II 

110TH CONGRESS 

1ST SESSION S. 1007 

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. 

IN THE SENATE OF THE UNITED STATES 

MARCH 28, 2007 

Mr. LUGAR introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL 

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. 

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

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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘United States-Brazil Energy Cooperation Pact of 2007’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

Sec. 4. Western Hemisphere Energy Cooperation Forum. 

Sec. 5. United States-Brazil biofuels partnership. 

Sec. 6. Biofuels feasibility studies. 

Sec. 7. United States-Brazil bilateral tax treaty. 

Sec. 8. Multilateral development banks. 

Sec. 9. Carbon credit trading mechanisms. 

Sec. 10. Energy crisis response mechanism. 

Sec. 11. Energy foreign assistance. 

Sec. 12. Energy public diplomacy. 

Sec. 13. Energy trade. 

Sec. 14. Western Hemisphere hydrocarbon production. 

Sec. 15. Report. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 

8 (1) The engagement of the United States Gov9 ernment with the Government of Brazil and the gov10 ernments of willing countries in the Western Hemi11 sphere and throughout the world is a strategic pri12 ority for reducing the potential for tension over en13 ergy resources, maintaining and expanding reliable 

14 energy supplies, expanding use of renewable energy, 

15 and reducing the detrimental effects of energy im16 port dependence. Current energy dialogues and 

17 agreements should be expanded and refocused, as 

18 needed, to meet this challenge. 

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1 (2) Countries in the Western Hemisphere can 

2 most effectively meet their common needs for energy 

3 security and sustainability through partnership and 

4 cooperation. Cooperation between governments on 

5 energy issues will enhance bilateral and regional re6 lationships among countries in the Western Hemi7 sphere. The Western Hemisphere is rich in natural 

8 resources, including biomass, oil, natural gas, and 

9 coal, and has significant opportunities for the pro10 duction of renewable energy, including hydro, solar, 

11 and wind. Countries in the Western Hemisphere can 

12 provide convenient and reliable markets for their 

13 own energy needs and for foreign trade in energy 

14 goods and services. 

15 (3) Development of sustainable energy alter16 natives in countries in the Western Hemisphere can 

17 improve energy security, balance of trade, and envi18 ronmental quality, and can provide markets for en19 ergy technology and agricultural products. 

20 (4) The Government of the United States has 

21 actively worked with the Government of Brazil to de22 velop a strong biofuels partnership and to increase 

23 the production and use of biofuels. On March 9, 

24 2007, the Memorandum of Understanding Between 

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1 the United States and Brazil to Advance Coopera2 tion on Biofuels, was signed in Sa ̃o Paulo, Brazil. 

3 (5) Brazil and the United States have led the 

4 world in the production of ethanol. Deeper coopera5 tion on biofuels with other countries of the hemi6 sphere would extend economic, security, and political 

7 benefits. 

8 (6) The United States is committed to devel9 oping a biofuels partnership with the Government of 

10 Brazil that benefits the welfare of the people of the 

11 Western Hemisphere. According to the Latin Amer12 ican Energy Organization, the percentage of total 

13 energy consumption in each of the following coun14 tries in the Western Hemisphere that originated 

15 from imported crude oil and oil products in 2005 

16 was— 

17 (A) 2 percent in Argentina; 

18 (B) 93 percent in Barbados; 

19 (C) 7 percent in Bolivia; 

20 (D) 13 percent in Brazil; 

21 (E) 55 percent in Chile; 

22 (F) 4 percent in Colombia; 

23 (G) 56 percent in Costa Rica; 

24 (H) 77 percent in the Dominican Republic; 

25 (I) 20 percent in Ecuador; 

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1 (J) 76 percent in El Salvador; 

2 (K) 85 percent in Grenada; 

3 (L) 72 percent in Guatemala; 

4 (M) 100 percent in Guyana; 

5 (N) 93 percent in Haiti; 

6 (O) 81 percent in Honduras; 

7 (P) 91 percent in Jamaica; 

8 (Q) 10 percent in Mexico; 

9 (R) 98 percent in Nicaragua; 

10 (S) 100 percent in Panama; 

11 (T) 46 percent in Paraguay; 

12 (U) 39 percent in Peru; 

13 (V) 34 percent in Suriname; 

14 (W) 45 percent in Trinidad and Tobago; 

15 (X) 79 percent in Uruguay; and 

16 (Y) 0 percent in Venezuela. 

