II
109th CONGRESS
1st Session
S. 745
IN THE SENATE OF THE UNITED STATES
April 11, 2005
Mr. Byrd (for himself, Mr. Jeffords, Mr. Kerry, and Mr. Bingaman) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations
A BILL
To amend the Global Environmental Protection Assistance Act of 1989 to promote international clean energy development, to open and expand clean energy markets abroad, to engage developing nations in the advancement of sustainable energy use and climate change actions, and for other purposes.
Short title
This Act may be cited as the
International Clean Energy Deployment
and Global Energy Markets Investment Act of 2005
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Purposes
The purposes of this Act are—
to strengthen the cooperation of the United States with developing countries in addressing critical energy needs and global climate change;
to promote sustainable economic development, increase access to modern energy services, reduce greenhouse gas emissions, and strengthen energy security and independence in developing countries through the deployment of clean energy technologies;
to facilitate the export of clean energy technologies to developing countries;
to reduce the trade deficit of the United States through the export of United States energy technologies and technological expertise;
to retain and create manufacturing and related service jobs in the United States;
to integrate the objectives described in paragraphs (1) through (5) in a manner consistent with interests of the United States, into the foreign policy of the United States;
to authorize funds for clean energy development activities in developing countries; and
to ensure that activities funded under part C of title VII of the Global Environmental Protection Assistance Act of 1989 (as added by section 3) contribute to economic growth, poverty reduction, good governance, the rule of law, property rights, and environmental protection.
Clean energy technology deployment in developing countries
Title VII of the Global Environmental Protection Assistance Act of 1989 (Public Law 101–240; 103 Stat. 2521) is amending by adding at the end the following:
Clean energy technology deployment in developing countries
Definitions
In this part:
Clean energy technology
The term clean energy technology means an energy supply or end-use technology that, over its lifecycle and compared to a similar technology already in commercial use in any developing country—
is reliable, affordable, economically viable, socially acceptable, and compatible with the needs and norms of the host country;
results in—
reduced emissions of greenhouse gases; or
increased geological sequestration; and
may—
substantially lower emissions of air pollutants; and
generate substantially smaller or less hazardous quantities of solid or liquid waste.
Department
The term Department means the Department of State.
Developing country
In general
The term developing country means any country not listed in Annex I of the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.
Inclusion
The term developing country may include a country with an economy in transition, as determined by the Secretary.
Geological sequestration
The term geological sequestration means the capture and long-term storage in a geological formation of a greenhouse gas from an energy producing facility, which prevents the release of greenhouse gases into the atmosphere.
Greenhouse gas
The term greenhouse gas means—
carbon dioxide;
methane;
nitrous oxide;
hydrofluorocarbons;
perfluorocarbons; and
sulfur hexafluoride.
Institution of higher education
The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
Interagency working group
The term Interagency Working Group means the Interagency Working Group on Clean Energy Technology Exports established under section 732(b)(1)(A).
National laboratory
The term National Laboratory means any of the following laboratories owned by the Department of Energy:
Ames Laboratory.
Argonne National Laboratory.
Brookhaven National Laboratory.
Fermi National Accelerator Laboratory.
Idaho National Engineering and Environmental Laboratory.
Lawrence Berkeley National Laboratory.
Lawrence Livermore National Laboratory.
Los Alamos National Laboratory.
National Energy Technology Laboratory.
National Renewable Energy Laboratory.
Oak Ridge National Laboratory.
Pacific Northwest National Laboratory.
Princeton Plasma Physics Laboratory.
Sandia National Laboratories.
Stanford Linear Accelerator Center.
Thomas Jefferson National Accelerator Facility.
Qualifying project
The term qualifying project means a project meeting the criteria established under section 735(b).
Secretary
The term Secretary means the Secretary of State.
State
The term State means—
a State;
the District of Columbia;
the Commonwealth of Puerto Rico; and
any other territory or possession of the United States.
