(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 providing 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. 803.1242 DEFINITIONS. As used in this part: (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. 1242 22 U.S.C. 2431a. (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 (A)(i) 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. 804.1243 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. 805.1244 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 1245 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. 1243 22 U.S.C. 2431b. 1244 22 U.S.C. 2431c. 1245 Sec. 1 of Public Law 107-26 (115 Stat. 206) struck out "major" before "investment". (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. 806.1246 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, 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 defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President (A) $25,000,000 for fiscal year 1999; (B) $75,000,000 for fiscal year 2000; and (3) CERTAIN PROHIBITIONS INAPPLICABLE. (A) IN GENERAL.-A reduction of debt pursuant to this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country. (B) ADDITIONAL REQUIREMENT.-The authority of this section may be exercised notwithstanding section 620(r) of this Act or section 321 of the International Development and Food Assistance Act of 1975. (b) IMPLEMENTATION OF DEBT REDUCTION. – (1) IN GENERAL.-Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) EXCHANGE OF OBLIGATIONS.— (A) IN GENERAL.-The Facility shall notify the agency primarily responsible for administering part I of this Act of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) ADDITIONAL REQUIREMENT.-At the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation for the country shall be established relating to the agreement, and the agency primarily responsible for administering part I of this Act shall make an adjustment in its accounts to reflect the debt reduction. 1246 22 U.S.C. 2431d. (c) ADDITIONAL TERMS AND CONDITIONS.-(1) 1247 The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 704(a)(1) of this Act: (A) 1247 The provisions relating to repayment of principal under section 705 of this Act. (B) 1247 The provisions relating to interest on new obligations under section 706 of this Act. (2) 1247 In addition to the application of the provisions relating to repayment of principal under section 705 of this Act to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Tropical Forest Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 706 of this Act. (d) 1248 AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS AFTER FISCAL YEAR 2001.-For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section or section 807, there are authorized to be appropriated to the President the following: (1) $50,000,000 for fiscal year 2002. (e) 1249 USE OF FUNDS TO CONDUCT PROGRAM AUDITS AND EVALUATIONS. Of the amounts made available to carry out this part for a fiscal year, $200,000 is authorized to be made available to carry out audits and evaluations of programs under this part, including personnel costs associated with such audits and evaluations. SEC. 807.1250 REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954. (a) AUTHORITY TO REDUCE DEBT. (1) AUTHORITY.-Notwithstanding any other provision of law, 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, 1998, as a result of any credits extended under title I of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a country eligible for benefits from the Facility. (2) AUTHORIZATION OF APPROPRIATIONS. 1247 Sec. 3(a) of Public Law 108-323 (118 Stat. 1218) struck out "The following" and inserted in lieu thereof "(1) The following"; redesignated paras. (1) and (2) as subparas. (A) and (B); and added a new para. (2). 1248 Sec. 2(a) of Public Law 107-26 (115 Stat. 206) added subsec. (d) through para. (3). Sec. 1 of Public Law 108 323 (118 Stat. 1218) added paras. (4), (5), and (6). 1249 Sec. 2 of Public Law 108 323 (118 Stat. 1218) added subsec. (e). 1250 22 U.S.C. 2431e. (A) IN GENERAL.-For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President (i) $25,000,000 for fiscal year 1999; (ii) $50,000,000 for fiscal year 2000; and (iii) $50,000,000 for fiscal year 2001. (B) LIMITATION.-The authority provided by this section shall be available only to the extent that appropriations for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of the modification of any debt pursuant to this section are made in advance. (b) IMPLEMENTATION OF DEBT REDUCTION. — (1) IN GENERAL.-Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) EXCHANGE OF OBLIGATIONS. — (A) IN GENERAL.-The Facility shall notify the Commodity Credit Corporation of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) ADDITIONAL REQUIREMENT.-At the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation shall be established for the country relating to the agreement, and the Commodity Credit Corporation shall make an adjustment in its accounts to reflect the debt reduction. (c) ADDITIONAL TERMS AND CONDITIONS.-(1) 1251 The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1738c): (A) 1251 The provisions relating to repayment of principal under section 605 of such Act. (B) 1251 The provisions relating to interest on new obligations under section 606 of such Act. (2) 1251 In addition to the application of the provisions relating to repayment of principal under section 605 of the Agricultural Trade. Development and Assistance Act of 1954 to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Tropical Forest Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 606 of such Act. 1251 Sec. 3(b) of Public Law 108-323 (118 Stat. 1219) struck out "The following" and inserted in lieu thereof "(1) The following"; redesignated paras. (1) and (2) as subparas. (A) and (B); and added a new para. (2). |