Indo-Pacific Strategic Energy Initiative Act
This bill requires and authorizes actions related to supporting energy projects in other countries, including projects to increase energy security in the Indo-Pacific region.
The Department of State must prioritize U.S. government effort in helping the governments of Japan, India, and other like-minded countries in the Indo-Pacific region to increase their energy security and reduce energy emissions, including through providing diplomatic and political support as necessary. The U.S. Trade and Development Agency must provide early-stage support for energy infrastructure projects in the Indo-Pacific region that promote the reduction of greenhouse gas and carbon dioxide emissions. The State Department, the Department of Commerce, and the Department of Energy must identify projects appropriate for such support.
The U.S. International Development Finance Corporation (1) may provide support for projects related to the importation of liquefied natural gas and the generation of low-emission energy, including projects owned by foreign government entities; and (2) may not prohibit or restrict support for a project on the basis of the type of energy involved.
The Export-Import Bank must establish a strategic energy portfolio focused on financing projects that may increase U.S. energy exports and are related to the development or construction of (1) liquefied natural gas import terminals, (2) carbon capture and storage, (3) blue hydrogen infrastructure, or (4) other low-emission energy infrastructure.
To provide support for energy infrastructure projects in the Indo-
                Pacific region, 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 ``Indo-Pacific Strategic Energy 
Initiative Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States currently has an approximately 100-
        year supply of natural gas.
            (2) Natural gas will see increasing global demand and use 
        beyond 2050.
            (3) United States natural gas production increased by 54 
        percent from 2005 to 2017. At the same time, total United 
        States carbon dioxide emissions decreased by 14 percent. The 
        natural gas share of electricity production increased from 19 
        percent in 2005 to 32 percent in 2017.
            (4) Between 2005 and 2019, carbon dioxide emissions from 
        the United States power sector declined by 33 percent, with 
        fuel switching to natural gas, accounting for more than half of 
        those reductions. During that period, the United States economy 
        grew by 20 percent, United States energy consumption fell by 2 
        percent, and per capita emissions dropped to their lowest 
        levels since 1950.
            (5) Between 1990 and 2018, the natural gas and oil industry 
        reduced methane emissions by 23.6 percent through voluntary 
        actions, while expanding production by 70 percent.
            (6) Demand in the United States and globally for clean-
        burning natural gas and liquefied natural gas will continue to 
        increase over the next several decades, even as renewable 
        energy resources increase.
            (7) Demand for natural gas is rising in the Indo-Pacific 
        region, particularly as countries look to make emissions cuts 
        and transition from higher emissions fuel sources.
            (8) The expanding number of infrastructure projects in the 
        Indo-Pacific region, carried out under the Belt and Road 
        Initiative, is leading to higher emissions in the region.
            (9) According to the International Energy Agency, ``The 
        number of countries and territories with [liquefied natural 
        gas] import terminals has grown from nine in 2000 to 42 in 
        2020.''. Further, the International Energy Agency has found 
        that ``transition[s] in Asian gas markets [are] even more 
        important in the wider context of global clean energy 
        transitions, where natural gas will be required to make a more 
        flexible contribution as the share of variable renewable energy 
        sources grows and coal use progressively declines''.
            (10) The United States saw a 66.3-percent increase in 
        liquefied natural gas exports and an 11.2-percent increase in 
        oil production in 2019.
            (11) As a result of the natural gas revolution, the United 
        States petroleum trade deficit in dollars fell from about 
        $320,000,000,000 in 2007 to about $3,000,000,000 in 2020, as 
        net imports declined.
            (12) Australia and the United States are both important 
        global energy exporters and thus have a shared interest in 
        supplying the growing energy demand in the Indo-Pacific region.
            (13) Japanese companies have long invested in United States 
        liquefied natural gas projects, including the Government of 
        Japan shifting from relying on liquefied natural gas from the 
        Middle East to liquefied natural gas from the United States.
            (14) The People's Republic of China currently is one of the 
        largest financiers of overseas energy and greenhouse gas 
        intensive projects. The People's Republic of China also uses 
        those investments to project its influence and secure critical 
        minerals supply chains and infrastructure.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States reaffirms its commitment to 
        quadrilateral cooperation with Japan, India, and Australia 
        (collectively, with the United States, known as the ``Quad''), 
        and that United States should continue to pursue strengthening 
        cooperation in the energy sector in light of the global threats 
        and challenges facing all 4 countries;
            (2) the Association of Southeast Asian Nations (commonly 
        referred to as ``ASEAN'') and its 10 members (Brunei, Cambodia, 
        Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, 
        Thailand, and Vietnam) have worked with the United States 
        toward stability, prosperity, and peace in Southeast Asia, and 
        ASEAN will continue to remain a strong, reliable, and active 
        economic and strategic partner in the Indo-Pacific region;
            (3) the United States and the Republic of Korea enjoy a 
        comprehensive alliance partnership, founded in shared strategic 
        interests and cemented by a commitment to democratic values, 
        which includes recognizing the important role of energy 
        cooperation through the United States-Republic of Korea Energy 
        Security Dialogue; and
            (4) the United States has economic, national security, and 
        domestic interests in assisting allies and partners in Indo-
        Pacific countries to reduce greenhouse gas emissions and 
        achieve energy security through diversification of their energy 
        sources and supply routes.

