“A bill to promote United States and allied energy and mineral security, and for other purposes.”
No CRS summary available for this bill.
This section defines terms used in the Act, including appropriate congressional committees (the Senate and House committees on Foreign Relations/Foreign Affairs, Finance/Ways and Means, and Appropriations); council agency; critical mineral (any mineral on the list required by section 7002(c)(3) of the Energy Act of 2020 on or after January 1, 2026); Director for Energy Security Pacts; Energy Security Pact; Energy Security Pacts Council; partner country; Secretary (of State); and Under Secretary (of State for Economic Growth, Energy, and the Environment).
This section authorizes the Secretary to establish multiyear Energy Security Pacts with partner countries to coordinate assistance that enhances U.S. and partner energy and economic security, including by countering economic coercion through diversification of critical mineral and energy supply chains. It makes available amounts authorized to be appropriated for FY2026 or any subsequent fiscal year under the National Security Investment Programs heading (including the Economic Resilience Initiative) and permits transfers of such funds to the United States Trade and Development Agency, Millennium Challenge Corporation, United States International Development Finance Corporation accounts, and Export-Import Bank Program Account, subject to prior consultation with the Senate and House Appropriations, Foreign Relations, and Foreign Affairs Committees and the regular notification procedures of those committees. The section also authorizes the Director for Energy Security Pacts to enter contracts for technical support, make grants to eligible partner countries for administrative or technical capacity building, and lead Country Pact Teams. It prohibits the use of funds for military assistance or training, projects likely to cause substantial U.S. job losses or production displacement, projects likely to cause significant environmental, health, or safety hazards, or assistance to entities in which a senior U.S. government official or immediate family member holds an ownership or managerial interest, and requires compliance with the Foreign Aid Transparency and Accountability Act of 2016 for all pacts and associated activities.
This section establishes the Office of Energy Security Pacts within the Department of State not later than 180 days after enactment, to be headed by a Director for Energy Security Pacts appointed by the Secretary. The Director is responsible for coordinating and implementing Energy Security Pacts, including drafting the Secretary’s contribution to the strategy required by section 7030(d) of the Further Consolidated Appropriations Act, 2024, leading pact development and negotiation, receiving solicited and unsolicited proposals, signing interagency agreements and transferring funds, and coordinating with allies, partners, and multilateral fora. The section requires designation of a Country Pact Team for each pact, authorizes detailing and direct appointment of personnel with relevant expertise, mandates annual reports to congressional committees and the Executive Office of the President for 5 years describing activities and obstacles, and terminates authority to enter new pacts after 15 years and the Office, Director position, and Energy Security Pacts Council after the final pact expires.
This section establishes the goals, approval process, eligibility criteria, and required elements of Energy Security Pacts. It directs the Director for Energy Security Pacts, in collaboration with the Energy Security Pacts Council and the partner country, to conduct a constraints analysis identifying energy sector and supply-chain deficiencies before Pact approval by the Secretary, and requires notification to and consultation with the appropriate congressional committees, transmission of the Pact text, and an in-person briefing at least 30 days prior to entry. A country is eligible only if its per capita income does not exceed the World Bank’s loan threshold (or it qualifies under the International Bank for Reconstruction and Development or International Development Association graduation process), it is determined to be strategically or commercially important, it demonstrates implementation capacity and commitment, and it is not a foreign country of concern. Each Pact must incorporate a constraints analysis, integration with the partner country’s national economic development strategy, specific objectives for increased energy production and access, economic growth, and critical minerals infrastructure, quantitative benchmarks, a multiyear financial plan estimating contributions from council agencies and other sources, oversight and transparency measures, competitive procurement procedures, and a sustainability strategy after Pact expiration.
This section establishes the Energy Security Pacts Council not later than 90 days after enactment to coordinate and implement Energy Security Pacts. The Council is chaired by the Secretary and composed of the principal officers of 11 specified executive departments and agencies—including the Department of Energy, Department of State, Department of Defense, and Millennium Challenge Corporation—plus any others the President determines appropriate. It must meet at least quarterly, comply with the Government in the Sunshine Act, and carry out duties that include coordinating interagency activities, making annual recommendations to the Director for Energy Security Pacts on prioritization of countries for pact negotiations (taking into account National Security Council and presidential priorities), and improving collaboration to advance energy security and U.S. national security interests abroad.
This section directs the Comptroller General of the United States to submit to Congress an evaluation of the efficiency and development impact of projects supported by an Energy Security Pact. The first report is due not later than 2 years after the date of enactment of this Act, with annual reports required thereafter until the final Energy Security Pact expires.