II 

Calendar No. 1044 

110TH CONGRESS 

2D 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 

SEPTEMBER 23 (legislative day, SEPTEMBER 17), 2008 

Reported by Mr. DODD, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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. 


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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; TABLE OF CONTENTS. 

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

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

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

7 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. 

8 SEC. 2. FINDINGS. 

9 Congress makes the following findings: 

10 (1) The engagement of the United States Gov11 ernment with the Government of Brazil and the gov12 ernments of willing countries in the Western Hemi13 sphere and throughout the world is a strategic pri14 ority for reducing the potential for tension over en15 ergy resources, maintaining and expanding reliable 

16 energy supplies, expanding use of renewable energy, 

17 and reducing the detrimental effects of energy im18 port dependence. Current energy dialogues and 


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1 agreements should be expanded and refocused, as 

2 needed, to meet this challenge. 

3 (2) Countries in the Western Hemisphere can 

4 most effectively meet their common needs for energy 

5 security and sustainability through partnership and 

6 cooperation. Cooperation between governments on 

7 energy issues will enhance bilateral and regional re8 lationships among countries in the Western Hemi9 sphere. The Western Hemisphere is rich in natural 

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

11 coal, and has significant opportunities for the pro12 duction of renewable energy, including hydro, solar, 

13 and wind. Countries in the Western Hemisphere can 

14 provide convenient and reliable markets for their 

15 own energy needs and for foreign trade in energy 

16 goods and services. 

17 (3) Development of sustainable energy alter18 natives in countries in the Western Hemisphere can 

19 improve energy security, balance of trade, and envi20 ronmental quality, and can provide markets for en21 ergy technology and agricultural products. 

22 (4) The Government of the United States has 

23 actively worked with the Government of Brazil to de24 velop a strong biofuels partnership and to increase 

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


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1 2007, the Memorandum of Understanding Between 

2 the United States and Brazil to Advance Coopera3 tion on Biofuels, was signed in S ̃ao Paulo, Brazil. 

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

5 world in the production of ethanol. Deeper coopera6 tion on biofuels with other countries of the hemi7 sphere would extend economic, security, and political 

8 benefits. 

9 (6) The United States is committed to devel10 oping a biofuels partnership with the Government of 

11 Brazil that benefits the welfare of the people of the 

12 Western Hemisphere. According to the Latin Amer13 ican Energy Organization, the percentage of total 

14 energy consumption in each of the following coun15 tries in the Western Hemisphere that originated 

16 from imported crude oil and oil products in 2005 

17 was— 

18 (A) 2 percent in Argentina; 

19 (B) 93 percent in Barbados; 

20 (C) 7 percent in Bolivia; 

21 (D) 13 percent in Brazil; 

22 (E) 55 percent in Chile; 

23 (F) 4 percent in Colombia; 

24 (G) 56 percent in Costa Rica; 

25 (H) 77 percent in the Dominican Republic; 


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1 (I) 20 percent in Ecuador; 

2 (J) 76 percent in El Salvador; 

3 (K) 85 percent in Grenada; 

4 (L) 72 percent in Guatemala; 

5 (M) 100 percent in Guyana; 

6 (N) 93 percent in Haiti; 

7 (O) 81 percent in Honduras; 

8 (P) 91 percent in Jamaica; 

9 (Q) 10 percent in Mexico; 

10 (R) 98 percent in Nicaragua; 

11 (S) 100 percent in Panama; 

12 (T) 46 percent in Paraguay; 

13 (U) 39 percent in Peru; 

14 (V) 34 percent in Suriname; 

15 (W) 45 percent in Trinidad and Tobago; 

16 (X) 79 percent in Uruguay; and 

17 (Y) 0 percent in Venezuela. 

18 (7) Private sector partnership and investment 

19 in all sources of energy is critical to providing en20 ergy security in the Western Hemisphere. Several 

21 countries in the Western Hemisphere have acted to 

22 endanger the rule of law necessary for such invest23 ment. Other countries in the Western Hemisphere 

24 have been unable to make reforms necessary to creVerDate Aug 31 2005 02:16 Sep 24, 2008 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1007.RS S1007

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1 ate sufficient investment climates for increased do2 mestic production of energy. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

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

6 liquid fuel that is derived from biomass. 

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

8 organic matter that is available on a renewable or 

9 recurring basis, including agricultural crops, trees, 

10 wood, wood wastes and residues, plants (including 

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

12 wastes, municipal wastes, and other waste materials. 

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

14 country’’ means a country that has agreed to con15 duct a biofuels feasibility study under section 6. 

16 (4) REGIONAL DEVELOPMENT BANKS.—The 

17 term ‘‘regional development banks’’ means the Afri18 can Development Bank, the Inter-American Develop19 ment Bank, the Andean Development Corporation, 

20 the European Bank for Reconstruction and Develop21 ment, and the Asian Development Bank. 

22 SEC. 4. WESTERN HEMISPHERE ENERGY COOPERATION 

23 FORUM. 

24 (a) ESTABLISHMENT.—The Secretary of State, in co25 ordination with the Secretary of Energy, shall establish 


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

2 Western Hemisphere Energy Cooperation Forum (re3 ferred to in this subsection as the ‘‘Energy Forum’’). 

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

5 (1) to strengthen relationships between the 

6 United States and other countries of the Western 

7 Hemisphere through cooperation on energy issues; 

8 (2) to enhance cooperation between major en9 ergy producers and major energy consumers in the 

10 Western Hemisphere, particularly among the Gov11 ernments of Brazil, Canada, Mexico, the United 

12 States, and Venezuela; 

13 (3) to explore possibilities to work with coun14 tries in the Western Hemisphere to promote renew15 able energy production (particularly in biofuels) and 

16 to lessen dependence on oil imports without reducing 

17 food availability (particularly in Mexico and Central 

18 American countries); 

19 (4) to ensure that energy contributes to the eco20 nomic, social, and environmental enhancement of the 

21 countries of the Western Hemisphere; 

22 (5) to provide an opportunity for open dialogue 

23 and joint commitments among Energy Forum coun24 tries and with private industry; and 


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1 (6) to provide participating countries the flexi2 bility necessary to cooperatively address broad chal3 lenges posed to the energy supply of the Western 

4 Hemisphere to find solutions that are politically ac5 ceptable and practical in policy terms. 

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

7 cooperation with Energy Forum countries, shall seek to 

8 implement— 

9 (1) an energy crisis initiative that will promote 

10 national and regional measures to respond to tem11 porary energy supply disruptions, including partici12 pating in a Western Hemisphere energy crisis re13 sponse mechanism in accordance with section 10(b); 

14 (2) an energy sustainability initiative to facili15 tate long-term supply security by fostering reliable 

16 supply sources of fuels, including— 

17 (A) developing, deploying, and commer18 cializing technologies for sustainable renewable 

19 fuels within the region; 

