Las Americas Energy Security Act

To establish a lending program for Latin America and the Caribbean to reaffirm the United States commitment to growth and energy security in the Western Hemisphere. 1. Short title This Act may be cited as the “ Las Americas Energy Security Act 2. Findings; purpose; statement of policy (a) Findings Congress finds the following: (1) Energy independence and security are critical for a country to maintain its sovereignty and independence. (2) The International Energy Agency (“IEA”) defines energy security as the uninterrupted availability of energy sources at an affordable price. (3) The IEA defines long-term energy security as primarily dealing with timely investments to supply energy in line with economic developments and environmental needs. (4) The IEA defines short-term energy security as focusing on the ability of a country’s energy system to react promptly to sudden changes in the supply-demand balance. (5) The IEA found in February 2022 that Russia’s unlawful invasion of Ukraine poses serious implications for international energy security. (6) The Intergovernmental Panel on Climate Change (IPCC), a United Nations body that provides regular assessments on climate change, issued its sixth report in February 2022, and found that “human-induced climate change, including more frequent and intense extreme events, has caused widespread adverse impacts and related losses and damages to nature and people, beyond natural climate variability”. (7) The IPCC notes that to avoid mounting loss of life, biodiversity, and infrastructure, we must have ambitious, accelerated action to adapt to climate change, while also making rapid, deep cuts in greenhouse gas emissions. (8) The World Meteorological Organization’s State of the Climate in Latin America and the Caribbean 2020 report found that— (A) widespread drought across Latin America and the Caribbean has had significant impact on inland shipping routes, crop yields, and food production, and consequently led to worsening food insecurity; (B) extreme weather events affected more than 8 million people across Central America, exacerbating food insecurity in countries already crippled by economic shocks, COVID–19 impacts, and conflict; and (C) sea-level rise poses a major risk to low-lying coastal zones in the Latin America and the Caribbean. (9) Rising commodity and energy prices, as well as other global economic shocks such as those caused by natural disasters, pandemics, and conflict, pose a serious food security risk that may lead to social unrest and instability in Latin America and the Caribbean. (b) Sense of Congress It is the sense of Congress that the United States has economic and national security interests in assisting Latin America and the Caribbean to achieve energy security. (c) Statement of policy It is the policy of the United States— (1) to advance United States foreign policy and development goals by helping Latin America and the Caribbean meet its short-term energy needs; (2) to promote the energy security of Latin America and the Caribbean by encouraging the development of accessible, transparent, and competitive energy markets that provide diversified sources, types, and routes of energy, prioritizing renewable energy practices that address challenges posed by climate change; (3) to encourage United States public and private sector investment in Latin American and Caribbean energy infrastructure projects to bridge the gap between energy security requirements and commercial demand in a way that is consistent with the region’s absorptive capacity, and that recognizes the importance of building and widening the absorptive capacity of the region; and (4) to help facilitate the export of United States energy resources, technology, and expertise to global markets in a way that benefits the energy security of Latin America and the Caribbean. 3. Sovereign lending program for eligible Latin American and Caribbean partner countries (a) In general Not later than 30 days after the date of the enactment of this Act, the Secretary of the Treasury, with the concurrence of the Secretary of State, shall establish a sovereign lending program for eligible Latin American and Caribbean partner countries— (1) to support their short-term energy needs; and (2) to fund projects that help them transition to renewable energy. (b) Application To be eligible to receive a loan under the program, an eligible Latin American or Caribbean partner country shall submit to the Secretary of the Treasury an application at such time, in such manner, and containing such information as the Secretary may require. (c) Loan conditions A loan provided under the program— (1) shall be— (A) a zero-interest loan, not to exceed 30 years in duration; or (B) a low-interest concessional loan, not to exceed 50 years in duration; (2) shall not contain any requirements that an eligible Latin American or Caribbean partner country engage in austerity measures or policies that increase poverty and inequality, diminish the quality of life, and threaten the immediate access of goods and services; and (3) shall be subject to such other terms and conditions as the Secretary of Treasury, with the concurrence of the Secretary of State, determines to be appropriate. (d) Report (1) In general Not later than 180 days after the date of the enactment of this Act, and annually thereafter for 5 years, the Secretary of Treasury, with the concurrence of the Secretary of State, shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report on progress in the implementation of the program. (2) Matters to be included The report shall— (A) include a description of how the program strengthens United States national security and economic interests in Latin America and the Caribbean; (B) include an assessment of— (i) the status and effectiveness of current efforts by regional governments, multilateral development banks, and the private sector to promote energy independence and security in Latin America and the Caribbean and to transition to renewable energy practices; (ii) major challenges hindering such efforts; and (iii) how the United States can strengthen the effectiveness of such efforts; (C) identify how activities by the United States Agency for International Development and the United States International Development Finance Corporation can effectively be leveraged to strengthen and promote energy independence and security in Latin America and the Caribbean; (D) assess diplomatic initiatives taken to secure specific national commitments by governments of eligible Latin American and Caribbean partner countries to undertake efforts to create favorable conditions for energy security and independence in the region, address corruption and rule of law concerns, modernize digital and physical infrastructure, improve ease of doing business, and finance and incentivize energy security initiatives; and (E) detail coordination of efforts with relevant multilateral development banks to advance energy security and independence of eligible Latin American and Caribbean partner countries. (e) Annual audit The Secretary of Treasury— (1) shall ensure that a full audit of the program is performed on an annual basis; and (2) shall submit the results of the audit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate. (f) Authorization of appropriations There is authorized to be appropriated to the Secretary of the Treasury $100,000,000 for each of fiscal years 2023 through 2028 to carry out the program. (g) Eligible Latin American or Caribbean partner country defined In this section, the term eligible Latin American or Caribbean partner country (1) a country that— (A) is a beneficiary country for purposes of the Caribbean Basin Economic Recovery Act ( 19 U.S.C. 2701 et seq. (B) is a member state of the Caribbean Community (commonly referred to as CARICOM (C) is a country in the Western Hemisphere that is a party to a free trade agreement or preference program with the United States; or (2) any other country in the Western Hemisphere, as determined to be appropriate by the Secretary of State. 