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S 1007 IS

110th CONGRESS1stRSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 1007CommentsClose CommentsPermalink

To direct the Secretary of State to work with the Government of Brazil and other foreign governments to develop partnerships that will strengthen diplomatic relations and energy security by accelerating the development of biofuels production, research, and infrastructure; to alleviate poverty, create jobs, and increase income, while improving energy security and protecting the environment.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

March 28, 2007CommentsClose CommentsPermalink

Mr. LUGAR introduced the following bill; which was read twice and referred to the Committee on Foreign RelationsCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To direct the Secretary of State to work with the Government of Brazil and other foreign governments to develop partnerships that will strengthen diplomatic relations and energy security by accelerating the development of biofuels production, research, and infrastructure; to alleviate poverty, create jobs, and increase income, while improving energy security and protecting the environment.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `United States-Brazil Energy Cooperation Pact of 2007'‘Western Hemisphere Energy Compact’. CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows: CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents. CommentsClose CommentsPermalink





Sec. 2. Findings. CommentsClose CommentsPermalink





Sec. 3. Definitions. CommentsClose CommentsPermalink





Sec. 4. Western Hemisphere Energy Cooperation Forum. CommentsClose CommentsPermalink





Sec. 5. United States-Brazil biofuels partnership. CommentsClose CommentsPermalink





Sec. 6. Biofuels feasibility studies. CommentsClose CommentsPermalink





Sec. 7. United States-Brazil bilateral tax treaty.Sec. 8. Multilateral development banks. CommentsClose CommentsPermalink





Sec. 98. Carbon credit trading mechanisms. CommentsClose CommentsPermalink





Sec. 109. Energy crisis response mechanism. CommentsClose CommentsPermalink





Sec. 110. Energy foreign assistance. CommentsClose CommentsPermalink





Sec. 121. Energy public diplomacy. CommentsClose CommentsPermalink





Sec. 13. Energy trade.Sec. 14. Western Hemisphere hydrocarbon production.Sec. 152. Report. CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress makes the following findings: CommentsClose CommentsPermalink





(1) The engagement of the United States Government on energy issues with the Government of Brazil and the governments of willing countries in the Western Hemisphere and throughout the world is a strategic priority for reducingbecause such engagement can help to-- CommentsClose CommentsPermalink





(A) reduce the potential for tensionconflict over energy resources, maintaining and expanding; CommentsClose CommentsPermalink





(B) maintain and expand reliable energy supplies, expanding use of renewable energy, and reducing; CommentsClose CommentsPermalink





(C) expand the use of renewable energy; and CommentsClose CommentsPermalink





(D) reduce the detrimental effects of energy import dependence. CommentsClose CommentsPermalink





(2) Current energy dialogues and agreements should be expanded and refocused, as needed, to meet this challenge.(2) e challenges described in paragraph (1). CommentsClose CommentsPermalink





(3) Countries in the Western Hemisphere can most effectively meet their common needs for energy security and sustainability through partnership and cooperation. Cooperation between governments on energy issues will enhance bilateral and regional relationships among countries in the Western Hemisphere. The Western Hemisphere is rich in natural resources, including biomass, oil, natural gas, and coal, and hasthere are significant opportunities for the production of renewable energy, including hydro, solar, and wind. Countries in the Western Hemisphere can provide convenient and reliable markets for their own energy needs and for foreign trade in energy goods and services. CommentsClose CommentsPermalink





(34) Development of sustainable energy alternatives in countries in the Western Hemisphere can improve energy security, balance of trade, and environmental quality, and can provide markets for energy technology and agricultural products. CommentsClose CommentsPermalink





(45) The Government of the United States has actively worked with the Government of Brazil to develop a strong biofuels partnership and to increase the production and use of biofuels. On March 9, 2007, the Memorandum of Understanding Between the United States and Brazil to Advance Cooperation on Biofuels, was signed in Sa.AE6o Paulo, Brazil. CommentsClose CommentsPermalink





(56) Brazil and the United States have led the world in the production of ethanol. Deeper cooperation on biofuels with other countries of the hemisphere would extend economic, security, and political benefits. CommentsClose CommentsPermalink





(67) The United States is committed to developing a biofuels partnership with the Government of Brazilin the Western Hemisphere that benefits the welfare of the people of the Western Hemisphere. According to the Latin American Energy Organization, the percentage of total energy consumption in each of the following countries in the Western Hemisphere that originated from imported crude oil and oil products in 2005 was-- CommentsClose CommentsPermalink