Strategy
The term Strategy means the strategy established under section 733.
Task force
The term Task Force means the Task Force on International Clean Energy Cooperation established under section 732(a).
United states
The term United States, when used in a geographical sense, means all of the States.
Organization
Task Force
Establishment
Not later than 90 days after the date of enactment of this part, the President shall establish a Task Force on International Clean Energy Cooperation.
Composition
The Task Force shall be composed of—
the Secretary, who shall serve as Chairperson; and
representatives, appointed by the head of the respective Federal agency, of—
the Department of Commerce;
the Department of the Treasury;
the Department of Energy;
the Environmental Protection Agency;
the United States Agency for International Development;
the Export-Import Bank;
the Overseas Private Investment Corporation;
the Trade and Development Agency;
the Small Business Administration;
the Office of United States Trade Representative; and
other Federal agencies, as determined by the President.
Duties
Lead agency
The Task Force shall act as the lead agency in the development and implementation of strategy under section 733.
Coordination and implementation
The Task Force shall support the coordination and implementation of programs under sections 1331, 1332, and 1608 of the Energy Policy Act of 1992 (42 U.S.C. 13361, 13362, 13387).
Termination
The Task Force, including any working group established by the Task Force, shall terminate on January 1, 2016.
Working Groups
Establishment
The Task Force—
shall establish an Interagency Working Group on Clean Energy Technology Exports; and
may establish other working groups as necessary to carry out this part.
Composition of interagency working group
The Interagency Working Group shall be composed of—
the Secretary of Energy, the Secretary of Commerce, and the Administrator of the United States Agency for International Development, who shall jointly serve as Chairpersons; and
other members, as determined by the Task Force.
Interagency Center
Establishment
There is established an Interagency Center in the Office of International Energy Market Development of the Department of Energy.
Duties
The Interagency Center shall—
assist the Interagency Working Group in carrying out this part; and
perform such other duties as are determined to be appropriate by the Secretary of Energy.
Strategy
Initial strategy
In general
Not later than 1 year after the date of enactment of this part, the Task Force shall develop and submit to the President a Strategy to—
support the development and implementation of programs and policies in developing countries to promote the adoption of clean energy technologies and energy efficiency technologies and strategies, with an emphasis on those developing countries that are expected to experience the most significant growth in energy production and use over the next 20 years;
open and expand clean energy technology markets and facilitate the export of clean energy technology to developing countries, in a manner consistent with the subsidy codes of the World Trade Organization;
integrate into the foreign policy objectives of the United States the promotion of—
clean energy technology deployment and reduced greenhouse gas emissions in developing countries; and
clean energy technology exports;
establish a pilot program that provides financial assistance for qualifying projects; and
develop financial mechanisms and instruments (including securities that mitigate the political and foreign exchange risks of uses that are consistent with the foreign policy of the United States by combining the private sector market and government enhancements) that—
are cost-effective; and
facilitate private capital investment in clean energy technology projects in developing countries.
Transmission to congress
On receiving the Strategy from the Task Force under paragraph (1), the President shall transmit to Congress the Strategy.
Updates
In general
Not later than 2 years after the date of submission of the initial Strategy under subsection (a)(1), and every 2 years thereafter—
the Task Force shall—
review and update the Strategy; and
report the results of the review and update to the President; and
the President shall submit to Congress a report on the Strategy.
Inclusions
The report shall include—
the updated Strategy;
a description of the assistance provided under this part;
the results of the pilot projects carried out under this part, including a comparative analysis of the relative merits of each pilot project;
the activities and progress reported by developing countries to the Department under section 736(b)(2); and
the activities and progress reported towards meeting the goals established under section 736(b)(2).