20 (B) promoting production and trade in 

21 sustainable energy, including energy from bio22 mass; 

23 (C) facilitating investment, trade, and 

24 technology cooperation in energy infrastructure, 

25 petroleum products, natural gas (including liqVerDate Aug 31 2005 02:16 Sep 24, 2008 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S1007.RS S1007

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1 uefied natural gas), energy efficiency (including 

2 automotive efficiency), clean fossil energy, re3 newable energy, and carbon sequestration; 

4 (D) promoting regional infrastructure and 

5 market integration; 

6 (E) developing effective and stable regu7 latory frameworks; 

8 (F) developing renewable fuels standards 

9 and renewable portfolio standards; 

10 (G) establishing educational training and 

11 exchange programs between Energy Forum 

12 countries; and 

13 (H) identifying and removing barriers to 

14 trade in technology, services, and commodities; 

15 and 

16 (3) an energy for development initiative to pro17 mote energy access for underdeveloped areas 

18 through energy policy and infrastructure develop19 ment, including— 

20 (A) increasing access to energy services for 

21 the poor; 

22 (B) improving energy sector market condi23 tions; 

24 (C) promoting rural development though 

25 biomass energy production and use; 


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1 (D) increasing transparency of, and par2 ticipation in, energy infrastructure projects; 

3 (E) promoting development and deploy4 ment of technology for clean and sustainable 

5 energy development, including biofuel and clean 

6 coal technologies; and 

7 (F) facilitating the use of carbon seques8 tration methods in agriculture and forestry and 

9 linking greenhouse gas emissions reduction pro10 grams to international carbon markets. 

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

12 that the Energy Forum— 

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

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

15 (3) shall be co-chaired by an official of the De16 partment of State and an official of the Department 

17 of Energy. 

18 (e) WESTERN HEMISPHERE ENERGY INDUSTRY

19 GROUP.— 

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

21 coordination with the Secretary of Commerce and 

22 the Secretary of Energy, shall approach the govern23 ments of other countries in the Western Hemisphere 

24 to seek cooperation in establishing a Western Hemi25 sphere Energy Industry Group (referred to in this 


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

2 Group should be coordinated by the United States 

3 Government and should include representatives from 

4 industries and governments in the Western Hemi5 sphere. 

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

7 Group should be to— 

8 (A) increase public-private partnerships; 

9 (B) foster private investment; and 

10 (C) enable countries in the Western Hemi11 sphere to devise energy agendas compatible 

12 with industry capacity and cognizant of indus13 try goals. 

14 (3) DISCUSSION TOPICS.—The Energy Group 

15 should discuss— 

16 (A) promoting a secure investment climate; 

17 (B) developing and deploying biofuels and 

18 other alternative fuels and clean electrical pro19 duction facilities, including clean coal and car20 bon sequestration; 

21 (C) developing and deploying energy effi22 cient technologies and practices in the indus23 trial, residential, and transportation sectors; 

24 (D) investing in oil and natural gas pro25 duction and distribution; 


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1 (E) maintaining transparency of energy 

2 production and reserves data; 

3 (F) promoting biofuels research; and 

4 (G) training and education exchange pro5 grams. 

6 (f) OIL AND GAS WORKING GROUP.— 

7 (1) ESTABLISHMENT.—The Secretary of En8 ergy, in cooperation with the Secretary of State, 

9 shall facilitate the establishment of the Oil and Gas 

10 Working Group. 

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

12 Group should strengthen dialogue between inter13 national oil companies, national oil companies, and 

14 civil society groups on issues related to international 

15 standards on transparency, social responsibility, and 

16 best practices in leasing and management of oil and 

17 natural gas projects. 

18 (g) APPROPRIATION.—There are authorized to be ap19 propriated $3,000,000 to carry out this section. 

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

21 (a) IN GENERAL.—The Secretary of State, in coordi22 nation with the Secretary of Energy, shall work with the 

23 Government of Brazil to— 

24 (1) coordinate efforts to promote the production 

25 and use of biofuels among all interested countries, 


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1 giving preference to the countries in the Western 

2 Hemisphere that are among the poorest and most 

3 dependent on foreign sources of fuel (particularly 

4 oil), including— 

5 (A) coordinating the biofuels feasibility 

6 studies described in section 6; 

7 (B) collaborating on policy and regulatory 

8 measures to— 

9 (i) promote domestic biofuels produc10 tion and use, including related agricultural 

11 and environmental measures; 

12 (ii) reform automotive sectors to in13 corporate biofuels use including increased 

14 efficiency, reduced emissions, and integra15 tion with high-efficiency advanced tech16 nologies; and 

17 (iii) reform fueling infrastructure to 

18 allow for use of biofuels and other alter19 native fuels; 

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

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

22 and other interested countries to create global 

23 biofuels markets and promote biofuels production 

24 and use in developing countries; 


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1 (3) assess the feasibility of working with the 

2 World Bank and relevant regional development 

3 banks regarding— 

4 (A) biofuels production capabilities; and 

5 (B) infrastructure, research, and training 

6 related to such capabilities; and 

7 (4) develop a joint and coordinated strategy re8 garding the construction and retrofitting of pipelines 

9 and terminals near major fuel distribution centers, 

10 coastal harbors, and railroads. 

11 (b) INTERNATIONAL AGRICULTURAL EXTENSION

12 PROGRAMS.—The Secretary of Agriculture shall work with 

13 the Government of Brazil to facilitate joint agricultural 

14 extension activities related to biofuels crop production, 

15 biofuels production, and environmental and greenhouse 

16 gas emissions reduction practices. 

17 (c) EDUCATIONAL GRANTS.—The Secretary of En18 ergy, in coordination with the Secretary of State, and in 

19 collaboration with the Government of Brazil, shall estab20 lish a grant program to finance advanced biofuels research 

21 and collaboration between academic and research institu22 tions in the United States and Brazil. 

23 (d) FUNDING SOURCES.— 


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1 (1) AUTHORIZATION OF APPROPRIATIONS.— 

2 There are authorized to be appropriated for fiscal 

3 year 2008— 

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

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

6 (b); and 

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

8 (2) SUPPLEMENTAL FUNDING SOURCES.—The 

9 Secretary of State shall work with the Government 

10 of Brazil, the governments of partner countries, re11 gional development banks, the Organization of 

12 American States, and other interested parties to 

13 identify supplemental funding sources for the 

14 biofuels feasibility studies described in section 6. 

15 SEC. 6. BIOFUELS FEASIBILITY STUDIES. 

16 (a) IN GENERAL.—Each partner country shall par17 ticipate in a study to determine the feasibility of increas18 ing the production and use of biofuels in such country. 

19 (b) ANALYSIS OF THE ENERGY POLICY FRAME20 WORK.—The study conducted under subsection (a) shall 

21 analyze— 

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

23 particularly the impact of such policy on the pro24 motion of biofuels; and 


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1 (2) the status and impacts of any existing 

2 biofuel programs of the country. 

