USC Subchapter IV

in effect

22 U.S.C. § 2431 Findings and purposes

(a) FindingsThe Congress finds the following:(1) It is the established policy of the United States to support and seek protection of tropical forests and coral reef ecosystems around the world. (2) Tropical forests provide a wide range of benefits to humankind by—(A) harboring a major share of the Earth’s biological and terrestrial resources, which are the basis for developing pharmaceutical products and revitalizing agricultural crops; (B) playing a critical role as carbon sinks in reducing greenhouse gases in the atmosphere, thus moderating potential global climate change; and (C) regulating hydrological cycles on which agricultural and coastal resources depend. (3) International negotiations and assistance programs to conserve forest resources have proliferated over the past decade, but the rapid rate of tropical deforestation continues unabated. (4) Developing countries with urgent needs for investment and capital for development have allocated a significant amount of their forests to logging concessions. (5) Poverty and economic pressures on the populations of developing countries have, over time, resulted in clearing of vast areas of forest for conversion to agriculture, which is often unsustainable in the poor soils underlying tropical forests. (6) Debt reduction can reduce economic pressures on developing countries and result in increased protection for tropical forests and coral reef ecosystems. (7) Finding economic benefits to local communities from sustainable uses of tropical forests and coral reef ecosystems is critical to the protection of such areas. (b) PurposesThe purposes of this subchapter are—(1) to recognize the values received by United States citizens from protection of tropical forests and coral reef ecosystems; (2) to facilitate greater protection of tropical forests and coral ecosystems (and to give priority to protecting areas with the highest levels of biodiversity and under the most severe threat) by providing for the alleviation of debt in countries where tropical forests and coral reef ecosystems are located, thus allowing the use of additional resources to protect these critical resources and reduce economic pressures that have led to deforestation; (3) to ensure that resources freed from debt in such countries are targeted to protection of tropical forests and coral reef ecosystems and their associated values; and (4) to rechannel existing resources to facilitate the protection of tropical forests and coral reef ecosystems.

22 U.S.C. § 2431a Definitions

As used in this subchapter: (1) Administering bodyThe term “administering body” means the entity provided for in section 2431g(c) of this title. (2) Appropriate congressional committeesThe term “appropriate congressional committees” means—(A) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and (B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate. (3) Beneficiary countryThe term “beneficiary country” means an eligible country with respect to which the authority of section 2431d(a)(1) of this title, section 2431e(a)(1) of this title, or paragraph (1) or (2) of section 2431f(a) of this title is exercised. (4) BoardThe term “Board” means the board referred to in section 2431i of this title. (5) Developing country with a tropical forest or coral reefThe term “developing country with a tropical forest or coral reef” means—(A)(i) a country that has a per capita income of $725 or less in 1994 United States dollars (commonly referred to as “low-income country”), as determined and adjusted on an annual basis by the International Bank for Reconstruction and Development in its World Development Report; or (ii) a country that has a per capita income of more than $725 but less than $8,956 in 1994 United States dollars (commonly referred to as “middle-income country”), as determined and adjusted on an annual basis by the International Bank for Reconstruction and Development in its World Development Report; and (B) a country that contains at least one tropical forest or coral reef that is globally outstanding in terms of its biological diversity or represents one of the larger intact blocks of tropical forests or coral reefs left, on a regional, continental, or global scale. (6) Eligible countryThe term “eligible country” means a country designated by the President in accordance with section 2431c of this title. (7) Conservation AgreementThe term “Conservation Agreement” or “Agreement” means a Conservation Agreement provided for in section 2431g of this title. (8) Conservation FacilityThe term “Conservation Facility” or “Facility” means the Conservation Facility established in the Department of the Treasury by section 2431b of this title. (9) Conservation FundThe term “Conservation Fund” or “Fund” means a Conservation Fund provided for in section 2431h of this title. (10) CoralThe term “coral” means species of the phylum Cnidaria, including—(A) all species of the orders Antipatharia (black corals), Scleractinia (stony corals), Alcyonacea (soft corals), Gorgonacea (horny corals), Stolonifera (organpipe corals and others), and Coenothecalia (blue coral), of the class Anthoza; 11 So in original. Probably should be “Anthozoa;”. and (B) all species of the order Hydrocorallina (fire corals and hydrocorals) of the class Hydrozoa. (11) Coral reefThe term “coral reef” means any reef or shoal composed primarily of coral. (12) Coral reef ecosystemThe term “coral reef ecosystem” means any coral reef and any coastal marine ecosystem surrounding, or directly related to, a coral reef and important to maintaining the ecological integrity of that coral reef, such as seagrasses, mangroves, sandy seabed communities, and immediately adjacent coastal areas.

