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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 492 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 492

To make access to safe water and sanitation for developing countries a 
   specific policy objective of the United States foreign assistance 
                   programs, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 2, 2005

    Mr. Frist (for himself, Mr. Reid, and Mr. Lugar) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Foreign Relations

_______________________________________________________________________

                                 A BILL

 
To make access to safe water and sanitation for developing countries a 
   specific policy objective of the United States foreign assistance 
                   programs, 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 ``Safe Water: Currency for Peace Act 
of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Water-related diseases are a human tragedy, killing and 
        debilitating millions of people annually, preventing millions 
        of people from leading healthy lives, and undermining 
        development efforts.
            (2) Providing safe supplies of water, and sanitation and 
        hygiene improvements would save millions of lives by reducing 
        the prevalence of water-borne diseases, water-based diseases, 
        water-privation diseases, and water-related vector diseases.
            (3) An estimated 1,800,000 people die of diarrhoeal 
        diseases every year. Ninety percent of these people are 
        children under the age of five who live in developing 
        countries. Simple household and personal hygiene measures, such 
        as household water treatment and safe storage and effective 
        hand washing with soap, reduce the burden of diarrhoeal disease 
        by more than 40 percent.
            (4) According to the World Health Organization, 88 percent 
        of diarrhoeal disease can be attributed to unsafe water supply, 
        and inadequate sanitation and hygiene.
            (5) Around the world, more than 150,000,000 people are 
        threatened by blindness caused by trachoma, a disease that is 
        spread through poor hygiene and sanitation, and aggravated by 
        inadequate water supply.
            (6) Chronic intestinal helminth infections are a leading 
        source of global morbidity, including cognitive impairment and 
        anemia for hundreds of millions of children and adults. Access 
        to safe water and sanitation and better hygiene practices can 
        greatly reduce the number of these infections.
            (7) Schistosomiasis is a disease that affects 200,000,000 
        people, 20,000,000 of whom suffer serious consequences, 
        including liver and intestinal damage. Improved water resource 
        management to reduce infestation of surface water, improved 
        sanitation and hygiene, and deworming treatment can 
        dramatically reduce this burden.
            (8) In 2002, 2,600,000,000 people lacked access to improved 
        sanitation. In sub-Saharan Africa, only 36 percent of the 
        population has access to improved sanitation. In developing 
        countries, only 31 percent of the population in rural areas has 
        access to improved sanitation.
            (9) Improved management of water resources can contribute 
        to comprehensive strategies for controlling mosquito 
        populations associated with life-threatening vector-borne 
        diseases in developing countries, especially malaria, which 
        kills more than 1,000,000 people each year, most of whom are 
        children.
            (10) Natural disasters such as floods and droughts threaten 
        people's health. Floods contaminate drinking-water systems with 
        industrial waste refuse, sewage, and human and animal excreta. 
        Droughts exacerbate malnutrition and limit access to drinking 
        water supplies. Sound water resource management can mitigate 
        the impact of such natural disasters.
            (11) The United Nations Population Fund report entitled 
        ``Water: A Critical Resource'' stated that ``Nearly 500 million 
        people [suffer from] water stress or serious water scarcity. 
        Under current trends, two-thirds of the world's population may 
        be subject to moderate to high water stress by 2025''. 
        Effective water management and equitable allocation of scarce 
        water supplies for all uses will become increasingly important 
        for meeting both human and ecosystem water needs in the future.
            (12) The participants in the World Summit on Sustainable 
        Development, held in Johannesburg, South Africa, in 2002, 
        agreed to the Plan of Implementation of the World Summit on 
        Sustainable Development which included an agreement to work 
to reduce by one-half ``the proportion of people who are unable to 
reach or afford safe drinking water,'' and ``the proportion of people 
without access to basic sanitation'' by 2015.
            (13) At the World Summit on Sustainable Development, 
        building on the U.S.-Japan Partnership for Security and 
        Prosperity announced in June 2001 by President Bush and Prime 
        Minister Koizumi, the United States and Japan announced a Clean 
        Water for People Initiative to cooperate in providing safe 
        water and sanitation to the world's poor, improve watershed 
        management, and increase the productivity of water.
            (14) At the World Summit on Sustainable Development, the 
        United States announced the Water for the Poor Initiative which 
        committed the United States to provide $970,000,000 over 3 
        years to increase access to safe water and sanitation services, 
        improve watershed management, and increase the productivity of 
        water. During fiscal year 2004, the United States provided an 
        estimated $817,000,000 in assistance to the Water for the Poor 
        Initiative, including funds made available for reconstruction 
        activities in Iraq, of which $388,000,000 was made available 
        for safe drinking water and sanitation programs.
            (15) During fiscal year 2004, the United States provided 
        $49,000,000 in assistance for activities to provide safe 
        drinking water and sanitation in sub-Saharan Africa, an amount 
        that is equal to 6.5 percent of total United States foreign 
        assistance provided for all water activities in the Water for 
        the Poor Initiative.
            (16) At the 2003 Summit of the Group of Eight in Evian, 
        France, the members of the Group of Eight produced a plan 
        entitled ``Water: A G8 Action Plan'' that stated that a lack of 
        water can undermine human security. The Action Plan committed 
        the members of the Group of Eight to playing a more active role 
        in international efforts to provide safe water and sanitation 
        to the world's poor by mobilizing domestic resources in 
        developing countries for water infrastructure financing through 
        the development and strengthening of local capital markets and 
        financial institutions, particularly by establishing, where 
        appropriate, at the national and local levels, revolving funds 
        that offer local currency financings, which allow communities 
        to finance capital-intensive water infrastructure projects over 
        an affordable period of time at competitive rates.
            (17) The G8 Action Plan also committed members of the Group 
        of Eight to provide risk mitigation mechanisms for such 
        revolving funds and to provide technical assistance for the 
        development of efficient local financial markets and building 
        municipal government capacity to design and implement 
        financially viable projects and provide, as appropriate, 
        targeted subsidies for the poorest communities that cannot 
        fully service market rate debt.
            (18) The United Nations General Assembly Resolution 58/217 
        of February 9, 2004, proclaimed ``the period from 2005 to 2015 
        the International Decade for Action, `Water for Life', to 
        commence on World Water Day, 22 March 2005'' for the purpose of 
        increasing the focus of the international community on water-
        related issues at all levels and on the implementation of 
        water-related programs and projects.

