1.This Act may be cited as
the Energy Diplomacy and Security Act
of 2006
.
2.In this Act:
(1)The term major energy producer means a
country that—
(A)had crude oil,
oil sands, or natural gas to liquids production of 1,000,000 barrels per day or
greater average in the previous year;
(B)has crude oil,
shale oil, or oil sands reserves of 6,000,000,000 barrels or greater, as
recognized by the Department of Energy;
(C)had natural gas
production of 30,000,000,000 cubic meters or greater in the previous
year;
(D)has natural gas
reserves of 1,250,000,000,000 cubic meters or greater, as recognized by the
Department of Energy; or
(E)is a direct
supplier of natural gas or liquefied natural gas to the United States.
(2)The term major energy consumer means a
country that—
(A)had an oil
consumption average of 1,000,000 barrels per day or greater in the previous
year;
(B)had an oil
consumption growth rate of 8 percent or greater in the previous year;
(C)had a natural gas
consumption of 30,000,000,000 cubic meters or greater in the previous year;
or
(D)had a natural gas
consumption growth rate of 15 percent or greater in the previous year.
3.Sense of
Congress on energy diplomacy and security
(a)Congress
makes the following findings:
(1)It is imperative
to the national security and prosperity of the United States to have reliable,
affordable, clean, sufficient, and sustainable sources of energy.
(2)United States
dependence on oil imports causes tremendous costs to the United States economy,
foreign policy, military, and environmental sustainability.
(3)Energy security
is a priority for the governments of many foreign countries and increasingly
plays a central role in the relations of the United States Government with
foreign governments. Global reserves of oil and natural gas are concentrated in
a small number of countries. Access to these oil and natural gas supplies
depends on the political will of these producing states. Competition between
governments for access to oil and natural gas reserves can lead to economic,
political, and armed conflict. Oil exporting states have received dramatically
increased revenues due to high global prices, enhancing the ability of some of
these states to act in a manner threatening to global stability.
(4)Efforts to combat
poverty and protect the environment are hindered by the continued predominance
of oil and natural gas in meeting global energy needs. Development of renewable
energy through sustainable practices will help lead to a reduction in
greenhouse gas emissions and enhance international development.
(5)Cooperation on
energy issues between the United States Government and the governments of
foreign countries is critical for securing the strategic and economic interests
of the United States and of partner governments.
(b)It is the sense of Congress that—
(1)United States
national security requires that the United States Government have an energy
policy that pursues the strategic goal of achieving energy security through
access to clean, affordable, sufficient, reliable, and sustainable sources of
energy;
(2)achieving energy
security is a priority for United States foreign policy and requires continued
and enhanced engagement with foreign governments and entities in a variety of
areas, including activities relating to the promotion of alternative and
renewable fuels, trade and investment in oil, coal, and natural gas, energy
efficiency, climate and environmental protection, data transparency, advanced
scientific research, public-private partnerships, and energy activities in
international development;
(3)the President
should ensure that the international energy activities of the United States
Government are given clear focus to support the national security needs of the
United States, and to this end, there should be established a mechanism to
coordinate the implementation of United States international energy policy
among the Federal agencies engaged in relevant agreements and activities;
and
(4)the Secretary of
State should ensure that energy security is integrated into the core mission of
the Department of State, and to this end, there should be established within
the Office of the Secretary of State a Coordinator for International Energy
Affairs with responsibility for—
(A)developing United
States international energy policy;
(B)working with
appropriate United States Government officials to develop and update analyses
of the national security implications of global energy developments;
(C)incorporating
energy security priorities into the activities of the Department;
(D)coordinating
activities with relevant Federal agencies; and
(E)carrying out
other relevant functions currently carried out by the Office of International
Energy and Commodity Policy within the Bureau of Economic and Business
Affairs.
