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Sec. 106.42 Energy, Private Voluntary Organizations, and Selected Development Activities.—(a)(1)(A) 43 The Congress finds that energy development and production are vital elements in the development process, that energy shortages in developing countries severely limit the development process in such countries, that two-thirds of the developing countries which import oil depend on it for at least 90 percent of the energy which their economies require, and that the dramatic increase in world oil prices since 1973 has resulted in considerable economic hardship for many developing countries. The Congress is concerned that the value and purpose of much of the assistance provided to developing countries under sections 103, 104, and 105 are undermined by the inability of many developing countries to satisfy their energy requirements. Unless the energy deficit of the developing countries can be narrowed by more fully exploiting indigenous sources of energy such as oil, natural gas, and coal, scarce foreign exchange will increasingly have to be diverted to oil imports, primarily to the detriment of long-term development and economic growth.

(B) 43 The Congress recognizes that many developing countries lack access to the financial resources and technology necessary to locate, explore, and develop indigenous energy resources.

(C) 43 The Congress declares that there is potential for at least a moderate increase by 1990 in the production of energy for commercial use in the developing countries which are not members of the Organization of Petroleum Exporting Countries. In addition, there is a compelling need for vigorous efforts to improve the available data on the location, scale, and commercial exploitability of potential oil, natural gas, and coal reserves in developing countries, especially those which are not members of the Organization of Petroleum Exporting Countries. The Congress further declares that there are many benefits to be gained by the developing countries and by the United States and other developed countries through expanded efforts to expedite the location, exploration, and development of potential sources of energy in developing countries. These benefits include, but are not limited to, the following:

(i) 43 The world's energy supply would be increased and the fear of abrupt depletion would be lessened with new energy production. This could have a positive impact upon energy prices in international markets as well as a positive effect upon the balance of payments problems of many developing countries.

42 22 U.S.C. 2151d. Sec. 106, as added by Public Law 94-161 (89 Stat. 849), was amended by sec. 104 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 360) by redesignating subsecs. (a) and (b) as (c) and (d) and by adding new subsecs. (a) and (b). Sec. 304(a) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3146) substituted the current section heading in lieu of "Technical Assistance, Energy, Research, Reconstruction, and Selected Development Activities". A prior version of sec. 106 (added in 1973 by Public Law 93-189) had also been repealed by Public Law 94-161.

See also the Energy Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776), particularly title XII, as it relates to the export of renewable energy technologies, and title XIII, as it relates to the export of clean coal technology. See Legislation on Foreign Relations Through 2004, vol. IV, sec. L.

43 Sec. 304(b) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3146) redesignated paras. (1), (2), (3), and (4) of subsec. (a) as subparas. (A), (B), (C), and (D), respectively; redesignated subparas. (A), (B), and (C) of former para. (3) as clauses (i), (ii), and (iii), respectively; and added a new para. (2).

(ii) 43 Diversification of the world's supplies of energy from fossil fuels would make all countries, developing and developed, less susceptible to supply interruptions and arbitrary production and pricing policies.

(iii) 43 Even a moderate increase in energy production in the developing countries would improve their ability to expand commercial trade, foreign investment, and technology transfer possibilities with the United States and other developed countries.

(D) 43 Assistance for the production of energy from indigenous resources, as authorized by subsection (b) of this section, would be of direct benefit to the poor in developing countries because of the overwhelming impact of imported energy costs upon the lives of the poor and their ability to participate in development.

(2) 43 The Congress also finds that energy production from renewable, decentralized sources and energy conservation are vital elements in the development process. Inadequate access by the poor to energy sources as well as the prospect of depleted fossil fuel reserves and higher energy prices require an enhanced effort to expand the energy resources of developing countries through greater emphasis on renewable sources. Renewable and decentralized energy technologies have particular applicability for the poor, especially in rural areas.

(b) 42 (1)44 In order to help developing countries alleviate their energy problems by improving their ability to use indigenous energy resources to produce the energy needed by their economies, the President is authorized to furnish assistance, on such terms and conditions as he may determine, to enable such countries to prepare for and undertake development of their energy resources. Such assistance may include data collection and analysis, the training of skilled personnel, research on and development of suitable energy sources, and pilot projects to test new methods of energy production.

(2) 44 The President is authorized to furnish assistance under this chapter for cooperative programs with developing countries in energy production and conservation through research on and development and use of small-scale, decentralized, renewable energy sources for rural areas carried out as integral parts of rural development efforts in accordance with section 103 of this Act. Such programs shall also be directed toward the earliest practicable development and use of energy technologies which are environmentally acceptable, require minimum capital investment, are most acceptable to and affordable by the people using them, are simple and inexpensive to use and maintain, and are transferable from one region of the world to another. Such programs may include research on and the development, demonstration, and application of suitable

44 Sec. 304(c) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3146) redesignated paras. (1) and (2) of subsec. (b) as subparas. (A) and B, respectively, and added a new para. (2). Subsequently, sec. 1211(a)(2) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 279) struck out subpara, designation "(A)", and text of subpara. (B). Subpara. (B) previously read as follows:

B. Of the funds made available to carry out this section, up to $7,000,000 for the fiscal year 1981 shall be used for purposes of paragraph (A) to facilitate geological and geophysical survey work to locate potential oil, natural gas, and coal reserves and to encourage exploration for potential oil, natural gas, and coal reserves in developing countries which are not members of the Organization of Petroleum Exporting Countries.".

energy technologies (including use of wood); analysis of energy uses, needs, and resources; training and institutional development; and scientific interchange.