(A) 2 percent in Argentina; CommentsClose CommentsPermalink





(B) 93 percent in Barbados; CommentsClose CommentsPermalink





(C) 7 percent in Bolivia; CommentsClose CommentsPermalink





(D) 13 percent in Brazil; CommentsClose CommentsPermalink





(E) 55 percent in Chile; CommentsClose CommentsPermalink





(F) 4 percent in Colombia; CommentsClose CommentsPermalink





(G) 56 percent in Costa Rica; CommentsClose CommentsPermalink





(H) 77 percent in the Dominican Republic; CommentsClose CommentsPermalink





(I) 20 percent in Ecuador; CommentsClose CommentsPermalink





(J) 76 percent in El Salvador; CommentsClose CommentsPermalink





(K) 85 percent in Grenada; CommentsClose CommentsPermalink





(L) 72 percent in Guatemala; CommentsClose CommentsPermalink





(M) 100 percent in Guyana; CommentsClose CommentsPermalink





(N) 93 percent in Haiti; CommentsClose CommentsPermalink





(O) 81 percent in Honduras; CommentsClose CommentsPermalink





(P) 91 percent in Jamaica; CommentsClose CommentsPermalink





(Q) 10 percent in Mexico; CommentsClose CommentsPermalink





(R) 98 percent in Nicaragua; CommentsClose CommentsPermalink





(S) 100 percent in Panama; CommentsClose CommentsPermalink





(T) 46 percent in Paraguay; CommentsClose CommentsPermalink





(U) 39 percent in Peru; CommentsClose CommentsPermalink





(V) 34 percent in Suriname; CommentsClose CommentsPermalink





(W) 45 percent in Trinidad and Tobago; CommentsClose CommentsPermalink





(X) 79 percent in Uruguay; and CommentsClose CommentsPermalink





(Y) 0 percent in Venezuela. CommentsClose CommentsPermalink





(78) Private sector partnership and investment in all sources of energy is critical to providing energy security in the Western Hemisphere. Several countries in the Western Hemisphere have acted to endanger the rule of law necessary for such investmentendangered the investment climate. Other countries in the Western Hemisphere have been unable to make reforms necessary to create sufficient investment climates for increased necessary to increase the domestic production of energy. CommentsClose CommentsPermalink





(9) It is the policy of the United States to promote free trade in energy among countries in the Western Hemisphere, which would-- CommentsClose CommentsPermalink





(A) help support a growing energy industry; CommentsClose CommentsPermalink





(B) create jobs that benefit development and alleviate poverty; CommentsClose CommentsPermalink





(C) increase energy security through supply diversification; and CommentsClose CommentsPermalink





(D) strengthen relations among countries in the Western Hemisphere through closer cooperation and understanding. CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

In this Act: CommentsClose CommentsPermalink





(1) BIOFUEL- The term `biofuel'‘biofuel’ means any liquid fuel that is derived from biomass. CommentsClose CommentsPermalink





(2) BIOMASS- The term `biomass'‘biomass’ means any organic matter that is available on a renewable or recurring basis, including agricultural crops, trees, wood, wood wastes and residues, plants (including aquatic plants), grasses, residues, fibers, animal wastes, municipal wastes, and other waste materials. CommentsClose CommentsPermalink





(3) PARTNER COUNTRY- The term `partner country' means a country that‘partner country’ means a country that, along with the United States and Brazil, joins the Western Hemisphere Energy Cooperation Forum established pursuant to section 4 and has agreed to conduct a biofuels feasibility study under section 6. CommentsClose CommentsPermalink





(4) REGIONAL DEVELOPMENT BANKS- The term `regional development banks'‘regional development banks’ means the African Development Bank, the Inter-American Development Bank, the Andean Development Corporation, the European Bank for Reconstruction and Development, and the Asian Development Bank. CommentsClose CommentsPermalink

SEC. 4. WESTERN HEMISPHERE ENERGY COOPERATION FORUM.

