[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2845 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2845
To provide support for energy infrastructure projects in the Indo-
Pacific region, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 23, 2021
Mr. Sullivan introduced the following bill; which was read twice and
referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To provide support for energy infrastructure projects in the Indo-
Pacific region, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Indo-Pacific Strategic Energy
Initiative Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The United States currently has an approximately 100-
year supply of natural gas.
(2) Natural gas will see increasing global demand and use
beyond 2050.
(3) United States natural gas production increased by 54
percent from 2005 to 2017. At the same time, total United
States carbon dioxide emissions decreased by 14 percent. The
natural gas share of electricity production increased from 19
percent in 2005 to 32 percent in 2017.
(4) Between 2005 and 2019, carbon dioxide emissions from
the United States power sector declined by 33 percent, with
fuel switching to natural gas, accounting for more than half of
those reductions. During that period, the United States economy
grew by 20 percent, United States energy consumption fell by 2
percent, and per capita emissions dropped to their lowest
levels since 1950.
(5) Between 1990 and 2018, the natural gas and oil industry
reduced methane emissions by 23.6 percent through voluntary
actions, while expanding production by 70 percent.
(6) Demand in the United States and globally for clean-
burning natural gas and liquefied natural gas will continue to
increase over the next several decades, even as renewable
energy resources increase.
(7) Demand for natural gas is rising in the Indo-Pacific
region, particularly as countries look to make emissions cuts
and transition from higher emissions fuel sources.
(8) The expanding number of infrastructure projects in the
Indo-Pacific region, carried out under the Belt and Road
Initiative, is leading to higher emissions in the region.
(9) According to the International Energy Agency, ``The
number of countries and territories with [liquefied natural
gas] import terminals has grown from nine in 2000 to 42 in
2020.''. Further, the International Energy Agency has found
that ``transition[s] in Asian gas markets [are] even more
important in the wider context of global clean energy
transitions, where natural gas will be required to make a more
flexible contribution as the share of variable renewable energy
sources grows and coal use progressively declines''.
(10) The United States saw a 66.3-percent increase in
liquefied natural gas exports and an 11.2-percent increase in
oil production in 2019.
(11) As a result of the natural gas revolution, the United
States petroleum trade deficit in dollars fell from about
$320,000,000,000 in 2007 to about $3,000,000,000 in 2020, as
net imports declined.
(12) Australia and the United States are both important
global energy exporters and thus have a shared interest in
supplying the growing energy demand in the Indo-Pacific region.
(13) Japanese companies have long invested in United States
liquefied natural gas projects, including the Government of
Japan shifting from relying on liquefied natural gas from the
Middle East to liquefied natural gas from the United States.
(14) The People's Republic of China currently is one of the
largest financiers of overseas energy and greenhouse gas
intensive projects. The People's Republic of China also uses
those investments to project its influence and secure critical
minerals supply chains and infrastructure.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the United States reaffirms its commitment to
quadrilateral cooperation with Japan, India, and Australia
(collectively, with the United States, known as the ``Quad''),
and that United States should continue to pursue strengthening
cooperation in the energy sector in light of the global threats
and challenges facing all 4 countries;
(2) the Association of Southeast Asian Nations (commonly
referred to as ``ASEAN'') and its 10 members (Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,
Thailand, and Vietnam) have worked with the United States
toward stability, prosperity, and peace in Southeast Asia, and
ASEAN will continue to remain a strong, reliable, and active
economic and strategic partner in the Indo-Pacific region;
(3) the United States and the Republic of Korea enjoy a
comprehensive alliance partnership, founded in shared strategic
interests and cemented by a commitment to democratic values,
which includes recognizing the important role of energy
cooperation through the United States-Republic of Korea Energy
Security Dialogue; and
(4) the United States has economic, national security, and
domestic interests in assisting allies and partners in Indo-
Pacific countries to reduce greenhouse gas emissions and
achieve energy security through diversification of their energy
sources and supply routes.
SEC. 4. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to engage and lead on international emissions
reductions and adaptation, including assisting allies and
partners in reducing higher emissions fuel sources through
exports of cleaner-burning United States-produced fuels and
emission-reduction technologies;
(2) to advance United States foreign policy and development
goals by assisting allies and partners of the United States in
the Indo-Pacific region to decrease their dependence on energy
resources from countries that use energy dependence to coerce,
intimidate, and influence other countries;
(3) to develop strategies to counter competition from the
Russian Federation and the People's Republic of China to
protect the energy and national security of the United States
and the energy and national security of allies and partners of
the United States in the Indo-Pacific region;
(4) to support free and open trade in clean-burning energy
products and promote the continued development of lower-
emissions energy fuels and technologies in the Indo-Pacific
region;
(5) to improve free, fair, and reciprocal energy trading
relationships with allies and partners of the United States in
the Indo-Pacific region;
(6) to promote the energy security of allies and partners
of the United States in the Indo-Pacific region by encouraging
the development of energy infrastructure and accessible,
transparent, and competitive energy markets that provide
diversified sources, types, and routes of energy;
(7) to encourage public and private sector investment in
lower-emissions energy infrastructure projects in the Indo-
Pacific region;
(8) to supply countries that rely on higher emitting fuel
sources with cleaner burning and abundant alternatives; and
(9) to help facilitate the export of United States energy
resources, technology, and expertise to global markets in a way
that benefits the energy security of allies and partners of the
United States in the Indo-Pacific region.
SEC. 5. ENERGY INFRASTRUCTURE PROJECT SUPPORT.
