Energy Security Pacts Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4392 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  2d Session
                                S. 4392

 To promote United States and allied energy and mineral security, and
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2026

Mr. Coons (for himself and Mr. Ricketts) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 To promote United States and allied energy and mineral security, and
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Security Pacts Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations, the
                Committee on Finance, and the Committee on
                Appropriations of the Senate; and
                    (B) the Committee on Foreign Affairs, the Committee
                on Ways and Means, and the Committee on Appropriations
                of the House of Representatives.
            (2) Council agency.--The term ``council agency'' means a
        department, agency, or organization described in section 6(c).
            (3) Critical mineral.--The term ``critical mineral'' means
        any mineral on the list of critical minerals required by
        section 7002(c)(3) of the Energy Act of 2020 (30 U.S.C.
        1606(c)(3)) on or after January 1, 2026.
            (4) Director for energy security pacts.--The term
        ``Director for Energy Security Pacts'' means the Director for
        Energy Security Pacts described in section 4.
            (5) Energy security pact.--The term ``Energy Security
        Pact'' means an Energy Security Pact described in section 3.
            (6) Energy security pacts council.--The term ``Energy
        Security Pacts Council'' means the Energy Security Pacts
        Council established under section 6.
            (7) Partner country.--The term ``partner country'' means a
        country eligible for participation in an Energy Security Pact.
            (8) Secretary.--The term ``Secretary'' means the Secretary
        of State.
            (9) Under secretary.--The term ``Under Secretary'' means
        the Under Secretary of State for Economic Growth, Energy, and
        the Environment.

SEC. 3. AUTHORITY AND FUNDING FOR ENERGY SECURITY PACTS.

    (a) In General.--The Secretary may establish multiyear agreements
(to be known as ``Energy Security Pacts'') with partner countries under
which the Secretary may coordinate and provide assistance to enhance
the energy and economic security and stability of the United States and
such partner countries, including through efforts to counter economic
coercion through the diversification of critical mineral and energy
supply chains.
    (b) Funding.--
            (1) Availability of amounts.--The Secretary may make
        available, from amounts authorized to be appropriated for
        fiscal year 2026 or any subsequent fiscal year under the
        heading ``National Security Investment Programs'' in Acts
        making appropriations for the Department of State, foreign
        operations, and related programs (including amounts authorized
        to be appropriated to the Economic Resilience Initiative),
        amounts for the purpose of establishing and implementing Energy
        Security Pacts.
            (2) Transfers.--Funds authorized to be made available
        pursuant to paragraph (1) may be transferred to, and merged
        with, funds appropriated for fiscal year 2026 or any subsequent
        fiscal year under the headings ``United States Trade and
        Development Agency'', ``Millennium Challenge Corporation'',
        ``United States International Development Finance-Corporate
        Capital Account'', ``United States International Development
        Finance-Program Account'', ``Development Finance Corporate
        Equity Investment Account'', and ``Export-Import Bank of the
        United States-Program Account'' to carry out the purpose
        described in paragraph (1).
            (3) Consultation and notification.--The transfer authority
        provided by this subsection is--
                    (A) in addition to any other transfer authority
                provided by law; and
                    (B) subject to--
                            (i) prior consultation with--
                                    (I) the Committee on Appropriations
                                and the Committee on Foreign Relations
                                of the Senate; and
                                    (II) the Committee on
                                Appropriations and the Committee on
                                Foreign Affairs of the House of
                                Representatives; and
                            (ii) the regular notification procedures of
                        such committees.
    (c) Assistance for the Development and Implementation of Pacts.--
The Director for Energy Security Pacts may--
            (1) enter into contracts for required technical support
        related to Energy Security Pacts;
            (2) make grants to partner countries that meet eligibility
        requirements for United States foreign assistance for the
        purpose of building the administrative or technical capacity
        necessary to facilitate the development and implementation of
        an Energy Security Pact between the United States and such
        country; and
            (3) lead Country Pact Teams, in accordance with section
        4(c), to carry out the implementation of Energy Security Pacts.
    (d) Limitations.--
            (1) Prohibition on military assistance and training.--
        Assistance under this section may not include military
        assistance or military training for a country.
            (2) Prohibition on assistance relating to united states job
        loss or production displacement.--Assistance under this section
        may not be provided for any project that is likely to cause a
        substantial loss of United States jobs or a substantial
        displacement of United States production.
            (3) Prohibition on assistance relating to environmental,
        health, or safety hazards.--Assistance under this section may
        not be provided for any project that is likely to cause a
        significant environmental, health, or safety hazard.
            (4) Foreign aid transparency and accountability act
        compliance.--None of the funds authorized to be appropriated or
        otherwise made available to carry out this Act may be obligated
        or expended for an Energy Security Pact unless the Secretary
        complies with the requirements of section 4 of the Foreign Aid
        Transparency and Accountability Act of 2016 (22 U.S.C. 2394c)
        with respect to the Pact and all activities associated with the
        Pact.
            (5) Prohibition on assistance for certain entities.--None
        of the funds authorized to be appropriated or otherwise made
        available to carry out this Act may be obligated or expended to
        provide any grant, contract, loan, or other financial
        assistance to an entity in which a senior United States
        Government official or an immediate family member (as defined
        in section 1128(j) of the Social Security Act (42 U.S.C. 1320a-
        7(j))) of such official holds any ownership interest or serves
        in any managerial, officer, director, or board capacity.
            (6) Other prohibition.--Assistance under this section may
        not be used in any manner otherwise prohibited by any provision
        of law.

