II 

117TH CONGRESS 

1ST SESSION S. 2845 

To provide support for energy infrastructure projects in the Indo-Pacific 

region, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 23, 2021 

Mr. SULLIVAN introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL 

To provide support for energy infrastructure projects in the 

Indo-Pacific region, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Indo-Pacific Strategic 

5 Energy Initiative Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 

8 (1) The United States currently has an approxi9 mately 100-year supply of natural gas. 


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1 (2) Natural gas will see increasing global de2 mand and use beyond 2050. 

3 (3) United States natural gas production in4 creased by 54 percent from 2005 to 2017. At the 

5 same time, total United States carbon dioxide emis6 sions decreased by 14 percent. The natural gas 

7 share of electricity production increased from 19 

8 percent in 2005 to 32 percent in 2017. 

9 (4) Between 2005 and 2019, carbon dioxide 

10 emissions from the United States power sector de11 clined by 33 percent, with fuel switching to natural 

12 gas, accounting for more than half of those reduc13 tions. During that period, the United States econ14 omy grew by 20 percent, United States energy con15 sumption fell by 2 percent, and per capita emissions 

16 dropped to their lowest levels since 1950. 

17 (5) Between 1990 and 2018, the natural gas 

18 and oil industry reduced methane emissions by 23.6 

19 percent through voluntary actions, while expanding 

20 production by 70 percent. 

21 (6) Demand in the United States and globally 

22 for clean-burning natural gas and liquefied natural 

23 gas will continue to increase over the next several 

24 decades, even as renewable energy resources in25 crease. 


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1 (7) Demand for natural gas is rising in the 

2 Indo-Pacific region, particularly as countries look to 

3 make emissions cuts and transition from higher 

4 emissions fuel sources. 

5 (8) The expanding number of infrastructure 

6 projects in the Indo-Pacific region, carried out under 

7 the Belt and Road Initiative, is leading to higher 

8 emissions in the region. 

9 (9) According to the International Energy 

10 Agency, ‘‘The number of countries and territories 

11 with [liquefied natural gas] import terminals has 

12 grown from nine in 2000 to 42 in 2020.’’. Further, 

13 the International Energy Agency has found that 

14 ‘‘transition[s] in Asian gas markets [are] even more 

15 important in the wider context of global clean energy 

16 transitions, where natural gas will be required to 

17 make a more flexible contribution as the share of 

18 variable renewable energy sources grows and coal 

19 use progressively declines’’. 

20 (10) The United States saw a 66.3-percent in21 crease in liquefied natural gas exports and an 11.2- 

22 percent increase in oil production in 2019. 

23 (11) As a result of the natural gas revolution, 

24 the United States petroleum trade deficit in dollars 


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1 fell from about $320,000,000,000 in 2007 to about 

2 $3,000,000,000 in 2020, as net imports declined. 

3 (12) Australia and the United States are both 

4 important global energy exporters and thus have a 

5 shared interest in supplying the growing energy de6 mand in the Indo-Pacific region. 

7 (13) Japanese companies have long invested in 

8 United States liquefied natural gas projects, includ9 ing the Government of Japan shifting from relying 

10 on liquefied natural gas from the Middle East to liq11 uefied natural gas from the United States. 

12 (14) The People’s Republic of China currently 

13 is one of the largest financiers of overseas energy 

14 and greenhouse gas intensive projects. The People’s 

15 Republic of China also uses those investments to 

16 project its influence and secure critical minerals sup17 ply chains and infrastructure. 

18 SEC. 3. SENSE OF CONGRESS. 

19 It is the sense of Congress that— 

20 (1) the United States reaffirms its commitment 

21 to quadrilateral cooperation with Japan, India, and 

22 Australia (collectively, with the United States, 

23 known as the ‘‘Quad’’), and that United States 

24 should continue to pursue strengthening cooperation 


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1 in the energy sector in light of the global threats 

2 and challenges facing all 4 countries; 

3 (2) the Association of Southeast Asian Nations 

4 (commonly referred to as ‘‘ASEAN’’) and its 10 

5 members (Brunei, Cambodia, Indonesia, Laos, Ma6 laysia, Myanmar, the Philippines, Singapore, Thai7 land, and Vietnam) have worked with the United 

8 States toward stability, prosperity, and peace in 

9 Southeast Asia, and ASEAN will continue to remain 

10 a strong, reliable, and active economic and strategic 

11 partner in the Indo-Pacific region; 

12 (3) the United States and the Republic of 

13 Korea enjoy a comprehensive alliance partnership, 

14 founded in shared strategic interests and cemented 

15 by a commitment to democratic values, which in16 cludes recognizing the important role of energy co17 operation through the United States-Republic of 

18 Korea Energy Security Dialogue; and 

19 (4) the United States has economic, national 

20 security, and domestic interests in assisting allies 

21 and partners in Indo-Pacific countries to reduce 

22 greenhouse gas emissions and achieve energy secu23 rity through diversification of their energy sources 

24 and supply routes. 


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1 SEC. 4. STATEMENT OF POLICY. 

