PART V-DEBT REDUCTION FOR DEVELOPING SEC. 801.1242 SHORT TITLE. This part may be cited as the "Tropical Forest Conservation Act of 1998". 1240 Sec. 1 of Public Law 105-214 (112 Stat. 885) added part V. An earlier part V, relating to Indochina Postwar Reconstruction, was repealed by sec. 413 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 761). For complete text of regulations governing determinations, authorizations, etc., and remaining funds under part V, see page 828. An earlier part VI, relating to assistance to the Middle East, had been added by the FA Act of 1974, and was repealed by sec. 12(b)(4) of the International Security Assistance Act of 1978 (Public Law 95-384; 92 Stat. 737). See also Executive Order 13345 of July 8, 2004 (69 F.R. 41901), in which the President assigned foreign affairs functions, requirements under the Enterprise for the Americas Initiative, and the Tropical Forest Conservation Act, under parts IV and V, to members of his cabinet, in Legislation on Foreign Relations Through 2005, vol. I-B. 1241 Sec. 585 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2006 (Public Law 109-102; 119 Stat. 2233), provided the following: "ENVIRONMENT PROGRAMS "SEC. 585. (a) FUNDING.-Of the funds appropriated under the heading 'Development Assistance', not less than $165,500,000 shall be made available for programs and activities which directly protect biodiversity, including forests, in developing countries, of which not less than $10,000,000 should be made available to implement the United States Agency for International Development's biodiversity conservation strategy for the Amazon basin, which amount shall be in addition to the amounts requested for biodiversity activities in these countries in fiscal year 2006: Provided, That of the funds appropriated by this Act, not less than $17,500,000 should be made available for the Congo Basin Forest Partnership of which not less than $2,500,000 should be made available to the United States Fish and Wildlife Service for the protection of great apes in Central Africa: Provided further, That of the funds appropriated by this Act, not less than $180,000,000 shall be made available to support clean energy and other climate change policies and programs in developing countries, of which $100,000,000 should be made available to directly promote and deploy energy conservation, energy efficiency, and renewable and clean energy technologies, and of which the balance should be made available to directly: (1) measure, monitor, and reduce greenhouse gas emissions; (2) increase carbon sequestration activities; and (3) enhance climate change mitigation and adaptation programs. "(b) CLIMATE CHANGE REPORT.-Not later than 60 days after the date on which the President's fiscal year 2007 budget request is submitted to Congress, the President shall submit a report to the Committees on Appropriations describing in detail the following "(1) all Federal agency obligations and expenditures, domestic and international, for climate change programs and activities in fiscal year 2006, including an accounting of expenditures by agency with each agency identifying climate change activities and associated costs by line item as presented in the President's Budget Appendix; and "(2) all fiscal year 2005 obligations and estimated expenditures, fiscal year 2006 estimated expenditures and estimated obligations, and fiscal year 2007 requested funds by the United States Agency for International Development, by country and central program, for each of the following: (i) to promote the transfer and deployment of a wide range of United States clean energy and energy efficiency technologies; (ii) to assist in the measurement, monitoring, reporting, verification, and reduction of greenhouse gas emissions; (iii) to promote carbon capture and sequestration measures; (iv) to help meet such countries' responsibilities under the Framework Convention on Climate Change; and (v) to develop assessments of the vulnerability to impacts of climate change and mitigation and adaptation response strategies. "(c) EXTRACTION OF NATURAL RESOURCES. "(1) The Secretary of the Treasury shall inform the managements of the international financial institutions and the public that it is the policy of the United States that any assistance by such institutions (including but not limited to any loan, credit, grant, or guarantee) for the extraction and export of oil, gas, coal, timber, or other natural resource should not be provided unless the government of the country has in place or is taking the necessary steps to establish functioning systems for: (A) accurately accounting for revenues and expenditures in connection with the extraction and export of the type of natural resource to be extracted or