22 U.S.C. § 262m–2 — Environmental impact of assistance proposals

(a) Analysis by agencies, United States embassies and overseas missions of Agency for International Development; factors considered; affirmative investigation of adverse impacts; availability of information to public (1) When reviewing multilateral development bank assistance proposals, the Administrator of the Agency for International Development, working with the Secretaries of the Treasury and State, must make sure other agencies and relevant U.S. embassies and AID overseas missions are told to study, where feasible, the environmental impacts of proposed loans well before the banks approve them, to see whether the proposals will help the borrowing country develop sustainably. (2) As far as possible, these reviews must cover the project's economic viability, its harm to the environment, natural resources, public health, and indigenous peoples, and recommendations — including alternatives — for eliminating or reducing that harm. (3) If there is reason to think a loan is especially likely to cause substantial harm, the Administrator, working with the Secretaries of the Treasury and State, must make sure an affirmative investigation happens, done with relevant federal agencies. Information gathered this way must be made public unless it is classified for national security. (b) Evaluation by major shareholder governments prior to bank action on assistance proposals (1) The Secretary of the Treasury must instruct the U.S. Executive Directors at the multilateral development banks defined in section 262m–7(g) of this title to urge each bank's management and other directors to leave enough time between circulating assistance proposals and taking action on them, so major shareholder governments can evaluate the proposals. (2) The Secretary of the Treasury must instruct these Executive Directors to work with other countries' directors and bank management to: (A) Improve each bank's process for giving its board a complete, accurate record of public consultation before voting on projects with significant environmental effects. (B) Change bank procedures to consistently require public consultation on operational policy proposals or changes with significant environmental or social effects. (3) Progress under this subsection must be included in Treasury's required annual report to Congress on the banks' environmental performance. (c) Identification of proposals likely to have adverse impact; transmittal to Congress Based on the evaluation in subsection (a) and other available information, the Administrator of the Agency for International Development, working with the Secretaries of the Treasury and State, must identify assistance proposals likely to harm the environment, natural resources, public health, or indigenous peoples. These identified proposals must be sent to the House Committees on Appropriations and on Banking, Finance and Urban Affairs, and the Senate Committees on Appropriations and Foreign Relations, no later than June 30 and December 31 of each year after December 22, 1987. (d) Reports to Executive Directors; elimination or mitigation of adverse impacts The Secretary of the Treasury must forward reports on information received under subsection (a) to the U.S. Executive Director at the relevant bank, instructing them to seek to eliminate or reduce any adverse impacts the proposal might cause.