SEC. 4. OFFICE OF ENERGY SECURITY PACTS.

    (a) Establishment.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall establish an Office of
Energy Security Pacts, which shall perform such functions related to
the administration, coordination, and implementation of Energy Security
Pacts as the Under Secretary may prescribe.
    (b) Director for Energy Security Pacts.--
            (1) In general.--The Office of Energy Security shall be led
        by a Director for Energy Security Pacts, who shall be--
                    (A) appointed by the Secretary; and
                    (B) responsible--
                            (i) to the Under Secretary for all matters
                        pertaining to the administration and
                        implementation of Energy Security Pacts; and
                            (ii) for such other related duties as the
                        Secretary may from time to time designate.
            (2) Responsibilities.--In addition to the responsibilities
        described in paragraph (1), the Director for Energy Security
        Pacts shall be responsible for supporting the coordination and
        implementation by the Department of State of the Economic
        Resilience Initiative and the Energy Security Pacts Council,
        including for all matters pertaining to the following:
                    (A) Drafting the contribution of the Secretary to
                the strategy required by section 7030(d) of the Further
                Consolidated Appropriations Act, 2024 (Public Law 118-
                47; 138 Stat. 782).
                    (B) Leading the development, negotiation, and
                management of all Energy Security Pacts.
                    (C) Consulting and coordinating with council
                agencies to develop prospective Energy Security Pacts
                and implement ongoing Energy Security Pacts, as
                appropriate.
                    (D) Serving as the recipient for--
                            (i) solicited proposals under Energy
                        Security Pacts; and
                            (ii) unsolicited proposals for projects to
                        be considered for inclusion in any Energy
                        Security Pact by national, regional, and local
                        governments and private corporations.
                    (E) Signing joint agency agreements on behalf of
                the Department of State, transferring or receiving
                appropriated funds from any department, agency, or
                independent establishment of the United States
                Government on behalf of the Department of State (with
                the consent of the head of such department, agency, or
                establishment) for the purpose of developing,
                implementing, or otherwise participating in an Energy
                Security Pact, including for use as a credit subsidy to
                provide loans.
                    (F) Coordinating with other donor entities,
                including countries that are allies and partners of the
                United States, the Forum on Resource Geostrategic
                Engagement of the Department of State, and other
                multilateral fora, for purposes of deconflicting,
                augmenting, and leveraging, as appropriate, Energy
                Security Pact workplans with the development and
                financing activities performed by others.
            (3) Annual report required.--Not less frequently than
        annually until the date that is 5 years after the date of the
        enactment of this Act, the Director for Energy Security Pacts
        shall submit to the appropriate congressional committees, the
        Executive Office of the President, the National Security
        Council, and the Secretary a report describing--
                    (A) the current status of activities authorized
                under this Act;
                    (B) any obstacles to the implementation of such
                activities; and
                    (C) any updates to the multiyear financial plan
                developed pursuant to section 5(d)(G).
    (c) Country Pact Teams.--
            (1) In general.--The Secretary, in consultation with the
        Under Secretary and relevant Federal departments and agencies,
        shall designate a Country Pact Team for each Energy Security
        Pact.
            (2) Leadership; duties.--Each Country Pact Team shall--
                    (A) be led by the Director for Energy Security
                Pacts, who shall regularly engage with the Energy
                Security Pacts Council on matters related to the Energy
                Security Pact; and
                    (B) manage the day-to-day activities related to the
                development, negotiation, implementation, and
                monitoring of the Pact.
    (d) Personnel.--
            (1) In general.--The Under Secretary or the Under
        Secretary's designee may--
                    (A) detail staff to heads of council agencies with
                relevant sectoral, financial, or regional expertise for
                the express purpose of supporting the negotiation or
                implementation of an Energy Security Pact;
                    (B) request from the heads of council agencies the
                detail of personnel to the Office of Energy Security
                Pacts with relevant sectoral, financial, or regional
                expertise, on a reimbursable basis, for the express
                purpose of supporting the negotiation or implementation
                of an Energy Security Pact; and
                    (C) appoint, without regard to the provisions of
                sections 3309 through 3318 of title 5, United States
                Code, candidates directly to positions in the
                competitive service, as defined in section 2102 of that
                title.
            (2) Detailed employees.--Any employee detailed pursuant to
        a request made under paragraph (1)(B) shall remain, for the
        purpose of preserving such employee's allowances, privileges,
        rights, seniority, and other benefits, an employee of the
        agency from which detailed.
    (e) Termination.--
            (1) New energy security pacts.--The authority to enter into
        new Energy Security Pacts shall terminate on the date that is
        15 years after the date of the enactment of this Act.
            (2) Office; director; council.--The Office of Energy
        Security Pacts, the position of Director for Energy Security
        Pacts, and the Energy Security Pacts Council shall terminate
        after the final Energy Security Pact expires.
    (f) Reports.--Not later than 180 days after the date of the
enactment of this Act, the Under Secretary shall submit to the
appropriate congressional committees a report that contains plans to
attract and retain diplomatic, policy, legal, and technical expertise
for civil service officers in the Office of Energy Security Pacts,
including career promotion tracks to supervisory and non-supervisory
GS-15 positions.

SEC. 5. APPROVAL, ELIGIBILITY, AND ELEMENTS OF ENERGY SECURITY PACTS.

