North American Transatlantic Resource Security Partnership Act of 2023

Subjects: International Affairs


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 458 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 458

  To establish a program to reduce the reliance of allied and partner 
nations on natural gas, petroleum, nuclear fuel, and minerals produced 
                   in Russia, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2023

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

_______________________________________________________________________

                                 A BILL


 
  To establish a program to reduce the reliance of allied and partner 
nations on natural gas, petroleum, nuclear fuel, and minerals produced 
                   in Russia, 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 ``North American Transatlantic 
Resource Security Partnership Act of 2023''.

SEC. 2. DEFINITION OF SECRETARIES.

    In this Act, the term ``Secretaries'' means the Secretary of Energy 
and the Secretary of the Interior.

SEC. 3. PROGRAM TO REDUCE RELIANCE ON RUSSIAN ENERGY.

    (a) Definition of Ally or Partner Nation.--In this section, the 
term ``ally or partner nation'' means the Government of each of the 
following:
            (1) Australia.
            (2) Finland.
            (3) Japan.
            (4) The Republic of Korea.
            (5) Sweden.
            (6) Switzerland.
            (7) Ukraine.
            (8) Kosovo.
            (9) Moldova.
            (10) A country with a transmission system operator that is 
        included in the European Network of Transmission System 
        Operators for Electricity.
            (11) A member of the North Atlantic Treaty Organization.
            (12) Any other country designated as an ally or partner 
        nation by the Secretaries for purposes of this Act.
    (b) Establishment.--The Secretaries shall establish a joint program 
(referred to in this section as the ``program'') to reduce the reliance 
of ally or partner nations on natural gas, petroleum (including crude 
oil and petroleum products), coal, minerals, nuclear fuel, isotopes, 
and other energy-related and mineral-related technologies and 
commodities produced in Russia by--
            (1) developing or manufacturing relevant resources, 
        materials, or equipment domestically;
            (2) providing those resources, materials, and equipment to 
        an ally or partner nation under such terms and conditions as 
        the Secretaries determine appropriate;
            (3) issuing loans, loan guarantees, other financial 
        assistance, or assistance in the form of an equity interest to 
        carry out the activities described in paragraphs (1) and (2); 
        and
            (4) providing relevant technical assistance to an ally or 
        partner nation.
    (c) Priority.--In carrying out the program, the Secretaries shall 
give priority to activities and projects that--
            (1) are located in the United States; or
            (2) are located in or benefit countries that had an annual 
        per capita gross domestic product of not more than $28,000 in 
        2020.
    (d) Partnerships.--The Secretaries may partner with other Federal 
agencies to carry out the program.
    (e) Authority To Enter Into Agreements.--In carrying out the 
program, the Secretaries may enter into 1 or more agreements directly 
with an ally or partner nation or a third party under such terms and 
conditions as the Secretaries determine appropriate.
    (f) Domestic Sourcing Considerations.--
            (1) In general.--Except as provided in paragraph (2), to 
        the extent practicable, the Secretaries may only carry out an 
        activity described in paragraphs (1) through (4) of subsection 
        (b) if the activity--
                    (A) relies on resources, materials, or equipment 
                that are developed or produced in the United States; 
                and
                    (B) promotes--
                            (i) the energy and national security of the 
                        United States or ally or partner nations; or
                            (ii) manufacturing in the United States.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to an activity described in paragraphs (1) through (4) of 
        subsection (b) if the Secretary of Energy certifies that such 
        an activity cannot reasonably satisfy clause (i) or (ii) of 
        paragraph (1)(B).
    (g) Reports.--Not later than 90 days after the date of enactment of 
this Act, and annually thereafter, the Secretaries shall submit to the 
Committee on Energy and Natural Resources and the Committee on Foreign 
Relations of the Senate and the Committee on Energy and Commerce and 
the Committee on Foreign Affairs of the House of Representatives a 
report that--
            (1) identifies any resources, materials, or equipment 
        developed under subsection (b)(1); and
            (2) analyzes how the program benefits domestic resource 
        suppliers and manufacturers.
    (h) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretaries to carry out this section $500,000,000 for 
        fiscal year 2024, to remain available until September 30, 2026.
            (2) Nord stream 2 pipeline discontinuation.--
                    (A) Authorization of appropriations.--In addition 
                to the amount authorized to be appropriated under 
                paragraph (1), there is authorized to be appropriated 
                to the Secretaries to carry out this section 
                $500,000,000 for fiscal year 2024, to remain available 
                until September 30, 2026.
                    (B) Conditions.--Amounts appropriated pursuant to 
                subparagraph (A) may only be expended if the Secretary 
                of Energy certifies to Congress that the planning, 
                construction, and operation of the Nord Stream 2 
                pipeline has been permanently discontinued, including 
                as a result of United States sanctions imposed on any 
                person or entity responsible for such planning, 
                construction, or operation.

