Protect European Energy Security Act

I 116TH CONGRESS 1ST SESSION H. R. 1081 To require reports by the Secretary of State, the Secretary of the Treasury, and the Director of National Intelligence relating to construction of the Nord Stream 2 pipeline, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 7, 2019 Mr. HECK (for himself, Mr. CONAWAY, Ms. KAPTUR, and Mr. ROONEY of Florida) introduced the following bill; which was referred to the Com- mittee on Foreign Affairs, and in addition to the Permanent Select Com- mittee on Intelligence (Permanent Select), for a period to be subsequently determined by the Speaker, in each case for consideration of such provi- sions as fall within the jurisdiction of the committee concerned A BILL To require reports by the Secretary of State, the Secretary of the Treasury, and the Director of National Intel- ligence relating to construction of the Nord Stream 2 pipeline, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protect European En- 4 ergy Security Act’’. 5 VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1081 IH SEC. 2. FINDINGS. 1 Congress finds the following: 2 (1) The Russian Federation is constructing a 3 gas pipeline from Russia to Germany, named the 4 Nord Stream 2 pipeline, the completion of which 5 could address potential increases in European en- 6 ergy consumption but also increase European de- 7 pendence on Russian energy and have destabilizing 8 effects on the Government of Ukraine if Ukraine 9 loses energy transit fees as a result of construction 10 of the Nord Stream 2 pipeline. 11 (2) According to experts, the Nord Stream 2 12 pipeline would transport 80 percent of Russia’s cur- 13 rent gas exports to Europe through one single pipe- 14 line system, which would run counter to the Euro- 15 pean Union energy policy of energy security and di- 16 versification of supply. 17 (3) Section 257(a) of the Countering America’s 18 Adversaries through Sanctions Act of 2017 (Public 19 Law 115–44; 22 U.S.C. 9546(a)) states in part that 20 it is the policy of the United States— 21 (A) ‘‘to work with European Union mem- 22 ber states and European Union institutions to 23 promote energy security through developing di- 24 versified and liberalized energy markets that 25 VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1081 IH provide diversified sources, suppliers, and 1 routes’’; and 2 (B) ‘‘to continue to oppose [the Nord 3 Stream 2 pipeline] given its detrimental im- 4 pacts on the European Union’s energy security, 5 gas market development in Central and Eastern 6 Europe, and energy reforms in Ukraine’’. 7 (4) On January 27, 2018, then-Secretary of 8 State Rex Tillerson stated, ‘‘[T]he United States op- 9 poses the Nord Stream 2 pipeline. We see it as un- 10 dermining Europe’s overall energy security and sta- 11 bility. . .’’. Tillerson further stated that the pipeline 12 would allow Putin to use energy as a ‘‘political tool’’. 13 (5) On March 11, 2018, German chancellor An- 14 gela Merkel acknowledged ‘‘political’’ and ‘‘stra- 15 tegic’’ concerns regarding the Nord Stream 2 pipe- 16 line and stated that the pipeline ‘‘is not just an eco- 17 nomic project, but that, of course, political factors 18 must also be taken into account’’. 19 (6) Gazprom, a Russian energy company, is 20 controlled by the Government of the Russian Fed- 21 eration, which, according to the European Commis- 22 sion’s Statement of Objections to Gazprom dated 23 April 22, 2015, has undertaken efforts to use gas as 24 a weapon of coercion. 25 VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1081 IH (7) The Department of State, led by the Bu- 1 reau of Energy of Resources, has worked extensively 2 with allies, including Denmark, to thwart such Rus- 3 sian efforts. 4 SEC. 3. SENSE OF CONGRESS. 5 It is the sense of Congress that the United States 6 should— 7 (1) continue to oppose construction of the Nord 8 Stream 2 pipeline and other Russian Federation gas 9 pipelines in northern Europe; and 10 (2) take affirmative diplomatic steps to halt the 11 construction of such pipelines. 12 SEC. 4. REPORTING REQUIREMENTS. 13 (a) REPORT BY SECRETARY OF STATE.— 14 (1) IN GENERAL.—Not later than 90 days after 15 the date of the enactment of this Act, the Secretary 16 of State, in coordination with the Secretary of the 17 Treasury, shall submit to the appropriate congres- 18 sional committees a report on actions the Depart- 19 ment of State is taking to implement section 257 of 20 the Countering America’s Adversaries through Sanc- 21 tions Act of 2017 (Public Law 115–44; 22 U.S.C. 22 9546). 23 (2) ELEMENTS.—The report shall include de- 24 tails on the following: 25 VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 1081 IH (A) Efforts by the Department of State 1 since August 3, 2017, to work with European 2 Union member states and institutions to pro- 3 mote energy security and decrease their depend- 4 ence on Russian sources of energy, including 5 use of the Countering Russian Influence Fund 6 authorized pursuant to section 254 of the 7 Countering America’s Adversaries through 8 Sanctions Act of 2017 (Public Law 115–44; 22 9 U.S.C. 9543). 10 (B) Diplomatic efforts undertaken by the 11 Department of State to oppose directly the 12 Nord Stream 2 pipeline and the Turk Stream 13 pipeline. 14 (C) An estimation of European natural gas 15 supply demand from 2019 through 2023. 16 (b) REPORT BY SECRETARY OF THE TREASURY.— 17 (1) IN GENERAL.—Not later than 90 days after 18 the date of the enactment of this Act, the Secretary 19 of Treasury, in coordination with the Secretary of 20 State, shall submit to the appropriate congressional 21 committees a report on each entity involved in con- 22 struction of the Nord Stream 2 pipeline or construc- 23 tion of the Turk Stream pipeline. 24 VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 1081 IH (2) ENTITY DEFINED.—In this subsection, the 1 term ‘‘entity’’— 2 (A) means an entity organized under the 3 laws of the United States; and 4 (B) includes, with respect to the entity, a 5 sub entity, parent entity, subsidiary, or any 6 other entity. 7 (c) REPORT BY DIRECTOR OF NATIONAL INTEL- 8 LIGENCE.—Not later than 90 days after the date of the 9 enactment of this Act, the Director of National Intel- 10 ligence, in coordination with the Secretary of Defense, 11 shall submit to the appropriate congressional committees 12 a report on the impact of the Nord Stream 2 pipeline on— 13 (1) United States interests and security objec- 14 tives; 15 (2) European energy security and defense pos- 16 ture; 17 (3) Russian influence in Europe; and 18 (4) Ukraine, including the implications of re- 19 ductions in transit fees as a result of Nord Stream 20 2 pipeline. 21 (d) FORM.—The reports required by this section shall 22 be submitted in unclassified form, but may contain a clas- 23 sified annex. 24 VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 1081 IH (e) APPROPRIATE CONGRESSIONAL COMMITTEES DE- 1 FINED.—In this section, the term ‘‘appropriate congres- 2 sional committees’’ means— 3 (1) in the House of Representatives— 4 (A) the Committee on Armed Services; 5 (B) the Committee on Foreign Affairs; 6 (C) the Committee in Financial Services; 7 (D) the Committee on Energy and Com- 8 merce; and 9 (E) the Permanent Select Committee on 10 Intelligence; and 11 (2) in the Senate— 12 (A) the Committee on Armed Services; 13 (B) the Committee on Foreign Relations; 14 (C) the Committee on Finance; 15 (D) the Committee on Banking, Housing, 16 and Urban Affairs; and 17 (E) the Select Committee on Intelligence. 18 Æ VerDate Sep 11 2014 21:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H1081.IH H1081 pamtmann on DSKBFK8HB2PROD with BILLS