    (a) Goal.--It shall be the goal of each Energy Security Pact to
increase reliable access to energy or electricity, including that
needed for production of critical minerals, for the United States and
the partner country to the Energy Security Pact, for the purpose of
stimulating economic growth, enabling follow-on private sector
investment, supporting the commercial competitiveness of United States
companies, or diversifying relevant supply chains.
    (b) Initial Requirements.--
            (1) Recommendation; analysis.--Before entering into an
        Energy Security Pact--
                    (A) the Pact shall be recommended by the Director
                for Energy Security Pacts and the Under Secretary and
                approved by the Secretary; and
                    (B) the Director for Energy Security Pacts, in
                collaboration with the Energy Security Pacts Council
                and partner country, shall conduct a constraints
                analysis that identifies insufficiencies in the energy
                sector and supply-chain segments needed to strengthen
                the partner country's energy security, consistent with
                United States energy security risks and commercial
                opportunities.
            (2) Congressional notification.--Not later than 30 days
        before entering into an Energy Security Pact, the Director for
        Energy Security Pacts shall--
                    (A) notify and consult with the appropriate
                congressional committees regarding such Pact;
                    (B) transmit to the appropriate congressional
                committees the text of such Pact; and
                    (C) provide to the appropriate congressional
                committees an in-person briefing regarding such Pact.
    (c) Eligibility.--A country is eligible for participation in an
Energy Security Pact if--
            (1)(A) the per capita income of the country is not greater
        than the World Bank's loan threshold; or
            (B) at the beginning of the year in which negotiations are
        initiated, the country is eligible for support from the World
        Bank's International Bank for Reconstruction and Development or
        International Development Association graduation process;
            (2) the country has been identified as strategically or
        commercially important for the United States by the Secretary
        or the President;
            (3) the Under Secretary determines that the country has the
        capacity and commitment to implement the Energy Security Pact;
        and
            (4) the country is not a foreign country of concern (as
        defined in section 10612(a) of the Research and Development,
        Competition, and Innovation Act (42 U.S.C. 19221(a))).
    (d) Energy Security Pact Elements.--
            (1) In general.--Each Energy Security Pact shall contain
        the following:
                    (A) The constraints analysis conducted under
                subsection (b)(1)(B).
                    (B) A demonstrated effort to integrate the national
                economic development strategy of the partner country.
                    (C) Specific objectives that the partner country
                and the United States expect to achieve during the term
                of the Energy Security Pact, including--
                            (i) increased energy production,
                        reliability, and affordability in the partner
                        country;
                            (ii) economic growth in the partner country
                        that may reduce the need for foreign
                        assistance;
                            (iii) improved access to energy, in
                        consultation with affected communities and
                        civil society; and
                            (iv) improved infrastructure that enables
                        access to critical minerals mining and
                        processing.
                    (D) The responsibilities of the partner country and
                the United States in the achievement of such
                objectives.
                    (E) Regular quantitative benchmarks to measure, as
                appropriate, progress toward achieving such objectives.
                    (F) An identification of the intended impact of the
                activities carried out in accordance with the Energy
                Security Pact.
                    (G) A multiyear financial plan, updated annually
                until the expiration of the term of the Energy Security
                Pact, that--
                            (i) estimates the amount of contributions,
                        commitments, and other participation to be
                        provided by council agencies, the partner
                        country, multilateral development banks, and