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

4 under subsection (a) shall assess, with respect to the part5 ner country— 

6 (1) the quantitative and qualitative demand for 

7 energy by families, villages, industries, public trans8 portation infrastructure, and other energy con9 sumers; 

10 (2) the current and projected future energy 

11 consumption by the heat, electricity, and transpor12 tation sectors; 

13 (3) the demand for high-quality transportation 

14 fuel; 

15 (4) the local market prices for various energy 

16 sources; and 

17 (5) the employment, income generation, and 

18 rural development opportunities from biofuel indus19 try. 

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

21 subsection (a) shall— 

22 (1) assess the present and future biomass re23 sources that are available in each geographic region 

24 of the participating country to meet the demand as25 sessed under subsection (c); 


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1 (2) include a plan for increasing the availability 

2 of existing biomass resources in the country; and 

3 (3) include a plan for developing new, sustain4 able biomass resources in the country, including 

5 wood, manure, agricultural residues, sewage, and or6 ganic waste. 

7 (e) ANALYSIS OF AVAILABLE TECHNOLOGIES AND

8 SYSTEMS.—Building upon the results of the assessments 

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

10 (1) analyze available technologies and systems 

11 for utilizing biofuels in the country, including— 

12 (A) technologies for the conversion of bio13 mass crops and agroforestry residues in pellets 

14 and briquettes; 

15 (B) low-pollution stoves; 

16 (C) biogas production; 

17 (D) charcoal and activated coal production; 

18 (E) biofuel production; 

19 (F) combustion and co-combustion tech20 nologies; 

21 (G) the availability of biofuels technologies 

22 in various geographic regions; and 

23 (H) the economic viability of biomass tech24 nologies; and 


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1 (2) compare such technologies and systems to 

2 conventional energy supplies with respect to cost-ef3 fectiveness, maintenance, social acceptability, and 

4 the impact on development. 

5 (f) ENVIRONMENTAL ASSESSMENT.—The study 

6 under subsection (a) shall assess— 

7 (1) the likely impacts of increased biomass har8 vesting and production, and biofuels production and 

9 use on environmental sustainability, including effects 

10 on carbon emissions; and 

11 (2) the availability of financing from global car12 bon credit trading mechanisms. 

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

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

15 stocks and prices in partner countries. 

16 (h) DEVELOPMENT OF POLICY OPTIONS TO PRO17 MOTE BIOFUEL PRODUCTION AND USE.— 

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

19 (a) shall identify and evaluate policy options to pro20 mote biofuel production and use, after taking into 

21 account— 

22 (A) the existing energy policy of the coun23 try; and 

24 (B) the technologies available to convert 

25 local biomass resources into biofuels. 


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1 (2) COORDINATION.—In conducting the evalua2 tion under paragraph (1), the participating country 

3 shall involve local, national, and international public 

4 and private institutions with responsibility or exper5 tise in biofuel production and use. 

6 (3) PRINCIPAL ISSUES.—The study shall ad7 dress— 

8 (A) potential biomass in the country and 

9 barriers for the production of biofuels from 

10 such biomass products; 

11 (B) strategies for creating a market for 

12 biomass products in the country; 

13 (C) the potential contribution of biofuels in 

14 the country; 

15 (D) environmental sustainability issues and 

16 the mitigating effect of increased biofuel pro17 duction and use on carbon emissions; 

18 (E) the potential contribution of biofuels to 

19 economic development, poverty reduction, and 

20 sustainability of energy resources; 

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

22 transportation sector; 

23 (G) economic cooperation across inter24 national borders to increase biofuel production 

25 and use; 


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1 (H) technology collaboration and joint ven2 tures and technological, cultural, and legal bar3 riers that may impede such technological co4 operation; and 

5 (I) the economic aspects of the promotion 

6 of biofuels, including job creation, financing and 

7 loan mechanisms, credit mobilization, invest8 ment capital, and market penetration. 

9 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

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

11 year 2008 to carry out this section. 

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

13 The Secretary of State, in coordination with the Sec14 retary of the Treasury, shall renew negotiations on a bilat15 eral tax treaty with Brazil. 

16 SEC. 8. MULTILATERAL DEVELOPMENT BANKS. 

17 The Secretary of the Treasury shall inform the man18 agements of the international financial institutions and 

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

20 assistance by such institutions should encourage develop21 ment of renewable energy sources, including energy de22 rived from biomass. 

23 SEC. 9. CARBON CREDIT TRADING MECHANISMS. 

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

25 with interested governments in the Western Hemisphere 


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1 and other countries to organize regional and hemispheric 

2 carbon trading mechanisms under the United Nations 

3 Framework Convention on Climate Change and existing 

4 trade and financial agreements to— 

5 (1) establish special carbon credits for the pres6 ervation of tropical rain forests; 

7 (2) use greenhouse gas-reducing farming prac8 tices; 

9 (3) jointly fund greenhouse gas sequestration 

10 studies and experiments in various geological forma11 tions; and 

12 (4) jointly fund climate mitigation studies in 

13 vulnerable areas in the Western Hemisphere. 

14 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

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

16 year 2008 to carry out this section. 

17 SEC. 10. ENERGY CRISIS RESPONSE MECHANISM. 

18 (a) FINDINGS.—Congress makes the following find19 ings: 

20 (1) Cooperation between the United States Gov21 ernment and governments of other countries during 

22 energy crises promotes the national security of the 

23 United States and of the cooperating countries. 

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1 nipulation of energy supplies by export and transit 

2 countries. 

3 (3) The vulnerability of most countries in the 

4 Western Hemisphere to supply disruptions from po5 litical, natural, or terrorism causes may introduce 

6 instability in the Western Hemisphere and can be a 

7 source of conflict, despite the existence of major en8 ergy resources in the Western Hemisphere. The 

9 United States and Canada are the only members of 

10 the International Energy Program in the Western 

11 Hemisphere. 

12 (4) Integrating countries in the Western Hemi13 sphere into regional and international agreements 

14 for the management of energy emergencies will ben15 efit market stability and encourage development in 

16 participating countries. 

17 (b) ESTABLISHMENT OF AN ENERGY CRISIS RE18 SPONSE MECHANISM FOR THE WESTERN HEMI19 SPHERE.— 

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

21 coordination with the Secretary of Energy and the 

22 Secretary of Defense, shall immediately seek to es23 tablish a Western Hemisphere energy crisis response 

24 mechanism. 


