United States Foundation for International Conservation Act of 2022
Bill: S.5134 | Sponsor: Sen. Coons, Christopher A. (D-DE)
Policy area: International Affairs

Summary:
United States Foundation for International Conservation Act of 2022
This bill requires the Department of State to establish a foundation to provide grants for projects to manage protected and conserved areas in low- and middle-income countries with high levels of biological diversity or species and ecosystems of significant importance. Recipients of grants from this foundation must secure outside funding to match, at minimum, the amount of the grant.

To establish the United States Foundation for International 
Conservation to promote long-term management of protected and conserved 
                     areas, 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 ``United States Foundation for 
International Conservation Act of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Appropriations of the Senate;
                    (B) the Committee on Foreign Relations of the 
                Senate;
                    (C) the Committee on Appropriations of the House of 
                Representatives; and
                    (D) the Committee on Foreign Affairs of the House 
                of Representatives.
            (2) Board.--The term ``Board'' means the Board of Directors 
        established under section 4 (a).
            (3) Director.--The term ``Director'' means--
                    (A) an initial member of the Board appointed 
                pursuant to section 4(a)(2)(C); or
                    (B) a member of the Board selected to fill a 
                vacancy pursuant to section 4(a)(3)(B).
            (4) Eligible country.--The term ``eligible country'' means 
        any of the countries described in section 7(b).
            (5) Eligible project.--The term ``eligible project'' means 
        any of the projects described in section 7(a)(2).
            (6) Executive director.--The term ``Executive Director'' 
        means the Executive Director of the Foundation hired pursuant 
        to section 4(b).
            (7) Foundation.--The term ``Foundation'' means the United 
        States Foundation for International Conservation established 
        under section 3(a).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of State.

SEC. 3. UNITED STATES FOUNDATION FOR INTERNATIONAL CONSERVATION.

    (a) Establishment.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall establish the 
        United States Foundation for International Conservation.
            (2) Independence.--The Foundation is not an agency or 
        instrumentality of the United States Government.
            (3) Tax-exempt status.--The Board shall take all necessary 
        and appropriate steps to ensure that the Foundation is an 
        organization described in subsection (c) of section 501 of the 
        Internal Revenue Code of 1986, which exempts the organization 
        from taxation under subsection (a) of such section.
    (b) Purposes.--The purposes of the Foundation are--
            (1) to promote effective, long-term management of protected 
        and conserved areas and their contiguous buffer zones in 
        eligible countries;
            (2) to advocate for, incentivize, accept, and administer 
        governmental and nongovernmental funds, including donations 
        from the private sector, to increase the availability and 
        predictability of financing for long-term management of 
        protected and conserved areas;
            (3) to close critical gaps in public international 
        conservation efforts by--
                    (A) increasing private sector investment, including 
                investments from philanthropic entities; and
                    (B) collaborating with partners providing bilateral 
                and multilateral financing to support enhanced 
                coordination;
            (4) to identify and financially support implementation-
        ready projects--
                    (A) that promote long-term management of protected 
                and conserved areas and their contiguous buffer zones 
                in eligible countries, including supporting the 
                management of terrestrial, coastal, freshwater, and 
                marine protected areas, parks, community conservancies, 
                indigenous reserves, conservation easements, and 
                biological reserves; and
                    (B) that provide effective area-based conservation 
                measures, consistent with internationally recognized 
                best practices and standards for environmental and 
                social safeguards; and
            (5) to coordinate with, and otherwise support and assist, 
        foreign governments, private sector entities, local 
        communities, Indigenous Peoples, and other stakeholders in 
        undertaking biodiversity conservation activities--
                    (A) to achieve sustainable biodiversity 
                conservation outcomes; and
                    (B) to improve local security, governance, food 
                security, and economic opportunities.

SEC. 4. GOVERNANCE OF THE FOUNDATION.