                        other development finance institutions as
                        applicable;
                            (ii) ensures that the Pact incorporates and
                        is complementary to development programs
                        administered by other Federal departments and
                        agencies, so that United States funds are used
                        to improve feasibility for private sector
                        investment to further development goals;
                            (iii) identifies proposed mechanisms to
                        implement the plan and provide oversight of the
                        plan; and
                            (iv) describes how the requirements
                        described in this subsection will be met,
                        including the role of the private sector in the
                        achievement of such requirements.
                    (H) As appropriate, a description of the current
                and potential participation of other donors, including
                council agencies or countries that are allies and
                partners of the United States, in the achievement of
                the objectives described in subparagraph (C).
                    (I) A description of how oversight and transparency
                of the foreign assistance provided through the Economic
                Resilience Initiative will be maintained.
                    (J) As appropriate, a process or processes for
                considering--
                            (i) solicited proposals under the Energy
                        Security Pact; and
                            (ii) unsolicited proposals by national,
                        regional, and local governments and private
                        corporations.
                    (K) A requirement that open, fair, competitive, and
                transparent procedures are used in the administration
                of grants or cooperative agreements or the procurement
                of goods and services for the accomplishment of
                objectives under the Energy Security Pact.
                    (L) The strategy of the partner country to sustain
                progress made toward achieving the objectives described
                in subparagraph (C) after expiration of the Energy
                Security Pact.
                    (M) A description of the role of council agencies
                in any design, implementation, and monitoring of
                programs and activities funded through the Energy
                Security Pact.
                    (N) A description of any contribution, as
                appropriate, from the partner country relative to its
                national budget and taking into account the prevailing
                economic conditions, toward meeting the objectives
                described in subparagraph (C).
            (2) Prohibition on taxation.--In addition to the elements
        described in paragraph (1), each Energy Security Pact shall
        contain a provision stating that assistance provided by the
        United States under the Energy Security Pact shall be exempt
        from taxation by the government of the partner country.
            (3) Energy sources.--An Energy Security Pact shall not
        exclude, as a matter of policy, any specific type of energy or
        power generation.
    (e) Notification Regarding Increase or Extension of Assistance.--
Not later than 15 days after making a determination and before
distributing funds to increase or extend assistance under an Energy
Security Pact with a partner country, the Secretary, acting through the
Director for Energy Security Pacts, shall submit to the appropriate
congressional committees a written notification that contains the
following:
            (1) A justification for the determination.
            (2) A detailed summary of the proposed increase in, or
        extension of, assistance under the Energy Security Pact.
            (3) A copy of the full text of the amendment to the Energy
        Security Pact.
    (f) Duration.--The duration of an Energy Security Pact may not
exceed 10 years.
    (g) Subsequent and Concurrent Pacts.--A partner country that has
entered into, and has in effect, an Energy Security Pact may enter
into, and concurrently have in effect, additional Energy Security
Pacts.
    (h) Rule of Construction.--Nothing in this section shall be
construed to alter, supersede, or otherwise affect any authorities,
restrictions, or eligibility requirements existing on the date of the
enactment of this Act applicable to foreign assistance programs
administered by any Federal department or agency, including
determinations regarding the eligibility of countries for such
assistance made pursuant to the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) or any other provision of law.