(a) Establishment- The Secretary of State, in coordination with the Secretary of Energy, shall seek to establish a regional-based ministerial forum to be known as the Western Hemisphere Energy Cooperation Forum (referred to in this subsection as the `Energy Forum')‘Energy Forum’). The United States Government shall initially provide the framework for the Energy Forum and shall seek to establish a rotating chairmanship, in consultation with the Government of Brazil. CommentsClose CommentsPermalink





(b) Purposes- The Energy Forum should seek-- CommentsClose CommentsPermalink





(1) to strengthen relationships between the United States and other countries of the Western Hemisphere through cooperation on energy issues; CommentsClose CommentsPermalink





(2) to enhance cooperation, including information and technology sharing, between major energy producers and major energy consumers in the Western Hemisphere, particularly among the Governments of Brazil, Canada, Mexico, the United States, and Venezuela; CommentsClose CommentsPermalink





(3) to explore possibilities to work with countries in the Western Hemisphere to promote renewable energy production (particularly in biofuels) and to lessen dependence on oil imports without reducing food availability (particularly in Mexico and Central American countries); CommentsClose CommentsPermalink





(4) to ensure that energy contributes to the economic, social, and environmental enhancement of the countries of the Western Hemisphere; CommentsClose CommentsPermalink





(5) to provide an opportunity for open dialogue and joint commitments among Energy Forum countries and with private industry; and CommentsClose CommentsPermalink





(6) to provide participating countries the flexibility necessary to cooperatively address broad challenges posed to the energy supply of the Western Hemisphere to find solutions that are politically acceptable and practical in policy terms. CommentsClose CommentsPermalink





(c) Activities- The United States Government, in cooperation with Energy Forum countries, shall seek to implement, in cooperation with Energy Forum countries-- CommentsClose CommentsPermalink





(1) an energy crisis initiative that will promote national and regional measures to respond to temporary energy supply disruptions, including participating in a Western Hemisphere energy crisis response mechanism in accordance with section 109(b); CommentsClose CommentsPermalink





(2) an energy sustainability initiative to facilitate long-term supply security by fostering reliable supply sources of fuels and improved energy efficiency, including-- CommentsClose CommentsPermalink





(A) developing, deploying, and commercializing technologies for sustainable renewable fuels within the region; CommentsClose CommentsPermalink





(B) promoting production and trade in sustainable energy, including energy from biomass; CommentsClose CommentsPermalink





(C) facilitating investment, trade, and technology cooperation in energy infrastructure, petroleum products, natural gas (including liquefied natural gas), energy efficiency (including automotive efficiency), clean fossil energy, renewable energy, and carbon sequestration; CommentsClose CommentsPermalink





(D) promoting regional infrastructure and market integration; CommentsClose CommentsPermalink





(E) developing effective and stable regulatory frameworks; CommentsClose CommentsPermalink





(F) developing renewable fuels standards and renewable portfolio standardspolicy instruments to encourage the use of renewable energy and improved energy efficiency; CommentsClose CommentsPermalink





(G) establishing educational training and exchange programs between Energy Forum countries; and CommentsClose CommentsPermalink





(H) identifying and removing barriers to trade in technology, services, and commodities; CommentsClose CommentsPermalink





and(3) an energy for development initiative to promote energy access for underdeveloped areas through energy policy and infrastructure development, including-- CommentsClose CommentsPermalink





(A) increasing access to energy services for the poor; CommentsClose CommentsPermalink





(B) improving energy sector market conditions; CommentsClose CommentsPermalink





(C) promoting rural development though biomass energy production and use; CommentsClose CommentsPermalink





(D) increasing transparency of, and participation in, energy infrastructure projects; CommentsClose CommentsPermalink





(E) promoting development and deployment of technology for clean and sustainable energy development, including biofuel and clean coal technologies; and CommentsClose CommentsPermalink





(F) facilitating the use of carbon sequestration methods in agriculture and forestry and linking greenhouse gas emissions reduction programs to international carbon markets; and CommentsClose CommentsPermalink





(4) biofuels studies, with country studies provided by each partner country, in accordance with section 6. CommentsClose CommentsPermalink





(d) Implementation- It is the sense of Congress that the Energy Forum--(1) should should-- CommentsClose CommentsPermalink





(1) meet at least once every 2 years;(2) may and CommentsClose CommentsPermalink





(2) meet on a subregional basis; and(3) shall be co-chaired by an official of the Department of State and an official of the Department of Energy, as needed. CommentsClose CommentsPermalink





(e) Western Hemisphere Energy Industry Group- CommentsClose CommentsPermalink





(1) AUTHORITY- The Secretary of State, in coordination with the Secretary of Commerce and the Secretary of Energy, shall approach the governments of other countries in the Western Hemisphere to seek cooperation in establishing a Western Hemisphere Energy Industry Group (referred to in this subsection as the `Energy ‘Energy Group’) within the Western Hemisphere Energy Cooperation Forum. The Energy Group '). The Energy Group should be coordinated by the United States Government and shouldshould include representatives from industries and governments in the Western Hemisphere. CommentsClose CommentsPermalink





