[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 2798 Reported in Senate (RS)]
Calendar No. 593
110th CONGRESS
2d Session
H. R. 2798
[Report No. 110-273]
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 24, 2007
Received; read twice and referred to the Committee on Foreign Relations
March 4, 2008
Reported by Mr. Biden, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
AN ACT
To reauthorize the programs of the Overseas Private Investment
Corporation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Overseas Private Investment
Corporation Reauthorization Act of 2007''.</DELETED>
<DELETED>SEC. 2. FINDINGS.</DELETED>
<DELETED> The Congress finds the following:</DELETED>
<DELETED> (1) Since its founding in 1971, the Overseas
Private Investment Corporation (in this section referred to as
``OPIC'') has helped to mobilize and facilitate private capital
by United States investors in developing and emerging market
countries in support of United States foreign policy and
development goals.</DELETED>
<DELETED> (2) OPIC assistance should not, in any way,
support projects in countries that reject their obligations to
support international peace, security, and basic human
rights.</DELETED>
<DELETED> (3) OPIC assistance should not be provided to
those who support enemies of the United States.</DELETED>
<DELETED> (4) OPIC assistance is a privilege and should be
granted to persons that, along with their affiliated companies,
demonstrate responsible and sustainable business practices,
particularly with regard to the environment, international
worker rights, and efforts against genocide and nuclear
proliferation. Denial of OPIC assistance is not a penalty or
sanction.</DELETED>
<DELETED> (5) Over OPIC's 35-year history, OPIC has
supported $177,000,000,000 in operating investments in more
than 150 developing countries, helping to create more than
800,000 jobs and some $13,000,000,000 in host-government
revenues.</DELETED>
<DELETED> (6) OPIC projects have generated $71,000,000,000
in United States exports and supported more than 271,000 United
States jobs.</DELETED>
<DELETED> (7) Projects assisted by OPIC in fiscal year 2006
are projected to generate $1,000,000,000 in United States
exports, support more than 2,700 United States jobs, and have a
positive impact on the United States balance of
payments.</DELETED>
<DELETED> (8) In fiscal year 2006, 87 percent of all OPIC-
supported projects supported small-and-medium-sized businesses
in the United States.</DELETED>
<DELETED> (9) In an era of limited Federal budgetary
resources, OPIC has consistently demonstrated an ability to
operate on a self-sustaining basis to support United States
companies, all at a net cost of zero to the United States
taxpayer.</DELETED>
<DELETED> (10) OPIC has reserves totaling approximately
$5,300,000,000 and will make an estimated net budget
contribution to the international affairs account of
$159,000,000 in fiscal year 2008.</DELETED>
<DELETED>SEC. 3. REAUTHORIZATION OF OPIC PROGRAMS.</DELETED>
<DELETED> Section 235(a)(2) of the Foreign Assistance Act of 1961
(22 U.S.C. 2195(a)(2)) is amended by striking ``September 30, 2007''
and inserting ``September 30, 2011''.</DELETED>
<DELETED>SEC. 4. PREFERENTIAL CONSIDERATION OF CERTAIN INVESTMENT
PROJECTS.</DELETED>
<DELETED> Section 231(f) of the Foreign Assistance Act of 1961 (22
U.S.C. 2191(f)) is amended to read as follows:</DELETED>
<DELETED> ``(f) to give preferential consideration to
investment projects in less developed countries the governments
of which are receptive to private enterprise, domestic and
foreign, and to projects in countries the governments of which
are willing and able to maintain conditions that enable private
enterprise to make its full contribution to the development
process;''.</DELETED>
<DELETED>SEC. 5. REQUIREMENTS REGARDING INTERNATIONAL WORKER
RIGHTS.</DELETED>
<DELETED> (a) Country Requirements.--Subsection (a) of section 231A
of the Foreign Assistance Act of 1961 (22 U.S.C. 2191a(a)) is amended--
</DELETED>
<DELETED> (1) by amending the subsection heading to read as
follows: ``International Worker Rights'';</DELETED>
<DELETED> (2) in paragraph (4), by striking ``(4) In'' and
inserting ``(5) Additional determination.--In'' ; and</DELETED>
<DELETED> (3) by striking paragraphs (1) through (3) and
inserting the following:</DELETED>
<DELETED> ``(1) Limitation on opic activities.--(A) The
Corporation may insure, reinsure, guarantee, or finance a
project only if the country in which the project is to be
undertaken has made or is making significant progress towards
the recognition, adoption, and implementation of laws that
substantially provide international worker rights, including in
any designated zone, or special administrative region or area,
in that country.</DELETED>
<DELETED> ``(B) The Corporation shall also include the
following language, in substantially the following form, in all
contracts which the Corporation enters into with eligible
investors to provide financial support under this
title:</DELETED>
<DELETED> ```The investor agrees not to take any actions to
obstruct or prevent employees of the foreign enterprise from
exercising their international worker rights (as defined in
section 238(h) of the Foreign Assistance Act of 1961), and
agrees to adhere to the obligations regarding those
international worker rights.'</DELETED>
<DELETED> ``(2) Preference to certain countries.--To the
degree possible and consistent with its development objectives,
the Corporation shall give preferential consideration to
projects in countries that have adopted, maintain, and enforce
laws that substantially provide international worker
rights.</DELETED>
<DELETED> ``(3) Use of annual reports on international
worker rights.--The Corporation shall, in carrying out
paragraph (1)(A), use, among other sources, the reports
submitted to the Congress pursuant to section 504 of the Trade
Act of 1974. Such other sources include the observations,
reports, and recommendations of the International Labor
Organization, and other relevant organizations.</DELETED>
<DELETED> ``(4) Inapplicability to humanitarian
activities.--Paragraph (1) shall not prohibit the Corporation
from providing any insurance, reinsurance, guaranty, financing,
or other assistance for the provision of humanitarian
assistance in a country.''.</DELETED>
<DELETED> (b) Board of Directors.--Section 233(b) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2193(b)) is amended by adding at the
end the following: ``The selection of the small business, organized
labor, and cooperative directors should be made, respectively, in
consultation with relevant representative organizations.''.</DELETED>
<DELETED> (c) Definitions.--Section 238 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2198) is amended--</DELETED>
<DELETED> (1) in subsection (f), by striking ``and'' after
the semicolon;</DELETED>
<DELETED> (2) in subsection (g), by striking the period at
the end and inserting ``; and''; and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED> ``(h) the term `international worker rights'
means--</DELETED>
<DELETED> ``(1) internationally recognized worker
rights, as defined in section 507(4) of the Trade Act
of 1974 (19 U.S.C. 2467(4)); and</DELETED>
<DELETED> ``(2) the elimination of discrimination
with respect to employment and occupation.''.</DELETED>
<DELETED> (d) General Provisions and Powers.--Section 239 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2199) is amended--</DELETED>
<DELETED> (1) in subsection (h), by adding at the end the
following: ``In addition, the Corporation should consult with
relevant stakeholders in developing such criteria.'';
and</DELETED>
<DELETED> (2) in subsection (i), in the first sentence, by
inserting ``, including international worker rights,'' after
``fundamental freedoms''.</DELETED>
<DELETED>SEC. 6. ENVIRONMENTAL ASSESSMENTS.</DELETED>
<DELETED> Section 231A(b) of the Foreign Assistance Act of 1961 (22
U.S.C. 2191a(b)) is amended to read as follows:</DELETED>
<DELETED> ``(b) Environmental Impact.--The Board of Directors of the
Corporation shall not vote in favor of any action proposed to be taken
by the Corporation that is likely to have significant adverse
environmental impacts, unless for at least 60 days before the date of
the vote--</DELETED>
<DELETED> ``(1) an environmental impact assessment, or
initial environmental audit, analyzing the environmental
impacts of the proposed action and of alternatives to the
proposed action has been completed by the project applicant and
made available to the Board of Directors; and</DELETED>
<DELETED> ``(2) such assessment or audit has been made
available to the public of the United States, locally affected
groups in the host country, and host country nongovernmental
