PL-106-429 Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001 US

INITIATIVE.

(a) Repeal of Limitation on Availability of Earnings on Profits of Nonpublic Gold Sales.--Paragraph (1) of section 62 of the Bretton Woods Agreements Act, as added by section 503(a) of H.R. 3425 of the 106th Congress (as enacted by section 1000(a)(5) of Public Law 106-113 (113 Stat. 1536)), is amended-- (1) by adding ``and'' at the end of subparagraph (B); and (2) by striking subparagraph (D).

(b) Contributions to HIPC Trust Fund.-- (1) Authorization of appropriations for contributions.-- There is authorized to be appropriated for the period beginning October 1, 2000, and ending September 30, 2003, $435,000,000 for purposes of United States contributions to the Heavily Indebted Poor Countries (HIPC) Trust Fund administered by the Bank.

(2) Availability of amounts.--Amounts appropriated pursuant to the authorization of appropriations in paragraph (1) shall remain available until expended.

(c) Certification Required.-- (1) In general.--Except as provided in paragraph (2), not later than 30 days after the date of enactment of this Act, the Secretary shall certify to the appropriate congressional committees that the following requirements are satisfied: (A) Implementation by the bank of certain policies.--The Bank is implementing-- (i) policies providing for the suspension of a loan if funds are being diverted for purposes other than the purpose for which the loan was intended; (ii) policies seeking to prevent loans from displacing private sector financing; (iii) policies requiring that loans other than project loans must be disbursed-- (I) on the basis of specific prior reforms; or (II) incrementally upon implementation of specific reforms after initial disbursement; (iv) policies seeking to minimize the number of projects receiving financing that would displace a population involuntarily or be to the detriment of the people or culture of the area into which the displaced population is to be moved; (v) policies vigorously promoting open markets and liberalization of trade in goods and services; (vi) policies providing that financing by the Bank concentrates chiefly on projects and programs that promote economic and social progress rather than short-term liquidity financing; and (vii) policies providing for the establishment of appropriate qualitative and quantitative indicators to measure progress toward graduation from receiving financing on concessionary terms, including an estimated timetable by which countries may graduate over the next 15 years. (B) Implementation by the fund of certain policies.--The Fund is implementing-- (i) policies providing for the suspension of a financing if funds are being diverted for purposes other than the purpose for which the financing was intended; (ii) policies seeking to ensure that financing by the Fund normally serves as a catalyst for private sector financing and does not displace such financing; (iii) policies requiring that financing must be disbursed-- (I) on the basis of specific prior reforms; or (II) incrementally upon implementation of specific reforms after initial disbursement; (iv) policies vigorously promoting open markets and liberalization of trade in goods and services; (v) policies providing that financing by the Fund concentrates chiefly on short-term balance of payments financing; and

(vi) policies providing for the use, in conjunction with the Bank, of appropriate qualitative and quantitative indicators to measure progress toward graduation from receiving financing on concessionary terms, including an estimated timetable by which countries may graduate over the next 15 years. (2) Exception.--In the event that the Secretary cannot certify that a policy described in paragraph (1)(A) or (1)(B) is being implemented, the Secretary shall, not later than 30 days after the date of enactment of this Act, submit a report to the appropriate congressional committees on the progress, if any, made by the Bank or the Fund in adopting and implementing such policy, as the case may be.

MULTILATERAL DEVELOPMENT BANKS.

(a) In General.--The Secretary shall instruct the United States Executive Director of each multilateral development bank to exert the influence of the United States to strengthen the bank's procedures and management controls intended to ensure that funds disbursed by the bank to borrowing countries are used as intended and in a manner that complies with the conditions of the bank's loan to that country. (b) Progress Evaluation.--Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the appropriate congressional committees a report evaluating the progress made toward achieving the objectives of subsection (a), including a description of-- (1) any progress made in improving the supervision, monitoring, and auditing of programs and projects supported by each multilateral development bank, in order to identify and reduce bribery and corruption; (2) any progress made in developing each multilateral development bank's priorities for allocating anticorruption assistance; (3) country-specific anticorruption programs supported by each multilateral development bank; (4) actions taken to identify and discipline multilateral development bank employees suspected of knowingly being involved in corrupt activities; and (5) the outcome of efforts to harmonize procurement practices across all multilateral development banks.

INTERNATIONAL FINANCIAL INSTITUTIONS.

