European Energy Security and Diversification Act of 2019

II Calendar No. 331 116TH CONGRESS 1ST SESSION S. 704 To prioritize the efforts of and enhance coordination among United States agencies to encourage countries in Central and Eastern Europe to diver- sify their energy sources and supply routes, increase Europe’s energy security, and help the United States reach its global energy security goals, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 7, 2019 Mr. MURPHY (for himself, Mr. JOHNSON, Mr. CARDIN, Mr. RUBIO, Mrs. SHA- HEEN, and Mr. GARDNER) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations DECEMBER 17, 2019 Reported by Mr. RISCH, with an amendment and an amendment to the title [Strike out all after the enacting clause and insert the part printed in italic] A BILL To prioritize the efforts of and enhance coordination among United States agencies to encourage countries in Central and Eastern Europe to diversify their energy sources and supply routes, increase Europe’s energy security, and help the United States reach its global energy secu- rity goals, 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 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 2 •S 704 RS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘European Energy Se- 2 curity and Diversification Act of 2019’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) CENTRAL OR EASTERN EUROPEAN COUN- 6 TRY.—The term ‘‘Central or Eastern European 7 country’’ includes— 8 (A) Albania; 9 (B) Bosnia and Herzegovina; 10 (C) Bulgaria; 11 (D) Croatia; 12 (E) Cyprus; 13 (F) the Czech Republic; 14 (G) Estonia; 15 (H) Greece; 16 (I) Hungary; 17 (J) Kosovo; 18 (K) Latvia; 19 (L) Lithuania; 20 (M) Macedonia; 21 (N) Moldova; 22 (O) Montenegro; 23 (P) Poland; 24 (Q) Romania; 25 (R) Serbia; 26 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 3 •S 704 RS (S) Slovakia; 1 (T) Slovenia; and 2 (U) Ukraine. 3 (2) EARLY-STAGE PROJECT SUPPORT.—The 4 term ‘‘early-stage project support’’ includes— 5 (A) feasibility studies; 6 (B) resource evaluations; 7 (C) project appraisal and costing; 8 (D) pilot projects; 9 (E) commercial support, such as trade 10 missions, reverse trade missions, technical 11 workshops, international buyer programs, and 12 international partner searchers to link suppliers 13 to projects; 14 (F) technical assistance and other guid- 15 ance to improve the local regulatory environ- 16 ment and market frameworks to encourage 17 transparent competition and enhance energy se- 18 curity; and 19 (G) long-term energy sector planning. 20 (3) LATE-STAGE PROJECT SUPPORT.—The term 21 ‘‘late-stage project support’’ includes debt financing, 22 insurance, and transaction advisory services. 23 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 4 •S 704 RS SEC. 3. STATEMENT OF POLICY. 1 (a) SENSE OF CONGRESS.—It is the sense of Con- 2 gress that the United States has economic and national 3 security interests in assisting Central and Eastern Euro- 4 pean countries achieve energy security through diversifica- 5 tion of their energy sources and supply routes. 6 (b) STATEMENT OF POLICY.—It is the policy of the 7 United States— 8 (1) to advance United States foreign policy and 9 development goals by assisting Central and Eastern 10 European countries to reduce their dependence on 11 energy resources from countries that use energy de- 12 pendence for undue political influence, such as the 13 Russian Federation, which has used natural gas to 14 coerce, intimidate, and influence other countries; 15 (2) to promote the energy security of allies and 16 partners of the United States by encouraging the de- 17 velopment of accessible, transparent, and competitive 18 energy markets that provide diversified sources, 19 types, and routes of energy; 20 (3) to encourage United States public and pri- 21 vate sector investment in European energy infra- 22 structure projects to bridge the gap between energy 23 security requirements and commercial demand in a 24 way that is consistent with the region’s absorptive 25 capacity; and 26 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 5 •S 704 RS (4) to help facilitate the export of United States 1 energy resources, technology, and expertise to global 2 markets in a way that benefits the energy security 3 of allies and partners of the United States, including 4 in Central and Eastern Europe. 5 SEC. 4. PRIORITIZATION OF EFFORTS AND ASSISTANCE 6 FOR ENERGY INFRASTRUCTURE PROJECTS 7 IN CENTRAL AND EASTERN EUROPE. 8 (a) IN GENERAL.