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1 (2) SCOPE.—The mechanism established under 

2 paragraph (1) should include— 

3 (A) a real-time information sharing and 

4 coordinating mechanism to respond to energy 

5 supply emergencies; 

6 (B) technical assistance in the development 

7 and management of national and regional stra8 tegic reserves within the Western Hemisphere; 

9 (C) technical assistance in developing na10 tional programs to meet the requirements of 

11 membership in the international energy applica12 tion procedure described in subsection (c); 

13 (D) emergency demand restraint measures; 

14 (E) energy switching preparedness and al15 ternative energy production capacity; 

16 (F) ongoing demand intensity reduction 

17 programs; and 

18 (G) measures to strengthen sea lane and 

19 infrastructure security. 

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

21 include in the Western Hemisphere energy crisis re22 sponse mechanism membership for each major en23 ergy producer and major energy consumer in the 

24 Western Hemisphere and other members of the 


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1 Western Hemisphere Energy Cooperation Forum es2 tablished pursuant to section 4(a). 

3 (4) STUDIES.— 

4 (A) SUPPLY VULNERABILITY STUDY.—The 

5 Secretary of Energy shall— 

6 (i) conduct a study of supply 

7 vulnerabilities for natural gas in the West8 ern Hemisphere; and 

9 (ii) submit a report to Congress that 

10 includes recommendations for infrastruc11 ture and regulatory needs for reducing 

12 supply disruption vulnerability and inter13 national coordination. 

14 (B) COORDINATION MECHANISM ASSESS15 MENT.—The Secretary of Energy shall assess 

16 the feasibility of developing coordination mecha17 nisms to ensure a consistent supply of biofuels, 

18 especially in the event of an interruption of the 

19 oil supply. 

20 (c) INTERNATIONAL ENERGY PROGRAM APPLICA21 TION PROCEDURE.— 

22 (1) AUTHORITY.—The President should place 

23 on the agenda for discussion at the Governing Board 

24 of the International Energy Agency, as soon as pracVerDate Aug 31 2005 02:16 Sep 24, 2008 Jkt 069200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6401 E:\BILLS\S1007.RS S1007

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1 ticable, the merits of establishing an international 

2 energy program application procedure. 

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

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

5 are not members of the International Energy Pro6 gram to apply to the Governing Board of the Inter7 national Energy Agency for allocation of petroleum 

8 reserve stocks in times of emergency on a grant or 

9 loan basis. Such countries should also receive tech10 nical assistance for, and be subject to, conditions re11 quiring development and management of national 

12 programs for energy emergency preparedness, in13 cluding demand restraint, fuel switching prepared14 ness, and development of alternative fuels production 

15 capacity. 

16 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

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

18 year 2008 to carry out this section. 

19 SEC. 11. ENERGY FOREIGN ASSISTANCE. 

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

21 States Agency for International Development (referred to 

22 in this section as the ‘‘Administrator’’) shall seek to in23 crease United States foreign assistance programming in 

24 renewable energy, including in activities to reduce energy 

25 import dependence through the use of biofuels. 


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1 (b) DEVELOPMENT STRATEGY REVIEW.—The Ad2 ministrator shall review country assistance strategies to 

3 increase assistance for renewable energy activities. Results 

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

5 180 days following passage of this act. 

6 (c) EXPEDITED SUSTAINABLE ENERGY GRANTS.— 

7 (1) AUTHORIZATION.—The Administrator is 

8 authorized to award grants to nongovernmental or9 ganizations for sustainable energy and job creation 

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

11 funds shall be provided to grantees on an expedited 

12 basis upon approval of the eligible project. 

13 (2) AUTHORIZATION OF APPROPRIATIONS.— 

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

15 to the United States Agency for International Devel16 opment for grants under this subsection. 

17 SEC. 12. ENERGY PUBLIC DIPLOMACY. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated $5,000,000 to the De20 partment of State for public education activities on renew21 able energy in the Western Hemisphere. 

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

23 amount appropriated pursuant to paragraph (1) shall be 

24 used for education activities implemented through civil so25 ciety organizations. 


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1 SEC. 13. ENERGY TRADE. 

2 (a) FINDINGS.—Congress makes the following find3 ings: 

4 (1) It is the policy of the United States to pro5 mote free trade in energy among countries in the 

6 Western Hemisphere, which would— 

7 (A) help support a growing energy indus8 try; 

9 (B) create jobs that benefit development 

10 and alleviate poverty; 

11 (C) increase energy security through sup12 ply diversification; and 

13 (D) strengthen relations among countries 

14 in the Western Hemisphere through closer co15 operation and understanding. 

16 (2) Several countries in the Western Hemi17 sphere, including the United States, have protective 

18 tariffs and duties that limit the benefits that would 

19 accrue from free trade in energy. The United States 

20 Government should work with foreign governments 

21 to remove trade barriers in energy. 

22 (3) The United States should implement a plan 

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

24 should— 


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1 (A) encourage expanded investment and 

2 innovation in the biofuels industry in the 

3 United States; and 

4 (B) revise Federal incentives for the do5 mestic production of biofuels so they do not fi6 nance biofuels investment abroad. 

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

8 Commerce, in cooperation with the Secretary of State, 

9 shall conduct a study that evaluates— 

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

11 trade in biofuels in the Western Hemisphere, includ12 ing the United States; 

13 (2) the economic impacts resulting from the re14 strictions referred to in paragraph (1); 

15 (3) the impacts on United States foreign policy 

16 resulting from the restrictions referred to in para17 graph (1); 

18 (4) the effect of restrictions referred to in para19 graph (1) on United States obligations to the World 

20 Trade Organization; 

21 (5) the probable impacts on the economy and 

22 biofuels industry of the United States of— 

23 (A) removing all duties and tariffs on 

24 biofuels imports, beginning on January 1, 2009; 


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1 (B) removing all duties and tariffs on 

2 biofuels imports and making various revisions 

3 to the tax credits for ethanol production in the 

4 United States, including shifting the blend cred5 it to be a producers credit and replacement of 

6 the current credit with a variable credit scheme; 

7 (C) removing all duties and tariffs and in8 creasing the renewable fuels standard mandate 

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

10 60,000,000,000 gallons by 2030, including ex11 tending the renewable fuels standard, with revi12 sions favoring the use of next generation 

13 biofuels and domestic production; and 

14 (D) gradually removing the duties and tar15 iffs over a 5- and 10-year period; and 

16 (6) the probable impacts of removing United 

17 States tariffs and duties under the conditions de18 scribed in paragraph (5) on biofuels production, eco19 nomic development, and poverty alleviation in coun20 tries in the Western Hemisphere. 

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

22 shall conduct a study examining the likely impacts and 

23 feasibility of— 

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

25 biofuels that is imported from countries receiving 


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1 normal trade relations treatment from the United 

2 States that is equal to 15 percent of the biofuels 

3 consumed annually in the United States; 

4 (2) increasing the quota in ethanol imports to 

5 the United States from 7 percent to 15 percent over 

6 the next several years and expanding the scope of 

7 the quota beyond countries participating in the Car8 ibbean Basin Initiative to other least developed 

9 countries and to all countries who have received a 

10 Millennium Challenge grant; and 

11 (3) creating a separate quota for any other 

12 country receiving normal trade relations treatment 

13 from the United States. 