SEC. 4. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to engage and lead on international emissions 
        reductions and adaptation, including assisting allies and 
        partners in reducing higher emissions fuel sources through 
        exports of cleaner-burning United States-produced fuels and 
        emission-reduction technologies;
            (2) to advance United States foreign policy and development 
        goals by assisting allies and partners of the United States in 
        the Indo-Pacific region to decrease their dependence on energy 
        resources from countries that use energy dependence to coerce, 
        intimidate, and influence other countries;
            (3) to develop strategies to counter competition from the 
        Russian Federation and the People's Republic of China to 
        protect the energy and national security of the United States 
        and the energy and national security of allies and partners of 
        the United States in the Indo-Pacific region;
            (4) to support free and open trade in clean-burning energy 
        products and promote the continued development of lower-
        emissions energy fuels and technologies in the Indo-Pacific 
        region;
            (5) to improve free, fair, and reciprocal energy trading 
        relationships with allies and partners of the United States in 
        the Indo-Pacific region;
            (6) to promote the energy security of allies and partners 
        of the United States in the Indo-Pacific region by encouraging 
        the development of energy infrastructure and accessible, 
        transparent, and competitive energy markets that provide 
        diversified sources, types, and routes of energy;
            (7) to encourage public and private sector investment in 
        lower-emissions energy infrastructure projects in the Indo-
        Pacific region;
            (8) to supply countries that rely on higher emitting fuel 
        sources with cleaner burning and abundant alternatives; and
            (9) to help facilitate the export of United States energy 
        resources, technology, and expertise to global markets in a way 
        that benefits the energy security of allies and partners of the 
        United States in the Indo-Pacific region.

SEC. 5. ENERGY INFRASTRUCTURE PROJECT SUPPORT.

    (a) In General.--The Secretary of State, in consultation with the 
Secretary of Energy, the heads of other relevant United States 
agencies, and energy-importing allies and partners of the United 
States, shall, as appropriate, prioritize and expedite the efforts of 
the Department of State, the Department of Energy, and such other 
agencies in supporting the governments of Japan, India, Australia, and 
other like-minded Indo-Pacific countries (including member countries of 
ASEAN and the Republic of Korea) to increase their energy security and 
reduce energy emissions, including through--
            (1) providing diplomatic and political support to those 
        governments, as necessary--
                    (A) to facilitate international negotiations 
                concerning cross-border infrastructure;
                    (B) to enhance the regulatory environment with 
                respect to energy projects in the Indo-Pacific region; 
                and
                    (C) to develop accessible, transparent, and 
                competitive energy markets supplied by diverse sources, 
                types, and routes of energy; and
            (2) providing support--
                    (A) to improve energy markets in the Indo-Pacific 
                region, including early-stage project support and late-
                stage project support for the construction or 
                improvement of energy projects and related 
                infrastructure pertaining to emissions reduction;
                    (B) to diversify the energy sources and supply 
                routes of Indo-Pacific countries; and
                    (C) to enhance energy market integration across the 
                region.
    (b) Project Selection.--
            (1) Identification.--The Secretary of State, the Secretary 
        of Commerce, and the Secretary of Energy shall identify energy 
        infrastructure projects that would be appropriate for United 
        States assistance under this section.
            (2) Eligibility.--A project is eligible for United States 
        assistance under this section if the project--
                    (A) has been identified by the Secretary of State, 
                the Secretary of Commerce, and the Secretary of Energy 
                as promoting energy security in the Indo-Pacific region 
                or the country in which the project is located;
                    (B) promotes the reduction of greenhouse gas and 
                carbon dioxide emissions; and
                    (C) is located in an Indo-Pacific country.
            (3) Preference.--In selecting projects for United States 
        assistance under this section, the Secretary of State, the 
        Secretary of Commerce, and the Secretary of Energy shall give 
        preference to projects that--
                    (A) are expected to enhance energy market 
                integration; or
                    (B) have the potential to use goods and services of 
                the United States, another Quad country, a member 
                country of ASEAN, or the Republic of Korea, during 
                project implementation.
    (c) Diplomatic and Political Support.--The Secretary of State shall 
provide diplomatic and political support to the governments of Japan, 
India, Australia, and other like-minded Indo-Pacific countries 
(including member countries of ASEAN and the Republic of Korea), as 
necessary, including by using the diplomatic and political influence 
and expertise of the Department of State to build the capacity of those 
countries to resolve any impediments to the development of projects 
selected under subsection (b).
    (d) Project Support.--The Director of the Trade and Development 
Agency shall provide early-stage project support with respect to 
projects selected under subsection (b).

