[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2673 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 2673
To ensure European, including Ukrainian, energy security, protect,
modernize, and rebuild European energy resources and infrastructure
according to accepted principles of international good governance, and
support European efforts to reduce the reliance of allied European
countries on imported Russian energy resources, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 27, 2023
Mr. Menendez (for himself and Mr. Risch) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To ensure European, including Ukrainian, energy security, protect,
modernize, and rebuild European energy resources and infrastructure
according to accepted principles of international good governance, and
support European efforts to reduce the reliance of allied European
countries on imported Russian energy resources, 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 ``Responding to the Energy Security
Crisis in Ukraine and Europe (RESCUE) Act of 2023''.
SEC. 2. SENSE OF CONGRESS ON ENERGY RESOURCE IMPLICATIONS OF THE
RUSSIAN FEDERATION'S INVASION OF UKRAINE.
It is the sense of Congress that the United States should support
allies and partners' efforts to reduce dependence on imported Russian
energy resources and enhance energy security in a manner that
reinforces the sovereignty of these democratic countries by
diversifying and securing their energy supplies and mobilizing domestic
energy resource production by--
(1) working to ban all imports of Russian energy resources
to the United States;
(2) increasing the access of European partners and allies
to immediate energy resources necessitated by the Russian
Federation's invasion of Ukraine and the resulting global
energy crisis;
(3) supporting Europe's development and deployment of
emerging and advanced energy technologies to ensure countries'
energy security and diversification away from Russian-
controlled energy resources;
(4) recognizing that the severity and cost of Russia's
damage to Ukraine's energy infrastructure is dynamic and
continues to worsen, as explained in the World Bank's second
Ukraine Rapid Damage and Needs Assessment for February 2022-
February 2023, which estimates that--
(A) current damage and losses to Ukraine's energy
sector is estimated to be $27,000,000,000, which is
more than double the level in the fall of 2022
($12,000,000,000);
(B) damage to power, gas, and heating
infrastructure and coal mining, as of February 24,
2023, was above $10,000,000,000 as compared to an
estimated $2,000,000,000 on June 1, 2022;
(C) the largest share of damage is in the
electricity production and transmission sector and is
estimated to be close to $6,500,000,000 in damage; and
(D) Ukraine's gas sector has sustained an estimated
$1,200,000,000 in damage, which includes damage to gas
distribution infrastructure, as well as damage reported
by the gas transmission system operator;
(5) supporting Ukraine's efforts to rebuild and modernize
its energy infrastructure, according to internationally
accepted standards of transparency and good governance,
including promoting long-term energy independence from Russia
with reliable energy resources in line with the Government of
Ukraine's efforts to integrate with the energy markets and
principles of Europe;
(6) supporting Ukraine's prospective membership in and
integration with the European Union (EU), including through
alignment with policies like the EU's 20/20/20 objectives and
through the synchronization and commercial integration of the
Ukrainian, Moldovan, and Baltic electric power systems with the
central European power system, operated by the member of the
European Network of Transmission System Operators for
Electricity (ENTSO-E);
(7) utilizing the Development Finance Corporation, which
has unique capabilities to help finance, convene other
countries' development finance institutions, and mobilize
private finance in support of efforts to restore and
reconstruction Ukraine's energy sector and improve European
energy security;
(8) condemning attacks and any other efforts by Russian
Federation forces, Russian Federation officials, or its proxies
to cut off Ukrainian electricity generation units or portions
of the Ukrainian electrical grid and annex these assets into
the Russian electrical grid system;
(9) condemning all efforts by the Russian Federation, its
proxies, or other malign actors to interfere with Ukraine's
power networks, electricity transmission, and electricity
generation units, including theft, destruction, or acts of
sabotage of infrastructure;
(10) providing technical assistance to Ukraine, Moldova,
and European allies and partners of the United States to build
resilience and incident response and recovery capacities
against cyberattacks on energy infrastructure;
(11) supporting Ukrainian efforts to meet European and
industry standards on corporate governance, transparency in
contracting and procurement, and independence from political
pressure;
(12) working with the International Atomic Energy Agency
(IAEA) to implement needed safety and security requirements;
(13) providing support to Eastern and Central European
countries whose energy import, storage, and generation capacity
was negatively affected by the Russian Federation's invasion of
Ukraine, and improving the resilience and safety of nuclear
energy infrastructure in the region, including at Ukrainian
nuclear facilities;
(14) cooperating on activities to support Eastern and
Central European countries affected by Russian Federation
forces' invasion of Ukraine, in keeping with the European
Commission's plan ``to make Europe independent from Russian
fossil fuels well before 2030'', including via measures ``to
respond to rising energy prices'' and efforts to ``replenish
gas stocks for next winter''; and
(15) encouraging United States private sector investment
and public-private partnerships in the Three Seas Initiative to
facilitate resilient development of European energy, transport,
and digital sectors.
