[House Report 107-119]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-119
======================================================================
REAUTHORIZATION OF THE TROPICAL FOREST CONSERVATION ACT OF 1998 THROUGH
FISCAL YEAR 2004
_______
June 28, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hyde, from the Committee on International Relations, submitted the
following
R E P O R T
[To accompany H.R. 2131]
[Including cost estimate of the Congressional Budget Office]
The Committee on International Relations, to whom was
referred the bill (H.R. 2131) to reauthorize the Tropical
Forest Conservation Act of 1998 through fiscal year 2004,
having considered the same, reports favorably thereon with
amendments and recommends that the bill as amended do pass.
TABLE OF CONTENTS
Page
The Amendment.................................................... 2
Purpose and Summary.............................................. 2
Background and Need for the Legislation.......................... 2
Committee Consideration.......................................... 3
Committee Oversight Findings..................................... 3
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Performance Goals and Objectives................................. 5
Constitutional Authority Statement............................... 5
Section-by-Section Analysis...................................... 5
Agency Views..................................................... 6
New Advisory Committees.......................................... 6
Congressional Accountability Act................................. 6
Federal Mandates................................................. 6
Changes in Existing Law Made by the Bill, as Reported............ 6
The Amendments
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. ELIGIBILITY FOR BENEFITS.
Section 805(a)(2) of the Tropical Forest Conservation Act of 1998
(22 U.S.C. 2431c(a)(2)) is amended by striking ``major''.
SEC. 2. AUTHORIZATION OF APPROPRIATIONS TO SUPPORT REDUCTION OF DEBT
UNDER THE FOREIGN ASSISTANCE ACT OF 1961 AND TITLE
I OF THE AGRICULTURAL TRADE DEVELOPMENT AND
ASSISTANCE ACT OF 1954.
(a) Reauthorization.--Section 806 of the Tropical Forest
Conservation Act of 1998 (22 U.S.C. 2431d) is amended by adding at the
end the following new subsection:
``(d) Authorization of Appropriations for Fiscal Years After Fiscal
Year 2001.--For the cost (as defined in section 502(5) of the Federal
Credit Reform Act of 1990) for the reduction of any debt pursuant to
this section or section 807, 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.''.
(b) Conforming Amendment.--Section 808(a)(1)(D) of the Tropical
Forest Conservation Act of 1998 (22 U.S.C. 2431f(a)(1)(D)) is amended
by striking ``to appropriated under sections 806(a)(2) and 807(a)(2)''
and inserting ``to be appropriated under sections 806(a)(2), 807(a)(2),
and 806(d)''.
SEC. 3. CHAIRPERSON OF THE ENTERPRISE FOR THE AMERICAS BOARD.
Section 811(b)(2) of the Tropical Forest Conservation Act of 1998
(22 U.S.C. 2431i(b)(2)) is amended by striking ``from among the
representatives appointed under section 610(b)(1)(A) of such Act or
paragraph (1)(A) of this subsection'' and inserting ``and shall be the
representative from the Department of State appointed under section
610(b)(1)(A) of such Act''.
Amend the title so as to read:
A bill to reauthorize the Tropical Forest Conservation
Act of 1998 through fiscal year 2004, and for other purposes.
Purpose and Summary
To Reauthorize the Tropical Forest Conservation Act of 1998
through fiscal year 2004. This bill authorizes appropriations
for debt reduction for eligible countries of $50 million for
FY2002, $75 million for FY2003, and $100 million for FY2004.
Background and Need for the Legislation
The bill reauthorizes the Tropical Forest Conservation Act
(TFCA) to protect the world's most valuable tropical forests
through ``debt for nature'' mechanisms. At present there are 11
nations on three continents that are interested in negotiating
debt reduction agreements under the TFCA. This market-oriented
conservation program is based on the previous Bush
Administration's Enterprise for the Americas Initiative
allowing the President to restructure debt in exchange for
conservation efforts in Latin America. TFCA expands this
initiative to tropical forests on a sustained basis worldwide.
Tropical forests act as ``carbon sinks'' absorbing massive
quantities of carbon dioxide from the atmosphere, thereby
reducing greenhouse gases.
