective equipment, including iodine, to 
        Ukrainian communities most likely to be directly impacted by a 
        potential nuclear disaster at ZNPP stemming from Russian 
        authorities' irresponsible management and military activity in 
        and around the ZNPP.

SEC. 9. OVERSIGHT AND INSPECTORS GENERAL.

    (a) Oversight by Inspectors General.--The Inspector General of the 
Department of State and the Inspector General of the United States 
Agency for International Development, through or in coordination with 
the Ukraine Oversight Interagency Working Group and any other relevant 
Inspectors General, shall conduct oversight of the activities 
authorized by this Act to ensure independent and effective oversight of 
such programs and operations through joint or individual audits, 
inspections, investigations, and evaluations, as appropriate.
    (b) Reports.--Not later than one year after the date of the 
enactment of this Act, and semiannually thereafter for 3 years, the 
Inspectors General described in subsection (a) shall submit to the 
Committee on Foreign Relations of the Senate and the Committee on 
Foreign Affairs of the House of Representatives a report describing the 
oversight activities conducted regarding the programs and assistance 
authorized by this Act. The report may be submitted as part of a report 
by the Ukraine Oversight Interagency Working Group, in conjunction with 
other reports related to Ukraine oversight.

SEC. 10. AUTHORIZED AMOUNTS.

    There is authorized to be appropriated $1,880,000,000 for the 
Secretary of State and the Administrator of the United States Agency 
for International Development to carry out the programs and functions 
of this Act, of which not less than--
            (1) $1,100,000,000 shall be authorized for activities under 
        section 3; and
            (2) $500,000,000 shall be authorized for activities under 
        section 4.

SEC. 11. DEFINITIONS.

    In this Act:
            (1) Qualified central, eastern, and southeastern european 
        partners.--The term ``qualified Central, Eastern, and 
        Southeastern European partners'' means European countries that 
        are eligible for project support pursuant to the European 
        Energy Security and Diversification Act of 2019 (title XX of 
        division P of Public Law 116-94). This definition shall not be 
        construed as imposing new requirements or restrictions pursuant 
        to the Better Utilization of Investments Leading to Development 
        Act of 2018 (division F of Public Law 115-254) on Federal 
        agencies.
            (2) Relevant federal departments and agencies.--The term 
        ``relevant Federal departments and agencies'' means--
                    (A) the Department of Energy;
                    (B) the United States Trade and Development Agency;
                    (C) the Millennium Challenge Corporation; and
                    (D) other Federal agencies as considered 
                appropriate by the Secretary or Administrator.
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