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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1933 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1933

    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.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 4, 2015

   Mr. Corker (for himself, Mr. Cardin, Mr. Graham, Mr. Durbin, Mr. 
   Isakson, Mr. Markey, Ms. Collins, Mr. Menendez, Mr. Gardner, Mrs. 
 Shaheen, Mr. Kirk, Mr. Coons, Mr. Alexander, Mr. Murphy, Mr. Boozman, 
Mrs. Murray, and Mr. Schumer) introduced the following bill; which was 
     read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 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.

    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 ``Electrify Africa Act of 2015''.

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.

   TITLE I--POLICIES TO IMPROVE ACCESS TO POWER IN SUB-SAHARAN AFRICA

SEC. 101. STATEMENT OF POLICY.

    It is the policy of the United States to partner, consult, and 
coordinate with the governments of sub-Saharan African countries, 
international financial institutions, and African regional economic 
communities, cooperatives, and the private sector, in a concerted 
effort to--
            (1) promote first-time access to power and power services 
        for at least 50,000,000 people in sub-Saharan Africa by 2020 in 
        both urban and rural areas;
            (2) encourage the installation of at least 20,000 
        additional megawatts of electrical power in sub-Saharan Africa 
        by 2020 using a broad mix of energy options to help reduce 
        poverty, promote sustainable development, and drive economic 
        growth;
            (3) promote reliable, affordable, and sustainable power in 
        urban areas (including small urban areas) to promote economic 
        growth and job creation;
            (4) promote policies to facilitate public-private 
        partnerships to provide electrical service to rural and 
        underserved populations;
            (5) encourage the necessary in-country reforms, including 
        facilitating public-private partnerships specifically to 
        support electricity access projects to make such expansion of 
        power access possible;
            (6) promote reforms of power production, delivery, and 
        pricing, as well as regulatory reforms and transparency, to 
        support long-term, market-based power generation and 
        distribution;
            (7) promote policies to displace kerosene lighting with 
        other technologies; and
            (8) promote an all-of-the-above energy development strategy 
        for sub-Saharan Africa that includes the use of oil, natural 
        gas, coal, hydroelectric, wind, solar, and geothermal power, 
        and other sources of energy.

SEC. 102. DEVELOPMENT OF COMPREHENSIVE, MULTIYEAR STRATEGY.