    (a) Board of Directors.--
            (1) Governance.--The Foundation shall be governed by a 
        Board of Directors.
            (2) Composition.--
                    (A) In general.--The Board shall be composed of--
                            (i) the ex-officio nonvoting Directors 
                        described in subparagraph (B); and
                            (ii) the voting Directors appointed 
                        pursuant to subparagraph (C).
                    (B) Ex-officio directors.--The ex-officio Directors 
                shall be the following individuals or designees of such 
                individuals:
                            (i) The Secretary of State.
                            (ii) The Administrator of the United States 
                        Agency for International Development.
                            (iii) The Secretary of the Interior.
                            (iv) The Chief of the United States Forest 
                        Service.
                            (v) The Administrator of the National 
                        Oceanic and Atmospheric Administration.
                    (C) Initial members.--The Secretary, in 
                consultation with the other ex-officio Directors, shall 
                appoint as Directors of the Board--
                            (i) 4 private-sector committed donors; and
                            (ii) 5 independent experts who represent 
                        diverse points of view, to the maximum extent 
                        practicable.
                    (D) Qualifications.--Each independent expert 
                appointed pursuant to subparagraph (C)--
                            (i) shall be knowledgeable and experienced 
                        in matters relating to--
                                    (I) international development;
                                    (II) protected area management and 
                                the conservation of global 
                                biodiversity, fish and wildlife, 
                                ecosystem restoration, adaptation, and 
                                resilience; and
                                    (III) grantmaking in support of 
                                international conservation.
                    (E) Chairperson.--The Board shall elect, from among 
                its Directors, a Chairperson, who shall serve for a 2-
                year term.
            (3) Terms; vacancies.--
                    (A) Terms.--
                            (i) In general.--The term of service of 
                        each appointed Director shall be not more than 
                        5 years.
                            (ii) Initial appointed directors.--Of the 
                        initial Directors appointed pursuant to 
                        paragraph (2)(C)--
                                    (I) 5 Directors, including at least 
                                2 private-sector committed donors, 
                                shall serve for 4 years; and
                                    (II) 4 Directors shall serve for 5 
                                years, as determined by the Chairperson 
                                of the Board.
                    (B) Vacancies.--Any vacancy in the membership of 
                the appointed Directors of the Board--
                            (i) shall be filled in accordance with the 
                        bylaws of the Foundation by a private-sector 
                        committed donor or an independent expert who 
                        meets the qualifications under subparagraph 
                        (C)(ii)(A), as applicable, as represented by 
                        the vacating Director;
                            (ii) shall not affect the power of the 
                        remaining appointed Directors to execute the 
                        duties of the Board; and
                            (iii) shall be filled by an individual 
                        selected by the Board.
            (4) Quorum.--A majority of the current membership of the 
        Board shall constitute a quorum for the transaction of 
        Foundation business.
            (5) Meetings.--
                    (A) In general.--The Board shall meet at the call 
                of the Chairperson not less frequently than annually.
                    (B) Initial meeting.--Not later than 60 days after 
                the Board is established pursuant to section 3(a), the 
                Secretary shall convene a meeting of the ex-officio 
                Directors and the appointed Directors of the Board to 
                incorporate the Foundation.
                    (C) Removal.--Any Director who misses 3 consecutive 
                regularly scheduled meetings may be removed from the 
                Board.
            (6) Reimbursement of expenses.--Directors of the Board 
        shall serve without pay, but may be reimbursed for the actual 
        and necessary traveling and subsistence expenses incurred in 
        the performance of the duties of the Foundation.
            (7) Not federal employees.--Appointment as a Director of 
        the Board shall not constitute employment by, or the holding of 
        an office of, the United States for purposes of any Federal 
        law.
            (8) Duties.--The Board shall--
                    (A) establish bylaws for the Foundation in 
                accordance with paragraph (9);
                    (B) provide overall direction for the activities of 
                the Foundation and establish priority activities;
                    (C) carry out any other necessary activities of the 
                Foundation;
                    (D) evaluate the performance of the Executive 
                Director; and
                    (E) not less frequently than annually, consult and 
                coordinate with stakeholders qualified to provide 
                advice, assistance, and information regarding effective 
                protected and conserved area management.
            (9) Bylaws.--
                    (A) In general.--The bylaws established pursuant to 
                paragraph (8)(A) may include--
                            (i) policies for the selection of Directors 
                        of the Board and officers, employees, agents, 
                        and contractors of the Foundation;
                            (ii) policies, including ethical standards, 
                        for--
                                    (I) the acceptance, solicitation, 
                                and disposition of donations and grants 
                                to the Foundation; and
                                    (II) the disposition of assets of 
                                the Foundation;
                            (iii) policies that subject all employees, 
                        fellows, trainees, and other agents of the 
                        Foundation (including ex-officio Directors and 
                        appointed Directors of the Board) to conflict 
                        of interest standards; and
                            (iv) the specific duties of the Executive 
                        Director.
                    (B) Requirements.--The Board shall ensure that the 
                bylaws of the Foundation and the activities carried out 
                under those bylaws do not--
                            (i) reflect unfavorably on the ability of 
                        the Foundation to carry out activities in a 
                        fair and objective manner; or
                            (ii) compromise, or appear to compromise, 
                        the integrity of any governmental agency or 
                        program, or any officer or employee employed 
                        by, or involved in, a governmental agency or 
                        program.
    (b) Executive Director.--The Board shall hire an Executive Director 
of the Foundation, who shall serve, at the pleasure of the Board, as 
the chief executive officer of the Foundation.
    (c) Foundation Staff.--Officers and employees of the Foundation--
            (1) may not be employees of, or hold any office in, the 
        United States Government; and
            (2) shall be appointed without regard to the provisions 
        of--
                    (A) title 5, United States Code, governing 
                appointments in the competitive service; and
                    (B) chapter 51 and subchapter III of chapter 53 of 
                such title, relating to classification and General 
                Schedule pay rates.
    (d) Limitation and Conflicts of Interests.--
            (1) Political participation.--The Foundation may not 
        participate or intervene in any political campaign on behalf of 
        any candidate for public office in any country.
            (2) Financial interests.--Any Director of the Board or 
        officer or employee of the Foundation is prohibited from 
        participating, directly or indirectly, in the consideration or 
        determination of any question before the Foundation affecting--
                    (A) the financial interests of such Director, 
                officer, or employee; and
                    (B) the interests of any corporation, partnership, 
                entity, or organization in which such Director, 
                officer, or employee has any fiduciary obligation or 
                direct or indirect financial interest.