2 It is the policy of the United States— 

3 (1) to engage and lead on international emis4 sions reductions and adaptation, including assisting 

5 allies and partners in reducing higher emissions fuel 

6 sources through exports of cleaner-burning United 

7 States-produced fuels and emission-reduction tech8 nologies; 

9 (2) to advance United States foreign policy and 

10 development goals by assisting allies and partners of 

11 the United States in the Indo-Pacific region to de12 crease their dependence on energy resources from 

13 countries that use energy dependence to coerce, in14 timidate, and influence other countries; 

15 (3) to develop strategies to counter competition 

16 from the Russian Federation and the People’s Re17 public of China to protect the energy and national 

18 security of the United States and the energy and na19 tional security of allies and partners of the United 

20 States in the Indo-Pacific region; 

21 (4) to support free and open trade in clean22 burning energy products and promote the continued 

23 development of lower-emissions energy fuels and 

24 technologies in the Indo-Pacific region; 


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1 (5) to improve free, fair, and reciprocal energy 

2 trading relationships with allies and partners of the 

3 United States in the Indo-Pacific region; 

4 (6) to promote the energy security of allies and 

5 partners of the United States in the Indo-Pacific re6 gion by encouraging the development of energy in7 frastructure and accessible, transparent, and com8 petitive energy markets that provide diversified 

9 sources, types, and routes of energy; 

10 (7) to encourage public and private sector in11 vestment in lower-emissions energy infrastructure 

12 projects in the Indo-Pacific region; 

13 (8) to supply countries that rely on higher emit14 ting fuel sources with cleaner burning and abundant 

15 alternatives; and 

16 (9) to help facilitate the export of United States 

17 energy resources, technology, and expertise to global 

18 markets in a way that benefits the energy security 

19 of allies and partners of the United States in the 

20 Indo-Pacific region. 

21 SEC. 5. ENERGY INFRASTRUCTURE PROJECT SUPPORT. 

22 (a) IN GENERAL.—The Secretary of State, in con23 sultation with the Secretary of Energy, the heads of other 

24 relevant United States agencies, and energy-importing al25 lies and partners of the United States, shall, as approVerDate Sep 11 2014 22:02 Sep 27, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2845.IS S2845

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1 priate, prioritize and expedite the efforts of the Depart2 ment of State, the Department of Energy, and such other 

3 agencies in supporting the governments of Japan, India, 

4 Australia, and other like-minded Indo-Pacific countries 

5 (including member countries of ASEAN and the Republic 

6 of Korea) to increase their energy security and reduce en7 ergy emissions, including through— 

8 (1) providing diplomatic and political support to 

9 those governments, as necessary— 

10 (A) to facilitate international negotiations 

11 concerning cross-border infrastructure; 

12 (B) to enhance the regulatory environment 

13 with respect to energy projects in the Indo-Pa14 cific region; and 

15 (C) to develop accessible, transparent, and 

16 competitive energy markets supplied by diverse 

17 sources, types, and routes of energy; and 

18 (2) providing support— 

19 (A) to improve energy markets in the Indo20 Pacific region, including early-stage project sup21 port and late-stage project support for the con22 struction or improvement of energy projects and 

23 related infrastructure pertaining to emissions 

24 reduction; 


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1 (B) to diversify the energy sources and 

2 supply routes of Indo-Pacific countries; and 

3 (C) to enhance energy market integration 

4 across the region. 

5 (b) PROJECT SELECTION.— 

6 (1) IDENTIFICATION.—The Secretary of State, 

7 the Secretary of Commerce, and the Secretary of 

8 Energy shall identify energy infrastructure projects 

9 that would be appropriate for United States assist10 ance under this section. 

11 (2) ELIGIBILITY.—A project is eligible for 

12 United States assistance under this section if the 

13 project— 

14 (A) has been identified by the Secretary of 

15 State, the Secretary of Commerce, and the Sec16 retary of Energy as promoting energy security 

17 in the Indo-Pacific region or the country in 

18 which the project is located; 

19 (B) promotes the reduction of greenhouse 

20 gas and carbon dioxide emissions; and 

21 (C) is located in an Indo-Pacific country. 

22 (3) PREFERENCE.—In selecting projects for 

23 United States assistance under this section, the Sec24 retary of State, the Secretary of Commerce, and the 


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1 Secretary of Energy shall give preference to projects 

2 that— 

3 (A) are expected to enhance energy market 

4 integration; or 

5 (B) have the potential to use goods and 

6 services of the United States, another Quad 

7 country, a member country of ASEAN, or the 

8 Republic of Korea, during project implementa9 tion. 

10 (c) DIPLOMATIC AND POLITICAL SUPPORT.—The 

11 Secretary of State shall provide diplomatic and political 

12 support to the governments of Japan, India, Australia, 

13 and other like-minded Indo-Pacific countries (including 

14 member countries of ASEAN and the Republic of Korea), 

15 as necessary, including by using the diplomatic and polit16 ical influence and expertise of the Department of State 

17 to build the capacity of those countries to resolve any im18 pediments to the development of projects selected under 

19 subsection (b). 