4. Supporting efforts to increase energy security of eligible Latin American and Caribbean partner countries (a) In general The Secretary of State, in consultation with the Secretary of Energy and the heads of other relevant Federal departments and agencies, shall, as appropriate, prioritize and expedite the efforts of the Department of State and those other departments and agencies in supporting the efforts of eligible Latin American and Caribbean partner countries to increase their energy security, including through— (1) providing diplomatic and political support to these governments, as necessary— (A) to facilitate international negotiations concerning cross-border infrastructure and transactions; (B) to enhance and build the Latin America’s and the Caribbean’s regulatory environment with respect to energy; and (C) to develop accessible, transparent, and competitive energy markets supplied by diverse sources, types, and routes of energy to achieve energy efficiency; and (2) providing support to improve Latin American and Caribbean energy markets, including early-stage project support and late-stage project support for the construction or improvement of energy and related infrastructure, as necessary— (A) to diversify the energy sources and supply routes of eligible Latin American and Caribbean partner countries; (B) to enhance energy market integration across the region; and (C) to increase competition and aggregate energy markets. (b) Project selection (1) In general The Federal departments and agencies described in subsection (a) shall identify energy infrastructure projects that would be appropriate for United States assistance under this section. (2) Project eligibility A project is eligible for United States assistance under this section if the project— (A) (i) improves electricity transmission infrastructure and power generation through the use of a broad power mix, prioritizing renewable energy or energy efficiency; or (ii) advances electricity storage projects, smart grid projects, distributed generation models, or other technological innovations, as appropriate; and (B) is located in an eligible Latin American of Caribbean partner country. (3) Preference In selecting among projects that are eligible under paragraph (2), the Federal departments and agencies described in subsection (a) shall give preference to projects that— (A) link the energy systems of two or more Latin American and Caribbean partner countries; (B) address the impacts of climate change; (C) enhance resilience to global economic shocks; (D) are expected to enhance energy market integration; (E) can attract funding from the private sector, an international financial institution, or the government of the country in which the project will be carried out; or (F) have the potential to use United States goods and services during project implementation. (c) Types of assistance (1) Diplomatic and political support The Secretary of State shall provide diplomatic and political support to the governments of eligible Latin American and Caribbean countries, as necessary, including by using the diplomatic and political influence and expertise of the Department of State to build the capacity of those countries to resolve any impediments to the development of projects selected under subsection (b). (2) Early-stage project support The Director of the Trade and Development Agency, in consultation with the Inter-American Development Bank, the Caribbean Development Bank, and the World Bank, shall provide early-stage project support with respect to projects selected under subsection (b), as necessary. (3) Late-stage project support Federal departments and agencies described in subsection (a) that provide late-stage project support shall do so with respect to projects selected under subsection (b), as necessary. (d) Exception from certain limitation under BUILD Act (1) In general For purposes of providing support for projects under this section— (A) the United States International Development Finance Corporation may provide support for projects in countries with upper-middle-income economies or high-income economies (as those terms are defined by the World Bank); (B) the restriction under section 1412(c)(2) of the BUILD Act of 2018 ( 22 U.S.C. 9612(c)(2) (C) the Corporation shall restrict the provision of such support in a country described in subparagraph (A) unless— (i) the President certifies to the appropriate congressional committees that such support furthers the national economic or foreign policy interests of the United States; and (ii) such support is— (I) designed to produce significant developmental outcomes or provide developmental benefits to the poorest population of that country; or (II) necessary to preempt or counter efforts by a strategic competitor of the United States to secure significant political or economic leverage or acquire national security-sensitive technologies or infrastructure in a country that is an ally or partner of the United States. (e) Progress reports Not later than one year after the date of the enactment of this Act, and annually thereafter for seven years, the President shall transmit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report on progress made in providing assistance for projects under this section that includes the following: (1) A description of the energy infrastructure projects the United States has identified for such assistance. (2) For each such project— (A) A description of the role of the United States in the project, including in early-stage project support and late-stage project support; (B) the amount and form of any debt financing and insurance provided by the United States Government for the project; (C) the amount and form of any early-stage project support; and (D) an update on the progress made on the project as of the date of the report. (f) Eligible Latin American or Caribbean partner country defined In this section, the term eligible Latin American or Caribbean partner country

Summary: Las Americas Energy Security Act This bill establishes a sovereign lending program for eligible Latin American and Caribbean partner countries to support such countries' short-term energy needs and fund projects to transition to renewable energy. The bill also directs the Department of State to prioritize and expedite U.S. government support for such countries' efforts to increase energy security, including by providing support for projects that improve Latin American and Caribbean energy markets.