PROFIT Act of 2026

(a) Short title.— This Act may be cited as the “Producing Returns and Opportunity for Investment and Trade Act of 2026” or the “PROFIT Act of 2026”.

(b) Table of contents.— The table of contents for this Act is as follows:

In this Act:

(1) Appropriate congressional committees.— The term appropriate congressional committees means—

(A) the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.

(2) Department; Secretary.— The terms “Department” and “Secretary” mean the Department of State and the Secretary of State, respectively.

Section 1(b) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(b)) is amended by—

(1) redesignating paragraphs (2) through (6) as paragraphs (3) through (7) respectively; and

(2) by inserting after paragraph (1) the following:

“(2) Under Secretary of State for Economic Growth, Energy, and the Environment.—

(A) Establishment.— There shall be in the Department an Under Secretary of State for Economic Growth, Energy, and the Environment who shall be responsible to the Secretary.

(B) Responsibilities.— The Under Secretary of State for Economic Growth, Energy, and the Environment shall maintain continuous observation and coordination of all matters pertaining to economic and business affairs in the conduct of foreign policy, including, as appropriate, the following:

(i) Preparing an annual strategic plan for expanding opportunities for United States private sector companies in international markets, coordinating the use of sanctions to achieve national security objectives, promoting international trade and investment, developing international policies around new and emerging technologies, ensuring United States leadership in science and technology, protecting natural resources, and promoting United States energy interests.

(ii) Developing policies for consideration by the Secretary to promote economic growth, facilitate market access, create business enabling environments abroad, expand trade and investment opportunities for United States companies, promote United States energy exports and energy security, conserve and manage economically important ecosystems and resources, expand access to critical minerals abroad, support United States civil and commercial space governance, promote international standards, policies, and best practices for emerging technology that facilitate United States economic growth, and safeguard the preeminence of the United States dollar in international markets.

(iii) Promoting United States international economic interests to be addressed in the Biannual National Economic Security Strategy Report, coordinated by the Office of the Chief Economist.

(iv) Attending and participating in meetings of the National Security Council, and National Space Council, when applicable, at the direction of the Secretary, for matters related to economic growth, energy, and commercial expansion, commercial outer space affairs, oceans, science and technology developments, natural resource protection, and fulfill the role of Foreign Affairs Sous Sherpa relating to the activities of the Group of Seven Industrial Nations (G-7).

(v) Providing guidance to Department personnel in the United States and overseas who conduct or implement policies, programs, and activities related to economic growth, energy, and commercial expansion, science and technology affairs, natural resource conservation, and civil and commercial activities in outer space.

(vi) Coordinating activities related to promoting economic growth, facilitating market access, creating business enabling environments abroad, expanding trade and investment opportunities, promoting of energy exports, conserving and managing economically important ecosystems and resources, expanding access to critical minerals, maintaining United States leadership in science, technology, and outer space, and safeguarding the preeminence of the United States dollar in international markets.

(vii) As directed by the Secretary, representing the Department at interdepartmental meetings including the National Economic Council, Homeland Security Council, Council on Environmental Quality, and in providing policy advice to the Secretary on matters under consideration by these groups.”.

(3) redesignating paragraphs (2) through (6) as paragraphs (3) through (7);

Section 102(c) of the CHIPS Act of 2022 (Public Law 117–167; 136 Stat. 1375) is amended—

(1) in paragraph (1)—

(A) by inserting “, acting through the Under Secretary of State for Economic Growth, Energy, and the Environment” after “Secretary of State”; and

(B) by adding at the end the following: “Within the Department of State, the Fund shall be overseen and administered by the Under Secretary of State for Economic Growth, Energy, and the Environment.”.

(2) in paragraph (2)(B), by inserting “, acting through the Under Secretary of State for Economic Growth, Energy, and the Environment” after “Secretary of State”.

