110 HR 7183 IH: Western Hemisphere Energy Compact Act
U.S. House of Representatives
2008-09-27
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the
Western Hemisphere Energy Compact Act
of 2008
.
(b)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. 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.
2.Congress makes the following
findings:
(1)The engagement of the United States
Government on energy issues with the Government of Brazil and the 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)Current energy dialogues and agreements
should be expanded and refocused, as needed, to meet the challenges described
in paragraph (1).
(3)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, and
there are significant opportunities for the production of renewable energy,
including hydro, geothermal, solar, and wind. 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.
(4)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.
(5)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 São Paulo, Brazil.
(6)Brazil and the United States have led the
world in the production of ethanol. Deeper cooperation on biofuels with other
countries in the Western Hemisphere would extend economic, security, and
political benefits.
(7)The United States is committed to
developing a biofuels partnership in the Western Hemisphere that benefits the
welfare of the people of the Western Hemisphere. According to the Latin
American Energy Organization, the percentage of total energy consumption in
each of the following countries in the Western Hemisphere that originated from
imported crude oil and oil products in 2005 was—
(A)2 percent in Argentina;
(B)93 percent in Barbados;
(C)7 percent in Bolivia;
(D)13 percent in Brazil;
(E)55 percent in Chile;
(F)4 percent in Colombia;
(G)56 percent in Costa Rica;
(H)77 percent in the Dominican
Republic;
(I)20 percent in Ecuador;
(J)76 percent in El Salvador;
(K)85 percent in Grenada;
(L)72 percent in Guatemala;
(M)100 percent in Guyana;
(N)93 percent in Haiti;
(O)81 percent in Honduras;
(P)91 percent in Jamaica;
(Q)10 percent in Mexico;
(R)98 percent in Nicaragua;
(S)100 percent in Panama;
(T)46 percent in Paraguay;
(U)39 percent in Peru;
(V)34 percent in Suriname;
(W)45 percent in Trinidad and Tobago;
(X)79 percent in Uruguay; and
(Y)0 percent in Venezuela.
(8)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
the 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.
(9)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;
(D)strengthen relations among countries in the
Western Hemisphere through closer cooperation and understanding; and
(E)promote the
production and use of clean forms of energy.
3.In this Act:
(1)Appropriate
congressional committeesThe term appropriate congressional
committees means the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of the Senate.
(2)The term biofuel means any
liquid fuel that is derived from biomass.
(3)The term biomass means any
organic matter that is available on a renewable or recurring basis, including
agricultural crops, trees, wood, wood wastes and residues, plants (including
aquatic plants), grasses, residues, fibers, animal wastes, municipal wastes,
and other waste materials.
(4)The term partner country means
a country that, along with the United States and Brazil, joins the Western
Hemisphere Energy Cooperation Forum established pursuant to section 4 and has
agreed to conduct a biofuels feasibility study under section 6.
(5)Regional development banksThe term regional development
banks means the African Development Bank, the Inter-American Development
Bank, the Andean Development Corporation, the European Bank for Reconstruction
and Development, and the Asian Development Bank.
4.Western Hemisphere Energy Cooperation
Forum
(a)
(1)The Secretary of State, in coordination with the
Secretary of Energy, shall seek to establish a regional-based ministerial forum
to be known as the Western Hemisphere Energy Cooperation Forum (referred to in
this section as the Energy Forum
). The United States Government
shall initially provide the framework for the Energy Forum and shall seek to
establish a rotating chairmanship, in consultation with the Government of
Brazil.
(2)The Secretary of State, in coordination
with the Secretary of Energy, shall seek to include in the Energy Forum
membership of other countries in the Western Hemisphere.
(b)The Energy Forum should seek—
(1)to strengthen relationships between the
United States and other countries in the Western Hemisphere through cooperation
on energy issues;
(2)to enhance cooperation, including
information and technology sharing, between major energy producers and major
energy consumers in the Western Hemisphere, particularly among the Governments
of Brazil, Canada, Mexico, and the United States;
(3)to explore possibilities to work with
countries in the Western Hemisphere to promote renewable energy production
(particularly in biofuels) and to lessen dependence on oil imports without
reducing food availability (particularly in Mexico and Central American
countries);
(4)to ensure that energy contributes to the
economic, social, and environmental enhancement of the countries in the Western
Hemisphere;
(5)to provide an opportunity for open dialogue
and joint commitments among Energy Forum countries and with private industry;
and
(6)to provide participating countries the
flexibility necessary to cooperatively address broad challenges posed to the
energy supply of the Western Hemisphere to find solutions that are politically
acceptable and practical in policy terms.
