public outreach on the u.s. draft eiti candidacy application › sites › doi.gov › files ›...
TRANSCRIPT
Public Outreach on the U.S. Draft EITI Candidacy Application Insert Date Insert Speakers
Why are we here?
To provide an overview of the U.S. Extractive Industries Transparency Initiative, or USEITI, and get public feedback on an application for candidacy.
2
The EITI Standard
3
The Extractive Industries Transparency Initiative, or EITI, is a global standard that promotes revenue transparency and accountability in the extractive sector.
5 Countries Recently Announced Their Intention to Implement EITI: France, *Germany, Italy, United Kingdom, UNITED STATES
16 EITI Candidate Countries:
Afghanistan, Cameroon, Chad, Democratic Republic of Congo, Guatemala, Guinea, Honduras, Indonesia, Madagascar, Kazakhstan, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, The Philippines, and Trinidad and Tobago
23 EITI Compliant Countries: Albania, Azerbaijan, Burkina Faso, Central African Republic, Côte d’Ivoire, Ghana, Iraq, Kyrgyz Republic, Liberia, Mali, Mauritania, Mongolia, Mozambique, Niger, Nigeria, Norway, Peru, Republic of Congo, Tanzania, Timor-Leste, Togo, Yemen, and Zambia
*Pilot Implementation Country is currently suspended
Countries that Participate in EITI
4 SIGN-UP CANDIDACY COMPLIANCE
Why Implement EITI? 12 Principles
Twelve EITI principles were agreed to by EITI stakeholders and lay out the goals and commitments of EITI. In summary:
A country’s natural resources belong to all its citizens; all citizens should see the benefit from them.
Ensuring this requires high standards of transparency and accountability.
Compliance calls for full disclosure of government revenues from their extractives and a national commission to oversee the process and stimulate public debate.
A complete list of the 12 EITI principles can be found in the EITI Standard Publication dated July 2013 online at:
http://eiti.org/eiti/principles
Increase Transparency & Dissemination
Enhance Understanding
by all Stakeholders
Achieve Better Governance &
Accountability
Highlight resource revenue to
government
Ensure fair return on behalf of citizens for the use of public resources
Inform public policy
dialogue
Strengthen investment climate
Enhance public financial management
Foster participatory governance through
collaborative decision-making
Benefits of Implementing EITI in the U.S.
6
Provide accessible and useful information about
public resources
Maintain or increase social license to
operate
Maintain or increase trust & public confidence
across sectors
U.S. Extractive Industries
• U.S. is among the top producers of extractive resources in the world:1
# 1 for natural gas # 2 for coal and copper # 3 for gold, steel and oil # 4 for aluminum and zinc # 8 for iron ore # 9 for silver
• Production from federal lands and offshore 2
– 42% of coal, 31% of oil, 25% of natural gas – $12 billion in revenues collected on behalf of American taxpayers
1/ Sources: U.S. Geological Survey, World Steel Association and CIA World Fact Book 2/ Source: DOI, New Energy Frontier Report, May 2011
7
U.S. Revenue Collections & Disbursements
8
Historic Preservation Fund
$4.2 billion Land & Water Conservation Fund
$27 billion
Reclamation Fund$22.6 billion
American Indian Tribes & Allottees$8.3 billion
State Share (Offshore)$3.8 billion
State Share (Onshore)$29.2 billion
U.S. Treasury$148 billion
Cumulative Mineral Lease RevenueDisbursement of $234 billion (1982 - 2012)
Note: rounding may affect totals
The EITI Candidacy Application
Documents completion of 4 EITI sign-up requirements
Provides information about the Multi-Stakeholder Group
Requests Adapted Implementation (waiver to EITI requirements)
Identifies resources for implementation in an initial annual workplan
The EITI Candidacy Application must be submitted to the international EITI Board for approval. It:
If approved by the Board, a country is considered a candidate, and has 18 months to complete its first EITI report. The report must attain a quality standard that is validated by an independent reviewer within 12 additional months, at which point a country is considered compliant. 9
EITI Sign-Up Requirements 1.1 Government issues an unequivocal statement of its intention to implement the EITI.
1.2 Government appoints a senior individual to lead on the implementation of EITI.
1.3 Government commits to work with civil society and companies, and establish a multi-stakeholder group to oversee the implementation of EITI.
September 20, 2011: President Obama announced the US will implement EITI
October 25, 2011: Interior Secretary named senior official and commits to working with industry and civil society
1.4 Multi-stakeholder group maintains a current workplan, fully costed and aligned with the reporting and validation deadlines established by the EITI board.