Section 1 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a) is amended by striking subsection (l) and inserting the following new subsection:

“(l) Assistant Secretary and Bureau for Sanctions Policy.—

(1) Establishment.— There is authorized to be in the Department an Assistant Secretary for Sanctions Policy, who shall be responsible to the Under Secretary of State for Economic Growth, Energy, and the Environment for matters pertaining to the development of policies governing the imposition of sanctions, in consultation with the Under Secretary of State for International Security Affairs and the Assistant Secretary for Arms Control and Nonproliferation as appropriate, and such other related duties as the Secretary may from time to time designate.

(2) Responsibilities.— In addition to the responsibilities described under paragraph (1), the Assistant Secretary for Sanctions Policy shall maintain continuous observation and coordination of all matters pertaining to the development and implementation of sanctions policies as part of United States diplomatic strategies in the conduct of foreign policy, including, as appropriate, the following:

(A) Developing the foreign policy strategy of United States sanctions programs, including consideration of the use of sanctions in combination with other United States foreign policy tools and the political and economic implications of sanction policies.

(B) Coordinating the effective implementation and enforcement of sanctions, including all activities, policies, and programs pertaining to sanctions within the Department.

(C) Coordinating sanctions policy with foreign partners and allies to ensure the maximum effectiveness of sanctions imposed by the United States and such allies and partners.

(D) Consulting regularly with a broad range of stakeholders on the implications of United States sanctions policy for United States economic interests.

(E) Contributing to the reports to Congress produced by the Chief Economist.

(F) Leading the Department’s efforts to identify and designate individuals for visa sanctions related to human rights violations.

(G) Developing policies and programs, in coordination with the Department of the Treasury and other Federal departments and agencies as necessary and with foreign partners, to combat money laundering, terrorist financing, cybercrimes, and other illicit financial activities.

(H) Representing the Department in all interagency groups or organizations within the executive branch that plan, assess, analyze, or review United States sanctions policies, such as interagency groups organized under the auspices of the Department of Treasury, the Department of Commerce, and the Department of Homeland Security.

(I) Performing such other duties as the Under Secretary of State for Economic Growth, Energy, and the Environment may from time to time designate.

(3) Redelegation of authority.— The Secretary may delegate, or authorize successive redelegation of, authority to the Assistant Secretary for Sanctions Policy to act and to render decisions, with respect to all sanctions policies administered by the Department. Within the limitations of such delegations, redelegations, or assignments, all official acts and decisions by the Assistant Secretary for Sanctions Policy shall have the same force and effect as though performed or rendered by the Secretary.

(4) First appointment.— On the date of the enactment of this Act, the individual serving before such date of enactment as the Coordinator for Sanctions shall be the Assistant Secretary for Sanctions Policy. Any subsequent appointment of an individual to the position of Assistant Secretary for Sanctions Policy shall be subject to the advice and consent of the Senate.

(5) Establishment.— The Secretary shall establish a Bureau of Sanctions Policy, which shall perform such functions related to the development of policies governing the imposition of sanctions and sanctions strategies, as the Under Secretary of State for Economic Growth, Energy, and the Environment may prescribe.

(6) Assistant Secretary.— The Assistant Secretary for Sanctions Policy shall be the head of the Bureau of Sanctions Policy.”.

Section 1 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a), as amended by section 7, is further amended—

(1) by redesignating subsections (j) through (q) as subsections (l) through (r), respectively; and

(2) by inserting after subsection (i) the following new subsection:

“(j) Office of the Chief Economist within the Department of State; Chief Economist as head of the Office; personnel within the Office.—

(1) Establishment.— There is authorized to be in the Department a Chief Economist who shall be responsible to the Under Secretary of State for Economic Growth, Energy, and the Environment for matters pertaining to analyzing and forecasting the impact of economic trends on diplomatic functions and national security priorities, and such other related duties as the Secretary may from time to time designate.