14 SEC. 14. WESTERN HEMISPHERE HYDROCARBON PRODUC15 TION. 

16 (a) STUDY PARTNERSHIP WITH MEXICO.—The Sec17 retary of Energy shall seek to work with the Government 

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

19 Mexican oil and gas production, future technological and 

20 investment needs, and recommendations for maintaining 

21 and increasing hydrocarbon production consistent with the 

22 priorities of the Government of Mexico. 

23 (b) NATURAL GAS STUDY.— 


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

2 consultation with the Secretary of Energy, shall con3 duct a study of— 

4 (A) the current state of natural gas pro5 duction in the Western Hemisphere; and 

6 (B) future natural gas demand and supply 

7 projections. 

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

9 submit a report to Congress that contains rec10 ommendations for the integration of the natural gas 

11 sector, including developing a liquefied natural gas 

12 infrastructure. 

13 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

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

15 year 2008 to carry out this section. 

16 SEC. 15. REPORT. 

17 The Secretary of State, in consultation with the Sec18 retary of Energy, shall submit an annual report to Con19 gress on the activities carried out to implement this Act. 

20 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

22 ‘‘Western Hemisphere Energy Compact’’. 

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

24 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 


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Sec. 4. Western Hemisphere Energy Cooperation Forum. 

Sec. 5. United States-Brazil biofuels partnership. 

Sec. 6. Biofuels feasibility studies. 

Sec. 7. Multilateral development banks. 

Sec. 8. Carbon credit trading mechanisms. 

Sec. 9. Energy crisis response mechanism. 

Sec. 10. Energy foreign assistance. 

Sec. 11. Energy public diplomacy. 

Sec. 12. Report. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The engagement of the United States Govern4 ment on energy issues with the Government of Brazil 

5 and the governments of willing countries in the West6 ern Hemisphere is a strategic priority because such 

7 engagement can help to— 

8 (A) reduce the potential for conflict over en9 ergy resources; 

10 (B) maintain and expand reliable energy 

11 supplies; 

12 (C) expand the use of renewable energy; and 

13 (D) reduce the detrimental effects of energy 

14 import dependence. 

15 (2) Current energy dialogues and agreements 

16 should be expanded and refocused, as needed, to meet 

17 the challenges described in paragraph (1). 

18 (3) Countries in the Western Hemisphere can 

19 most effectively meet their common needs for energy 

20 security and sustainability through partnership and 

21 cooperation. Cooperation between governments on enVerDate Aug 31 2005 02:16 Sep 24, 2008 Jkt 069200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6203 E:\BILLS\S1007.RS S1007

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1 ergy issues will enhance bilateral and regional rela2 tionships among countries in the Western Hemi3 sphere. The Western Hemisphere is rich in natural re4 sources, including biomass, oil, natural gas, and coal, 

5 and there are significant opportunities for the pro6 duction of renewable energy, including hydro, solar, 

7 and wind. Countries in the Western Hemisphere can 

8 provide convenient and reliable markets for their own 

9 energy needs and for foreign trade in energy goods 

10 and services. 

11 (4) Development of sustainable energy alter12 natives in countries in the Western Hemisphere can 

13 improve energy security, balance of trade, and envi14 ronmental quality, and can provide markets for en15 ergy technology and agricultural products. 

16 (5) The Government of the United States has ac17 tively worked with the Government of Brazil to de18 velop a strong biofuels partnership and to increase the 

19 production and use of biofuels. On March 9, 2007, the 

20 Memorandum of Understanding Between the United 

21 States and Brazil to Advance Cooperation on 

22 Biofuels, was signed in Sa ̃o Paulo, Brazil. 

23 (6) Brazil and the United States have led the 

24 world in the production of ethanol. Deeper coopera25 tion on biofuels with other countries of the hemisphere 


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1 would extend economic, security, and political bene2 fits. 

3 (7) The United States is committed to developing 

4 a biofuels partnership in the Western Hemisphere 

5 that benefits the welfare of the people of the Western 

6 Hemisphere. According to the Latin American En7 ergy Organization, the percentage of total energy con8 sumption in each of the following countries in the 

9 Western Hemisphere that originated from imported 

10 crude oil and oil products in 2005 was— 

11 (A) 2 percent in Argentina; 

12 (B) 93 percent in Barbados; 

13 (C) 7 percent in Bolivia; 

14 (D) 13 percent in Brazil; 

15 (E) 55 percent in Chile; 

16 (F) 4 percent in Colombia; 

17 (G) 56 percent in Costa Rica; 

18 (H) 77 percent in the Dominican Republic; 

19 (I) 20 percent in Ecuador; 

20 (J) 76 percent in El Salvador; 

21 (K) 85 percent in Grenada; 

22 (L) 72 percent in Guatemala; 

23 (M) 100 percent in Guyana; 

24 (N) 93 percent in Haiti; 

25 (O) 81 percent in Honduras; 


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1 (P) 91 percent in Jamaica; 

2 (Q) 10 percent in Mexico; 

3 (R) 98 percent in Nicaragua; 

4 (S) 100 percent in Panama; 

5 (T) 46 percent in Paraguay; 

6 (U) 39 percent in Peru; 

7 (V) 34 percent in Suriname; 

8 (W) 45 percent in Trinidad and Tobago; 

9 (X) 79 percent in Uruguay; and 

10 (Y) 0 percent in Venezuela. 

11 (8) Private sector partnership and investment in 

12 all sources of energy is critical to providing energy se13 curity in the Western Hemisphere. Several countries 

14 in the Western Hemisphere have endangered the in15 vestment climate. Other countries in the Western 

16 Hemisphere have been unable to make reforms nec17 essary to create investment climates necessary to in18 crease the domestic production of energy. 

19 (9) It is the policy of the United States to pro20 mote free trade in energy among countries in the 

21 Western Hemisphere, which would— 

22 (A) help support a growing energy indus23 try; 

24 (B) create jobs that benefit development and 

25 alleviate poverty; 


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1 (C) increase energy security through supply 

2 diversification; and 

3 (D) strengthen relations among countries in 

4 the Western Hemisphere through closer coopera5 tion and understanding. 

6 SEC. 3. DEFINITIONS. 

7 In this Act: 

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

9 liquid fuel that is derived from biomass. 

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

11 organic matter that is available on a renewable or re12 curring basis, including agricultural crops, trees, 

13 wood, wood wastes and residues, plants (including 

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

15 wastes, municipal wastes, and other waste materials. 

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

17 country’’ means a country that, along with the 

18 United States and Brazil, joins the Western Hemi19 sphere Energy Cooperation Forum established pursu20 ant to section 4 and has agreed to conduct a biofuels 

21 feasibility study under section 6. 