17 (7) Private sector partnership and investment 

18 in all sources of energy is critical to providing en19 ergy security in the Western Hemisphere. Several 

20 countries in the Western Hemisphere have acted to 

21 endanger the rule of law necessary for such invest22 ment. Other countries in the Western Hemisphere 

23 have been unable to make reforms necessary to cre24 ate sufficient investment climates for increased do25 mestic production of energy. 

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1 SEC. 3. DEFINITIONS. 

2 In this Act: 

3 (1) BIOFUEL.—The term ‘‘biofuel’’ means any 

4 liquid fuel that is derived from biomass. 

5 (2) BIOMASS.—The term ‘‘biomass’’ means any 

6 organic matter that is available on a renewable or 

7 recurring basis, including agricultural crops, trees, 

8 wood, wood wastes and residues, plants (including 

9 aquatic plants), grasses, residues, fibers, animal 

10 wastes, municipal wastes, and other waste materials. 

11 (3) PARTNER COUNTRY.—The term ‘‘partner 

12 country’’ means a country that has agreed to con13 duct a biofuels feasibility study under section 6. 

14 (4) REGIONAL DEVELOPMENT BANKS.—The 

15 term ‘‘regional development banks’’ means the Afri16 can Development Bank, the Inter-American Develop17 ment Bank, the Andean Development Corporation, 

18 the European Bank for Reconstruction and Develop19 ment, and the Asian Development Bank. 

20 SEC. 4. WESTERN HEMISPHERE ENERGY COOPERATION 

21 FORUM. 

22 (a) ESTABLISHMENT.—The Secretary of State, in co23 ordination with the Secretary of Energy, shall establish 

24 a regional-based ministerial forum to be known as the 

25 Western Hemisphere Energy Cooperation Forum (re26 ferred to in this subsection as the ‘‘Energy Forum’’). 

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1 (b) PURPOSES.—The Energy Forum should seek— 

2 (1) to strengthen relationships between the 

3 United States and other countries of the Western 

4 Hemisphere through cooperation on energy issues; 

5 (2) to enhance cooperation between major en6 ergy producers and major energy consumers in the 

7 Western Hemisphere, particularly among the Gov8 ernments of Brazil, Canada, Mexico, the United 

9 States, and Venezuela; 

10 (3) to explore possibilities to work with coun11 tries in the Western Hemisphere to promote renew12 able energy production (particularly in biofuels) and 

13 to lessen dependence on oil imports without reducing 

14 food availability (particularly in Mexico and Central 

15 American countries); 

16 (4) to ensure that energy contributes to the eco17 nomic, social, and environmental enhancement of the 

18 countries of the Western Hemisphere; 

19 (5) to provide an opportunity for open dialogue 

20 and joint commitments among Energy Forum coun21 tries and with private industry; and 

22 (6) to provide participating countries the flexi23 bility necessary to cooperatively address broad chal24 lenges posed to the energy supply of the Western 

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1 Hemisphere to find solutions that are politically ac2 ceptable and practical in policy terms. 

3 (c) ACTIVITIES.—The United States Government, in 

4 cooperation with Energy Forum countries, shall seek to 

5 implement— 

6 (1) an energy crisis initiative that will promote 

7 national and regional measures to respond to tem8 porary energy supply disruptions, including partici9 pating in a Western Hemisphere energy crisis re10 sponse mechanism in accordance with section 10(b); 

11 (2) an energy sustainability initiative to facili12 tate long-term supply security by fostering reliable 

13 supply sources of fuels, including— 

14 (A) developing, deploying, and commer15 cializing technologies for sustainable renewable 

16 fuels within the region; 