(2) Responsibilities.— In addition to the responsibilities described under paragraph (1), the Chief Economist shall provide research and analysis to inform the Department’s strategy for deploying international economic policy to strengthen alliances, deter malign foreign actors, and reduce dependencies on strategic rivals in the conduct of foreign policy, including, as appropriate, the following:

(A) Providing research and analysis to inform the development of the Department’s strategy for deploying foreign policy to ensure supply chain resilience, secure access to raw materials and critical minerals, and maximize international market access.

(B) Providing analysis of complex, emerging geoeconomic issues and offer advice to Department leadership on economic diplomacy challenges.

(C) Conducting research and rigorous, data-driven analysis of high priority issues at the intersection of economics and foreign policy to inform decision-making and diplomatic engagements by senior Department officials.

(D) Maintaining analytical products for the Department on international economic issues, including on sanctions evasion and the vulnerabilities of the United States and its partners to economic coercion, as well as the economic opportunities for United States businesses.

(E) Contributing to the expansion of the economic expertise of the Department through collaboration with the Foreign Service Institute, the academic community, international organizations, and other Federal departments and agencies the Chief Economist determines necessary.

(F) Serving as a liaison to technical experts in economics and related fields in partner governments, international institutions, and elsewhere in the United States government and academic community.

(G) Performing such other duties as the Under Secretary of State for Economic Growth, Energy, and the Environment may from time to time designate.

(3) Report.— Not later than 1 year after the date of the enactment of this subsection, and every 2 years for the subsequent four years, the Chief Economist shall transmit to Congress a report on the international economic strategy of the United States and its analytical basis. In preparing the report, the Chief Economist shall coordinate input and analysis from other bureaus within the Under Secretary of State for Economic Growth, Energy, and the Environment.

(4) Office.— The Secretary shall establish an Office of the Chief Economist, which shall perform such functions related to the provision of expert economic advice and analysis, as the Under Secretary of State for Economic Growth, Energy, and the Environment may prescribe.

(5) Chief economist.— The Chief Economist shall be the head of the Office of the Chief Economist.

(6) Personnel of the office of the chief economist.—

(A) In general.— The Office of the Chief Economist shall include—

(i) the Chief Economist, shall be a member of the Senior Executive Service or its equivalent, should have a doctorate in Economics, and at least 5 years of experience working at the intersection of policy and international economics in the private or public sectors;

(ii) not fewer than 6 and not more than 12 full-time Civil Service officers, notwithstanding the limitations provided under section 501 of the Foreign Service Act of 1980 (22 U.S.C. 3981), at the GS-15 level or below;

(iii) one full-time Foreign Service Officer, notwithstanding such limitations, at the FS-01 level or below; and

(iv) time-limited detailees from other offices of the Department or of other Federal departments or agencies, on a mutually agreeable, non-reimbursable basis.

(B) Contractors.— The Office of the Chief Economist shall have maximum contracting flexibility, including—

(i) personal services contracting authority authorized under section 2 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2669), for domestic positions; and

(ii) other transaction authority authorized under section 701 of the Foreign Service Act of 1980 (22 U.S.C. 4021), to adopt innovative technology and data analytics in its research.”.

Section 1(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(c)) is amended by striking paragraph (4) and inserting the following new paragraph:

“(4) Assistant Secretary and Bureau for Economic and Business Affairs.—

(A) Establishment.— There is authorized to be in the Department an Assistant Secretary for Economic and Business Affairs who shall be responsible to the Under Secretary of State for Economic Growth, Energy, and the Environment for matters pertaining to the trade and investment promotion and policy, international finance and development, transportation affairs, and such other related duties as the Secretary may from time to time designate.

