60

1 able to, or to be made available in connection with such 2 functions, as may be necessary to carry out the provisions 3 of this Act. The Administrator shall provide for the termi4 nation of the affairs of all entities terminated by this Act 5 and for such further measures and dispositions as may 6 be necessary to effectuate the purposes of this Act.

7 SEC. 307. PROPOSED CHANGES IN LAW.

8

Not later than 1 year after the date of enactment 9 of this Act, the Director of the Office of Management and 10 Budget shall submit to the Congress a description of any 11 changes in Federal law necessary to reflect abolishments, 12 transfers, terminations, and disposals under this Act.

13 SEC. 308. CERTAIN VESTING OF FUNCTIONS CONSIDERED

14

15

TRANSFERS.

For purposes of this Act, the vesting of a function

16 in a department or office pursuant to reestablishment of 17 an office shall be considered to be the transfer of the func

1

234

5

6

7

8

9

10

11

12

13

61

(2) AGENCY.-The term "Agency" means the

Commerce Programs Resolution Agency.

(3) FUNCTION.-The term "function" includes

any duty, obligation, power, authority, responsibility, right, privilege, activity, or program.

(4) OFFICE. The term "office" includes any office, administration, agency, bureau, institute, council, unit, organizational entity, or component thereof.

(5) WIND-UP PERIOD.-The term "wind-up period" means the period beginning on the effective date specified in section 109(a) and ending on the termination date specified in section 106(d).

14 SEC. 310. LIMITATION ON ANNUAL EXPENDITURES FOR

15

16

CONTINUED FUNCTIONS.

The amount expended by the United States each fis

17 cal year for performance of a function which immediately 18 before the effective date of this section was authorized to 19 be performed by an agency, officer, or employee of the De20 partment of Commerce may not exceed 75 percent of the 21 total amount expended by the United States for perform22 ance of that function during fiscal year 1994.

PREPARED STATEMENT OF THE INTERNATIONAL ENERGY
DEVELOPMENT COUNCIL

This testimony is being presented by the International Energy Development Council (IEDC), a group of U.S. companies each involved with the development of various privately-financed power projects around the world. The IEDC strongly supports continuation of the export promotion programs currently operated by the Department of Commerce and believes that increased export of U.S. goods and services ought to be an ongoing priority of the United States government.

The business opportunities for U.S. companies investing in developing areas of the world are enormous. For example, the worldwide market for privately-financed power projects is expected to be $100 billion per year through the end of this decade. This market represents great export potential and exports are important as they: 1) support about 15,000 to 20,000 U.S. jobs for every $1 billion in exports, 2) create jobs which pay 13-17% higher wages than non export-related jobs, and 3) represent the fastest growing sector of the U.S. economy.

Further, the United States is well-positioned to capture a large percentage of this rapidly growing (and lucrative) private power market. U.S. companies have been developing, financing, constructing and operating complex private power projects domestically for approximately 20 years. Also, we have worldwide leadership in providing technological leadership and equipment, such as turbines and boilers, for electric generation facilities. U.S. businesses clearly have a significant market "edge" and to build upon this current situation the U.S. Government can, and is, helping to stimulate international trade for U.S. companies, particularly in the power sector of big emerging markets.

The competition is intense. The governments of our foreign competitors are investing significant resources into helping their companies win business around the world. The U.S. Government must provide the same level of strong and effective government support to American firms otherwise U.S. firms may be unable to compete for profitable international power projects. Unfortunately, the United States currently ranks last in proportional expenditures for export promotion in comparison to our major trading partners. The message is simple: if we lose in these burgeoning power markets, and other kinds of infrastructure development markets, we will lose an opportunity to create a vast number of high wage jobs and, in the end, our country's future economy will suffer.

The export promotion programs at the Commerce Department (housed within the International Trade Administration (ITA)) have assisted greatly in securing worldwide U.S. competitiveness. The following are some examples of how these programs have supported export and trade promotion.

First, the department is the only agency with a cabinet-level voice whose sole purpose is to further the worldwide interests and opportunities for U.S. industry. Every one of our foreign competitors has a secretary or minister whose purpose is to enhance their own nation's economic interests in the global market place, including Japan's Minister of International Trade and Industry and Germany's Minister of Economics.

Second, the Trade Promotion Coordinating Committee (TPCC), administered out of the ITA, coordinates the export promotion activities of 19 different federal agencies and makes “1 stop shopping" for government export support more readily available.