17 (B) promoting production and trade in 

18 sustainable energy, including energy from bio19 mass; 

20 (C) facilitating investment, trade, and 

21 technology cooperation in energy infrastructure, 

22 petroleum products, natural gas (including liq23 uefied natural gas), energy efficiency (including 

24 automotive efficiency), clean fossil energy, re25 newable energy, and carbon sequestration; 

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1 (D) promoting regional infrastructure and 

2 market integration; 

3 (E) developing effective and stable regu4 latory frameworks; 

5 (F) developing renewable fuels standards 

6 and renewable portfolio standards; 

7 (G) establishing educational training and 

8 exchange programs between Energy Forum 

9 countries; and 

10 (H) identifying and removing barriers to 

11 trade in technology, services, and commodities; 

12 and 

13 (3) an energy for development initiative to pro14 mote energy access for underdeveloped areas 

15 through energy policy and infrastructure develop16 ment, including— 

17 (A) increasing access to energy services for 

18 the poor; 

19 (B) improving energy sector market condi20 tions; 

21 (C) promoting rural development though 

22 biomass energy production and use; 

23 (D) increasing transparency of, and par24 ticipation in, energy infrastructure projects; 

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1 (E) promoting development and deploy2 ment of technology for clean and sustainable 

3 energy development, including biofuel and clean 

4 coal technologies; and 

5 (F) facilitating the use of carbon seques6 tration methods in agriculture and forestry and 

7 linking greenhouse gas emissions reduction pro8 grams to international carbon markets. 

9 (d) IMPLEMENTATION.—It is the sense of Congress 

10 that the Energy Forum— 

11 (1) should meet at least once every 2 years; 

12 (2) may meet on a subregional basis; and 

13 (3) shall be co-chaired by an official of the De14 partment of State and an official of the Department 

15 of Energy. 

16 (e) WESTERN HEMISPHERE ENERGY INDUSTRY

17 GROUP.— 

18 (1) AUTHORITY.—The Secretary of State, in 

19 coordination with the Secretary of Commerce and 

20 the Secretary of Energy, shall approach the govern21 ments of other countries in the Western Hemisphere 

22 to seek cooperation in establishing a Western Hemi23 sphere Energy Industry Group (referred to in this 

24 subsection as the ‘‘Energy Group’’). The Energy 

25 Group should be coordinated by the United States 

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1 Government and should include representatives from 

2 industries and governments in the Western Hemi3 sphere. 

4 (2) PURPOSE.—The purpose of the Energy 

5 Group should be to— 

6 (A) increase public-private partnerships; 

7 (B) foster private investment; and 

8 (C) enable countries in the Western Hemi9 sphere to devise energy agendas compatible 

10 with industry capacity and cognizant of indus11 try goals. 

12 (3) DISCUSSION TOPICS.—The Energy Group 

13 should discuss— 

14 (A) promoting a secure investment climate; 

15 (B) developing and deploying biofuels and 

16 other alternative fuels and clean electrical pro17 duction facilities, including clean coal and car18 bon sequestration; 

19 (C) developing and deploying energy effi20 cient technologies and practices in the indus21 trial, residential, and transportation sectors; 

22 (D) investing in oil and natural gas pro23 duction and distribution; 

24 (E) maintaining transparency of energy 

25 production and reserves data; 

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1 (F) promoting biofuels research; and 

2 (G) training and education exchange pro3 grams. 

4 (f) OIL AND GAS WORKING GROUP.— 

5 (1) ESTABLISHMENT.—The Secretary of En6 ergy, in cooperation with the Secretary of State, 

7 shall facilitate the establishment of the Oil and Gas 

8 Working Group. 

9 (2) PURPOSES.—The Oil and Gas Working 

10 Group should strengthen dialogue between inter11 national oil companies, national oil companies, and 

12 civil society groups on issues related to international 

13 standards on transparency, social responsibility, and 

14 best practices in leasing and management of oil and 

15 natural gas projects. 

16 (g) APPROPRIATION.—There are authorized to be ap17 propriated $3,000,000 to carry out this section. 

