Energy Resource Governance Initiative Act of 2021
Bill: H.R.2785 | Sponsor: Rep. Kinzinger, Adam (R-IL)
Policy area: International Affairs

Summary:
Energy Resource Governance Initiative Act of 2021
This bill establishes the Energy Resource Governance Initiative within the Department of State to promote responsible and sustainable mining practices through international collaboration.
The initiative must seek to foster integrated and resilient supply chains, responsible critical mineral sourcing, and mineral-sector good governance. It must also seek to minimize potential adverse impacts of increasing renewable energy demand on mineral-rich countries.

To establish in the Department of State the United States Energy 
     Resource Governance Initiative to promote sound mining sector 
   governance and resilient energy mineral supply chains by bringing 
   countries together to engage on advancing governance principles, 
   sharing best practices, and encouraging a level playing field for 
                  investment, 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 ``Energy Resource Governance 
Initiative Act of 2021''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) diverse and resilient energy and mineral supply chains 
        are vital for the United States, our partners and allies, and 
        for global economic stability;
            (2) many green and renewable energy technologies, including 
        electric vehicles, wind turbines, and battery storage 
        technology, require high inputs of specific energy minerals, 
        which may cause the global demand for these products to 
        skyrocket over the coming decades;
            (3) United States and international efforts to drive global 
        emission reductions and net zero goals rely on these critical 
        minerals to deploy clean energy technologies;
            (4) vulnerable critical mineral supply chains present a 
        significant risk to United States national security interests, 
        including--
                    (A) overreliance on a single or limited supply 
                source for critical mineral inputs; and
                    (B) poor mineral sector governance, including weak 
                labor standards, limited environmental protections, 
                failure to develop a social license to operate, which 
                deters responsible investment and limits the long-term 
                sustainability of mining operations;
            (5) the People's Republic of China (PRC) leads the world in 
        the mining and production of rare earth metals, comprising 
        nearly 90 percent of the global market, and it is in the 
        national security interest of the United States to provide an 
        alternative to PRC domination of these supply chains; and
            (6) the United States should build upon the efforts made 
        with the Governments of Australia, Botswana, Canada, and Peru 
        in creating the Energy Resource Governance Initiative (ERGI) to 
        advance governance principles and best practices for mineral 
        extraction.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States to--
            (1) promote sound mining sector governance and resilient 
        energy mineral supply chains by bringing countries together to 
        engage on advancing governance principles, sharing best 
        practices, and encouraging a level playing field for 
        investment;
            (2) encourage governments to incorporate responsible 
        mineral supply chain sourcing principles into their national 
        climate strategies and clean energy technology procurement 
        plans; and
            (3) encourage companies, including green and renewable 
        energy, to source 100 percent of their critical mineral supply 
        from responsible and environmentally sound supply chains by 
        2030.

SEC. 4. ENERGY RESOURCE GOVERNANCE INITIATIVE.

    (a) Establishment.--There is established in the Department of State 
an entity to be known as the ``Energy Resource Governance Initiative'' 
(ERGI).
    (b) Objectives.--The objectives of the Energy Resource Governance 
Initiative established under subsection (a) are to carry out the 
following:
            (1) Promote responsible and sustainable mining practices 
        globally by enabling sharing of best practices for mineral 
        extraction management and governance.
            (2) Foster integrated and resilient supply chains and help 
        identify options to diversify and strengthen supply chains.
            (3) Facilitate trade and industry connections to promote 
        responsible critical mineral sourcing and advance mineral 
        sector good governance.
            (4) Facilitate mineral sector technical assistance to 
        partner countries to identify new supply chain opportunities, 
        sustainably and responsibly commercialize critical mineral 
        sector resources, and mitigate supply chain vulnerabilities.
            (5) Encourage the international community to incorporate 
        responsible mineral supply chain sourcing principles, including 
        resource surveys, into their national climate strategies and 
        clean energy technology procurement plans.
            (6) Seek to minimize the adverse impact that increasing 
        renewable energy demand could have on mineral-rich countries.
    (c) Eligible Activities.--Activities carried out under the Energy 
Resource Governance Initiative shall--
            (1) be carried out in countries in which the Secretary of 
        State determines there is an adequate level of partner country 
        commitment, partner country needs, absorptive capacity, 
        sustainment capacity, and efforts of private sector donors;
            (2) be closely coordinated among diplomatic and development 
        missions, and relevant participating Federal departments and 
        agencies; and
            (3) complement and enhance efforts to promote democratic 
        governance, the rule of law, human rights, and economic growth.
    (d) Diplomatic and Political Support.--The Secretary of State, in 
coordination with other relevant Federal departments and agencies, 
shall provide diplomatic and political support to partner countries, 
including by using the diplomatic and political influence and expertise 
of the Department of State to build the capacity of such countries to 
resolve any impediments to the implementation of activities pursuant to 
subsection (c).
    (e) Coordination With Private Sector.--The Secretary of State, 
through the Bureau of Energy Resources of the Department of State, 
shall coordinate with the United States International Development 
Finance Corporation to mobilize private sector engagement and 
partnership to facilitate the objectives described in subsection (b), 
including by supporting investment frameworks that attract top tier 
private sector investment focused on responsible mineral extraction.
    (f) Report.--Not later than 180 days after the date of the 
enactment of this Act and annually thereafter for the following ten 
years, the Secretary of State shall provide a report to the appropriate 
congressional committees that includes assessments of--
            (1) progress towards achievement of the objectives 
        described in subsection (b);
            (2) success of coordination with the private sector 
        pursuant to subsection (e);
            (3) efforts by the Chinese Communist Party or related 
        entities to influence the policies of ERGI partner countries 
        with regard to their mining sectors or supply chains; and
            (4) how ERGI is furthering the national security interests 
        of the United States.
    (g) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations of the Senate.
                                 <all>