SEC. 5. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

    (a) General Authority.--
            (1) In general.--The Foundation--
                    (A) shall have perpetual succession unless 
                dissolved by an Act of Congress;
                    (B) may conduct business throughout the States, 
                territories, and possessions of the United States and 
                in foreign countries;
                    (C) shall have its principal offices in the 
                Washington, DC, metropolitan area; and
                    (D) shall continuously maintain a designated agent 
                in Washington, DC, who is authorized to accept notice 
                or service of process on behalf of the Foundation.
            (2) Notice and service of process.--The serving of notice 
        to, or service of process upon, the agent referred to in 
        paragraph (1)(D), or mailed to the business address of such 
        agent, shall be deemed as service upon, or notice to, the 
        Foundation.
            (3) Seal.--The Foundation shall have an official seal, 
        which shall be selected by the Board and judicially noticed.
    (b) Authorities.--In addition to powers explicitly authorized under 
this Act, the Foundation, in order to carry out the purposes described 
in section 3(b), shall have the usual powers of a corporation 
headquartered in Washington, DC, including the authority--
            (1) to accept, receive, solicit, hold, administer, and use 
        any gift, devise, or bequest, either absolutely or in trust, or 
        real or personal property or any income derived from such gift 
        or property, or other interest in such gift or property;
            (2) to acquire by donation, gift, devise, purchase, or 
        exchange any real or personal property or interest in such 
        property;
            (3) unless otherwise required by the instrument of 
        transfer, to sell, donate, lease, invest, reinvest, retain, or 
        otherwise dispose of any property or income derived from such 
        property;
            (4) to borrow money and issue bonds, debentures, or other 
        debt instruments;
            (5) to complain and defend itself in any court of competent 
        jurisdiction (except that the Directors of the Board shall not 
        be personally liable, except for gross negligence);
            (6) to enter into contracts or other arrangements with 
        public agencies, private organizations, and persons and to make 
        such payments as may be necessary to carry out the purposes of 
        such contracts or arrangements; and
            (7) to award grants for eligible projects, in accordance 
        with section 7.
    (c) Property Interests.--
            (1) Interest in real property.--In this subsection, an 
        interest in real property includes--
                    (A) mineral and water rights;
                    (B) rights of way; and
                    (C) easements appurtenant or in gross.
            (2) In general.--The Foundation may acquire, hold, and 
        dispose of lands, waters, and other interests in real property 
        by donation, gift, devise, purchase, or exchange.
            (3) Limits to property rights.--A gift, devise, or bequest 
        may be accepted by the Foundation even though it is encumbered, 
        restricted, or subject to beneficial interests of private 
        persons if any current or future interest therein is for the 
        benefit of the Foundation.
            (4) Tax exemption.--
                    (A) In general.--The Foundation, any income or 
                property received or owned by the Foundation, and all 
                transactions relating to such income or property shall 
                be exempt from all Federal, State, and local taxation.
                    (B) Exempt organizations.--Contributions, gifts, 
                and other transfers made to or for the use of the 
                Foundation shall be treated as contributions, gifts, or 
                transfers to an organization exempt from taxation under 
                section 501(c)(3) of the Internal Revenue Code of 1986.
    (d) Federal Funds.--
            (1) In general.--The Foundation may--
                    (A) hold Federal funds made available, but not 
                immediately disbursed; and
                    (B) use any interest or other investment income 
                earned on such Federal funds to carry out the purposes 
                of the Foundation under this Act.
            (2) Limitation.--Investments made pursuant to paragraph 
        (1)(B) may only be made in--
                    (A) interest-bearing obligations of the United 
                States; or
                    (B) obligations guaranteed as to both principal and 
                interest by the United States.
    (e) Limitation of Public Liability.--The United States shall not be 
liable for any debts, defaults, acts, or omissions of the Foundation.