—In pursuing the policy described 9 in section 3, the Secretary of State, in coordination with 10 the heads of United States agencies that operate under 11 the policy guidance of the Secretary, shall, as appropriate, 12 prioritize and expedite the efforts of the Department of 13 State and those agencies in supporting the efforts of the 14 European Commission and the governments of Central 15 and Eastern European countries to increase their energy 16 security, including through— 17 (1) providing diplomatic and political support to 18 the European Commission and those governments, 19 as necessary— 20 (A) to facilitate international negotiations 21 concerning cross-border infrastructure; 22 (B) to enhance Europe’s regulatory envi- 23 ronment with respect to energy; and 24 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 6 •S 704 RS (C) to develop accessible, transparent, and 1 competitive energy markets supplied by diverse 2 sources, types, and routes of energy; and 3 (2) providing support to improve European en- 4 ergy markets, including early-stage project support 5 and late-stage project support for the construction 6 or improvement of energy infrastructure, as nec- 7 essary— 8 (A) to diversify the energy sources and 9 supply routes of Central and Eastern European 10 countries; 11 (B) to enhance energy market integration 12 across the region; and 13 (C) to increase competition within energy 14 markets. 15 (b) PROJECT SELECTION.— 16 (1) IN GENERAL.—The agencies described in 17 subsection (a) shall identify energy infrastructure 18 projects that would be appropriate for United States 19 assistance under this section. 20 (2) PROJECT ELIGIBILITY.—A project is eligible 21 for United States assistance under this section if the 22 project is— 23 (A) related to— 24 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 7 •S 704 RS (i) natural gas infrastructure, such as 1 interconnectors, storage facilities, liquefied 2 natural gas import facilities, or reverse 3 flow capacity; 4 (ii) electricity transmission infrastruc- 5 ture, electricity storage projects, or smart 6 grid projects; 7 (iii) renewable energy projects in 8 wind, solar, tidal, or other forms; or 9 (iv) the improvement, rehabilitation, 10 or construction of natural gas, coal, or 11 other electricity generation facilities to in- 12 crease the efficiency and reliability of elec- 13 tricity production; and 14 (B) located in a Central or Eastern Euro- 15 pean country. 16 (3) PREFERENCE.—In selecting among projects 17 that are eligible under paragraph (2), the agencies 18 described in subsection (a) shall give preference to 19 projects that— 20 (A) link the energy systems of two or more 21 Central and Eastern European countries; 22 (B) have already been identified by the 23 European Commission as being integral for the 24 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 8 •S 704 RS energy security of Central and Eastern Euro- 1 pean countries; 2 (C) are expected to enhance energy market 3 integration; 4 (D) can attract funding from the private 5 sector, an international financial institution, the 6 government of the country in which the project 7 will be carried out, or the European Commis- 8 sion; or 9 (E) have the potential to use United States 10 goods and services during project implementa- 11 tion. 12 (c) TYPES OF ASSISTANCE.— 13 (1) DIPLOMATIC AND POLITICAL SUPPORT.— 14 The Secretary of State shall provide diplomatic and 15 political support to the European Commission and 16 the governments of Central and Eastern European 17 countries, as necessary, including by using the diplo- 18 matic and political influence and expertise of the De- 19 partment of State to build the capacity of those 20 countries to resolve any impediments to the develop- 21 ment of projects selected under subsection (b). 22 (2) EARLY-STAGE PROJECT SUPPORT.—The Di- 23 rector of the Trade and Development Agency shall 24 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 9 •S 704 RS provide early-stage project support with respect to 1 projects selected under subsection (b), as necessary. 2 (3) LATE-STAGE PROJECT SUPPORT.—Agencies 3 described in subsection (a) that provide late-stage 4 project support shall do so with respect to projects 5 selected under subsection (b), as necessary. 6 (d) FUNDING.— 7 (1) PRIVATE SECTOR INVESTMENT.—The agen- 8 cies described in subsection (a)— 9 (A) are authorized to provide financing of 10 not more than $1,000,000,000 to support pri- 11 vate sector investment in projects that diversify 12 the energy sources and energy transport capa- 13 bilities of Central and Eastern European coun- 14 tries and to improve energy market integration 15 in those countries; and 16 (B) shall ensure that amounts from such 17 investments are available for fiscal years 2020 18 through 2024 for debt financing and insurance 19 for projects under this section. 