S. 2508 — what changed
Energize Africa Act of 2014
From Introduced in Senate to Reported in Senate. 6 sections amended and 1 added between Introduced in Senate and Reported in Senate.
Sec. 101 Purpose
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The purpose of this title is to assist assistencourage the efforts of countries in sub-Saharan Africa to improve access to affordable and reliable power in order to unlock the potential for economic growth and promote development, job creation, food security, improved health, educational, and environmental outcomes, and reduce poverty.
Sec. 102 Statement of policy
Congress declares that it is the policy of the United States to partner, consult, and coordinate with the governments of sub-Saharan African countries, international financial institutions, African regional economic communities, and the private sector, in a concerted effort to—
promote first-time access to power and power services for at least 50,000,000 people in sub-Saharan Africa by 2020 in both urban and rural areas;
encourage the installation of at least 20,000 additional megawatts of electrical power in sub-Saharan Africa by 2020 using a broad mix of energy options to help reduce poverty, promote sustainable development, and drive economic growth;
promote reliable, affordable, and sustainable power in urban areas (including small urban areas) to promote economic growth and job creation;
promote efficient institutional platforms and financing to provide electrical service to rural and underserved populations;
encourage the necessary in-country reforms to make such expansion of power access possible;
promote reforms of power production, delivery, and pricing, as well as regulatory reforms and transparency, to support long-term, market-based power generation and distribution; and
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promote policies to displace kerosene lighting with other technologies.technologies.; and
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promote an all-of-the-above energy development strategy for sub-Saharan Africa that includes the use of oil, natural gas, coal, hydroelectric, wind, solar, and geothermal power, and other sources of energy.
Sec. 103 Development of comprehensive, multiyear strategy
Strategy required—
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In general— The President shall establish a comprehensive, integrated, multiyear strategy to assist encourage the efforts of countries in sub-Saharan Africa to implement national power strategies and develop an appropriate mix of power solutions, including renewable energy, to provide access to sufficient reliable, affordable, and sustainable power in order to reduce poverty and drive economic growth and job creation.
Flexibility and responsiveness— The President shall ensure that the strategy required by paragraph (1) maintains sufficient flexibility for and remains responsive to technological innovation in the power sector.
Report required— Not later than 180 days after the date of the enactment of this Act, the President shall submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives a report that contains the strategy required by subsection (a) and includes a discussion of the following elements:
The general and specific objectives of the strategy.
The criteria for determining the success of the strategy.
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A description of the manner in which the strategy will support efforts of countries receiving assistance pursuant to the strategy strategyin sub-Saharan Africa to improve access to power using a broad mix of energy options and improve the affordability and reliability of power in sub-Saharan Africa.
A general description of regional and country plans and significant local efforts, as appropriate, in sub-Saharan Africa to—
increase power production;
strengthen electrical transmission and distribution infrastructure;
provide for regulatory reform and transparent and accountable governance and oversight;
improve the reliability of power;
maintain the affordability of power;
maximize the financial sustainability of the power sector; and
improve access to power.
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A description of plans to support efforts of countries receiving assistance pursuant to the strategy in sub-Saharan Africa to increase access to power in urban and rural areas, including a description of plans designed to address commercial, industrial, and residential needs.
A description of plans to support efforts of such countries to reduce waste and corruption and improve existing power generation through the use of a broad power mix, including fossil fuel and renewable energy, distributed generation models, and other technological innovations, as appropriate.
An analysis of existing mechanisms for ensuring, and recommendations to promote—
commercial cost recovery in countries receiving assistance pursuant to the strategy;
commercialization of electric service through distribution service providers to consumers;
improvements in revenue cycle management, power pricing, and fees assessed for service contracts and connections;
reductions in technical losses in the transmission systems and commercial losses resulting from inefficiencies, including inefficiencies in the billing and collection cycle, theft, and manipulation of meter reading and billing systems; and
access to power, including recommendations on the creation of new service provider models that mobilize community participation in the provision of power services.
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A description of United States Government efforts to support the efforts of countries receiving assistance pursuant to the strategy in sub-Saharan Africa to leverage private sector resources and public sector financing pursuant to the strategy.
A description of the reforms being undertaken or planned by countries in sub-Saharan Africa to ensure the long-term economic viability of power projects and to increase access to power, including—
reforms designed to allow third parties to connect power generation to the grid affordably, quickly, and without undue regulatory burdens;
policies to ensure there is a viable, adequately resourced, independent, and capable utility regulator;
strategies to ensure utilities become or remain creditworthy;
regulations that permit the participation of independent power producers and private-public partnerships;
policies that encourage private investment in power generation;
policies that ensure compensation for power provided to the electrical grid by on-site producers;
policies to unbundle power services; and
regulations to eliminate conflicts of interest in the utility sector.