SEC. 4. DOMESTIC ENERGY AND MINERAL SECURITY EVALUATION.

    (a) Report on Domestic Energy and Mineral Security.--Not later than 
1 year after the date of enactment of this Act, the Secretaries shall 
develop and submit to the Committee on Energy and Natural Resources of 
the Senate and the Committee on Energy and Commerce of the House of 
Representatives a report that evaluates the energy and mineral security 
of the United States, including--
            (1) identification of any threats posed to the supply, 
        transmission, distribution, or use of energy in the United 
        States;
            (2) identification of any threats posed to the supply, 
        processing, refining, and distribution of minerals in the 
        United States;
            (3) the potential impact of the threats described in 
        paragraphs (1) and (2) on--
                    (A) the economy of the United States;
                    (B) consumers and well-functioning and competitive 
                energy and mineral markets in the United States; and
                    (C) the national security of the United States; and
            (4) identification of means to strengthen domestic 
        production while standardizing a system to support projects 
        with ally or partner nations to establish resilient and 
        responsible energy and mineral supply chains.
    (b) Consultation.--In developing the report under subsection (a), 
the Secretaries may consult with relevant Federal, State, private 
sector, and other entities, as the Secretaries determine appropriate.

SEC. 5. ENERGY AND RELATED INFRASTRUCTURE SUPPLY CHAIN RELIABILITY 
              ASSURANCE PROGRAM.

    (a) In General.--The Secretaries shall establish a supply chain 
reliability assurance program (referred to in this section as the 
``program''), under which the Secretaries shall--
            (1) prioritize, to the maximum extent practicable, domestic 
        activities that ensure the establishment of secure supply 
        chains, including energy production, mining, mineral 
        processing, and manufacturing;
            (2) facilitate collaboration with Federal agencies, 
        industrial partners, Mexico, and Canada to establish, grow, and 
        maintain a reliable domestic supplier base of critical energy 
        materials and technologies by establishing government-to-
        government partnerships and public-private partnerships--
                    (A) to procure materials (as defined in section 
                2(b) of the National Materials and Minerals Policy, 
                Research and Development Act of 1980 (30 U.S.C. 
                1601(b))) to meet the engineering and performance 
                requirements of the Department of Energy (referred to 
                in this section as the ``Department'') and private and 
                public entities; and
                    (B) that may relate to--
                            (i) high-performance computing;
                            (ii) carbon capture materials;
                            (iii) the electric grid, including 
                        transformers and high voltage direct current;
                            (iv) energy storage;
                            (v) hydropower and pumped storage 
                        hydropower;
                            (vi) nuclear energy;
                            (vii) catalysts;
                            (viii) semiconductors;
                            (ix) solar photovoltaics;
                            (x) wind;
                            (xi) isotopes;
                            (xii) oil and gas;
                            (xiii) advanced materials; and
                            (xiv) geothermal electrical and thermal 
                        power storage;
            (3) improve coordination with Mexico and Canada to improve 
        planning for material requirements and potential disruptions to 
        commercial or contractor supply chains of materials crucial to 
        energy and related technologies, including by--
                    (A) assisting in coordination for forecasting 
                future needs in existing and emerging energy and 
                related technologies and new procurements; and
                    (B) establishing clear requirements to increase raw 
                material availability, expand manufacturing 
                capabilities, support the formation of diverse, secure, 
                and socially responsible foreign supply chains, and 
                improve supply chain knowledge and decision-making for 
                energy and related technologies;
            (4) collaborate with Federal agencies, industrial partners, 
        and international partners to establish processes to mitigate 
        manufacturing challenges for energy infrastructure and other 
        energy-related products and to develop strategies to lower the 
        long-term costs of energy materials and technology while 
        identifying and preserving--
                    (A) the production of materials and components 
                required for advanced energy technologies and products, 
                including natural gas, hydrogen, pipelines, and 
                transmission, renewables, advanced nuclear, advanced 
                energy materials, and commercial-scale energy storage 
                by the Department; and
                    (B) energy and related infrastructure; and
            (5) plan for--
                    (A) the sustainment of the supply of recycled 
                materials for energy and related technologies; and
                    (B) required infrastructure to recycle materials 
                for energy and related technologies.
    (b) Financial Assistance.--The Secretaries may provide loans, loan 
guarantees, other financial assistance, and assistance in the form of 
an equity interest to carry out the activities under the program.
    (c) Funding.--There is authorized to be appropriated to the 
Secretaries to carry out this section $200,000,000 for the period of 
fiscal years 2024 through 2028.