(2) PURPOSE- The purpose of the Energy Group should be to-- CommentsClose CommentsPermalink





(A) increase public-private partnerships; CommentsClose CommentsPermalink





(B) foster private investment; and CommentsClose CommentsPermalink





(C) enable countries in the Western Hemisphere to devise energy agendas compatible with industry capacity and cognizant of industry goals. CommentsClose CommentsPermalink





(3) DISCUSSION TOPICS- TIt is the sense of Congress that the Energy Group should discuss-- CommentsClose CommentsPermalink





(A) promoting a secure investment climate; CommentsClose CommentsPermalink





(B) developing and deploying biofuels and other alternative fuels and clean electrical production facilities, including clean coal and carbon sequestrationcapture and storage; CommentsClose CommentsPermalink





(C) developing and deploying energy efficient technologies and practices in the industrial, residential, and transportation sectors; CommentsClose CommentsPermalink





(D) investing in oil and natural gas production and distribution; CommentsClose CommentsPermalink





(E) maintaining transparency of energy production, trade, consumption, and reserves data; CommentsClose CommentsPermalink





(F) promoting biofuels research; and CommentsClose CommentsPermalink





(G) training and education exchange programs. CommentsClose CommentsPermalink





(f) Oil and Natural Gas Working Group- CommentsClose CommentsPermalink





(1) ESTABLISHMENT- The Secretary of Energy, in cooperation with the Secretary of State, shall facilitatUnited States Government shall explore the establishment of the Oil and Gas Working Group within the Western Hemisphere Energy Cooperation Forum or the Energy Industry Group. CommentsClose CommentsPermalink





(2) PURPOSES- The Oil and Gas Working Group should strengthen dialogue between international oil companies, national oil companies, and civil society groups on issues related to international standards on transparency, social responsibility, and best practices in leasing and management of oil and natural gas projects. CommentsClose CommentsPermalink





(g) Appropriation- There are authorized to be appropriated $3,000,000 to carry out this section. CommentsClose CommentsPermalink

SEC. 5. UNITED STATES-BRAZIL BIOFUELS PARTNERSHIP.

(a) In General- The Secretary of State, in coordination with the Secretary of Energy, shall work with the Government of Brazil to-- CommentsClose CommentsPermalink





(1) coordinate efforts to promote the production and use of biofuels among all interested countries, giving preference to the countries in the Western Hemisphereose countries that are among the poorest (as determined by the Inter-American Development Bank) and most dependent on foreign sources of fuel (particularly oil)petroleum imports, including-- CommentsClose CommentsPermalink





(A) coordinating the biofuels feasibility studies described in section 6; CommentsClose CommentsPermalink





(B) collaborating on policy and regulatory measures to-- CommentsClose CommentsPermalink





(i) promote domestic biofuels production and use, including related agricultural and environmental measures; CommentsClose CommentsPermalink





(ii) reform automotive sectors to incorporate biofuels use including increased efficiency, reduced emissions, and integration with high-efficiency advanced technologies; and CommentsClose CommentsPermalink





(iii) reform fueling infrastructure to allow for use of biofuels and other alternative fuels; CommentsClose CommentsPermalink





(2) develop a global strategy to work withinvite the European Union, China, India, South Africa, Japan, and other interested countries to join in and expand upon existing international efforts to promote the development of a global strategy to create global biofuels markets and promote biofuels production and use in developing countries; CommentsClose CommentsPermalink





(3) assess the feasibility of working with the World Bank and relevant regional development banks regarding-- CommentsClose CommentsPermalink





(A) biofuels production capabilities; and CommentsClose CommentsPermalink





(B) infrastructure, research, and training related to such capabilities; and CommentsClose CommentsPermalink





(4) develop a joint and coordinated strategy regarding the construction and retrofitting of pipelines and terminals near major fuel distribution centers, coastal harbors, and railroads. CommentsClose CommentsPermalink





(b) International Agricultural Extension Programs- The Secretary of Agriculture shall work with the Government of Brazil to facilitate joint agricultural extension activities related to biofuels crop production, biofuels production, and environmental and greenhouse gas emissions reduction practices. CommentsClose CommentsPermalink