22 U.S.C. § 2431b Establishment of Facility

There is established in the Department of the Treasury an entity to be known as the “Conservation Facility” for the purpose of providing for the administration of debt reduction in accordance with this subchapter.

22 U.S.C. § 2431c Eligibility for benefits

(a) In generalTo be eligible for benefits from the Facility under this subchapter, a country shall be a developing country with a tropical forest or coral reef—(1) whose government is democratically elected; (2) whose government has not repeatedly provided support for acts of international terrorism; (3) whose government is not failing to cooperate on international narcotics control matters; (4) whose government (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights; (5) that has in effect, has received approval for, or is making significant progress toward—(A) an International Monetary Fund standby arrangement, extended Fund arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or a Fund monitored program, or is implementing sound macroeconomic policies, unless the President determines that such an arrangement or program could reasonably be expected to have significant adverse social or environmental effect; and (B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development or the International Development Association, unless the President determines that the resulting adjustment requirements could reasonably be expected to have significant adverse social or environmental effects; (6) if appropriate, has 11 So in original. Probably should be preceded by “that”. agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction; and (7) that has put in place investment reforms, as evidenced by the conclusion of a bilateral investment treaty with the United States, implementation of an investment sector loan with the Inter-American Development Bank, World Bank-supported investment reforms, or other measures, as appropriate. (b) Eligibility determinations(1) In generalConsistent with subsection (a), the President shall determine whether a country is eligible to receive benefits under this subchapter. (2) Congressional notificationThe President shall notify the appropriate congressional committees of his intention to designate a country as an eligible country at least 15 days in advance of any formal determination.

22 U.S.C. § 2431d Reduction of debt owed to United States as result of concessional loans under this chapter

(a) Authority to reduce debt(1) AuthorityThe President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 1, 1998, as a result of concessional loans made to an eligible country by the United States under subchapter I of this chapter, part IV of subchapter II of this chapter, or predecessor foreign economic assistance legislation. (2) Authorization of appropriationsFor the cost (as defined in section 661a(5) of title 2) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President—(A) $25,000,000 for fiscal year 1999; (B) $75,000,000 for fiscal year 2000; and (C) $100,000,000 for fiscal year 2001. (3) Certain prohibitions inapplicable(A) In generalA reduction of debt pursuant to this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country. (B) Additional requirementThe authority of this section may be exercised notwithstanding section 2370(r) of this title or section 321 of the International Development and Food Assistance Act of 1975. (b) Implementation of debt reduction(1) In generalAny debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) Exchange of obligations(A) In generalThe Facility shall notify the agency primarily responsible for administering subchapter I of this chapter of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) Additional requirementAt the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation for the country shall be established relating to the agreement, and the agency primarily responsible for administering subchapter I of this chapter shall make an adjustment in its accounts to reflect the debt reduction. (c) Additional terms and conditions(1) The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 2430c(a)(1) of this title:(A) The provisions relating to repayment of principal under section 2430d of this title. (B) The provisions relating to interest on new obligations under section 2430e of this title. (2) In addition to the application of the provisions relating to repayment of principal under section 2430d of this title to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Conservation Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 2430e of this title. (d) Authorization of appropriations for fiscal years after fiscal year 2001For the cost (as defined in section 661a(5) of title 2) for the reduction of any debt pursuant to this section or section 2431e of this title, there are authorized to be appropriated to the President the following:(1) $50,000,000 for fiscal year 2002. (2) $75,000,000 for fiscal year 2003. (3) $100,000,000 for fiscal year 2004. (4) $20,000,000 for fiscal year 2005. (5) $25,000,000 for fiscal year 2006. (6) $30,000,000 for fiscal year 2007. (7) $20,000,000 for fiscal year 2019. (8) $20,000,000 for fiscal year 2020. (9) $20,000,000 for fiscal year 2023. (10) $20,000,000 for fiscal year 2024. (11) $20,000,000 for fiscal year 2025. (12) $20,000,000 for fiscal year 2026. (13) $20,000,000 for fiscal year 2027. (e) Use of funds to conduct program audits, evaluations, monitoring, and administrationOf the amounts made available to carry out this subchapter for a fiscal year, $300,000 is authorized to be made available to carry out audits, evaluations, monitoring, and administration of programs under this subchapter, including personnel costs associated with such audits, evaluations, monitoring and administration.