exported; (B) the independent auditing of such accounts and the widespread public dissemination of the audits; and (C) verifying government receipts against company payments including widespread dissemination of such payment information, and disclosing such documents as Host Government Agreements, Concession Agreements, and bidding documents, allowing in any such dissemination or disclosure for the redaction of, or exceptions for, information that is commercially proprietary or that would create competitive disadvantage. (2) Not later than 180 days after the enactment of this Act, the Secretary of the Treasury shall submit a report to the Committees on Appropriations describing, for each international financial institution, the amount and type of assistance provided, by country, for the extrac Continued tion and export of oil, gas, coal, timber, or other national resource since September 30, 2005.". Title III, ch. 8 of the Emergency Supplemental Appropriations Act To Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (division B of Public Law 109-148; 119 Stat. 2791), however, provided the following: "GOVERNMENT-WIDE RESCISSIONS "SEC. 3801. (a) ACROSS-THE-BOARD RESCISSIONS.—There is hereby rescinded an amount equal to 1 percent of "(1) the budget authority provided (or obligation limit imposed) for fiscal year 2006 for any discretionary account of this Act and in any other fiscal year 2006 appropriation Act. "(2) the budget authority provided in any advance appropriation for fiscal year 2006 for any discretionary account in any prior fiscal year appropriation Act; and (3) the contract authority provided in fiscal year 2006 for any program subject to limitation contained in any fiscal year 2006 appropriation Act. "(b) PROPORTIONATE APPLICATION.-Any rescission made by subsection (a) shall be applied proportionately "(1) to each discretionary account and each item of budget authority described in such subsection; and “(2) within each such account and item, to each program, project, and activity (with pregrams, projects, and activities as delineated in the appropriation Act or accompanying re ports for the relevant fiscal year covering such account or item, or for accounts and items not included in appropriation Acts, as delineated in the most recently submitted President's budget). "(c) EXCEPTIONS.-This section shall not apply “(1) to discretionary budget authority that has been designated pursuant to section 402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on the budget for fiscal year 2006; or "(2) to discretionary authority appropriated or otherwise made available to the Depart ment of Veterans Affairs. "(d) OMB REPORT.-Within 30 days after the date of the enactment of this section the Directar of the Office of Management and Budget shall submit to the Committees on Appropriations of the House of Representatives and the Senate a report specifying the account and amount of each rescission made pursuant to this section.". Title II of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 2133), provided the following "DEBT RESTRUCTURING "For the cost, as defined in section 502 of the Congressional Budget Act of 1974, of modifying loans and loan guarantees, as the President may determine, for which funds have been appropriated or otherwise made available for programs within the International Affairs Budget Function 150, including the cost of selling, reducing, or canceling amounts owed to the United States as a result of concessional loans made to eligible countries, pursuant to parts IV and V of the Foreign Assistance Act of 1961, and of modifying concessional credit agreements with least de veloped countries, as authorized under section 411 of the Agricultural Trade Development and Assistance Act of 1954, as amended, and concessional loans, guarantees and credit agreements. as authorized under section 572 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461), and of canceling amounts owed, as a result of loans or guarantees made pursuant to the Export-Import Bank Act of 1945, by countries that are eligible for debt reduction pursuant to title V of H.R. 3425 as enacted into law by section 1000(a)(5) of Public Law 106-113, $229,000,000, to remain available until expended Provided, That not less than $5,000,000 of the funds appropriated under this heading shall be made available to carry out the provisions of part V of the Foreign Assistance Act of 1961, and up to $20,000,000 of unobligated balances of funds available under this heading from prior year appropriations acts should be made available to carry out such provisions: Provided further. That funds appropriated or otherwise made available under this heading in this Act may be used by the Secretary of the Treasury to pay to the Heavily Indebted