(B) Responsibilities.— In addition to the responsibilities described under subparagraph (A), the Assistant Secretary for Economic and Business Affairs shall be responsible for leading Department policies and programs, and coordinating with other United States agencies as appropriate, for all matters pertaining to the following:

(i) Trade and investment promotion, such as—

(I) assisting and advocating for United States businesses and commercial interests overseas;

(II) identifying foreign market opportunities for United States businesses and helping United States firms overcome challenges in foreign business climates;

(III) helping United States companies compete for and win contracts in foreign markets;

(IV) attracting foreign investment into the United States by identifying high potential businesses in foreign countries;

(V) ensuring United States private sector concerns are integrated into United States foreign policy and economic policy; and

(VI) promoting international commercial projects that advance the national security interests of the United States, regardless of domestic content thresholds.

(ii) International trade policy, including negotiating and implementing trade agreements, resolving trade disputes, bolstering supply chain resilience, and protecting intellectual property rights.

(iii) International investment policy, including monitoring international investment climates, negotiating and implementing investment agreements, representing the Department in the Committee on Foreign Investment in the United States, and assisting United States companies involved in investment disputes with foreign governments.

(iv) Development finance, including the mobilization of private, bilateral, and multilateral development finance for developing countries, particularly investments focused on infrastructure projects.

(v) The negotiation and extension of debt relief and sovereign loan guarantees for United States allies and partners.

(vi) The promotion of sound, transparent, and stable economic policies overseas.

(vii) Perform such other duties as the Under Secretary of State for Economic Growth, Energy, and the Environment may from time to time designate.”.

Section 1 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a), as amended by section 8, is further amended by inserting the after subsection (j) following new subsection:

“(k) Office of Subnational Diplomacy within the Department of State; coordinator as head of the Office; location of the Office.—

(1) Establishment.— There shall be established in the Department an Office of Subnational Diplomacy. The Office shall enable the Department’s work with subnational governments (State, county, city, and municipal) within the United States to improve the ability of subnational governments to attract foreign investment, counter foreign malign influence within the United States, and contribute to the foreign policy priorities of the United States.

(2) Coordinator.— The head of the Office shall be the Coordinator for Subnational Diplomacy. The head of the office shall report through the Assistant Secretary for Economic and Business Affairs to the Under Secretary of State for Economic Growth, Energy, and the Environment.

(3) Responsibilities.— In addition to the responsibilities described under paragraph (1), the Coordinator for Subnational Diplomacy shall maintain continuous observation and coordination of all matters pertaining to subnational diplomacy and Department engagements with subnational governments in the conduct of foreign policy, including the following:

(A) Advising the Under Secretary of State for Economic Growth, Energy, and the Environment on subnational engagements within the United States and serve as the principal official on such matters within the Department.

(B) Coordinating the Department’s support for local and municipal governments’ engagements with foreign governments.

(C) Advising subnational government officials on the potential risks of engagements with countries of concern and share best practices to build resilience against foreign political interference and malign influence.

(D) Assisting subnational governments in the following areas:

(i) Attracting or bidding to host major international events.

(ii) Tracking foreign direct investment at the county and municipal levels to highlight trends and opportunities.

(iii) Attracting foreign direct investment and other forms of economic cooperation.

(iv) Building the capacity and knowledge of subnational government staff who have responsibility for engaging with foreign countries.

(v) Advancing sports diplomacy with foreign countries and entities.

(vi) Implementing programs to cooperate with foreign governments and entities on policy priorities or managing shared resources.

(vii) Understanding the local implications of foreign policy developments or policy changes.

(E) Supporting the economic interests of the United States through subnational engagements, in consultation and coordination with other relevant agencies.

(F) Advising and informing local officials as they negotiate agreements and memoranda of understanding with foreign governments related to subnational engagements and priorities.

(G) Coordinating subnational engagements with associations of subnational elected leaders, including the United States Conference of Mayors, National Governors Association, National League of Cities and similar associations.

(H) Performing other such duties as the Assistant Secretary for Economic and Business Affairs and the Under Secretary of State for Economic Growth, Energy, and the Environment may from time to time designate.

