H.R. 5845

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5845 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 5845

To establish a lending program for Latin America and the Caribbean to 
reaffirm the United States commitment to sustainable and equitable 
growth and energy security in the Western Hemisphere.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

October 28, 2025

Mr. Espaillat introduced the following bill; which was referred to the 
Committee on Foreign Affairs

_______________________________________________________________________

A BILL

To establish a lending program for Latin America and the Caribbean to 
reaffirm the United States commitment to sustainable and equitable 
growth and energy security in the Western Hemisphere.

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 ``Las Americas Energy Security Act''.

SEC. 2. FINDINGS; PURPOSE; STATEMENT OF POLICY.

(a) Findings.--Congress finds the following:
(1) Energy independence and security are critical for a 
country to maintain its sovereignty, independence, and 
sustainable economic growth.
(2) The International Energy Agency (``IEA'') defines 
energy security as the uninterrupted availability of energy 
sources at an affordable price.
(3) The IEA defines long-term energy security as primarily 
dealing with timely investments to supply energy in line with 
economic developments and environmental needs.
(4) The IEA defines short-term energy security as focusing 
on the ability of a country's energy system to react promptly 
to sudden changes in the supply-demand balance.
(5) The IEA's Executive Director remarked in February 2023 
that Russia's February 2022 invasion of Ukraine had sparked an 
ongoing global energy crisis with serious implications for 
international energy security.
(6) The Intergovernmental Panel on Climate Change (IPCC), a 
United Nations body that provides regular assessments on global 
heating, issued a synthesis report in March 2023, and found 
that the effects of global temperature changes were ``already 
affecting many weather and climate extremes in every region 
across the globe,'' which has ``led to widespread adverse 
impacts on food and water security, human health and on 
economies and society and related losses and damages to nature 
and people.''.
(7) The IPCC notes that to avoid mounting loss of life, 
biodiversity, and infrastructure, we must have ambitious, 
accelerated action to adapt to climate change, while also 
making rapid, deep cuts in greenhouse gas emissions.
(8) The World Meteorological Organization's State of the 
Climate in Latin America and the Caribbean 2021 report found 
that--
(A) widespread drought across Latin America and the 
Caribbean has had significant impact on inland shipping 
routes, crop yields, and food production, and 
consequently led to worsening food insecurity;
(B) extreme weather events affected millions of 
people across Central America, exacerbating food 
insecurity in countries already crippled by economic 
shocks, COVID-19 impacts, and conflict; and
(C) sea-level rise poses a major risk to low-lying 
coastal zones in Latin America and the Caribbean.
(9) The United Nations states that facilitating more 
reliable and affordable access to clean electricity helps 
governments to improve the quality of other basic services, 
such as education and healthcare. Electricity access also helps 
diversify and strengthen local economies. Thus, increasing 
electricity access could reduce the need to migrate to urban 
areas and other countries.
(10) Natural disasters of increased frequency are projected 
to increase the displacement of people and the United Nations 
High Commissioner for Refugees estimates that an annual average 
of more than 20 million people have been forcibly displaced by 
weather-related sudden onset hazards every year since 2008.
(11) Rising commodity and energy prices, as well as other 
global economic shocks such as those caused by natural 
disasters, pandemics, and conflict pose a serious security risk 
that may lead to social unrest and instability in Latin America 
and the Caribbean.
(b) Sense of Congress.--It is 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.
(c) Statement of Policy.--It is the policy of the United States--
(1) to advance United States foreign policy and development 
goals by helping Latin America and the Caribbean meet its 
short-term energy needs;
(2) to promote the energy security of Latin America and the 
Caribbean by encouraging the development of accessible, 
transparent, competitive, and solvent energy markets and 
systems that provide diversified sources, types, and routes of 
energy, as well as by prioritizing clean energy sources that 
reduce carbon emissions and address the ongoing global rise in 
temperatures;
(3) to encourage United States public and private sector 
investment in Latin American and Caribbean energy 
infrastructure projects to bridge the gap between energy 
security and commercial demand in a way that is consistent with 
the region's current absorptive capacity, and that recognizes 
the importance of building and widening the absorptive capacity 
of the region;
(4) to help facilitate the export of United States energy 
resources, technology, and expertise to global markets in a way 
that benefits the comprehensive energy security of Latin 
America and the Caribbean; and
(5) to assist partner countries in developing and 
strengthening regulatory and investment frameworks that support 
energy security.

