Energy Resource Governance Initiative Act of 2021
This bill establishes the Energy Resource Governance Initiative within the Department of State to promote responsible and sustainable mining practices through international collaboration.
The initiative must seek to foster integrated and resilient supply chains, responsible critical mineral sourcing, and mineral-sector good governance. It must also seek to minimize potential adverse impacts of increasing renewable energy demand on mineral-rich countries.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2785 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2785
To establish in the Department of State the United States Energy
Resource Governance Initiative to promote sound mining sector
governance and resilient energy mineral supply chains by bringing
countries together to engage on advancing governance principles,
sharing best practices, and encouraging a level playing field for
investment, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2021
Mr. Kinzinger (for himself and Ms. Spanberger) introduced the following
bill; which was referred to the Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To establish in the Department of State the United States Energy
Resource Governance Initiative to promote sound mining sector
governance and resilient energy mineral supply chains by bringing
countries together to engage on advancing governance principles,
sharing best practices, and encouraging a level playing field for
investment, 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 Resource Governance
Initiative Act of 2021''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) diverse and resilient energy and mineral supply chains
are vital for the United States, our partners and allies, and
for global economic stability;
(2) many green and renewable energy technologies, including
electric vehicles, wind turbines, and battery storage
technology, require high inputs of specific energy minerals,
which may cause the global demand for these products to
skyrocket over the coming decades;
(3) United States and international efforts to drive global
emission reductions and net zero goals rely on these critical
minerals to deploy clean energy technologies;
(4) vulnerable critical mineral supply chains present a
significant risk to United States national security interests,
including--
(A) overreliance on a single or limited supply
source for critical mineral inputs; and
(B) poor mineral sector governance, including weak
labor standards, limited environmental protections,
failure to develop a social license to operate, which
deters responsible investment and limits the long-term
sustainability of mining operations;
(5) the People's Republic of China (PRC) leads the world in
the mining and production of rare earth metals, comprising
nearly 90 percent of the global market, and it is in the
national security interest of the United States to provide an
alternative to PRC domination of these supply chains; and
(6) the United States should build upon the efforts made
with the Governments of Australia, Botswana, Canada, and Peru
in creating the Energy Resource Governance Initiative (ERGI) to
advance governance principles and best practices for mineral
extraction.
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States to--
(1) promote sound mining sector governance and resilient
energy mineral supply chains by bringing countries together to
engage on advancing governance principles, sharing best
practices, and encouraging a level playing field for
investment;
(2) encourage governments to incorporate responsible
mineral supply chain sourcing principles into their national
climate strategies and clean energy technology procurement
plans; and
(3) encourage companies, including green and renewable
energy, to source 100 percent of their critical mineral supply
from responsible and environmentally sound supply chains by
2030.
SEC. 4. ENERGY RESOURCE GOVERNANCE INITIATIVE.
(a) Establishment.--There is established in the Department of State
an entity to be known as the ``Energy Resource Governance Initiative''
(ERGI).
(b) Objectives.--The objectives of the Energy Resource Governance
Initiative established under subsection (a) are to carry out the
following:
(1) Promote responsible and sustainable mining practices
globally by enabling sharing of best practices for mineral
extraction management and governance.
(2) Foster integrated and resilient supply chains and help
identify options to diversify and strengthen supply chains.
(3) Facilitate trade and industry connections to promote
responsible critical mineral sourcing and advance mineral
sector good governance.
(4) Facilitate mineral sector technical assistance to
partner countries to identify new supply chain opportunities,
sustainably and responsibly commercialize critical mineral
sector resources, and mitigate supply chain vulnerabilities.
(5) Encourage the international community to incorporate
responsible mineral supply chain sourcing principles, including
resource surveys, into their national climate strategies and
clean energy technology procurement plans.
(6) Seek to minimize the adverse impact that increasing
renewable energy demand could have on mineral-rich countries.
(c) Eligible Activities.--Activities carried out under the Energy
Resource Governance Initiative shall--
(1) be carried out in countries in which the Secretary of
State determines there is an adequate level of partner country
commitment, partner country needs, absorptive capacity,
sustainment capacity, and efforts of private sector donors;
(2) be closely coordinated among diplomatic and development
missions, and relevant participating Federal departments and
agencies; and
(3) complement and enhance efforts to promote democratic
governance, the rule of law, human rights, and economic growth.
(d) Diplomatic and Political Support.--The Secretary of State, in
coordination with other relevant Federal departments and agencies,
shall provide diplomatic and political support to partner countries,
including by using the diplomatic and political influence and expertise
of the Department of State to build the capacity of such countries to
resolve any impediments to the implementation of activities pursuant to
subsection (c).
(e) Coordination With Private Sector.--The Secretary of State,
through the Bureau of Energy Resources of the Department of State,
shall coordinate with the United States International Development
Finance Corporation to mobilize private sector engagement and
partnership to facilitate the objectives described in subsection (b),
including by supporting investment frameworks that attract top tier
private sector investment focused on responsible mineral extraction.
(f) Report.--Not later than 180 days after the date of the
enactment of this Act and annually thereafter for the following ten
years, the Secretary of State shall provide a report to the appropriate
congressional committees that includes assessments of--
(1) progress towards achievement of the objectives
described in subsection (b);
(2) success of coordination with the private sector
pursuant to subsection (e);
(3) efforts by the Chinese Communist Party or related
entities to influence the policies of ERGI partner countries
with regard to their mining sectors or supply chains; and
(4) how ERGI is furthering the national security interests
of the United States.
(g) Definition.--In this section, the term ``appropriate
congressional committees'' means--
(1) the Committee on Foreign Affairs of the House of
Representatives; and
(2) the Committee on Foreign Relations of the Senate.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Foreign Affairs.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by Voice Vote.
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