Third, the Advocacy Center within the Commerce Department makes available for industry all information regarding major business opportunities in foreign markets and works with foreign ministers and Ambassadors to bring the full strength of the U.S government together in support of U.S. bidders. The Advocacy Center helps to provide the facts, expertise and follow-up capacity needed by U.S. companies to win major power and other infrastructure deals abroad. Fourth, the "Big Emerging Markets" effort focuses the full strength of the U.S. Government on 10 countries or regions of the world which represent important markets for U.S. industry. As opportunities arise for exports and investment overseas, several departments of the Federal Government (i.e. Commerce, State, SBA, Eximbank, OPIC, etc.) will work together to ensure that U.S. bidders are competing on a "level playing field".

These export promotion programs have been successful. In 1994, Commerce-led efforts resulted in U.S. firms winning over $46 billion in foreign business deals, with a U.S. export content of nearly $20 billion, thus supporting over 300,000 jobs. Based on preliminary figures, at least the same amount is expected to be generated this year. Further, for every taxpayer dollar Commerce spends for export promotion, $10.40 is returned to the U.S. Treasury through tax revenues generated by exports.

Attached to this testimony is a description of the ways in which members of the IEDC have been supported by the export promotion programs at the Department of Commerce.

In conclusion, U.S. Government support is imperative to ensure that American companies can continue to compete fairly for power projects and infrastructure development contracts around the world. By coordinating the Administration's export promotion programs and advocating on behalf of U.S. business, the export promotion programs at the Department of Commerce have been effective in helping American firms to win business overseas and to directly benefit the U.S. economy. The IEDC urges Congress to continue these valuable export-related programs.

WAYS IN WHICH THE DEPARTMENT OF COMMERCE HAS SUPPORTED MEMBER COMPANIES OF THE INTERNATIONAL ENERGY DEVELOPMENT COUNCIL 1

Bechtel: The Department of Commerce advocated for several U.S. companies including Bechtel for the Tiete Parana Valley Waterway Project in Brazil.

The Advocacy Center is also working with Bechtel on the Alqueva Dam Complex in Portugal to build a very large dam complex to provide irrigation and hydropower. The Advocacy Center is also working with other U.S.G. agencies to offer its support for the U.S. companies pursuing the TATAN independent power project in Tai

wan.

Black and Veatch: Commerce advocated on behalf of Black and Veatch with respect to the company's Power Transmission Lines, Phase IV project in Qatar last February.

Black and Veatch and Finolex signed an agreement with the Kerala State Electricity Board to build a power plant in Kerala State, India. The Advocacy Center is following the progress of the project closely.

McDermott/Babcock and Wilcox: The Department of Commerce advocated on behalf of Babcock_and Wilcox regarding the company's Kemerkoy Flue Gas Desulphurization Project.

The Advocacy Center has also been working with Babcock and Wilcox, providing advocacy support for U.S. industry bidding on the Korean Electric Power Corporation's $300 million Flue Gas Desulphurization project in Korea. The winner of the project will have a chance to participate in the next phase of the project which will be worth an additional $700 million.

Babcock and Wilcox also successfully negotiated a contract with the Israeli Electric Corporation to provide two 550 MW pulverized coal/oil-fired boilers for the Rutenberg power station in southern Israel. The total value of the project was $140 million, $89 million of which represents the U.S. content. Eximbank offered the financing for the project. The Department of Commerce and the Embassy interest in the project allowed the project to gain momentum in the final stages of the contract negotiations.

Community Energy Alternatives: The Department of Commerce provided advocacy support on the company's behalf on their Bhilai Thermal Power Station project and the Ib Valley 1&2 Power Project in India.

The Advocacy Center in cooperation with the Embassy and the Department of Energy is supporting the Taishan power plant in China which is pursued by several U.S. companies including CEA.

Destec Energy: The U.S. and Foreign Commercial Service (US&FCS) is providing the advocacy support for Destec's two power projects in Turkey: Kankiri Orta and Adiyaman Golbasi.

Enron: Enron signed a $1.1 billion contract for offshore oil and gas production in India with advocacy support from the Department of Commerce.

The Advocacy Network agencies worked very hard with Enron and the Government of India to assure the completion of the private power project in Dabhol which is currently under review by the State of Maharashtra.

The Advocacy Center and the Embassy are also working closely with the company in providing advocacy support for the company's Marmara Ereglisi power project in Turkey and the Nowa Sarzyna power project in Poland.