organizations.''.</DELETED>
<DELETED>SEC. 7. COMMUNITY SUPPORT.</DELETED>
<DELETED> Section 237 of the Foreign Assistance Act of 1961 (22
U.S.C. 2197) is amended by adding at the end the following:</DELETED>
<DELETED> ``(p) Community Support.--To the maximum extent
practicable, the Corporation shall require the applicant for a project
that is subject to section 231A(b) to obtain broad community support
for the project.''.</DELETED>
<DELETED>SEC. 8. CLIMATE CHANGE MITIGATION ACTION PLAN.</DELETED>
<DELETED> Title IV of chapter 2 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2291 et seq.) is amended by inserting after
section 234A the following new section:</DELETED>
<DELETED>``SEC. 234B. CLIMATE CHANGE MITIGATION.</DELETED>
<DELETED> ``(a) Mitigation Action Plan.--The Corporation shall, not
later than 180 days after the date of the enactment of the Overseas
Private Investment Corporation Reauthorization Act of 2007, institute a
climate change mitigation action plan that includes the
following:</DELETED>
<DELETED> ``(1) Clean and efficient energy technology.--
</DELETED>
<DELETED> ``(A) Increasing assistance.--The
Corporation shall establish a goal of substantially
increasing its support of projects that use, develop,
or otherwise promote the use of clean energy
technologies over the 4-year period beginning on the
date of the enactment of the Overseas Private
Investment Corporation Reauthorization Act of
2007.</DELETED>
<DELETED> ``(B) Preferential treatment to
projects.--The Corporation shall give preferential
treatment to the evaluation and awarding of assistance
for and provide greater flexibility in supporting
projects that use, develop, or otherwise promote the
use of clean and efficient energy
technologies.</DELETED>
<DELETED> ``(2) Environmental impact assessments.--
</DELETED>
<DELETED> ``(A) Greenhouse gas emissions.--The
Corporation shall, in making an environmental impact
assessment for a project under section 231A(b), take
into account the degree to which the project
contributes to the emission of greenhouse
gases.</DELETED>
<DELETED> ``(B) Other duties not affected.--The
requirement under subparagraph (A) is in addition to
any other requirement, obligation, or duty that the
Corporation has.</DELETED>
<DELETED> ``(3) Report to congressional committees.--The
Corporation shall, within 180 days after the date of the
enactment of the Overseas Private Investment Corporation
Reauthorization Act of 2007, submit to the Committee on Foreign
Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate a report on the plan developed
to carry out paragraph (1)(A). Thereafter, the Corporation
shall include in its annual report under section 240A a
discussion of such plan and its implementation.</DELETED>
<DELETED> ``(b) Extraction Investments.--</DELETED>
<DELETED> ``(1) Prior notification to congressional
committees.--The Corporation may not approve any contract of
insurance or reinsurance, or any guaranty, or enter into any
agreement to provide financing for any project which
significantly involves an extractive industry and in which
assistance by the Corporation would be valued at $10,000,000 or
more (including contingent liability), until at least 30 days
after the Corporation notifies the Committee on Foreign Affairs
of the House of Representatives and the Committee on Foreign
Relations of the Senate of such contract or
agreement.</DELETED>
<DELETED> ``(2) Commitment to eiti principles.--The
Corporation may approve a contract of insurance or reinsurance,
or any guaranty, or enter into an agreement to provide
financing to an eligible investor for a project that
significantly involves an extractive industry only if--
</DELETED>
<DELETED> ``(A) the eligible investor has agreed to
implement the Extractive Industries Transparency
Initiative principles and criteria, or substantially
similar principles and criteria; or</DELETED>
<DELETED> ``(B) the host country where the project
is to be carried out has committed to the Extractive
Industries Transparency Initiative principles and
criteria, or substantially similar principles and
criteria.</DELETED>
<DELETED> ``(3) Preference for certain projects.--With
respect to all projects that significantly involve an
extractive industry, the Corporation, to the degree possible
and consistent with its development objectives, shall give
preference to a project in which both the eligible investor has
agreed to implement the Extractive Industries Transparency
Initiative principles and criteria, or substantially similar
principles and criteria, and the host country where the project
is to be carried out has committed to the Extractive Industries
Transparency Initiative principles and criteria, or
substantially similar principles and criteria.</DELETED>
<DELETED> ``(4) Definitions.--In this subsection:</DELETED>
<DELETED> ``(A) Extractive industry.--The term
`extractive industry' refers to an enterprise engaged
in the exploration, development, or extraction of oil
and gas reserves, metal ores, gemstones, industrial
minerals, or coal.</DELETED>
<DELETED> ``(B) Extractive industries transparency
initiative principles and criteria.--The term
`Extractive Industries Transparency Initiative
principles and criteria' means the principles and
criteria of the Extractive Industries Transparency
Initiative, as set forth in Annex A to the Anti-
Corruption Policies and Strategies Handbook of the
Corporation, as published in September 2006.</DELETED>
<DELETED> ``(5) Reporting requirement.--The Corporation
shall include in its annual report required under section 240A
a description of its activities to carry out this
subsection.</DELETED>
<DELETED> ``(c) Definitions.--In this section:</DELETED>
<DELETED> ``(1) Clean and efficient energy technology.--The
term `clean and efficient energy technology' means an energy
supply or end-use technology--</DELETED>
<DELETED> ``(A) such as--</DELETED>
<DELETED> ``(i) solar technology;</DELETED>
<DELETED> ``(ii) wind technology;</DELETED>
<DELETED> ``(iii) geothermal
technology;</DELETED>
<DELETED> ``(iv) hydroelectric technology;
and</DELETED>
<DELETED> ``(v) carbon capture technology;
and</DELETED>
<DELETED> ``(B) that, over its life cycle and
compared to a similar technology already in commercial
use--</DELETED>
<DELETED> ``(i) is reliable, affordable,
economically viable, socially acceptable, and
compatible with the needs and norms of the
country involved;</DELETED>
<DELETED> ``(ii) results in--</DELETED>
<DELETED> ``(I) reduced emissions of
greenhouse gases; or</DELETED>
<DELETED> ``(II) increased
geological sequestration; and</DELETED>
<DELETED> ``(iii) may--</DELETED>
<DELETED> ``(I) substantially lower
emissions of air pollutants;
or</DELETED>
<DELETED> ``(II) generate
substantially smaller and less
hazardous quantities of solid or liquid
waste.</DELETED>
<DELETED> ``(2) Greenhouse gas.--The term `greenhouse gas'
means--</DELETED>
<DELETED> ``(A) carbon dioxide;</DELETED>
<DELETED> ``(B) methane;</DELETED>
<DELETED> ``(C) nitrous oxide;</DELETED>
<DELETED> ``(D) hydrofluorocarbons;</DELETED>
<DELETED> ``(E) perfluorocarbons; or</DELETED>
<DELETED> ``(F) sulfur hexafluoride.''.</DELETED>
<DELETED>SEC. 9. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE
CERTAIN RAILWAY CONNECTIONS AND RAILWAY-RELATED
CONNECTIONS.</DELETED>
<DELETED> Section 237 of the of the Foreign Assistance Act of 1961
(22 U.S.C. 2197) is further amended by adding at the end the
following:</DELETED>
<DELETED> ``(q) Prohibition on Assistance for Certain Railway
Projects.--The Corporation may not provide insurance, reinsurance, a
guaranty, financing, or other assistance to support the development or
promotion of any railway connection or railway-related connection that
does not traverse or connect with Armenia and does connect Azerbaijan
and Turkey.''.</DELETED>
<DELETED>SEC. 10. INELIGIBILITY OF PERSONS DOING CERTAIN BUSINESS WITH
STATE SPONSORS OF TERRORISM.</DELETED>
<DELETED> (a) In General.--Section 237 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2197) is further amended by adding at the end the
following:</DELETED>
<DELETED> ``(r) Ineligible Projects.--</DELETED>
<DELETED> ``(1) In general.--A project will not be eligible
to receive support provided by the Corporation under this title
if either of the following applies:</DELETED>
<DELETED> ``(A)(i) An applicant for insurance,
reinsurance, financing, or other support for a project
provided to the government of a state sponsor of
terrorism a loan, or an extension of credit, that
remains outstanding.</DELETED>
<DELETED> ``(ii) For purposes of this subparagraph,
the sale of goods, other than food or medicine, on any
terms other than a cash basis shall be considered to be
an extension of credit.</DELETED>