SEC. 3. WATER FOR HEALTH AND DEVELOPMENT.

    (a) In General.--Part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 et seq.) is amended by inserting after section 104C the 
following new section:

``SEC. 104D. WATER FOR HEALTH AND DEVELOPMENT.

    ``(a) Finding.--Congress makes the following findings:
            ``(1) Access to safe water and sanitation and improved 
        hygiene are significant factors in controlling the spread of 
        disease in the developing world and positively affecting 
        economic development.
            ``(2) The health of children and other vulnerable rural and 
        urban populations in developing countries, especially sub-
        Saharan Africa and South Asia, is threatened by a lack of 
        adequate safe water, sanitation, and hygiene.
            ``(3) Efforts to meet United States foreign assistance 
        objectives, including those related to agriculture, the human 
        immunodeficiency virus (HIV) and acquired immune deficiency 
        syndrome (AIDS), and the environment will be advanced by 
        improving access to safe water and sanitation and promoting 
        sound water management throughout the world.
            ``(4) Developing sustainable financing mechanisms, 
        including private sector financing, is critical to the long-
        term sustainability of improved water supply, sanitation, and 
        hygiene.
            ``(5) The annual level of investment needed to meet the 
        water and sanitation needs of developing countries far exceeds 
        the amount of Official Development Assistance (ODA) and 
        spending by governments of developing countries, so attracting 
        greater public and private investment is essential.
            ``(6) Long-term sustainability in the provision of access 
        to safe water and sanitation and in the maintenance of water 
        and sanitation facilities requires a legal and regulatory 
        environment conducive to private sector investment and private 
        sector participation in the delivery of water and sanitation 
        services.
            ``(7) The absence of robust domestic financial markets and 
        sources for long-term financing are a major impediment to the 
        development of water and sanitation projects in developing 
        countries.
            ``(8) At the 2003 Summit of the Group of Eight in Evian, 
        France, the members of the Group of Eight produced a plan 
        entitled `Water: A G8 Action Plan' that contemplated the 
        promotion of domestic revolving funds to provide local currency 
        financing for capital-intensive water infrastructure projects. 
        Innovative financing mechanisms such as revolving funds and 
        pooled-financings have been effective vehicles for mobilizing 
        domestic savings for investments in water and sanitation both 
        in the United States and in some developing countries. These 
mechanisms can serve as a catalyst for greater investment in water and 
sanitation projects by villages, small towns, and municipalities.
            ``(9) The G8 Action Plan also committed members of the 
        Group of Eight to improving coordination and cooperation 
        between donors, and such improved coordination and cooperation 
        is essential for enlarging the beneficial impact of donor 
        initiatives.
    ``(b) Policy.--It is a major objective of United States foreign 
assistance--
            ``(1) to promote good health and economic development by 
        providing assistance to expand access to safe water and 
        sanitation, promote sound water management, and improve hygiene 
        for people around the world; and
            ``(2) to promote, to the maximum extent practicable and 
        appropriate, long-term sustainability in the provision of 
        access to safe water and sanitation by encouraging private 
        investment in water and sanitation infrastructure and services.
    ``(c) Authorization.--
            ``(1) In general.--To carry out the policy set out in 
        subsection (b), the President is authorized to furnish 
        assistance, including health information and education, to 
        advance good health and promote economic development by 
        improving the safety of water supplies, expanding access to 
        safe water and sanitation, promoting sound water management, 
        and promoting better hygiene.
            ``(2) Local currency.--The President may use payments made 
        in local currencies under an agreement made under title I of 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1701 et seq.) to provide assistance under this 
        section, including assistance for activities related to 
        drilling or maintaining wells.''.
    (b) Conforming Amendment.--Section 104(c) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1704(c)) is amended by 
adding at the end the following new paragraph:
            ``(9) Safe water.--To provide assistance under section 104D 
        of the Foreign Assistance Act of 1961 to advance good health 
        and promote economic development by improving the safety of 
        water supplies, including programs related to drilling or 
        maintaining wells.''.