SEC. 6. ENERGY SECURITY PACTS COUNCIL.

    (a) Establishment.--Not later than 90 days after the date of the
enactment of this Act, the President shall establish an Energy Security
Pacts Council (in this section referred to as the ``Council'') to
coordinate and implement Energy Security Pacts.
    (b) Chairperson.--The Council shall be chaired by the Secretary.
    (c) Composition.--The Council shall be composed of principal
officers of executive departments from the following:
            (1) The United States International Development Finance
        Corporation.
            (2) The Department of Energy.
            (3) The United States Trade and Development Agency.
            (4) The Export-Import Bank of the United States.
            (5) The Department of Commerce.
            (6) The United States Trade Representative.
            (7) The Department of Defense.
            (8) The Department of State.
            (9) The Department of the Treasury.
            (10) The Millennium Challenge Corporation.
            (11) The Department of the Interior.
            (12) Any other Federal department, agency, or organization
        that the President determines to be appropriate.
    (d) Vacancies.--When there is a vacancy in the office of a
principal officer of an executive department, the individual acting in
the capacity of principal officer shall serve as a member of the
Council until a new principal officer of the executive department is
appointed.
    (e) Delegation.--The principal officer of an executive department
may delegate a senior official (as described in section 1(d) of the
State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(d)) or
following other relevant agency guidance) to serve on the Council, as
appropriate.
    (f) Meetings.--The Council shall meet not less frequently than
quarterly.
    (g) Duties.--The Council shall--
            (1) coordinate Energy Security Pact-related activities of
        the council agencies;
            (2) make annual recommendations to the Director for Energy
        Security Pacts, taking into account the stated priorities of
        the National Security Council and the President, regarding the
        prioritization of countries eligible for Energy Security Pact
        negotiation; and
            (3) make recommendations to improve interagency
        collaboration for purposes of promoting energy security and
        United States national security interests abroad.
    (h) Sunshine Act Compliance.--Meetings of the Council are subject
to section 552b of title 5, United States Code (commonly referred to as
the ``Government in the Sunshine Act'').

SEC. 7. EVALUATION BY GOVERNMENT ACCOUNTABILITY OFFICE.

    Not later than 2 years after the date of the enactment of this Act,
and annually thereafter until the final Energy Security Pact expires,
the Comptroller General of the United States shall submit to Congress
an evaluation of the efficiency and development impact of projects
supported by an Energy Security Pact.
                                 <all>