SEC. 6. NORTH AMERICAN ENERGY SECURITY COOPERATION.

    (a) Covered Energy Source Defined.--In this section, the term 
``covered energy source'' means any of the following:
            (1) Solar energy.
            (2) Biomass energy.
            (3) Energy efficiency technology.
            (4) Wind energy.
            (5) Geothermal energy.
            (6) Wave and tidal energy.
            (7) Advanced battery technology.
            (8) Hydrogen technology.
            (9) Nuclear energy.
            (10) Carbon capture, utilization, and storage technology.
            (11) Natural gas energy, including conventional and 
        unconventional natural gas technologies and other associated 
        technologies, and natural gas projects.
            (12) Water technologies, including water desalination, 
        wastewater treatment and reclamation, and other water treatment 
        refining.
            (13) Petroleum, petroleum derivatives, and petroleum 
        products.
            (14) Critical materials (as defined in section 7002(a) of 
        the Energy Act of 2020 (30 U.S.C. 1606(a))) necessary for use 
        of any of the energy sources described in paragraphs (1) 
        through (13).
    (b) Sense of Congress on United States-Mexico-Canada Cooperation 
Agreement.--It is the sense of Congress that--
            (1) it is in the highest economic and national security 
        interests of the United States to develop covered energy 
        sources in the United States;
            (2) the states of Mexico and provinces of Canada are 
        steadfast allies of the United States and have the capacity to 
        produce energy and mineral resources that contribute to 
        economic and national security;
            (3) enhanced cooperation between the United States, Mexico, 
        and Canada for the purpose of research and development of 
        covered energy sources would be in the national interests of 
        all 3 countries;
            (4) energy cooperation between the United States, Mexico, 
        and Canada and the development of natural resources by all 3 
        countries are in the strategic interests of the United States;
            (5) the United States can play a role in assisting Mexico 
        and Canada with regional safety and security issues;
            (6) the Secretaries, as appropriate and in consultation 
        with the National Science Foundation, should collaborate with 
        Mexico and Canada with respect to research, development, and 
        deployment of covered energy sources;
            (7) the United States, Mexico, and Canada should strive to 
        develop more robust academic cooperation with respect to--
                    (A) energy innovation technology and engineering;
                    (B) water science;
                    (C) technology transfer; and
                    (D) analysis of--
                            (i) emerging geopolitical dynamics, 
                        threats, and crises from acquisitions of 
                        natural resources and energy supplies by 
                        foreign countries; and
                            (ii) the development of domestic resources 
                        as a response to those threats; and
            (8) the United States strongly urges open dialogue and 
        continued mechanisms for regular engagement and encourages 
        further cooperation between applicable departments, agencies, 
        ministries, institutions of higher education, and the private 
        sector of the United States, Mexico, and Canada on energy 
        security issues, including with respect to--
                    (A) identifying policy priorities associated with 
                the development of natural resources of Mexico and 
                Canada;
                    (B) discussing and sharing best practices with 
                respect to securing cyber energy infrastructure and 
                other energy security matters;
                    (C) leveraging natural gas to positively impact 
                regional stability;
                    (D) issues relating to the energy-water nexus, 
                including improving energy efficiency and the overall 
                performance of water technologies through research and 
                development in water desalination, wastewater treatment 
                and reclamation, water treatment in gas and oil 
                production processes, and other water treatment 
                refiners;
                    (E) technical and environmental management of deep-
                water exploration and production;
                    (F) emergency response and coastal protection and 
                restoration;
                    (G) academic outreach and engagement;
                    (H) private sector and business development;
                    (I) regulatory consultations;
                    (J) leveraging alternative transportation fuels and 
                technologies; and
                    (K) any other areas determined appropriate by the 
                governments of the United States, Mexico, and Canada.
