550 
assigned to the Coordinator for Counterterrorism or 
to the Office of the Coordinator for Counterter-
rorism to the Assistant Secretary or other senior of-
ficial designated by the Secretary of State under 
paragraph (1) or to the Bureau of Counterterrorism 
(as the case may be).’’. 
(b) CONFORMING AMENDMENT.—Section 5315 of 
title 5, United States Code, is amended in the item relat-
ing to Assistant Secretaries of State, by striking ‘‘(24)’’ 
and inserting ‘‘(25)’’. 
TITLE VI—SUSTAINING THE 
GLOBAL ENVIRONMENT 
SEC. 6001. FINDINGS AND STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) 
Sound 
natural 
resource 
management, 
healthy ecosystems, and biological diversity are vital 
to alleviating poverty in developing countries that 
depend on natural resources for water, food, medi-
cine, energy, household products, and tourism and 
trade. 
(2) Proper management and protection of nat-
ural resources can mitigate instability, conflict, and 
corruption in many developing countries. 
(3) Poaching and the illegal trafficking of wild-
life represent significant threats to preserving bio-
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551 
logical diversity and can lead to crime and corrup-
tion. 
(4) Establishing protected areas can preserve 
wildlife and plant species from degradation and 
guard against the illegal wildlife trade. 
(5) Strengthening the indigenous capacity of 
partner countries to manage their natural resources 
improves the long-term sustainability of conservation 
programs and is essential for economic growth in de-
veloping countries. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to work in cooperation with the inter-
national community, including nongovernmental organiza-
tions, to reduce biodiversity loss, adapt to and mitigate 
climate change, and integrate principles of environmental 
sustainability into policies and programs for international 
development. 
Subtitle A—Debt-for-Nature 
Exchanges 
SEC. 6101. FINDINGS AND STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) Poverty and economic pressures on the pop-
ulations of developing countries have led to environ-
mental degradation that exacerbate existing chal-
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552 
lenges and imperil long-term, sustainable develop-
ment. 
(2) Debt reduction can reduce economic pres-
sures on developing countries and provide funds for 
environmental conservation and development. 
(3) Identifying and developing economic bene-
fits to local communities from sustainable use of the 
environment is critical to the protection of eco-
systems and to overall development. 
(4) Tropical forests provide a wide range of 
benefits to humankind by— 
(A) harboring a major share of the Earth’s 
biological and terrestrial resources, which are 
the basis for developing pharmaceutical prod-
ucts and revitalizing agricultural crops; 
(B) playing a critical role as carbon sinks 
in reducing greenhouse gases in the atmos-
phere, thus moderating potential global climate 
change; and 
(C) regulating hydrological cycles on which 
far-flung agricultural and coastal resources de-
pend. 
(5) Coral reefs and associated coastal marine 
ecosystems provide a wide range of benefits to hu-
mankind by— 
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(A) harboring more species per unit area 
than any other marine habitat, providing the 
basis for developing pharmaceutical products 
and fostering a growing marine tourism sector; 
(B) providing a major source of food and 
jobs for hundreds of millions of coastal resi-
dents; and 
(C) serving as natural storm barriers, thus 
protecting vulnerable shorelines and commu-
nities from storm waves and erosion. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to work in cooperation with partner coun-
tries and nongovernmental organizations to protect and 
sustainably manage tropical forests, coral reefs, and other 
natural ecosystems, including through debt-for-nature ex-
changes. 
SEC. 6102. DEFINITIONS. 
As used in this subtitle: 
(1) ADMINISTERING BODY.—The term ‘‘admin-
istering body’’ means the entity provided for in sec-
tion 6107(c). 
(2) PARTNER
COUNTRY.—The term ‘‘partner 
country’’ means an eligible country with respect to 
which the authority of paragraph (1) or (2) of sec-
tion 6105(a) or section 6106(a)(1) is exercised. 
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554 
(3) 
DEBT-FOR-NATURE
AGREEMENT.—The 
term ‘‘Debt-for-Nature Agreement’’ or ‘‘Agreement’’ 
means a Debt-for-Nature Agreement provided for in 
section 6107. 
