SECTION 1. DEBT REDUCTION FOR DEVELOPING COUN-
TRIES 
WITH 
CORAL 
REEFS 
AND 
OTHER
COASTAL MARINE RESOURCES.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by adding at the end the following:
‘‘PART VI—DEBT REDUCTION FOR DEVELOPING
COUNTRIES WITH CORAL REEFS AND OTHER
COASTAL MARINE RESOURCES
‘‘SEC. 901. SHORT TITLE.
‘‘This part may be cited as the ‘Coral Reef and
Coastal Marine Conservation Act of 2001’.
‘‘SEC. 902. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress finds the following:
‘‘(1) It is the established policy of the United
States to support and seek the protection and res-
toration of natural coastal marine areas, in par-
ticular coral reefs and other critically imperiled
coastal marine resources around the world, as dem-
onstrated by the establishment of the United States
Government’s Coral Reef Task Force under Execu-
tive Order 13089 (June 11, 1998) and by the em-
phasis given to coral reefs at the Conference on
Oceans held in Monterey, California.
‘‘(2) Coral reefs and other coastal marine re-
sources provide a wide range of benefits to mankind
by—
‘‘(A) harboring a major share of the
world’s marine biological diversity, and by act-
ing as seed-grounds and nurseries for many
deep-sea species; and
‘‘(B) serving as the basis for major activi-
ties of critical economic, social, and cultural im-
portance, including fishing, pharmaceutical re-
search, recreation, tourism, and the natural pu-
rification and recharge of waters.
‘‘(3) International organizations and assistance
programs to conserve coral reefs and other coastal
marine resources have proliferated in recent years,
but the rapid destruction of these resources nonethe-
less continues in many countries.
‘‘(4) Poverty and economic pressures on many
developing countries, including the burden of official
debts, has promoted inefficient, unsustainable over-
exploitation of coral reefs and other coastal marine
resources, while also denying necessary funds to pro-
tection efforts.
‘‘(5) Reduction of official, government-to-gov-
ernment debts can help reduce economic pressures
for over-exploitation of coral reefs and other coastal
marine resources and can mobilize additional re-
sources for their protection.
‘‘(b) PURPOSES.—The purposes of this part are—
‘‘(1) to recognize the values received by United
States citizens from protection of coral reefs and
other coastal marine resources;
‘‘(2) to facilitate greater protection of remain-
ing coral reefs and other coastal marine resources,
and the recovery of damaged areas, by providing for
the alleviation of debt in countries where these re-
sources are located, thus allowing for the use of ad-
ditional resources to protect and restore such coral
reefs and other coastal marine resources, and to re-
duce 
economic 
pressures 
that 
have 
led 
to
unsustainable exploitation; and
‘‘(3) to ensure that resources freed from debt in
such countries are rechanneled to protection of coral
reefs and other coastal marine resources.
‘‘SEC. 903. DEFINITIONS.
‘‘In this part:
‘‘(1) ADMINISTERING BODY.—The term ‘admin-
istering body’ means the entity provided for in sec-
tion 908(c).
‘‘(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means—
‘‘(A) the Committee on International Rela-
tions and the Committee on Appropriations of
the House of Representatives; and
‘‘(B) the Committee on Foreign Relations
and the Committee on Appropriations of the
Senate.
‘‘(3) BENEFICIARY COUNTRY.—The term ‘bene-
ficiary country’ means an eligible country with re-
spect to which the authority of section 906(a) or
paragraph (1) or (2) of section 907(a) of this part
is exercised.
‘‘(4) BOARD.—The term ‘Board’ means the
board referred to in section 910.
‘‘(5) CORAL.—The term ‘coral’ means species
of the phylum Cnidaria, including—
‘‘(A) all species of the orders Antipatharia
(black corals), Scleractinia (stony corals),
Alcyonacea (soft corals), Gorgonacea (horny
corals), Stolonifera (organpipe corals and oth-
ers), and Coenothecalia (blue coral), of the class
Anthozoa; and
‘‘(B) 
all 
species 
of 
the 
order
Hydrocorallina (fire corals and hydrocorals) of
the class Hydrozoa.
‘‘(6) CORAL
REEF.—The term ‘coral reef’
means any reef or shoal composed primarily of cor-
als.
