Las Americas Energy Security Act
Bill: H.R.7934 | Sponsor: Rep. Espaillat, Adriano (D-NY)
Policy area: International Affairs

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

To establish a lending program for Latin America and the Caribbean to 
reaffirm the United States commitment to growth and energy security in 
                        the Western Hemisphere.

    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 ``Las Americas Energy Security Act''.

SEC. 2. FINDINGS; PURPOSE; STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Energy independence and security are critical for a 
        country to maintain its sovereignty and independence.
            (2) The International Energy Agency (``IEA'') defines 
        energy security as the uninterrupted availability of energy 
        sources at an affordable price.
            (3) The IEA defines long-term energy security as primarily 
        dealing with timely investments to supply energy in line with 
        economic developments and environmental needs.
            (4) The IEA defines short-term energy security as focusing 
        on the ability of a country's energy system to react promptly 
        to sudden changes in the supply-demand balance.
            (5) The IEA found in February 2022 that Russia's unlawful 
        invasion of Ukraine poses serious implications for 
        international energy security.
            (6) The Intergovernmental Panel on Climate Change (IPCC), a 
        United Nations body that provides regular assessments on 
        climate change, issued its sixth report in February 2022, and 
        found that ``human-induced climate change, including more 
        frequent and intense extreme events, has caused widespread 
        adverse impacts and related losses and damages to nature and 
        people, beyond natural climate variability''.
            (7) The IPCC notes that to avoid mounting loss of life, 
        biodiversity, and infrastructure, we must have ambitious, 
        accelerated action to adapt to climate change, while also 
        making rapid, deep cuts in greenhouse gas emissions.
            (8) The World Meteorological Organization's State of the 
        Climate in Latin America and the Caribbean 2020 report found 
        that--
                    (A) widespread drought across Latin America and the 
                Caribbean has had significant impact on inland shipping 
                routes, crop yields, and food production, and 
                consequently led to worsening food insecurity;
                    (B) extreme weather events affected more than 8 
                million people across Central America, exacerbating 
                food insecurity in countries already crippled by 
                economic shocks, COVID-19 impacts, and conflict; and
                    (C) sea-level rise poses a major risk to low-lying 
                coastal zones in the Latin America and the Caribbean.
            (9) Rising commodity and energy prices, as well as other 
        global economic shocks such as those caused by natural 
        disasters, pandemics, and conflict, pose a serious food 
        security risk that may lead to social unrest and instability in 
        Latin America and the Caribbean.
    (b) Sense of Congress.--It is the sense of Congress that the United 
States has economic and national security interests in assisting Latin 
America and the Caribbean to achieve energy security.
    (c) Statement of Policy.-- It is the policy of the United States--
            (1) to advance United States foreign policy and development 
        goals by helping Latin America and the Caribbean meet its 
        short-term energy needs;
            (2) to promote the energy security of Latin America and the 
        Caribbean by encouraging the development of accessible, 
        transparent, and competitive energy markets that provide 
        diversified sources, types, and routes of energy, prioritizing 
        renewable energy practices that address challenges posed by 
        climate change;
            (3) to encourage United States public and private sector 
        investment in Latin American and Caribbean energy 
        infrastructure projects to bridge the gap between energy 
        security requirements and commercial demand in a way that is 
        consistent with the region's absorptive capacity, and that 
        recognizes the importance of building and widening the 
        absorptive capacity of the region; and
            (4) to help facilitate the export of United States energy 
        resources, technology, and expertise to global markets in a way 
        that benefits the energy security of Latin America and the 
        Caribbean.