(4) DEBT-FOR-NATURE
FACILITY.—The term 
‘‘Debt-for-Nature Facility’’ or ‘‘Facility’’ means the 
Debt-for-Nature Facility established in the Depart-
ment of the Treasury by section 6103. 
(5) 
DEBT-FOR-NATURE
FUND.—The 
term 
‘‘Debt-for-Nature Fund’’ or ‘‘Fund’’ means a Debt- 
for-Nature Fund provided for in section 6109. 
(6) ELIGIBLE
COUNTRY.—The term ‘‘eligible 
country’’ means a country described in section 6104. 
SEC. 6103. ESTABLISHMENT OF THE FACILITY. 
There is established in the Department of the Treas-
ury an entity to be known as the ‘‘Debt-for-Nature Facil-
ity’’ for the purpose of providing for the administration 
of debt reduction in accordance with this subtitle. 
SEC. 6104. ELIGIBILITY FOR BENEFITS. 
To be eligible for benefits from the Facility under this 
subtitle, a country shall be a developing country the gov-
ernment of which— 
(1) is democratically elected; 
(2) does not support acts of international ter-
rorism; 
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555 
(3) does not engage in a consistent pattern of 
gross violations of internationally recognized human 
rights; 
(4) has in effect, has received approval for, or, 
as appropriate in exceptional circumstances, is mak-
ing significant progress toward— 
(A) an International Monetary Fund 
standby arrangement, extended International 
Monetary Fund arrangement, or an arrange-
ment under the structural adjustment facility or 
enhanced structural adjustment facility, or in 
exceptional circumstances, an International 
Monetary Fund-monitored program or its 
equivalent, unless the President determines that 
such an arrangement or program (or its equiva-
lent) could reasonably be expected to have sig-
nificant adverse social or environmental effects; 
and 
(B) as appropriate, structural or sectoral 
adjustment loans from the International Bank 
for Reconstruction and Development or the 
International Development Association, unless 
the President determines that the resulting ad-
justment requirements could reasonably be ex-
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556 
pected to have significant adverse social or envi-
ronmental effects; and 
(5) if appropriate, has agreed with its commer-
cial bank lenders on a satisfactory financing pro-
gram, including, as appropriate, debt or debt service 
reduction. 
SEC. 6105. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE 
SWAPS AND DEBT BUYBACKS. 
(a) LOANS AND CREDITS ELIGIBLE FOR SALE, RE-
DUCTION, OR CANCELLATION.— 
(1) DEBT-FOR-NATURE SWAPS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the President may, in 
accordance with this section, sell to any eligible 
purchaser described in subparagraph (B) any 
concessional loans described in section 6106 or 
any credits described in section 6106, or on re-
ceipt of payment from an eligible purchaser de-
scribed in subparagraph (B), reduce or cancel 
such loans (or credits) or portion thereof under 
an Agreement, only for the purpose of facili-
tating a debt-for-nature swap to support eligible 
activities described in section 6108. 
(B) ELIGIBLE
PURCHASER.—A loan or 
credit may be sold, reduced, or canceled under 
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557 
subparagraph (A) only to a purchaser who pre-
sents plans satisfactory to the President for 
using the loan or credit for the purpose of en-
gaging in debt-for-nature swaps to support eli-
gible activities described in section 6108. 
(2) DEBT
BUYBACKS.—Notwithstanding any 
other provision of law, the President may, in accord-
ance with this section, sell to any eligible country 
any concessional loans described in section 6106 or 
any credits described in section 6106, or on receipt 
of payment from an eligible country, reduce or can-
cel such loans (or credits) or portion thereof under 
an Agreement, only for the purpose of facilitating a 
debt buyback by an eligible country of its own quali-
fied debt, only if the eligible country uses an addi-
tional amount of the local currency of the eligible 
country, equal to not less than the lesser of 40 per-
cent of the price paid for such debt by such eligible 
country, or the difference between the price paid for 
such debt and the face value of such debt, to sup-
port eligible activities described in section 6108. 