(4) Location.— The Office of Subnational Diplomacy shall be co-located with the Office of Foreign Missions—Los Angeles, authorized under section 203(4) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 4303(4)).”.

Section 1(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(c)), as amended by section 9, is further amended—

(1) by redesignating paragraphs (8) through (17) as (9) through (18), respectively; and

(2) by inserting after paragraph (7) the following:

“(8) Assistant Secretary and Bureau for Energy Security and Diplomacy.—

(A) Establishment.— There is authorized to be in the Department an Assistant Secretary for Energy Security and Diplomacy who shall be responsible to the Under Secretary of State for Economic Growth, Energy, and the Environment for all matters pertaining to the formulation and implementation of international energy, energy technology, critical minerals, and relevant supply chain policies in the conduct of foreign policy by the Department, including, as appropriate, to protect United States energy security interests, lead the coordination of energy programs carried out by United States Government agencies abroad, and such other related duties as the Secretary may from time to time designate.

(B) Responsibilities.— In addition to the responsibilities described under subparagraph (A), the Assistant Secretary for Energy Security and Diplomacy shall maintain continuous observation and coordination of all matters pertaining to the development of policies to secure access to international energy markets and diversify critical mineral supply chains in the conduct of foreign policy, including, as appropriate, the following:

(i) Representing the Secretary in interagency efforts to develop the international energy policy of the United States.

(ii) Leading the analysis, formulation, and implementation of international policies aimed at protecting and advancing United States energy interests.

(iii) Effectively managing United States bilateral and multilateral relations and, as directed by the Secretary, representing the Secretary in relevant international fora and organizations, including the International Energy Agency, to bolster global energy security and advance the interests of the United States.

(iv) Ensuring that analyses of the national security and economic security implications of global energy developments are reflected in the decision-making processes within the Department.

(v) Incorporating energy and critical mineral security priorities into the activities of the Department.

(vi) Coordinating energy activities of the Department with relevant Federal departments and agencies, including the Departments of Energy, Commerce, Defense, and Interior, and the Development Finance Corporation to promote United States energy security and energy development to support United States national security readiness.

(vii) Coordinating with the Bureau of Sanctions Policy on economic sanctions pertaining to the international energy sector.

(viii) Coordinating energy security and other relevant functions within the Department currently undertaken by—

(I) the Bureau of Economic and Business Affairs;

(II) the Bureau of Water, Environment, and Space Affairs;

(III) the Bureau of Arms Control and Nonproliferation; and

(IV) other bureaus and offices within the Department.

(ix) Working internationally to—

(I) support the development of energy technologies, natural resources, critical minerals, and supply chains for the benefit of the United States and United States allies and trading partners for their energy security and economic development needs;

(II) promote secure and diversified energy and critical minerals supply chains, and a well-functioning global market for energy resources, energy technologies, critical minerals;

(III) resolve international disputes regarding the exploration, development, production, or distribution of energy and critical minerals resources where the United States strategic interests are present;

(IV) support the economic and commercial interests of United States persons operating in the energy markets of foreign countries; and

(V) support and coordinate international efforts to alleviate energy poverty, enhance energy access and energy efficiency to promote United States strategic interests and offer alternatives to adversary initiatives for United States allies and partners.

(x) Conducting public diplomacy with regard to United States international energy policy to strengthen transparency and governance.

(xi) Performing such other duties as the Under Secretary of State for Economic Growth, Energy, and the Environment may from time to time designate.

(C) Annual report.— Not later than 1 year after the date of the enactment of this paragraph, and annually thereafter for three years, the Assistant Secretary for Energy Security and Diplomacy shall submit to Congress a report on the United States international energy strategy.

(D) Bureau.— The Secretary shall establish a Bureau of Energy Security and Diplomacy, which shall perform such functions related to the formulation and implementation of international energy, energy technology, critical minerals, and relevant supply chain policies, as the Under Secretary of State for Economic Growth, Energy, and the Environment may prescribe.

