109TH CONGRESS

2D SESSION S. 1950

AN ACT

To promote global energy security through increased cooperation between the United States and India in diversifying

sources of energy, stimulating development of alternative

fuels, developing and deploying technologies that promote

the clean and efficient use of coal, and improving energy

efficiency.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘United States-India

5 Energy Security Cooperation Act of 2006’’.
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1 SEC. 2. FINDINGS.

2 Congress makes the following findings:

3 (1) The December 2004 National Intelligence

4 Council report entitled ‘‘Mapping the Global Future

5 in 2020’’ states that the single most important fac6 tor affecting the demand for energy will be global

7 economic growth, especially that of China and India.

8 It is estimated that the current economic growth

9 rate in India is approximately 7 percent of gross do10 mestic product. India will need to double its energy

11 consumption within the next 15 years to maintain

12 steady rates of economic growth.

13 (2) The United States and India launched an

14 energy dialogue on May 31, 2005, aimed at building

15 upon a broad range of existing energy cooperation

16 and developing new avenues of collaboration on en17 ergy. These efforts will promote increased trade and

18 investment in the energy sector by utilizing re19 sources in the public and private sectors, focusing on

20 oil and gas, power and energy efficiency, new tech21 nologies and renewable energy, coal and clean coal

22 technology, and civil nuclear cooperation. In his tes23 timony before the Committee on Foreign Relations

24 of the Senate on July 26, 2005, Under Secretary of

25 Energy David Garman said, ‘‘The United States and

26 India recognize their mutual interests are best
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1 served by working together in a collaborative fashion

2 to ensure stability in global energy markets.’’.

3 (3) As the sixth largest energy consumer in the

4 world, India satisfies 70 percent of its oil demand

5 with imports and has embarked on an aggressive oil

6 and gas exploration program. The largest discovery

7 of natural gas in the world in 2002 occurred in

8 India. In 2003, the largest discovery of oil in the

9 world occurred in the state of Rajasthan in India.

10 External funding and investment in the oil and gas

11 industry in India is necessary to maximize recovery

12 from oil fields, but an improved investment environ13 ment in India is needed to attract such investment.

14 (4) India is the world’s third largest producer

15 of coal and will continue to rely on coal as a major

16 energy source to support expanding industrial and

17 electric power generation needs. However, many of

18 India’s coal-fired plants are inefficient and lack ade19 quate pollution control equipment. In his address to

20 a joint session of the United States Congress on

21 July 19, 2005, Prime Minister of India Manmohan

22 Singh noted the importance of allowing greater ac23 cess for developing countries to clean coal tech24 nologies and of exploring partnerships that encour25 age more efficient use of hydrocarbon resources.
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1 (5) India provides a market for United States

2 technologies that promote the clean and efficient use

3 of energy.

4 (6) India has announced plans to develop a

5 5,000,000 ton strategic crude oil reserve, which is

6 expected to be completed by 2009.

7 (7) United States energy experts have empha8 sized the need for the United States to increase col9 laboration with other countries—

10 (A) to develop and deploy energy tech11 nologies that will not be pursued absent greater

12 Federal support;

13 (B) to increase investment in cooperative

14 international energy research; and

15 (C) to expand the global network of stra16 tegic petroleum reserves.

17 SEC. 3. STATEMENT OF POLICY.

18 It is the policy of the United States—

19 (1) to cooperate with India to address common

20 energy challenges, to ensure future global energy se21 curity, and to increase the world-wide availability of

22 clean energy;

23 (2) to promote dialogue and increased under24 standing between the United States and India on

25 our respective national energy policies and strategies
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1 as an integral part of the expanding strategic part2 nership between the two countries; and

3 (3) to collaborate with India in energy research

4 that fosters market-based approaches to energy se5 curity and offers the promise of technological break6 throughs that reduce oil dependency globally.

7 SEC. 4. ASSISTANCE TO SUPPORT ENERGY COOPERATION.

8 (a) AUTHORIZATION.—The President is authorized to

9 establish programs in support of greater energy coopera10 tion between the United States and India.

11 (b) ACTIVITIES.—Assistance may be provided under

12 this section for cooperation related to—

13 (1) research, development, and deployment of

14 clean coal and emission reduction technologies and

15 carbon sequestration projects;

16 (2) research, development, and deployment of

17 alternative fuel sources, such as ethanol, bio-mass,

18 and coal-based fuels;

19 (3) research, development, and deployment of

20 energy efficiency and renewable energy projects and

21 technologies;

22 (4) research related to commercially available

23 technologies that promote the clean and efficient use

24 of energy in India; and
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1 (5) technical assistance in support of the devel2 opment by the Government of India of a strategic oil

3 reserve to allow India to cope with short-term dis4 ruptions to global oil supplies without causing

5 shocks to India’s market or the global market.

6 SEC. 5. REPORT ON ENERGY COOPERATION.

7 (a) IN GENERAL.—Not later than 180 days after the

8 date of the enactment of this Act, the Secretary of State

9 shall, in coordination with the Secretary of Energy, submit

10 to the Committee on Foreign Relations and the Committee

11 on Energy and Natural Resources of the Senate and the

12 Committee on Energy and Commerce and the Committee

13 on International Relations of the House of Representa14 tives a report on energy security cooperation between the

15 United States and India.

16 (b) CONTENT.—The report required under subsection

17 (a) shall describe—

18 (1) the ways in which the United States and

19 India have cooperated on energy research and devel20 opment activities;

21 (2) joint projects that have been initiated using

22 assistance authorized under section 4, and the con23 tribution such assistance has made to improving

24 global energy security; and
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1 (3) plans for future energy cooperation and

2 joint projects between the United States and India.

Passed the Senate July 24, 2006.

Attest:

Secretary.
109TH CONGRESS

2D SESSION S. 1950

AN ACT

To promote global energy security through inenergy efficiency. the clean and efficient use of coal, and improving oping and deploying technologies that promote ulating development of alternative fuels, devel- and India in diversifying sources of energy, stim- creased cooperation between the United States