    (a) Strategy Required.--
            (1) In general.--The President shall establish a 
        comprehensive, integrated, multiyear strategy to encourage the 
        efforts of countries in sub-Saharan Africa to implement 
        national power strategies and develop an appropriate mix of 
        power solutions to provide access to sufficient reliable, 
        affordable, and sustainable power in order to reduce poverty 
        and drive economic growth and job creation consistent with the 
        policy stated in section 101.
            (2) Flexibility and responsiveness.--The President shall 
        ensure that the strategy required under paragraph (1) maintains 
        sufficient flexibility for and remains responsive to 
        technological innovation in the power sector.
    (b) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the President shall transmit to the Committee on 
Foreign Relations of the Senate and the Committee on Foreign Affairs of 
the House of Representatives a report that contains the strategy 
required under subsection (a) and includes a discussion of the 
following elements:
            (1) The objectives of the strategy and the criteria for 
        determining the success of the strategy.
            (2) A general description of efforts in sub-Saharan Africa 
        to--
                    (A) increase power production;
                    (B) strengthen electrical transmission and 
                distribution infrastructure;
                    (C) provide for regulatory reform and transparent 
                and accountable governance and oversight;
                    (D) improve the reliability of power;
                    (E) maintain the affordability of power;
                    (F) maximize the financial sustainability of the 
                power sector; and
                    (G) improve access to power.
            (3) A description of plans to support efforts of countries 
        in sub-Saharan Africa to increase access to power in urban and 
        rural areas, including a description of plans designed to 
        address commercial, industrial, and residential needs.
            (4) A description of plans to support efforts to reduce 
        waste and corruption and improve existing power generation 
        through the use of a broad power mix, including fossil fuel and 
        renewable energy, distributed generation models, energy 
        efficiency, and other technological innovations, as 
        appropriate.
            (5) An analysis of existing mechanisms for ensuring, and 
        recommendations to promote--
                    (A) commercial cost recovery;
                    (B) commercialization of electric service through 
                distribution service providers, including cooperatives, 
                to consumers;
                    (C) improvements in revenue cycle management, power 
                pricing, and fees assessed for service contracts and 
                connections;
                    (D) reductions in technical losses and commercial 
                losses; and
                    (E) access to power, including recommendations on 
                the creation of new service provider models that 
                mobilize community participation in the provision of 
                power services.
            (6) A description of the reforms being undertaken or 
        planned by countries in sub-Saharan Africa to ensure the long-
        term economic viability of power projects and to increase 
        access to power, including--
                    (A) reforms designed to allow third parties to 
                connect power generation to the grid;
                    (B) policies to ensure there is a viable and 
                independent utility regulator;
                    (C) strategies to ensure utilities become or remain 
                creditworthy;
                    (D) regulations that permit the participation of 
                independent power producers and private-public 
                partnerships;
                    (E) policies that encourage private sector and 
                cooperative investment in power generation;
                    (F) policies that ensure compensation for power 
                provided to the electrical grid by on-site producers;
                    (G) policies to unbundle power services;
                    (H) regulations to eliminate conflicts of interest 
                in the utility sector;
                    (I) efforts to develop standardized power purchase 
                agreements and other contracts to streamline project 
                development; and
                    (J) efforts to negotiate and monitor compliance 
                with power purchase agreements and other contracts 
                entered into with the private sector.
            (7) A description of plans to ensure meaningful local 
        consultation, as appropriate, in the planning, long-term 
        maintenance, and management of investments designed to increase 
        access to power in sub-Saharan Africa.
            (8) A description of the mechanisms to be established for--
                    (A) selection of partner countries for focused 
                engagement on the power sector;
                    (B) monitoring and evaluating increased access to, 
                and reliability and affordability of, power in sub-
                Saharan Africa;
                    (C) maximizing the financial sustainability of 
                power generation, transmission, and distribution in 
                sub-Saharan Africa;
                    (D) establishing metrics to demonstrate progress on 
                meeting goals relating to access to power, power 
                generation, and distribution in sub-Saharan Africa; and
                    (E) terminating unsuccessful programs.
            (9) A description of how the President intends to promote 
        trade in electrical equipment with countries in sub-Saharan 
        Africa, including a description of how the government of each 
        country receiving assistance pursuant to the strategy--
                    (A) plans to lower or eliminate import tariffs or 
                other taxes for energy and other power production and 
                distribution technologies destined for sub-Saharan 
                Africa, including equipment used to provide energy 
                access, including solar lanterns, solar home systems, 
                and micro and mini grids; and
                    (B) plans to protect the intellectual property of 
                companies designing and manufacturing products that can 
                be used to provide energy access in sub-Saharan Africa.
            (10) A description of how the President intends to 
        encourage the growth of distributed renewable energy markets in 
        sub-Saharan Africa, including off-grid lighting and power, that 
        includes--
                    (A) an analysis of the state of distributed 
                renewable energy in sub-Saharan Africa;
                    (B) a description of market barriers to the 
                deployment of distributed renewable energy technologies 
                both on- and off-grid in sub-Saharan Africa;
                    (C) an analysis of the efficacy of efforts by the 
                Overseas Private Investment Corporation and the United 
                States Agency for International Development to 
                facilitate the financing of the importation, 
                distribution, sale, leasing, or marketing of 
                distributed renewable energy technologies; and
                    (D) a description of how bolstering distributed 
                renewable energy can enhance the overall effort to 
                increase power access in sub-Saharan Africa.
            (11) A description of plans to ensure that small and medium 
        enterprises based in sub-Saharan Africa can fairly compete for 
        energy development and energy access opportunities associated 
        with this Act.
    (c) Interagency Working Group.--
            (1) In general.--The President may, as appropriate, 
        establish an Interagency Working Group to coordinate the 
        activities of relevant United States Government departments and 
        agencies involved in carrying out the strategy required under 
        this section.
            (2) Functions.--The Interagency Working Group may, among 
        other things--
                    (A) seek to coordinate the activities of the United 
                States Government departments and agencies involved in 
                implementing the strategy required under this section;
                    (B) ensure efficient and effective coordination 
                between participating departments and agencies; and
                    (C) facilitate information sharing, and coordinate 
                partnerships between the United States Government, the 
                private sector, and other development partners to 
                achieve the goals of the strategy.

