,i #aaith ,,congress #ast ,session ,h4 ,r4 #ehde ,,in ,,the ,,house ,,of ,,representatives ,october #bh1 #bjbe,mr4 ,espaillat introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs ,a ,,bill ,to establish a lending program for ,latin ,america and the ,caribbean to reaffirm the ,united ,states commitment to sustainable and equitable growth and energy security in the ,western ,hemisphere4 #a4 ,short title ,this ,act may be cited as the ,las ,americas ,energy ,security ,act4 #b4 ,findings2 purpose2 statement of policy 7a7 ,findings ,congress finds the following3 7#a7 ,energy independence and security are critical for a country to maintain its sovereignty1 independence1 and sustainable economic growth4 7#b7 ,the ,international ,energy ,agency 7,,iea7 defines energy security as the uninterrupted availability of energy sources at an affordable price4 7#c7 ,the ,,iea defines long-term energy security as primarily dealing with timely investments to supply energy in line with economic developments and environmental needs4 7#d7 ,the ,,iea defines short-term energy security as focusing on the ability of a country's energy system to react promptly to sudden changes in the supply-demand balance4 7#e7 ,the ,,iea's ,executive ,director remarked in ,february #bjbc that ,russia's ,february #bjbb invasion of ,ukraine had sparked an ongoing global energy crisis with serious implications for international energy security4 7#f7 ,the ,intergovernmental ,panel on ,climate ,change 7,,ipcc71 a ,united ,nations body that provides regular assessments on global heating1 issued a synthesis report in ,march #bjbc1 and found that the effects of global temperature changes were 8already affecting many weather and climate extremes in every region across the globe10 which has 8led to widespread adverse impacts on food and water security1 human health and on economies and society and related losses and damages to nature and people404 7#g7 ,the ,,ipcc notes that to avoid mounting loss of life1 biodiversity1 and infrastructure1 we must have ambitious1 accelerated action to adapt to climate change1 while also making rapid1 deep cuts in greenhouse gas emissions4 7#h7 ,the ,world ,meteorological ,organization's ,state of the ,climate in ,latin ,america and the ,caribbean #bjba report found that-- 7,a7 widespread drought across ,latin ,america and the ,caribbean has had significant impact on inland shipping routes1 crop yields1 and food production1 and consequently led to worsening food insecurity2 7,b7 extreme weather events affected millions of people across ,central ,america1 exacerbating food insecurity in countries already crippled by economic shocks1 ,,covid-#ai impacts1 and conflict2 and 7,c7 sea-level rise poses a major risk to low-lying coastal zones in ,latin ,america and the ,caribbean4 7#i7 ,the ,united ,nations states that facilitating more reliable and affordable access to clean electricity helps governments to improve the quality of other basic services1 such as education and healthcare4 ,electricity access also helps diversify and strengthen local economies4 ,thus1 increasing electricity access could reduce the need to migrate to urban areas and other countries4 7#aj7 ,natural disasters of increased frequency are projected to increase the displacement of people and the ,united ,nations ,high ,commissioner for ,refugees estimates that an annual average of more than #bj million people have been forcibly displaced by weather-related sudden onset hazards every year since #bjjh4 7#aa7 ,rising commodity and energy prices1 as well as other global economic shocks such as those caused by natural disasters1 pandemics1 and conflict pose a serious security risk that may lead to social unrest and instability in ,latin ,america and the ,caribbean4 7b7 ,sense of congress ,it is the sense of ,congress that the ,united ,states has economic and national security interests in assisting ,latin ,america and the ,caribbean to achieve sustainable energy security4 7c7 ,statement of policy ,it is the policy of the ,united ,states-- 7#a7 to advance ,united ,states foreign policy and development goals by helping ,latin ,america and the ,caribbean meet its short-term energy needs2 7#b7 to promote the energy security of ,latin ,america and the ,caribbean by encouraging the development of accessible1 transparent1 competitive1 and solvent energy markets and systems that provide diversified sources1 types1 and routes of energy1 as well as by prioritizing clean energy sources that reduce carbon emissions and address the ongoing global rise in temperatures2 7#c7 to encourage ,united ,states public and private sector investment in ,latin ,american and ,caribbean energy infrastructure projects to bridge the gap between energy security and commercial demand in a way that is consistent with the region's current absorptive capacity1 and that recognizes the importance of building and widening the