18 SEC. 5. UNITED STATES-BRAZIL BIOFUELS PARTNERSHIP. 

19 (a) IN GENERAL.—The Secretary of State, in coordi20 nation with the Secretary of Energy, shall work with the 

21 Government of Brazil to— 

22 (1) coordinate efforts to promote the production 

23 and use of biofuels among all interested countries, 

24 giving preference to the countries in the Western 

25 Hemisphere that are among the poorest and most 

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1 dependent on foreign sources of fuel (particularly 

2 oil), including— 

3 (A) coordinating the biofuels feasibility 

4 studies described in section 6; 

5 (B) collaborating on policy and regulatory 

6 measures to— 

7 (i) promote domestic biofuels produc8 tion and use, including related agricultural 

9 and environmental measures; 

10 (ii) reform automotive sectors to in11 corporate biofuels use including increased 

12 efficiency, reduced emissions, and integra13 tion with high-efficiency advanced tech14 nologies; and 

15 (iii) reform fueling infrastructure to 

16 allow for use of biofuels and other alter17 native fuels; 

18 (2) develop a global strategy to work with the 

19 European Union, China, India, South Africa, Japan, 

20 and other interested countries to create global 

21 biofuels markets and promote biofuels production 

22 and use in developing countries; 

23 (3) assess the feasibility of working with the 

24 World Bank and relevant regional development 

25 banks regarding— 

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1 (A) biofuels production capabilities; and 

2 (B) infrastructure, research, and training 

3 related to such capabilities; and 

4 (4) develop a joint and coordinated strategy re5 garding the construction and retrofitting of pipelines 

6 and terminals near major fuel distribution centers, 

7 coastal harbors, and railroads. 

8 (b) INTERNATIONAL AGRICULTURAL EXTENSION

9 PROGRAMS.—The Secretary of Agriculture shall work with 

10 the Government of Brazil to facilitate joint agricultural 

11 extension activities related to biofuels crop production, 

12 biofuels production, and environmental and greenhouse 

13 gas emissions reduction practices. 

14 (c) EDUCATIONAL GRANTS.—The Secretary of En15 ergy, in coordination with the Secretary of State, and in 

16 collaboration with the Government of Brazil, shall estab17 lish a grant program to finance advanced biofuels research 

18 and collaboration between academic and research institu19 tions in the United States and Brazil. 

20 (d) FUNDING SOURCES.— 

21 (1) AUTHORIZATION OF APPROPRIATIONS.— 

22 There are authorized to be appropriated for fiscal 

23 year 2008— 

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

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1 (B) $5,000,000 to carry out subsection 

2 (b); and 

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

4 (2) SUPPLEMENTAL FUNDING SOURCES.—The 

5 Secretary of State shall work with the Government 

6 of Brazil, the governments of partner countries, re7 gional development banks, the Organization of 

8 American States, and other interested parties to 

9 identify supplemental funding sources for the 

10 biofuels feasibility studies described in section 6. 

11 SEC. 6. BIOFUELS FEASIBILITY STUDIES. 

12 (a) IN GENERAL.—Each partner country shall par13 ticipate in a study to determine the feasibility of increas14 ing the production and use of biofuels in such country. 

15 (b) ANALYSIS OF THE ENERGY POLICY FRAME16 WORK.—The study conducted under subsection (a) shall 

17 analyze— 

18 (1) the energy policy of the partner country, 

19 particularly the impact of such policy on the pro20 motion of biofuels; and 

21 (2) the status and impacts of any existing 

22 biofuel programs of the country. 

23 (c) ASSESSMENT OF DEMAND.—The study conducted 

24 under subsection (a) shall assess, with respect to the part25 ner country— 

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1 (1) the quantitative and qualitative demand for 

2 energy by families, villages, industries, public trans3 portation infrastructure, and other energy con4 sumers; 

5 (2) the current and projected future energy 

6 consumption by the heat, electricity, and transpor7 tation sectors; 

8 (3) the demand for high-quality transportation 

9 fuel; 

10 (4) the local market prices for various energy 

11 sources; and 

12 (5) the employment, income generation, and 

13 rural development opportunities from biofuel indus14 try. 

