S. 4392

[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.
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