<DELETED> ``(B) An applicant for insurance,
reinsurance, financing, or other support for a project
has an investment commitment valued at $20,000,000 or
more for the energy sector in a country that is a state
sponsor of terrorism.</DELETED>
<DELETED> ``(2) Definitions.--In this subsection:</DELETED>
<DELETED> ``(A) Cash basis.--The term `cash basis'
refers to a sale in which the purchaser of goods or
services is required to make payment in full within 45
days after receiving the goods or services.</DELETED>
<DELETED> ``(B) Energy sector.--The term `energy
sector' refers to activities to develop or transport
petroleum or natural gas resources.</DELETED>
<DELETED> ``(C) Investment commitment.--The term
`investment commitment' means any of the following
activities if such activity is undertaken pursuant to a
commitment, or pursuant to the exercise of rights under
a commitment, that was entered into with the government
of a state sponsor of terrorism or a nongovernmental
entity in a country that is a state sponsor of
terrorism:</DELETED>
<DELETED> ``(i) The entry into a contract
that includes responsibility for the
development of petroleum resources located in a
country that is a state sponsor of terrorism,
or the entry into a contract providing for the
general supervision and guarantee of another
person's performance of such a
contract.</DELETED>
<DELETED> ``(ii) The purchase of a share of
ownership, including an equity interest, in
that development.</DELETED>
<DELETED> ``(iii) The entry into a contract
providing for the participation in royalties,
earnings, or profits in that development,
without regard to the form of the
participation.</DELETED>
<DELETED> ``(D) State sponsor of terrorism.--The
term `state sponsor of terrorism' means a country the
government of which the Secretary of State has
determined, for purposes of section 6(j) of the Export
Administration Act of 1979, section 620A of the Foreign
Assistance Act of 1961, section 40 of the Arms Export
Control Act, or any other provision of law, to be a
government that has repeatedly provided support for
acts of international terrorism.</DELETED>
<DELETED> ``(3) Certification.--</DELETED>
<DELETED> ``(A) By applicants.--A person or entity
applying for insurance, reinsurance, a guaranty,
financing, or other assistance under this title may not
receive such support unless its chief executive officer
certifies to the Corporation, under penalty of perjury,
that the person or entity and its majority-owned
subsidiaries are not engaged in any activity described
in subparagraph (A) or (B) of paragraph (1).</DELETED>
<DELETED> ``(B) By ultimate parent entities.--In the
case of an applicant that is a majority-owned entity of
another entity, in addition to the certification under
subparagraph (A), the chief executive officer of the
ultimate parent entity of the applicant must certify,
under penalty of perjury, that it and its majority-
owned subsidiaries are not engaged in any activity
described in subparagraph (A) or (B) of paragraph
(1).</DELETED>
<DELETED> ``(C) Application to straw man
transactions.--In any case in which--</DELETED>
<DELETED> ``(i) an applicant for insurance,
reinsurance, financing, or other assistance
under this title is providing goods and
services to a project,</DELETED>
<DELETED> ``(ii) more than 50 percent of
such goods and services are acquired from an
unaffiliated entity, and</DELETED>
<DELETED> ``(iii) the unaffiliated entity is
receiving $20,000,000 or more, or sums greater
than 50 percent of the amount of the assistance
provided by the Corporation for the project
(including contingent liability), for such
goods or services,</DELETED>
<DELETED>then the chief executive officer of the
unaffiliated entity must make a certification under
subparagraph (A), and any ultimate parent entity must
make a certification required by subparagraph
(B).</DELETED>
<DELETED> ``(D) Diligent inquiry.--A certification
required by subparagraph (A), (B), or (C) may be made
to the best knowledge and belief of the certifying
officer if that officer states that he or she has made
diligent inquiry into the matter certified.</DELETED>
<DELETED> ``(E) Exception.--(i) A chief executive
officer of an applicant or other entity may provide a
certification required by subparagraph (A), (B), or (C)
with respect to the activity of a majority-owned
subsidiary or entity notwithstanding activity by such
majority-owned subsidiary or entity that would cause a
project to be ineligible for support under subparagraph
(A) or (B) of paragraph (1) if such activity is carried
out under a contract or other obligation of such
majority-owned subsidiary or entity that was entered
into or incurred before the acquisition of such
majority-owned subsidiary or entity by the applicant or
ultimate parent entity.</DELETED>
<DELETED> ``(ii) Clause (i) shall not apply if the
terms of such contract or other obligation are expanded
or extended after such acquisition.</DELETED>
<DELETED> ``(F) Definition.--For purposes of this
paragraph, a person is an ultimate parent of an entity
if the person owns directly, or through majority
ownership of other entities, greater than 50 percent of
the equity of the entity.</DELETED>
<DELETED> ``(4) Exception.--The prohibition in paragraph (1)
shall not--</DELETED>
<DELETED> ``(A) apply to a loan, extension of
credit, or investment commitment by an applicant, or
other entity covered by a certification under
subparagraph (A), (B), or (C) of paragraph (3), in
Southern Sudan, Southern Kordofan/Nuba Mountains State,
Blue Nile State, or Abyei, Darfur, if the Corporation,
with the concurrence of the Secretary of State,
determines that such loan, extension of credit, or
investment commitment will provide emergency relief,
promote economic self-sufficiency, or implement a
nonmilitary program in support of a viable peace
agreement in Sudan, including the Comprehensive Peace
Agreement for Sudan and the Darfur Peace Agreement;
or</DELETED>
<DELETED> ``(B) prohibit the Corporation from
providing support for projects in Southern Sudan,
Southern Kordofan/Nuba Mountains State, Blue Nile
State, and Abyei, Darfur, if the Corporation, with the
concurrence of the Secretary of State, determines that
such projects will provide emergency relief, promote
economic self-sufficiency, or implement a nonmilitary
program in support of a viable peace agreement in
Sudan, including the Comprehensive Peace Agreement for
Sudan and the Darfur Peace Agreement.</DELETED>
<DELETED> ``(5) Prospective application of subsection.--This
subsection shall not be applied to limit support by the
Corporation under this title because an applicant, or other
entity covered by a certification under subparagraph (A), (B),
or (C) of paragraph (3) engaged in commercial activity
specifically licensed by the Office of Foreign Assets Control
of the Department of the Treasury.''.</DELETED>
<DELETED> (b) Termination.--</DELETED>
<DELETED> (1) In general.--The amendment made by this
section shall cease to be effective with respect to a country
that is a state sponsor of terrorism 30 days after the
President certifies to the appropriate congressional committees
that--</DELETED>
<DELETED> (A) the country has ceased providing
support for acts of international terrorism and no
longer satisfies the requirements for designation as a
state sponsor of terrorism;</DELETED>
<DELETED> (B) the country does not possess nuclear
weapons or a significant program to develop nuclear
weapons; and</DELETED>
<DELETED> (C) the country is not committing genocide
or conducting a program of ethnic cleansing against a
civilian population that approaches genocide.</DELETED>
<DELETED> (2) Definitions.--In this subsection:</DELETED>
<DELETED> (A) Appropriate congressional
committees.--The term ``appropriate congressional
committees'' means the Committee on Foreign Affairs of
the House of Representatives and the Committee on
Foreign Relations of the Senate.</DELETED>
<DELETED> (B) State sponsor of terrorism.--The term
``state sponsor of terrorism'' has the meaning given
that term in section 237(r)(2)(D) of the Foreign
Assistance Act of 1961, as added by subsection (a) of
this section.</DELETED>
<DELETED>SEC. 11. INCREASED TRANSPARENCY.</DELETED>
<DELETED> (a) In General.--Section 237 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2197) is further amended by adding at the end the
following new subsections:</DELETED>
<DELETED> ``(s) Availability of Project Information.--Beginning 90
days after the date of the enactment of the Overseas Private Investment
Corporation Reauthorization Act of 2007, the Corporation shall make
public, and post on its Internet website, summaries of all new projects
supported by the Corporation, and other relevant information, except