SEC. 103. PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR POWER PROJECTS 
              IN SUB-SAHARAN AFRICA BY KEY UNITED STATES INSTITUTIONS.

    (a) In General.--In pursuing the policy goals described in section 
101, the Administrator of the United States Agency for International 
Development, the Director of the Trade and Development Agency, the 
Overseas Private Investment Corporation, and the Chief Executive 
Officer and Board of Directors of the Millennium Challenge Corporation 
should, as appropriate, prioritize and expedite institutional efforts 
and assistance to facilitate the involvement of such institutions in 
power projects and markets, both on- and off-grid, in sub-Saharan 
Africa and partner with other investors and local institutions in sub-
Saharan Africa, including private sector actors, to specifically 
increase access to reliable, affordable, and sustainable power in sub-
Saharan Africa, including through--
            (1) maximizing the number of people with new access to 
        power and power services;
            (2) improving and expanding the generation, transmission 
        and distribution of power;
            (3) providing reliable power to people and businesses in 
        urban and rural communities;
            (4) addressing the energy needs of people living in areas 
        where there is little or no access to a power grid and 
        developing plans to systematically increase coverage in rural 
        areas;
            (5) reducing transmission and distribution losses and 
        improving end-use efficiency and demand-side management;
            (6) reducing energy-related impediments to business 
        productivity and investment; and
            (7) building the capacity of countries in sub-Saharan 
        Africa to monitor and appropriately and transparently regulate 
        the power sector and encourage private investment in power 
        production and distribution.
    (b) Effectiveness Measurement.--In prioritizing and expediting 
institutional efforts and assistance pursuant to this section, as 
appropriate, such institutions shall use clear, accountable, and 
metric-based targets to measure the effectiveness of such guarantees 
and assistance in achieving the goals described in section 101.
    (c) Rule of Construction.--Nothing in this section may be construed 
to authorize modifying or limiting the portfolio of the institutions 
covered by subsection (a) in other developing regions.

SEC. 104. LEVERAGING INTERNATIONAL SUPPORT.

    In implementing the strategy described in section 102, 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. 105. PROGRESS REPORT.

    (a) In General.--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 a report on progress made toward 
achieving the strategy described in section 102 that includes the 
following:
            (1) A report on United States programs supporting 
        implementation of policy and legislative changes leading to 
        increased power generation and access in sub-Saharan Africa, 
        including a description of the number, type, and status of 
        policy, regulatory, and legislative changes initiated or 
        implemented as a result of programs funded or supported by the 
        United States in countries in sub-Saharan Africa to support 
        increased power generation and access after the date of the 
        enactment of this Act.
            (2) A description of power projects receiving United States 
        Government support and how such projects, including off-grid 
        efforts, are intended to achieve the strategy described in 
        section 102.
            (3) For each project described in paragraph (2)--
                    (A) a description of how the project fits into, or 
                encourages modifications of, the national energy plan 
                of the country in which the project will be carried 
                out, including encouraging regulatory reform in that 
                country;
                    (B) an estimate of the total cost of the project to 
                the consumer, the country in which the project will be 
                carried out, and other investors;
                    (C) the amount of financing provided or guaranteed 
                by the United States Government for the project;
                    (D) an estimate of United States Government 
                resources for the project, itemized by 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;
                    (E) an estimate of the number of individuals, 
                communities, businesses, schools, and health facilities 
                that have gained power connections as a result of the 
                project, with a description of how the reliability, 
                affordability, and sustainability of power has been 
                improved as of the date of the report;
                    (F) an assessment of the increase in the number of 
                people and businesses with access to power, and in the 
                operating electrical power capacity in megawatts as a 
                result of the project between the date of the enactment 
                of this Act and the date of the report;
                    (G) a description of efforts to gain meaningful 
                local consultation for projects associated with this 
                Act and any significant estimated noneconomic effects 
                of the efforts carried out pursuant to this Act; and
                    (H) a description of the participation by small and 
                medium enterprises based in sub-Saharan Africa on 
                projects associated with this Act.