SEC. 3. SOVEREIGN LENDING PROGRAM FOR ELIGIBLE LATIN AMERICAN AND 
              CARIBBEAN PARTNER COUNTRIES.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of the Treasury, with the 
concurrence of the Secretary of State, shall establish a sovereign 
lending program for eligible Latin American and Caribbean partner 
countries--
            (1) to support their short-term energy needs; and
            (2) to fund projects that help them transition to renewable 
        energy.
    (b) Application.--To be eligible to receive a loan under the 
program, an eligible Latin American or Caribbean partner country shall 
submit to the Secretary of the Treasury an application at such time, in 
such manner, and containing such information as the Secretary may 
require.
    (c) Loan Conditions.--A loan provided under the program--
            (1) shall be--
                    (A) a zero-interest loan, not to exceed 30 years in 
                duration; or
                    (B) a low-interest concessional loan, not to exceed 
                50 years in duration;
            (2) shall not contain any requirements that an eligible 
        Latin American or Caribbean partner country engage in austerity 
        measures or policies that increase poverty and inequality, 
        diminish the quality of life, and threaten the immediate access 
        of goods and services; and
            (3) shall be subject to such other terms and conditions as 
        the Secretary of Treasury, with the concurrence of the 
        Secretary of State, determines to be appropriate.
    (d) Report.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter for 5 years, 
        the Secretary of Treasury, with the concurrence of the 
        Secretary of State, shall submit to the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Foreign Relations of the Senate a report on progress in the 
        implementation of the program.
            (2) Matters to be included.--The report shall--
                    (A) include a description of how the program 
                strengthens United States national security and 
                economic interests in Latin America and the Caribbean;
                    (B) include an assessment of--
                            (i) the status and effectiveness of current 
                        efforts by regional governments, multilateral 
                        development banks, and the private sector to 
                        promote energy independence and security in 
                        Latin America and the Caribbean and to 
                        transition to renewable energy practices;
                            (ii) major challenges hindering such 
                        efforts; and
                            (iii) how the United States can strengthen 
                        the effectiveness of such efforts;
                    (C) identify how activities by the United States 
                Agency for International Development and the United 
                States International Development Finance Corporation 
                can effectively be leveraged to strengthen and promote 
                energy independence and security in Latin America and 
                the Caribbean;
                    (D) assess diplomatic initiatives taken to secure 
                specific national commitments by governments of 
                eligible Latin American and Caribbean partner countries 
                to undertake efforts to create favorable conditions for 
                energy security and independence in the region, address 
                corruption and rule of law concerns, modernize digital 
                and physical infrastructure, improve ease of doing 
                business, and finance and incentivize energy security 
                initiatives; and
                    (E) detail coordination of efforts with relevant 
                multilateral development banks to advance energy 
                security and independence of eligible Latin American 
                and Caribbean partner countries.
    (e) Annual Audit.--The Secretary of Treasury--
            (1) shall ensure that a full audit of the program is 
        performed on an annual basis; and
            (2) shall submit the results of the audit to the Committee 
        on Foreign Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of the Treasury $100,000,000 for each of 
fiscal years 2023 through 2028 to carry out the program.
    (g) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean 
partner country'' means--
            (1) a country that--
                    (A) is a beneficiary country for purposes of the 
                Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 
                et seq.);
                    (B) is a member state of the Caribbean Community 
                (commonly referred to as ``CARICOM''); or
                    (C) is a country in the Western Hemisphere that is 
                a party to a free trade agreement or preference program 
                with the United States; or
            (2) any other country in the Western Hemisphere, as 
        determined to be appropriate by the Secretary of State.

SEC. 4. SUPPORTING EFFORTS TO INCREASE ENERGY SECURITY OF ELIGIBLE 
              LATIN AMERICAN AND CARIBBEAN PARTNER COUNTRIES.

