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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 745 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 745

To amend the Global Environmental Protection Assistance Act of 1989 to 
  promote international clean energy development, to open and expand 
   clean energy markets abroad, to engage developing nations in the 
 advancement of sustainable energy use and climate change actions, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 11, 2005

   Mr. Byrd (for himself, Mr. Jeffords, Mr. Kerry, and Mr. Bingaman) 
introduced the following bill; which was read twice and referred to the 
                     Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
To amend the Global Environmental Protection Assistance Act of 1989 to 
  promote international clean energy development, to open and expand 
   clean energy markets abroad, to engage developing nations in the 
 advancement of sustainable energy use and climate change actions, 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 ``International Clean Energy 
Deployment and Global Energy Markets Investment Act of 2005''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to strengthen the cooperation of the United States with 
        developing countries in addressing critical energy needs and 
        global climate change;
            (2) to promote sustainable economic development, increase 
        access to modern energy services, reduce greenhouse gas 
        emissions, and strengthen energy security and independence in 
        developing countries through the deployment of clean energy 
        technologies;
            (3) to facilitate the export of clean energy technologies 
        to developing countries;
            (4) to reduce the trade deficit of the United States 
        through the export of United States energy technologies and 
        technological expertise;
            (5) to retain and create manufacturing and related service 
        jobs in the United States;
            (6) to integrate the objectives described in paragraphs (1) 
        through (5) in a manner consistent with interests of the United 
        States, into the foreign policy of the United States;
            (7) to authorize funds for clean energy development 
        activities in developing countries; and
            (8) to ensure that activities funded under part C of title 
        VII of the Global Environmental Protection Assistance Act of 
        1989 (as added by section 3) contribute to economic growth, 
        poverty reduction, good governance, the rule of law, property 
        rights, and environmental protection.

SEC. 3. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES.

    Title VII of the Global Environmental Protection Assistance Act of 
1989 (Public Law 101-240; 103 Stat. 2521) is amending by adding at the 
end the following:

  ``PART C--CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES

``SEC. 731. DEFINITIONS.

    ``In this part:
            ``(1) Clean energy technology.--The term `clean energy 
        technology' means an energy supply or end-use technology that, 
        over its lifecycle and compared to a similar technology already 
        in commercial use in any developing country--
                    ``(A) is reliable, affordable, economically viable, 
                socially acceptable, and compatible with the needs and 
                norms of the host country;
                    ``(B) results in--
                            ``(i) reduced emissions of greenhouse 
                        gases; or
                            ``(ii) increased geological sequestration; 
                        and
                    ``(C) may--
                            ``(i) substantially lower emissions of air 
                        pollutants; and
                            ``(ii) generate substantially smaller or 
                        less hazardous quantities of solid or liquid 
                        waste.
            ``(2) Department.--The term `Department' means the 
        Department of State.
            ``(3) Developing country.--
                    ``(A) In general.--The term `developing country' 
                means any country not listed in Annex I of the United 
                Nations Framework Convention on Climate Change, done at 
                New York on May 9, 1992.
                    ``(B) Inclusion.--The term `developing country' may 
                include a country with an economy in transition, as 
                determined by the Secretary.
            ``(4) Geological sequestration.--The term `geological 
        sequestration' means the capture and long-term storage in a 
        geological formation of a greenhouse gas from an energy 
        producing facility, which prevents the release of greenhouse 
        gases into the atmosphere.
            ``(5) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; and
                    ``(F) sulfur hexafluoride.
            ``(6) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(7) Interagency working group.--The term `Interagency 
        Working Group' means the Interagency Working Group on Clean 
        Energy Technology Exports established under section 
        732(b)(1)(A).
            ``(8) National laboratory.--The term `National Laboratory' 
        means any of the following laboratories owned by the Department 
        of Energy:
                    ``(A) Ames Laboratory.
                    ``(B) Argonne National Laboratory.
                    ``(C) Brookhaven National Laboratory.
                    ``(D) Fermi National Accelerator Laboratory.
                    ``(E) Idaho National Engineering and Environmental 
                Laboratory.
                    ``(F) Lawrence Berkeley National Laboratory.
                    ``(G) Lawrence Livermore National Laboratory.
                    ``(H) Los Alamos National Laboratory.
                    ``(I) National Energy Technology Laboratory.
                    ``(J) National Renewable Energy Laboratory.
                    ``(K) Oak Ridge National Laboratory.
                    ``(L) Pacific Northwest National Laboratory.
                    ``(M) Princeton Plasma Physics Laboratory.
                    ``(N) Sandia National Laboratories.
                    ``(O) Stanford Linear Accelerator Center.
                    ``(P) Thomas Jefferson National Accelerator 
                Facility.
            ``(9) Qualifying project.--The term `qualifying project' 
        means a project meeting the criteria established under section 
        735(b).
            ``(10) Secretary.--The term `Secretary' means the Secretary 
        of State.
            ``(11) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.
            ``(12) Strategy.--The term `Strategy' means the strategy 
        established under section 733.
            ``(13) Task force.--The term `Task Force' means the Task 
        Force on International Clean Energy Cooperation established 
        under section 732(a).
            ``(14) United states.--The term `United States', when used 
        in a geographical sense, means all of the States.