(c) Educational Grants- The Secretary of Energy, in coordination with the Secretary of State, and in collaboration with the Government of Brazil, shall establish a grant program to finance advanced biofuels research and collaboration between academic and research institutions in the United States and Brazil. CommentsClose CommentsPermalink





(d) Funding Sources- CommentsClose CommentsPermalink





(1) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for fiscal year 20089-- CommentsClose CommentsPermalink





(A) $3,000,000 to carry out subsection (a); CommentsClose CommentsPermalink





(B) $5,000,000 to carry out subsection (b); and CommentsClose CommentsPermalink





(C) $7,000,000 to carry out subsection (c). CommentsClose CommentsPermalink





(2) SUPPLEMENTAL FUNDING SOURCES- The Secretary of State shall work with the Government of Brazil, the governments of partner countries, regional development banks, the Organization of American States, and other interested parties to identify supplemental funding sources for the biofuels feasibility studies described in section 6. CommentsClose CommentsPermalink

SEC. 6. BIOFUELS FEASIBILITY STUDIES.

(a) In General- Each partner country shall participate in a study toThe Secretary of State, in consultation with the Secretary of Energy, shall work with each partner country to conduct a study to determine the feasibility of increasing the production and use of biofuels in such country. CommentsClose CommentsPermalink





(b) Analysis of the Energy Policy Framework- The study conducted under subsection (a) shall analyze-- CommentsClose CommentsPermalink





(1) the energy policy of the partner country, particularly the impact of such policy on the promotion of biofuels; and CommentsClose CommentsPermalink





(2) the status and impacts of any existing biofuel programs of the country. CommentsClose CommentsPermalink





(c) Assessment of Demand- The study conducted under subsection (a) shall assess, with respect to the partner country-- CommentsClose CommentsPermalink





(1) the quantitative and qualitative current and projected demand for energy by families, villages, industries, public transportation infrastructure, and other energy consumers; CommentsClose CommentsPermalink





(2) the current and projected future energyfuture consumption by the heat, electricity, and transportation sectors; CommentsClose CommentsPermalink





(3) the demand for high-quality transportation fuel; CommentsClose CommentsPermalink





(4) the local market prices for various energy sources; and CommentsClose CommentsPermalink





(5) the employment, income generation, and rural development opportunities from biofuel industry. CommentsClose CommentsPermalink





(d) Assessment of Resources- The study conducted under subsection (a) shall-- CommentsClose CommentsPermalink





(1) assess the present and future biomass resources that are available in each geographic region of the participating country to meet the demand assessed under subsection (c); CommentsClose CommentsPermalink





(2) include a plan for increasing the availability of existing biomass resources in the country; and CommentsClose CommentsPermalink





(3) include a plan for developing new, sustainable biomass resources in the country, including wood, manure, agricultural residues, sewage, and organic waste. CommentsClose CommentsPermalink





(e) Analysis of Available Technologies and Systems- Building upon the results of the assessments described in subsections (c) and (d), the study shall-- CommentsClose CommentsPermalink





(1) analyze available technologies and systems for utilizing biofuels in the country, including-- CommentsClose CommentsPermalink





(A) technologies for the conversion of biomass crops and agroforestry residues in pellets and briquettes; CommentsClose CommentsPermalink





(B) low-pollution stoves; CommentsClose CommentsPermalink





(C) biogas production; CommentsClose CommentsPermalink





(D) charcoal and activated coal production; CommentsClose CommentsPermalink





(E) biofuel production; CommentsClose CommentsPermalink





(F) combustion and co-combustion technologies; CommentsClose CommentsPermalink





(G) the availability of biofuels technologies in various geographic regions; and CommentsClose CommentsPermalink





(H) the economic viability of biomass technologies; and CommentsClose CommentsPermalink





(2) compare such technologies and systems to conventional energy supplies with respect to cost-effectiveness, maintenance, social acceptability, and the impact on development. CommentsClose CommentsPermalink





(f) Environmental Assessment- The study conducted under subsection (a) shall assess-- CommentsClose CommentsPermalink





(1) the likely impacts of increased biomass harvesting and production, and biofuels production and use on environmental sustainability, including effects on carbon emissions; and CommentsClose CommentsPermalink





(2) the availability of financing from global carbon credit trading mechanisms. CommentsClose CommentsPermalink





(g) Food Security Assessment- The study prepared by each partner country under subsection (a) shall assess the likely impacts on food stocks and prices in partner countries. CommentsClose CommentsPermalink





