EITI is an international standard. The Extractive Industries Transparency Initiative, or EITI, is a voluntary, global effort designed to strengthen accountability and public trust for the revenues paid and received for a country's oil, gas and mineral resources. Countries that follow the standard publish a report in which governments and companies publicly disclose royalties, rents, bonuses, taxes and other payments from oil, gas, and mining resources. The Standard has two core elements:
1 | TRANSPARENCY
Companies publish what they pay and governments publish what they receive in an EITI Report.
2 | ACCOUNTABILITY
This process is overseen by a multi-stakeholder group of governments, companies and civil society.
The United States is committed to implementing the EITI Standard. In September 2011, the U.S. announced that it would begin the multi-year process of becoming an EITI Compliant country. The U.S. intends to implement EITI to provide accessible and useful information about public resources and their associated revenues. Doing so will bolster the social license to operate and strengthen the investment climate for extractive industries. Public policy will be better informed, and public trust will be strengthened. With this effort in participatory government and collaborative decision-making, public financial management will be enhanced and citizens will ensure that the government receives a fair return for the public resources it manages on their behalf.
Initial Steps. In December 2012, following a comprehensive stakeholder assessment and call for nominations, the Secretary of the Interior formed the USEITI Multi-Stakeholder Group Federal Advisory Committee, also known as the MSG. The USEITI MSG is comprised of 21 members and 20 alternates who represent a variety of stakeholders. The USEITI MSG has met several times since February 2013 to oversee EITI implementation, define the scope and materiality for initial USEITI reporting, and prepare an application for EITI candidacy. On December 11, 2013, the MSG approved the U.S. Candidacy Application, and on December 19, 2013, Secretary of the Interior submitted the Application to the EITI International Board.