``SEC. 732. ORGANIZATION.

    ``(a) Task Force.--
            ``(1) Establishment.--Not later than 90 days after the date 
        of enactment of this part, the President shall establish a Task 
        Force on International Clean Energy Cooperation.
            ``(2) Composition.--The Task Force shall be composed of--
                    ``(A) the Secretary, who shall serve as 
                Chairperson; and
                    ``(B) representatives, appointed by the head of the 
                respective Federal agency, of--
                            ``(i) the Department of Commerce;
                            ``(ii) the Department of the Treasury;
                            ``(iii) the Department of Energy;
                            ``(iv) the Environmental Protection Agency;
                            ``(v) the United States Agency for 
                        International Development;
                            ``(vi) the Export-Import Bank;
                            ``(vii) the Overseas Private Investment 
                        Corporation;
                            ``(viii) the Trade and Development Agency;
                            ``(ix) the Small Business Administration;
                            ``(x) the Office of United States Trade 
                        Representative; and
                            ``(xi) other Federal agencies, as 
                        determined by the President.
            ``(3) Duties.--
                    ``(A) Lead agency.--The Task Force shall act as the 
                lead agency in the development and implementation of 
                strategy under section 733.
                    ``(B) Coordination and implementation.--The Task 
                Force shall support the coordination and implementation 
                of programs under sections 1331, 1332, and 1608 of the 
                Energy Policy Act of 1992 (42 U.S.C. 13361, 13362, 
                13387).
            ``(4) Termination.--The Task Force, including any working 
        group established by the Task Force, shall terminate on January 
        1, 2016.
    ``(b) Working Groups.--
            ``(1) Establishment.--The Task Force--
                    ``(A) shall establish an Interagency Working Group 
                on Clean Energy Technology Exports; and
                    ``(B) may establish other working groups as 
                necessary to carry out this part.
            ``(2) Composition of interagency working group.--The 
        Interagency Working Group shall be composed of--
                    ``(A) the Secretary of Energy, the Secretary of 
                Commerce, and the Administrator of the United States 
                Agency for International Development, who shall jointly 
                serve as Chairpersons; and
                    ``(B) other members, as determined by the Task 
                Force.
    ``(c) Interagency Center.--
            ``(1) Establishment.--There is established an Interagency 
        Center in the Office of International Energy Market Development 
        of the Department of Energy.
            ``(2) Duties.--The Interagency Center shall--
                    ``(A) assist the Interagency Working Group in 
                carrying out this part; and
                    ``(B) perform such other duties as are determined 
                to be appropriate by the Secretary of Energy.

``SEC. 733. STRATEGY.