A description of plans to ensure—
local consultation, as appropriate, in the planning, long-term maintenance, and management of investments designed to increase access to power in sub-Saharan Africa; and
that such investments are sustainable and transparent, including through the provision of technical assistance and training.
An identification of the relevant United States Government departments and agencies that will be involved in carrying out the strategy.
A description of the level and distribution of resources that will be dedicated on an annual basis among those departments and agencies.
A description of the role of each such department or agency and the types of programs that each such department or agency will conduct.
A description of the mechanisms that will be used to coordinate the efforts of United States Government departments and agencies in carrying out the strategy to avoid duplication of efforts, enhance coordination, and ensure that each such department or agency conducts programs primarily in the areas in which that department or agency has the greatest expertise, technical capabilities, and potential for success.
A description of the mechanisms to be established for—
monitoring and evaluating increased access to, and reliability and affordability of, power in sub-Saharan Africa for individuals, communities, and businesses;
maximizing the financial sustainability of power generation, transmission, and distribution in sub-Saharan Africa;
sharing best practices among relevant United States Government departments and agencies and with other countries and institutions participating in efforts to increase access to power in sub-Saharan Africa;
establishing metrics to demonstrate progress on meeting goals relating to access to power, power generation, and distribution in sub-Saharan Africa; and
terminating unsuccessful programs.
A description of the engagement plan for working with local communities benefitting from or affected by projects carried out pursuant to the strategy.
A description of the mechanisms that will be used to ensure greater coordination between the United States and foreign governments, international organizations, African regional economic communities, international financial institutions, international fora such as the G–8 and G–20, and private sector and civil society organizations.
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An outline of how the President intends to partner with foreign governments, the World Bank Group, the African Development Bank, the private sector, and other development partners to assist assistencourage sub-Saharan African countries to conduct project studies and facilitate project development.
A description of how the President intends to help facilitate transnational and regional electrification projects where appropriate.
A description of how the President intends to help sub-Saharan countries use new or potential fossil fuel and other resources in order to provide power to their citizens.
A description of how the President intends to promote trade in electrical equipment with countries in sub-Saharan Africa, including a description of how the government of each country receiving assistance pursuant to the strategy—
plans to lower or eliminate import tariffs or other taxes for energy and other power production and distribution technologies destined for sub-Saharan Africa, including equipment used to provide energy access, including solar lanterns, solar home systems, and micro and mini grids; and
plans to protect the intellectual property of companies designing and manufacturing products that can be used to provide energy access in sub-Saharan Africa.
A description of how the President intends to work with the African Development Bank and other partners to increase the capacity of sub-Saharan African utilities to—
develop standardized power purchase agreements and other contracts to streamline project development; and
negotiate and monitor compliance with power purchase agreements and other contracts entered into with the private sector.
A description of how the President intends to encourage the growth of distributed renewable energy markets in sub-Saharan Africa, including off-grid lighting and power, that includes—
a country-by-country analysis of the state of distributed renewable energy in sub-Saharan Africa, including off-grid lighting and power;
a description of market barriers to the deployment of distributed renewable energy technologies both on- and off-grid in sub-Saharan Africa;
measures United States Government departments and agencies, including the United States Agency for International Development and the Overseas Private Investment Corporation, can take—
to overcome or eliminate market barriers or enhance financing opportunities for distributed renewable energy solutions in sub-Saharan Africa; and
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to assist assistencourage multilateral organizations such as the World Bank Group in efforts to eliminate such barriers or enhance such opportunities;
the amount and kind of financial support and financing provided to participants in distributed energy markets by the United States Government, international financial institutions, and other international organizations;
an analysis of the efficacy of efforts by the Overseas Private Investment Corporation and the United States Agency for International Development to facilitate the financing of the importation, distribution, sale, leasing, or marketing of distributed renewable energy technologies; and
a description of how bolstering distributed renewable energy can enhance the overall effort to increase power access in sub-Saharan Africa.
Any other issues the President determines are relevant to the strategy.
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African power advisory Interagency working group—
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Establishment—In general— For the purposes of developing the strategy required by subsection (a), the The President shall may, as appropriate, establish an African Power Advisory Interagency Working Group to advise on coordinate the development and implementation activities of relevant United States Government departments and agencies involved in carrying out the strategy and report required by this section and assistance provided pursuant to under this section.