22 U.S.C. § 2431e Reduction of debt owed to United States as result of credits extended under title I of Food for Peace Act

(a) Authority to reduce debt(1) AuthorityNotwithstanding any other provision of law, the President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 14, 2019, as a result of any credits extended under title I of the Food for Peace Act (7 U.S.C. 1701 et seq.) to a country eligible for benefits from the Facility. (2) Authorization of appropriations(A) In generalFor the cost (as defined in section 661a(5) of title 2) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President—(i) $25,000,000 for fiscal year 1999; (ii) $50,000,000 for fiscal year 2000; and (iii) $50,000,000 for fiscal year 2001. (B) LimitationThe authority provided by this section shall be available only to the extent that appropriations for the cost (as defined in section 661a(5) of title 2) of the modification of any debt pursuant to this section are made in advance. (b) Implementation of debt reduction(1) In generalAny debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) Exchange of obligations(A) In generalThe Facility shall notify the Commodity Credit Corporation of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) Additional requirementAt the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation shall be established for the country relating to the agreement, and the Commodity Credit Corporation shall make an adjustment in its accounts to reflect the debt reduction. (c) Additional terms and conditions(1) The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of the Food for Peace Act [7 U.S.C. 1738c(a)(1)]:(A) The provisions relating to repayment of principal under section 605 of such Act [7 U.S.C. 1738d]. (B) The provisions relating to interest on new obligations under section 606 of such Act [7 U.S.C. 1738e]. (2) In addition to the application of the provisions relating to repayment of principal under section 605 of the Food for Peace Act [7 U.S.C. 1738d] to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Conservation Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 606 of such Act [7 U.S.C. 1738e].