    (c) Program To Promote North American Energy Cooperation.--
            (1) In general.--The Secretaries, in consultation with the 
        Secretary of State, the Secretary of Commerce, and the heads of 
        other relevant agencies, shall carry out a program to promote 
        cooperation on energy issues with the governments of Mexico and 
        Canada.
            (2) Activities.--Under the program required by paragraph 
        (1), the Secretaries shall coordinate with the governments of 
        Mexico and Canada--
                    (A) to increase the production of energy supplies;
                    (B) to improve energy efficiency;
                    (C) to assist in the development and transfer of 
                energy supply and efficiency technologies that would 
                have a beneficial impact on world energy markets;
                    (D) to align energy-related regulations to reduce 
                the burden on energy companies conducting trans-border 
                activities and to align regulations and standards in 
                the appropriate sectors;
                    (E) to streamline the United States presidential 
                permitting process to ensure that requirements are 
                consistently implemented by having a fair and reliable 
                process for obtaining presidential permits for trans-
                border energy infrastructure projects;
                    (F) to implement processes for cross-border 
                movement of equipment and workers to avoid delays in 
                business and trade transactions; and
                    (G) to involve States of the United States, states 
                of Mexico, and provinces of Canada in efforts to 
                advance North American energy integration.
            (3) Loans and loan guarantees.--
                    (A) Establishment.--In implementing cooperative 
                agreements with the governments of Mexico and Canada 
                entered into under this subsection, the Secretary of 
                Energy shall establish a program under which the 
                Secretary may provide loans and loan guarantees to 
                support projects relating to the research, development, 
                and commercialization of covered energy sources.
                    (B) Eligible projects.--A project is eligible for a 
                loan or loan guarantee under subparagraph (A) if the 
                project--
                            (i) addresses a requirement relating to 
                        improvement of covered energy sources, as 
                        determined by the Secretary of Energy; and
                            (ii) is a joint venture between--
                                    (I)(aa) a for-profit business 
                                entity, institution of higher education 
                                (as defined in section 101(a) of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1001(a))), National Laboratory (as 
                                defined in section 2 of the Energy 
                                Policy Act of 2005 (42 U.S.C. 15801)), 
                                or nonprofit entity in the United 
                                States; and
                                    (bb) a for-profit business entity, 
                                institution of higher education, or 
                                nonprofit entity in Mexico or Canada; 
                                or
                                    (II) 2 or more of the following:
                                            (aa) The United States 
                                        Government.
                                            (bb) The Government of 
                                        Mexico.
                                            (cc) The Government of 
                                        Canada.
                    (C) Applications.--
                            (i) In general.--An entity seeking a loan 
                        or loan guarantee under subparagraph (A) shall 
                        submit to the Secretary of Energy an 
                        application for the loan or loan guarantee in 
                        accordance with procedures established by the 
                        Secretary, in consultation with the advisory 
                        board established under subparagraph (D).
                            (ii) Loan guarantees.--The Secretary of 
                        Energy shall require any entity seeking a loan 
                        guarantee to pay all credit subsidy costs 
                        associated with the loan guarantee.
                    (D) Advisory board.--
                            (i) Establishment.--The Secretary of Energy 
                        shall establish an advisory board--
                                    (I) to monitor the method by which 
                                loans and loan guarantees are awarded 
                                under subparagraph (A); and