(a) In General.--The Secretary of State, in consultation with the
Secretary of Energy, the heads of other relevant United States
agencies, and energy-importing allies and partners of the United
States, shall, as appropriate, prioritize and expedite the efforts of
the Department of State, the Department of Energy, and such other
agencies in supporting the governments of Japan, India, Australia, and
other like-minded Indo-Pacific countries (including member countries of
ASEAN and the Republic of Korea) to increase their energy security and
reduce energy emissions, including through--
(1) providing diplomatic and political support to those
governments, as necessary--
(A) to facilitate international negotiations
concerning cross-border infrastructure;
(B) to enhance the regulatory environment with
respect to energy projects in the Indo-Pacific region;
and
(C) to develop accessible, transparent, and
competitive energy markets supplied by diverse sources,
types, and routes of energy; and
(2) providing support--
(A) to improve energy markets in the Indo-Pacific
region, including early-stage project support and late-
stage project support for the construction or
improvement of energy projects and related
infrastructure pertaining to emissions reduction;
(B) to diversify the energy sources and supply
routes of Indo-Pacific countries; and
(C) to enhance energy market integration across the
region.
(b) Project Selection.--
(1) Identification.--The Secretary of State, the Secretary
of Commerce, and the Secretary of Energy shall identify energy
infrastructure projects that would be appropriate for United
States assistance under this section.
(2) Eligibility.--A project is eligible for United States
assistance under this section if the project--
(A) has been identified by the Secretary of State,
the Secretary of Commerce, and the Secretary of Energy
as promoting energy security in the Indo-Pacific region
or the country in which the project is located;
(B) promotes the reduction of greenhouse gas and
carbon dioxide emissions; and
(C) is located in an Indo-Pacific country.
(3) Preference.--In selecting projects for United States
assistance under this section, the Secretary of State, the
Secretary of Commerce, and the Secretary of Energy shall give
preference to projects that--
(A) are expected to enhance energy market
integration; or
(B) have the potential to use goods and services of
the United States, another Quad country, a member
country of ASEAN, or the Republic of Korea, during
project implementation.
(c) Diplomatic and Political Support.--The Secretary of State shall
provide diplomatic and political support to the governments of Japan,
India, Australia, and other like-minded Indo-Pacific countries
(including member countries of ASEAN and the Republic of Korea), as
necessary, 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 (b).
(d) Project Support.--The Director of the Trade and Development
Agency shall provide early-stage project support with respect to
projects selected under subsection (b).
SEC. 6. INFRASTRUCTURE FUNDING.
(a) Establishment of Strategic Energy Portfolio of the United
States International Development Finance Corporation.--Title V of the
Better Utilization of Investments Leading to Development Act of 2018
(22 U.S.C. 9671 et seq.) is amended by adding at the end the following:
``SEC. 1455. STRATEGIC ENERGY PORTFOLIO.
``The Corporation--
``(1) may provide support under title II for projects
related to importation of liquefied natural gas and generation
of low emission electricity and other energy, including for
such projects of entities owned or controlled by the government
of a foreign country;
``(2) may not prohibit, restrict, or otherwise impede the
provision of support on the basis of the type of energy
involved in a project; and
``(3) should, in providing support authorized by paragraph
(1), coordinate with the Japan Bank for International
Cooperation and the Government of Australia pursuant to the
trilateral memorandum of understanding on development finance
signed on November 12, 2018.''.
(b) Promotion of Energy Exports by Export-Import Bank of the United
States.--The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is
amended by adding at the end the following:
``SEC. 16. STRATEGIC ENERGY PORTFOLIO.
``(a) In General.--The Bank shall establish a strategic energy
portfolio focused on providing financing (including loans, guarantees,
and insurance) for projects described in subsection (b) that may
facilitate--
``(1) increases in exports of United States energy
commodities; or
``(2) the export of United States equipment, materials, and
technology.
``(b) Projects Described.--A project described in this subsection
is a project related to--
``(1) construction of liquefied natural gas import
terminals;
``(2) commercialization of carbon capture, utilization, and
storage;
``(3) development of blue hydrogen infrastructure; or
``(4) other low emission energy infrastructure.''.
(c) Private and Foreign Public Sector Investment.--
(1) Private sector investment.--The Secretary of Commerce
and the Secretary of State shall promote the funding of
projects selected under section 5 among United States energy
producers and exporters.
(2) Foreign public sector investment.--The heads of the
agencies described in section 5(a) may, for the purposes of
this Act, partner and coordinate with public and multilateral
financial institutions and export credit agencies of Japan,
India, Australia, and other Indo-Pacific countries (including
member countries of ASEAN and the Republic of Korea), such as
the Japan Bank for International Cooperation.
SEC. 7. REPORTING.
(a) In General.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the President shall
submit to the appropriate congressional committees a report on progress
made in providing assistance for projects under this Act that
includes--
(1) a description of the energy infrastructure projects the
United States has identified for such assistance; and
(2) for each such project--
(A) a description of the role of the United States
in the project, including in early-stage project
support and late-stage project support;
(B) the amount and form of any debt financing and
insurance provided by the United States Government for
the project as well as any coordination with foreign
public financial institutions or export credit
agencies;
(C) the amount and form of any debt financing and
insurance provided by foreign public financial
institutions or export credit agencies;
(D) the amount and form of any early-stage project
support; and
(E) an update on the progress made on the project
as of the date of the report.
(b) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Relations, the Committee on
Energy and Natural Resources, and the Committee on Environment
and Public Works of the Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Energy and Commerce, and the Committee on Natural Resources of
the House of Representatives.
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