European Energy Security and Diversification Act of 2019

IIB 116TH CONGRESS 1ST SESSION H. R. 1616 IN THE SENATE OF THE UNITED STATES MARCH 26, 2019 Received; read twice and referred to the Committee on Foreign Relations AN ACT To prioritize the efforts of and enhance coordination among United States agencies to encourage countries in Europe and Eurasia to diversify their energy sources and supply routes, increase energy security in the region, and help the United States reach its global energy security goals, and for other purposes. VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 2 HR 1616 RFS 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 ‘‘European Energy Se- 4 curity and Diversification Act of 2019’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 (1) EARLY-STAGE PROJECT SUPPORT.—The 8 term ‘‘early-stage project support’’ includes the fol- 9 lowing: 10 (A) Feasibility studies. 11 (B) Resource evaluations. 12 (C) Project appraisal and costing. 13 (D) Pilot projects. 14 (E) Commercial support, such as trade 15 missions, reverse trade missions, technical 16 workshops, international buyer programs, and 17 international partner searchers to link suppliers 18 to projects. 19 (F) Technical assistance and other guid- 20 ance to improve the local regulatory environ- 21 ment and market frameworks to encourage 22 transparent competition and enhance energy se- 23 curity. 24 (G) Long-term energy sector planning. 25 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 3 HR 1616 RFS (2) LATE-STAGE PROJECT SUPPORT.—The term 1 ‘‘late-stage project support’’ includes support de- 2 scribed in section 1421 of the Better Utilization of 3 Investments Leading to Development Act of 2018 4 (also referred to as the ‘‘BUILD Act of 2018’’; en- 5 acted as division F of the FAA Reauthorization Act 6 of 2018 (Public Law 115–254)). 7 (3) INTERNATIONAL FINANCIAL INSTITU- 8 TION.—The term ‘‘international financial institu- 9 tion’’ has the meaning given such term in section 10 1701(c) of the International Financial Institutions 11 Act (22 U.S.C. 262r(c)). 12 SEC. 3. SENSE OF CONGRESS; STATEMENT OF POLICY. 13 (a) SENSE OF CONGRESS.—It is the sense of Con- 14 gress that the United States has economic and national 15 security interests in assisting European and Eurasian 16 countries achieve energy security through diversification 17 of their energy sources and supply routes. 18 (b) STATEMENT OF POLICY.—It is the policy of the 19 United States to— 20 (1) advance United States foreign policy and 21 development goals by assisting European and Eur- 22 asian countries to reduce their dependence on energy 23 resources from countries that use energy dependence 24 for undue political influence, such as the Russian 25 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 4 HR 1616 RFS Federation, which has used natural gas to coerce, in- 1 timidate, and influence other countries; 2 (2) promote the energy security of European 3 and Eurasian allies and partners of the United 4 States by encouraging the development of accessible, 5 transparent, and competitive energy markets that 6 provide diversified sources, types, and routes of en- 7 ergy; 8 (3) encourage United States public and private 9 sector investment in European and Eurasian energy 10 infrastructure projects to bridge the gap between en- 11 ergy security requirements and commercial demand 12 in a way that is consistent with the region’s absorp- 13 tive capacity; 14 (4) help facilitate a well-functioning market for 15 energy resources in a way that benefits the energy 16 security of the United States and European and 17 Eurasian allies and partners of the United States; 18 and 19 (5) help facilitate the export of United States 20 energy technology and expertise to global markets. 21 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 5 HR 1616 RFS SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE 1 FOR ENERGY INFRASTRUCTURE PROJECTS 2 IN EUROPE AND EURASIA. 3 (a) IN GENERAL.—In pursuing the policy described 4 in section 3(b), the Secretary of State, in coordination 5 with the heads of United States agencies that operate 6 under the foreign policy guidance of the Secretary, shall, 7 as appropriate, prioritize and expedite the efforts of the 8 Department of State and such agencies in supporting the 9 efforts of the European Commission and European and 10 Eurasian countries to increase the energy security of such 11 countries, including through— 12 (1) providing diplomatic and political support to 13 the European Commission and such countries, as 14 necessary to— 15 (A) facilitate international negotiations 16 concerning cross-border infrastructure; 17 (B) enhance Europe’s and Eurasia’s regu- 18 latory environment with respect to energy; and 19 (C) develop accessible, transparent, and 20 competitive energy markets supplied by diverse 21 sources, types, and routes of energy; and 22 (2) providing support to improve European and 23 Eurasian energy markets, including early-stage 24 project support and late-stage project support for 25 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 6 HR 1616 RFS the construction or improvement of energy infra- 1 structure, as necessary, to— 2 (A) diversify the energy sources and supply 3 routes of such countries; 4 (B) enhance energy market integration 5 across the region; and 6 (C) increase competition within energy 7 markets. 8 (b) PROJECT SELECTION.— 9 (1) IN GENERAL.—The Secretary of State, in 10 consultation with the heads of agencies described in 11 subsection (a), shall identify and, in accordance with 12 paragraph (3), select energy infrastructure projects 13 that would be appropriate for United States assist- 14 ance under this section. 15 (2) PROJECT ELIGIBILITY.