(a) Annual Report on Financial Operations.--Beginning 180 days after the date of enactment of this Act, or October 31, 2000, whichever is later, and on October 31 of each year thereafter, the Comptroller General of the United States shall submit to the appropriate congressional committees a report on the sufficiency of audits of the financial operations of each multilateral development bank conducted by persons or entities outside such bank. (b) Annual Report on United States Supported Policies.--Beginning 180 days after the date of enactment of this Act, or October 31, 2000, whichever is later, and on October 31 of each year thereafter, the Secretary shall submit a report to the appropriate congressional committees on--

(1) the actions taken by recipient countries, as a result of the assistance allocated to them by the multilateral development banks under programs referred to in section 802(b), to strengthen governance and reduce the opportunity for bribery and corruption; and (2) how International Development Association-financed projects contribute to the eventual graduation of a representative sample of countries from reliance on financing on concessionary terms and international development assistance.

(c) Amendment of Report on Fund.--Section 1705(a) of the International Financial Institutions Act (22 U.S.C. 262r-4(a)) is amended-- (1) by inserting ``(1)'' before ``the progress''; and (2) by inserting before the period at the end the following: ``, and (2) the progress made by the International Monetary Fund in adopting and implementing the policies described in section 801(c)(1)(B) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001''.

(d) Report on Debt Relief.--Not later than 90 days after the date of enactment of this Act, the Secretary shall submit a report to the appropriate congressional committees on the history of debt relief programs led by, or coordinated with, international financial institutions, including but not limited to-- (1) the extent to which poor countries and the poorest-of- the-poor benefit from debt relief, including measurable evidence of any such benefits; and (2) the extent to which debt relief contributes to the graduation of a country from reliance on financing on concessionary terms and international development assistance.

INSTITUTIONS.

Section 209(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 2169(d); relating to bilateral funding for international financial institutions) is repealed.

The Bretton Woods Agreement Act is amended by adding the following new section:

``SEC. 63. PRINCIPLES FOR INTERNATIONAL MONETARY FUND LENDING.

``It is the policy of the United States to work to implement reforms in the International Monetary Fund (IMF) to achieve the following goals: ``(1) Short-term balance of payments financing.--Lending from the general resources of the Fund should concentrate chiefly on short-term balance of payments financing. ``(2) Limitations on medium-term financing.--Use of medium- term lending from the general resources of the Fund should be limited to a set of well-defined circumstances, such as-- ``(A) when a member's balance of payments problems will be protracted; ``(B) such member has a strong structural reform program in place; and ``(C) the member has little or no access to private sources of capital.

``(3) Premium pricing.--Premium pricing should be introduced for lending from the general resources of the Fund, for greater than 200 percent of a member's quota in the Fund, to discourage excessive use of Fund lending and to encourage members to rely on private financing to the maximum extent possible. ``(4) Redressing misreporting of information.--The Fund should have in place and apply systematically a strong framework of safeguards and measures to respond to, correct, and discourage cases of misreporting of information in the context of a Fund program, including-- ``(A) suspending Fund disbursements and ensuring that Fund lending is not resumed to members that engage in serious misreporting of material information until such time as remedial actions and sanctions, as appropriate, have been applied; ``(B) ensuring that members make early repayments, where appropriate, of Fund resources disbursed on the basis of misreported information; ``(C) making public cases of serious misreporting of material information; ``(D) requiring all members receiving new disbursements from the Fund to undertake annually independent audits of central bank financial statements and publish the resulting audits; and ``(E) requiring all members seeking new loans from the Fund to provide to the Fund detailed information regarding their internal control procedures, financial reporting and audit mechanisms and, in cases where there are questions about the adequacy of these systems, undertaking an on-site review and identifying needed remedies.''.

In this title: (1) Appropriate congressional committees.--The term ``appropriate congressional committees'' means the Committee on Foreign Relations and the Committee on Appropriations of the Senate, and the Committee on Banking and Financial Services and the Committee on Appropriations of the House of Representatives. (2) Bank.--The term ``Bank'' means the International Bank for Reconstruction and Development. (3) Fund.--The term ``Fund'' means the International Monetary Fund. (4) International financial institutions.--The term ``international financial institutions'' means the multilateral development banks and the International Monetary Fund. (5) Multilateral development banks.--The term ``multilateral development banks'' means the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter- American Development Bank, the Asian Development Bank, the Inter-American Investment Corporation, the African Development Bank, the African Development Fund, the European Bank for Reconstruction and Development, and the Multilateral Investment Guaranty Agency.

(6) Secretary.--The term ``Secretary'' means the Secretary of the Treasury.

This Act may be cited as the ``Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001''.

__________ ---------------------------------------------------------------------------

ENDNOTE: The following appendix was added pursuant to the provisions of section 595 of this Appenidx (114 Stat. 1900A-60).

APPENDIX A-1--S. 3140

This Act may be cited as the ``Kentucky National Forest Land Transfer Act of 2000''.