that the Corporation shall not include any confidential business
information in the summaries and information made available under this
subsection.</DELETED>
<DELETED> ``(t) Review of Methodology.--Not later than 180 days
after the date of the enactment of the Overseas Private Investment
Corporation Reauthorization Act of 2007, the Corporation shall publish
in the Federal Register and periodically revise, subject to a period of
public comment, the detailed methodology, including relevant
regulations, used to assess and monitor the impact of projects
supported by the Corporation on the development and environment of, and
international worker rights in, host countries, and on United States
employment.</DELETED>
<DELETED> ``(u) Public Notice Prior to Project Approval.--</DELETED>
<DELETED> ``(1) Public notice.--The Board of Directors of
the Corporation may not vote in favor of any action proposed to
be taken by the Corporation on any Category A project until at
least 60 days after the Corporation--</DELETED>
<DELETED> ``(A) makes available for public comment a
summary of the project and relevant information about
the project; and</DELETED>
<DELETED> ``(B) makes the summary and information
described in paragraph (1) available to locally
affected groups in the area of impact of the proposed
project, and to host country nongovernmental
organizations.</DELETED>
<DELETED>The Corporation shall not include any business
confidential information in the summary and information made
available under subparagraphs (A) and (B).</DELETED>
<DELETED> ``(2) Published response.--To the extent
practicable, the Corporation shall publish responses to the
comments received under paragraph (1) with respect to a
Category A project and submit the responses to the Board not
later than 7 days before a vote is to be taken on any action
proposed by the Corporation on the project.</DELETED>
<DELETED> ``(3) Definitions.--In this subsection, the term
`Category A project' means any project or other activity for
which the Corporation proposes to provide insurance,
reinsurance, financing, or other support under this title and
which is likely to have significant adverse environmental
impacts.''.</DELETED>
<DELETED> (b) Office of Accountability.--Section 237 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2197) is further amended by adding at
the end the following new subsection:</DELETED>
<DELETED> ``(v) Office of Accountability.--The Corporation shall
maintain an Office of Accountability to provide problem-solving
services for projects supported by the Corporation and to review the
Corporation's compliance with its environmental, social, worker rights,
human rights, and transparency policies and procedures, to the maximum
extent practicable. The Office of Accountability shall operate in a
manner that is fair, objective and transparent.''.</DELETED>
<DELETED>SEC. 12. FRAUD AND OTHER BREACHES OF CONTRACT.</DELETED>
<DELETED> Section 237(n) of the Foreign Assistance Act of 1961 (22
U.S.C. 2197(n)) is amended--</DELETED>
<DELETED> (1) by striking ``Whoever'' and
inserting:</DELETED>
<DELETED> ``(1) In general.--Whoever''; and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(2) Deferrals to department of justice.--(A) The
President of the Corporation shall refer to the Department of
Justice for appropriate action information known to the
Corporation concerning any substantial evidence of--</DELETED>
<DELETED> ``(i) a violation of this title;</DELETED>
<DELETED> ``(ii) a material breach of contract
entered into with the Corporation by an eligible
investor; or</DELETED>
<DELETED> ``(iii) a material false representation
made by an investor to the Corporation.</DELETED>
<DELETED> ``(B) Subparagraph (A) does not apply if the
President of the Corporation concludes that the matter
described in clause (i), (ii), or (iii), as the case may be, of
subparagraph (A)--</DELETED>
<DELETED> ``(i) is not evidence of a possible
violation of criminal law; and</DELETED>
<DELETED> ``(ii) is not evidence that the Federal
Government is entitled to civil remedy or to impose a
civil penalty.''.</DELETED>
<DELETED>SEC. 13. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT
FUNDS.</DELETED>
<DELETED> (a) In General.--Section 239 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2199) is amended by adding at the end the
following:</DELETED>
<DELETED> ``(l) Transparency and Accountability of Investment
Funds.--</DELETED>
<DELETED> ``(1) Competitive selection of investment fund
management.--With respect to any investment fund that the
Corporation creates on or after the date of the enactment of
the Overseas Private Investment Corporation Reauthorization Act
of 2007, the Corporation may select persons to manage the fund
only by contract using full and open competitive
procedures.</DELETED>
<DELETED> ``(2) Criteria for selection.--In assessing
proposals for investment fund management proposals, the
Corporation shall consider, in addition to other factors, the
following:</DELETED>
<DELETED> ``(A) The prospective fund management's
experience, depth, and cohesiveness.</DELETED>
<DELETED> ``(B) The prospective fund management's
track record in investing risk capital in emerging
markets.</DELETED>
<DELETED> ``(C) The prospective fund management's
experience, management record, and monitoring
capabilities in its target countries, including details
of local presence (directly or through local
alliances).</DELETED>
<DELETED> ``(D) The prospective fund management's
experience as a fiduciary in managing institutional
capital, meeting reporting requirements, and
administration.</DELETED>
<DELETED> ``(E) The prospective fund management's
record in avoiding investments in companies that would
be disqualified under section 237(r).</DELETED>
<DELETED> ``(3) Annual report.--The Corporation shall
include in each annual report under section 240A an analysis of
the investment fund portfolio of the Corporation, including the
following:</DELETED>
<DELETED> ``(A) Fund performance.--An analysis of
the aggregate financial performance of the investment
fund portfolio grouped by region and
maturity.</DELETED>
<DELETED> ``(B) Status of loan guaranties.--The
amount of guaranties committed by the Corporation to
support investment funds, including the percentage of
such amount that has been disbursed to the investment
funds.</DELETED>
<DELETED> ``(C) Risk ratings.--The definition of
risk ratings, and the current aggregate risk ratings
for the investment fund portfolio, including the number
of investment funds in each of the Corporation's rating
categories.</DELETED>
<DELETED> ``(D) Competitive selection of investment
fund management.--The number of proposals received and
evaluated for each newly established investment
fund.''.</DELETED>
<DELETED> (b) GAO Audit.--Not later than 1 year after the submission
of the first report to Congress under section 240A of the Foreign
Assistance Act of 1961 that includes the information required by
section 239(l)(3) of that Act (as added by subsection (a) of this
section), the Comptroller General of the United States shall prepare
and submit to the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of the Senate an
independent assessment of the investment fund portfolio of the Overseas
Private Investment Corporation, covering the items required to be
addressed under such section 239(l)(3).</DELETED>
<DELETED>SEC. 14. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ.</DELETED>
<DELETED> Section 239 of the Foreign Assistance Act of 1961 (22
U.S.C. 2199) is amended by adding at the end the following:</DELETED>
<DELETED> ``(m) Operations in Iraq.--Notwithstanding subsections (a)
and (b) of section 237, the Corporation is authorized to undertake in
Iraq any program authorized by this title.''.</DELETED>
<DELETED>SEC. 15. CONSISTENCY WITH EXISTING LAW.</DELETED>
<DELETED> Section 239 of the Foreign Assistance Act of 1961 (22
U.S.C. 2199) is further amended by adding at the end the
following:</DELETED>
<DELETED> ``(n) Consistency With Other Law.--Section 620L of this
Act shall apply to any insurance, reinsurance, guaranty, or other
financing issued by the Corporation for projects in the West Bank and
Gaza to the same extent as such section applies to other assistance
under this Act.</DELETED>
<DELETED> ``(o) Limitation on Assistance to Gaza and the West
Bank.--The Corporation may not provide insurance, reinsurance, a
guaranty, financing, or other assistance to support a project in any
part of Gaza or the West Bank unless the Secretary of State determines
that the location for the project is not under the effective control of
Hamas or any other foreign terrorist organization designated under
section 219 of the Immigration and Nationality Act (8 U.S.C.
