Energy Security Pacts Act

Key Points

• The bill authorizes the Secretary of State to create long-term agreements called Energy Security Pacts with partner countries. These pacts aim to boost energy access, secure critical mineral supply chains, and counter economic coercion by diversifying where the U.S. gets essential resources.
• A new Office of Energy Security Pacts would be created within the State Department within 180 days, led by a Director who manages the development, negotiation, and monitoring of all pacts. An interagency council of leaders from 11 federal departments would coordinate the work.
• Only certain developing countries qualify for pacts: they must have income below the World Bank's loan threshold, be identified as strategically important by the U.S., and not be a foreign country of concern. Each pact can last up to 10 years, and the authority to create new pacts expires after 15 years.
• The bill includes guardrails to protect American workers and the environment. No funds can go to projects that would cause significant U.S. job losses, displace U.S. production, or create environmental or health hazards. Military assistance is also prohibited.
• Funds would come from existing State Department appropriations under the National Security Investment Programs heading and could be transferred to agencies like the Export-Import Bank, the U.S. International Development Finance Corporation, and the Millennium Challenge Corporation to carry out pact activities.