15 (d) ASSESSMENT OF RESOURCES.—The study under 

16 subsection (a) shall— 

17 (1) assess the present and future biomass re18 sources that are available in each geographic region 

19 of the participating country to meet the demand as20 sessed under subsection (c); 

21 (2) include a plan for increasing the availability 

22 of existing biomass resources in the country; and 

23 (3) include a plan for developing new, sustain24 able biomass resources in the country, including 

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1 wood, manure, agricultural residues, sewage, and or2 ganic waste. 

3 (e) ANALYSIS OF AVAILABLE TECHNOLOGIES AND

4 SYSTEMS.—Building upon the results of the assessments 

5 described in subsections (c) and (d), the study shall— 

6 (1) analyze available technologies and systems 

7 for utilizing biofuels in the country, including— 

8 (A) technologies for the conversion of bio9 mass crops and agroforestry residues in pellets 

10 and briquettes; 

11 (B) low-pollution stoves; 

12 (C) biogas production; 

13 (D) charcoal and activated coal production; 

14 (E) biofuel production; 

15 (F) combustion and co-combustion tech16 nologies; 

17 (G) the availability of biofuels technologies 

18 in various geographic regions; and 

19 (H) the economic viability of biomass tech20 nologies; and 

21 (2) compare such technologies and systems to 

22 conventional energy supplies with respect to cost-ef23 fectiveness, maintenance, social acceptability, and 

24 the impact on development. 

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1 (f) ENVIRONMENTAL ASSESSMENT.—The study 

2 under subsection (a) shall assess— 

3 (1) the likely impacts of increased biomass har4 vesting and production, and biofuels production and 

5 use on environmental sustainability, including effects 

6 on carbon emissions; and 

7 (2) the availability of financing from global car8 bon credit trading mechanisms. 

9 (g) FOOD SECURITY ASSESSMENT.—The study under 

10 subsection (a) shall assess the likely impacts on food 

11 stocks and prices in partner countries. 

12 (h) DEVELOPMENT OF POLICY OPTIONS TO PRO13 MOTE BIOFUEL PRODUCTION AND USE.— 

14 (1) IN GENERAL.—The study under subsection 

15 (a) shall identify and evaluate policy options to pro16 mote biofuel production and use, after taking into 

17 account— 

18 (A) the existing energy policy of the coun19 try; and 

20 (B) the technologies available to convert 

21 local biomass resources into biofuels. 

22 (2) COORDINATION.—In conducting the evalua23 tion under paragraph (1), the participating country 

24 shall involve local, national, and international public 

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1 and private institutions with responsibility or exper2 tise in biofuel production and use. 

3 (3) PRINCIPAL ISSUES.—The study shall ad4 dress— 

5 (A) potential biomass in the country and 

6 barriers for the production of biofuels from 

7 such biomass products; 

8 (B) strategies for creating a market for 

9 biomass products in the country; 

10 (C) the potential contribution of biofuels in 

11 the country; 

12 (D) environmental sustainability issues and 

13 the mitigating effect of increased biofuel pro14 duction and use on carbon emissions; 

15 (E) the potential contribution of biofuels to 

16 economic development, poverty reduction, and 

17 sustainability of energy resources; 

18 (F) programs for the use of biofuels in the 

19 transportation sector; 

20 (G) economic cooperation across inter21 national borders to increase biofuel production 

22 and use; 

23 (H) technology collaboration and joint ven24 tures and technological, cultural, and legal barmmaher on PROD1PC60 with BILLS

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1 riers that may impede such technological co2 operation; and 

3 (I) the economic aspects of the promotion 

4 of biofuels, including job creation, financing and 

5 loan mechanisms, credit mobilization, invest6 ment capital, and market penetration. 

7 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated $20,000,000 for fiscal 

9 year 2008 to carry out this section. 

10 SEC. 7. UNITED STATES-BRAZIL BILATERAL TAX TREATY. 

11 The Secretary of State, in coordination with the Sec12 retary of the Treasury, shall renew negotiations on a bilat13 eral tax treaty with Brazil. 