           TITLE II--OVERSEAS PRIVATE INVESTMENT CORPORATION

SEC. 201. EXTENSION OF ISSUING AUTHORITY.

    Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(2)) is amended by striking ``2007'' and inserting ``2018''.

SEC. 202. EXPEDITED PROCEDURES.

    Not later than 180 days after the date of the enactment of this 
Act, the Overseas Private Investment Corporation should, as 
appropriate, simplify the application, approval, and post-approval 
processes for insurance, financing, investment, or reinsurance for 
power generation and distribution projects or subprojects in sub-
Saharan Africa for which the total support of the Corporation is less 
than $20,000,000, with consideration of the best practices established 
by the International Finance Corporation of the World Bank Group.

SEC. 203. TRANSPARENCY.

    The Overseas Private Investment Corporation should--
            (1) publish in an accessible digital format measurable 
        development effects of investments of the Corporation, 
        including appropriate quantifiable metrics to measure energy 
        access at the household, enterprise, and community levels; and
            (2) publish in an accessible digital format the amount, 
        type, location, duration, and measurable results of all 
        investments and financings of the Corporation, with links to 
        relevant reports and displays on an interactive map, where 
        appropriate.

SEC. 204. BOARD COMPOSITION.

    (a) In General.--Section 233(b) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2193(b)) is amended 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.''.
    (b) Transition Rule.--In the case of the first two individuals 
serving as Directors of the Overseas Private Investment Corporation 
whose terms expire after the date of the enactment of this Act, the 
President shall appoint as a replacement for each such individual an 
individual who is a member of a political party other than the 
political party of the individual whose term as a Director expired.

SEC. 205. ACTIVITIES IN SUB-SAHARAN AFRICA; INVESTMENT ADVISORY 
              COUNCIL.

    Section 233(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2193(e)) is amended to read as follows:
    ``(e) Activities in Sub-Saharan Africa; Investment Advisory 
Council.--
            ``(1) In general.--The Board should take prompt measures to 
        prioritize, as appropriate, the loan, guarantee, and insurance 
        programs, and financial commitments, of the Corporation in the 
        areas of power generation, distribution, and off-grid power and 
        lighting 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.
            ``(2) Recommendations.--The investment advisory council 
        described in paragraph (1) should make recommendations to the 
        Board on how the Corporation can facilitate greater support by 
        the United States for private sector investment with and in the 
        areas of power generation, distribution, and off-grid power and 
        lighting in sub-Saharan Africa.
            ``(3) Termination.--The investment advisory council 
        described in paragraph (1) shall terminate on September 30 of 
        the third fiscal year that begins after the date of the 
        enactment of the Electrify Africa Act of 2015.''.

SEC. 206. TEMPORARY AUTHORITY RELATING TO ELIGIBLE INVESTORS.

    (a) In General.--Foreign corporations, partnerships, and other 
associations that are majority owned by one or more United States 
citizens or corporations, partnerships, or other associations described 
in paragraph (2) of section 238(c) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2198(c)) shall be considered eligible investors under 
such section 238(c), during the period beginning on the date of the 
enactment of this Act and ending on the date specified in subsection 
(c), for the sole purpose of receiving assistance from the Overseas 
Private Investment Corporation for power projects in sub-Saharan 
Africa.
    (b) Cap on Assistance.--Assistance provided by the Corporation for 
a power project in sub-Saharan Africa pursuant to subsection (a) to a 
foreign corporation, partnership, or other association described in 
that subsection shall not exceed the lesser of--
            (1) the share of ownership in the foreign corporation, 
        partnership, or other association of United States citizens or 
        corporations, partnerships, or other associations described in 
        section 238(c)(2) of the Foreign Assistance Act of 1961; or
            (2) the percentage of the investment of the foreign 
        corporation, partnership, or other association described in 
        subsection (a) in the project.
    (c) Termination of Temporary Authority.--The authority under 
subsection (a) shall terminate on September 30 of the third fiscal year 
that begins after the date of the enactment of this Act.
    (d) Continued Validity of Existing Support.--Any assistance 
provided before the date specified in subsection (c) pursuant to 
subsection (a) shall remain valid on and after that date.

