To establish a Western Hemisphere Energy Cooperation Forum to establish partnerships with interested countries in the hemisphere to promote energy security through the accelerated development of sustainable biofuels production and energy alternatives, research, and infrastructure, and for other purposes.
Mr. LUGAR introduced the following bill; which was read twice and referred to the Committee on Foreign Relations
To establish a Western Hemisphere Energy Cooperation Forum to establish partnerships with interested countries in the hemisphere to promote energy security through the accelerated development of sustainable biofuels production and energy alternatives, research, and infrastructure, and for other purposes.
(a) Short Title- This Act may be cited as the ‘Western Hemisphere Energy Compact’.
(b) Table of Contents- The table of contents for 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. International agricultural extension programs.
Sec. 7. Biofuels feasibility studies.
Sec. 8. Regional development banks.
Sec. 9. Carbon credit trading mechanisms.
Sec. 10. Energy crisis response preparedness.
Sec. 11. Energy foreign assistance.
Sec. 12. Energy public diplomacy.
Sec. 13. Report.
Congress makes the following findings:
(1) The engagement of the United States Government on energy issues with governments of willing countries in the Western Hemisphere is a strategic priority because such engagement can help to--
(A) reduce the potential for conflict over energy resources;
(B) maintain and expand reliable energy supplies;
(C) expand the use of renewable energy; and
(D) reduce the detrimental effects of energy import dependence.
(2) Several nations in the Western Hemisphere, including Brazil, Canada, Mexico, the United States, and Venezuela, are important for global energy security and climate change mitigation.
(3) Current energy dialogues and agreements should be expanded and refocused, as needed, to meet the challenges described in paragraph (1).
(4) Countries in the Western Hemisphere can most effectively meet their common needs for energy security and sustainability through partnership and cooperation. Cooperation between governments on energy issues will enhance bilateral and regional relationships among countries in the Western Hemisphere. The Western Hemisphere is rich in natural resources, including biomass, oil, natural gas, and coal, and there are significant opportunities for the production of renewable energy, including hydroelectric, solar, geothermal, and wind power. Countries in the Western Hemisphere can provide convenient and reliable markets for their own energy needs and for foreign trade in energy goods and services.
(5) Development of sustainable energy alternatives in countries in the Western Hemisphere can improve energy security, balance of trade, and environmental quality, and can provide markets for energy technology and agricultural products.
(6) Brazil and the United States have led the world in the production of ethanol. Deeper cooperation on biofuels with other countries in the hemisphere would extend economic, security, and political benefits. The Government of the United States has actively worked with the Government of Brazil to develop a strong biofuels partnership and to increase the production and use of biofuels. On March 9, 2007, the Memorandum of Understanding Between the United States and Brazil to Advance Cooperation on Biofuels was signed in Sao Paulo, Brazil.
(7) Private sector partnership and investment in all sources of energy is critical to providing energy security in the Western Hemisphere. Several countries in the Western Hemisphere have endangered their investment climate. Other countries in the Western Hemisphere have been unable to make reforms necessary to create investment climates necessary to increase the domestic production of energy.
(8) It is the policy of the United States to promote free trade in energy among countries in the Western Hemisphere, which would--
(A) help support a growing energy industry;
(B) create jobs that benefit development and alleviate poverty;
(C) increase energy security through supply diversification; and
(D) strengthen integration among countries in the Western Hemisphere through closer cooperation.
(a) Establishment- The Secretary of State, in coordination with the Secretary of Energy, shall seek to establish a ministerial forum with countries in the Western Hemisphere to be known as the Western Hemisphere Energy Cooperation Forum (in this subsection referred to as the ‘Energy Forum’).
(b) Purposes- The purposes of the Energy Forum shall be to--
(1) strengthen relationships between countries of the Western Hemisphere through cooperation on energy issues;
(2) enhance cooperation, including information and technology cooperation, between major energy producers and major energy consumers in the Western Hemisphere;
(3) explore possibilities for countries in the Western Hemisphere to work together to promote renewable energy production (particularly in biofuels) and to lessen dependence on oil imports without reducing food security;
(4) ensure the energy supply is sufficient to facilitate continued economic, social, and environmental progress in the countries of the Western Hemisphere;
(5) provide an opportunity for open dialogue and joint commitments among partner countries and with private industry;
(6) provide partner countries the flexibility necessary to cooperatively address broad challenges posed to the energy supply of the Western Hemisphere and to find solutions that are politically acceptable and practical in policy terms; and
(7) improve transparency in the energy sector.