(c) 45 The agency primarily responsible for administering this part and the Department of Energy shall coordinate with one another, to the maximum extent possible, the planning and implementation of energy programs under this chapter.

(d) 45 The President is authorized to furnish assistance, on such terms and conditions as he may determine, for the following activities, to the extent that such activities are not authorized by sections 103, 104, and 105 of this Act:

(1) programs of technical cooperation and development, particularly the development efforts of United States private and voluntary agencies and regional and international development organizations;

(2) 46 programs of research into, and evaluation of, the process of economic development in less developed countries and areas, into the factors affecting the relative success and costs of development activities, and into the means, techniques, and such other aspects of development assistance as the President may determine in order to render such assistance of increasing value and benefit;

(3) 46 programs of reconstruction following natural or manmade disasters and programs of disaster preparedness,47 including the prediction of and contingency planning for natural disasters abroad;

(4)46 programs designed to help solve special development problems in the poorest countries and to make possible proper utilization of infrastructure and related projects funded with earlier United States assistance; and

(5) 46 programs of urban development, with particular emphasis on small, labor intensive enterprises, marketing systems for small producers, and financial and other institutions which enable the urban poor to participate in the economic and social development of their country.

(e) 45 (1) There are authorized to be appropriated to the President for purposes of this section, in addition to funds otherwise available for such purposes, $207,000,000 for fiscal year 1986 and $207,000,000 for fiscal year 1987.48

45 Sec. 304 of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3146) redesignated subsec. (c) as subsec. (d), amended former subsec. (d) and redesignated it as subsec. (e), and added a new subsec. (c).

46 Sec. 104(b)(1) of the International Development Cooperation Act of 1979 (Public Law 9653; 93 Stat. 360) struck out para. (2), which concerned various programs designed to alleviate energy problems experienced by developing countries, and redesignated paras. (3) through (6) as paras. (2) through (5), respectively.

47 Sec. 304(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1533) added the reference to the program of disaster preparedness.

48 Sec. 309(b) of the International Security and Development Act of 1985 (Public Law 99-83; 99 Stat. 190) added the authorization figures for fiscal years 1986 and 1987. Authorizations for recent years included the following: fiscal year 1976-$99,550,000; fiscal year 1977$104,500,000; fiscal year 1978-$105,000,000; fiscal year 1979-$126,244,000; fiscal year 1980$125,000,000; fiscal year 1981-$140,000,000; fiscal year 1982-$147,200,000; fiscal year 1983– $147,200,000; fiscal year 1984-$160,000,000; fiscal year 1985-no authorization; fiscal years 1988 through 2005-no authorization.

Sec. 402 of the Microenterprise for Self-Reliance and International Anti-Corruption Act of 2000 (Public Law 106–309; 114 Stat. 1097), however, provided the following:

(2) Amounts appropriated under this section are authorized to remain available until expended.

(f) 49 Of the amounts authorized to be appropriated to carry out this chapter $5,000,000 for fiscal year 1986 and $5,000,000 for fiscal year 1987 shall be used to finance cooperative projects among the United States, Israel, and developing countries.

Sec. 107.50 Appropriate Technology.-(a) In carrying out activities under this chapter, the President shall place special emphasis on the use of relatively smaller, cost-saving, labor-using technologies that are generally most appropriate for the small farms, small businesses, and small incomes of the poor.

(b) Funds made available to carry out this chapter should be used to the extent practicable for activities in the field of appropriate technology, including support of an expanded and coordinated private effort to promote the development and dissemination of appropriate technology in developing countries.

[SEC. 108.51 MICROENTERPRISE DEVELOPMENT CREDITS. * * * [Transferred and redesignated as sec. 256-2004]]

"SEC. 402. FUNDING OF CERTAIN ENVIRONMENTAL ASSISTANCE ACTIVITIES OF USAID.

a) ALLOCATION OF FUNDS FOR CERTAIN ENVIRONMENTAL ACTIVITIES.-Of the amounts authorized to be appropriated for the fiscal year 2001 to carry out chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.; relating to development assistance), there sauthorized to be available at least $60,200,000 to carry out activities of the type carried out by the Global Environment Center of the United States Agency for International Development during fiscal year 2000.

b) ALLOCATION FOR WATER AND COASTAL RESOURCES.-Of the amounts made available under subsection (a), at least $2,500,000 shall be available for water and coastal resources acuvities under the natural resources management function specified in that subsection.".

