An amendment numbered 20 printed in Part B of House Report 110-300 to make findings regarding fuel supplies and expresses the Sense of Congress that the U.S. should further global energy security and promote democratic development in resource rich foreign countries by encouraging further participation in the Extractive Industries Transparency Initiative and other international initiatives.

1. Adds SEC. 2104. REPORT ON PROGRESS MADE IN PROMOTING TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS at the end of subtitle A of title II

   Adds a section

   Inserted: SEC. 2104. REPORT ON PROGRESS MADE IN PROMOTING TRANSPARENCY IN EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS.

   Inserted: (a) Purpose.--The purpose of this section is to--

   Inserted: (1) ensure greater United States energy security by combating corruption in the governments of foreign countries that receive revenues from the sale of their natural resources, and

   Inserted: (2) enhance the development of democracy and increase political and economic stability in such resource-rich foreign countries.

   Inserted: (b) Findings.--Congress makes the following findings:

   Inserted: (1) The United States is the world's largest consumer of oil. The United States accounts for 25 percent of global daily oil demand--despite having less than 3 percent of the world's proven reserves.

   Inserted: (2) 6 of the top 10 suppliers of United States crude oil imports rank in the bottom third of the world's most corrupt countries, according to Transparency International.

   Inserted: (3) Corrupt and non-transparent foreign governments have a much higher risk of instability and violent unrest, often leading to disruptions of energy supplies. In addition, the citizens of such countries often remain impoverished despite significant resource wealth.

   Inserted: (4) Oil is a fungible commodity. Therefore supply disruptions due to political instability in other parts of the world affect United States domestic price and supply regardless of the source of supply.

   Inserted: (5) Transparency in extractive revenue transactions is important to decreasing corruption and increasing energy security.

   Inserted: (6) The Extractive Industries Transparency Initiative (EITI) serves to improve investment climates through the audited disclosure of revenue payments.

   Inserted: (c) Statement of Policy.--It is the policy of the United States--

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   Inserted: (1) to increase energy security by decreasing energy reliance on corrupt foreign governments;

   Inserted: (2) to promote global energy security through promotion of programs such as EITI that seek to instill transparency and accountability into extractive industries resource payments.

   Inserted: (d) Sense of Congress.--It is the sense of Congress that the United States should further global energy security and promote democratic development in resource-rich foreign countries by--

   Inserted: (1) encouraging further participation in the Extractive Industries Transparency Initiative (EITI) by eligible countries and companies;

   Inserted: (2) promoting the efficacy of the EITI program by ensuring a robust and candid review mechanism;

   Inserted: (3) establishing a domestic reporting requirement for all companies that purchase natural resources from or make payments to government officials or entities connected with the extraction of such resources so that citizens can monitor expenditures by government officials to ensure accountability for illicit diversion and wasteful use of revenues received; and

   Inserted: (4) seeking to establish an international reporting requirement similar to the reporting requirement described in paragraph (3) in order to ensure that all international companies and foreign countries are competing and cooperating on a level playing field.

   Inserted: (e) Report.--

   Inserted: (1) Report required.--Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the Secretary of State shall submit to Congress a report on progress made in promoting transparency in extractive industries resource payments.

   Inserted: (2) Matters to be included.--The report required by paragraph (1) shall include a detailed description of United States participation in the Extractive Industries Transparency Initiative (EITI), bilateral and multilateral diplomatic efforts to further participation in the EITI, and other United States initiatives to strengthen energy security, deter energy kleptocracy, and promote transparency in the extractive industries.

   Original wording

   At the end of subtitle A of title II of the bill, insert the following:

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As printed