1189).''.</DELETED>
<DELETED>SEC. 16. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM
CONTINGENT LIABILITY.</DELETED>
<DELETED> Section 239 of the Foreign Assistance Act of 1961 (22
U.S.C. 2199) is further amended by adding at the end the
following:</DELETED>
<DELETED> ``(p) Congressional Notification of Increase in Maximum
Contingent Liability.--The Corporation shall notify the Committee on
Foreign Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate not later than 15 days after the date
on which the Corporation's maximum contingent liability outstanding at
any one time pursuant to insurance issued under section 234(a), and the
amount of financing issued under sections 234(b) and (c), exceeds the
previous fiscal year's maximum contingent liability by 25
percent.''.</DELETED>
<DELETED>SEC. 17. ASSISTANCE FOR SMALL BUSINESSES AND
ENTITIES.</DELETED>
<DELETED> Section 240 of the Foreign Assistance Act of 1961 (22
U.S.C. 2200) is amended by adding at the end the following:</DELETED>
<DELETED> ``(c) Resources Dedicated to Small Businesses,
Cooperatives, and Other Small United States Investors.--The Corporation
shall ensure that adequate personnel and resources, including senior
officers, are dedicated to assist United States small businesses,
cooperatives, and other small United States investors in obtaining
insurance, reinsurance, financing, and other support under this title.
The Corporation shall include, in each annual report under section
240A, the following information with respect to the period covered by
the report:</DELETED>
<DELETED> ``(1) A description of such personnel and
resources.</DELETED>
<DELETED> ``(2) The number of small businesses,
cooperatives, and other small United States investors that
received such insurance, reinsurance, financing, and other
support, and the dollar value of such insurance, reinsurance,
financing and other support.</DELETED>
<DELETED> ``(3) A description of the projects for which such
insurance, reinsurance, financing, and other support was
provided.''.</DELETED>
<DELETED>SEC. 18. TECHNICAL CORRECTIONS.</DELETED>
<DELETED> (a) Pilot Equity Finance Program.--Section 234 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2194) is amended--</DELETED>
<DELETED> (1) by striking subsection (g); and</DELETED>
<DELETED> (2) by redesignating subsection (h) as subsection
(g).</DELETED>
<DELETED> (b) Transfer Authority.--Section 235 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2195) is amended--</DELETED>
<DELETED> (1) by striking subsection (e); and</DELETED>
<DELETED> (2) by redesignating subsection (f) as subsection
(e).</DELETED>
<DELETED> (c) Guaranty Contract.--Section 237(j) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2197(j)) is amended by inserting
``insurance, reinsurance, and'' after ``Each''.</DELETED>
<DELETED> (d) Transfer of Predecessor Programs and Authorities.--
</DELETED>
<DELETED> (1) Transfer.--Section 239 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2199), as amended by the
preceding provisions of this Act, is amended--</DELETED>
<DELETED> (A) by striking subsection (b);
and</DELETED>
<DELETED> (B) by redesignating the subsections (c)
through (p) as subsections (b) through (o),
respectively.</DELETED>
<DELETED> (2) Conforming amendments.--(A) Section 237(m)(1)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2197(m)(1)) is
amended by striking ``239(g)'' and inserting
``239(f)''.</DELETED>
<DELETED> (B) Section 240A(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2200A(a)) is amended--</DELETED>
<DELETED> (i) in paragraph (1), by striking
``239(h)'' and inserting ``239(g)''; and</DELETED>
<DELETED> (ii) in paragraph (2)(A), by striking
``239(i)'' and inserting ``239(h)''.</DELETED>
<DELETED> (C) Section 209(e)(16) of the Admiral James W.
Nance and Meg Donovan Foreign Relations Authorization Act,
Fiscal Years 2000 and 2001 (as enacted into law by section
1000(a)(7) of Public Law 106-113; 31 U.S.C. 1113 note) is
amended by striking ``239(c)'' and ``2199(c)'' and inserting
``239(b)'' and ``2199(b)'', respectively.</DELETED>
<DELETED> (e) Additional Clerical Amendments.--Section 234(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2194(b)) is amended by
striking ``235(a)(2)'' and inserting ``235(a)(1)''.</DELETED>
<DELETED>SEC. 19. EFFECTIVE DATE.</DELETED>
<DELETED> (a) New Applications.--This Act and the amendments made by
this Act shall apply with respect to any application for insurance,
reinsurance, a guaranty, financing, or other support under title IV of
chapter 2 of part I of the Foreign Assistance Act of 1961 if the
application is received by the Overseas Private Investment Corporation
on or after July 1, 2007, and the application is approved by the
Corporation on or after the date of the enactment of this
Act.</DELETED>
<DELETED> (b) Extensions and Renewals.--</DELETED>
<DELETED> (1) In general.--Subject to paragraph (2), this
Act and the amendments made by this Act shall apply with
respect to any extension or renewal of a contract or agreement
for any such insurance, reinsurance, guaranty, financing, or
support that was entered into by the Corporation before the
date of the enactment of this Act if the extension or renewal
is approved by the Corporation on or after such date of
enactment.</DELETED>
<DELETED> (2) Exception.--This Act and the amendments made
by this Act shall not apply to any extension or renewal which
is substantially identical to an extension or renewal formally
requested in a detailed writing filed with the Corporation
before July 1, 2007.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Overseas Private Investment
Corporation Reauthorization Act of 2008''.
SEC. 2. REAUTHORIZATION OF OPIC PROGRAMS.
Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C.
2195(a)(2)) is amended by striking ``September 30, 2007'' and inserting
``September 30, 2011''.
SEC. 3. REQUIREMENTS REGARDING INTERNATIONALLY RECOGNIZED WORKER
RIGHTS.
Subsection (a) of section 231A of the Foreign Assistance Act of
1961 (22 U.S.C. 2191a(a)) is amended to read as follows:
``(a) Internationally Recognized Worker Rights.--
``(1) In general.--The Corporation may insure, reinsure,
guaranty, or finance a project only if--
``(A) the country in which the project is to be
undertaken is eligible for designation as a beneficiary
developing country under the Generalized System of
Preferences (19 U.S.C. 2461 et seq.) and has not been
determined to be ineligible for such designation on the
basis of section 502(b)(2)(G) of the Trade Act of 1974
(19 U.S.C. 2462(b)(2)(G)) (relating to internationally
recognized worker rights), or section 502(b)(2)(H) of
such Act (19 U.S.C. 2462(b)(2)(H) (relating to the
worst forms of child labor); or
``(B) the country in which the project is to be
undertaken is not eligible for designation as a
beneficiary country under the Generalized System of
Preferences, the government of that country has taken
or is taking steps to afford workers in the country
(including any designated zone or special
administrative region or area in that country)
internationally recognized worker rights (as defined in
section 507(4) of the Trade Act of 1974) (19 U.S.C.
2467(4)).
``(2) Limitation inapplicable.--The limitation contained in
paragraph (1) shall not apply to providing assistance for
humanitarian services.