4.Strategic energy
partnerships
(a)Congress
makes the following findings:
(1)United States
Government partnership with foreign governments and entities, including
partnership with the private sector, for securing reliable and sustainable
energy is imperative to ensuring United States security and economic interests,
promoting international peace and security, expanding international
development, supporting democratic reform, fostering economic growth, and
safeguarding the environment.
(2)Democracy and
freedom should be promoted globally by partnership with foreign governments,
including in particular governments of emerging democracies such as those of
Ukraine and Georgia, in their efforts to reduce their dependency on oil and
natural gas imports.
(3)The United States
Government and the governments of foreign countries have common needs for
adequate, reliable, affordable, clean, and sustainable energy in order to
ensure national security, economic growth, and high standards of living in
their countries. Cooperation by the United States Government with foreign
governments on meeting energy security needs is mutually beneficial. United
States Government partnership with foreign governments should include
cooperation with major energy consuming countries, major energy producing
countries, and other governments seeking to advance global energy security
through reliable and sustainable means.
(4)The United States
Government participates in hundreds of bilateral and multilateral energy
agreements and activities with foreign governments and entities. These
agreements and activities should reflect the strategic need for energy
security.
(b)It is the policy of the United States—
(1)to advance global
energy security through cooperation with foreign governments and
entities;
(2)to promote
reliable, diverse, and sustainable sources of all types of energy;
(3)to increase
global availability of renewable and clean sources of energy;
(4)to decrease
global dependence on oil and natural gas energy sources; and
(5)to engage in
energy cooperation to strengthen strategic partnerships that advance peace,
security, and democratic prosperity.
(c)The
Secretary of State, in coordination with the Secretary of Energy, should
immediately seek to establish and expand strategic energy partnerships with the
governments of major energy producers and major energy consumers, and with
governments of other countries (but excluding any countries that are ineligible
to receive United States economic or military assistance).
(d)The
purposes of the strategic energy partnerships established pursuant to
subsection (c) are—
(1)to strengthen
global relationships to promote international peace and security through
fostering cooperation in the energy sector on a mutually beneficial basis in
accordance with respective national energy policies;
(2)to promote the
policy set forth in subsection (b), including activities to advance—
(A)the mutual
understanding of each country’s energy needs, priorities, and policies,
including interparliamentary understanding;
(B)measures to
respond to acute energy supply disruptions, particularly in regard to petroleum
and natural gas resources;
(C)long-term
reliability and sustainability in energy supply;
(D)the safeguarding
and safe handling of nuclear fuel;
(E)human and
environmental protection;
(F)renewable energy
production;
(G)access to
reliable and affordable energy for underdeveloped areas;
(H)appropriate
commercial cooperation;
(I)information
reliability and transparency; and
(J)research and
training collaboration;
(3)to advance the
national security priority of developing sustainable and clean energy sources,
including through research and development related to, and deployment
of—
(A)renewable
electrical energy sources, including biomass, wind, and solar;
(B)renewable
transportation fuels, including biofuels;
(C)clean coal
technologies;
(D)carbon
sequestration, including in conjunction with power generation, agriculture, and
forestry; and
(E)energy and fuel
efficiency, including hybrids and plug-in hybrids, flexible fuel, advanced
composites, hydrogen, and other transportation technologies; and
(4)to provide
strategic focus for current and future United States Government activities in
energy cooperation to meet the global need for energy security.
(e)In general, the specific agenda with respect to a
particular strategic energy partnership shall be determined by the Secretary of
State in consultation with the Secretary of Energy.
(f)Use of current
agreements to establish partnershipsSome or all of the purposes
of the strategic energy partnerships established under subsection (c) may be
pursued through existing bilateral or multilateral agreements and activities.
Such agreements and activities shall be subject to the reporting requirements
in subsection (g).
(g)
(1)Not later than 180 days after the date of the
enactment of this Act, the Secretary of State shall submit to the appropriate
congressional committees a report on progress made in developing the strategic
energy partnerships authorized under this section.