(c) Activities- The Secretary of State, together with the Secretary of Energy, shall seek to implement, in cooperation with partner countries--
(1) an energy crisis initiative that will promote national and regional measures to respond to temporary energy supply disruptions, including participation in a Western Hemisphere energy crisis response mechanism in accordance with section 9(b);
(2) an energy sustainability initiative to facilitate the long-term security of the energy supply by fostering reliable sources of energy and improved energy efficiency, including--
(A) developing, deploying, and commercializing technologies for producing sustainable renewable energy within the Western Hemisphere;
(B) promoting production and trade in sustainable energy, including energy from biomass;
(C) facilitating investment, trade, and technology cooperation in energy infrastructure, petroleum products, natural gas (including liquefied natural gas), and energy efficiency (including automotive efficiency), cleaner fossil energy, renewable energy, and carbon sequestration technologies;
(D) promoting regional infrastructure and market integration;
(E) developing effective and stable regulatory frameworks;
(F) developing policy instruments to encourage the use of renewable energy and improved energy efficiency;
(G) establishing educational training and exchange programs between partner countries;
(H) identifying and removing barriers to trade in technology, services, and commodities;
(I) promoting dialogue and common measures of environmental sustainability for energy practices; and
(J) mapping potential energy resources from hydrocarbons, hydrokinetic, solar, wind, biomass, and geothermal;
(3) an energy for development initiative to promote energy access for underdeveloped areas through energy policy and infrastructure development, including--
(A) increasing access to energy services for the poor;
(B) improving energy sector market conditions;
(C) promoting rural development though biomass and other renewable energy production and use;
(D) increasing transparency of, and participation in, energy infrastructure projects;
(E) promoting development and deployment of technology for clean and sustainable energy development, including biofuel and clean coal technologies;
(F) facilitating the use of carbon sequestration methods in agriculture and forestry, including facilitating participation in international carbon markets; and
(G) developing microenergy opportunities;
(4) a climate change mitigation and adaptation initiative, including activities such as--
(A) coordinating regional public and private partnerships for greenhouse gas reduction;
(B) identifying opportunities and facilitating mechanisms for forest preservation and reclamation;
(C) sharing best practices in energy policy formulation and execution;
(D) identifying areas at severe risk for climate change, such as drought, flooding, and other environmental phenomena that could lead to crisis;
(E) identifying areas in need of agricultural innovation to prepare for climate change, including using biotechnology where appropriate; and
(F) cataloging greenhouse gas emissions in the Western Hemisphere, including private sector reporting; and
(5) the increase use of biofuels based on the studies provided by each partner country under section 7.
(d) Implementation- It is the sense of Congress that--
(1) all partner countries should meet at least once every year;
(2) partner countries should meet on a subregional basis, as needed; and
(3) civil society, indigenous populations, and private industry representatives should be integral to the activities of the Energy Forum.
(e) Western Hemisphere Energy Industry Group-
(1) AUTHORITY- The Secretary of State, in coordination with the Secretary of Commerce and the Secretary of Energy, shall seek to establish a Western Hemisphere Energy Industry Group (in this subsection referred to as the ‘Energy Group’) within the Energy Forum. The Energy Group should include representatives from industry and governments in the Western Hemisphere.
(2) PURPOSES- The purposes of the Energy Group are to--
(A) increase public-private partnerships;
(B) foster private investment;
(C) enable countries in the Western Hemisphere to devise energy agendas that are compatible with industry capacity and cognizant of industry goals; and
(D) promote transparency in financial flows in the extractive industries in accordance with the principles of the Extractive Industries Transparency Initiative.
(3) DISCUSSION TOPICS- It is the sense of Congress that the Energy Group should--
(A) promote a secure investment climate;
(B) research and deploy biofuels and other alternative fuels and clean electrical production facilities, including clean coal and carbon capture and storage;
(C) develop and deploy energy efficient technologies and practices in the industrial, residential, and transportation sectors;
(D) invest in oil and natural gas production and distribution;
(E) maintain transparency of data relating to energy production, trade, consumption, and reserves;
(F) promote biofuels research; and
(G) establish training and education exchange programs.
(f) Oil and Natural Gas Working Group-
(1) ESTABLISHMENT- The Secretary of State and the Secretary of Energy shall seek to establish an Oil and Gas Working Group within the Energy Forum or the Energy Group.
(2) PURPOSE- The purpose of the Oil and Gas Working Group shall be to strengthen dialogue between international oil companies, national oil companies, and civil society groups on issues relating to international standards on transparency, social responsibility, and best practices in leasing and management of oil and natural gas projects.
(g) Appropriation- There are authorized to be appropriated to the Secretary of State $6,000,000 for fiscal year 2010 to carry out this section.