‘‘(7) DEVELOPING
COUNTRY
WITH
A
CORAL
REEF OR OTHER COASTAL MARINE RESOURCE.—The
term ‘developing country with a coral reef or other
coastal marine resource’ means—
‘‘(A)(i) a country that has a per capita in-
come of $725 or less in 1994 United States dol-
lars (commonly referred to as ‘low-income coun-
try’), as determined and adjusted on an annual
basis by the International Bank for Reconstruc-
tion and Development in its World Development
Report; or
‘‘(ii) a country that has a per capita in-
come of more than $725 but less than $8,956
in 1994 United States dollars (commonly re-
ferred to as ‘middle-income country’), as deter-
mined and adjusted on an annual basis by the
International Bank for Reconstruction and De-
velopment in its World Development Report;
and
‘‘(B) a country that contains at least one
coral reef or other coastal marine resource that
is of conservation concern.
‘‘(8) ELIGIBLE COUNTRY.—The term ‘eligible
country’ means a country designated by the Presi-
dent in accordance with section 905.
‘‘(9) CORAL REEF AND OTHER COASTAL MA-
RINE
RESOURCES
AGREEMENT.—The term ‘Coral
Reef and Other Coastal Marine Resources Agree-
ment’ or ‘Agreement’ means an Coral Reef and
Other Coastal Marine Resources Agreement as pro-
vided for in section 908.
‘‘(10) CORAL REEF AND OTHER COASTAL MA-
RINE RESOURCES FACILITY.—The term ‘Coral Reef
and Other Coastal Marine Resources Facility’ or
‘Facility’ means the Coral Reef and Other Coastal
Marine Resources Facility established in the Depart-
ment of the Treasury by section 904.
‘‘(11) CORAL REEF AND OTHER COASTAL MA-
RINE RESOURCES FUND.—The term ‘Coral Reef and
Other Coastal Marine Resources Fund’ or ‘Fund’
means a Coral Reef and Other Coastal Marine Re-
sources Fund provided for in section 909.
‘‘SEC. 904. ESTABLISHMENT OF THE FACILITY.
There is established in the Department of the Treas-
ury an entity to be known as the ‘Coral Reef and Other
Coastal Marine Resources Facility’ for the purpose of pro-
viding for the administration of debt reduction in accord-
ance with this part.
‘‘SEC. 905. ELIGIBILITY FOR BENEFITS.
‘‘(a) IN GENERAL.—To be eligible for benefits from
the Facility under this part, a country shall be a devel-
oping country with a coral reef or other coastal marine
resource—
‘‘(1) the government of which meets the re-
quirements applicable to Latin American or Carib-
bean countries under paragraphs (1) through (5)
and (7) of section 703(a) of this Act; and
‘‘(2) that has established investment reforms,
as evidenced by the conclusion of a bilateral invest-
ment treaty with the United States, implementation
of an investment sector loan with the Inter-Amer-
ican Development Bank, World Bank-supported in-
vestment reforms, or other measures, as appropriate.
‘‘(b) ELIGIBILITY DETERMINATIONS.—
‘‘(1) IN GENERAL.—Consistent with subsection
(a), the President shall determine whether a country
is eligible to receive benefits under this part.
‘‘(2) 
CONGRESSIONAL
NOTIFICATION.—The
President shall notify the appropriate congressional
committees of the intention of the President to des-
ignate a country as an eligible country at least 15
days in advance of any formal determination.
‘‘SEC. 906. REDUCTION OF DEBT OWED TO THE UNITED
STATES AS A RESULT OF CONCESSIONAL
LOANS UNDER THIS ACT.
‘‘(a) AUTHORITY TO REDUCE DEBT.—
‘‘(1) AUTHORITY.—The President may reduce
the amount owed to the United States (or any agen-
cy of the United States) that is outstanding as of
January 1, 1999, as a result of concessional loans
made to an eligible country by the United States
under this Act or predecessor foreign economic as-
sistance legislation.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
For the cost (as defined in section 502(5) of the
Federal Credit Reform Act of 1990) for the reduc-
tion of any debt pursuant to this section, there are
authorized to be appropriated to the President
$10,000,000 for each of the fiscal years 2002
through 2005.