absorptive capacity of the region2 7#d7 to help facilitate the export of ,united ,states energy resources1 technology1 and expertise to global markets in a way that benefits the comprehensive energy security of ,latin ,america and the ,caribbean2 and 7#e7 to assist partner countries in developing and strengthening regulatory and investment frameworks that support energy security4 #c4 ,sovereign lending program for eligible ,latin ,american and ,caribbean partner countries 7a7 ,in general ,not later than #cj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 with the concurrence of the ,secretary of ,state1 shall establish a sovereign lending program for eligible ,latin ,american and ,caribbean partner countries-- 7#a7 to support their short-term energy needs2 7#b7 to fund projects that help them transition to renewable or clean energy that reduces carbon emissions2 7#c7 to fund technical assistance programs that ensure that there is a continuous pipeline of clean energy projects available for investment from the ,united ,states1 ,latin ,america1 and the ,caribbean2 7#d7 to provide capital and financing for ,united ,states companies to make it easier to invest in renewable energy projects in smaller and developing markets2 and 7#e7 to provide financing to partner countries to help purchase battery solutions that contribute to reliable and affordable electricity prices4 7b7 ,application ,to be eligible to receive a loan under the program1 an eligible ,latin ,american or ,caribbean partner country shall submit to the ,secretary of the ,treasury an application at such time1 in such manner1 and containing such information as the ,secretary may require4 ,at minimum1 the ,secretary shall require an applicant to provide-- 7#a7 information about the energy projects that will be supported through these funds1 including their economic and technical viability1 feasibility to attract funding from the private sector1 net carbon impact1 the potential to use ,united ,states goods and services during project implementation1 and enhancement of energy market integration2 7#b7 data on how funds will support equitable job creation2 7#c7 information regarding environmental impact1 including on biodiversity2 7#d7 data on the impact upon marginalized communities2 and 7#e7 certification that no funds shall be used to purchase a commodity from or support in any manner a corporation or state-owned enterprise that has an ownership relationship with the ,government of the ,people's ,republic of ,china or the ,chinese ,communist ,party1 the ,government of the ,russian ,federation1 or any other foreign adversary or malign influence4 7c7 ,preference ,in selecting among applications for a loan under this section1 the ,secretary of ,state shall give preference to an eligible ,latin ,american or ,caribbean partner country that shares democratic values1 respect for human rights1 and economic freedom1 as determined by the ,secretary of ,state1 including members of the ,alliance for ,development in ,democracy 7the ,dominican ,republic1 ,costa ,rica1 ,panama1 and ,ecuador7 and the ,caribbean ,community 7,,caricom74 7d7 ,loan conditions ,a loan provided under the program-- 7#a7 shall be-- 7,a7 a zero-interest loan1 not to exceed #cj years in duration2 or 7,b7 a low-interest concessional loan1 not to exceed #ej years in duration2 7#b7 shall not contain any requirements that an eligible ,latin ,american or ,caribbean partner country engage in austerity measures or policies that increase poverty and inequality1 diminish the quality of life1 and threaten the immediate access of goods and services2 7#c7 shall ensure that no funds are used to purchase a commodity from or support in any manner a corporation or state-owned enterprise that has an ownership relationship with the ,government of the ,people's ,republic of ,china or the ,chinese ,communist ,party1 the ,government of the ,russian ,federation1 or any other foreign adversary or malign actor2 and 7#d7 shall be subject to such other terms and conditions as the ,secretary of the ,treasury1 in concurrence with the ,secretary of ,state1 determines to be appropriate4 7e7 ,report 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter for #d years1 the ,secretary of the ,treasury1 in concurrence with the ,secretary of ,state1 and in consultation with the ,secretary of ,energy and the heads of other relevant ,federal departments and agencies1 shall submit to the ,committee on ,foreign ,affairs and the ,committee on ,appropriations of the ,house of ,representatives and the ,committee on ,foreign ,relations and the ,committee on ,appropriations of the ,senate a report on progress in the implementation of the program4 7#b7 ,matters to be included ,the report shall-- 7,a7 include a description of how the program strengthens ,united ,states national security and economic interests in ,latin ,america and the ,caribbean2 7,b7 include an