14 SEC. 8. MULTILATERAL DEVELOPMENT BANKS. 

15 The Secretary of the Treasury shall inform the man16 agements of the international financial institutions and 

17 the public that it is the policy of the United States that 

18 assistance by such institutions should encourage develop19 ment of renewable energy sources, including energy de20 rived from biomass. 

21 SEC. 9. CARBON CREDIT TRADING MECHANISMS. 

22 (a) IN GENERAL.—The Secretary of State shall work 

23 with interested governments in the Western Hemisphere 

24 and other countries to organize regional and hemispheric 

25 carbon trading mechanisms under the United Nations 

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1 Framework Convention on Climate Change and existing 

2 trade and financial agreements to— 

3 (1) establish special carbon credits for the pres4 ervation of tropical rain forests; 

5 (2) use greenhouse gas-reducing farming prac6 tices; 

7 (3) jointly fund greenhouse gas sequestration 

8 studies and experiments in various geological forma9 tions; and 

10 (4) jointly fund climate mitigation studies in 

11 vulnerable areas in the Western Hemisphere. 

12 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated $5,000,000 for fiscal 

14 year 2008 to carry out this section. 

15 SEC. 10. ENERGY CRISIS RESPONSE MECHANISM. 

16 (a) FINDINGS.—Congress makes the following find17 ings: 

18 (1) Cooperation between the United States Gov19 ernment and governments of other countries during 

20 energy crises promotes the national security of the 

21 United States and of the cooperating countries. 

22 (2) Credible contingency plans to respond to en23 ergy shortages may serve as deterrents to the ma24 nipulation of energy supplies by export and transit 

25 countries. 

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1 (3) The vulnerability of most countries in the 

2 Western Hemisphere to supply disruptions from po3 litical, natural, or terrorism causes may introduce 

4 instability in the Western Hemisphere and can be a 

5 source of conflict, despite the existence of major en6 ergy resources in the Western Hemisphere. The 

7 United States and Canada are the only members of 

8 the International Energy Program in the Western 

9 Hemisphere. 

10 (4) Integrating countries in the Western Hemi11 sphere into regional and international agreements 

12 for the management of energy emergencies will ben13 efit market stability and encourage development in 

14 participating countries. 

15 (b) ESTABLISHMENT OF AN ENERGY CRISIS RE16 SPONSE MECHANISM FOR THE WESTERN HEMI17 SPHERE.— 

18 (1) AUTHORITY.—The Secretary of State, in 

19 coordination with the Secretary of Energy and the 

20 Secretary of Defense, shall immediately seek to es21 tablish a Western Hemisphere energy crisis response 

22 mechanism. 

23 (2) SCOPE.—The mechanism established under 

24 paragraph (1) should include— 

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1 (A) a real-time information sharing and 

2 coordinating mechanism to respond to energy 

3 supply emergencies; 

4 (B) technical assistance in the development 

5 and management of national and regional stra6 tegic reserves within the Western Hemisphere; 

7 (C) technical assistance in developing na8 tional programs to meet the requirements of 

9 membership in the international energy applica10 tion procedure described in subsection (c); 

11 (D) emergency demand restraint measures; 

12 (E) energy switching preparedness and al13 ternative energy production capacity; 

14 (F) ongoing demand intensity reduction 

15 programs; and 

16 (G) measures to strengthen sea lane and 

17 infrastructure security. 

18 (3) MEMBERSHIP.—The Secretary shall seek to 

19 include in the Western Hemisphere energy crisis re20 sponse mechanism membership for each major en21 ergy producer and major energy consumer in the 

22 Western Hemisphere and other members of the 

23 Western Hemisphere Energy Cooperation Forum es24 tablished pursuant to section 4(a). 

25 (4) STUDIES.— 

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1 (A) SUPPLY VULNERABILITY STUDY.—The 

2 Secretary of Energy shall— 

3 (i) conduct a study of supply 

4 vulnerabilities for natural gas in the West5 ern Hemisphere; and 

6 (ii) submit a report to Congress that 

7 includes recommendations for infrastruc8 ture and regulatory needs for reducing 

9 supply disruption vulnerability and inter10 national coordination. 