SEC. 6. SAFEGUARDS AND ACCOUNTABILITY.

    (a) Safeguards.--The Foundation shall develop, and incorporate into 
any agreement for support provided by the Foundation, appropriate 
safeguards, policies, and guidelines, consistent with internationally 
recognized best practices and standards for environmental and social 
safeguards.
    (b) Independent Accountability Mechanism.--
            (1) In general.--The Foundation shall establish a 
        transparent and independent accountability mechanism, which 
        shall provide--
                    (A) a compliance review function that assesses 
                whether Foundation-supported projects adhere to the 
                requirements described in subsection (a);
                    (B) a dispute resolution function for resolving 
                concerns between complainants and project implementers 
                regarding the impacts of specific Foundation-supported 
                projects with respect to such standards; and
                    (C) an advisory function that reports to the 
                Foundation on projects, policies, and practices.
            (2) Duties.--The accountability mechanism shall--
                    (A) report annually to the Board and to the 
                appropriate congressional committees regarding the 
                Foundation's compliance with internationally recognized 
                best practices and standards in accordance with 
                paragraph (1)(A);
                    (B)(i) have permanent staff to conduct compliance 
                reviews and dispute resolutions; or
                    (ii) maintain a roster of experts to serve such 
                roles, to the extent needed; and
                    (C) hold a public comment period lasting not fewer 
                than 60 days regarding the initial design of the 
                accountability mechanism.

SEC. 7. PROJECTS AND GRANTS.