(c)The United States Government shall seek to
implement, in cooperation with Energy Forum countries—
(1)an energy crisis initiative that will
promote national and regional measures to respond to temporary energy supply
disruptions, including participating in a Western Hemisphere energy crisis
response mechanism in accordance with section 9(b);
(2)an energy sustainability initiative to
facilitate long-term supply security by fostering reliable supply sources of
energy and improved energy efficiency, including—
(A)developing, deploying, and commercializing
technologies for sustainable renewable fuels within the region;
(B)promoting production and trade in
sustainable energy, including energy from biomass and other
alternatives;
(C)facilitating 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;
(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 Energy Forum countries; and
(H)identifying and removing barriers to trade
in technology, services, and commodities;
(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
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; and
(F)facilitating the use of carbon
sequestration methods in agriculture and forestry and linking greenhouse gas
emissions reduction programs to international carbon markets; and
(4)biofuels studies,
with country studies provided by each partner country, in accordance with
section 6.
(d)It is the sense of Congress that the Energy
Forum should—
(1)meet at least once every 2 years;
and
(2)meet on a subregional basis, as
needed.
(e)Western hemisphere energy industry
group
(1)The Secretary of State, in coordination
with the Secretary of Commerce and the Secretary of Energy, shall approach the
governments of other countries in the Western Hemisphere to seek cooperation in
establishing a Western Hemisphere Energy Industry Group (referred to in this
subsection as the Energy Group
) within the Western Hemisphere
Energy Cooperation Forum. The Energy Group should include representatives from
industries and governments in the Western Hemisphere.
(2)The purpose of the Energy Group should be
to—
(A)increase public-private
partnerships;
(B)foster private investment; and
(C)enable countries in the Western Hemisphere
to devise energy agendas compatible with industry capacity and cognizant of
industry goals.
(3)It is the sense of Congress that the Energy
Group should discuss—
(A)promoting a secure investment
climate;
(B)developing and deploying biofuels and other
alternative energy and clean electrical production facilities;
(C)developing and deploying energy efficient
technologies and practices in the industrial, residential, and transportation
sectors;
(D)oil and natural gas production and
distribution;
(E)maintaining transparency of energy
production, trade, consumption, and reserves data;
(F)promoting biofuels and alternative energy
research; and
(G)training and education exchange
programs.
(f)Oil and natural gas working group
(1)The United States Government shall seek
cooperation in establishing an Oil and Natural Gas Working Group (referred to
in this subsection as the Working Group
) within the Western
Hemisphere Energy Cooperation Forum or the Western Hemisphere Energy Industry
Group.
(2)The Working Group should strengthen
dialogue between international oil companies, national oil companies, and civil
society groups on issues related to international standards on transparency,
social responsibility, and best practices in leasing and management of oil and
natural gas projects.
(g)Authorization of
appropriationsThere are
authorized to be appropriated $3,000,000 for fiscal year 2009 to carry out this
section.
5.United States-Brazil biofuels
partnership
(a)The Secretary of State, in coordination
with the Secretary of Energy, shall work with the Government of Brazil
to—
(1)coordinate efforts to promote the
production and use of biofuels among countries, giving preference to those
countries that are among the poorest (as determined by the Inter-American
Development Bank) and most dependent on petroleum imports, including—
(A)coordinating the biofuels feasibility
studies described in section 6;
(B)collaborating on policy and regulatory
measures to—
(i)promote domestic biofuels production and
use, including related agricultural and environmental measures;
(ii)reform automotive sectors to incorporate
biofuels use, including increased efficiency, reduced emissions, and
integration with high-efficiency advanced technologies; and
(iii)reform fueling infrastructure to allow for
use of biofuels and other alternative energy sources;
(2)invite the European Union, China, India,
South Africa, Japan, and other interested countries to join in and expand upon
existing international efforts to promote the development of a global strategy
to create global biofuels markets and promote biofuels production and use in
developing countries;
(3)assess the feasibility of working with the
World Bank and relevant regional development banks regarding—
(A)biofuels production capabilities;
and
(B)infrastructure, research, and training
related to such capabilities; and
(4)develop a joint and coordinated strategy
regarding the construction and retrofitting of pipelines and terminals near
major fuel distribution centers, coastal harbors, and railroads.
(b)International agricultural extension
programsThe Secretary of
Agriculture shall work with the Government of Brazil to facilitate joint
agricultural extension activities related to biofuels crop production, biofuels
production, and environmental and greenhouse gas emissions reduction
practices.