—A project is eligible 16 for United States assistance under this section if 17 such project is— 18 (A) related to— 19 (i) natural gas infrastructure, such as 20 interconnectors, storage facilities, liquefied 21 natural gas import facilities, or reverse 22 flow capacity; 23 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 7 HR 1616 RFS (ii) electricity transmission infrastruc- 1 ture, electricity storage projects, or smart 2 grid projects; 3 (iii) renewable energy projects in 4 wind, solar, tidal, or other forms; or 5 (iv) the improvement, rehabilitation, 6 or construction of electricity generation fa- 7 cilities to increase the efficiency and reli- 8 ability of electricity production; and 9 (B) located in a European or Eurasian 10 country. 11 (3) PREFERENCE.—In selecting among projects 12 that are eligible under paragraph (2), the Secretary 13 of State and the heads of agencies described in sub- 14 section (a) shall give preference to projects that— 15 (A) improve the capacity of energy systems 16 to efficiently transfer gas and electricity within 17 and between European or Eurasian countries; 18 (B) have already been identified by the 19 European Commission as being integral for the 20 energy security of European or Eurasian coun- 21 tries; 22 (C) are expected to enhance energy market 23 integration and transparency; 24 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 8 HR 1616 RFS (D) can attract funding from the private 1 sector, an international financial institution, the 2 government of the country in which the project 3 will be carried out, or the European Commis- 4 sion; or 5 (E) have the potential to use United States 6 goods and services. 7 (c) TYPES OF ASSISTANCE.— 8 (1) DIPLOMATIC AND POLITICAL SUPPORT.— 9 The Secretary of State, in coordination with the 10 heads of agencies described in subsection (a), as ap- 11 propriate, shall provide diplomatic and political sup- 12 port to the European Commission and European or 13 Eurasian countries, as necessary, including by using 14 the diplomatic and political influence and expertise 15 of the Department of State to build the capacity of 16 such countries to resolve any impediments to the de- 17 velopment of projects selected under subsection (b). 18 (2) EARLY-STAGE PROJECT SUPPORT.—The 19 Secretary of State, in coordination, as appropriate, 20 with the heads of agencies described in subsection 21 (a), including the Director of the Trade and Devel- 22 opment Agency, shall provide early-stage project 23 support to projects selected under subsection (b), as 24 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 9 HR 1616 RFS necessary and in accordance with section 661 of the 1 Foreign Assistance Act of 1961 (22 U.S.C. 2421). 2 (3) LATE-STAGE PROJECT SUPPORT.—The Sec- 3 retary of State, in coordination, as appropriate, with 4 the heads of agencies described in subsection (a), 5 shall provide late-stage project support to projects 6 selected under subsection (b), as necessary and in 7 accordance with section 1412 of the Better Utiliza- 8 tion of Investments Leading to Development Act (re- 9 lating to the establishment of the United States 10 International Development Finance Corporation). 11 (d) FUNDING.— 12 (1) TRADE AND DEVELOPMENT AGENCY.—Sub- 13 paragraph (A) of section 661(f)(1) of the Foreign 14 Assistance Act of 1961 (22 U.S.C. 2421(f)(1)) is 15 amended by striking ‘‘$48,000,000 for fiscal year 16 2000’’ and inserting ‘‘$79,500,000 for fiscal year 17 2020’’. 18 (2) COUNTERING RUSSIAN INFLUENCE FUND.— 19 Section 254 of the Countering Russian Influence in 20 Europe and Eurasia Act of 2017 (enacted as title II 21 of the Countering America’s Adversaries Through 22 Sanctions Act; Public Law 115–44; 22 U.S.C. 9543) 23 is amended— 24 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 10 HR 1616 RFS (A) in subsection (a), by striking ‘‘fiscal 1 years 2018 and 2019’’ and adding ‘‘fiscal years 2 2020 and 2021’’; and 3 (B) in subsection (b), by adding at the end 4 the following new paragraph: 5 ‘‘(7) To assist United States agencies that op- 6 erate under the foreign policy guidance of the Sec- 7 retary of State in providing assistance under section 8 4 of the European Energy Security and Diversifica- 9 tion Act of 2019.’’. 10 (e) EXCEPTION.—No United States assistance under 11 this section may be provided to a European or Eurasian 12 country that engages in a significant transaction described 13 in subsection (a) of section 231 of the Countering Amer- 14 ica’s Adversaries Through Sanctions Act (22 U.S.C. 15 9525). 16 SEC. 5. PROGRESS REPORTS. 17 Not later than one year after the date of the enact- 18 ment of this Act and annually thereafter for seven years, 19 the President shall transmit to the Committee on Foreign 20 Relations of the Senate and the Committee on Foreign 21 Affairs of the House of Representatives a report on 22 progress made in providing assistance for projects under 23 section 4 that includes the following: 24 VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS 11 HR 1616 RFS (1) A description of the energy infrastructure 1 projects the United States has identified for such as- 2 sistance. 3 (2) For each such project, the following: 4 (A) A description of the role of the United 5 States in the project, including in early-stage 6 project support and late-stage project support. 7 (B) The amount and form of any debt fi- 8 nancing and insurance provided by the United 9 States Government for the project. 10 (C) The amount and form of any early- 11 stage project support. 12 (D) An update on the progress made on 13 the project as of the date of the report. 14 Passed the House of Representatives March 25, 2019. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:20 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1616.RFS H1616 kjohnson on DSK79L0C42 with BILLS