Sec. 105 of Public Law 96-53 struck out language in subsec. (e) which provided $30,000,000 during the period July 1, 1975, to Sept. 3, 1977, for reimbursement to private voluntary agencies of the United States for costs incurred with respect to the shipment of food and nonfood commodities provided through private donations.

*Sec. 307(b) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190) added subsec. (f).

22 U.S.C. 2151e. Sec. 107, as added by sec. 306 of Public Law 94-161, was amended and restated by sec. 107 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 947).

Sec. 4 of the Microenterprise Results and Accountability Act of 2004 (Public Law 108-484; 118 Stat. 3922) moved sec. 108 from chapter 1 of part I to title VI of chapter 2 of part I, and redesignated it as sec. 256.

An earlier sec. 108 was added by the FA Act of 1973 (Public Law 93-189) and repealed by sec 102g 2 K)(i) of the International Development and Food Assistance Act of 1978 (92 Stat.

Sec. 109.52 Transfer of Funds.-Whenever 53 the President determines it to be necessary for the purposes of this chapter, not to exceed 15 per centum of the funds made available for any provision of this chapter may be transferred to, and consolidated with, the funds made available for any other provision of this chapter, and may be used for any of the purposes for which such funds may be used, except that the total in the provision for the benefit of which the transfer is made shall not be increased by more than 25 per centum of the amount of funds made available for such provision. The authority of sections 610(a) and 614(a) of this Act may not be used to transfer funds made available under this chapter for use for purposes of any other provision of this Act except that the authority of such sections may be used to transfer for the purposes of section 667 not to exceed five per centum of the amount of funds made available for section 667(a)(1).54

Sec. 110.55 Cost-Sharing and Funding Limits.—No assistance shall be furnished by the United States Government to a country under sections 103 through 106 of this Act until the country provides assurances to the President, and the President is sat

52 22 U.S.C. 2151g. Sec. 109 was added by sec. 2(3) of the FA Act of 1973.

Sec. 509 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following:

"TRANSFERS

"SEC. 509. (a)(1) LIMITATION ON TRANSFERS BETWEEN AGENCIES.-None of the funds made available by this Act may be transferred to any department, agency, or instrumentality of the United States Government, except pursuant to a transfer made by, or transfer authority provided in, this Act or any other appropriation Act.

"(2) Notwithstanding paragraph (1), in addition to transfers made by, or authorized elsewhere in, this Act, funds appropriated by this Act to carry out the purposes of the Foreign Assistance Act of 1961 may be allocated or transferred to agencies of the United States Government pursuant to the provisions of sections 109, 610, and 632 of the Foreign Assistance Act of 1961.

"(b) TRANSFERS BETWEEN ACCOUNTS.-None of the funds made available by this Act may be obligated under an appropriation account to which they were not appropriated, except for transfers specifically provided for in this Act, unless the President, not less than 5 days prior to the exercise of any authority contained in the Foreign Assistance Act of 1961 to transfer funds, consults with and provides a written policy justification to the Committees on Appropriations of the House of Representatives and the Senate.

"(c) AUDIT OF INTER-AGENCY TRANSFERS.-Any agreement for the transfer or allocation of funds appropriated by this Act, or prior Acts, entered into between the United States Agency for International Development and another agency of the United States Government under the authority of section 632(a) of the Foreign Assistance Act of 1961 or any comparable provision of law, shall expressly provide that the Office of the Inspector General for the agency receiving the transfer or allocation of such funds shall perform periodic program and financial audits of the use of such funds: Provided, That funds transferred under such authority may be made available for the cost of such audits.".

See also in that Act, title II, para. relating to operating expenses of the USAID.

53 Sec. 102(g)(2)(K)(ii) of the International Development and Food Assistance Act of 1978 (92 Stat. 943) struck out "Notwithstanding sec. 108 of this Act, whenever" and inserted in lieu thereof "Whenever".

54 Sec. 129(b) of the International Development and Food Assistance Act of 1977 (91 Stat. 543) added the words to this point beginning with "except that the authority of such sections * * *". 55 22 U.S.C. 2151h. Sec. 2(3) of the FA Act of 1973 added sec. 110. Sec. 1211(a)(3) of the International Security and Development Cooperation Act of 1985 struck out subsec. (b) and struck out an "(a)" designation from the remaining text. Subsec. (b) previously read as follows:

"No grant assistance shall be disbursed by the United States Government under sections 103 through 106 of this Act for a project, for a period exceeding thirty-six consecutive months, without further justification satisfactory to the Congress and efforts being made to obtain sources of financing within that country and from other foreign countries and multilateral organizations.".

The initial phrase of subsec. (b), which had been added by Public Law 95-88 (91 Stat. 535), was struck by sec. 112(b)(2) of the International Development and Food Assistance Act of 1978 (92 Stat. 949). It previously read as follows:

"Except for grants to countries determined to be relatively least developed based on the United Nations Conference on Trade and Development list of 'relatively least developed countries',".

See also in this Act, sec. 124(d).

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