(3) LIMITATION.—The authority provided by 
paragraphs (1) and (2) shall be available only to the 
extent that appropriations for the cost (as defined in 
section 502(5) of the Federal Credit Reform Act of 
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558 
1990) of the modification of any debt pursuant to 
such paragraphs are made in advance. 
(4) TERMS AND CONDITIONS.—Notwithstanding 
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and 
conditions under which loans and credits may be 
sold, reduced, or canceled pursuant to this section. 
(5) ADMINISTRATION.— 
(A) IN GENERAL.—When the President de-
termines a purchaser to be an eligible purchaser 
pursuant to paragraph (1)(B), the Adminis-
trator or the Secretary of Agriculture, as the 
case may be, shall carry out the sale, reduction, 
or cancellation of a loan pursuant to such para-
graph. 
(B) ADDITIONAL REQUIREMENT.—The Ad-
ministrator or Secretary of Agriculture, as the 
case may be, shall make an adjustment in its 
accounts to reflect the sale, reduction, or can-
cellation. 
(b) DEPOSIT OF PROCEEDS.—The proceeds from the 
sale, reduction, or cancellation of any loan sold, reduced, 
or canceled pursuant to this section shall be deposited in 
the United States Government account or accounts estab-
lished for the repayment of such loan. 
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559 
SEC. 6106. REDUCTION OF DEBT OWED TO THE UNITED 
STATES AS A RESULT OF CONCESSIONAL 
LOANS OR CREDITS UNDER THIS ACT AND 
CERTAIN OTHER PROVISIONS OF LAW. 
(a) AUTHORITY TO REDUCE DEBT.— 
(1) AUTHORITY.—The President may reduce 
the amount owed to the United States (or any Fed-
eral agency) that is outstanding as of the date of the 
enactment of this Act as a result of concessional 
loans or credits made to an eligible country by the 
United States under this Act, the Foreign Assist-
ance Act of 1961 (as such Act was in effect on the 
day before the date of the enactment of this Act), 
title I of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1701 et seq.), or 
predecessor foreign economic assistance legislation. 
(2) CERTAIN PROHIBITIONS INAPPLICABLE.—A 
reduction of debt pursuant to this section shall not 
be considered foreign assistance for purposes of any 
provision of law limiting assistance to a country. 
(b) IMPLEMENTATION OF DEBT REDUCTION.— 
(1) IN GENERAL.—Any debt reduction pursuant 
to subsection (a) shall be accomplished at the direc-
tion of the Facility under an Agreement by the ex-
change of a new obligation for obligations of the 
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560 
type referred to in subsection (a) outstanding as of 
the date specified in subsection (a)(1). 
(2) EXCHANGE OF OBLIGATIONS.— 
(A) IN GENERAL.—The Facility shall no-
tify the Administrator or the Secretary of Agri-
culture of an agreement entered into under 
paragraph (1) with an eligible country to ex-
change a new obligation for outstanding obliga-
tions. 
(B) ADDITIONAL REQUIREMENT.—At the 
direction of the Facility, the old obligations that 
are the subject of the Agreement shall be can-
celed and a new debt obligation for the country 
shall be established relating to the Agreement, 
and the Administrator or the Secretary of Agri-
culture, as the case may be, shall make an ad-
justment in the respective agency’s accounts to 
reflect the debt reduction. 
(c) ADDITIONAL TERMS AND CONDITIONS.— 
(1) REPAYMENT OF PRINCIPAL.—The principal 
amount of each new obligation issued pursuant to 
subsection (b) shall be repaid in United States dol-
lars. 
(2) DEPOSIT OF PAYMENTS.—Principal repay-
ments of new obligations shall be deposited in the 
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561 
United States Government account established for 
principal repayments of the obligations for which 
those obligations were exchanged. 
(d) INTEREST.—Principal repayments of new obliga-
tions shall be deposited in the United States Government 
account established for principal repayments of the obliga-
tions for which those obligations were exchanged. 