``(3) Use of reports.--The Corporation shall, in
implementing paragraph (1), consider--
``(A) information contained in the reports required
by sections 116(d) and 502B(b) of this Act and the
report required by section 504 of the Trade Act of 1974
(19 U.S.C. 2464);
``(B) other relevant sources of information readily
available to the Corporation, including observations,
reports, and recommendations of the International
Labour Organization; and
``(C) information provided in the hearing required
under subsection (c).
``(4) Contract language.--The Corporation shall include the
following language, in substantially the following form, in all
contracts which the Corporation enters into with eligible
investors to provide support under this title:
`The investor agrees not to take any actions to obstruct or
prevent employees of the foreign enterprise from exercising the
employees' internationally recognized worker rights (as defined
in section 507(4) of the Trade Act of 1974) (19 U.S.C. 2467(4))
and the investor agrees to adhere to the obligations regarding
those rights. The investor agrees to prohibit discrimination
with respect to employment and occupation.'.
``(5) Preference to certain countries.--Consistent with its
development objectives, the Corporation shall give preferential
consideration to projects in countries that--
``(A) have adopted and maintained, in the country's
laws and regulations, internationally recognized worker
rights, as well as the elimination of discrimination
with respect to employment and occupation; and
``(B) are effectively enforcing those laws.''.
SEC. 4. PREFERENTIAL CONSIDERATION OF CERTAIN INVESTMENT PROJECTS.
Section 231(f) of the Foreign Assistance Act of 1961 (22 U.S.C.
2191(f)) is amended to read as follows:
``(f) to the greatest degree practicable and consistent with the
goals of the Corporation, to give preferential consideration to
investment projects in any less developed country the government of
which is receptive to both domestic and foreign private enterprise and
to projects in any country the government of which is willing and able
to maintain conditions that enable private enterprise to make a full
contribution to the development process;''.
SEC. 5. CLIMATE CHANGE MITIGATION ACTION PLAN.
Title IV of chapter 2 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2191 et seq.) is amended by inserting after section
234A the following new section:
``SEC. 234B. CLIMATE CHANGE MITIGATION.
``(a) Mitigation Action Plan.--The Corporation shall, not later
than 180 days after the date of the enactment of the Overseas Private
Investment Corporation Reauthorization Act of 2008, institute a climate
change mitigation action plan that includes the following:
``(1) Clean technology.--
``(A) Increasing assistance.--The Corporation shall
establish a goal of substantially increasing its
support of projects that use, develop, or otherwise
promote the use of clean energy technologies during the
10-year period beginning on the date of the enactment
of the Overseas Private Investment Corporation
Reauthorization Act of 2008.
``(B) Preferential treatment to projects.--The
Corporation shall give preferential treatment to
evaluating and awarding assistance for, and provide
greater flexibility in supporting, projects that use,
develop, or otherwise promote the use of clean energy
technologies.
``(C) Report on plan.--The Corporation shall, not
later than 180 days after the date of the enactment of
the Overseas Private Investment Corporation
Reauthorization Act of 2008, submit to the Committees
on Foreign Relations and Appropriations of the Senate
and the Committees on Foreign Affairs and
Appropriations of the House of Representatives a report
on the plan developed to carry out subparagraph (A).
Thereafter, the Corporation shall include in its annual
report required under section 240A a discussion of the
plan and its implementation.
``(2) Environmental impact assessments.--
``(A) Greenhouse gas emissions.--The Corporation
shall, in making an environmental impact assessment or
initial environmental audit for a project under section
231A(b), also take into account the degree to which the
project contributes to the emission of greenhouse
gases.
``(B) Other duties not affected.--The requirement
provided for under subparagraph (A) is in addition to
any other requirement, obligation, or duty of the
Corporation.
``(3) Goals for reducing greenhouse gas emissions.--
``(A) In general.--The Corporation shall continue
to maintain--
``(i) a goal for reducing direct greenhouse
gas emissions associated with projects in the
Corporation's portfolio on the date of the
enactment of the Overseas Private Investment
Corporation Reauthorization Act of 2008 by 20
percent during the 10-year period beginning on
such date of enactment; and
``(ii) a goal for limiting annual
investments in projects that have significant
greenhouse gas emissions after such date of
enactment in a manner that reduces greenhouse
gas emissions associated with projects in the
Corporation's total portfolio by 20 percent
during the 10-year period beginning on such
date of enactment.
``(B) Special rules.--
``(i) Baseline.--For purposes of
determining the percentage by which greenhouse
gas emissions are reduced under subparagraph
(A), the Corporation shall use the aggregate
estimated greenhouse gas emissions for projects
in the Corporation's portfolio.
``(ii) Significant greenhouse gas emissions
projects.--For purposes of this paragraph,
projects that have significant greenhouse gas
emissions are projects that result in the
emission of more than 100,000 tons of
CO<INF>2</INF> equivalent each year.
``(C) Reporting requirements.--The Corporation
shall include, in each annual report required under
section 240A, the following information with respect to
the period covered by the report:
``(i) The annual greenhouse gas emissions
attributable to each project in the
Corporation's active portfolio that has
significant greenhouse gas emissions.
``(ii) The estimated greenhouse gas
emissions for each new project that has
significant greenhouse gas emissions for which
the Corporation provided insurance,
reinsurance, a guaranty, or financing, since
the previous report.
``(iii) The extent to which the Corporation
is meeting the goals described in subparagraph
(A) for reducing greenhouse gas emissions.
``(iv) Each new project for which the
Corporation provided insurance, reinsurance, a
guaranty, or financing, that involves renewable
energy and environmentally beneficial products
and services, including increased clean energy
technology.
``(b) Extraction Investments.--
``(1) Prior notification to congressional committees.--
``(A) In general.--The Corporation shall provide
notice of consideration of approval of a project
described in subparagraph (B) to the Committees on
Foreign Relations and Appropriations of the Senate and
the Committees on Foreign Affairs and Appropriations of
the House of Representatives not later than 60 days
before approval of such project.
``(B) Project described.--A project described in
this subparagraph is a Category A project (as defined
in section 237(q)(3)) relating to an extractive
industry project or any extractive industry project for
which the assistance to be provided by the Corporation
is valued at $10,000,000 or more (including contingent
liability).
``(2) Commitment to eiti principles.--
``(A) In general.--Except as provided in
subparagraph (B), the Corporation may approve a
contract of insurance, reinsurance, a guaranty, or
enter into an agreement to provide financing to an
eligible investor for a project that significantly
involves an extractive industry only if--
``(i) the eligible investor has agreed to
implement the Extractive Industries
Transparency Initiative principles and
criteria, or substantially similar principles
and criteria related to the specific project to
be carried out; and
``(ii)(I) the host country where the
project is to be carried out has committed to
the Extractive Industries Transparency
Initiative principles and criteria, or
substantially similar principles and criteria;
or
``(II) the host country where the project
is to be carried out has in place or is taking
the necessary steps to establish functioning
systems for--
``(aa) accurately accounting for
revenues and expenditures in connection
with the extraction and export of the
type of natural resource to be
extracted or exported;
``(bb) the independent audit of
such revenues and expenditures and the
widespread public dissemination of the
finding of the audit; and
``(cc) verifying government
receipts against company payments,
including widespread dissemination of
such payment information, and
disclosure of such documents as host
government agreements, concession
agreements, and bidding documents, and
allowing in any such dissemination or
disclosure for the redaction of, or
exceptions for, information that is
commercially proprietary or that would
create a competitive disadvantage.
``(B) Exception.--If a host country does not meet
the requirements of subparagraph (A)(ii) (I) or (II),
the Corporation may approve a contract of insurance,
reinsurance, or a guaranty, or enter into an agreement
to provide financing for a project in the host country
if the Corporation determines it is in the foreign
policy interest of the United States for the
Corporation to provide support for the project in the
host country and the host country does not prevent an
eligible investor from complying with subparagraph
(A)(i).