Poor Countries (HIPC Trust Fund administered by the International Bank for Reconstruction and Development amounts for the benefit of countries that are eligible for debt reduction pursuant to title V of HR 3425 as enacted into law by section 1000(a)(5) of Public Law 106-113: Provided further, That amounts paid to the HIPC Trust Fund may be used only to fund debt reduction under the enhanced HIPC initiative by "(1) the Inter-American Development Bank; "(2) the African Development Fund; "(3) the African Development Bank; and "(4) the Central American Bank for Economic Integration: "Provided further, That funds may not be paid to the HIPC Trust Fund for the benefit of any Country if the Secretary of State has credible evidence that the government of such country is engaged in a consistent pattern of gross violations of internationally recognized human rights or in military or civil conflict that undermines its ability to develop and implement measures to alleviate poverty and to devote adequate human and financial resources to that end: Providea further, That on the basis of final appropriations, the Secretary of the Treasury shall consult with the Committees on Appropriations concerning which countries and international financia tutions are expected to benefit from a United States contribution to the HIPC Trust Fund the fiscal year: Provided further, That the Secretary of the Treasury shall inform the SEC. 802.1243 FINDINGS AND PURPOSES. (a) FINDINGS.-The Congress finds the following: (1) It is the established policy of the United States to support and seek protection of tropical forests around the world. (2) Tropical forests provide a wide range of benefits to humankind by (A) harboring a major share of the Earth's biological and terrestrial resources, which are the basis for developing pharmaceutical products and revitalizing agricultural crops; (B) playing a critical role as carbon sinks in reducing greenhouse gases in the atmosphere, thus moderating potential global climate change; and (C) regulating hydrological cycles on which far-flung agricultural and coastal resources depend. (3) International negotiations and assistance programs to conserve forest resources have proliferated over the past decade, but the rapid rate of tropical deforestation continues unabated. (4) Developing countries with urgent needs for investment and capital for development have allocated a significant amount of their forests to logging concessions. (5) Poverty and economic pressures on the populations of developing countries have, over time, resulted in clearing of vast areas of forest for conversion to agriculture, which is often unsustainable in the poor soils underlying tropical forests. (6) Debt reduction can reduce economic pressures on developing countries and result in increased protection for tropical forests. (7) Finding economic benefits to local communities from sustainable uses of tropical forests is critical to the protection of tropical forests. (b) PURPOSES.-The purposes of this part are (1) to recognize the values received by United States citizens from protection of tropical forests; (2) to facilitate greater protection of tropical forests (and to give priority to protecting tropical forests with the highest levels of biodiversity and under the most severe threat) by pro Committees on Appropriations not less than 15 days in advance of the signature of an agreement by the United States to make payments to the HIPC Trust Fund of amounts for such countries and institutions: Provided further, That the Secretary of the Treasury may disburse funds designated for debt reduction through the HIPC Trust Fund only for the benefit of countries that "(a) have committed, for a period of 24 months, not to accept new market-rate loans from the international financial institution receiving debt repayment as a result of such disbursement, other than loans made by such institution to export-oriented commercial projects that generate foreign exchange which are generally referred to as 'enclave' loans; and "(b) have documented and demonstrated their commitment to redirect their budgetary resources from international debt repayments to programs to alleviate poverty and promote economic growth that are additional to or expand upon those previously available for such purposes: "Provided further, That any limitation of subsection (e) of section 411 of the Agricultural Trade Development and Assistance Act of 1954 shall not apply to funds appropriated under this heading: Provided further, That none of the funds made available under this heading in this or any other appropriations Acts shall be made available for Sudan or Burma unless the Secretary of the Treasury determines and notifies the Committees on Appropriations that a democratically elected government has taken office.". 