SEC. 207. DIRECT INVESTMENT AND LOCAL CURRENCY GUARANTIES.

    (a) In General.--The Overseas Private Investment Corporation is 
authorized, during the period beginning on the date of the enactment of 
this Act and ending on the date specified in subsection (c)--
            (1) to make loans to eligible investors under section 
        234(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2194(c)) for power projects in sub-Saharan Africa and for which 
        the total support of the Corporation does not exceed 
        $50,000,000; and
            (2) to issue local currency guarantees under section 234(h) 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2194(h)) to 
        African subsidiaries of foreign financial institutions if the 
        issuance of such guarantees directly facilitates lending for 
        power projects in sub-Saharan Africa by eligible investors.
    (b) Eligible Investor Defined.--In this section, the term 
``eligible investor'' means an eligible investor as defined in section 
238(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 2198(c)) or 
described in section 206.
    (c) Termination.--The authority under subsection (a) shall 
terminate on September 30 of the third fiscal year that begins after 
the date of the enactment of this Act.
    (d) Continued Validity of Existing Loans and Guarantees.--Any loans 
made or local currency guarantees issued pursuant to subsection (a) 
before the date specified in subsection (c) shall remain valid on and 
after that date.

SEC. 208. INSPECTOR GENERAL.

    (a) In General.--Section 8G(a) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended--
            (1) in paragraph (2), by inserting ``the Overseas Private 
        Investment Corporation,'' after ``the National Science 
        Foundation,''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (G), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (H), by inserting ``and'' after 
                the semicolon; and
                    (C) by adding at the end the following:
                    ``(I) with respect to the Overseas Private 
                Investment Corporation, such term means the Board of 
                Directors of the Overseas Private Investment 
                Corporation (established under section 233(b) of the 
                Foreign Assistance Act of 1961 (22 U.S.C. 2193(b)));''.
    (b) Conforming Amendment.--Section 239 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2199) is amended by striking subsection (e).

SEC. 209. ASSESSMENT OF AUTHORITIES.

    Not later than one year after the date of the enactment of this 
Act, the Comptroller General of the United States shall submit to 
Congress a report on the authorities of the Overseas Private Investment 
Corporation to effectively meet its statutory objectives, including as 
modified by this Act, that includes an assessment of the following:
            (1) The effectiveness of the existing authorities of the 
        Corporation in promoting investment in energy and 
        infrastructure projects.
            (2) A review of the additional authorities to be considered 
        that would improve the effectiveness of investment by the 
        Corporation in energy and infrastructure projects.
            (3) An assessment of the effect potential additional 
        authorities would have on--
                    (A) the ability of the Corporation to support 
                development projects, including infrastructure and 
                energy projects, that advance the foreign policy goals 
                of the United States;
                    (B) the risk profile of the Corporation;
                    (C) the budget of the Corporation;
                    (D) the success rate of projects, measured in terms 
                of capacity to meet development goals and financial 
                targets;
                    (E) sectors or regions in which equity investment 
                would be particularly beneficial or harmful to 
                furthering the mission of the Corporation; and
                    (F) the capability of the Corporation to meet its 
                statutory objectives, including as modified by this 
                Act, including whether granting such authority would 
                limit the effectiveness of the Corporation in meeting 
                its goals with respect to stimulating United States 
                private sector investment in such projects, including 
                investment by small- and medium-sized enterprises.
            (4) Analysis of any other financing instruments that may be 
        better suited to energy or infrastructure projects.
            (5) The competitiveness of financing provided by the 
        Corporation relative to financing provided by development 
        finance institutions of other major economies.
                                 <all>
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