(E) Assistant Secretary.— The Assistant Secretary for Energy Security and Diplomacy shall be the head of the Bureau of Energy Security and Diplomacy.”.

Section 1(c) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(c)), as amended by section 11, is further amended by adding at the end the following:

“(19) Bureau of Water, Environment, and Space Affairs within Department of State; Assistant Secretary of State as head of Bureau.—

(A) Establishment.— There is authorized to be in the Department an Assistant Secretary for Water, Environment, and Space Affairs who shall be responsible to the Under Secretary of State for Economic Growth, Energy, and the Environment for matters pertaining to space, oceans, polar affairs, environmental quality, freshwater, fisheries, wildlife and wildlife trafficking, conservation, and such other related duties as the Secretary may from time to time designate.

(B) Responsibilities.— In addition to the responsibilities described under subsection (a), the Assistant Secretary for Water, Environment, and Space Affairs shall maintain continuous observation and coordination of all matters pertaining to oceans, fisheries, natural resource conservation, and outer space in the conduct of foreign policy, including, as appropriate, the following:

(i) Developing United States policy on global environmental security issues with respect to oceans, fisheries, Antarctic region, waste and global pollution, and natural resource management and conservation, including water.

(ii) Representing the Department in bilateral and multilateral negotiations involving the law of the sea, including freedom of navigation and overflight and other lawful uses of the ocean; maritime security; United States maritime zones, including the United States extended continental shelf; marine science; sustainable management and protection of marine habitats and resources; marine pollution; and maritime claims and boundaries.

(iii) Leading United States engagement on Antarctica and in international oceans agreements and conventions with foreign governments and international organizations to promote solutions that advance United States national security, economic, and environmental interests.

(iv) Coordinating the development of policies and programs to conserve and manage economically important ecosystems, including, forests, wetlands, drylands, and coral reefs.

(v) Developing policies and programs to address international threats to natural resources including but not limited to illicit trade; illegal, unreported and unregulated fishing; wildlife trafficking; and illegal logging and associated trade.

(vi) Developing and implementing United States foreign policy related to air, water and soil pollution and risks to human health and the environment caused by the transboundary movement of hazardous chemicals and waste and other forms of pollution to promote environmental security with trade partners and in multilateral institutions.

(vii) Representing the Department in bilateral and multilateral engagements including organizations, institutions, and negotiation of international agreements on related issues.

(viii) Developing policies and programs, in coordination with the National Aeronautics and Space Administration, the Department of Commerce, and other relevant Federal departments and agencies, as appropriate, to support partnerships between the United States and international and private industry partners in the development of infrastructure and policies that expand economic growth in outer space, including—

(I) countering malign efforts by foreign adversaries and other actors that threaten United States interests in civil and commercial space;

(II) expanding access to foreign markets for United States commercial industry, including by encouraging reforms that reduce barriers to trade and cooperation with United States civil and commercial space actors; and

(III) providing assistance to foreign governments and organizations, including national, regional, and international institutions, on such terms and conditions as the Secretary may determine.

(ix) Leading bilateral and multilateral engagements related to civil and commercial space activities, resilient space services, burden sharing, and other matters related to international space law and diplomacy and other United States international obligations and commitments.

(x) In accordance with the National Space Policy, leading United States Government engagement with international Global Navigation Satellite Systems providers to ensure compatibility and encourage interoperability of civil global navigation satellite services based on United States-based global positioning systems, including through the International Committee on Global Navigation Satellite Systems.

(xi) Leading Department efforts to implement international arrangements and promote cooperation on Earth observation satellite systems.

(xii) Leading Department engagement in multilateral and bilateral forums on international space policy, space law, and commercial and civil treaties or agreements.

(xiii) Leading Department efforts on transparency in space by maintaining the official United States space object registry and promoting best practices for safe operations in space, preservation of the space environment, space traffic coordination, and space situational awareness.