SEC. 6. INFRASTRUCTURE FUNDING.

    (a) Establishment of Strategic Energy Portfolio of the United 
States International Development Finance Corporation.--Title V of the 
Better Utilization of Investments Leading to Development Act of 2018 
(22 U.S.C. 9671 et seq.) is amended by adding at the end the following:

``SEC. 1455. STRATEGIC ENERGY PORTFOLIO.

    ``The Corporation--
            ``(1) may provide support under title II for projects 
        related to importation of liquefied natural gas and generation 
        of low emission electricity and other energy, including for 
        such projects of entities owned or controlled by the government 
        of a foreign country;
            ``(2) may not prohibit, restrict, or otherwise impede the 
        provision of support on the basis of the type of energy 
        involved in a project; and
            ``(3) should, in providing support authorized by paragraph 
        (1), coordinate with the Japan Bank for International 
        Cooperation and the Government of Australia pursuant to the 
        trilateral memorandum of understanding on development finance 
        signed on November 12, 2018.''.
    (b) Promotion of Energy Exports by Export-Import Bank of the United 
States.--The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is 
amended by adding at the end the following:

``SEC. 16. STRATEGIC ENERGY PORTFOLIO.

    ``(a) In General.--The Bank shall establish a strategic energy 
portfolio focused on providing financing (including loans, guarantees, 
and insurance) for projects described in subsection (b) that may 
facilitate--
            ``(1) increases in exports of United States energy 
        commodities; or
            ``(2) the export of United States equipment, materials, and 
        technology.
    ``(b) Projects Described.--A project described in this subsection 
is a project related to--
            ``(1) construction of liquefied natural gas import 
        terminals;
            ``(2) commercialization of carbon capture, utilization, and 
        storage;
            ``(3) development of blue hydrogen infrastructure; or
            ``(4) other low emission energy infrastructure.''.
    (c) Private and Foreign Public Sector Investment.--
            (1) Private sector investment.--The Secretary of Commerce 
        and the Secretary of State shall promote the funding of 
        projects selected under section 5 among United States energy 
        producers and exporters.
            (2) Foreign public sector investment.--The heads of the 
        agencies described in section 5(a) may, for the purposes of 
        this Act, partner and coordinate with public and multilateral 
        financial institutions and export credit agencies of Japan, 
        India, Australia, and other Indo-Pacific countries (including 
        member countries of ASEAN and the Republic of Korea), such as 
        the Japan Bank for International Cooperation.

SEC. 7. REPORTING.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the President shall 
submit to the appropriate congressional committees a report on progress 
made in providing assistance for projects under this Act that 
includes--
            (1) a description of the energy infrastructure projects the 
        United States has identified for such assistance; and
            (2) for each such project--
                    (A) a description of the role of the United States 
                in the project, including in early-stage project 
                support and late-stage project support;
                    (B) the amount and form of any debt financing and 
                insurance provided by the United States Government for 
                the project as well as any coordination with foreign 
                public financial institutions or export credit 
                agencies;
                    (C) the amount and form of any debt financing and 
                insurance provided by foreign public financial 
                institutions or export credit agencies;
                    (D) the amount and form of any early-stage project 
                support; and
                    (E) an update on the progress made on the project 
                as of the date of the report.
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations, the Committee on 
        Energy and Natural Resources, and the Committee on Environment 
        and Public Works of the Senate; and
            (2) the Committee on Foreign Affairs, the Committee on 
        Energy and Commerce, and the Committee on Natural Resources of 
        the House of Representatives.
                                 <all>
Indo-Pacific Strategic Energy Initiative Act
A bill to provide support for energy infrastructure projects in the Indo-Pacific region, and for other purposes.
Indo-Pacific Strategic Energy Initiative Act
Sen. Sullivan, Dan