(a) Findings.--Congress finds that-- (1) the United States owns over 40,000 acres of land and mineral rights administered by the Tennessee Valley Authority within the Daniel Boone National Forest in the State of Kentucky; (2) the land and mineral rights were acquired by the Tennessee Valley Authority for purposes of power production using funds derived from ratepayers; (3) the management of the land and mineral rights should be carried out in accordance with the laws governing the management of national forests; and (4) the Tennessee Valley Authority, on behalf of the ratepayers of the Authority, should be reasonably compensated for the land and mineral rights of the Authority transferred within the Daniel Boone National Forest.

(b) Purposes.--The purposes of this Act are-- (1) to transfer administrative jurisdiction over land of the Tennessee Valley Authority within the Daniel Boone National Forest to the Secretary of Agriculture; and (2) to compensate the Tennessee Valley Authority for the reasonable value of the transfer of jurisdiction.

In this Act: (1) Covered land.-- (A) In general.--The term ``covered land'' means all land and interests in land owned or managed by the Tennessee Valley Authority within the boundaries of the Daniel Boone National Forest in the State of Kentucky that are transferred under this Act, including surface and subsurface estates. (B) Exclusions.--The term ``covered land'' does not include any land or interest in land owned or managed by the Tennessee Valley Authority for the transmission of water, gas, or power, including power line easements and associated facilities. (2) Secretary.--The term ``Secretary'' means the Secretary of Agriculture.

(a) In General.--All covered land is transferred to the administrative jurisdiction of the Secretary to be managed in accordance with the laws (including regulations) pertaining to the National Forest System. (b) Authority of Secretary of Interior Over Mineral Resources.--The transfer of the covered land shall be subject to the authority of the Secretary of the Interior with respect to mineral resources underlying National Forest System land, including laws pertaining to mineral leasing and the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 et seq.). (c) Surface Mining.--No surface mining shall be permitted with respect to any covered land except as provided under section 522(e)(2) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1272(e)(2)).

(a) In General.--In consideration for the transfer provided under section 4, the Secretary of the Interior shall provide to the Tennessee Valley Authority monetary credits with a value of $4,000,000 that may be used for the payment of-- (1) not more than 50 percent of the bonus or other payments made by successful bidders in any sales of mineral, oil, gas, or geothermal leases in the contiguous 48 States under-- (A) the Mineral Leasing Act (30 U.S.C. 181 et seq.); (B) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); or (C) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.); (2) not more than 10 percent of the bonus or other payments made by successful bidders in any sales of mineral, oil, gas, or geothermal leases in the State of Alaska under the laws referred to in paragraph (1); (3) not more than 50 percent of any royalty, rental, or advance royalty payment made to the United States to maintain any mineral, oil, gas, or geothermal lease in the contiguous 48 States issued under the laws referred to in paragraph (1); or (4) not more than 10 percent of any royalty, rental, or advance royalty payment made to the United States to maintain any mineral, oil, gas, or geothermal lease in the State of Alaska issued under the laws referred to in paragraph (1).

(b) Value of Credits.--The total amount of credits provided under subsection (a) shall be considered equal to the fair market value of the covered land. (c) Acceptance of Credits.-- (1) In general.--The Secretary of the Interior shall accept credits provided under subsection (a) in the same manner as cash for the payments described under subsection (a). (2) Use of credits.--The use of the credits shall be subject to the laws (including regulations) governing such payments, to the extent the laws are consistent with this section.

(d) Treatment of Credits for Distribution to States.--All credits accepted by the Secretary of the Interior under subsection (c) for the payments described in subsection (a) shall be considered to be money received for the purpose of section 35 of the Mineral

Leasing Act (30 U.S.C. 191) and section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019). (e) Exchange Account.-- (1) Establishment.--Notwithstanding any other provision of law, not later than 60 days after the date of enactment of this Act, the Secretary of the Interior shall establish an exchange account for the Tennessee Valley Authority for the monetary credits provided under subsection (a). (2) Administration.--The account shall-- (A) be established with the Minerals Management Service of the Department of the Interior; and (B) have an initial balance of credits equal to $4,000,000. (3) Use of credits.-- (A) In general.--The credits shall be available to the Tennessee Valley Authority for the purposes described in subsection (a). (B) Adjustment of balance.--The Secretary of the Interior shall adjust the balance of credits in the account to reflect credits accepted by the Secretary of the Interior under subsection (c).