22 U.S.C. § 2431f Authority to engage in debt-for-nature swaps and debt buybacks

(a) Loans and credits eligible for sale, reduction, or cancellation(1) Debt-for-nature swaps(A) In generalNotwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser described in subparagraph (B) any concessional loans described in section 2431d(a)(1) of this title or any credits described in section 2431e(a)(1) of this title, or on receipt of payment from an eligible purchaser described in subparagraph (B), reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt-for-nature swap to support eligible activities described in section 2431g(d) of this title. (B) Eligible purchaser describedA loan or credit may be sold, reduced, or canceled under subparagraph (A) only to a purchaser who presents plans satisfactory to the President for using the loan or credit for the purpose of engaging in debt-for-nature swaps to support eligible activities described in section 2431g(d) of this title. (C) Consultation requirementBefore the sale under subparagraph (A) to any eligible purchaser described in subparagraph (B), or any reduction or cancellation under such subparagraph (A), of any loan or credit made to an eligible country, the President shall consult with the country concerning the amount of loans or credits to be sold, reduced, or canceled and their uses for debt-for-nature swaps to support eligible activities described in section 2431g(d) of this title. (D) Authorization of appropriationsFor the cost (as defined in section 661a(5) of title 2) for the reduction of any debt pursuant to subparagraph (A), amounts authorized to be appropriated under sections 2431d(a)(2), 2431e(a)(2), and 2431d(d) of this title shall be made available for such reduction of debt pursuant to subparagraph (A). (2) Debt buybacksNotwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible country any concessional loans described in section 2431d(a)(1) of this title or any credits described in section 2431e(a)(1) of this title, or on receipt of payment from an eligible country, reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt buyback by an eligible country of its own qualified debt, only if the eligible country uses an additional amount of the local currency of the eligible country, equal to not less than the lessor of 40 percent of the price paid for such debt by such eligible country, or the difference between the price paid for such debt and the face value of such debt, to support eligible activities described in section 2431g(d) of this title. (3) LimitationThe authority provided by paragraphs (1) and (2) shall be available only to the extent that appropriations for the cost (as defined in section 661a(5) of title 2) of the modification of any debt pursuant to such paragraphs are made in advance. (4) Terms and conditionsNotwithstanding any other provision of law, the President shall, in accordance with this section, establish the terms and conditions under which loans and credits may be sold, reduced, or canceled pursuant to this section. (5) Administration(A) In generalThe Facility shall notify the administrator of the agency primarily responsible for administering subchapter I of this chapter or the Commodity Credit Corporation, as the case may be, of eligible purchasers described in paragraph (1)(B) that the President has determined to be eligible under paragraph (1), and shall direct such agency or Corporation, as the case may be, to carry out the sale, reduction, or cancellation of a loan pursuant to such paragraph. (B) Additional requirementSuch agency or Corporation, as the case may be, shall make an adjustment in its accounts to reflect the sale, reduction, or cancellation. (C) United States Government representation on the administering bodyOne or more individuals appointed by the United States Government shall serve in an official capacity on the administering body that oversees the implementation of grants arising from a debt-for-nature swap or debt buyback regardless of whether the United States is a party to any agreement between the eligible purchaser and the government of the beneficiary country. (b) Deposit of proceedsThe proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant to this section shall be deposited in the United States Government account or accounts established for the repayment of such loan.

22 U.S.C. § 2431g Conservation Agreement

(a) AuthorityThe Secretary of State is authorized, in consultation with other appropriate officials of the Federal Government, to enter into a Conservation Agreement with any eligible country concerning the operation and use of the Fund for that country. (b) Contents of AgreementThe requirements contained in section 2430g(b) of this title (relating to contents of an agreement) shall apply to an Agreement in the same manner as such requirements apply to an Americas Framework Agreement. (c) Administering body(1) In generalAmounts disbursed from the Fund in each beneficiary country shall be administered by a body constituted under the laws of that country. (2) Composition(A) In generalThe administering body shall consist of—(i) one or more individuals appointed by the United States Government to serve in an official capacity; (ii) one or more individuals appointed by the government of the beneficiary country; and (iii) individuals who represent a broad range of—(I) environmental nongovernmental organizations of, or active in, the beneficiary country; (II) local community development nongovernmental organizations of the beneficiary country; and (III) scientific, academic, or forestry organizations of the beneficiary country. (B) Additional requirementA majority of the members of the administering body shall be individuals described in subparagraph (A)(iii). (3) ResponsibilitiesThe requirements contained in section 2430g(c)(3) of this title (relating to responsibilities of the administering body) shall apply to an administering body described in paragraph (1) in the same manner as such requirements apply to an administering body described in section 2430g(c)(1) of this title. (d) Eligible activitiesAmounts deposited in a Fund shall be used only to provide grants to conserve, maintain, and restore the tropical forests and coral reef ecosystems in the beneficiary country, through one or more of the following activities:(1) Establishment, restoration, protection, and maintenance of parks, protected areas, and reserves. (2) Development and implementation of scientifically sound systems of natural resource management, including land and ecosystem management practices. (3) Training programs to increase the scientific, technical, and managerial capacities of individuals and organizations involved in conservation efforts. (4) Restoration, protection, or sustainable use of diverse animal and plant species. (5) Research and identification of medicinal uses of plant life to treat human diseases, illnesses, and health related concerns. (6) Development and support of the livelihoods of individuals dependent on a tropical forest or coral reef ecosystem and related resources in a manner consistent with conserving such resources. (e) Grant recipients(1) In generalGrants made from a Fund shall be made to—(A) nongovernmental environmental, forestry, conservation, and indigenous peoples organizations of, or active in, the beneficiary country; (B) other appropriate local or regional entities of, or active in, the beneficiary country; or (C) in limited circumstances, the government of the beneficiary country when needed to improve governance and enhance management of tropical forests or coral reef ecosystems, without replacing existing levels of financial efforts by the government of the beneficiary country and with priority given to projects that complement grants made under subparagraphs (A) and (B). (2) PriorityIn providing grants under paragraph (1), priority shall be given to projects that are run by nongovernmental organizations and other private entities and that involve local communities in their planning and execution. (f) Review of larger grantsAny grant of more than $250,000 from a Fund must be approved by the Government of the United States and the government of the beneficiary country. (g) Eligibility criteriaIn the event that a country ceases to meet the eligibility requirements set forth in section 2431c(a) of this title, as determined by the President pursuant to section 2431c(b) of this title, then grants from the Fund for that country may only be made to nongovernmental organizations until such time as the President determines that such country meets the eligibility requirements set forth in section 2431c(a) of this title.