The Department of Commerce also offered advocacy support last November for the company's East Kalimanta power project in Indonesia.

Entergy: Entergy Corporation, in partnership with the Lippo Group of Hong Kong, signed an MOU with the North China Power Group regarding the cooperative management and extension of China's Datong's No 2. power plant. Several U.S.G.

1 Information provided by the Department of Commerce.

agencies as well as the Embassy offered their support for this $1.2 billion project which was awarded to the Lippo Group.

Currently, the Advocacy Center, in cooperation with the Embassy and DOE, is supporting Entergy's Taishan Power Plant which is currently awaiting the State Planning Commission's approval in China.

Fluor Corporation: The Advocacy Center and the Embassy are providing advocacy support for Fluor Daniel's Bartil Pacific Grassroots pulp and paper mill in Indo

nesia.

Foster Wheeler: The Department of Commerce, the Advocacy Center and the Embassy provided advocacy support for the company, and the company was awarded the Ezhou power plant with U.S. content of $188 million.

The Department of Commerce is also working closely with the Embassy and DOE in providing advocacy support for several other power projects including: Yangcheng, Luoyang and Shalangze, Hebei and Hangfeng in China.

General Electric: The U.S. Department of Commerce has worked with the company on numerous projects.

General Electric signed a $250 million contract with Tenaga National Berhad (TNB), which will manufacture and install two steam turbine generators and auxiliary equipment for the Sultan Salahuddin Abdul Aziz Power Station in Malaysia. This contract is General Electric's first installation of large steam turbines in South Asia, and represents a large step toward meeting Malaysia's growing energy needs. The project received advocacy support from various U.S.G. agencies including Treasury, Department of Commerce and U.S. Embassy in Malaysia. Under the contract, GE will supply two 500-megawatt steam turbine-generators and auxiliary equipment to TNB for the project with a total value of $250 million and a U.S. export content of $140 million. The GE steam turbines and generators will be manufactured in GE's Schenectady, NY plant, sustaining 2700 jobs for GE and suppliers. General Electric was awarded by Korean Electric Power Company (KEPCO) a contract for supply of two power plants in the city of Inchon, Korea, valued at approximately $500 million. The project was hotly contested with European suppliers, Siemens and ABB, against U.S. suppliers, GE and Westinghouse. FCS Seoul and the Department of Commerce were attributed by GE as having played key role in selection of a U.S. vendor for this important procurement of power generation equip

ment.

General Electric also benefitted from aggressive advocacy support involving the Paiton Power Project in East Java, Indonesia (See the Mission Energy paragraph) and the Dabhol power project in India.

GE continues to receive U.S.G. advocacy for the Bursa power project in Turkey and the Lippendorf power project in Germany.

Raytheon: In one of the Administration's first major efforts in coordinating highlevel U.S.G. advocacy support on behalf of U.S. industry, the International Trade Administration (ITA) worked together in securing an American solution to meet Brazil's requirements for the Amazon Surveillance System, known as SIVAM. A U.S. consortium led by the Raytheon Company requested USG advocacy. Raytheon, which was competing against Thompson CSF of France, won the contract valued at $1.5 billion of which nearly $700 million is U.S. export content.

The Advocacy Center organized several meetings of the TPCC Advocacy Network to build support for the project and developed a coordinated, effective USG advocacy strategy for the SIVAM project. Other U.S.G. agencies that supported the SIVAM project included STATE, EXIM, EPA, OPIC, NOĂA, NASA, USDA, DOI, DOT, FAA and DOJ.

The Department of Commerce also advocated on Raytheon's and GE's behalf with regard to the natural gas power plant in Batangas, the Philippines.

Southern Electric International: The Department of Commerce advocated on the company's behalf in Latin America last March. The company plans to take advantage of the opportunities offered in Chile as a result of the massive privatization of the power generation market.

Mission Energy Company: After 3 years of effort and assistance from DOC, Embassy and several other USG agencies, Mission Energy and its partners were awarded $2.6 billion power plant contract, known as the Paiton Power Plant in Indonesia. It is Indonesia's first private power plant. U.S. content is estimated to be $700 million in goods and services. Eximbank and OPIC provided a portion of the financing. Extensive embassy support as well as coordinated U.S.G. efforts contributed to the project's success. The Advocacy Center also worked closely with Mission on the Jojobera power project.

The AES Corporation: AES Transpower lb Valley project was the second "fast track" power project to receive a financial counterguarantee from the Government of India. The agreement paved the way for the completion of the negotiations for