(f) Transfer or Sale of Credits.-- (1) In general.--The Tennessee Valley Authority may transfer or sell any credits in the account of the Authority to another person or entity. (2) Use of transferred credits.--Credits transferred or sold under paragraph (1) may be used in accordance with this subsection only by a person or entity that is qualified to bid on, or that holds, a mineral, oil, or gas lease under-- (A) the Mineral Leasing Act (30 U.S.C. 181 et seq.); (B) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); or (C) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.). (3) Notification.-- (A) In general.--Not later than 30 days after the transfer or sale of any credits, the Tennessee Valley Authority shall notify the Secretary of the Interior of the transfer or sale. (B) Validity of transfer or sale.--The transfer or sale of any credit shall not be valid until the Secretary of the Interior has received the notification required under subparagraph (A). (4) Time limit on use of credits.-- (A) In general.--On the date that is 5 years after the date on which an account is established for the Tennessee Valley Authority under subsection (e), the Secretary of the Interior shall terminate the account. (B) Unused credits.--Any credits that originated in the terminated account and have not been used as of the termination date, including any credits transferred or sold under this subsection, shall expire.

(a) In General.--Nothing in this Act affects any valid existing rights under any lease, permit, or other authorization by the Tennessee Valley Authority on covered land in effect before the date of enactment of this Act. (b) Renewal.--Renewal of any existing lease, permit, or other authorization on covered land shall be at the discretion of the Secretary on terms and conditions determined by the Secretary.

(a) Definitions.--In this section: (1) Environmental law.-- (A) In general.--The term ``environmental law'' means all applicable Federal, State, and local laws (including regulations) and requirements related to protection of human health, natural or cultural resources, or the environment. (B) Inclusions.--The term ``environmental law'' includes-- (i) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.); (ii) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.); (iii) the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.); (iv) the Clean Air Act (42 U.S.C. 7401 et seq.); (v) the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.); (vi) the Toxic Substances Control Act (15 U.S.C. 2601 et seq.); (vii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.); (viii) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (ix) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). (2) Hazardous substance, pollutant or contaminant, release, and response action.--The terms ``hazardous substance'', ``pollutant or contaminant'', ``release'', and ``response action'' have the meanings given the terms in section 101 and other provisions of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.).

(b) Documentation of Existing Conditions.-- (1) In general.--Not later than 60 days after the date of enactment of this Act, the Tennessee Valley Authority shall provide the Secretary all documentation and information that exists on the environmental condition of the land and waters comprising the covered land. (2) Additional documentation.--The Tennessee Valley Authority shall provide the Secretary with any additional documentation and information regarding the environmental condition of the covered land as such documentation and information becomes available.

(c) Action Required.-- (1) Assessment.--Not later than 120 days after the date of enactment of this Act, the Tennessee Valley Authority shall

provide to the Secretary an assessment indicating what action, if any, is required under any environmental law on covered land. (2) Memorandum of understanding.--If the assessment concludes that action is required under any environmental law with respect to any portion of the covered land, the Secretary and the Tennessee Valley Authority shall enter into a memorandum of understanding that-- (A) provides for the performance by the Tennessee Valley Authority of the required actions identified in the assessment; and (B) includes a schedule providing for the prompt completion of the required actions to the satisfaction of the Secretary.

(d) Documentation Demonstrating Action.--The Tennessee Valley Authority shall provide the Secretary with documentation demonstrating that all actions required under any environmental law have been taken, including all response actions that are necessary to protect human health and the environment with respect to any hazardous substance, pollutant or contaminant, hazardous waste, hazardous material, or petroleum product or derivative of a petroleum product on covered land. (e) Continuation of Responsibilities and Liabilities.-- (1) In general.--The transfer of covered land under this Act, and the requirements of this section, shall not affect the responsibilities and liabilities of the Tennessee Valley Authority under any environmental law. (2) Access.--The Tennessee Valley Authority shall have access to the property that may be reasonably required to carry out a responsibility or satisfy a liability referred to in paragraph (1). (3) Additional terms and conditions.--The Secretary may require such additional terms and conditions in connection with the transfer of covered land under this Act as the Secretary considers to be appropriate to protect the interest of the United States concerning the continuation of any responsibilities and liabilities under any environmental law. (4) No effect on responsibilities or liabilities.--Nothing in this Act affects, directly or indirectly, the responsibilities or liabilities under any environmental law of any person with respect to the Secretary.

(f) Other Federal Agencies.--Subject to the other provisions of this section, a Federal agency that carried or carries out operations on covered land resulting in the release or threatened release of a hazardous substance, pollutant or contaminant, hazardous waste, hazardous material, or petroleum product or derivative of a petroleum product for which that agency would be liable under any environmental law shall pay-- (1) the costs of related response actions; and (2) the costs of related actions to remediate petroleum products or their derivatives.