22 (4) REGIONAL DEVELOPMENT BANKS.—The term 

23 ‘‘regional development banks’’ means the African De24 velopment Bank, the Inter-American Development 

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1 ropean Bank for Reconstruction and Development, 

2 and the Asian Development Bank. 

3 SEC. 4. WESTERN HEMISPHERE ENERGY COOPERATION 

4 FORUM. 

5 (a) ESTABLISHMENT.—The Secretary of State, in co6 ordination with the Secretary of Energy, shall seek to estab7 lish a regional-based ministerial forum to be known as the 

8 Western Hemisphere Energy Cooperation Forum (referred 

9 to in this subsection as the ‘‘Energy Forum’’). The United 

10 States Government shall initially provide the framework for 

11 the Energy Forum and shall seek to establish a rotating 

12 chairmanship, in consultation with the Government of 

13 Brazil. 

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

15 (1) to strengthen relationships between the 

16 United States and other countries of the Western 

17 Hemisphere through cooperation on energy issues; 

18 (2) to enhance cooperation, including informa19 tion and technology sharing, between major energy 

20 producers and major energy consumers in the Western 

21 Hemisphere, particularly among the Governments of 

22 Brazil, Canada, Mexico, the United States, and Ven23 ezuela; 

24 (3) to explore possibilities to work with countries 

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1 ergy production (particularly in biofuels) and to less2 en dependence on oil imports without reducing food 

3 availability (particularly in Mexico and Central 

4 American countries); 

5 (4) to ensure that energy contributes to the eco6 nomic, social, and environmental enhancement of the 

7 countries of the Western Hemisphere; 

8 (5) to provide an opportunity for open dialogue 

9 and joint commitments among Energy Forum coun10 tries and with private industry; and 

11 (6) to provide participating countries the flexi12 bility necessary to cooperatively address broad chal13 lenges posed to the energy supply of the Western 

14 Hemisphere to find solutions that are politically ac15 ceptable and practical in policy terms. 

16 (c) ACTIVITIES.—The United States Government shall 

17 seek to implement, in cooperation with Energy Forum 

18 countries— 

19 (1) an energy crisis initiative that will promote 

20 national and regional measures to respond to tem21 porary energy supply disruptions, including partici22 pating in a Western Hemisphere energy crisis re23 sponse mechanism in accordance with section 9(b); 

24 (2) an energy sustainability initiative to facili25 tate long-term supply security by fostering reliable 


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1 supply sources of fuels and improved energy effi2 ciency, including— 

3 (A) developing, deploying, and commer4 cializing technologies for sustainable renewable 

5 fuels within the region; 

6 (B) promoting production and trade in sus7 tainable energy, including energy from biomass; 

8 (C) facilitating investment, trade, and tech9 nology cooperation in energy infrastructure, pe10 troleum products, natural gas (including lique11 fied natural gas), energy efficiency (including 

12 automotive efficiency), clean fossil energy, renew13 able energy, and carbon sequestration; 

14 (D) promoting regional infrastructure and 

15 market integration; 

16 (E) developing effective and stable regu17 latory frameworks; 

18 (F) developing policy instruments to en19 courage the use of renewable energy and im20 proved energy efficiency; 

21 (G) establishing educational training and 

22 exchange programs between Energy Forum coun23 tries; and 

24 (H) identifying and removing barriers to 

25 trade in technology, services, and commodities; 


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1 (3) an energy for development initiative to pro2 mote energy access for underdeveloped areas through 

3 energy policy and infrastructure development, includ4 ing— 

5 (A) increasing access to energy services for 

6 the poor; 

7 (B) improving energy sector market condi8 tions; 

9 (C) promoting rural development though 

10 biomass energy production and use; 

11 (D) increasing transparency of, and par12 ticipation in, energy infrastructure projects; 

13 (E) promoting development and deployment 

14 of technology for clean and sustainable energy 

15 development, including biofuel and clean coal 

16 technologies; and 

17 (F) facilitating the use of carbon sequestra18 tion methods in agriculture and forestry and 

19 linking greenhouse gas emissions reduction pro20 grams to international carbon markets; and 

21 (4) biofuels studies, with country studies pro22 vided by each partner country, in accordance with 

23 section 6. 

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

25 the Energy Forum should— 


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

2 (2) meet on a subregional basis, as needed. 

3 (e) WESTERN HEMISPHERE ENERGY INDUSTRY

4 GROUP.— 

5 (1) AUTHORITY.—The Secretary of State, in co6 ordination with the Secretary of Commerce and the 

7 Secretary of Energy, shall approach the governments 

8 of other countries in the Western Hemisphere to seek 

9 cooperation in establishing a Western Hemisphere 

10 Energy Industry Group (referred to in this subsection 

11 as the ‘‘Energy Group’’) within the Western Hemi12 sphere Energy Cooperation Forum. The Energy 

13 Group should include representatives from industries 

14 and governments in the Western Hemisphere. 

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

16 Group should be to— 

17 (A) increase public-private partnerships; 

18 (B) foster private investment; and 

19 (C) enable countries in the Western Hemi20 sphere to devise energy agendas compatible with 

21 industry capacity and cognizant of industry 

22 goals. 

23 (3) DISCUSSION TOPICS.—It is the sense of Con24 gress that the Energy Group should discuss— 

25 (A) promoting a secure investment climate; 


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1 (B) developing and deploying biofuels and 

2 other alternative fuels and clean electrical pro3 duction facilities, including clean coal and car4 bon capture and storage; 

5 (C) developing and deploying energy effi6 cient technologies and practices in the industrial, 

7 residential, and transportation sectors; 

8 (D) investing in oil and natural gas pro9 duction and distribution; 

10 (E) maintaining transparency of energy 

11 production, trade, consumption, and reserves 

12 data; 

13 (F) promoting biofuels research; and 

14 (G) training and education exchange pro15 grams. 

16 (f) OIL AND NATURAL GAS WORKING GROUP.— 

17 (1) ESTABLISHMENT.—The United States Gov18 ernment shall explore the establishment of the Oil and 

19 Gas Working Group within the Western Hemisphere 

20 Energy Cooperation Forum or the Energy Industry 

21 Group. 

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

23 Group should strengthen dialogue between inter24 national oil companies, national oil companies, and 

25 civil society groups on issues related to international 


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1 standards on transparency, social responsibility, and 

2 best practices in leasing and management of oil and 

3 natural gas projects. 

4 (g) APPROPRIATION.—There are authorized to be ap5 propriated $3,000,000 to carry out this section. 