    ``(a) Initial Strategy.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this part, the Task Force shall develop and submit 
        to the President a Strategy to--
                    ``(A) support the development and implementation of 
                programs and policies in developing countries to 
                promote the adoption of clean energy technologies and 
                energy efficiency technologies and strategies, with an 
                emphasis on those developing countries that are 
                expected to experience the most significant growth in 
                energy production and use over the next 20 years;
                    ``(B) open and expand clean energy technology 
                markets and facilitate the export of clean energy 
                technology to developing countries, in a manner 
                consistent with the subsidy codes of the World Trade 
                Organization;
                    ``(C) integrate into the foreign policy objectives 
                of the United States the promotion of--
                            ``(i) clean energy technology deployment 
                        and reduced greenhouse gas emissions in 
                        developing countries; and
                            ``(ii) clean energy technology exports;
                    ``(D) establish a pilot program that provides 
                financial assistance for qualifying projects; and
                    ``(E) develop financial mechanisms and instruments 
                (including securities that mitigate the political and 
                foreign exchange risks of uses that are consistent with 
                the foreign policy of the United States by combining 
                the private sector market and government enhancements) 
                that--
                            ``(i) are cost-effective; and
                            ``(ii) facilitate private capital 
                        investment in clean energy technology projects 
                        in developing countries.
            ``(2) Transmission to congress.--On receiving the Strategy 
        from the Task Force under paragraph (1), the President shall 
        transmit to Congress the Strategy.
    ``(b)  Updates.--
            ``(1) In general.--Not later than 2 years after the date of 
        submission of the initial Strategy under subsection (a)(1), and 
        every 2 years thereafter--
                    ``(A) the Task Force shall--
                            ``(i) review and update the Strategy; and
                            ``(ii) report the results of the review and 
                        update to the President; and
                    ``(B) the President shall submit to Congress a 
                report on the Strategy.
            ``(2) Inclusions.--The report shall include--
                    ``(A) the updated Strategy;
                    ``(B) a description of the assistance provided 
                under this part;
                    ``(C) the results of the pilot projects carried out 
                under this part, including a comparative analysis of 
                the relative merits of each pilot project;
                    ``(D) the activities and progress reported by 
                developing countries to the Department under section 
                736(b)(2); and
                    ``(E) the activities and progress reported towards 
                meeting the goals established under section 736(b)(2).
    ``(c) Content.--In developing, updating, and submitting a report on 
the Strategy, the Task Force shall--
            ``(1) assess--
                    ``(A) energy trends, energy needs, and potential 
                energy resource bases in developing countries; and
                    ``(B) the implications of the trends and needs for 
                domestic and global economic and security interests;
            ``(2) analyze technology, policy, and market opportunities 
        for international development, demonstration, and deployment of 
        clean energy technologies and strategies;
            ``(3) examine relevant trade, tax, finance, international, 
        and other policy issues to assess what policies, in the United 
        States and in developing countries, would help open markets and 
        improve clean energy technology exports of the United States in 
        support of--
                    ``(A) enhancing energy innovation and cooperation, 
                including energy sector and market reform, capacity 
                building, and financing measures;
                    ``(B) improving energy end-use efficiency 
                technologies (including buildings and facilities) and 
                vehicle, industrial, and co-generation technology 
                initiatives; and
                    ``(C) promoting energy supply technologies, 
                including fossil, nuclear, and renewable technology 
                initiatives;
            ``(4) investigate issues associated with building capacity 
        to deploy clean energy technology in developing countries, 
        including--
                    ``(A) energy-sector reform;
                    ``(B) creation of open, transparent, and 
                competitive markets for clean energy technologies;
                    ``(C) the availability of trained personnel to 
                deploy and maintain clean energy technology; and
                    ``(D) demonstration and cost-buydown mechanisms to 
                promote first adoption of clean energy technology;
            ``(5) establish priorities for promoting the diffusion and 
        adoption of clean energy technologies and strategies in 
        developing countries, taking into account economic and security 
        interests of the United States and opportunities for the export 
        of technology of the United States;
            ``(6) identify the means of integrating the priorities 
        established under paragraph (5) into bilateral, multilateral, 
        and assistance activities and commitments of the United States;
            ``(7) establish methodologies for the measurement, 
        monitoring, verification, and reporting under section 736(b)(2) 
        of the greenhouse gas emission impacts of clean energy projects 
        and policies in developing countries;
            ``(8) establish a registry that is accessible to the public 
        through electronic means (including through the Internet) in 
        which information reported under section 736(b)(2) shall be 
        collected;
            ``(9) make recommendations to the heads of appropriate 
        Federal agencies on ways to streamline Federal programs and 
        policies to improve the role of the agencies in the 
        international development, demonstration, and deployment of 
        clean energy technology;
            ``(10) make assessments and recommendations regarding the 
        distinct technological, market, regional, and stakeholder 
        challenges necessary to deploy clean energy technology;
            ``(11) recommend conditions and criteria that will help 
        ensure that funds provided by the United States promote sound 
        energy policies in developing countries while simultaneously 
        opening their markets and exporting clean energy technology of 
        the United States;
            ``(12) establish an advisory committee, composed of 
        representatives of the private sector and other interested 
        groups, on the export and deployment of clean energy 
        technology;
            ``(13) establish a coordinated mechanism for disseminating 
        information to the private sector and the public on clean 
        energy technologies and clean energy technology transfer 
        opportunities; and
            ``(14) monitor the progress of each Federal agency in 
        promoting the purposes of this part, in accordance with--
                    ``(A) the 5-year strategic plan submitted to 
                Congress in October 2002; and
                    ``(B) other applicable law.