SEC. 3. SUPPORTING UKRAINE'S ENERGY SECTOR RECONSTRUCTION, SECURITY,
AND MODERNIZATION.
(a) In General.--The Secretary of State, in coordination with the
heads of relevant Federal departments and agencies, as defined in
section 11, shall conduct activities to increase Ukrainian access to
energy resources to meet immediate needs, reconstruct energy
infrastructure damaged by the Russian Federation forces' attacks, and
modernize and reconstruct Ukraine's energy sector overall in accordance
with international standards of efficiency, transparency, and good
governance. These efforts to assist the modernization of Ukraine's
energy sector should begin immediately, where possible.
(b) Purposes.--The Secretary of State, in consultation with the
Administrator of the United States Agency for International Development
and heads of other relevant Federal departments and agencies, shall
provide assistance to the Government of Ukraine for the acquisition of
energy resources and equipment to meet critical needs and prevent power
disruption resulting from attacks, malevolent acts, or other actions
perpetrated by the Russian Federation or its proxies.
(c) Notification.--Congress shall be notified of any provision of
assistance over $500,000 provided under subsection (b) not less than 14
days prior to the date of intended obligation of funds.
(d) Certification Requirement.--Of the funds authorized to be
appropriated under section 10, not more than half shall be made
available until the Secretary submits a certification to the relevant
congressional committees that--
(1) the Supervisory Boards of UkrEnergo, Naftogaz, and
Energoatom remain independent and capable of executing their
roles and responsibilities, free from undue political or
oligarchic influence;
(2) UkrEnergo, Naftogaz, and Energoatom continue to follow
international best practices, including applicable IMF
standards and conditions, related to board selection, corporate
governance, anti-corruption measures, and transparent
accounting and procurement; and
(3) United States assistance is not supporting grants,
contracts, or subcontracts to entities owned or controlled by
the Government of the People's Republic of China.
SEC. 4. EFFORTS TO REDUCE EUROPEAN RELIANCE ON RUSSIAN ENERGY.
(a) Establishment.--The Secretary of State, in coordination with
the heads of the relevant Federal departments and agencies, shall
implement and conduct activities to reduce the reliance of qualified
Central, Eastern, and Southeastern European countries on energy
resources controlled or exported by Russia and diversify energy
resources, supplies, and routes by--
(1) supporting--
(A) the identification and coordination of
international financial products and technical
assistance supporting planning activities for improving
or restoring energy security, providing operational
efficiencies in energy systems, recovering energy
resources, or modernizing energy systems;
(B) the procurement of resources, materials,
equipment, and services that support the efforts
described in subparagraph (A);
(C) the construction of infrastructure related to
the production of energy, generation, transmission, and
distribution of electricity and powering of
transportation that does not rely wholly or principally
on Russian energy resources; and
(D) the reconstruction or modernization of energy-
related infrastructure damaged or destroyed due to the
Russian Federation's war against Ukraine, in accordance
with internationally accepted norms of transparency and
corporate governance;
(2) providing qualified Central, Eastern, and Southeastern
European countries, in accordance with subsection (b), under
such terms and conditions as the Secretary of State determines
appropriate, with awards, loans, or loan guarantees to carry
out projects to develop or purchase assets, resources,
materials, or equipment, that can reduce the reliance of those
countries on exported Russian energy resources; and
(3) providing technical assistance to qualified Central,
Eastern, and Southeastern European countries, as defined under
section 11 as the Secretary of State, in coordination with the
heads of relevant Federal departments and agencies, determines
necessary to reduce those countries' reliance on Russian energy
resources.
(b) Country Prioritization and Exceptions.--The Secretary of State,
in consultation with the heads of relevant Federal departments and
agencies, shall prioritize the provision of support, including
financial support to qualified Central, Eastern, and Southeastern
European countries that are determined to be vulnerable to Russian
coercive energy practices.
(c) Partnerships.--The Secretary of State, in coordination with the
heads of other relevant Federal departments and agencies, may carry out
the activities established under subsection (a), including pursuing
blended finance opportunities and joint investment projects with other
appropriate development finance institutions of other countries.
(d) Authority To Enter Into Arrangements.--In carrying out the
activities established under subsection (a), the Secretary of State, in
coordination with the heads of the relevant Federal departments and
agencies, may enter into one or more arrangements directly with
qualified Central and Eastern European countries and third parties
under such terms and conditions as the Secretary of State determines
appropriate.
