§262m–2 Environmental impact of assistance proposals

Summary

Make sure U.S. agencies and embassies check the environmental effects of loans from multilateral development banks before those loans are approved. The Administrator of the Agency for International Development, working with the Secretaries of the Treasury and State, must have reviews look at whether projects are economically sound, and whether they could harm the environment, natural resources, public health, or indigenous peoples. Reviews should recommend steps or alternatives to avoid or reduce harm. If a loan might cause major damage, the Administrator must order a formal investigation with other federal agencies and share the findings with the public unless the information is classified. The Secretary of the Treasury must tell U.S. Executive Directors at those banks to ask for more time to review proposals and to push bank managers to improve and require public consultation on projects and policies with big environmental or social effects. Treasury must report progress to Congress each year. Using the review information, USAID, Treasury, and State must send lists of proposals likely to cause harm to the named Congressional committees by June 30 and December 31 each year after December 22, 1987. Treasury must also send related reports to the U.S. Executive Director at the bank with instructions to try to eliminate or reduce harms.