(1) RATE OF INTEREST.—Each new obligation 
issued by a partner country pursuant to subsection 
(b) shall bear interest at a concessional rate. 
(2) CURRENCY OF INTEREST PAYMENT; DEPOS-
ITS.— 
(A) LOCAL
CURRENCY.—If the partner 
country has entered into a Debt-for-Nature 
Agreement, interest shall be paid in the local 
currency of the partner country and deposited 
in the Debt-for-Nature Fund of such country. 
Such interest shall be the property of the part-
ner country, until such time as it is disbursed 
pursuant to section 6109(b)(3). Such local cur-
rencies shall be used for the purposes specified 
in the Agreement. 
(B) UNITED
STATES
DOLLARS.—If the 
partner country has not entered into a Debt- 
for-Nature Agreement, interest shall be paid in 
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562 
United States dollars and deposited in the 
United States Government account established 
for interest payments of the obligations for 
which the new obligations were exchanged. 
(3) INTEREST
ALREADY
PAID.—If a partner 
country enters into a Debt-for-Nature Agreement 
subsequent to the date on which interest first be-
came due on the newly issued obligation, any inter-
est already paid on such new obligation shall not be 
redeposited into the Debt-for-Nature Fund estab-
lished for that country. 
SEC. 6107. DEBT-FOR-NATURE AGREEMENT. 
(a) AUTHORITY.—The President is authorized to 
enter into a Debt-for-Nature Agreement with any eligible 
country concerning the operation and use of the Debt-for- 
Nature Fund for the country. 
(b) CONTENTS
OF AGREEMENT.—An Agreement 
with an eligible country shall— 
(1) require— 
(A) the establishment of a Fund for the 
country; or 
(B) in the case of a country with respect 
to which a fund has been established under part 
IV (relating to Enterprise for the Americas Ini-
tiative) or part V (relating to debt reduction for 
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563 
developing countries with tropical forests) of the 
Foreign Assistance Act of 1961 (as such Act 
was in effect on the day before the date of the 
enactment of this Act), the continued utilization 
of such fund; 
(2) require the country to make prompt dis-
bursements from the Fund to the administering 
body described in subsection (c); 
(3) when appropriate, seek to maintain the 
value of the local currency resources of the Fund in 
terms of United States dollars; 
(4) contain reasonable provisions for the en-
forcement of the terms of the Agreement; and 
(5) establish criteria and priorities guiding the 
disbursement of grants consistent with the eligible 
activities in section 6108. 
(c) ADMINISTERING BODY.— 
(1) IN GENERAL.—Amounts disbursed from the 
Fund in each partner country shall be administered 
by a body constituted under the laws of that coun-
try. 
(2) COMPOSITION.— 
(A) IN GENERAL.—The administering body 
shall consist of— 
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564 
(i) one or more individuals appointed 
by the United States Government; 
(ii) one or more individuals appointed 
by the government of the partner country; 
and 
(iii) individuals who represent a broad 
range of— 
(I) 
environmental 
nongovern-
mental organizations of, or active in, 
the partner country; 
(II) local community development 
nongovernmental organizations of the 
partner country; and 
(III) scientific, academic, or in-
stitutions of the partner country. 
(B) ADDITIONAL
REQUIREMENT.—A ma-
jority of the members of the administering body 
shall be individuals described in subparagraph 
(A)(iii). 
(3) 
RESPONSIBILITIES.—The 
administering 
body shall— 
(A) receive proposals for grant assistance 
from eligible grant recipients (as determined 
under subsection (d)) and make grants to eligi-
ble grant recipients in accordance with the pri-
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565 
orities agreed upon in the Agreement, con-
sistent with section 6108; 
(B) be responsible for the management of 
the program and oversight of grant activities 
funded from resources of the Fund; 
(C) consult with local communities on the 
planning, development, and implementation of 
plans, programs, and activities associated with 
the disbursements of grants; 
(D) be subject, on an annual basis, to an 
audit of financial statements conducted in ac-
cordance with generally accepted auditing 
standards by an independent auditor; 
(E) be required to grant to representatives 
of the United States Government Accountability 
Office such access to books and records associ-
ated with operations of the Fund as the Comp-
troller General of the United States may re-
quest; and 
(F) present an annual plan on activities 
for the upcoming year for review and an annual 
report on the activities the administering body 
undertook during the previous year to the Sec-
retary of State, the Secretary of the Treasury, 
the Administrator, the government of the part-
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566 
ner country, and, if appropriate, the nongovern-
mental organization. 