SEC. 3. SOVEREIGN LENDING PROGRAM FOR ELIGIBLE LATIN AMERICAN AND 
CARIBBEAN PARTNER COUNTRIES.

(a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of the Treasury, with the 
concurrence of the Secretary of State, shall establish a sovereign 
lending program for eligible Latin American and Caribbean partner 
countries--
(1) to support their short-term energy needs;
(2) to fund projects that help them transition to renewable 
or clean energy that reduces carbon emissions;
(3) to fund technical assistance programs that ensure that 
there is a continuous pipeline of clean energy projects 
available for investment from the United States, Latin America, 
and the Caribbean;
(4) to provide capital and financing for United States 
companies to make it easier to invest in renewable energy 
projects in smaller and developing markets; and
(5) to provide financing to partner countries to help 
purchase battery solutions that contribute to reliable and 
affordable electricity prices.
(b) Application.--To be eligible to receive a loan under the 
program, an eligible Latin American or Caribbean partner country shall 
submit to the Secretary of the Treasury an application at such time, in 
such manner, and containing such information as the Secretary may 
require. At minimum, the Secretary shall require an applicant to 
provide--
(1) information about the energy projects that will be 
supported through these funds, including their economic and 
technical viability, feasibility to attract funding from the 
private sector, net carbon impact, the potential to use United 
States goods and services during project implementation, and 
enhancement of energy market integration;
(2) data on how funds will support equitable job creation;
(3) information regarding environmental impact, including 
on biodiversity;
(4) data on the impact upon marginalized communities; and
(5) certification that no funds shall be used to purchase a 
commodity from or support in any manner a corporation or state-
owned enterprise that has an ownership relationship with the 
Government of the People's Republic of China or the Chinese 
Communist Party, the Government of the Russian Federation, or 
any other foreign adversary or malign influence.
(c) Preference.--In selecting among applications for a loan under 
this section, the Secretary of State shall give preference to an 
eligible Latin American or Caribbean partner country that shares 
democratic values, respect for human rights, and economic freedom, as 
determined by the Secretary of State, including members of the Alliance 
for Development in Democracy (the Dominican Republic, Costa Rica, 
Panama, and Ecuador) and the Caribbean Community (CARICOM).
(d) Loan Conditions.--A loan provided under the program--
(1) shall be--
(A) a zero-interest loan, not to exceed 30 years in 
duration; or
(B) a low-interest concessional loan, not to exceed 
50 years in duration;
(2) shall not contain any requirements that an eligible 
Latin American or Caribbean partner country engage in austerity 
measures or policies that increase poverty and inequality, 
diminish the quality of life, and threaten the immediate access 
of goods and services;
(3) shall ensure that no funds are used to purchase a 
commodity from or support in any manner a corporation or state-
owned enterprise that has an ownership relationship with the 
Government of the People's Republic of China or the Chinese 
Communist Party, the Government of the Russian Federation, or 
any other foreign adversary or malign actor; and
(4) shall be subject to such other terms and conditions as 
the Secretary of the Treasury, in concurrence with the 
Secretary of State, determines to be appropriate.