    (a) Project Funding Requirements.--
            (1) In general.--The Foundation shall--
                    (A) fund eligible projects that support its mission 
                to provide long-term funding for the effective 
                management of protected and conserved areas and their 
                contiguous buffer zones in eligible countries; and
                    (B) recognize the importance of a landscape or 
                seascape approach to conservation that includes buffer 
                zones, wildlife dispersal and corridor areas, and other 
                effective area-based conservation measures.
            (2) Eligible projects.--Eligible projects shall include 
        projects that--
                    (A) focus on supporting--
                            (i) long-term management of protected or 
                        conserved areas and their contiguous buffer 
                        zones in countries described in subsection (b), 
                        including terrestrial, coastal, and marine-
                        protected or conserved areas, parks, community 
                        conservancies, indigenous reserves, 
                        conservation easements, and biological 
                        reserves; and
                            (ii) other effective area-based 
                        conservation measures;
                    (B) are cost-matched from sources other than the 
                United States Government;
                    (C) have host country and local population support, 
                as evidenced by a long-term binding memorandum of 
                understanding signed by the host government that 
                respects free, prior, and informed consent of affected 
                communities;
                    (D) incorporate a set of key performance 
                indicators;
                    (E) demonstrate robust local community engagement, 
                with the completion of appropriate environmental and 
                social due diligence, including--
                            (i) free, prior, and informed consent of 
                        Indigenous Peoples and consultation with 
                        relevant local communities;
                            (ii) equitable governance structures; and
                            (iii) effective grievance mechanisms;
                    (F) create economic opportunities for local 
                communities, through activities such as--
                            (i) equity and profit-sharing;
                            (ii) employment activities; and
                            (iii) other economic growth activities;
                    (G) provide stable baseline funding for the 
                effective management of the protected or conserved area 
                project;
                    (H) are implementation-ready; and
                    (I) where possible, demonstrate a plan to 
                strengthen the capacity of, and transfer skills to, 
                local institutions to manage the protected or conserved 
                area before or after grant funding is exhausted.
    (b) Eligible Countries.--
            (1) In general.--Before awarding any grants or entering 
        into any project agreements for a given fiscal year, the Board 
        shall conduct a review of countries in which the Foundation 
        shall be eligible to fund projects to determine which 
        countries--
                    (A) are low-income, lower middle-income, or upper-
                middle-income economies (as defined by the 
                International Bank for Reconstruction and Development 
                and the International Development Association;
                    (B) have--
                            (i) a high degree of biological diversity; 
                        or
                            (ii) species or ecosystems of significant 
                        importance; and
                    (C) have demonstrated a commitment to conservation 
                through actions, such as protecting lands and waters 
                through the gazettement of national parks, community 
                conservancies, marine reserves and protected areas, 
                forest reserves, and other legally recognized forms of 
                place-based conservation.
            (2) Identification of eligible countries.--Not later than 5 
        days after the date on which the Board determines which 
        countries are eligible countries for a given fiscal year, the 
        Executive Director shall--
                    (A) submit a report to the appropriate 
                congressional committees that includes--
                            (i) a list of all such eligible countries; 
                        and
                            (ii) a justification for such eligibility 
                        determinations; and
                    (B) publish the information contained in the report 
                described in paragraph (A) in the Federal Register.
    (c) Grantmaking.--
            (1) In general.--In order to maximize its program effects, 
        the Foundation should--
                    (A) seek to coordinate with other international 
                public and private donors to the extent possible;
                    (B) seek additional financial and nonfinancial 
                contributions and commitments for its projects from 
                host governments; and
                    (C) strive to generate a partnership mentality 
                among all participants, including public and private 
                funders, host governments, local protected areas 
                authorities, and private and nongovernmental 
                organization partners.
            (2) Grant criteria.--Foundation grants--
                    (A) shall fund the management of well-defined 
                protected or conserved areas and the systems of such 
                conservation areas in eligible countries;
                    (B) should provide adequate baseline funding for at 
                least 10 years, without replacing or duplicating 
                existing baseline funding, for each protected and 
                conserved area and the system that supports that area 
                in an amount sufficient to maintain the effective 
                management of the area over the long term;
                    (C) should, during the grant period, demonstrate 
                progress in achieving clearly identified key 
                performance indicators (as defined in the grant 
                agreement), which may include--
                            (i) the protection of biological diversity;
                            (ii) the protection of native flora and 
                        habitats, such as trees, forests, grasslands, 
                        mangroves, coral reefs, and sea grass;
                            (iii) community-based economic growth 
                        indicators, such as improved land tenure, 
                        increases in beneficiaries participating in 
                        economic growth activities, and sufficient 
                        income from conservation activities being 
                        directed to communities in project areas;
                            (iv) improved management of the protected 
                        or conserved area covered by the project, as 
                        documented through the submission of strategic 
                        plans or annual reports to the Foundation; and
                            (v) the identification of additional 
                        revenue sources or sustainable financing 
                        mechanisms to meet the recurring costs of 
                        management of the protected or conserved areas; 
                        and
                    (D) may be terminated if the Board determines that 
                the project is not meeting applicable requirements 
                under this Act or making progress in achieving the key 
                performance indicators defined in the grant agreement.

SEC. 8. ANNUAL REPORT.

    Not later than 360 days after the date of the enactment of this 
Act, and annually thereafter while the Foundation continues to 
function, the Executive Director of the Foundation shall submit a 
report to the appropriate congressional committees that describes--
            (1) the goals of the Foundation;
            (2) the programs, projects, and activities supported by the 
        Foundation;
            (3) private and governmental contributions to the 
        Foundation; and
            (4) the standardized criteria utilized to determine the 
        programs and activities supported by the Foundation, including 
        baselines, targets, desired outcomes, measurable goals, and 
        extent to which those goals are being achieved for each 
        project.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) Administrative Expenses.--There are authorized to be 
appropriated, for each of the fiscal years 2023 through 2032, such sums 
as may be necessary for the administrative expenses of the Foundation.
    (b) Program Funds.--
            (1) Authorization.--There are authorized to be appropriated 
        $100,000,000 for each of the fiscal years 2023 through 2032 to 
        carry out section 7.
            (2) Cost matching requirement.--Amounts appropriated 
        pursuant to paragraph (1) may only be made available to 
        grantees to the extent such grantees secure funding for an 
        eligible project from sources other than the United States 
        Government in an amount that is not less than the amount 
        received in grants for such project pursuant to section 7.
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