(xiv) Leading Department efforts to align foreign space law, regulatory, and policy frameworks with United States-endorsed models, approaches, and best practices.

(xv) Performing such other duties as the Under Secretary of State for Economic Growth, Energy, and the Environment may from time to time designate.

(C) First appointment.— On the date of the enactment of this Act, the individual serving as the Assistant Secretary for Oceans and International Environmental and Scientific Affairs on the day before such date of enactment shall be the Assistant Secretary for Water, Environment, and Space Affairs. Any subsequent appointment of an individual to the position of Assistant Secretary for Water, Environment, and Space Affairs shall be subject to the advice and consent of the Senate.

(D) Bureau.— The Secretary shall establish a Bureau of Water, Environment, and Space Affairs, which shall perform such functions related to space, oceans, environmental quality, fisheries, wildlife, and wildlife trafficking, and conservation affairs, as the Under Secretary of State for Economic Growth, Energy, and the Environment may prescribe.

(E) Assistant Secretary.— The Assistant Secretary for Water, Environment, and Space Affairs shall be the head of the Bureau of Water, Environment, and Space Affairs.”.

(a) Office directors and deputy directors.— Notwithstanding the requirements of section 501 of the Foreign Service Act of 1980 (22 U.S.C. 3981), the positions of Office Director and Deputy Office Director, as well as special assistant positions, under the purview of the Under Secretary of State for Economic Growth, Energy, and the Environment, shall generally be filled by civil service officers.

(b) Implementation.— The Secretary is authorized to take such steps as may be necessary to phase-in the requirement under subsection (a) over the 5-year period beginning on the date of the enactment of this Act.

(c) Exceptions.— The Under Secretary of State for Economic Growth, Energy, and the Environment may approve the appointment of a Foreign Service officer to an Office Director or a Deputy Office Director position if—

(1) the individual has the requisite expertise, as determined by the Under Secretary of State for Economic Growth, Energy, and the Environment; and

(2) in the 5-year period following the date of the enactment of this Act, not more than one-third of all Office Director and Deputy Office Director positions under the purview of the Under Secretary of State for Economic Growth, Energy, and the Environment are filled by Foreign Service officers.

(d) Direct hire authority.—

(1) In general.— The Under Secretary of State for Economic Growth, Energy, and the Environment may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, candidates directly to positions in the competitive service, as defined in section 2102 of that title.

(2) Termination.— Except with respect to the Office of the Chief Economist, the authority provided under paragraph (1) shall terminate on the date that is 4 years after the date of the enactment of this Act.

(e) Report.— Not later than 180 days after the date of the enactment of this Act, the Under Secretary of State for Economic Growth, Energy, and the Environment shall submit to the appropriate committees of Congress a report that contains plans to attract and retain economic, policy, legal, and technical expertise for civil service officers in the Under Secretary of State for Economic Growth, Energy, and the Environment, including career promotion tracks to supervisory and non-supervisory GS-15 positions.

Any reference in any statute, reorganization plan, Executive order, regulation, agreement, determination, or other official document or proceeding to—

(1) the Assistant Secretary for Oceans and International Environmental and Scientific Affairs shall be deemed to refer to the Assistant Secretary for Water, Environment, and Space Affairs;

(2) the Bureau for Oceans and International Environmental and Scientific Affairs shall be deemed to refer to the Bureau for Water, Environment, and Space Affairs;

(3) the Sanctions Coordinator shall be deemed to refer to the Assistant Secretary for Sanctions Policy; and

(4) the Office of the Sanctions Coordinator shall be deemed to refer to the Bureau of Sanctions Policy.

Section 931 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17371) is amended to read as follows:

“931. Energy diplomacy and security within the Department of State.— The Secretary of Energy may make appropriate arrangements with the Secretary of State to assign personnel from the Department of Energy or the National Laboratories of the Department of Energy to serve as dedicated advisors on energy matters in embassies of the United States or other United States diplomatic missions.”.