‘‘(3) CERTAIN PROHIBITIONS INAPPLICABLE.—
‘‘(A) IN GENERAL.—A reduction of debt
pursuant to this section shall not be considered
assistance for purposes of any provision of law
limiting assistance to a country.
‘‘(B) ADDITIONAL
REQUIREMENT.—The
authority of this section may be exercised not-
withstanding section 620(r) of this Act or sec-
tion 321 of the International Development and
Food Assistance Act of 1975.
‘‘(b) IMPLEMENTATION OF DEBT REDUCTION.—
‘‘(1) IN GENERAL.—Any debt reduction pursu-
ant to subsection (a) shall be accomplished at the di-
rection of the Facility by the exchange of a new obli-
gation for obligations of the type referred to in sub-
section (a) outstanding as of the date specified in
subsection (a)(1).
‘‘(2) EXCHANGE OF OBLIGATIONS.—
‘‘(A) IN GENERAL.—The Facility shall no-
tify the United States Agency for International
Development of an agreement entered into
under paragraph (1) with an eligible country to
exchange a new obligation for outstanding obli-
gations.
‘‘(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 United States Agency for International
Development shall make an adjustment in its
accounts to reflect the debt reduction.
‘‘(c) ADDITIONAL TERMS
AND CONDITIONS.—The
following additional terms and conditions shall apply to
the reduction of debt under subsection (a)(1) in the same
manner as such terms and conditions apply to the reduc-
tion of debt under section 704(a)(1) of this Act:
‘‘(1) The provisions relating to repayment of
principal under section 705 of this Act.
‘‘(2) The provisions relating to interest on new
obligations under section 706 of this Act.
‘‘SEC. 907. 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
906(a)(1), or on receipt of payment from an eli-
gible purchaser described in subparagraph (B),
reduce or cancel such loans or portion thereof,
only for the purpose of facilitating a debt-for-
nature swap to support eligible activities de-
scribed in section 908(d).
‘‘(B) ELIGIBLE PURCHASER DESCRIBED.—
A loan may be sold, reduced, or canceled under
subparagraph (A) only to a purchaser who pre-
sents plans satisfactory to the President for
using the loan for the purpose of engaging in
debt-for-nature swaps to support eligible activi-
ties described in section 908(d).
‘‘(C) CONSULTATION REQUIREMENT.—Be-
fore the sale under subparagraph (A) to any eli-
gible purchaser described in subparagraph (B),
or any reduction or cancellation under such
subparagraph (A), of any loan made to an eligi-
ble country, the President shall consult with the
country concerning the amount of loans to be
sold, reduced, or canceled and their uses for
debt-for-nature swaps to support eligible activi-
ties described in section 908(d).
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—For the cost (as defined in section
502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to
subparagraph (A), amounts authorized to be
appropriated under section 906(a)(2) shall be
made available for such reduction of debt pur-
suant to subparagraph (A).
‘‘(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
906(a)(1), or on receipt of payment from an eligible
purchaser described in paragraph (1)(B), reduce or
cancel such loans or portion thereof, only for the
purpose of facilitating a debt buyback by an eligible
country of its own qualified debt, only if the eligible
country uses an additional amount of the local cur-
rency of the eligible country, equal to not less than
the lessor of 40 percent of the price paid for such
debt by such eligible country, or the difference be-
tween the price paid for such debt and the face value
of such debt, to support eligible activities described
in section 908(d).
‘‘(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
1990) of the modification of any debt pursuant to
such paragraphs are made in advance.
‘‘(4) 
TERMS
AND
CONDITIONS.—Notwith-
standing any other provision of law, the President
shall, in accordance with this section, establish the
terms and conditions under which loans may be sold,
reduced, or canceled pursuant to this section.
‘‘(5) ADMINISTRATION.—
‘‘(A) IN GENERAL.—The Facility shall no-
tify the Administrator of the United States
Agency for International Development of eligi-
ble purchasers described in paragraph (1)(B)
that the President has determined to be eligible
under paragraph (1), and shall direct such
agency to carry out the sale, reduction, or can-
cellation of a loan pursuant to such paragraph.
‘‘(B) ADDITIONAL
REQUIREMENT.—Such
agency shall make an adjustment in its ac-
counts to reflect the sale, reduction, or cancella-
tion of such a loan.