(h) Development of Policy Options To Promote Biofuel Production and Use- CommentsClose CommentsPermalink





(1) IN GENERAL- The study prepared by each partner country under subsection (a) shall identify and evaluate policy options to promote biofuel production and use, after taking into account-- CommentsClose CommentsPermalink





(A) the existing energy policy of the country; and CommentsClose CommentsPermalink





(B) the technologies available to convert local biomass resources into biofuels. CommentsClose CommentsPermalink





(2) COORDINATION- In conducting the evaluation under paragraph (1), the participating country shallner country shall involve local, national, and international public and private institutions with responsibility or expertise in biofuel production and use. CommentsClose CommentsPermalink





(3) PRINCIPAL ISSUES- The study shall address-- CommentsClose CommentsPermalink





(A) potential biomass in the country and barriers for the production of biofuels from such biomass products; CommentsClose CommentsPermalink





(B) strategies for creating a market for biomass products in the country; CommentsClose CommentsPermalink





(C) the potential contribution of biofuels to reducing fossil fuel consumption in the country; CommentsClose CommentsPermalink





(D) environmental sustainability issues and the mitigating effect of increased biofuel production and use on carbon emissions of increased biofuel production; CommentsClose CommentsPermalink





(E) the potential contribution of biofuels to economic development, poverty reduction, and sustainability of energy resources; CommentsClose CommentsPermalink





(F) programs for the use of biofuels in the transportation sector; CommentsClose CommentsPermalink





(G) economic cooperation across international borders to increase biofuel production and use; CommentsClose CommentsPermalink





(H) technology collaboration and joint ventures and technological, cultural, and legal barriers that may impede such technological cooperation; and CommentsClose CommentsPermalink





(I) the economic aspects of the promotion of biofuels, including job creation, financing and loan mechanisms, credit mobilization, investment capital, and market penetration. CommentsClose CommentsPermalink





(i) Authorization of Appropriations- There are authorized to be appropriated $20,000,000 for fiscal year 20089 to carry out this section. CommentsClose CommentsPermalink

SEC. 7. UNITED STATES-BRAZIL BILATERAL TAX TREATY.The Secretary of State, in coordination with the Secretary of the Treasury, shall renew negotiations on a bilateral tax treaty with Brazil.SEC. 8. MULTILATERAL DEVELOPMENT BANKS.

The Secretary of the Treasury shall inform the managements of the international financial institutions and the public that it is the policy of the United States that assistance by such institutions should encourage development of renewable energy sources, including energy derived from biomass. CommentsClose CommentsPermalink

SEC. 98. CARBON CREDIT TRADING MECHANISMS.

(a) In General- The Secretary of State shall work with interested governments in the Western Hemisphere and other countries to organize regional and hemispheric carbon trading mechanisms under the United Nations Framework Convention on Climate Change and existing trade and financial agreements to-- CommentsClose CommentsPermalink





(1) establish special carbon credits for the preservation of tropical rain forests; CommentsClose CommentsPermalink





(2) use greenhouse gas-reducing farming practices; CommentsClose CommentsPermalink





(3) jointly fund greenhouse gas sequestration studies and experiments in various geological formations; and CommentsClose CommentsPermalink





(4) jointly fund climate mitigation studies in vulnerable areas in the Western Hemisphere. CommentsClose CommentsPermalink





(b) Authorization of Appropriations- There areis authorized to be appropriated $5,000,000 for fiscal year 20089 to carry out this section. CommentsClose CommentsPermalink

SEC. 109. ENERGY CRISIS RESPONSE MECHANISM.

(a) Findings- Congress makes the following findings: CommentsClose CommentsPermalink





(1) Cooperation between the United States Government and governments of other countries during energy crises promotes the national security of the United States and of the cooperating countries. CommentsClose CommentsPermalink





(2) Credible contingency plans to respond to energy shortages may serve as deterrents to the manipulation of energy supplies by export and transit countries. CommentsClose CommentsPermalink





(3) The vulnerability of most countries in the Western Hemisphere to supply disruptions from political, natural, or terrorism causes may introduce instability in the Western Hemisphere and can be a source of conflict, despite the existence of major energy resources in the Western Hemisphere. The United States and Canada are the only members of the International Energy Program in the Western Hemisphere. CommentsClose CommentsPermalink





(4) Integrating countries in the Western Hemisphere into regional and international agreements for the management of energy emergencies will benefit market stability and encourage development in participating countries. CommentsClose CommentsPermalink