February - June, 2012: Stakeholder Assessment, Public Comment Period & Tribal Outreach
July 26, 2012: USEITI Multi-Stakeholder Group (MSG) Established & Nominations Sought
December 21, 2012: Interior Secretary Appointed USEITI MSG Members and Alternates
February 13, 2013 - Present: Meetings of the USEITI MSG
September 18- November 4, 2013: Draft Candidacy Application with First Workplan Posted for Public Comment
December 11-12, 2013: MSG finalizes Candidacy Application to send to EITI Board 10
USEITI Stakeholder Representation
Civil Society • Project on Government Oversight, Revenue Watch, Transparency International
• Earthworks, First Peoples Worldwide, North Star Group, Oceana
• Calvert Investments, Energy Policy Forum, Goldwyn Global Strategies, Research Associates
• United Mineworkers, United Steelworkers
• University of California Los Angeles, Virginia Polytechnic Institute
Government • Departments of Energy, the Interior, Treasury
• State Compact Commissions for Mining, Oil and Gas
• State Government Representatives from California and New Mexico
Industry • British Petroleum, Chevron, Conoco-Phillips, Exxon-Mobil, Noble Energy, Shell Oil, Ultra
Petroleum, Walter Energy
• Freeport McMoRan Copper & Gold, Newmont Mining, Peabody, Rio Tinto
• American Petroleum Institute, Council of Petroleum Accountants Societies, Independent Petroleum Association of America, National Mining Association
The USEITI Multi-Stakeholder Group has 21 Members and 20 Alternates, representing a wide range of organizations and stakeholder interests:
11
EITI Requirement Decisions Reached by MSG Pending MSG Decisions
Scope – Types of Commodities and Revenues to be included
Commodities: Oil; Gas; Coal; Other Leasable Minerals, Non-Fuel Minerals (Hard Rock, Sand & Gravel); Geothermal; Other Renewables (Solar/Wind)
Tabled for future discussion (Forestry and Fisheries)
Revenue Streams: Rents, Royalties Bonuses and Fees Revenues collected by US Department of Interior (DOI)
Federal Corporate Income Taxes to be reported by companies
Details of how taxes can be reported, consistent with SEC 1504 and EU law per EITI Standard
MSG Outcomes to Date: Scope
12
EITI Requirement Decisions Reached by MSG Pending MSG Decisions
Materiality Threshold for Reconciliation
For the initial report, $50 million total annual revenues paid to DOI by parent company, including its subsidiaries. This equals approximately 80% of DOI natural resources revenues. For the second report, $20 million total annual revenues paid to DOI by parent company, including its subsidiaries, which equals approximately 90% of DOI natural resources revenues.
MSG Outcomes to Date: Materiality
13
EITI Requirement Decisions Reached by MSG Pending MSG Decisions
Publicly Sourced Narrative
Data and information that is currently publicly available, reliable and accessible for all commodities within scope
Unilateral Disclosure For all in-scope commodities, DOI will disclose disaggregated data to the extent allowable by law, (approximately 100% of DOI revenue in scope)
Details and exact level of disaggregation
Third Party Reconciliation
A third party will compare data from companies on their payments to government with data from government on revenues collected from companies, for in-scope commodities within the reporting materiality threshold.
Sub-national Reporting Adapted Implementation – Revenues paid to or collected for sub-national governments are out of the scope due to legal, regulatory, and timeliness issues, but an opt–in process will be available for individual states or other sub-national entities.
Details for an opt-in process.
Project-Level Reporting TBD To align the definition of “project” with SEC 1504 and EU law per EITI Standard
Contract Disclosure TBD (“encouraged” by new EITI rules) Whether to include contracts.
MSG Outcomes to Date: Reporting
Looking Ahead: Timeframe
September 18, 2013: Publish Draft Candidacy Application
September 18 - November 4, 2013: Conduct public and tribal outreach; seek public comments on Draft Candidacy Application
Mid-December 2013: Finalize and submit U.S. Candidacy Application
February 2014: Achieve EITI Candidacy
2014: Implement USEITI Workplan
2015: Produce first USEITI Report
2016: Complete validation and achieve compliance
15
Questions and comments
16
Contact Us
For more information about
USEITI, please visit
www.doi.gov/eiti
For more information about the EITI International Standard, please visit
www.eiti.org
Written comments can be emailed to: [email protected]
Or mailed to:
USEITI Secretariat
1849 C Street NW MS 4211 Washington DC 20240
SECTOR CONTACT INFORMATION
Industry Sector Co-Chair: Veronika Kohler
Civil Society Sector Co-Chair: Danielle Brian