``SEC. 734. CLEAN ENERGY ASSISTANCE TO DEVELOPING COUNTRIES.

    ``(a) In General.--Subject to section 736, the Secretary may 
provide assistance to developing countries for activities that are 
consistent with the priorities established in the Strategy.
    ``(b) Assistance.--The assistance may be provided through--
            ``(1) the Millennium Challenge Corporation established 
        under section 604(a) of the Millennium Challenge Act of 2003 
        (22 U.S.C. 7703(a));
            ``(2) the Global Village Energy Partnership; and
            ``(3) other international assistance programs or activities 
        of--
                    ``(A) the Department;
                    ``(B) the United States Agency for International 
                Development; and
                    ``(C) other Federal agencies.
    ``(c) Eligible Activities.--The activities supported under this 
section include--
            ``(1) development of national action plans and policies 
        to--
                    ``(A) facilitate the provision of clean energy 
                services and the adoption of energy efficiency 
                measures;
                    ``(B) identify linkages between the use of clean 
                energy technologies and the provision of agricultural, 
                transportation, water, health, educational, and other 
                development-related services; and
                    ``(C) integrate the use of clean energy 
                technologies into national strategies for economic 
                growth, poverty reduction, and sustainable development;
            ``(2) strengthening of public and private sector capacity 
        to--
                    ``(A) assess clean energy needs and options;
                    ``(B) identify opportunities to reduce, avoid, or 
                sequester greenhouse gas emissions;
                    ``(C) establish enabling policy frameworks;
                    ``(D) develop and access financing mechanisms; and
                    ``(E) monitor progress in implementing clean energy 
                and greenhouse gas reduction strategies;
            ``(3) enactment and implementation of market-favoring 
        measures to promote commercial-based energy service provision 
        and to improve the governance, efficiency, and financial 
        performance of the energy sector; and
            ``(4) development and use of innovative public and private 
        mechanisms to catalyze and leverage financing for clean energy 
        technologies, including use of the development credit authority 
        of the United States Agency for International Development and 
        credit enhancements through the Export-Import Bank and the 
        Overseas Private Investment Corporation.