11 (B) COORDINATION MECHANISM ASSESS12 MENT.—The Secretary of Energy shall assess 

13 the feasibility of developing coordination mecha14 nisms to ensure a consistent supply of biofuels, 

15 especially in the event of an interruption of the 

16 oil supply. 

17 (c) INTERNATIONAL ENERGY PROGRAM APPLICA18 TION PROCEDURE.— 

19 (1) AUTHORITY.—The President should place 

20 on the agenda for discussion at the Governing Board 

21 of the International Energy Agency, as soon as prac22 ticable, the merits of establishing an international 

23 energy program application procedure. 

24 (2) PURPOSE.—The purpose of the procedure 

25 described in paragraph (1) is to allow countries that 

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1 are not members of the International Energy Pro2 gram to apply to the Governing Board of the Inter3 national Energy Agency for allocation of petroleum 

4 reserve stocks in times of emergency on a grant or 

5 loan basis. Such countries should also receive tech6 nical assistance for, and be subject to, conditions re7 quiring development and management of national 

8 programs for energy emergency preparedness, in9 cluding demand restraint, fuel switching prepared10 ness, and development of alternative fuels production 

11 capacity. 

12 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated $5,000,000 for fiscal 

14 year 2008 to carry out this section. 

15 SEC. 11. ENERGY FOREIGN ASSISTANCE. 

16 (a) IN GENERAL.—The Administrator of the United 

17 States Agency for International Development (referred to 

18 in this section as the ‘‘Administrator’’) shall seek to in19 crease United States foreign assistance programming in 

20 renewable energy, including in activities to reduce energy 

21 import dependence through the use of biofuels. 

22 (b) DEVELOPMENT STRATEGY REVIEW.—The Ad23 ministrator shall review country assistance strategies to 

24 increase assistance for renewable energy activities. Results 

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1 of this review shall be reported to Congress no later than 

2 180 days following passage of this act. 

3 (c) EXPEDITED SUSTAINABLE ENERGY GRANTS.— 

4 (1) AUTHORIZATION.—The Administrator is 

5 authorized to award grants to nongovernmental or6 ganizations for sustainable energy and job creation 

7 projects in at-risk nations, such as Haiti. Grant 

8 funds shall be provided to grantees on an expedited 

9 basis upon approval of the eligible project. 

10 (2) AUTHORIZATION OF APPROPRIATIONS.— 

11 There are authorized to be appropriated $5,000,000 

12 to the United States Agency for International Devel13 opment for grants under this subsection. 

14 SEC. 12. ENERGY PUBLIC DIPLOMACY. 

15 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated $5,000,000 to the De17 partment of State for public education activities on renew18 able energy in the Western Hemisphere. 

19 (b) LIMITATION.—Not less than 50 percent of any 

20 amount appropriated pursuant to paragraph (1) shall be 

21 used for education activities implemented through civil so22 ciety organizations. 

23 SEC. 13. ENERGY TRADE. 

24 (a) FINDINGS.—Congress makes the following find25 ings: 

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1 (1) It is the policy of the United States to pro2 mote free trade in energy among countries in the 

3 Western Hemisphere, which would— 

4 (A) help support a growing energy indus5 try; 

6 (B) create jobs that benefit development 

7 and alleviate poverty; 

8 (C) increase energy security through sup9 ply diversification; and 

10 (D) strengthen relations among countries 

11 in the Western Hemisphere through closer co12 operation and understanding. 

13 (2) Several countries in the Western Hemi14 sphere, including the United States, have protective 

15 tariffs and duties that limit the benefits that would 

16 accrue from free trade in energy. The United States 

17 Government should work with foreign governments 

18 to remove trade barriers in energy. 