22 U.S.C. § 2431h Conservation Fund

(a) EstablishmentEach beneficiary country that enters into a Conservation Agreement under section 2431g of this title shall be required to establish a Conservation Fund to receive payments of interest and principal on new obligations undertaken by the beneficiary country under this subchapter. (b) Requirements relating to operation of FundThe following terms and conditions shall apply to the Fund in the same manner as such terms as 11 So in original. Probably should be “and”. conditions apply to an Enterprise for the Americas Fund under section 2430f of this title:(1) The provision relating to deposits under subsection (b) of such section. (2) The provision relating to investments under subsection (c) of such section. (3) The provision relating to disbursements under subsection (d) of such section.

22 U.S.C. § 2431i Board

(a) Enterprise for the Americas BoardThe Enterprise for the Americas Board established under section 1738i(a) of title 7 shall, in addition to carrying out the responsibilities of the Board under section 1738i(c) of title 7, carry out the duties described in subsection (c) of this section for the purposes of this subchapter. (b) Additional membership(1) In generalThe Enterprise for the Americas Board shall be composed of an additional four members appointed by the President as follows:(A) Two representatives from the United States Government, including a representative of the International Forestry Division of the United States Forest Service. (B) Two representatives from private nongovernmental environmental, scientific, forestry, or academic organizations with experience and expertise in preservation, maintenance, sustainable uses, and restoration of tropical forests. (2) ChairpersonNotwithstanding section 1738i(b)(2) of title 7, the Enterprise for the Americas Board shall be headed by a chairperson who shall be appointed by the President and shall be the representative from the Department of State appointed under section 1738i(b)(1)(A) of title 7. (c) DutiesThe duties described in this subsection are as follows:(1) Advise the Secretary of State on the negotiations of Tropical Forest Agreements. (2) Ensure, in consultation with—(A) the government of the beneficiary country; (B) nongovernmental organizations of the beneficiary country; (C) nongovernmental organizations of the region (if appropriate); (D) environmental, scientific, forestry, and academic leaders of the beneficiary country; and (E) environmental, scientific, forestry, and academic leaders of the region (as appropriate), that a suitable administering body is identified for each Fund. (3) Review the programs, operations, and fiscal audits of each administering body.

22 U.S.C. § 2431j Consultations with Congress

The President shall consult with the appropriate congressional committees on a periodic basis to review the operation of the Facility under this subchapter and the eligibility of countries for benefits from the Facility under this subchapter.

22 U.S.C. § 2431k Annual reports to Congress

Not later than April 15 of each year, the President shall prepare and transmit to the Congress an annual report concerning the operation of the Facility for the prior calendar year. Such report shall include— (1) a description of the activities undertaken by the Facility during the previous calendar year; (2) a description of any Agreement entered into under this subchapter; (3) a report on any Funds that have been established under this subchapter and on the operations of such Funds; and (4) a description of any grants that have been provided by administering bodies pursuant to Agreements under this subchapter.