(2)
(A)Not later than one year after the date of the enactment
of this Act, and annually thereafter for 20 years, the Secretary of State shall
submit to the appropriate congressional committees an annual report on
agreements entered into and activities undertaken pursuant to this section,
including international environment activities.
(B)Each
report submitted under this paragraph shall include details on—
(i)agreements and
activities pursued by the United States Government with foreign governments and
entities, the implementation plans for such agreements and progress measurement
benchmarks, United States Government resources used in pursuit of such
agreements and activities, and legislative changes recommended for improved
partnership; and
(ii)polices and
actions in the energy sector of partnership countries pertinent to United
States economic, security, and environmental interests.
5.International
energy crisis response mechanisms
(a)Congress
makes the following findings:
(1)Cooperation
between the United States Government and governments of other countries during
energy crises promotes the national security of the United States.
(2)The participation
of the United States in the International Energy Program established under the
Agreement on an International Energy Program, done at Paris November 18, 1974
(27 UST 1685), including in the coordination of national strategic petroleum
reserves, is a national security asset that—
(A)protects the
consumers and the economy of the United States in the event of a major
disruption in petroleum supply;
(B)maximizes the
effectiveness of the United States strategic petroleum reserve through
cooperation in accessing global reserves of various petroleum products;
(C)provides market
reassurance in countries that are members of the International Energy Program;
and
(D)strengthens
United States Government relationships with members of the International Energy
Program.
(3)The International
Energy Agency projects that the largest growth in demand for petroleum
products, other than demand from the United States, will come from China and
India, which are not members of the International Energy Program. The
Governments of China and India vigorously pursue access to global oil reserves
and are attempting to develop national petroleum reserves. Participation of the
Governments of China and India in an international petroleum reserve mechanism
would promote global energy security, but such participation should be
conditional on the Governments of China and India abiding by customary
petroleum reserve management practices.
(4)In the Western
Hemisphere, only the United States and Canada are members of the International
Energy Program. The vulnerability of most Western Hemisphere countries to
supply disruptions from political, natural, or terrorism causes may introduce
instability in the hemisphere and can be a source of conflict, despite the
existence of major oil reserves in the hemisphere.
(5)Countries that
are not members of the International Energy Program and are unable to maintain
their own national strategic reserves are vulnerable to petroleum supply
disruption. Disruption in petroleum supply and spikes in petroleum costs could
devastate the economies of developing countries and could cause internal or
interstate conflict.
(6)The involvement
of the United States Government in the extension of international mechanisms to
coordinate strategic petroleum reserves and the extension of other emergency
preparedness measures should strengthen the current International Energy
Program.
(b)Energy crisis
response mechanisms with india and china
(1)The
Secretary of State, in coordination with the Secretary of Energy, should
immediately seek to establish a petroleum crisis response mechanism or
mechanisms with the Governments of China and India.
(2)The
mechanism or mechanisms established under paragraph (1) should include—
(A)technical
assistance in the development and management of national strategic petroleum
reserves;
(B)agreements for
coordinating drawdowns of strategic petroleum reserves with the United States,
conditional upon reserve holdings and management conditions established by the
Secretary of Energy;
(C)emergency demand
restraint measures;
(D)fuel switching
preparedness and alternative fuel production capacity; and
(E)ongoing demand
intensity reduction programs.
(3)Use of existing
agreements to establish mechanismThe Secretary may, after
consultation with Congress and in accordance with existing international
agreements, include China and India in a petroleum crisis response mechanism
through existing or new multilateral or bilateral agreements.
(c)Energy crisis
response mechanism for the western hemisphere
(1)The
Secretary of State, in coordination with the Secretary of Energy, should
immediately seek to establish a Western Hemisphere energy crisis response
mechanism.
