I 
110TH CONGRESS 
1ST SESSION H. R. 1886 
To prevent public financing of oil or gas field development projects, surveying 
or extraction activities, processing facilities, pipelines, or terminals, or 
other oil and gas production or distribution operations or facilities, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 17, 2007 
Mr. HINCHEY introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on For-
eign Affairs, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To prevent public financing of oil or gas field development 
projects, surveying or extraction activities, processing fa-
cilities, pipelines, or terminals, or other oil and gas pro-
duction or distribution operations or facilities, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
The Congress finds as follows: 
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(1) In 2005, the oil industry recorded revenues 
of $1,620,000,000,000, and profits for the industry 
totaled almost $140,000,000,000. 
(2) In 2005, multilateral development institu-
tions such as those in the World Bank Group, and 
United States agencies such as the Export-Import 
Bank of the United States and the United States 
Overseas Private Investment Corporation, alone pro-
vided more than $3,000,000,000 in financing to the 
international oil and gas industry, including major 
oil companies. 
(3) Limited public resources for international 
finance and development assistance should support 
the many critical needs of developing countries, not 
the international oil and gas industry which has sig-
nificant access to private capital markets. 
(4) Providing financing to oil and gas oper-
ations overseas increases the dependence of the 
United States on oil and gas imported from these 
operations. 
(5) Providing financing to oil and gas oper-
ations overseas increases the dependence of the de-
veloping world on oil and gas imported from these 
operations. 
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(6) Oil and gas production in developing coun-
tries has generally not alleviated poverty, but has in-
stead been widely associated with increased levels of 
poverty and economic inequality. 
(7) Oil and gas production has often exacer-
bated poor governance, corruption and conflict in 
many developing countries. 
(8) Oil and gas production has historically led 
to increased levels of developing country debt due to 
these countries’ reliance on external debt financing 
to provide infrastructure for oil and gas extraction 
projects. 
(9) Emissions from combustion of oil and gas 
account for just over one-third of all global green-
house gas emissions. 
(10) While the vast majority of greenhouse gas 
emissions have occurred in the wealthy countries be-
longing to the Organization for Economic Coopera-
tion and Development, it will be the poorest coun-
tries, who can least afford to adapt to a changing 
climate, who will suffer first and worst. 
(11) Following a 2-year multi-stakeholder proc-
ess that evaluated the effects of international oil 
projects on developing country poverty, local environ-
ments, and global climate, the Extractive Industries 
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Review by the World Bank Group recommended an 
end to financing of oil projects by the World Bank 
Group by 2008. 
SEC. 2. EXPORT-IMPORT BANK. 
Section 2(b) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)) is amended by adding at the end the 
following: 
‘‘(14) PROHIBITION
ON
FINANCING
FOR
OIL 
AND GAS PROJECTS.— 
‘‘(A) IN
GENERAL.—The Bank may not 
guarantee, insure, or extend (or participate in 
an extension of) credit— 
‘‘(i) in connection with an oil or gas 
project; or 
‘‘(ii) to any entity that may use the 
guarantee, insurance, or credit to finance 
such a project. 
‘‘(B) OIL
OR
GAS
PROJECT
DEFINED.— 
The term ‘oil or gas project’ means an oil or 
gas field development project (including sur-
veying and extraction), processing facility, pipe-
line, or terminal, or other oil or gas production 
or distribution operation or facility.’’. 
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SEC. 3. OVERSEAS PRIVATE INVESTMENT CORPORATION. 
Section 237 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197) is amended by adding at the end the 
following new subsection: 
‘‘(p) RESTRICTION
ON INSURANCE
AND FINANCE 
FOR OIL AND GAS PROJECTS.— 
‘‘(1) RESTRICTION ON INSURANCE AND FINANC-
ING OF PROJECTS DIRECTLY.—The Corporation may 
not issue any contract of insurance or reinsurance, 
or any guarantee, or enter into any agreement to 
provide financing, for a proposed investment that in-
volves an oil or gas project. 
‘‘(2) RESTRICTION ON INSURANCE AND FINANC-
ING FOR PROJECTS INDIRECTLY.—The Corporation 
may not issue any contract of insurance or reinsur-
ance, or any guarantee, or enter into any agreement 
to provide financing to any person if such insurance, 
reinsurance, or financing may be used by that per-
son to insure or provide any form of financing to an 
oil or gas project. 