Content
In developing, updating, and submitting a report on the Strategy, the Task Force shall—
assess—
energy trends, energy needs, and potential energy resource bases in developing countries; and
the implications of the trends and needs for domestic and global economic and security interests;
analyze technology, policy, and market opportunities for international development, demonstration, and deployment of clean energy technologies and strategies;
examine relevant trade, tax, finance, international, and other policy issues to assess what policies, in the United States and in developing countries, would help open markets and improve clean energy technology exports of the United States in support of—
enhancing energy innovation and cooperation, including energy sector and market reform, capacity building, and financing measures;
improving energy end-use efficiency technologies (including buildings and facilities) and vehicle, industrial, and co-generation technology initiatives; and
promoting energy supply technologies, including fossil, nuclear, and renewable technology initiatives;
investigate issues associated with building capacity to deploy clean energy technology in developing countries, including—
energy-sector reform;
creation of open, transparent, and competitive markets for clean energy technologies;
the availability of trained personnel to deploy and maintain clean energy technology; and
demonstration and cost-buydown mechanisms to promote first adoption of clean energy technology;
establish priorities for promoting the diffusion and adoption of clean energy technologies and strategies in developing countries, taking into account economic and security interests of the United States and opportunities for the export of technology of the United States;
identify the means of integrating the priorities established under paragraph (5) into bilateral, multilateral, and assistance activities and commitments of the United States;
establish methodologies for the measurement, monitoring, verification, and reporting under section 736(b)(2) of the greenhouse gas emission impacts of clean energy projects and policies in developing countries;
establish a registry that is accessible to the public through electronic means (including through the Internet) in which information reported under section 736(b)(2) shall be collected;
make recommendations to the heads of appropriate Federal agencies on ways to streamline Federal programs and policies to improve the role of the agencies in the international development, demonstration, and deployment of clean energy technology;
make assessments and recommendations regarding the distinct technological, market, regional, and stakeholder challenges necessary to deploy clean energy technology;
recommend conditions and criteria that will help ensure that funds provided by the United States promote sound energy policies in developing countries while simultaneously opening their markets and exporting clean energy technology of the United States;
establish an advisory committee, composed of representatives of the private sector and other interested groups, on the export and deployment of clean energy technology;
establish a coordinated mechanism for disseminating information to the private sector and the public on clean energy technologies and clean energy technology transfer opportunities; and
monitor the progress of each Federal agency in promoting the purposes of this part, in accordance with—
the 5-year strategic plan submitted to Congress in October 2002; and
other applicable law.
Clean energy assistance to developing countries
In general
Subject to section 736, the Secretary may provide assistance to developing countries for activities that are consistent with the priorities established in the Strategy.
Assistance
The assistance may be provided through—
the Millennium Challenge Corporation established under section 604(a) of the Millennium Challenge Act of 2003 (22 U.S.C. 7703(a));
the Global Village Energy Partnership; and
other international assistance programs or activities of—
the Department;
the United States Agency for International Development; and
other Federal agencies.
Eligible activities
The activities supported under this section include—
development of national action plans and policies to—
facilitate the provision of clean energy services and the adoption of energy efficiency measures;
identify linkages between the use of clean energy technologies and the provision of agricultural, transportation, water, health, educational, and other development-related services; and
integrate the use of clean energy technologies into national strategies for economic growth, poverty reduction, and sustainable development;
strengthening of public and private sector capacity to—
assess clean energy needs and options;
identify opportunities to reduce, avoid, or sequester greenhouse gas emissions;
establish enabling policy frameworks;
develop and access financing mechanisms; and
monitor progress in implementing clean energy and greenhouse gas reduction strategies;
enactment and implementation of market-favoring measures to promote commercial-based energy service provision and to improve the governance, efficiency, and financial performance of the energy sector; and
development and use of innovative public and private mechanisms to catalyze and leverage financing for clean energy technologies, including use of the development credit authority of the United States Agency for International Development and credit enhancements through the Export-Import Bank and the Overseas Private Investment Corporation.