1242 22 U.S.C. 2151 note. 1243 22 U.S.C. 2431. viding for the alleviation of debt in countries where tropical forests are located, thus allowing the use of additional resources to protect these critical resources and reduce economic pressures that have led to deforestation; (3) to ensure that resources freed from debt in such countries are targeted to protection of tropical forests and their associated values; and (4) to rechannel existing resources to facilitate the protection of tropical forests. SEC. 803.12 DEFINITIONS. (1) ADMINISTERING BODY.-The term "administering body" means the entity provided for in section 809(c). (2) APPROPRIATE CONGRESSIONAL COMMITTEES.-The term "appropriate congressional committees" means— (A) the Committee on International Relations and the Committee on Appropriations of the House of Representatives: and (B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. (3) BENEFICIARY COUNTRY.-The term "beneficiary country" means an eligible country with respect to which the authority of section 806 a(1), section 807(a)(1), or paragraph (1) or (2) of section 808(a) is exercised. (4) BOARD-The term "Board" means the board referred to in section 811. (5) DEVELOPING COUNTRY WITH A TROPICAL FOREST.-The term "developing country with a tropical forest" means (AD) a country that has a per capita income of $725 or less in 1994 United States dollars (commonly referred to as "low-income country"), as determined and adjusted on an annual basis by the International Bank for Reconstruction and Development in its World Development Report; or (ii) a country that has a per capita income of more than $725 but less than $8,956 in 1994 United States dollars (commonly referred to as "middle-income country"), as determined and adjusted on an annual basis by the International Bank for Reconstruction and Development in its World Development Report; and (B) a country that contains at least one tropical forest that is globally outstanding in terms of its biological diversity or represents one of the larger intact blocks of tropical forests left, on a regional, continental, or global scale. (6) ELIGIBLE COUNTRY.-The term "eligible country" means a country designated by the President in accordance with section 805. (7) TROPICAL FOREST AGREEMENT.-The term "Tropical Forest Agreement" or "Agreement" means a Tropical Forest Agreement provided for in section 809. (8) TROPICAL FOREST FACILITY.-The term "Tropical Forest Facility" or "Facility" means the Tropical Forest Facility established in the Department of the Treasury by section 804. (9) TROPICAL FOREST FUND.-The term "Tropical Forest Fund" or "Fund" means a Tropical Forest Fund provided for in section 810. SEC. 804.1245 ESTABLISHMENT OF THE FACILITY. There is established in the Department of the Treasury an entity to be known as the "Tropical Forest Facility" for the purpose of providing for the administration of debt reduction in accordance with this part. SEC. 805.1246 ELIGIBILITY FOR BENEFITS. (a) IN GENERAL.-To be eligible for benefits from the Facility under this part, a country shall be a developing country with a tropical forest (1) whose government meets the requirements applicable to Latin American or Caribbean countries under paragraphs (1) through (5) and (7) of section 703(a) of this Act; and (2) that has put in place 1247 investment reforms, as evidenced by the conclusion of a bilateral investment treaty with the United States, implementation of an investment sector loan with the Inter-American Development Bank, World Banksupported investment reforms, or other measures, as appropriate. (b) ELIGIBILITY DETERMINATIONS. (1) IN GENERAL.-Consistent with subsection (a), the President shall determine whether a country is eligible to receive benefits under this part. (2) CONGRESSIONAL NOTIFICATION.-The President shall notify the appropriate congressional committees of his intention to designate a country as an eligible country at least 15 days in advance of any formal determination. SEC. 806.1248 REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN ASSISTANCE ACT OF 1961. (a) AUTHORITY TO REDUCE DEBT.— (1) AUTHORITY.-The President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 1, of January 1, 1998, as a result of concessional loans made to an eligible country by the United States under part I of this Act, chapter 4 of part II of this Act, or predecessor foreign economic assistance legislation. (2) AUTHORIZATION OF APPROPRIATIONS. For the cost (as de- (B) $75,000,000 for fiscal year 2000; and (3) CERTAIN PROHIBITIONS INAPPLICABLE. 1245 22 U.S.C. 2431b. 1246 22 U.S.C. 2431c. 1247 Sec. 1 of Public Law 107-26 (115 Stat. 206) struck out "major" before "investment". 1248 22 U.S.C. 2431d. |