(c)The Secretary of Energy, in coordination
with the Secretary of State, and in collaboration with the Government of
Brazil, shall establish a grant program to finance advanced biofuels research
and collaboration between academic and research institutions in the United
States and Brazil.
(d)Authorization of
appropriationsThere are
authorized to be appropriated for fiscal year 2009—
(1)$3,000,000 to carry out subsection
(a);
(2)$5,000,000 to carry out subsection (b);
and
(3)$7,000,000 to carry out subsection
(c).
6.Biofuels feasibility studies
(a)The Secretary of State, in consultation
with the Secretary of Energy, shall work with each partner country to conduct a
study to determine the feasibility of increasing the production and use of
biofuels in such country.
(b)Analysis of the energy policy
frameworkThe study conducted
under subsection (a) shall analyze—
(1)the energy policy of the partner country,
particularly the impact of such policy on the promotion of biofuels; and
(2)the status and impacts of any existing
biofuel programs of the country.
(c)The study conducted under subsection (a)
shall assess, with respect to the partner country—
(1)the quantitative and qualitative current
and projected demand for energy by families, villages, industries, public
transportation infrastructure, and other energy consumers;
(2)the future consumption by the heat,
electricity, and transportation sectors;
(3)the demand for high-quality transportation
fuel;
(4)the local market prices for various energy
sources; and
(5)the employment, income generation, and
rural development opportunities from biofuel industry.
(d)The study conducted under subsection (a)
shall—
(1)assess the present and future biomass
resources that are available in each geographic region of the participating
country to meet the demand assessed under subsection (c);
(2)include a plan for increasing the
availability of existing biomass resources in the country; and
(3)include a plan for developing new,
sustainable biomass resources in the country, including wood, manure,
agricultural residues, sewage, and organic waste.
(e)Analysis of available technologies and
systemsBuilding upon the
results of the assessments described in subsections (c) and (d), the study
shall—
(1)analyze available technologies and systems
for utilizing biofuels in the country, including—
(A)technologies for the conversion of biomass
crops and agroforestry residues in pellets and briquettes;
(B)low-pollution stoves;
(C)biogas production;
(D)charcoal and activated coal
production;
(E)biofuel production;
(F)combustion and co-combustion
technologies;
(G)the availability of biofuels technologies
in various geographic regions; and
(H)the economic viability of biomass
technologies; and
(2)compare such technologies and systems to
conventional energy supplies with respect to cost-effectiveness, maintenance,
social acceptability, and the impact on development.
(f)The study conducted under subsection (a)
shall assess—
(1)the likely impacts of increased biomass
harvesting and production, and biofuels production and use on environmental
sustainability, including effects on carbon emissions; and
(2)the availability of financing from global
carbon credit trading mechanisms.
(g)The study prepared by each partner country
under subsection (a) shall assess the likely impacts on food stocks and prices
in partner countries.
(h)Development of policy options To promote
biofuel production and use
(1)The study prepared by each partner country
under subsection (a) shall identify and evaluate policy options to promote
biofuel production and use, after taking into account—
(A)the existing energy policy of the country;
and
(B)the technologies available to convert local
biomass resources into biofuels.
(2)In conducting the evaluation under
paragraph (1), the partner country shall involve local, national, and
international public and private institutions with responsibility or expertise
in biofuel production and use.
(3)The study shall address—
(A)potential biomass in the country and
barriers for the production of biofuels from such biomass products;
(B)strategies for creating a market for
biomass products in the country;
(C)the potential contribution of biofuels to
reducing fossil fuel consumption in the country;
(D)environmental sustainability issues and the
mitigating effect on carbon emissions of increased biofuel production;
(E)the potential contribution of biofuels to
economic development, poverty reduction, and sustainability of energy
resources;
(F)programs for the use of biofuels in the
transportation sector;
(G)economic cooperation across international
borders to increase biofuel production and use;
(H)technology collaboration and joint ventures
and technological, cultural, and legal barriers that may impede such
technological cooperation; and
(I)the economic aspects of the promotion of
biofuels, including job creation, financing and loan mechanisms, credit
mobilization, investment capital, and market penetration.
(i)Authorization of appropriations
(1)There are authorized to be appropriated $20,000,000 for
fiscal year 2009 to carry out this section.
(2)Supplemental
funding sourcesThe Secretary of State shall work with the
Government of Brazil, the governments of partner countries, regional
development banks, the Organization of American States, and other interested
parties to identify supplemental funding sources for the studies described in
this section.