``SEC. 735. PILOT PROGRAM FOR DEMONSTRATION PROJECTS.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this part, the Secretary, in consultation with the 
Secretary of Energy and the Administrator of the United States Agency 
for International Development, shall, by regulation, establish a pilot 
program that provides financial assistance for qualifying projects 
consistent with the Strategy and the performance criteria established 
under section 736.
    ``(b) Qualifying Projects.--To be qualified to receive assistance 
under this section, a project shall--
            ``(1) be a project--
                    ``(A) to construct an energy production facility in 
                a developing country for the production of energy to be 
                consumed in the developing country; or
                    ``(B) to improve the efficiency of energy use in a 
                developing country;
            ``(2) be a project that--
                    ``(A) is submitted by a firm of the United States 
                to the Secretary in accordance with procedures 
                established by the Secretary by regulation;
                    ``(B) meets the requirements of section 1608(k) of 
                the Energy Policy Act of 1992 (42 U.S.C. 13387(k));
                    ``(C) uses technology that has been successfully 
                developed or deployed in the United States; and
                    ``(D) is selected by the Secretary without regard 
                to the developing country in which the project is 
                located, with notice of the selection published in the 
                Federal Register; and
            ``(3) when deployed, result in a greenhouse gas emission 
        reduction (when compared to the technology that would otherwise 
        be deployed) of at least--
                    ``(A) in the case of a unit or energy-efficiency 
                measure placed in service during the period beginning 
                on the date of enactment of this part and ending on 
                December 31, 2009, 20 percentage points;
                    ``(B) in the case of a unit or energy-efficiency 
                measure placed in service during the period beginning 
                on January 1, 2010, and ending on December 31, 2019, 40 
                percentage points; and
                    ``(C) in the case of a unit or energy-efficiency 
                measure placed in service after December 31, 2019, 60 
                percentage points.
    ``(c) Financial Assistance.--
            ``(1) In general.--For each qualifying project selected by 
        the Secretary to participate in the pilot program, the 
        Secretary shall make a loan or loan guarantee available for not 
        more than 50 percent of the total cost of the project.
            ``(2) Interest rate.--The interest rate on a loan made 
        under this subsection shall be equal to the current average 
        yield on outstanding obligations of the United States with 
        remaining periods of maturity comparable to the maturity of the 
        loan.
            ``(3) Host country contribution.--To be eligible for a loan 
        or loan guarantee for a project in a host country under this 
        subsection, the host country shall--
                    ``(A) make at least a 10 percent contribution 
                toward the total cost of the project; and
                    ``(B) verify to the Secretary (using the 
                methodology established under section 733(c)(7)) the 
                quantity of annual greenhouse gas emissions reduced, 
                avoided, or sequestered as a result of the deployment 
                of the project.
            ``(4) Capacity building research.--
                    ``(A) In general.--A proposal made for a qualifying 
                project may include a research component intended to 
                build technological capacity within the host country.
                    ``(B) Research.--To be eligible for a loan or loan 
                guarantee under this paragraph, the research shall--
                            ``(i) be related to the technology being 
                        deployed; and
                            ``(ii) involve--
                                    ``(I) an institution in the host 
                                country; and
                                    ``(II) a participant from the 
                                United States that is an industrial 
                                entity, an institution of higher 
                                education, or a National Laboratory.
                    ``(C) Host country contribution.--To be eligible 
                for a loan or loan guarantee for research in a host 
                country under this paragraph, the host country shall 
                make at least a 50 percent contribution toward the 
                total cost of the research.
            ``(5) Grants.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of Energy and the Administrator of 
                the United States Agency for International Development, 
                may, at the request of the United States ambassador to 
                a host country, make grants to help address and 
                overcome specific, urgent, and unforeseen obstacles in 
                the implementation of a qualifying project.
                    ``(B) Maximum amount.--The total amount of a grant 
                made for a qualifying project under this paragraph may 
                not exceed $1,000,000.

``SEC. 736. PERFORMANCE CRITERIA FOR MAJOR ENERGY CONSUMERS.

    ``(a) Identification of Major Energy Consumers.--Not later than 1 
year after the date of enactment of this part, the Task Force shall 
identify those developing countries that, by virtue of present and 
projected energy consumption, represent the predominant share of energy 
use among developing countries.
    ``(b) Performance Criteria.--As a condition of accepting assistance 
provided under sections 734 and 735, any developing country identified 
under subsection (a) shall--
            ``(1) meet the eligibility criteria established under 
        section 607 of the Millennium Challenge Act of 2003 (22 U.S.C. 
        7706), notwithstanding the eligibility of the developing 
        country as a candidate country under section 606 of that Act 
        (22 U.S.C. 7705); and
            ``(2) agree to establish and report on progress in meeting 
        specific goals for reduced energy-related greenhouse gas 
        emissions and specific goals for--
                    ``(A) increased access to clean energy services 
                among unserved and underserved populations;
                    ``(B) increased use of renewable energy resources;
                    ``(C) increased use of lower greenhouse gas-
                emitting fossil fuel-burning technologies;
                    ``(D) more efficient production and use of energy;
                    ``(E) greater reliance on advanced energy 
                technologies;
                    ``(F) the sustainable use of traditional energy 
                resources; or
                    ``(G) other goals for improving energy-related 
                environmental performance, including the reduction or 
                avoidance of local air and water quality and solid 
                waste contaminants.

``SEC. 737. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this part for each of fiscal years 2006 through 
2015.''.
                                 <all>
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