    (a) In General.--The Secretary of State, in consultation with the 
Secretary of Energy and the heads of other relevant Federal departments 
and agencies, shall, as appropriate, prioritize and expedite the 
efforts of the Department of State and those other departments and 
agencies in supporting the efforts of eligible Latin American and 
Caribbean partner countries to increase their energy security, 
including through--
            (1) providing diplomatic and political support to these 
        governments, as necessary--
                    (A) to facilitate international negotiations 
                concerning cross-border infrastructure and 
                transactions;
                    (B) to enhance and build the Latin America's and 
                the Caribbean's regulatory environment with respect to 
                energy; and
                    (C) to develop accessible, transparent, and 
                competitive energy markets supplied by diverse sources, 
                types, and routes of energy to achieve energy 
                efficiency; and
            (2) providing support to improve Latin American and 
        Caribbean energy markets, including early-stage project support 
        and late-stage project support for the construction or 
        improvement of energy and related infrastructure, as 
        necessary--
                    (A) to diversify the energy sources and supply 
                routes of eligible Latin American and Caribbean partner 
                countries;
                    (B) to enhance energy market integration across the 
                region; and
                    (C) to increase competition and aggregate energy 
                markets.
    (b) Project Selection.--
            (1) In general.--The Federal departments and agencies 
        described in subsection (a) shall identify energy 
        infrastructure projects that would be appropriate for United 
        States assistance under this section.
            (2) Project eligibility.--A project is eligible for United 
        States assistance under this section if the project--
                    (A)(i) improves electricity transmission 
                infrastructure and power generation through the use of 
                a broad power mix, prioritizing renewable energy or 
                energy efficiency; or
                    (ii) advances electricity storage projects, smart 
                grid projects, distributed generation models, or other 
                technological innovations, as appropriate; and
                    (B) is located in an eligible Latin American of 
                Caribbean partner country.
            (3) Preference.--In selecting among projects that are 
        eligible under paragraph (2), the Federal departments and 
        agencies described in subsection (a) shall give preference to 
        projects that--
                    (A) link the energy systems of two or more Latin 
                American and Caribbean partner countries;
                    (B) address the impacts of climate change;
                    (C) enhance resilience to global economic shocks;
                    (D) are expected to enhance energy market 
                integration;
                    (E) can attract funding from the private sector, an 
                international financial institution, or the government 
                of the country in which the project will be carried 
                out; or
                    (F) have the potential to use United States goods 
                and services during project implementation.
    (c) Types of Assistance.--
            (1) Diplomatic and political support.--The Secretary of 
        State shall provide diplomatic and political support to the 
        governments of eligible Latin American and Caribbean countries, 
        as necessary, including by using the diplomatic and political 
        influence and expertise of the Department of State to build the 
        capacity of those countries to resolve any impediments to the 
        development of projects selected under subsection (b).
            (2) Early-stage project support.--The Director of the Trade 
        and Development Agency, in consultation with the Inter-American 
        Development Bank, the Caribbean Development Bank, and the World 
        Bank, shall provide early-stage project support with respect to 
        projects selected under subsection (b), as necessary.
            (3) Late-stage project support.--Federal departments and 
        agencies described in subsection (a) that provide late-stage 
        project support shall do so with respect to projects selected 
        under subsection (b), as necessary.
    (d) Exception From Certain Limitation Under BUILD Act.--
            (1) In general.--For purposes of providing support for 
        projects under this section--
                    (A) the United States International Development 
                Finance Corporation may provide support for projects in 
                countries with upper-middle-income economies or high-
                income economies (as those terms are defined by the 
                World Bank);
                    (B) the restriction under section 1412(c)(2) of the 
                BUILD Act of 2018 (22 U.S.C. 9612(c)(2)) shall not 
                apply; and
                    (C) the Corporation shall restrict the provision of 
                such support in a country described in subparagraph (A) 
                unless--
                            (i) the President certifies to the 
                        appropriate congressional committees that such 
                        support furthers the national economic or 
                        foreign policy interests of the United States; 
                        and
                            (ii) such support is--
                                    (I) designed to produce significant 
                                developmental outcomes or provide 
                                developmental benefits to the poorest 
                                population of that country; or
                                    (II) necessary to preempt or 
                                counter efforts by a strategic 
                                competitor of the United States to 
                                secure significant political or 
                                economic leverage or acquire national 
                                security-sensitive technologies or 
                                infrastructure in a country that is an 
                                ally or partner of the United States.
    (e) Progress Reports.--Not later than one year after the date of 
the enactment of this Act, and annually thereafter for seven years, the 
President shall transmit to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate a report on progress made in providing assistance for projects 
under this section that includes the following:
            (1) A description of the energy infrastructure projects the 
        United States has identified for such assistance.
            (2) For each such project--
                    (A) A description of the role of the United States 
                in the project, including in early-stage project 
                support and late-stage project support;
                    (B) the amount and form of any debt financing and 
                insurance provided by the United States Government for 
                the project;
                    (C) the amount and form of any early-stage project 
                support; and
                    (D) an update on the progress made on the project 
                as of the date of the report.
    (f) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean 
partner country'' has the meaning given that term in section 3(g).
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