7.Multilateral development
banksIt is the sense of
Congress that the Secretary of the Treasury should instruct the United States
Executive Director at each international financial institution to which the
United States is a member to use the voice, vote, and influence of the United
States to ensure that assistance provided by the institution encourages
development of renewable energy sources, including energy derived from
biomass.
8.Carbon credit trading mechanisms
(a)The Secretary of State shall work with
interested governments in the Western Hemisphere and other countries to
organize regional and hemispheric carbon trading mechanisms under the United
Nations Framework Convention on Climate Change and existing trade and financial
agreements to—
(1)establish special carbon credits for the
preservation of tropical rain forests;
(2)use greenhouse gas-reducing farming
practices;
(3)jointly fund greenhouse gas sequestration
studies and experiments in various geological formations; and
(4)jointly fund climate mitigation studies in
vulnerable areas in the Western Hemisphere.
(b)Authorization of
appropriationsThere are
authorized to be appropriated $5,000,000 for fiscal year 2009 to carry out this
section.
9.Energy crisis response mechanism
(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 and of the cooperating countries.
(2)Credible contingency plans to respond to
energy shortages may serve as deterrents to the manipulation of energy supplies
by export and transit countries.
(3)The vulnerability of most countries in the
Western Hemisphere to supply disruptions from political, natural, or terrorism
causes may introduce instability in the Western Hemisphere and can be a source
of conflict, despite the existence of major energy resources in the Western
Hemisphere. The United States and Canada are the only members of the
International Energy Program in the Western Hemisphere.
(4)Integrating countries in the Western
Hemisphere into regional and international agreements for the management of
energy emergencies will benefit market stability and encourage development in
participating countries.
(b)Establishment of an energy crisis response
mechanism for the Western Hemisphere
(1)The Secretary of State, in coordination
with the Secretary of Energy, shall immediately seek to establish a Western
Hemisphere energy crisis response mechanism.
(2)The mechanism established under paragraph
(1) should include, as appropriate—
(A)a real-time information sharing and
coordinating mechanism to respond to energy supply emergencies;
(B)technical assistance in the development and
management of national and regional strategic reserves within the Western
Hemisphere;
(C)the promotion of increased energy
infrastructure integration between countries;
(D)emergency demand restraint measures;
(E)energy switching preparedness and
alternative energy production capacity;
(F)enhanced demand intensity reduction
programs; and
(G)measures to strengthen sea lane and
infrastructure security.
(3)The Secretary shall seek to include in the
Western Hemisphere energy crisis response mechanism membership of each major
energy producer and major energy consumer in the Western Hemisphere and other
members of the Western Hemisphere Energy Cooperation Forum established pursuant
to section 4(a).
(4)The Secretary of Energy shall—
(A)conduct a study of supply vulnerabilities
for natural gas in the Western Hemisphere; and
(B)submit a report to the appropriate
congressional committees that includes recommendations for infrastructure and
regulatory needs for reducing supply disruption vulnerability and international
coordination.
(c)Authorization of
appropriationsThere is
authorized to be appropriated $5,000,000 for fiscal year 2009 to carry out this
section.
10.Energy foreign assistance
(a)The Administrator of the United States
Agency for International Development (referred to in this section as the
Administrator
) shall seek to increase United States foreign
assistance programming in renewable energy, including in activities to reduce
energy import dependence through the use of biofuels.
(b)Development strategy reviewThe Administrator shall—
(1)review country assistance strategies to
increase assistance for renewable energy activities; and
(2)submit the results of this review to the
appropriate congressional committees not later than 180 days after the date of
the enactment of this Act.
(c)Expedited sustainable energy
grants
(1)The Administrator is authorized to award
grants to nongovernmental organizations for sustainable energy and job creation
projects in at-risk nations, such as Haiti. Grant funds shall be provided to
grantees on an expedited basis upon approval of the eligible project.
(2)Authorization of
appropriationsThere are
authorized to be appropriated $5,000,000 for fiscal year 2009 to carry out this
subsection.
11.
(a)Authorization of
appropriationsThere is
authorized to be appropriated $5,000,000 to the Department of State for public
diplomacy activities on renewable energy in the Western Hemisphere.
(b)Not less than 50 percent of any amount
appropriated pursuant to the authorizations of appropriations under paragraph
(1) shall be used for education activities implemented through civil society
organizations.
12.The Secretary of State, in consultation with
the Secretary of Energy, shall submit an annual report to the appropriate
congressional committees on the activities carried out to implement this
Act.