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

7 (a) IN GENERAL.—The Secretary of State, in coordi8 nation with the Secretary of Energy, shall work with the 

9 Government of Brazil to— 

10 (1) coordinate efforts to promote the production 

11 and use of biofuels among countries, giving preference 

12 to those countries that are among the poorest (as de13 termined by the Inter-American Development Bank) 

14 and most dependent on petroleum imports, includ15 ing— 

16 (A) coordinating the biofuels feasibility 

17 studies described in section 6; 

18 (B) collaborating on policy and regulatory 

19 measures to— 

20 (i) promote domestic biofuels produc21 tion and use, including related agricultural 

22 and environmental measures; 

23 (ii) reform automotive sectors to incor24 porate biofuels use including increased effi25 ciency, reduced emissions, and integration 


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1 with high-efficiency advanced technologies; 

2 and 

3 (iii) reform fueling infrastructure to 

4 allow for use of biofuels and other alter5 native fuels; 

6 (2) invite the European Union, China, India, 

7 South Africa, Japan, and other interested countries to 

8 join in and expand upon existing international efforts 

9 to promote the development of a global strategy to cre10 ate global biofuels markets and promote biofuels pro11 duction and use in developing countries; 

12 (3) assess the feasibility of working with the 

13 World Bank and relevant regional development banks 

14 regarding— 

15 (A) biofuels production capabilities; and 

16 (B) infrastructure, research, and training 

17 related to such capabilities; and 

18 (4) develop a joint and coordinated strategy re19 garding the construction and retrofitting of pipelines 

20 and terminals near major fuel distribution centers, 

21 coastal harbors, and railroads. 

22 (b) INTERNATIONAL AGRICULTURAL EXTENSION PRO23 GRAMS.—The Secretary of Agriculture shall work with the 

24 Government of Brazil to facilitate joint agricultural exten25 sion activities related to biofuels crop production, biofuels 


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1 production, and environmental and greenhouse gas emis2 sions reduction practices. 

3 (c) EDUCATIONAL GRANTS.—The Secretary of Energy, 

4 in coordination with the Secretary of State, and in collabo5 ration with the Government of Brazil, shall establish a 

6 grant program to finance advanced biofuels research and 

7 collaboration between academic and research institutions in 

8 the United States and Brazil. 

9 (d) FUNDING SOURCES.— 

10 (1) AUTHORIZATION OF APPROPRIATIONS.— 

11 There are authorized to be appropriated for fiscal 

12 year 2009— 

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

14 (B) $5,000,000 to carry out subsection (b); 

15 and 

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

17 (2) SUPPLEMENTAL FUNDING SOURCES.—The 

18 Secretary of State shall work with the Government of 

19 Brazil, the governments of partner countries, regional 

20 development banks, the Organization of American 

21 States, and other interested parties to identify supple22 mental funding sources for the biofuels feasibility 

23 studies described in section 6. 


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1 SEC. 6. BIOFUELS FEASIBILITY STUDIES. 

2 (a) IN GENERAL.—The Secretary of State, in consulta3 tion with the Secretary of Energy, shall work with each 

4 partner country to conduct a study to determine the feasi5 bility of increasing the production and use of biofuels in 

6 such country. 

7 (b) ANALYSIS OF THE ENERGY POLICY FRAME8 WORK.—The study conducted under subsection (a) shall 

9 analyze— 

10 (1) the energy policy of the partner country, par11 ticularly the impact of such policy on the promotion 

12 of biofuels; and 

13 (2) the status and impacts of any existing biofuel 

14 programs of the country. 

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

16 under subsection (a) shall assess, with respect to the partner 

17 country— 

18 (1) the quantitative and qualitative current and 

19 projected demand for energy by families, villages, in20 dustries, public transportation infrastructure, and 

21 other energy consumers; 

22 (2) the future consumption by the heat, elec23 tricity, and transportation sectors; 

24 (3) the demand for high-quality transportation 

25 fuel; 


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1 (4) the local market prices for various energy 

2 sources; and 

3 (5) the employment, income generation, and 

4 rural development opportunities from biofuel indus5 try. 

6 (d) ASSESSMENT OF RESOURCES.—The study con7 ducted under subsection (a) shall— 

8 (1) assess the present and future biomass re9 sources that are available in each geographic region 

10 of the participating country to meet the demand as11 sessed under subsection (c); 

12 (2) include a plan for increasing the availability 

13 of existing biomass resources in the country; and 

14 (3) include a plan for developing new, sustain15 able biomass resources in the country, including 

16 wood, manure, agricultural residues, sewage, and or17 ganic waste. 

18 (e) ANALYSIS OF AVAILABLE TECHNOLOGIES AND SYS19 TEMS.—Building upon the results of the assessments de20 scribed in subsections (c) and (d), the study shall— 

21 (1) analyze available technologies and systems 

22 for utilizing biofuels in the country, including— 

23 (A) technologies for the conversion of bio24 mass crops and agroforestry residues in pellets 

25 and briquettes; 


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1 (B) low-pollution stoves; 

2 (C) biogas production; 

3 (D) charcoal and activated coal production; 

4 (E) biofuel production; 

5 (F) combustion and co-combustion tech6 nologies; 

7 (G) the availability of biofuels technologies 

8 in various geographic regions; and 

9 (H) the economic viability of biomass tech10 nologies; and 

11 (2) compare such technologies and systems to 

12 conventional energy supplies with respect to cost-effec13 tiveness, maintenance, social acceptability, and the 

14 impact on development. 

15 (f) ENVIRONMENTAL ASSESSMENT.—The study con16 ducted under subsection (a) shall assess— 

17 (1) the likely impacts of increased biomass har18 vesting and production, and biofuels production and 

19 use on environmental sustainability, including effects 

20 on carbon emissions; and 

21 (2) the availability of financing from global car22 bon credit trading mechanisms. 

23 (g) FOOD SECURITY ASSESSMENT.—The study pre24 pared by each partner country under subsection (a) shall 


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1 assess the likely impacts on food stocks and prices in part2 ner countries. 

3 (h) DEVELOPMENT OF POLICY OPTIONS TO PROMOTE

4 BIOFUEL PRODUCTION AND USE.— 

5 (1) IN GENERAL.—The study prepared by each 

6 partner country under subsection (a) shall identify 

7 and evaluate policy options to promote biofuel pro8 duction and use, after taking into account— 

9 (A) the existing energy policy of the coun10 try; and 

11 (B) the technologies available to convert 

12 local biomass resources into biofuels. 

13 (2) COORDINATION.—In conducting the evalua14 tion under paragraph (1), the partner country shall 

15 involve local, national, and international public and 

16 private institutions with responsibility or expertise in 

17 biofuel production and use. 