(2)The
mechanism established under paragraph (1) should include—
(A)an information
sharing and coordinating mechanism in case of energy supply emergencies;
(B)technical
assistance in the development and management of national strategic petroleum
reserves within countries of the Western Hemisphere;
(C)technical
assistance in developing national programs to meet the requirements of
membership in a future international energy application procedure as described
in subsection (d);
(D)emergency demand
restraint measures;
(E)fuel switching
preparedness and alternative fuel production capacity; and
(F)ongoing demand
intensity reduction programs.
(3)The
Secretary should seek to include in the Western Hemisphere energy crisis
response mechanism membership for each major energy producer and major energy
consumer in the Western Hemisphere and other members of the Hemisphere Energy
Cooperation Forum authorized under section 6.
(d)International
energy program application procedure
(1)The
President should place on the agenda for discussion at the Governing Board of
the International Energy Agency, as soon as practicable, the merits of
establishing an international energy program application procedure.
(2)The
purpose of such procedure is to allow countries that are not members of the
International Energy Program to apply to the Governing Board of the
International Energy Agency for allocation of petroleum reserve stocks in times
of emergency on a grant or loan basis. Such countries should also receive
technical assistance for, and be subject to, conditions requiring development
and management of national programs for energy emergency preparedness,
including demand restraint, fuel switching preparedness, and development of
alternative fuels production capacity.
(e)
(1)Not later than 180 days after the date of the enactment
of this Act, the Secretary of Energy shall submit to the appropriate
congressional committees a report that evaluates the options for adapting the
United States national strategic petroleum reserve and the international
petroleum reserve coordinating mechanism in order to carry out this
section.
(2)Crisis response
mechanismsNot later than 180 days after the date of the
enactment of this Act, the Secretary of State, in coordination with the
Secretary of Energy, shall submit to the appropriate congressional committees a
report on the status of the establishment of the international petroleum crisis
response mechanisms described in subsections (b) and (c). The report shall
include recommendations of the Secretary of State and the Secretary of Energy
for any legislation necessary to establish or carry out such mechanisms.
(3)Emergency
application procedureNot later than 60 days after a discussion
by the Governing Board of the International Energy Agency of the application
procedure described under subsection (d), the President should submit to
Congress a report that describes—
(A)the actions the
United States Government has taken pursuant to such subsection; and
(B)a summary of the
debate on the matter before the Governing Board of the International Energy
Agency, including any decision that has been reached by the Governing Board
with respect to the matter.
6.Hemisphere
energy cooperation forum
(a)Congress
makes the following findings:
(1)The engagement of
the United States Government with governments of countries in the Western
Hemisphere is a strategic priority for reducing the potential for tension over
energy resources, maintaining and expanding reliable energy supplies, expanding
use of renewable energy, and reducing the detrimental effects of energy import
dependence within the hemisphere. Current energy dialogues should be expanded
and refocused as needed to meet this challenge.
(2)Countries of 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 relationships among
countries of the hemisphere. The Western Hemisphere is rich in natural
resources, including biomass, oil, natural gas, coal, and has significant
opportunity for production of renewable hydro, solar, wind, and other energies.
Countries of the Western Hemisphere can provide convenient and reliable markets
for trade in energy goods and services.
(3)Development of
sustainable energy alternatives in the countries of the Western Hemisphere can
improve energy security, balance of trade, and environmental quality and
provide markets for energy technology and agricultural products. Brazil and the
United States have led the world in the production of ethanol, and deeper
cooperation on biofuels with other countries of the hemisphere would extend
economic and security benefits.
(4)Private sector
partnership and investment in all sources of energy is critical to providing
energy security in the Western Hemisphere.
(b)Hemisphere
energy cooperation forum
(1)The
Secretary of State, in coordination with the Secretary of Energy, should
immediately seek to establish a regional-based ministerial forum to be known as
the Hemisphere Energy Cooperation Forum.