(d) GRANT RECIPIENTS.— 
(1) IN GENERAL.—Grants made from the Fund 
shall be made to— 
(A) nongovernmental environmental, for-
estry, conservation, and indigenous peoples or-
ganizations of, or active in, the partner country; 
(B) other appropriate local or regional en-
tities of, or active in, the partner country; or 
(C) in exceptional circumstances, the gov-
ernment of the partner country. 
(2) PRIORITY.—In providing grants under 
paragraph (1), priority shall be given to projects 
that are run by local nongovernmental organizations 
and other private entities and that involve local com-
munities in their planning and execution. 
(e) REVIEW
OF LARGER GRANTS.—Any grant of 
more than $250,000 from a Fund shall be subject to ap-
proval by the Government of the United States and the 
government of the partner country. 
(f) ELIGIBILITY CRITERIA.—In the event that a 
country ceases to meet the eligibility requirements set 
forth in section 6104, then grants from the Fund for that 
country may only be made to nongovernmental organiza-
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567 
tions until such time as the country meets the eligibility 
requirements set forth in section 6104. 
(g) USE OF FUNDS TO CONDUCT PROGRAM AUDITS 
AND EVALUATION.—Of the amounts made available to 
carry out this subtitle for a fiscal year, up to one percent 
is authorized to be made available to carry out audits, 
evaluations, monitoring, and administration of programs 
under this subtitle, including personnel costs associated 
with such audits, evaluations, monitoring, and administra-
tion. 
(h) CONGRESSIONAL NOTIFICATION.—The President 
shall notify the appropriate congressional committees of 
the President’s intention to enter into an Agreement with 
an eligible country at least 15 days in advance of entering 
into such Agreement. 
SEC. 6108. ELIGIBLE ACTIVITIES. 
(a) IN GENERAL.—Grants made from the Fund shall 
be used for— 
(1) restoration, conservation, or sustainable use 
of terrestrial and marine animal and plant species; 
(2) establishment, restoration, protection, and 
maintenance of parks, protected areas, and reserves; 
(3) development and implementation of scientif-
ically sound systems of natural resource manage-
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568 
ment, including land and water and ecosystem man-
agement practices; 
(4) development and implementation of pro-
grams to address the effects of climate change on 
environmental resources; 
(5) training programs to strengthen conserva-
tion institutions and increase scientific, technical, 
and managerial capabilities of local individuals and 
organizations involved in conservation efforts; or 
(6) research and identification of medicinal uses 
of plant life to treat human diseases, illnesses, and 
health related concerns. 
(b) PRIORITIZING ACTIVITIES.—In cooperation with 
the partner country and nongovernmental organizations, 
the President shall seek to identify those areas, which be-
cause of an imminent threat, are in particular need of im-
mediate attention to prevent the loss of unique biological 
life or valuable ecosystem. 
SEC. 6109. DEBT-FOR-NATURE FUND. 
(a) ESTABLISHMENT.—Each partner country that 
enters into a Debt-for-Nature Agreement under section 
6107 shall be required to establish a Debt-for-Nature 
Fund to receive payments of interest and principal on new 
obligations undertaken by the partner country under this 
subtitle. 
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569 
(b) REQUIREMENTS RELATING TO OPERATION OF 
FUND.—The following terms and conditions shall apply 
to the Fund: 
(1) DEPOSITS.—Local currencies deposited in 
the Fund shall not be considered foreign assistance 
for purposes of any provision of law limiting assist-
ance to a country. 