Committee Consideration
On June 20, 2001, the Committee met in open session and
ordered favorably reported the bill H.R. 2131, as amended, by
voice vote, a quorum being present.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of House Rule XIII is inapplicable because
this legislation does not provide new budgetary authority or
increased tax expenditures.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the bill, H.R. 2131, the following estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 21, 2001.
Hon. Henry J. Hyde, Chairman,
Committee on International Relations,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2131, a bill to
reauthorize the Tropical Forest Conservation Act of 1998
through fiscal year 2004.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Joseph C.
Whitehill, who can be reached at 226-2840.
Sincerely,
Dan L. Crippen, Director.
Enclosure
cc:
Honorable Tom Lantos
Ranking Democratic Member
H.R. 2131--A bill to reauthorize the Tropical Forest Conservation Act
of 1998 through fiscal year 2004, and for other purposes.
SUMMARY
H.R. 2131 would extend the Tropical Forest Conservation Act
for three years through 2004 and authorize the appropriation of
$225 million for the cost of implementing the act over that
period. The bill would expand the act to include additional
countries and it would require that the State Department chair
the interagency board that oversees the tropical forest program
and a companion Enterprise-for-the-Americas program. Assuming
the appropriation of the authorized amounts, CBO estimates that
implementing the bill would cost $221 million over the 2002-
2006 period. Because H.R. 2131 would not affect direct spending
or receipts, pay-as-you-go procedures would not apply.
The Tropical Forest Conservation Act authorizes the
Secretary of State to negotiate agreements with eligible
countries to create local funds administered by local boards
with the authority to make grants to preserve, maintain, and
restore tropical forests. The local funds receive a stream of
payments generated by modifying the terms of outstanding
development assistance or food-aid debt owed to the United
States. The debt modifications include authority to reduce and
to restructure debt, to swap the debt, or to sell the debt back
to an eligible country in ways that will generate income for
the local funds. The amounts authorized by H.R. 2131 would be
used to cover the cost, as defined by the Federal Credit Reform
Act, of modifying the debt.
H.R. 2131 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of H.R. 2131 is shown in the
following table. The costs of this legislation fall within
budget function 150 (international affairs).
By fiscal year, in millions of dollars
----------------------------------------------------------------------------------------------------------------
2001 2002 2003 2004 2005 2006
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for Debt Reduction of
Developing Countries with Tropical Forests
Budget Authority \1\ 13 0 0 0 0 0
Estimated Outlays 6 13 0 0 0 0
Proposed Changes
Authorization Level 0 50 75 100 0 0
Estimated Outlays 0 13 36 69 64 39
Spending Under H.R. 2131 for Debt Reduction of Developing
Countries with Tropical Forests
Authorization Level \1\ 13 50 75 100 0 0
Estimated Outlays 6 26 36 69 64 39
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year for the cost of implementing the Tropical Forest
Conservation Act of 1998.
BASIS OF ESTIMATE
CBO assumes that the authorized amounts would be
appropriated by the start of each fiscal year and that outlays
would follow historical spending patterns.
PAY-AS-YOU-GO CONSIDERATIONS:
None
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
H.R. 2131 contains no intergovernmental or private-sector
mandates as defined in UMRA and would not affect the budgets of
state, local, or tribal governments.
ESTIMATE PREPARED BY:
Federal Costs: Joseph C. Whitehill (226-2840)
Impact on State, Local, and Tribal Governments: Elyse Goldman
(225-3220)
Impact on the Private Sector: Lauren Marks (226-2940)
ESTIMATE APPROVED BY:
Robert A. Sunshine
Assistant Director for Budget Analysis
Performance Goals and Objectives
The goal of this legislation is to reauthorize the TFCA
(P.L. 105-214), protecting the world's valuable tropical
forests by restructuring debt in exchange for conservation
efforts.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in article 1, section 8, clause 18 of the
Constitution.
Section-by-Section Analysis and Discussion
To reauthorize the Tropical Forest Conservation Act of 1998
through fiscal year 2004.
Section 1--Eligibility for Benefits.
