H.R. 5845 — Las Americas Energy Security Act

This section states congressional findings on the importance of energy security, including International Energy Agency definitions, global energy crises from Russia's invasion of Ukraine, climate change impacts documented by the Intergovernmental Panel on Climate Change and World Meteorological Organization, and risks from natural disasters, food insecurity, and economic shocks in Latin America and the Caribbean. It expresses 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 security. The section declares it to be the policy of the United States (1) to help the region meet short-term energy needs; (2) to promote energy security through accessible, competitive markets, diversified sources, and clean energy to reduce carbon emissions; (3) to encourage U.S. public and private investment in regional energy infrastructure consistent with absorptive capacity; (4) to facilitate exports of U.S. energy resources, technology, and expertise; and (5) to assist partner countries in developing regulatory and investment frameworks supporting energy security.

This section directs the Secretary of the Treasury, with the concurrence of the Secretary of State, to establish within 30 days of enactment a sovereign lending program for eligible Latin American and Caribbean partner countries to (1) support short-term energy needs; (2) fund projects transitioning to renewable or clean energy that reduce carbon emissions; (3) fund technical assistance ensuring a continuous pipeline of clean energy projects for U.S., Latin American, and Caribbean investment; (4) provide capital and financing enabling U.S. companies to invest in renewable energy projects in smaller and developing markets; and (5) finance purchases of battery solutions promoting reliable and affordable electricity prices. To receive a loan, eligible countries must submit applications detailing supported energy projects' economic and technical viability, private sector funding potential, net carbon impact, use of U.S. goods and services, energy market integration, equitable job creation, environmental and biodiversity impacts, and effects on marginalized communities, along with certification that no funds support entities owned by the governments of China, Russia, or other foreign adversaries. The Secretary of State must prioritize applicants sharing democratic values, human rights, and economic freedom (e.g., members of the Alliance for Development in Democracy—Dominican Republic, Costa Rica, Panama, and Ecuador—and the Caribbean Community (CARICOM)). Loans must be zero-interest for up to 30 years or low-interest concessional for up to 50 years, prohibit austerity measures increasing poverty or inequality, bar funds to adversaries, and include other terms as determined. The Secretaries of the Treasury and State must submit annual reports for five years (beginning one year after enactment) to specified House and Senate committees assessing program implementation, U.S. national security and economic interests, regional energy security efforts and challenges, agency leveraging opportunities, diplomatic commitments, and multilateral development bank coordination. The Secretary of the Treasury must conduct and report to the committees the results of an annual full audit of the program.

This section directs the Secretary of State, in consultation with the Secretary of Energy and other relevant federal departments and agencies, to prioritize and expedite U.S. support for eligible Latin American and Caribbean partner countries to increase energy security through (1) diplomatic and political support to facilitate cross-border infrastructure negotiations, enhance regulatory environments, and develop competitive energy markets; and (2) early- and late-stage project support to diversify energy sources and routes, integrate regional markets, and increase competition. It specifies project eligibility criteria, including improvements to electricity transmission and power generation prioritizing renewables or efficiency, energy storage or smart grids, enhanced access for underserved communities, location in eligible countries, and transparent implementation to mitigate corruption; and provides preferences for projects linking multiple countries, addressing climate impacts, enhancing resilience, promoting market integration, attracting non-U.S. funding, using U.S. goods and services, or stabilizing prices. The section identifies assistance providers, including diplomatic support from the Department of State, early-stage support from the Trade and Development Agency (in consultation with USAID and development banks), and late-stage support from relevant agencies. For these projects, it exempts the United States International Development Finance Corporation from restrictions on support in upper-middle-income or high-income economies under section 1412(c)(2) of the BUILD Act of 2018 (22 U.S.C. 9612(c)(2)), which currently limits such support in upper-middle-income less developed countries absent presidential certification; instead, support requires presidential certification to specified congressional committees that it furthers U.S. national economic or foreign policy interests and either produces significant developmental outcomes or benefits the poorest population or is necessary to counter strategic competitors securing leverage or sensitive infrastructure in U.S. allies or partners. (As background, the DFC mobilizes private capital for economic development in less developed countries, prioritizing low- and lower-middle-income economies.) It further requires the President to submit annual progress reports for seven years, beginning one year after enactment, to specified congressional committees describing identified projects and, for each, assistance provided, funding sources, expected benefits, and challenges encountered.