(2) INVESTMENT.—Deposits made in the Fund 
shall be invested until disbursed. Any return on such 
investment may be retained by the Fund, without 
deposit in the Treasury of the United States and 
without further appropriation by Congress. 
(3) DISBURSEMENTS.—Funds in the Fund 
shall be disbursed pursuant to a Debt-for-Nature 
Agreement authorized under section 6107. 
SEC. 6110. RESPONSIBILITIES TO THE CONGRESS. 
(a) CONSULTATIONS WITH
THE CONGRESS.—The 
President shall consult with the appropriate congressional 
committees on a periodic basis to review the operation of 
the Facility under this subtitle and the eligibility of coun-
tries for benefits from the Facility under this subtitle. 
(b) REPORT TO CONGRESS.—Not later than Decem-
ber 31 of each year, the President shall prepare and trans-
mit to Congress an annual report concerning the oper-
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570 
ations of the Debt-for-Nature Facility under this subtitle 
for the prior fiscal year. Such report shall include— 
(1) a description of the activities undertaken by 
such Facility during the previous fiscal year; 
(2) a description of any Agreement entered into 
under this subtitle; 
(3) a report on Debt-for-Nature Funds that 
have been established under this subtitle and on the 
operations of such Funds; and 
(4) a description of any grants that have been 
provided by administering bodies pursuant to Debt- 
for-Nature Agreements under this subtitle. 
SEC. 6111. GENERAL SAVINGS CLAUSE. 
An agreement in effect on the day before the date 
of the enactment of this Act under part IV (relating to 
Enterprise for the Americas Initiative) or part V (relating 
to debt reduction for developing countries with tropical 
forests) of the Foreign Assistance Act of 1961 (as such 
parts were in effect on the day before the date of the en-
actment of this Act) shall remain in effect subject to the 
terms and conditions under such agreement. 
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571 
Subtitle B—Commercial Debt-for- 
Nature Exchanges 
SEC. 6201. COMMERCIAL DEBT-FOR-NATURE EXCHANGE 
DEFINED. 
For purposes of this subtitle, the term ‘‘commercial 
debt-for-nature exchange’’ means the cancellation or re-
demption of the foreign debt of the government of a coun-
try in exchange for— 
(1) the government’s making available local cur-
rencies (including through the issuance of bonds) 
that are used only for eligible projects involving the 
conservation or protection of the environment in that 
country (as described in section 6203); 
(2) the government’s financial resource or pol-
icy commitment to take certain specified actions to 
ensure the restoration, protection, or sustainable use 
of natural resources within that country; or 
(3) a combination of assets and actions under 
both paragraphs (1) and (2). 
SEC. 6202. AUTHORIZATION FOR COMMERCIAL DEBT EX-
CHANGES. 
(a) IN GENERAL.—The Administrator is authorized 
to provide grants, on such terms and conditions as the 
Administrator may determine, to nongovernmental organi-
zations for the purchase on the open market of discounted 
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commercial debt of a foreign government of an eligible 
country described in section 6204 which will be canceled 
or redeemed under agreed upon terms with that govern-
ment as part of a commercial debt-for-nature exchange. 
(b) INTEREST.—Notwithstanding any other provision 
of law, a grantee (or any subgrantee) of the grants re-
ferred to in subsection (a) may retain, without deposit in 
the Treasury of the United States and without further ap-
propriation by Congress, interest earned on the proceeds 
of any resulting commercial debt-for-nature exchange 
pending the disbursements of such proceeds and interest 
for approved program purposes, which may include the es-
tablishment of an endowment, the income of which is used 
for such purposes. 
SEC. 6203. ELIGIBLE PROJECTS. 
(a) IN GENERAL.—The Administrator shall seek to 
ensure that commercial debt-for-nature exchanges under 
this subtitle support one or more of the eligible activities 
listed in section 6108 by either the relevant government, 
a local private conservation group, or a combination there-
of. 
(b) IDENTIFICATION OF CERTAIN AREAS.—In co-
operation with nongovernmental organizations and the rel-
evant country, the Administrator shall seek to identify 
those areas, which because of an imminent threat, are in 
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