‘‘(b) DEPOSIT OF PROCEEDS.—The proceeds from
the sale, reduction, or cancellation of any loan sold, re-
duced or canceled pursuant to this section shall be depos-
ited in the United States Government account or accounts
established for the repayment of such loan.
‘‘SEC. 908. CORAL REEF AND OTHER COASTAL MARINE RE-
SOURCES AGREEMENT.
‘‘(a) AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary of State is
authorized, in consultation with other appropriate
officials of the Federal Government, to enter into a
Coral Reef and Other Coastal Marine Resources
Agreement with any eligible country concerning the
operation and use of the Fund for that country.
‘‘(2) CONSULTATION.—In the negotiation of
such an Agreement, the Secretary shall consult with
the Board in accordance with section 910.
‘‘(b) CONTENTS OF AGREEMENT.—The requirements
contained in section 708(b) of this Act (relating to con-
tents of an agreement) shall apply to an Agreement in
the same manner as such requirements apply to an Amer-
icas Framework Agreement.
‘‘(c) ADMINISTERING BODY.—
‘‘(1) IN
GENERAL.—Amounts disbursed from
the Fund in each beneficiary country shall be admin-
istered by a body constituted under the laws of that
country.
‘‘(2) COMPOSITION.—
‘‘(A) IN
GENERAL.—The administering
body shall consist of—
‘‘(i) one or more individuals appointed
by the United States Government;
‘‘(ii) one or more individuals ap-
pointed by the government of the bene-
ficiary country; and
‘‘(iii) individuals who represent a
broad range of—
‘‘(I) environmental non-govern-
mental organizations of, or active in,
the beneficiary country;
‘‘(II) local community develop-
ment non-governmental organizations
of the beneficiary country; and
‘‘(III) scientific, academic, or for-
estry organizations of the beneficiary
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 
requirements
contained in section 708(c)(3) of this Act (relating
to responsibilities of the administering body) shall
apply to an administering body described in para-
graph (1) in the same manner as such requirements
apply to an administering body described in section
708(c)(1) of this Act.
‘‘(d) ELIGIBLE ACTIVITIES.—Amounts deposited in a
Fund shall be used only to provide grants to conserve,
maintain, and restore the coral reefs and other coastal ma-
rine resources in the beneficiary country, through one or
more of the following activities:
‘‘(1) Establishment, restoration, protection, and
maintenance of parks, protected areas, and reserves.
‘‘(2) Development and implementation of sci-
entifically sound systems of natural resource man-
agement, including ‘ridgeline to reef’ and ecosystem
management practices.
‘‘(3) Training programs to increase the sci-
entific, technical, and managerial capacities of indi-
viduals and organizations involved in conservation
efforts.
‘‘(4) Restoration, protection, or sustainable use
of diverse marine animal and plant species.
‘‘(5) Development and support of the livelihoods
of individuals living near a coral reef or other coast-
al marine resource, in a manner consistent with pro-
tecting those resources.
‘‘(e) GRANT RECIPIENTS.—
‘‘(1) IN GENERAL.—Grants made from a Fund
shall be made to—
‘‘(A) nongovernmental environmental, for-
estry, conservation, and indigenous peoples or-
ganizations of, or active in, the beneficiary
country;
‘‘(B) other appropriate local or regional
entities of, or active in, the beneficiary country;
or
‘‘(C) in exceptional circumstances, the gov-
ernment of the beneficiary country.
‘‘(2) PRIORITY.—In providing grants under
paragraph (1), priority shall be given to projects
that are run by nongovernmental organizations and
other private entities and that involve local commu-
nities in their planning and execution.
‘‘(f) REVIEW OF LARGER GRANTS.—Any grant of
more than $100,000 from a Fund shall be subject to veto
by the Government of the United States or the govern-
ment of the beneficiary country.
‘‘(g) ELIGIBILITY CRITERIA.—In the event that a
country ceases to meet the eligibility requirements set
forth in section 905(a), as determined by the President
pursuant to section 905(b), then grants from the Fund
for that country may only be made to nongovernmental
organizations until such time as the President determines
that such country meets the eligibility requirements set
forth in section 905(a).
‘‘SEC. 909. CORAL REEF AND OTHER COASTAL MARINE RE-
SOURCES FUND.