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Membership—Functions— The African Power Advisory Interagency Working Group shall be composed may, among other things, seek to coordinate the activities of 12 members appointed by the President, including United States Government departments and agencies involved in implementing the following:strategy, ensure efficient and effective coordination between participating departments and agencies, facilitate information sharing, and coordinate partnerships between United States Government, the private sector, and other development partners to achieve the goals of the strategy.
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African power advisory group—
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Establishment— For the purposes of developing the strategy required by subsection (a), the President shall establish a African Power Advisory Group to advise on the development and implementation of the strategy and report required by this section and assistance support provided pursuant to this section.
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Membership— The African Power Advisory Group shall be composed of 12 13 members appointed by the President, including the following:
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was (4)(3)(3)
The Coordinator of the President’s Power Africa Initiative.
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was (4)(3)(4)
Seven individuals from the power sector, of whom—
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was (4)(3)(4)(2)
at least one shall have experience in the fossil fuel power sector;
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was (4)(3)(4)(3)
at least one shall have experience with the rural electrical cooperatives;
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was (4)(3)(4)(4)
at least one shall have experience in the renewable energy sector; and
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was (4)(3)(4)(5)
at least one shall have experience in the distributed generation sector.
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was (4)(3)(5)
Three individuals, other than individuals described in subparagraph (B), who shall have experience in working with the business community in Africa or with governments of countries in Africa.
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was (4)(3)(6)
One individual who shall have experience with utility regulation.
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The official designated pursuant to section 1206(d) of the National Defense Authorization Act for Fiscal Year 2014 (Public law 113–66; 127 Stat. 902; 22 U.S.C. 2151 note) to coordinate efforts to increase United States exports to Africa.
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Functions— The President shall call upon members of the African Power Advisory Group, either collectively or individually, to advise the President regarding the development and implementation of the strategy and report required by this section and assistancesupport provided pursuant to this section.
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Functions— The President shall call upon members of the African Power Advisory Group, either collectively or individually, to advise the President regarding the development and implementation of the strategy and report required by this section and assistance provided pursuant to this section.
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was (4)(5)
Meetings— The African Power Advisory Group shall meet not later than 60 days after the date of the enactment of this Act and not less frequently than annually thereafter.
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was (4)(6)
Federal advisory committee act— The African Power Advisory Group established under this section shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.).
Sec. 105 Prioritization of assistance for power projects in sub-Saharan Africa by the United States Agency for International Development
Loan guarantees— In pursuing the policy goals described in section 102, the Administrator of the United States Agency for International Development should prioritize loan guarantees to local financial institutions in sub-Saharan Africa, as appropriate, to—
facilitate the involvement of such institutions in power projects and markets, both on- and off-grid, in sub-Saharan Africa;
allow such institutions to partner with other investors to leverage expertise and increase the impact of such loan guarantees for energy access and power production projects in sub-Saharan Africa;
allow such institutions to partner with other investors to fund local research, development, and deployment of technology in order to specifically increase access to reliable, affordable, and sustainable power in sub-Saharan Africa; and
allow such institutions to fund the development of plans to increase distribution coverage, including off-grid projects and services in rural areas of sub-Saharan Africa.
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Grants— The Administrator shall should, as appropriate, prioritize assistance to—
support the implementation or development, as appropriate, of national, regional, and local energy and economically sustainable power policy plans in sub-Saharan Africa;
expand power access across sub-Saharan Africa, including specifically to the poorest populations and rural and isolated communities;
build the capacity of countries in sub-Saharan Africa to monitor and appropriately and transparently regulate the power sector and encourage private investment in power production and distribution; and
increase access to reliable, affordable, and sustainable power in sub-Saharan Africa, including the development of plans to increase power access in rural areas.
Effectiveness measurement— In providing the loan guarantees and assistance prioritized pursuant to this section, the Administrator shall use clear, accountable, and metric-based targets to measure the effectiveness of such guarantees and assistance in achieving the goals described in section 102.
Rule of construction— Nothing in this section shall be construed to authorize modifying or limiting the portfolio of the United States Agency for International Development in other developing regions.