20 (d) PROJECT SUPPORT.—The Director of the Trade 

21 and Development Agency shall provide early-stage project 

22 support with respect to projects selected under subsection 

23 (b). 


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1 SEC. 6. INFRASTRUCTURE FUNDING. 

2 (a) ESTABLISHMENT OF STRATEGIC ENERGY PORT3 FOLIO OF THE UNITED STATES INTERNATIONAL DEVEL4 OPMENT FINANCE CORPORATION.—Title V of the Better 

5 Utilization of Investments Leading to Development Act of 

6 2018 (22 U.S.C. 9671 et seq.) is amended by adding at 

7 the end the following: 

8 ‘‘SEC. 1455. STRATEGIC ENERGY PORTFOLIO. 

9 ‘‘The Corporation— 

10 ‘‘(1) may provide support under title II for 

11 projects related to importation of liquefied natural 

12 gas and generation of low emission electricity and 

13 other energy, including for such projects of entities 

14 owned or controlled by the government of a foreign 

15 country; 

16 ‘‘(2) may not prohibit, restrict, or otherwise im17 pede the provision of support on the basis of the 

18 type of energy involved in a project; and 

19 ‘‘(3) should, in providing support authorized by 

20 paragraph (1), coordinate with the Japan Bank for 

21 International Cooperation and the Government of 

22 Australia pursuant to the trilateral memorandum of 

23 understanding on development finance signed on No24 vember 12, 2018.’’. 

25 (b) PROMOTION OF ENERGY EXPORTS BY EXPORT26 IMPORT BANK OF THE UNITED STATES.—The ExportVerDate Sep 11 2014 22:02 Sep 27, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2845.IS S2845

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1 Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is 

2 amended by adding at the end the following: 

3 ‘‘SEC. 16. STRATEGIC ENERGY PORTFOLIO. 

4 ‘‘(a) IN GENERAL.—The Bank shall establish a stra5 tegic energy portfolio focused on providing financing (in6 cluding loans, guarantees, and insurance) for projects de7 scribed in subsection (b) that may facilitate— 

8 ‘‘(1) increases in exports of United States en9 ergy commodities; or 

10 ‘‘(2) the export of United States equipment, 

11 materials, and technology. 

12 ‘‘(b) PROJECTS DESCRIBED.—A project described in 

13 this subsection is a project related to— 

14 ‘‘(1) construction of liquefied natural gas im15 port terminals; 

16 ‘‘(2) commercialization of carbon capture, utili17 zation, and storage; 

18 ‘‘(3) development of blue hydrogen infrastruc19 ture; or 

20 ‘‘(4) other low emission energy infrastructure.’’. 

21 (c) PRIVATE AND FOREIGN PUBLIC SECTOR INVEST22 MENT.— 

23 (1) PRIVATE SECTOR INVESTMENT.—The Sec24 retary of Commerce and the Secretary of State shall 

25 promote the funding of projects selected under secVerDate Sep 11 2014 22:02 Sep 27, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S2845.IS S2845

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1 tion 5 among United States energy producers and 

2 exporters. 

3 (2) FOREIGN PUBLIC SECTOR INVESTMENT.— 

4 The heads of the agencies described in section 5(a) 

5 may, for the purposes of this Act, partner and co6 ordinate with public and multilateral financial insti7 tutions and export credit agencies of Japan, India, 

8 Australia, and other Indo-Pacific countries (includ9 ing member countries of ASEAN and the Republic 

10 of Korea), such as the Japan Bank for International 

11 Cooperation. 

12 SEC. 7. REPORTING. 

13 (a) IN GENERAL.—Not later than one year after the 

14 date of the enactment of this Act, and annually thereafter, 

15 the President shall submit to the appropriate congres16 sional committees a report on progress made in providing 

17 assistance for projects under this Act that includes— 

18 (1) a description of the energy infrastructure 

19 projects the United States has identified for such as20 sistance; and 

21 (2) for each such project— 

22 (A) a description of the role of the United 

23 States in the project, including in early-stage 

24 project support and late-stage project support; 


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1 (B) the amount and form of any debt fi2 nancing and insurance provided by the United 

3 States Government for the project as well as 

4 any coordination with foreign public financial 

5 institutions or export credit agencies; 

6 (C) the amount and form of any debt fi7 nancing and insurance provided by foreign pub8 lic financial institutions or export credit agen9 cies; 

10 (D) the amount and form of any early11 stage project support; and 

12 (E) an update on the progress made on the 

13 project as of the date of the report. 

14 (b) APPROPRIATE CONGRESSIONAL COMMITTEES

15 DEFINED.—In this section, the term ‘‘appropriate con16 gressional committees’’ means— 

17 (1) the Committee on Foreign Relations, the 

18 Committee on Energy and Natural Resources, and 

19 the Committee on Environment and Public Works of 

20 the Senate; and 

21 (2) the Committee on Foreign Affairs, the 

22 Committee on Energy and Commerce, and the Com23 mittee on Natural Resources of the House of Rep24 resentatives. 

Æ 


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