(e) Report.--
(1) In general.--Not later than one year after the date of 
the enactment of this Act, and annually thereafter for 4 years, 
the Secretary of the Treasury, in concurrence with the 
Secretary of State, and in consultation with the Secretary of 
Energy and the heads of other relevant Federal departments and 
agencies, shall submit to the Committee on Foreign Affairs and 
the Committee on Appropriations of the House of Representatives 
and the Committee on Foreign Relations and the Committee on 
Appropriations of the Senate a report on progress in the 
implementation of the program.
(2) Matters to be included.--The report shall--
(A) include a description of how the program 
strengthens United States national security and 
economic interests in Latin America and the Caribbean;
(B) include an assessment of--
(i) the status and effectiveness of current 
efforts by regional governments, multilateral 
development banks, and the private sector to 
promote energy security in Latin America and 
the Caribbean and to transition to clean energy 
practices;
(ii) major challenges hindering such 
efforts; and
(iii) how the United States can strengthen 
the effectiveness of such efforts;
(C) identify how activities by the Department of 
State, the United States Agency for International 
Development, the United States International 
Development Finance Corporation, and other related 
agencies can effectively be leveraged to strengthen and 
promote energy independence and security in Latin 
America and the Caribbean;
(D) assess diplomatic initiatives taken to secure 
specific national commitments by governments of 
eligible Latin American and Caribbean partner countries 
to undertake efforts to promote energy security and 
independence in the region, address corruption and rule 
of law concerns, modernize digital and physical 
infrastructure, improve ease of doing business, and 
finance and incentivize energy security initiatives; 
and
(E) detail coordination of efforts with relevant 
multilateral development banks to advance energy 
security and independence of eligible Latin American 
and Caribbean partner countries.
(f) Annual Audit.--The Secretary of the Treasury--
(1) shall ensure that a full audit of the program is 
performed on an annual basis; and
(2) shall submit the results of the audit to the Committee 
on Foreign Affairs and the Committee on Appropriations of the 
House of Representatives and the Committee on Foreign Relations 
and the Committee on Appropriations of the Senate.
(g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of the Treasury $100,000,000 for each of 
fiscal years 2026 through 2031 to carry out the program.
(h) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean 
partner country''--
(1) means a country that--
(A) is a beneficiary country for purposes of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 
et seq.);
(B) is a member state of the Caribbean Community 
(commonly referred to as ``CARICOM'');
(C) is a member state of the Alliance for 
Development in Democracy;
(D) is a country in the Western Hemisphere that is 
a party to a free trade agreement or preference program 
with the United States; or
(E) is a beneficiary country of the Caribbean Basin 
Security Initiative; and
(2) does not include any country that--
(A) has been sanctioned by the United States; or
(B) the Secretary of State determines--
(i) to be a state sponsor of terrorism; or
(ii) to be a foreign adversary, defined as 
a foreign government engaged in a long-term 
pattern or serious instances of conduct adverse 
to the national security of the United States 
or security and safety of United States 
persons.