(b) Establishment of an Energy Crisis Response Mechanism for the Western Hemisphere- CommentsClose CommentsPermalink





(1) AUTHORITY- The Secretary of State, in coordination with the Secretary of Energy and the Secretary of DefenseEnergy, shall immediately seek to establish a Western Hemisphere energy crisis response mechanism. CommentsClose CommentsPermalink





(2) SCOPE- The mechanism established under paragraph (1) should include, as appropriate-- CommentsClose CommentsPermalink





(A) a real-time information sharing and coordinating mechanism to respond to energy supply emergencies; CommentsClose CommentsPermalink





(B) technical assistance in the development and management of national and regional strategic reserves within the Western Hemisphere; CommentsClose CommentsPermalink





(C) technical assistance in developing national programs to meet the requirements of membership in the international energy application procedure described in subsection (c)he promotion of increased energy infrastructure integration between countries; CommentsClose CommentsPermalink





(D) emergency demand restraint measures; CommentsClose CommentsPermalink





(E) energy switching preparedness and alternative energy production capacity; CommentsClose CommentsPermalink





(F) ongoing demand intensity reduction programs; and CommentsClose CommentsPermalink





(G) measures to strengthen sea lane and infrastructure security. CommentsClose CommentsPermalink





(3) MEMBERSHIP- The Secretary shall seek to include in the Western Hemisphere energy crisis response mechanism membership forof each major energy producer and major energy consumer in the Western Hemisphere and other members of the Western Hemisphere Energy Cooperation Forum established pursuant to section 4(a). CommentsClose CommentsPermalink





(4) STUDIES-(A) SUPPLY VULNERABILITY STUDY- The Secretary of Energy shall-- CommentsClose CommentsPermalink





(i) conduct a study of supply vulnerabilities for naturalA) conduct a study of supply vulnerabilities for natural gas in the Western Hemisphere; and CommentsClose CommentsPermalink





(iiB) submit a report to Congresthe appropriate congressional committees that includes recommendations for infrastructure and regulatory needs for reducing supply disruption vulnerability and international coordination. CommentsClose CommentsPermalink





(B) COORDINATION MECHANISM ASSESSMENT- The Secretary of Energy shall assess the feasibility of developing coordination mechanisms to ensure a consistent supply of biofuels, especially in the event of an interruption of the oil supply.(c) International Energy Program Application Procedure-(1) AUTHORITY- The President should place on the agenda for discussion at the Governing Board of the International Energy Agency, as soon as practicable, the merits of establishing an international energy program application procedure.(2) PURPOSE- The purpose of the procedure described in paragraph (1) is to allow countries that are not members of the International Energy Program to apply to the Governing Board of the International Energy Agency for allocation of petroleum reserve stocks in times of emergency on a grant or loan basis. Such countries should also receive technical assistance for, and be subject to, conditions requiring development and management of national programs for energy emergency preparedness, including demand restraint, fuel switching preparedness, and development of alternative fuels production capacity.(d) Authorization of Appropriations- There areis authorized to be appropriated $5,000,000 for fiscal year 20089 to carry out this section. CommentsClose CommentsPermalink

SEC. 110. ENERGY FOREIGN ASSISTANCE.

(a) In General- The Administrator of the United States Agency for International Development (referred to in this section as the `Administrator') shall seek to increase United States ‘Administrator’) shall seek to increase United States foreign assistance programming in renewable energy, including in activities to reduce energy import dependence through the use of biofuels. CommentsClose CommentsPermalink





(b) Development Strategy Review- The Administrator shall-- CommentsClose CommentsPermalink





(1) review country assistance strategies to increase assistance for renewable energy activities. Results of this review shall be reported to Congress no; and CommentsClose CommentsPermalink





(2) submit the results of this review to the appropriate congressional committees not later than 180 days following passage of this aafter the date of the enactment of this Act. CommentsClose CommentsPermalink





(c) Expedited Sustainable Energy Grants- CommentsClose CommentsPermalink





(1) AUTHORIZATION- The Administrator is authorized to award grants to nongovernmental organizations for sustainable energy and job creation projects in at-risk nations, such as Haiti. Grant funds shall be provided to grantees on an expedited basis upon approval of the eligible project. CommentsClose CommentsPermalink





(2) AUTHORIZATION OF APPROPRIATIONS- There areis authorized to be appropriated $5,000,000 to the United States Agency for International Development for grants under this subsection. CommentsClose CommentsPermalink

SEC. 121. ENERGY PUBLIC DIPLOMACY.