‘‘(3) OIL OR GAS PROJECT DEFINED.—In this 
subsection, the term ‘oil or gas project’ means an oil 
or gas field development project (including surveying 
and extraction), processing facility, pipeline, or ter-
minal, or other oil or gas production or distribution 
operation or facility.’’. 
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SEC. 4. MULTILATERAL DEVELOPMENT BANKS. 
(a) IN GENERAL.—Title XVI of the International Fi-
nancial Institutions Act (22 U.S.C. 262p–262p–8) is 
amended by adding at the end the following: 
‘‘SEC. 1626. OPPOSITION TO ASSISTANCE FOR OIL OR GAS 
PROJECTS. 
‘‘(a) IN GENERAL.—The Secretary of the Treasury 
shall instruct the United States Executive Director at each 
multilateral development institution (as defined in section 
1701(c)(3)) to use the voice and vote of the United States 
to oppose the provision by the respective bank of any kind 
of assistance, directly or indirectly, to any oil and gas field 
development project, surveying or extraction activity, proc-
essing facility, pipeline, or terminal, or other oil and gas 
production or distribution operation or facility. 
‘‘(b) ASSISTANCE DEFINED.—The term ‘assistance’ 
means any grant, loan, direct or indirect extension of cred-
it, technical assistance, or guarantee, or any other non- 
lending support or extension financing, insurance, or rein-
surance.’’. 
(b) ANNUAL REPORTS
TO
THE CONGRESS.—Not 
later than June 1 of each calendar year, the Secretary 
of the Treasury shall submit to the Committees on Finan-
cial Services and on Appropriations of the House of Rep-
resentatives and the Committees on Foreign Relations and 
on Appropriations of the Senate, and make available on 
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the website of the Department of the Treasury, a report 
which identifies and describes, with respect to each multi-
lateral development institution (as defined in section 
1701(c)(3) of the International Financial Institutions 
Act), any assistance approved by the institution during the 
preceding fiscal year for any oil or gas project, and any 
other financial or other assistance, including sectoral lend-
ing, provided to the energy sector. 
SEC. 5. REPORT ON UNITED STATES ASSISTANCE TO SUP-
PORT THE OIL AND GAS SECTORS OF DEVEL-
OPING COUNTRIES. 
Not later than 180 days after the date of the enact-
ment of this Act, the Administrator of the United States 
Agency for International Development shall submit to 
Congress a report on the amount of assistance provided 
under chapter 1 of part I of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.) to support the oil and 
gas sectors of developing countries for fiscal year 2007. 
The report shall include the name of each country that 
received assistance described in the preceding sentence 
and a description of the specific type and amount of assist-
ance provided to the country. 
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SEC. 6. ORGANIZATION FOR ECONOMIC COOPERATION AND 
DEVELOPMENT. 
The President shall inform the Organization for Eco-
nomic Cooperation and Development that it is the policy 
of the United States that the member states of the Orga-
nization should prohibit their export credit agencies from 
providing financing or other assistance to any oil or gas 
project. 
SEC. 7. STUDY OF ENERGY SECTOR LENDING. 
Not later than 180 days after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall submit to the Committees on Financial Serv-
ices and on Appropriations of the House of Representa-
tives and the Committees on Foreign Relations and on Ap-
propriations of the Senate a report on the financing and 
other assistance provided to the energy sector (including 
the extraction, development, and use of fossil fuels and 
other fuel sources) by multilateral development institu-
tions (as defined in section 1701(c)(3) of the International 
Financial Institutions Act), the Export-Import Bank of 
the United States, the Overseas Private Investment Cor-
poration, and the United States Agency for International 
Development. The report shall include analyses of— 
(1) whether the energy projects and sectors re-
ceiving financing and other assistance contribute to 
greenhouse gas emissions; 
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(2) the life cycle environmental impacts of the 
projects receiving the financing or other assistance; 
and 
(3) the extent to which the financing and other 
assistance has been used to facilitate the provision 
of energy to impoverished populations, including by 
means of renewable energy sources. 
SEC. 8. DEFINITIONS. 
In this Act: 
(1) 
ASSISTANCE.—The 
term 
‘‘assistance’’ 
means any grant, loan, direct or indirect extension 
of credit, technical assistance, or guarantee, or any 
other non-lending support or extension financing, in-
surance, or reinsurance. 
(2) OIL OR GAS PROJECT.—The term ‘‘oil or 
gas project’’ means an oil or gas field development 
project (including surveying and extraction), proc-
essing facility, pipeline, or terminal, or other oil or 
gas production or distribution operation or facility. 
Æ 
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