Sec. 110 Prioritization of assistance for power projects in sub-Saharan Africa by the Millennium Challenge Corporation
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In general— Not later than 3 years after the date of the enactment of this Act, the President shall submit to the Committee on Foreign Relations of the Senate The Chief Executive Officer and the Committee on Foreign Affairs Board of the House Directors of Representatives a report on progress made toward achieving the policy goals described in section 102 that includes the following:Millennium Challenge Corporation should—
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A report on United States programs supporting implementation of policy and legislative changes leading assess, as appropriate, the extent to increased power generation and which insufficient access in sub-Saharan Africa, including a description of the number, type, to and status reliability of policy, regulatory, and legislative changes initiated or implemented as electricity is a result of programs funded or supported by the United States binding constraint on sustainable economic growth in countries in sub-Saharan Africa to support increased power generation and access after the date of the enactment of this Act.Africa; and
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A description of power projects receiving United States Government support and how such projects, including off-grid efforts, are intended to achieve the policy goals described in section 102.prioritize, as appropriate—
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the provision of assistance to support private and public sector efforts to increase access to and the reliability of electricity in such countries, including through on- and off-grid generation and electrical transmission and distribution projects;
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engagement with governments of such countries to assist in identifying and establishing legal, regulatory, policy, and institutional reforms related to power sector investments;
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consultation with independent power producers, public and private financial institutions, and other power sector stakeholders during project planning; and
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guidance, including in the design of project methodologies and performance metrics, as requested by other United States Government departments and agencies involved in activities authorized under this title.
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Rule of construction— Nothing in this section shall be construed to authorize modifying or limiting the assistance programs of the Millennium Challenge Corporation in other developing regions or sectors.
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For each project described in paragraph (2)—
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a description of how the project fits into, or encourages modifications of, the national energy plan of the country in which the project will be carried out, including encouraging regulatory reform in that country;
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an estimate of the total cost of the project to the consumer, the country in which the project will be carried out, and other investors;
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the amount of financing provided or guaranteed by the United States Government for the project;
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an estimate of United States Government resources for the project, itemized by funding source, including from the Overseas Private Investment Corporation, the United States Agency for International Development, the Department of the Treasury, or other appropriate United States Government departments and agencies;
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an estimate of the number of individuals, communities, businesses, schools, and health facilities that have gained power connections as a result of the project, with a description of how the reliability, affordability, and sustainability of power has been improved as of the date of the report; and
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an assessment of the increase in the number of people and businesses with access to power and in the operating electrical power capacity in megawatts as a result of the project between the date of the enactment of this Act and the date of the report.
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A description of any significant estimated non-economic effects of the efforts carried out pursuant to this Act.
Sec. 110.111 Progress report
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In general— Not later than 3 years after the date of the enactment of this Act, the President shall submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives a report on progress made toward achieving the policy goals described in section 102 that includes the following:
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A report on United States programs supporting implementation of policy and legislative changes leading to increased power generation and access in sub-Saharan Africa, including a description of the number, type, and status of policy, regulatory, and legislative changes initiated or implemented as a result of programs funded or supported by the United States in countries in sub-Saharan Africa to support increased power generation and access after the date of the enactment of this Act.
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A description of power projects receiving United States Government support and how such projects, including off-grid efforts, are intended to achieve the policy goals described in section 102.
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For each project described in paragraph (2)—
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a description of how the project fits into, or encourages modifications of, the national energy plan of the country in which the project will be carried out, including encouraging regulatory reform in that county;
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an estimate of the total cost of the project to the consumer, the country in which the project will be carried out, and other investors;
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the amount of financing provided or guaranteed by the United States Government for the project;
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an estimate of United States Government resources for the project, itemized by funding source, including from the Overseas Private Investment Corporation, the United States Agency for International Development, the Department of the Treasury, or other appropriate United States Government departments and agencies;
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an estimate of the number of individuals, communities, businesses, schools, and health facilities that have gained power connections as a result of the project, with a description of how the reliability, affordability, and sustainability of power has been improved as of the date of the report; and
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an assessment of the increase in the number of people and businesses with access to power and in the operating electrical power capacity in megawatts as a result of the project between the date of the enactment of this Act and the date of the report.
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A description of any significant estimated non-economic effects of the efforts carried out pursuant to this Act.
Sec. 207 Inspector General
In general— Section 8G(a) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—
in paragraph (2), by inserting “the Overseas Private Investment Corporation,” after “the National Science Foundation,”; and
in paragraph (4)—
in subparagraph (G), by striking “; and” and inserting a semicolon;
in subparagraph (H), by inserting “and” after the semicolon; and
by adding at the end the following:
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“(I) with respect to the Overseas Private Investment Corporation, such term means the Board of Directors of the Overseas Private Investment Corporation (established under section 233(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2193(b)));”2193(b));”
Conforming amendment— Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is amended by striking subsection (e).