18 (3) PRINCIPAL ISSUES.—The study shall ad19 dress— 

20 (A) potential biomass in the country and 

21 barriers for the production of biofuels from such 

22 biomass products; 

23 (B) strategies for creating a market for bio24 mass products in the country; 


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1 (C) the potential contribution of biofuels to 

2 reducing fossil fuel consumption in the country; 

3 (D) environmental sustainability issues and 

4 the mitigating effect on carbon emissions of in5 creased biofuel production; 

6 (E) the potential contribution of biofuels to 

7 economic development, poverty reduction, and 

8 sustainability of energy resources; 

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

10 transportation sector; 

11 (G) economic cooperation across inter12 national borders to increase biofuel production 

13 and use; 

14 (H) technology collaboration and joint ven15 tures and technological, cultural, and legal bar16 riers that may impede such technological co17 operation; and 

18 (I) the economic aspects of the promotion of 

19 biofuels, including job creation, financing and 

20 loan mechanisms, credit mobilization, investment 

21 capital, and market penetration. 

22 (i) AUTHORIZATION OF APPROPRIATIONS.—There are 

23 authorized to be appropriated $20,000,000 for fiscal year 

24 2009 to carry out this section. 


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1 SEC. 7. MULTILATERAL DEVELOPMENT BANKS. 

2 The Secretary of the Treasury shall inform the man3 agements of the international financial institutions and the 

4 public that it is the policy of the United States that assist5 ance by such institutions should encourage development of 

6 renewable energy sources, including energy derived from 

7 biomass. 

8 SEC. 8. CARBON CREDIT TRADING MECHANISMS. 

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

10 with interested governments in the Western Hemisphere and 

11 other countries to organize regional and hemispheric carbon 

12 trading mechanisms under the United Nations Framework 

13 Convention on Climate Change and existing trade and fi14 nancial agreements to— 

15 (1) establish special carbon credits for the preser16 vation of tropical rain forests; 

17 (2) use greenhouse gas-reducing farming prac18 tices; 

19 (3) jointly fund greenhouse gas sequestration 

20 studies and experiments in various geological forma21 tions; and 

22 (4) jointly fund climate mitigation studies in 

23 vulnerable areas in the Western Hemisphere. 

24 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

25 authorized to be appropriated $5,000,000 for fiscal year 

26 2009 to carry out this section. 


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1 SEC. 9. ENERGY CRISIS RESPONSE MECHANISM. 

2 (a) FINDINGS.—Congress makes the following findings: 

3 (1) Cooperation between the United States Gov4 ernment and governments of other countries during 

5 energy crises promotes the national security of the 

6 United States and of the cooperating countries. 

7 (2) Credible contingency plans to respond to en8 ergy shortages may serve as deterrents to the manipu9 lation of energy supplies by export and transit coun10 tries. 

11 (3) The vulnerability of most countries in the 

12 Western Hemisphere to supply disruptions from polit13 ical, natural, or terrorism causes may introduce in14 stability in the Western Hemisphere and can be a 

15 source of conflict, despite the existence of major energy 

16 resources in the Western Hemisphere. The United 

17 States and Canada are the only members of the Inter18 national Energy Program in the Western Hemi19 sphere. 

20 (4) Integrating countries in the Western Hemi21 sphere into regional and international agreements for 

22 the management of energy emergencies will benefit 

23 market stability and encourage development in par24 ticipating countries. 

25 (b) ESTABLISHMENT OF AN ENERGY CRISIS RESPONSE

26 MECHANISM FOR THE WESTERN HEMISPHERE.— 


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1 (1) AUTHORITY.—The Secretary of State, in co2 ordination with the Secretary of Energy, shall imme3 diately seek to establish a Western Hemisphere energy 

4 crisis response mechanism. 

5 (2) SCOPE.—The mechanism established under 

6 paragraph (1) should include, as appropriate— 

7 (A) a real-time information sharing and co8 ordinating mechanism to respond to energy sup9 ply emergencies; 

10 (B) technical assistance in the development 

11 and management of national and regional stra12 tegic reserves within the Western Hemisphere; 

13 (C) the promotion of increased energy infra14 structure integration between countries; 

15 (D) emergency demand restraint measures; 

16 (E) energy switching preparedness and al17 ternative energy production capacity; 

18 (F) ongoing demand intensity reduction 

19 programs; and 

20 (G) measures to strengthen sea lane and in21 frastructure security. 

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

23 include in the Western Hemisphere energy crisis re24 sponse mechanism membership of each major energy 

25 producer and major energy consumer in the Western 


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1 Hemisphere and other members of the Western Hemi2 sphere Energy Cooperation Forum established pursu3 ant to section 4(a). 

4 (4) STUDY.—The Secretary of Energy shall— 

5 (A) conduct a study of supply 

6 vulnerabilities for natural gas in the Western 

7 Hemisphere; and 

8 (B) submit a report to the appropriate con9 gressional committees that includes recommenda10 tions for infrastructure and regulatory needs for 

11 reducing supply disruption vulnerability and 

12 international coordination. 

13 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated $5,000,000 for fiscal year 

15 2009 to carry out this section. 

16 SEC. 10. ENERGY FOREIGN ASSISTANCE. 

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

18 States Agency for International Development (referred to 

19 in this section as the ‘‘Administrator’’) shall seek to increase 

20 United States foreign assistance programming in renewable 

21 energy, including in activities to reduce energy import de22 pendence through the use of biofuels. 

23 (b) DEVELOPMENT STRATEGY REVIEW.—The Admin24 istrator shall— 


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1 (1) review country assistance strategies to in2 crease assistance for renewable energy activities; and 

3 (2) submit the results of this review to the appro4 priate congressional committees not later than 180 

5 days after the date of the enactment of this Act. 

6 (c) EXPEDITED SUSTAINABLE ENERGY GRANTS.— 

7 (1) AUTHORIZATION.—The Administrator is au8 thorized to award grants to nongovernmental organi9 zations for sustainable energy and job creation 

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

11 funds shall be provided to grantees on an expedited 

12 basis upon approval of the eligible project. 

13 (2) AUTHORIZATION OF APPROPRIATIONS.— 

14 There is authorized to be appropriated $5,000,000 to 

15 the United States Agency for International Develop16 ment for grants under this subsection. 

17 SEC. 11. ENERGY PUBLIC DIPLOMACY. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated $5,000,000 to the Depart20 ment of State for public diplomacy activities on renewable 

21 energy in the Western Hemisphere. 

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

23 amount appropriated pursuant to paragraph (1) shall be 

24 used for education activities implemented through civil soci25 ety organizations. 


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1 SEC. 12. REPORT. 

2 The Secretary of State, in consultation with the Sec3 retary of Energy, shall submit an annual report to Congress 

4 on the activities carried out to implement this Act. 


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Calendar No. 1044 

110TH CONGRESS 

2D SESSION S. 1007 

A BILL 

To direct the Secretary of State to work with the 

vironment. improving energy security and protecting the enpoverty, create jobs, and increase income, while tion, research, and infrastructure; to alleviate accelerating the development of biofuels producen diplomatic relations and energy security by ments to develop partnerships that will strengthGovernment of Brazil and other foreign governSEPTEMBER 23 (legislative day, SEPTEMBER 17), 2008 

Reported with an amendment 


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