``(3) Preference for certain projects.--With respect to all
projects that significantly involve an extractive industry, the
Corporation, to the extent practicable and consistent with the
Corporation's development objectives, shall give preference to
a project in which the eligible investor has agreed to
implement the Extractive Industries Transparency Initiative
principles and criteria, or substantially similar principles
and criteria, and the host country where the project is to be
carried out has committed to the Extractive Industries
Transparency Initiative principles and criteria, or
substantially similar principles and criteria.
``(4) Effect on other requirements.--Nothing in this
subsection shall affect the limitations and prohibitions with
respect to direct investments described in section 234(c).
``(5) Reporting requirement.--The Corporation shall include
in its annual report required under section 240A a description
of its activities to carry out this subsection.
``(c) Definitions.--In this section:
``(1) Clean energy technology.--The term `clean energy
technology' means an energy supply or end-use technology that,
compared to a similar technology already in widespread
commercial use in a host country, will--
``(A) reduce emissions of greenhouse gases; or
``(B) decrease the intensity of energy usage.
``(2) Greenhouse gas.--The term `greenhouse gas' means--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons; or
``(F) sulfur hexafluoride.
``(3) Extractive industry.--The term `extractive industry'
refers to an enterprise engaged in the exploration,
development, or extraction of oil and gas reserves, metal ores,
gemstones, industrial minerals (except rock used for
construction purposes), or coal.''.
SEC. 6. INCREASED TRANSPARENCY.
(a) In General.--Section 231A(c)(2) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2191a) is amended by replacing (c)(2) with the
following paragraph:
``(2) In conjunction with each meeting of its Board of Directors,
the Corporation shall hold a public hearing in order to afford an
opportunity for any person to present views regarding the activities of
the Corporation. The Corporation shall notice such a hearing at least
20 days in advance. At least 15 days in advance of such hearing the
Corporation shall make available a public summary of each project,
including information related to workers rights, to be considered at
the meeting. The Corporation shall not include any confidential
business information in the summary made available under this
subsection. Such views shall be made part of the record.''.
(b) Additional Transparency.--Section 237 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2197) is amended by adding at the end the
following new subsections:
``(p) Review of Methodology.--Not later than 180 days after the
date of the enactment of the Overseas Private Investment Corporation
Reauthorization Act of 2008, the Corporation shall make available to
the public the methodology, including relevant regulations, used to
assess and monitor the impact of projects supported by the Corporation
on employment in the United States and on the development, the
environment, and the protection of internationally recognized worker
rights, as well as the elimination of discrimination with respect to
employment and occupation, in host countries.
``(q) Public Notice Prior to Project Approval.--
``(1) Public notice.--
``(A) In general.--The Board of Directors of the
Corporation may not vote in favor of any action
proposed to be taken by the Corporation on a Category A
project before the date that is 60 days after the
Corporation--
``(i) makes available for public comment a
summary of the project and relevant information
about the project; and
``(ii) such summary and information
described in clause (i) has been made available
to groups in the area that may be impacted by
the proposed project and to nongovernmental
organizations in the host country.
``(B) Exception.--The Corporation shall not include
any confidential business information in the summary
and information made available under clauses (i) and
(ii) of subparagraph (A).
``(2) Published response.--To the extent practicable, the
Corporation shall publish responses to the comments received
under paragraph (1)(A)(i) with respect to a Category A project
and submit the responses to the Board not later than 7 days
before a vote is to be taken on any action proposed by the
Corporation on the project.
``(3) Category a project defined.--The term `Category A
project' means any project or other activity for which the
Corporation proposes to provide insurance, reinsurance, a
guaranty, financing, or other assistance under this title and
which is likely to have a significant adverse environmental
impact.''.
(c) Office of Accountability.--Section 237 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2197), as amended by subsection (b)
of this section, is amended by adding at the end the following new
subsection:
``(r) Office of Accountability.--The Corporation shall maintain an
Office of Accountability to provide, to the maximum extent practicable,
upon request, problem-solving services for projects supported by the
Corporation and review of the Corporation's compliance with its
environmental, social, internationally recognized worker rights, human
rights, and transparency policies and procedures. The Office of
Accountability shall operate in a manner that is fair, objective, and
transparent.''.
SEC. 7. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS.
(a) In General.--Section 239 of the Foreign Assistance Act of 1961
(22 U.S.C. 2199) is amended by adding at the end the following:
``(l) Transparency and Accountability of Investment Funds.--
``(1) Competitive selection of investment fund
management.--With respect to any investment fund that the
Corporation creates on or after the date of the enactment of
the Overseas Private Investment Corporation Reauthorization Act
of 2008, the Corporation may select persons to manage the fund
only by contract using competitive procedures that are full and
open.
``(2) Criteria for selection.--In assessing proposals for
investment fund management proposals, the Corporation shall
consider, in addition to other factors, the following:
``(A) The prospective fund management's experience,
depth, and cohesiveness.
``(B) The prospective fund management's track
record in investing risk capital in emerging markets.
``(C) The prospective fund management's experience,
management record, and monitoring capabilities in the
countries in which the management operates, including
details of local presence (directly or through local
alliances).
``(D) The prospective fund management's experience
as a fiduciary in managing institutional capital,
meeting reporting requirements, and administration.
``(E) The prospective fund management's record in
avoiding investments in companies that would be
disqualified under section 239(m).
``(3) Annual report.--The Corporation shall include in each
annual report under section 240A an analysis of the investment
fund portfolio of the Corporation, including the following:
``(A) Fund performance.--An analysis of the
aggregate financial performance of the investment fund
portfolio grouped by region and maturity.
``(B) Status of loan guaranties.--The amount of
guaranties committed by the Corporation to support
investment funds, including the percentage of such
amount that has been disbursed to the investment funds.
``(C) Risk ratings.--The definition of risk
ratings, and the current aggregate risk ratings for the
investment fund portfolio, including the number of
investment funds in each of the Corporation's rating
categories.
``(D) Competitive selection of investment fund
management.--The number of proposals received and
evaluated for each newly established investment
fund.''.
(b) GAO Review.--Not later than 1 year after the submission of the
first report to Congress under section 240A of the Foreign Assistance
Act of 1961 that includes the information required by section 239(l)(3)
of that Act (as added by subsection (a) of this section), the
Comptroller General of the United States shall prepare and submit to
the Committee on Foreign Relations of the Senate and the Committee on
Foreign Affairs of the House of Representatives an independent
assessment of the investment fund portfolio of the Overseas Private
Investment Corporation, covering the items required to be addressed
under such section 239(l)(3).
SEC. 8. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN RAILWAY
CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.
Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197),
as amended by section 6, is amended by adding at the end the following:
``(s) Prohibition on Assistance for Certain Railway Projects.--The
Corporation may not provide insurance, reinsurance, a guaranty,
financing, or other assistance to support the development or promotion
of a railway connection or railway-related connection that connects
Azerbaijan and Turkey without connecting or traversing with Armenia.''.
SEC. 9. INELIGIBILITY OF PERSONS DOING CERTAIN BUSINESS WITH STATE
SPONSORS OF TERRORISM.
(a) In General.--Section 231 of the Foreign Assistance Act of 1961
(22 U.S.C. 2191) is amended by--
(1) striking ``and'' at the end of division (m);
(2) by striking the period at the end of division (n) and
inserting ``; and''; and
(3) by adding at the end the following:
``(o) to decline to issue any contract of insurance or reinsurance,
or any guaranty, or to enter into any agreement to provide financing or
any other assistance for a prospective eligible investor who enters,
directly or through an affiliate, into certain discouraged transactions
with a state sponsor of terrorism.''.