SEC. 4. PILOT PROGRAM FOR WATER SUSTAINABILITY INFRASTRUCTURE 
              DEVELOPMENT AND CAPACITY BUILDING.

    (a) In General.--Section 104D of the Foreign Assistance Act of 
1961, as added by section 3, is amended by adding at the end the 
following new subsection:
    ``(d) Pilot Clean Water Sustainability Infrastructure Development 
Program.--
            ``(1) Authority for pilot program.--In order to study the 
        feasibility and desirability of a program to assist countries 
        that have a high proportion of the population that is 
        susceptible to water-borne illnesses as a result of a lack of 
        basic infrastructure for clean water and sanitation, the 
        President, in close coordination with the Administrator of the 
        United States Agency for International Development and the 
        Director of the Overseas Private Investment Corporation, is 
        authorized to establish a 5-year pilot program under which the 
        President may--
                    ``(A) provide for the issuance of investment 
                insurance, investment guarantees, or loan guarantees, 
                provide for direct investment or investment 
                encouragement, or carry out special projects and 
                programs for eligible investors to assist such 
                countries in the development of safe drinking water and 
                sanitation infrastructure programs; and
                    ``(B) provide assistance to support the activities 
                described in subparagraphs (A) through (D) of paragraph 
                (2) for the purposes of--
                            ``(i) carrying out the policy set out in 
                        subsection (b); and
                            ``(ii) maximizing the effectiveness of 
                        assistance provided under subparagraph (A).
            ``(2) Activities supported.--Assistance provided to a 
        country under paragraph (1)(B) shall be used to--
                    ``(A) assess the water development needs of such 
                country;
                    ``(B) design projects to address such water 
                development needs;
                    ``(C) develop the capacity of individuals and 
                institutions in such country to carry out and maintain 
                water development programs through training, joint work 
                projects, and educational programs; and
                    ``(D) provide long-term monitoring of water 
                development programs.
            ``(3) Geographic limitation.--The President may only 
        provide assistance under the pilot program under paragraph (1) 
        to a country based on consultation with Congress.
            ``(4) Additional criteria.--In making determinations of 
        eligibility under this subsection, the President should give 
        preferential consideration to projects sponsored by or 
        significantly involving United States small businesses or 
        cooperatives.
            ``(5) Implementation.--To the extent provided for in 
        advance in appropriations Acts, the President is authorized to 
        create such legal mechanisms as may be necessary for the 
        implementation of its authorities under this subsection. Such 
        legal mechanisms may be deemed non-Federal borrowers for 
        purposes of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 
        et seq.).
            ``(6) Loan guarantees.--Notwithstanding any other provision 
        of law, the President is authorized to provide assistance under 
        the pilot program under paragraph (1) in the form of partial 
        loan guarantees, provided that such a loan guarantee may not 
        exceed 75 percent of the total amount of the loan.
            ``(7) Coordination.--The President is authorized to 
        coordinate the activities of each agency or department of the 
        United States to provide to a country assistance for an 
        activity described in subparagraphs (A) through (D) of 
        paragraph (2).
            ``(8) Federal agency responsibilities.--Under the direction 
        of the President, the head of each agency or department of the 
        United States is authorized to assign, detail, or otherwise 
        make available to the Department of State any officer or 
        employee of such agency or department who possesses expertise 
        related to an activity described in subparagraphs (A) through 
        (D) of paragraph (2).
            ``(9) Report to congress.--The President shall annually 
        prepare and submit to the Committee on Appropriations, the 
        Committee on Foreign Relations, and the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Appropriations, the Committee on International Relations, 
        and the Committee on Energy and Commerce of the House of 
        Representatives a report concerning the implementation of the 
        pilot program under this subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective during the 5-year period beginning on the date of enactment 
of this Act.