20 (2) AUTHORIZATION OF APPROPRIATIONS FOR 21 TRADE AND DEVELOPMENT AGENCY.—There are au- 22 thorized to be appropriated to the Director of the 23 Trade and Development Agency for each of fiscal 24 years 2020 through 2024— 25 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 10 •S 704 RS (A) $5,000,000 to provide assistance under 1 this section; and 2 (B) such sums as may be necessary for the 3 Agency to employ additional personnel to pro- 4 vide such assistance. 5 (3) COUNTERING RUSSIAN INFLUENCE FUND.— 6 Section 254(b) of the Countering Russian Influence 7 in Europe and Eurasia Act of 2017 (22 U.S.C. 8 9543(b)) is amended by adding at the end the fol- 9 lowing: 10 ‘‘(7) To assist United States agencies in pro- 11 viding assistance under section 4 of the European 12 Energy Security and Diversification Act of 2019.’’. 13 SEC. 5. PROGRESS REPORTS. 14 Not later than one year after the date of the enact- 15 ment of this Act, and annually thereafter, the President 16 shall submit to the Committee on Foreign Relations of the 17 Senate and the Committee on Foreign Affairs of the 18 House of Representatives a report on progress made in 19 providing assistance for projects under section 4 that in- 20 cludes— 21 (1) a description of the energy infrastructure 22 projects the United States has identified for such as- 23 sistance; and 24 (2) for each such project— 25 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 11 •S 704 RS (A) a description of the role of the United 1 States in the project, including in early-stage 2 project support and late-stage project support; 3 (B) the amount and form of any debt fi- 4 nancing and insurance provided by the United 5 States Government for the project; 6 (C) the amount and form of any early- 7 stage project support; and 8 (D) an update on the progress made on 9 the project as of the date of the report. 10 SECTION 1. SHORT TITLE. 11 This Act may be cited as the ‘‘European Energy Secu- 12 rity and Diversification Act of 2019’’. 13 SEC. 2. DEFINITIONS. 14 In this Act: 15 (1) EARLY-STAGE PROJECT SUPPORT.—The term 16 ‘‘early-stage project support’’ includes— 17 (A) feasibility studies; 18 (B) resource evaluations; 19 (C) project appraisal and costing; 20 (D) pilot projects; 21 (E) commercial support, such as trade mis- 22 sions, reverse trade missions, technical work- 23 shops, international buyer programs, and inter- 24 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 12 •S 704 RS national partner searchers to link suppliers to 1 projects; 2 (F) technical assistance and other guidance 3 to improve the local regulatory environment and 4 market frameworks to encourage transparent 5 competition and enhance energy security; and 6 (G) long-term energy sector planning. 7 (2) LATE-STAGE PROJECT SUPPORT.—The term 8 ‘‘late-stage project support’’ includes debt financing, 9 insurance, and transaction advisory services. 10 SEC. 3. STATEMENT OF POLICY. 11 (a) SENSE OF CONGRESS.—It is the sense of Congress 12 that the United States has economic and national security 13 interests in assisting European and Eurasian countries 14 achieve energy security through diversification of their en- 15 ergy sources and supply routes. 16 (b) STATEMENT OF POLICY.—It is the policy of the 17 United States— 18 (1) to advance United States foreign policy and 19 development goals by assisting European and Eur- 20 asian countries to reduce their dependence on energy 21 resources from countries that use energy dependence 22 for undue political influence, such as the Russian 23 Federation, which has used natural gas to coerce, in- 24 timidate, and influence other countries; 25 VerDate Sep 11 2014 04:20 Dec 18, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\S704.RS S704 kjohnson on DSK79L0C42 with BILLS 13 •S 704 RS (2) to promote the energy security of allies and 1 partners of the United States by encouraging the de- 2 velopment of accessible, transparent, and competitive 3 energy markets that provide diversified sources, types, 4 and routes of energy; 5 (3) to encourage United States public and pri- 6 vate sector investment in European energy infrastruc- 7 ture projects to bridge the gap between energy security 8 requirements and commercial de [Text truncated for display. Full text available on Congress.gov.]