Pilot program for demonstration projects
In general
Not later than 2 years after the date of enactment of this part, the Secretary, in consultation with the Secretary of Energy and the Administrator of the United States Agency for International Development, shall, by regulation, establish a pilot program that provides financial assistance for qualifying projects consistent with the Strategy and the performance criteria established under section 736.
Qualifying projects
To be qualified to receive assistance under this section, a project shall—
be a project—
to construct an energy production facility in a developing country for the production of energy to be consumed in the developing country; or
to improve the efficiency of energy use in a developing country;
be a project that—
is submitted by a firm of the United States to the Secretary in accordance with procedures established by the Secretary by regulation;
meets the requirements of section 1608(k) of the Energy Policy Act of 1992 (42 U.S.C. 13387(k));
uses technology that has been successfully developed or deployed in the United States; and
is selected by the Secretary without regard to the developing country in which the project is located, with notice of the selection published in the Federal Register; and
when deployed, result in a greenhouse gas emission reduction (when compared to the technology that would otherwise be deployed) of at least—
in the case of a unit or energy-efficiency measure placed in service during the period beginning on the date of enactment of this part and ending on December 31, 2009, 20 percentage points;
in the case of a unit or energy-efficiency measure placed in service during the period beginning on January 1, 2010, and ending on December 31, 2019, 40 percentage points; and
in the case of a unit or energy-efficiency measure placed in service after December 31, 2019, 60 percentage points.
Financial assistance
In general
For each qualifying project selected by the Secretary to participate in the pilot program, the Secretary shall make a loan or loan guarantee available for not more than 50 percent of the total cost of the project.
Interest rate
The interest rate on a loan made under this subsection shall be equal to the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.
Host country contribution
To be eligible for a loan or loan guarantee for a project in a host country under this subsection, the host country shall—
make at least a 10 percent contribution toward the total cost of the project; and
verify to the Secretary (using the methodology established under section 733(c)(7)) the quantity of annual greenhouse gas emissions reduced, avoided, or sequestered as a result of the deployment of the project.
Capacity building research
In general
A proposal made for a qualifying project may include a research component intended to build technological capacity within the host country.
Research
To be eligible for a loan or loan guarantee under this paragraph, the research shall—
be related to the technology being deployed; and
involve—
an institution in the host country; and
a participant from the United States that is an industrial entity, an institution of higher education, or a National Laboratory.
Host country contribution
To be eligible for a loan or loan guarantee for research in a host country under this paragraph, the host country shall make at least a 50 percent contribution toward the total cost of the research.
Grants
In general
The Secretary, in consultation with the Secretary of Energy and the Administrator of the United States Agency for International Development, may, at the request of the United States ambassador to a host country, make grants to help address and overcome specific, urgent, and unforeseen obstacles in the implementation of a qualifying project.
Maximum amount
The total amount of a grant made for a qualifying project under this paragraph may not exceed $1,000,000.
Performance criteria for major energy consumers
Identification of major energy consumers
Not later than 1 year after the date of enactment of this part, the Task Force shall identify those developing countries that, by virtue of present and projected energy consumption, represent the predominant share of energy use among developing countries.
Performance criteria
As a condition of accepting assistance provided under sections 734 and 735, any developing country identified under subsection (a) shall—
meet the eligibility criteria established under section 607 of the Millennium Challenge Act of 2003 (22 U.S.C. 7706), notwithstanding the eligibility of the developing country as a candidate country under section 606 of that Act (22 U.S.C. 7705); and
agree to establish and report on progress in meeting specific goals for reduced energy-related greenhouse gas emissions and specific goals for—
increased access to clean energy services among unserved and underserved populations;
increased use of renewable energy resources;
increased use of lower greenhouse gas-emitting fossil fuel-burning technologies;
more efficient production and use of energy;
greater reliance on advanced energy technologies;
the sustainable use of traditional energy resources; or
other goals for improving energy-related environmental performance, including the reduction or avoidance of local air and water quality and solid waste contaminants.
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this part for each of fiscal years 2006 through 2015.
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