SEC. 5. SAFE WATER STRATEGY.

    (a) Requirement for Strategy.--The Secretary of State, in close 
coordination with the Administrator of the United States Agency for 
International Development and in consultation with other appropriate 
Federal agencies, appropriate international organizations, foreign 
governments, United States nongovernmental organizations, and other 
appropriate entities, shall develop and implement a strategy to further 
the United States foreign assistance objective to promote economic 
development by promoting good health through the provision of 
assistance to expand access to safe water and sanitation, to promote 
sound water management, and to improve hygiene for people around the 
world.
    (b) Content.--The strategy required by subsection (a) shall 
include--
            (1) an assessment of the activities that have been carried 
        out, or that are planned to be carried out, by the United 
        States to improve hygiene or access to safe water and 
        sanitation by underserved rural or urban poor populations, the 
        countries of sub-Saharan Africa, or in countries that receive 
        assistance from the United States Agency for International 
        Development;
            (2) methods to achieve long-term sustainability in the 
        provision of access to safe water and sanitation, the 
        maintenance of water and sanitation facilities, and effective 
        promotion of improved hygiene, in the context of appropriate 
        financial, municipal, health, and water management systems;
            (3) methods to use United States assistance to promote 
        community-based approaches, including the involvement of civil 
        society, to further the objectives described in subsection (a);
            (4) methods to mobilize and leverage the financial, 
        technical, and managerial expertise of businesses, governments, 
        nongovernmental, and civil society in the form of public-
        private alliances such as the Global Development Alliances of 
        the Agency which encourage innovation and effective solutions 
        for improving sustainable access to safe water and sanitation;
            (5) goals to further the objectives described in subsection 
        (a) and methods to measure whether progress is being made to 
        meet such goals, including indicators to measure progress and 
        procedures to regularly evaluate and monitor progress;
            (6) assessments of the challenges and obstacles that impede 
        the provision of access to safe water and sanitation, as well 
        as the improvement of hygiene practices, critical in developing 
        countries;
            (7) assessments of how access to safe water, sanitation, 
        and hygiene programs, as well as water resource programs, 
        effectively support the goal of combating the human 
        immunodeficiency virus (HIV) and the acquired immune deficiency 
        syndrome (AIDS);
            (8) assessments of the roles that other countries or 
        entities, including international organizations, could play in 
        furthering such objective and mechanisms to establish 
        coordination among the United States, foreign countries, and 
        other entities;
            (9) assessments of the level of resources that are needed 
        each year to further such objective; and
            (10) methods to coordinate and integrate programs of the 
        United States to further such objective with other United 
        States foreign assistance programs.
    (c) Reports to Congress.--
            (1) Initial report.--Not later than 180 days after the date 
        of enactment of this Act, the President shall submit to 
        Congress a report that describes the strategy required by 
        subsection (a).
            (2) Report.--Not less than once every 2 years after the 
        submission of the initial report under paragraph (1), the 
        President shall submit to Congress a report on the status of 
        the implementation of the strategy and progress made in 
        achieving the objective described in subsection (a).

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for each 
of the fiscal years 2006 through 2011 such sums as may be necessary to 
carry out this Act and the amendments made by this Act.
    (b) Other Amounts.--Amounts appropriated pursuant to the 
authorization of appropriations in subsection (a) shall be in addition 
to the amounts otherwise available to carry out this Act and the 
amendments made by this Act.
                                 <all>
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