                                    (II) to provide to the Secretary of 
                                Energy periodic performance reviews of 
                                actions taken to carry out this 
                                paragraph.
                            (ii) Composition.--The advisory board 
                        established under clause (i) shall be composed 
                        of 3 members, to be appointed by the Secretary 
                        of Energy, of whom--
                                    (I) 1 shall be a representative of 
                                the United States Government;
                                    (II) 1 shall be selected from a 
                                list of nominees provided by the 
                                Government of Mexico; and
                                    (III) 1 shall be selected from a 
                                list of nominees provided by the 
                                Government of Canada.
                    (E) Contributed funds.--Notwithstanding section 
                3302 of title 31, United States Code, the Secretary of 
                Energy may accept, retain, and use funds contributed by 
                any person, government entity, or organization for 
                purposes of carrying out this paragraph--
                            (i) without further appropriation; and
                            (ii) without fiscal year limitation.
                    (F) Report.--Not later than 180 days after the date 
                of completion of a project for which a loan or loan 
                guarantee is provided under subparagraph (A), the 
                recipient of the loan or loan guarantee shall submit to 
                the Secretary of Energy a report that contains--
                            (i) a description of how the recipient used 
                        the loan or loan guarantee; and
                            (ii) an evaluation of the level of success 
                        of the project for which a loan or loan 
                        guarantee was provided.
    (d) International Partnerships.--
            (1) In general.--The Secretary of Energy may enter into 
        cooperative agreements supporting and enhancing dialogue and 
        planning involving international partnerships between the 
        Department of Energy, including the National Laboratories (as 
        defined in section 2 of the Energy Policy Act of 2005 (42 
        U.S.C. 15801)), and the government of Mexico or Canada.
            (2) Federal share.--The Secretary of Energy may not pay 
        more than 50 percent of the costs of implementing cooperative 
        agreements entered into pursuant to paragraph (1).
            (3) Annual reports.--If the Secretary of Energy enters into 
        agreements authorized by paragraph (1), the Secretary shall, 
        not less frequently than annually, submit to the committees 
        specified in paragraph (4) a report that describes, for the 
        year preceding submission of the report--
                    (A) actions taken to implement such agreements; and
                    (B) any projects undertaken pursuant to such 
                agreements.
            (4) Committees specified.--The committees specified in this 
        paragraph are--
                    (A) the Committee on Energy and Natural Resources, 
                the Committee on Foreign Relations, and the Committee 
                on Appropriations of the Senate; and
                    (B) the Committee on Energy and Commerce, the 
                Committee on Science, Space, and Technology, the 
                Committee on Foreign Affairs, and the Committee on 
                Appropriations of the House of Representatives.
    (e) United States-Mexico-Canada Energy Center.--
            (1) In general.--The Secretary of Energy shall seek to 
        establish, jointly with the governments of Mexico and Canada, a 
        United States-Mexico-Canada Energy Center (in this subsection 
        referred to as the ``Center'') located in the United States.
            (2) Purpose.--The purpose of the Center shall be to further 
        dialogue and collaboration between the United States, Mexico, 
        and Canada to develop more robust academic cooperation with 
        respect to--
                    (A) energy innovation technology and engineering, 
                water science, and technology transfer;
                    (B) analysis of emerging geopolitical dynamics, 
                threats, and crises from acquisitions by foreign 
                governments of natural resources and energy supplies; 
                and
                    (C) the development of domestic resources as a 
                response to those implications, crises, and threats.
            (3) Use of experience and knowledge.--In establishing the 
        Center, the Secretary of Energy shall seek to leverage the 
        experience, knowledge, and expertise of institutions of higher 
        education and entities in the private sector, among others, 
        with respect to offshore energy development.