assessment of-- 7i7 the status and effectiveness of current efforts by regional governments1 multilateral development banks1 and the private sector to promote energy security in ,latin ,america and the ,caribbean and to transition to clean energy practices2 7ii7 major challenges hindering such efforts2 and 7iii7 how the ,united ,states can strengthen the effectiveness of such efforts2 7,c7 identify how activities by the ,department of ,state1 the ,united ,states ,agency for ,international ,development1 the ,united ,states ,international ,development ,finance ,corporation1 and other related agencies can effectively be leveraged to strengthen and promote energy independence and security in ,latin ,america and the ,caribbean2 7,d7 assess diplomatic initiatives taken to secure specific national commitments by governments of eligible ,latin ,american and ,caribbean partner countries to undertake efforts to promote energy security and independence in the region1 address corruption and rule of law concerns1 modernize digital and physical infrastructure1 improve ease of doing business1 and finance and incentivize energy security initiatives2 and 7,e7 detail coordination of efforts with relevant multilateral development banks to advance energy security and independence of eligible ,latin ,american and ,caribbean partner countries4 7f7 ,annual audit ,the ,secretary of the ,treasury-- 7#a7 shall ensure that a full audit of the program is performed on an annual basis2 and 7#b7 shall submit the results of the audit to the ,committee on ,foreign ,affairs and the ,committee on ,appropriations of the ,house of ,representatives and the ,committee on ,foreign ,relations and the ,committee on ,appropriations of the ,senate4 7g7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary of the ,treasury #ajj1jjj1jjj for each of fiscal years #bjbf through #bjca to carry out the program4 7h7 ,eligible latin american or caribbean partner country defined ,in this section1 the term eligible ,latin ,american or ,caribbean partner country-- 7#a7 means a country that-- 7,a7 is a beneficiary country for purposes of the ,caribbean ,basin ,economic ,recovery ,act 7#ai ,u4,s4,c4 #bgja et seq472 7,b7 is a member state of the ,caribbean ,community 7commonly referred to as ,,caricom72 7,c7 is a member state of the ,alliance for ,development in ,democracy2 7,d7 is a country in the ,western ,hemisphere that is a party to a free trade agreement or preference program with the ,united ,states2 or 7,e7 is a beneficiary country of the ,caribbean ,basin ,security ,initiative2 and 7#b7 does not include any country that-- 7,a7 has been sanctioned by the ,united ,states2 or 7,b7 the ,secretary of ,state determines-- 7i7 to be a state sponsor of terrorism2 or 7ii7 to be a foreign adversary1 defined as a foreign government engaged in a long-term pattern or serious instances of conduct adverse to the national security of the ,united ,states or security and safety of ,united ,states persons4 #d4 ,supporting efforts to increase energy security of eligible ,latin ,american and ,caribbean partner countries 7a7 ,in general ,the ,secretary of ,state1 in consultation with the ,secretary of ,energy and the heads of other relevant ,federal departments and agencies1 shall1 as appropriate1 prioritize and expedite the efforts of the ,department of ,state and those other departments and agencies in supporting the efforts of eligible ,latin ,american and ,caribbean partner countries to increase their energy security1 including through-- 7#a7 providing diplomatic and political support to these governments1 as necessary-- 7,a7 to facilitate international negotiations concerning cross-border infrastructure and transactions2 7,b7 to enhance and build ,latin ,america's and the ,caribbean's regulatory environment with respect to energy2 and 7,c7 to develop accessible1 transparent1 and competitive energy markets supplied by diverse sources1 types1 and routes of energy to achieve energy efficiency2 and 7#b7 providing support to improve ,latin ,american and ,caribbean energy markets1 including early-stage project support and late-stage project support for the construction or improvement of energy and related infrastructure1 as necessary-- 7,a7 to diversify the energy sources and supply routes of eligible ,latin ,american and ,caribbean partner countries2 7,b7 to enhance energy market integration across the region2 and 7,c7 to increase competition and aggregate energy markets4 7b7 ,project selection 7#a7 ,in general ,the ,federal departments and agencies described in subsection 7a7 shall identify energy infrastructure projects that would be appropriate for ,united ,states assistance under this section4 7#b7 ,project eligibility ,a project is eligible for ,united ,states assistance under this section if the project-- 7,a7 7i7 improves electricity transmission infrastructure and power generation through the use of a