(a) Authorization of Appropriations- There areis authorized to be appropriated $5,000,000 to the Department of State for public educationdiplomacy activities on renewable energy in the Western Hemisphere. CommentsClose CommentsPermalink





(b) Limitation- Not less than 50 percent of any amount appropriated pursuant to paragraph (1) shall be used for education activities implemented through civil society organizations. CommentsClose CommentsPermalink

SEC. 13. ENERGY TRADE.(a) Findings- Congress makes the following findings:(1) It is the policy of the United States to promote free trade in energy among countries in the Western Hemisphere, which would--(A) help support a growing energy industry;(B) create jobs that benefit development and alleviate poverty;(C) increase energy security through supply diversification; and(D) strengthen relations among countries in the Western Hemisphere through closer cooperation and understanding.(2) Several countries in the Western Hemisphere, including the United States, have protective tariffs and duties that limit the benefits that would accrue from free trade in energy. The United States Government should work with foreign governments to remove trade barriers in energy.(3) The United States should implement a plan to open its markets to trade in biofuels. This plan should--(A) encourage expanded investment and innovation in the biofuels industry in the United States; and(B) revise Federal incentives for the domestic production of biofuels so they do not finance biofuels investment abroad.(b) Ethanol Tariff Study- The Secretary of Commerce, in cooperation with the Secretary of State, shall conduct a study that evaluates--(1) tariffs, duties, and other restrictions on trade in biofuels in the Western Hemisphere, including the United States;(2) the economic impacts resulting from the restrictions referred to in paragraph (1);(3) the impacts on United States foreign policy resulting from the restrictions referred to in paragraph (1);(4) the effect of restrictions referred to in paragraph (1) on United States obligations to the World Trade Organization;(5) the probable impacts on the economy and biofuels industry of the United States of--(A) removing all duties and tariffs on biofuels imports, beginning on January 1, 2009;(B) removing all duties and tariffs on biofuels imports and making various revisions to the tax credits for ethanol production in the United States, including shifting the blend credit to be a producers credit and replacement of the current credit with a variable credit scheme;(C) removing all duties and tariffs and increasing the renewable fuels standard mandate to 30,000,000,000 gallons by 2020 and 60,000,000,000 gallons by 2030, including extending the renewable fuels standard, with revisions favoring the use of next generation biofuels and domestic production; and(D) gradually removing the duties and tariffs over a 5- and 10-year period; and(6) the probable impacts of removing United States tariffs and duties under the conditions described in paragraph (5) on biofuels production, economic development, and poverty alleviation in countries in the Western Hemisphere.(c) Ethanol Quotas- The Secretary of Commerce shall conduct a study examining the likely impacts and feasibility of--(1) introducing a new, duty-free quota for biofuels that is imported from countries receiving normal trade relations treatment from the United States that is equal to 15 percent of the biofuels consumed annually in the United States;(2) increasing the quota in ethanol imports to the United States from 7 percent to 15 percent over the next several years and expanding the scope of the quota beyond countries participating in the Caribbean Basin Initiative to other least developed countries and to all countries who have received a Millennium Challenge grant; and(3) creating a separate quota for any other country receiving normal trade relations treatment from the United States.SEC. 14. WESTERN HEMISPHERE HYDROCARBON PRODUCTION.(a) Study Partnership With Mexico- The Secretary of Energy shall seek to work with the Government of Mexico to conduct a technical analysis of the status of Mexican oil and gas production, future technological and investment needs, and recommendations for maintaining and increasing hydrocarbon production consistent with the priorities of the Government of Mexico.(b) Natural Gas Study-(1) STUDY- The Secretary of Commerce, in consultation with the Secretary of Energy, shall conduct a study of--(A) the current state of natural gas production in the Western Hemisphere; and(B) future natural gas demand and supply projections.(2) REPORT- The Secretary of Commerce shall submit a report to Congress that contains recommendations for the integration of the natural gas sector, including developing a liquefied natural gas infrastructure.(c) Authorization of Appropriations- There are authorized to be appropriated $1,000,000 for fiscal year 2008 to carry out this section.SEC. 152. REPORT.

The Secretary of State, in consultation with the Secretary of Energy, shall submit an annual report to Congress on the activities carried out to implement this Act. CommentsClose CommentsPermalink