(2)The
Hemisphere Energy Cooperation Forum should seek—
(A)to strengthen
relationships between the United States and other countries of the Western
Hemisphere through cooperation on energy issues;
(B)to enhance
cooperation between major energy producers and major energy consumers in the
Western Hemisphere, particularly among the governments of Brazil, Canada,
Mexico, the United States, and Venezuela;
(C)to ensure that
energy contributes to the economic, social, and environmental enhancement of
the countries of the Western Hemisphere;
(D)to provide an
opportunity for open dialogue and joint commitments between member governments
and with private industry; and
(E)to provide
participating countries the flexibility necessary to cooperatively address
broad challenges posed to the energy supply of the Western Hemisphere that are
practical in policy terms and politically acceptable.
(3)The
Hemisphere Energy Cooperation Forum should implement the following
activities:
(A)An Energy Crisis
Initiative that will establish measures to respond to temporary energy supply
disruptions, including through—
(i)strengthening
sea-lane and infrastructure security;
(ii)implementing a
real-time emergency information sharing system;
(iii)encouraging
members to have emergency mechanisms and contingency plans in place; and
(iv)establishing a
Western Hemisphere energy crisis response mechanism as authorized under section
5(c).
(B)An Energy
Sustainability Initiative to facilitate long-term supply security through
fostering reliable supply sources of fuels, including development, deployment,
and commercialization of technologies for sustainable renewable fuels within
the region, including activities that—
(i)promote
production and trade in sustainable energy, including energy from
biomass;
(ii)facilitate
investment, trade, and technology cooperation in energy infrastructure,
petroleum products, natural gas (including liquefied natural gas), energy
efficiency (including automotive efficiency), clean fossil energy, renewable
energy, and carbon sequestration;
(iii)promote
regional infrastructure and market integration;
(iv)develop
effective and stable regulatory frameworks;
(v)develop renewable
fuels standards and renewable portfolio standards;
(vi)establish
educational training and exchange programs between member countries; and
(vii)identify and
remove barriers to trade in technology, services, and commodities.
(C)An Energy for
Development Initiative to promote energy access for underdeveloped areas
through energy policy and infrastructure development, including activities
that—
(i)increase access
to energy services for the poor;
(ii)improve energy
sector market conditions;
(iii)promote rural
development though biomass energy production and use;
(iv)increase
transparency of, and participation in, energy infrastructure projects;
(v)promote
development and deployment of technology for clean and sustainable energy
development, including biofuel and clean coal technologies; and
(vi)facilitate use
of carbon sequestration methods in agriculture and forestry and linking
greenhouse gas emissions reduction programs to international carbon
markets.
(c)Hemisphere
energy industry group
(1)The
Secretary of State, in coordination with the Secretary of Commerce and the
Secretary of Energy, should approach the governments of other countries in the
Western Hemisphere to seek cooperation in establishing a Hemisphere Energy
Industry Group, to be coordinated by the United States Government, involving
industry representatives and government representatives from the Western
Hemisphere.
(2)The
purpose of the forum should be to increase public-private partnerships, foster
private investment, and enable countries of the Western Hemisphere to devise
energy agendas compatible with industry capacity and cognizant of industry
goals.
(3)Topics for the forum should include—
(A)promotion of a
secure investment climate;
(B)development and
deployment of biofuels and other alternative fuels and clean electrical
production facilities, including clean coal and carbon sequestration;
(C)development and
deployment of energy efficient technologies and practices, including in the
industrial, residential, and transportation sectors;
(D)investment in oil
and natural gas production and distribution;
(E)transparency of
energy production and reserves data;
(F)research
promotion; and
(G)training and
education exchange programs.
(d)The Secretary of State, in coordination with the Secretary
of Energy, shall submit to the appropriate congressional committees an annual
report on the implementation of this section, including the strategy and
benchmarks for measurement of progress developed under this section.
7.Appropriate
congressional committees definedIn this Act, the term appropriate
congressional committees means the Committee on Foreign Relations and
the Committee on Energy and Natural Resources of the Senate and the Committee
on International Relations and the Committee on Energy and Commerce of the
House of Representatives.