SEC. 4. SUPPORTING EFFORTS TO INCREASE ENERGY SECURITY OF ELIGIBLE 
LATIN AMERICAN AND CARIBBEAN PARTNER COUNTRIES.

(a) In General.--The Secretary of State, in consultation with the 
Secretary of Energy and the heads of other relevant Federal departments 
and agencies, shall, as appropriate, prioritize and expedite the 
efforts of the Department of State and those other departments and 
agencies in supporting the efforts of eligible Latin American and 
Caribbean partner countries to increase their energy security, 
including through--
(1) providing diplomatic and political support to these 
governments, as necessary--
(A) to facilitate international negotiations 
concerning cross-border infrastructure and 
transactions;
(B) to enhance and build Latin America's and the 
Caribbean's regulatory environment with respect to 
energy; and
(C) to develop accessible, transparent, and 
competitive energy markets supplied by diverse sources, 
types, and routes of energy to achieve energy 
efficiency; and
(2) providing support to improve Latin American and 
Caribbean energy markets, including early-stage project support 
and late-stage project support for the construction or 
improvement of energy and related infrastructure, as 
necessary--
(A) to diversify the energy sources and supply 
routes of eligible Latin American and Caribbean partner 
countries;
(B) to enhance energy market integration across the 
region; and
(C) to increase competition and aggregate energy 
markets.
(b) Project Selection.--
(1) In general.--The Federal departments and agencies 
described in subsection (a) shall identify energy 
infrastructure projects that would be appropriate for United 
States assistance under this section.
(2) Project eligibility.--A project is eligible for United 
States assistance under this section if the project--
(A)(i) improves electricity transmission 
infrastructure and power generation through the use of 
a broad power mix, prioritizing renewable energy or 
energy efficiency;
(ii) advances energy storage projects, smart grid 
projects, distributed generation models, or other 
technological innovations and digitalization of the 
power sector, as appropriate; and
(iii) improves energy access for marginalized and 
underserved communities;
(B) is located in an eligible Latin American or 
Caribbean partner country; and
(C) can be conducted in a transparent and 
accountable manner that mitigates any risk of 
corruption.
(3) Preference.--In selecting among projects that are 
eligible under paragraph (2), the Federal departments and 
agencies described in subsection (a) shall give preference to 
projects that--
(A) link the energy systems of two or more Latin 
American and Caribbean partner countries;
(B) address the impacts of sustained global 
temperature increases;
(C) enhance resilience to sustained global 
temperature increases and global economic shocks;
(D) are expected to enhance energy market 
integration;
(E) can demonstrate sustainability by attracting 
funding from the private sector, an international 
financial institution, or the government of the country 
in which the project will be carried out;
(F) have the potential to use United States goods 
and services during project implementation; or
(G) decrease electricity prices and promote price 
stability in the face of global economic shocks.
(c) Types of Assistance.--
(1) Diplomatic and political support.--The Secretary of 
State shall provide diplomatic and political support to the 
governments of eligible Latin American and Caribbean countries, 
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).
(2) Early-stage project support.--The Director of the Trade 
and Development Agency, in consultation with the United States 
Agency for International Development, the Inter-American 
Development Bank, the Caribbean Development Bank, and the World 
Bank, shall provide early-stage project support with respect to 
projects selected under subsection (b), as necessary.
(3) Late-stage project support.--Federal departments and 
agencies described in subsection (a) that provide late-stage 
project support shall do so with respect to projects selected 
under subsection (b), as necessary.
(d) Exception From Certain Limitation Under Build Act.--For 
purposes of providing support for projects under this section--
(1) the United States International Development Finance 
Corporation may provide support for projects in countries with 
upper-middle-income economies or high-income economies (as 
those terms are defined by the World Bank);
(2) the restriction under section 1412(c)(2) of the BUILD 
Act of 2018 (22 U.S.C. 9612(c)(2)) shall not apply; and
(3) the Corporation shall restrict the provision of such 
support in a country described in paragraph (1) unless--
(A) the President certifies to the appropriate 
congressional committees that such support furthers the 
national economic or foreign policy interests of the 
United States; and
(B) such support is--
(i) designed to produce significant 
developmental outcomes or provide developmental 
benefits to the poorest population of that 
country; or
(ii) necessary to preempt or counter 
efforts by a strategic competitor of the United 
States to secure significant political or 
economic leverage or acquire national security-
sensitive technologies or infrastructure in a 
country that is an ally or partner of the 
United States.
(e) Progress Reports.--Not later than one year after the date of 
the enactment of this Act, and annually thereafter for seven years, the 
President shall transmit to the Committee on Foreign Affairs and the 
Committee on Appropriations of the House of Representatives and the 
Committee on Foreign Relations and the Committee on Appropriations of 
the Senate a report on progress made in providing assistance for 
projects under this section that includes the following:
(1) A description of the energy infrastructure projects the 
United States has identified for such assistance.
(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;
(C) the amount and form of any early-stage project 
support; and
(D) an update on the progress made on the project 
as of the date of the report.
(f) Eligible Latin American or Caribbean Partner Country Defined.--
In this section, the term ``eligible Latin American or Caribbean 
partner country'' has the meaning given that term in section 3(h).
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