‘‘(a) ESTABLISHMENT.—Each beneficiary country
that enters into a Coral Reef and Other Coastal Marine
Resources Agreement under section 908 shall be required
to establish a Coral Reef and Other Coastal Marine Re-
sources Fund to receive payments of interest on new obli-
gations undertaken by the beneficiary country under this
part.
‘‘(b) REQUIREMENTS RELATING TO OPERATION OF
FUND.—The following terms and conditions shall apply
to the Fund in the same manner as such terms as condi-
tions apply to an Enterprise for the Americas Fund under
section 707 of this Act:
‘‘(1) The provision relating to deposits under
subsection (b) of such section.
‘‘(2) The provision relating to investments
under subsection (c) of such section.
‘‘(3) The provision relating to disbursements
under subsection (d) of such section.
‘‘SEC. 910. BOARD.
‘‘(a) ENTERPRISE FOR THE AMERICAS BOARD.—The
Enterprise for the Americas Board established under sec-
tion 610(a) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1738i(a)) shall, in addi-
tion to carrying out the responsibilities of the Board under
section 610(c) of such Act, carry out the duties described
in subsection (c) of this section for the purposes of this
part.
‘‘(b) MEMBERSHIP.—
‘‘(1) INITIAL MEMBERSHIP.—Of the six mem-
bers of the Enterprise for the Americas Board ap-
pointed by the President under section 610(b)(1)(A)
of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1738i(b)(1)(A)), at least
one shall be a representative of the Department of
State, at least one shall be a representative of the
Department of the Treasury, and at least one shall
be a representative of the Inter-American Founda-
tion.
‘‘(2) ADDITIONAL
MEMBERSHIP.—The Enter-
prise for the Americas Board shall be composed of
an additional four members appointed by the Presi-
dent as follows:
‘‘(A) Two representatives from the United
States Government, including a representative
of the National Oceanographic and Atmospheric
Administration (NOAA) and a representative of
the United States Geological Survey (USGS).
‘‘(B) Two representatives from private
nongovernmental environmental, scientific, for-
estry, or academic organizations with experience
and expertise in preservation, maintenance, sus-
tainable uses, and restoration of coral reefs and
other coastal marine resources.
‘‘(c) DUTIES.—The duties described in this sub-
section are as follows:
‘‘(1) Advise the Secretary of State on the nego-
tiations of Coral Reef and Other Coastal Marine Re-
sources Agreements.
‘‘(2) Ensure, in consultation with—
‘‘(A) the government of the beneficiary
country;
‘‘(B) nongovernmental organizations of the
beneficiary country;
‘‘(C) nongovernmental organizations of the
region (if appropriate);
‘‘(D) environmental, scientific, oceano-
graphic, and academic leaders of the beneficiary
country; and
‘‘(E) environmental, scientific, oceano-
graphic, and academic leaders of the region (as
appropriate),
that a suitable administering body is identified for
each Fund.
‘‘(3) Review the programs, operations, and fis-
cal audits of each administering body.
‘‘SEC. 911. 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 part and the eligibility
of countries for benefits from the Facility under this part.
‘‘SEC. 912. ANNUAL REPORTS TO THE CONGRESS.
‘‘(a) IN GENERAL.—Not later than December 31 of
each year, the President shall prepare and transmit to the
Congress an annual report concerning the operation of the
Facility for the prior fiscal year. Such report shall
include—
‘‘(1) a description of the activities undertaken
by the Facility during the previous fiscal year;
‘‘(2) a description of any Agreement entered
into under this part;
‘‘(3) a report on any Funds that have been es-
tablished under this part and on the operations of
such Funds; and
‘‘(4) a description of any grants that have been
provided by administering bodies pursuant to Agree-
ments under this part.
‘‘(b) SUPPLEMENTAL VIEWS IN ANNUAL REPORT.—
Not later than December 15 of each year, each member
of the Board shall be entitled to receive a copy of the re-
port required under subsection (a). Each member of the
Board may prepare and submit supplemental views to the
President on the implementation of this part by December
31 for inclusion in the annual report when it is trans-
mitted to Congress pursuant to this section.’’.
Passed the House of Representatives October 16,
2001.
Attest:
Clerk.