SEC. 7. STRATEGIC ENERGY FINANCING.

    (a) Strategic Energy and Minerals Portfolio at United States 
International Development Finance Corporation.--Title V of the Better 
Utilization of Investments Leading to Development Act of 2018 (22 
U.S.C. 9671 et seq.) is amended by adding at the end the following:

``SEC. 1455. STRATEGIC ENERGY AND MINERALS PORTFOLIO.

    ``The Corporation--
            ``(1) may provide support under title II for projects 
        related to any type of energy, including fossil fuels, 
        renewables (including hydropower), and nuclear energy, or the 
        production, processing, manufacturing, or recycling of critical 
        minerals (as defined in section 7002(a) of the Energy Act of 
        2020 (30 U.S.C. 1606(a))); and
            ``(2) may not prohibit, restrict, or otherwise impede the 
        provision of support on the basis of the type of energy 
        involved in a project.''.
    (b) Promotion of Energy and Minerals Exports by Export-Import Bank 
of the United States.--
            (1) Strategic energy and minerals portfolio.--The Export-
        Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended by 
        adding at the end the following:

``SEC. 16. STRATEGIC ENERGY AND MINERALS PORTFOLIO.

    ``(a) In General.--The Bank shall establish a strategic energy and 
minerals portfolio focused on providing financing (including loans, 
loan guarantees, and insurance) for civil nuclear energy infrastructure 
projects (subject to subsection (c)), natural gas infrastructure 
projects, and critical minerals projects (including production, 
processing, manufacturing, or recycling), that may facilitate--
            ``(1) increases in exports of United States energy 
        commodities, such as regasification terminals;
            ``(2) the export of United States equipment, materials, and 
        technology; or
            ``(3) the strategic diversification of supply chains 
        critical to the United States economy.
    ``(b) Maximum Exposure Cap for Strategic Energy Portfolio.--
            ``(1) In general.--The aggregate amount of loans, 
        guarantees, and insurance under subsection (a) the Bank has 
        outstanding at any one time may not exceed $50,000,000,000.
            ``(2) Treatment of defaults.--A default on financing 
        provided under subsection (a) shall not--
                    ``(A) be included in the default rate calculated by 
                the Bank under section 8(g)(1); or
                    ``(B) count for purposes of the freeze on lending 
                provided for under section 6(a)(3).
    ``(c) Limitation.--The Bank may provide financing for civil nuclear 
energy infrastructure projects only in countries with which the United 
States has in effect a nuclear cooperation agreement under section 123 
of the Atomic Energy Act of 1954 (42 U.S.C. 2153).
    ``(d) Rule of Construction.--Nothing in this section may be 
construed to lessen the obligation of the Bank to conduct rigorous due 
diligence and mitigate risks with respect to transactions or projects 
for which the Bank provides financing under this section.
    ``(e) Critical Mineral Defined.--In this section, the term 
`critical mineral' has the meaning given the term in section 7002(a) of 
the Energy Act of 2020 (30 U.S.C. 1606(a)).''.
            (2) Promotion of energy exports.--Section 2(b)(1)(C) of the 
        Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(C)) is 
        amended by striking ``nonnuclear renewable'' and inserting 
        ``all''.
            (3) Modification of limitation on financing for nuclear 
        energy exports.--Section 2(b)(5) of the Export-Import Bank Act 
        of 1945 (12 U.S.C. 635(b)(5)) is amended by striking ``any 
        liquid metal fast breeder nuclear reactor or any nuclear fuel 
        reprocessing facility'' and inserting ``any nuclear material, 
        equipment, or technology not provided for under a nuclear 
        cooperation agreement in effect under section 123 of the Atomic 
        Energy Act of 1954 (42 U.S.C. 2153)''.
            (4) Extension of export-import bank.--
                    (A) Aggregate loan, guarantee, and insurance 
                authority.--Section 6(a) of the Export-Import Bank Act 
                of 1945 (12 U.S.C. 635e(a)) is amended--
                            (i) in paragraph (2), by striking ``2020 
                        through 2027, means $135,000,000,000'' and 
                        inserting ``2024 through 2033, means 
                        $200,000,000,000''; and
                            (ii) in paragraph (3), by striking ``If'' 
                        and inserting ``Except as provided in section 
                        16(b)(2), if''.
                    (B) Termination.--Section 7 of the Export-Import 
                Bank Act of 1945 (12 U.S.C. 635f) is amended by 
                striking ``2026'' and inserting ``2033''.
                                 &lt;all&gt;
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