broad power mix1 prioritizing renewable energy or energy efficiency2 7ii7 advances energy storage projects1 smart grid projects1 distributed generation models1 or other technological innovations and digitalization of the power sector1 as appropriate2 and 7iii7 improves energy access for marginalized and underserved communities2 7,b7 is located in an eligible ,latin ,american or ,caribbean partner country2 and 7,c7 can be conducted in a transparent and accountable manner that mitigates any risk of corruption4 7#c7 ,preference ,in selecting among projects that are eligible under paragraph 7#b71 the ,federal departments and agencies described in subsection 7a7 shall give preference to projects that-- 7,a7 link the energy systems of two or more ,latin ,american and ,caribbean partner countries2 7,b7 address the impacts of sustained global temperature increases2 7,c7 enhance resilience to sustained global temperature increases and global economic shocks2 7,d7 are expected to enhance energy market integration2 7,e7 can demonstrate sustainability by attracting funding from the private sector1 an international financial institution1 or the government of the country in which the project will be carried out2 7,f7 have the potential to use ,united ,states goods and services during project implementation2 or 7,g7 decrease electricity prices and promote price stability in the face of global economic shocks4 7c7 ,types of assistance 7#a7 ,diplomatic and political support ,the ,secretary of ,state shall provide diplomatic and political support to the governments of eligible ,latin ,american and ,caribbean countries1 as necessary1 including by using the diplomatic and political influence and expertise of the ,department of ,state to build the capacity of those countries to resolve any impediments to the development of projects selected under subsection 7b74 7#b7 ,early-stage project support ,the ,director of the ,trade and ,development ,agency1 in consultation with the ,united ,states ,agency for ,international ,development1 the ,inter-,american ,development ,bank1 the ,caribbean ,development ,bank1 and the ,world ,bank1 shall provide early-stage project support with respect to projects selected under subsection 7b71 as necessary4 7#c7 ,late-stage project support ,federal departments and agencies described in subsection 7a7 that provide late-stage project support shall do so with respect to projects selected under subsection 7b71 as necessary4 7d7 ,exception from certain limitation under build act ,for purposes of providing support for projects under this section-- 7#a7 the ,united ,states ,international ,development ,finance ,corporation may provide support for projects in countries with upper-middle-income economies or high-income economies 7as those terms are defined by the ,world ,bank72 7#b7 the restriction under section #adab7;c77#b7 of the ,,build ,act of #bjah 7#bb ,u4,s4,c4 #ifab7;c77#b77 shall not apply2 and 7#c7 the ,corporation shall restrict the provision of such support in a country described in paragraph 7#a7 unless-- 7,a7 the ,president certifies to the appropriate congressional committees that such support furthers the national economic or foreign policy interests of the ,united ,states2 and 7,b7 such support is-- 7i7 designed to produce significant developmental outcomes or provide developmental benefits to the poorest population of that country2 or 7ii7 necessary to preempt or counter efforts by a strategic competitor of the ,united ,states to secure significant political or economic leverage or acquire national security-sensitive technologies or infrastructure in a country that is an ally or partner of the ,united ,states4 7e7 ,progress reports ,not later than one year after the date of the enactment of this ,act1 and annually thereafter for seven years1 the ,president shall transmit to the ,committee on ,foreign ,affairs and the ,committee on ,appropriations of the ,house of ,representatives and the ,committee on ,foreign ,relations and the ,committee on ,appropriations of the ,senate a report on progress made in providing assistance for projects under this section that includes the following3 7#a7 ,a description of the energy infrastructure projects the ,united ,states has identified for such assistance4 7#b7 ,for each such project-- 7,a7 a description of the role of the ,united ,states in the project1 including in early-stage project support and late-stage project support2 7,b7 the amount and form of any debt financing and insurance provided by the ,united ,states ,government for the project2 7,c7 the amount and form of any early-stage project support2 and 7,d7 an update on the progress made on the project as of the date of the report4 7f7 ,eligible latin american or caribbean partner country defined ,in this section1 the term eligible ,latin ,american or ,caribbean partner country has the meaning given that term in section #c7;h74