Section 1 allows more countries to be eligible for
benefits. In section 805(a)(2) of the Tropical Forest
Conservation Act of 1998 (P.L. 105-214), the threshold for
investment reforms for a country to become eligible for
assistance has been changed by dropping ``major'' before
``investment reforms.'' The Committee is concerned that the
Treasury Department is insisting on comprehensive foreign
investment protection regimes, including extraneous trade-
related issues, in order for countries to participate in this
Act. However, the Committee believes that countries such as the
Philippines and Costa Rica made significant progress in
improving the climate for foreign investment, and should be
made eligible to participate in the provisions of this Act in
light of this progress as well as the critical importance of
protecting the tropical forests in these countries.
The Committee wishes to clarify that the geographical
limits defining eligibility under the Tropical Forest
Conservation Act should be extended to any country or area that
is between 30 degrees north and 30 degrees south of the
Equator. The reason the Committee encourages this extension is
due to U.S. Agency for International Development's
interpretation that only countries lying between 23.5 degrees
north or south of the equator are eligible for benefits under
this Act. This interpretation excludes certain tropical-type
forests such as the forests of the Terai region in Southern
Nepal and Northern India as well as large parts of the Atlantic
forest in Brazil, Argentina, and Paraguay. The Committee
believes that these valuable regions should be eligible under
this Act in order to encourage their conservation.
Section 2--Authorization of Appropriations to Support Reduction of Debt
under the Foreign Assistance Act of 1961 and Title I of the
Agricultural Trade Development and Assistance Act of 1954.
Section 2 authorizes appropriations of $50,000,000 for
fiscal year 2002, $75,000,000 for fiscal year 2003,
$100,000,000 fiscal year 2004.
Section 3--Chairpersons of the Enterprise for the Americas Board.
Section 3 specifies that the chairperson of the Enterprise
for the Americas Board shall be a representative from the
Department of State.
Agency Views
The Administration supports the bill.
New Advisory Committees
H.R. 2131 does not establish or authorize any new advisory
committees.
Congressional Accountability Act
H.R. 2131 does not apply to the legislative branch.
Federal Mandages
H.R. 2131 provides no Federal mandates.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
TROPICAL FOREST CONSERVATION ACT OF 1998
* * * * * * *
PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS
* * * * * * *
SEC. 805. ELIGIBILITY FOR BENEFITS.
(a) In General.--To be eligible for benefits from the
Facility under this part, a country shall be a developing
country with a tropical forest--
(1) whose government meets the requirements
applicable to Latin American or Caribbean countries
under paragraphs (1) through (5) and (7) of section
703(a) of this Act; and
(2) that has put in place [major] 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.
* * * * * * *
SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF
CONCESSIONAL LOANS UNDER THE
FOREIGN ASSISTANCE ACT OF 1961.
(a) * * *
* * * * * * *
(d) Authorization of Appropriations for Fiscal Years After
Fiscal Year 2001.--For the cost (as defined in section 502(5)
of the Federal Credit Reform Act of 1990) for the reduction of
any debt pursuant to this section or section 807, 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.
* * * * * * *
SEC. 808. 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) * * *
* * * * * * *
(D) Authorization of appropriations.--For
the cost (as defined in section 502(5) of the
Federal Credit Reform Act of 1990) for the
reduction of any debt pursuant to subparagraph
(A), amounts authorized [to appropriated under
sections 806(a)(2) and 807(a)(2)] to be
appropriated under sections 806(a)(2),
807(a)(2), and 806(d) shall be made available
for such reduction of debt pursuant to
subparagraph (A).
* * * * * * *
SEC. 811. BOARD.
(a) * * *
(b) Additional Membership.--
(1) * * *
(2) Chairperson.--Notwithstanding section 610(b)(2)
of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1738i(b)(2)), the Enterprise for
the Americas Board shall be headed by a chairperson who
shall be appointed by the President [from among the
representatives appointed under section 610(b)(1)(A) of
such Act or paragraph (1)(A) of this subsection] and
shall be the representative from the Department of
State appointed under section 610(b)(1)(A) of such Act.
* * * * * * *