(b) General Provisions and Powers.--Section 239 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2199), as amended by section 7, is
amended by adding at the end the following:
``(m) State Sponsor of Terrorism.--
``(1) In general.--In order to carry out the policy set
forth in section 231(o) of this Act, the Corporation shall
require a certification from an officer of a prospective OPIC-
supported United States investor that the investor and all
affiliates of the investor are not engaged in a discouraged
transaction with a state sponsor of terrorism.
``(2) Discouraged transaction.--In this subsection, the
term `discouraged transaction' means any of the following
activities:
``(A) An investment commitment of $20,000,000 or
more by the investor in the energy sector in a state
sponsor of terrorism.
``(B) Any loan, or an extension of credit, to the
government of a state sponsor of terrorism by the
investor that--
``(i) is outstanding on the date the
Corporation enters into a contract with the
investor; and
``(ii) that has a value of more than
$5,000,000, including the sale of goods for
which payment is not required by the purchaser
within 45 days.
``(C) The transfer by the investor of goods that
are included on the United States Munitions List,
referred to in section 38(a)(1) of the Arms Export
Control Act (22 U.S.C. 2778(a)(1)) to a state sponsor
of terrorism within the 3-year period preceding the
date the Corporation enters into a contract with the
investor.
``(3) Exception.--An officer of a prospective OPIC-
supported United States investor may provide a certification
under this subsection notwithstanding the fact that an
affiliate of the investor is engaged in a discouraged
transaction if the transaction is carried out under a contract
or other obligation of the affiliate that was entered into or
incurred before the acquisition of such affiliate by the
prospective OPIC-supported United States investor or the parent
company of the OPIC-supported United States investor.
``(4) Definitions.--In this subsection:
``(A) Affiliate.--The term `affiliate' means any
person that is directly or indirectly controlled by,
under common control with, or controls a prospective
OPIC-supported United States investor or the parent
company of such investor.
``(B) Investment commitment in the energy sector of
a state sponsor of terrorism.--The term `investment
commitment in the energy sector of a state sponsor of
terrorism' means any of the following activities if
such activity is undertaken pursuant to a commitment,
or pursuant to the exercise of rights under a
commitment, that was entered into with the government
of a state sponsor of terrorism or a nongovernmental
entity in a country that is a state sponsor of
terrorism:
``(i) The entry into a contract that
includes responsibility for the development or
transportation of petroleum or natural gas
resources located in a country that is a state
sponsor of terrorism, or the entry into a
contract providing for the general supervision
or guaranty of another person's performance of
such a contract.
``(ii) The purchase of a share of
ownership, including an equity interest, in the
development of petroleum or natural resources
described in clause (i).
``(iii) The entry into a contract providing
for the participation in royalties, earnings,
or profits in the development of petroleum or
natural resources described in clause (i),
without regard to the form of the
participation.
``(C) State sponsor of terrorism.--The term `state
sponsor of terrorism' --
``(i) means any country the government of
which the Secretary of State has determined has
repeatedly provided support for acts of
international terrorism pursuant to section
6(j) of the Export Administration Act of 1979,
section 620A of this Act, or section 40 of the
Arms Export Control Act; and
``(ii) does not include Southern Sudan,
Southern Kordofan/Nuba Mountains State, Blue
Nile State, and Abyei, Darfur, if the
Corporation, with the concurrence of the
Secretary of State, determines that providing
assistance for projects in such regions will
provide emergency relief, promote economic
self-sufficiency, or implement a nonmilitary
program in support of a viable peace agreement
in Sudan, such as the Comprehensive Peace
Agreement for Sudan and the Darfur Peace
Agreement.''.
SEC. 10. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM CONTINGENT
LIABILITY.
Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199),
as amended by sections 7, and 9, is amended by adding at the end the
following:
``(n) Congressional Notification of Increase in Maximum Contingent
Liability.--The Corporation shall notify the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of the
House of Representatives not later than 15 days after the date on which
the Corporation's maximum contingent liability outstanding at any one
time pursuant to insurance issued under section 234(a), and the amount
of financing issued under sections 234(b) and (c), exceeds the
Corporation's maximum contingent liability for the preceding fiscal
year by 25 percent or more.''.
SEC. 11. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ.
Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199),
as amended by sections 7, 9, and 10, is amended by adding at the end
the following:
``(o) Operations in Iraq.--Notwithstanding subsections (a) and (b)
of section 237, the Corporation is authorized to undertake in Iraq any
program authorized by this title.''.
SEC. 12. LOW-INCOME HOUSING.
Not later than 1 year after the date of the enactment of this Act,
the Corporation shall submit a report to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of the
House of Representatives, in consultation with appropriate departments,
agencies, and instrumentalities of the United States, as well as
private entities, on the feasibility of broadening the assistance the
Corporation provides to projects that provide support to low-income
home buyers. If the Corporation finds such assistance is feasible, the
Corporation shall identify and begin to implement steps to proceed to
provide such assistance.
SEC. 13. ASSISTANCE FOR SMALL BUSINESSES AND ENTITIES.
Section 240 of the Foreign Assistance Act of 1961 (22 U.S.C. 2200)
is amended by adding at the end the following:
``(c) Resources Dedicated to Small Businesses, Cooperatives, and
Other Small United States Investors.--The Corporation shall ensure that
adequate personnel and resources, including senior officers, are
dedicated to assist United States small businesses, cooperatives, and
other small United States investors in obtaining insurance,
reinsurance, financing, and other assistance under this title. The
Corporation shall include, in each annual report under section 240A,
the following information with respect to the period covered by the
report:
``(1) A description of such personnel and resources.
``(2) The number of United States small businesses,
cooperatives, and other small United States investors that
received insurance, reinsurance, financing, and other
assistance from the Corporation, and the dollar value of such
insurance, reinsurance, financing, and other assistance.
``(3) A description of the projects for which the
insurance, reinsurance, financing, and other assistance was
provided.''.
SEC. 14. TECHNICAL CORRECTIONS.
(a) Pilot Equity Finance Program.--Section 234 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2194) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(b) Transfer Authority.--Section 235 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2195) is amended--
(1) by striking subsection (e); and
(2) by redesignating subsection (f) as subsection (e).
(c) Guaranty Contract.--Section 237(j) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2197(j)) is amended by inserting ``insurance,
reinsurance, and'' after ``Each''.
(d) Transfer of Predecessor Programs and Authorities.--
(1) Transfer.--Section 239 of the Foreign Assistance Act of
1961 (22 U.S.C. 2199), as amended by sections 7, 9, 10, and 11,
is amended--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) through (o) as
subsections (b) through (n), respectively.
(2) Conforming amendments.--
(A) Section 237(m)(1) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2197(m)(1)) is amended by striking
``239(g)'' and inserting ``239(f)''.
(B) Section 240A(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2200A(a)) is amended--
(i) in paragraph (1), by striking
``239(h)'' and inserting ``239(g)''; and
(ii) in paragraph (2)(A), by striking
``239(i)'' and inserting ``239(h)''.
(C) Section 209(e)(16) of the Admiral James W.
Nance and Meg Donovan Foreign Relations Authorization
Act, Fiscal Years 2000 and 2001 (as enacted into law by
section 1000(a)(7) of Public Law 106-113; 31 U.S.C.
1113 note) is amended by striking ``239(c)'' and
``2199(c)'' and inserting ``239(b)'' and ``2199(b)'',
respectively.
(e) Additional Clerical Amendments.--Section 234(b) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2194(b)) is amended by striking
``235(a)(2)'' and inserting ``235(a)(1)''.
Calendar No. 593
110th CONGRESS
2d Session
H. R. 2798
[Report No. 110-273]
_______________________________________________________________________
AN ACT
To reauthorize the programs of the Overseas Private Investment
Corporation, and for other purposes.
_______________________________________________________________________
March 4, 2008
Reported with an amendment