19 (3) The United States should implement a plan 

20 to open its markets to trade in biofuels. This plan 

21 should— 

22 (A) encourage expanded investment and 

23 innovation in the biofuels industry in the 

24 United States; and 

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1 (B) revise Federal incentives for the do2 mestic production of biofuels so they do not fi3 nance biofuels investment abroad. 

4 (b) ETHANOL TARIFF STUDY.—The Secretary of 

5 Commerce, in cooperation with the Secretary of State, 

6 shall conduct a study that evaluates— 

7 (1) tariffs, duties, and other restrictions on 

8 trade in biofuels in the Western Hemisphere, includ9 ing the United States; 

10 (2) the economic impacts resulting from the re11 strictions referred to in paragraph (1); 

12 (3) the impacts on United States foreign policy 

13 resulting from the restrictions referred to in para14 graph (1); 

15 (4) the effect of restrictions referred to in para16 graph (1) on United States obligations to the World 

17 Trade Organization; 

18 (5) the probable impacts on the economy and 

19 biofuels industry of the United States of— 

20 (A) removing all duties and tariffs on 

21 biofuels imports, beginning on January 1, 2009; 

22 (B) removing all duties and tariffs on 

23 biofuels imports and making various revisions 

24 to the tax credits for ethanol production in the 

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1 it to be a producers credit and replacement of 

2 the current credit with a variable credit scheme; 

3 (C) removing all duties and tariffs and in4 creasing the renewable fuels standard mandate 

5 to 30,000,000,000 gallons by 2020 and 

6 60,000,000,000 gallons by 2030, including ex7 tending the renewable fuels standard, with revi8 sions favoring the use of next generation 

9 biofuels and domestic production; and 

10 (D) gradually removing the duties and tar11 iffs over a 5- and 10-year period; and 

12 (6) the probable impacts of removing United 

13 States tariffs and duties under the conditions de14 scribed in paragraph (5) on biofuels production, eco15 nomic development, and poverty alleviation in coun16 tries in the Western Hemisphere. 

17 (c) ETHANOL QUOTAS.—The Secretary of Commerce 

18 shall conduct a study examining the likely impacts and 

19 feasibility of— 

20 (1) introducing a new, duty-free quota for 

21 biofuels that is imported from countries receiving 

22 normal trade relations treatment from the United 

23 States that is equal to 15 percent of the biofuels 

24 consumed annually in the United States; 

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1 (2) increasing the quota in ethanol imports to 

2 the United States from 7 percent to 15 percent over 

3 the next several years and expanding the scope of 

4 the quota beyond countries participating in the Car5 ibbean Basin Initiative to other least developed 

6 countries and to all countries who have received a 

7 Millennium Challenge grant; and 

8 (3) creating a separate quota for any other 

9 country receiving normal trade relations treatment 

10 from the United States. 

11 SEC. 14. WESTERN HEMISPHERE HYDROCARBON PRODUC12 TION. 

13 (a) STUDY PARTNERSHIP WITH MEXICO.—The Sec14 retary of Energy shall seek to work with the Government 

15 of Mexico to conduct a technical analysis of the status of 

16 Mexican oil and gas production, future technological and 

17 investment needs, and recommendations for maintaining 

18 and increasing hydrocarbon production consistent with the 

19 priorities of the Government of Mexico. 

20 (b) NATURAL GAS STUDY.— 

21 (1) STUDY.—The Secretary of Commerce, in 

22 consultation with the Secretary of Energy, shall con23 duct a study of— 

24 (A) the current state of natural gas pro25 duction in the Western Hemisphere; and 

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1 (B) future natural gas demand and supply 

2 projections. 

3 (2) REPORT.—The Secretary of Commerce shall 

4 submit a report to Congress that contains rec5 ommendations for the integration of the natural gas 

6 sector, including developing a liquefied natural gas 

7 infrastructure. 

8 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated $1,000,000 for fiscal 

10 year 2008 to carry out this section. 

11 SEC. 15. REPORT. 

12 The Secretary of State, in consultation with the Sec13 retary of Energy, shall submit an annual report to Con14 gress on the activities carried out to implement this Act. 

Æ 

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