(e) Domestic Sourcing Considerations.--
(1) In general.--Except as provided in paragraph (2), the
Secretary of State shall, to the maximum extent practicable,
prioritize support for activities described in paragraph (1),
(2), or (3) of subsection (a) that--
(A) promote manufacturing in the United States; or
(B) utilize resources, services, materials, or
equipment that is sourced in the United States.
(2) Exception.--Paragraph (1) shall not apply with respect
to an activity described in paragraph (1), (2), or (3) of
subsection (a) if the Secretary of State certifies that the
activity cannot reasonably satisfy the criteria set forth in
subparagraphs (A) and (B) of paragraph (1) of this subsection.
(f) Reports.--Not later than 1 year after the date of the enactment
of this Act, and annually thereafter for 3 years, the Secretary of
State shall submit to the Committee on Foreign Relations and the
Committee on Energy and Natural Resources of the Senate and the
Committee on Foreign Affairs and the Committee on Energy and Commerce
of the House of Representatives a report that--
(1) identifies any resources, materials, or equipment
developed, produced, procured, or provided pursuant to the
activities described in subsection (a); and
(2) provides an analysis of how such activities benefit
United States energy resource suppliers and equipment
manufacturers.
SEC. 5. UKRAINE AND MOLDOVA INTEGRATION INTO THE EUROPEAN POWER GRID.
(a) Technical Assistance and Consultation.--The Administrator of
the United States Agency for International Development, under the
direction of the Secretary of State and in coordination with heads of
relevant Federal agencies as described in this section, shall--
(1) provide technical assistance and expert consultation to
the Government of Moldova, the Government of Ukraine, the
European Commission, and relevant stakeholders in support of
completing the integration of Moldova and Ukraine into the
ENTSO-E system in order to bolster the stability of Moldova and
Ukraine's electricity supply;
(2) leverage available expertise to support full
commercialization of Moldova and Ukraine's interconnection with
ENTSO-E systems; and
(3) engage with European Union counterparts in support of
full commercialization of Moldova and Ukraine's interconnection
with the ENTSO-E system.
(b) Use of Transfer Authorities.--The Secretary of Energy shall
take full advantage of transfer authorities to allow for maximum
flexibility in utilizing expertise and resources within the
Department's Offices of Electricity and Cybersecurity, Energy Security,
and Emergency Response.
(c) Concurrence for Activities Related to Activities for Responding
to the Situation in Ukraine.--The Secretary of Energy shall only act
with the concurrence of the Secretary and the Administrator when
executing activities pursuant to title IV of the Ukraine Supplemental
Appropriations Act, 2022 (division N of Public Law 117-103; 136 Stat.
780) and when appropriate transfer amounts to the Department of State
and the United States Agency for International Development to carry out
such activities.
(d) Sense of Congress.--It is the Sense of Congress that the
European Union should work expeditiously to support the synchronization
of the Baltic States' grid with ENTSO-E.
SEC. 6. INITIATIVES FOR TECHNICAL ASSISTANCE FOR GRID MODERNIZATION,
ENERGY EFFICIENCY, AND ENERGY STORAGE IN QUALIFIED
CENTRAL AND EASTERN EUROPEAN COUNTRIES.
(a) In General.--The Secretary of State, in consultation with the
heads of the relevant Federal departments and agencies, shall support
new and existing initiatives, as appropriate, to provide technical
assistance and expertise on electrical grids, energy efficiency, and
energy storage integration into pre-existing and new power facilities
improvements in qualified Central and Eastern European countries for
purposes such as--
(1) expanding and improving the reliability, flexibility,
and resilience of the electrical grid to reach all regions and
populations;
(2) developing decentralized power grids and microgrids or
distributed energy resources in areas in which connection to
the larger electrical grid is challenging;
(3) supporting initiatives of qualified Central, Eastern
and Southeastern European countries to optimally integrate
renewable and clean energy into their electrical grids;
(4) enhancing the interconnectivity of electrical grids
across Central and Eastern Europe;
(5) developing standards for advanced energy technologies,
smart buildings, and data centers;
(6) increasing deployment of smart meters, heat pumps, and
other energy efficiency technologies;
(7) increasing the energy efficiency of buildings,
appliances, and the industrial sector;
(8) improving pollution controls and the efficiency of
district heating systems and fossil fuel electric generating
units;
(9) evaluating the feasibility of retrofitting existing
energy production facilities with appropriate energy storage
technologies and encouraging and supporting the deployment of
energy storage retrofits when practicable; and
(10) providing technical assistance and support for
planning, engineering, and deployment of energy storage systems
for new and existing power production facilities, including
promoting, to the extent practicable--
(A) regulatory reforms and transparency of power
production, delivery, and pricing to support long-term
market-based energy storage;
(B) nondiscriminatory reliable and affordable
energy storage projects to promote economic growth and