[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1007 Reported in Senate (RS)]






                                                      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.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``United 
States-Brazil Energy Cooperation Pact of 2007''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Definitions.
<DELETED>Sec. 4. Western Hemisphere Energy Cooperation Forum.
<DELETED>Sec. 5. United States-Brazil biofuels partnership.
<DELETED>Sec. 6. Biofuels feasibility studies.
<DELETED>Sec. 7. United States-Brazil bilateral tax treaty.
<DELETED>Sec. 8. Multilateral development banks.
<DELETED>Sec. 9. Carbon credit trading mechanisms.
<DELETED>Sec. 10. Energy crisis response mechanism.
<DELETED>Sec. 11. Energy foreign assistance.
<DELETED>Sec. 12. Energy public diplomacy.
<DELETED>Sec. 13. Energy trade.
<DELETED>Sec. 14. Western Hemisphere hydrocarbon production.
<DELETED>Sec. 15. Report.

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) The engagement of the United States Government 
        with the Government of Brazil and the governments of willing 
        countries in the Western Hemisphere and throughout the world 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. 
        Current energy dialogues and agreements should be expanded and 
        refocused, as needed, to meet this challenge.</DELETED>
        <DELETED>    (2) 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 
        has significant opportunities for the production of renewable 
        energy, including hydro, 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.</DELETED>
        <DELETED>    (3) 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.</DELETED>
        <DELETED>    (4) 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.</DELETED>
        <DELETED>    (5) Brazil and the United States have led the 
        world in the production of ethanol. Deeper cooperation on 
        biofuels with other countries of the hemisphere would extend 
        economic, security, and political benefits.</DELETED>
        <DELETED>    (6) The United States is committed to developing a 
        biofuels partnership with the Government of Brazil 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--</DELETED>
                <DELETED>    (A) 2 percent in Argentina;</DELETED>
                <DELETED>    (B) 93 percent in Barbados;</DELETED>
                <DELETED>    (C) 7 percent in Bolivia;</DELETED>
                <DELETED>    (D) 13 percent in Brazil;</DELETED>
                <DELETED>    (E) 55 percent in Chile;</DELETED>
                <DELETED>    (F) 4 percent in Colombia;</DELETED>
                <DELETED>    (G) 56 percent in Costa Rica;</DELETED>
                <DELETED>    (H) 77 percent in the Dominican 
                Republic;</DELETED>
                <DELETED>    (I) 20 percent in Ecuador;</DELETED>
                <DELETED>    (J) 76 percent in El Salvador;</DELETED>
                <DELETED>    (K) 85 percent in Grenada;</DELETED>
                <DELETED>    (L) 72 percent in Guatemala;</DELETED>
                <DELETED>    (M) 100 percent in Guyana;</DELETED>
                <DELETED>    (N) 93 percent in Haiti;</DELETED>
                <DELETED>    (O) 81 percent in Honduras;</DELETED>
                <DELETED>    (P) 91 percent in Jamaica;</DELETED>
                <DELETED>    (Q) 10 percent in Mexico;</DELETED>
                <DELETED>    (R) 98 percent in Nicaragua;</DELETED>
                <DELETED>    (S) 100 percent in Panama;</DELETED>
                <DELETED>    (T) 46 percent in Paraguay;</DELETED>
                <DELETED>    (U) 39 percent in Peru;</DELETED>
                <DELETED>    (V) 34 percent in Suriname;</DELETED>
                <DELETED>    (W) 45 percent in Trinidad and 
                Tobago;</DELETED>
                <DELETED>    (X) 79 percent in Uruguay; and</DELETED>
                <DELETED>    (Y) 0 percent in Venezuela.</DELETED>
        <DELETED>    (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 acted to endanger the rule of law necessary for 
        such investment. Other countries in the Western Hemisphere have 
        been unable to make reforms necessary to create sufficient 
        investment climates for increased domestic production of 
        energy.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Biofuel.--The term ``biofuel'' means any 
        liquid fuel that is derived from biomass.</DELETED>
        <DELETED>    (2) Biomass.--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.</DELETED>
        <DELETED>    (3) Partner country.--The term ``partner country'' 
        means a country that has agreed to conduct a biofuels 
        feasibility study under section 6.</DELETED>
        <DELETED>    (4) Regional development banks.--The 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.</DELETED>

<DELETED>SEC. 4. WESTERN HEMISPHERE ENERGY COOPERATION FORUM.</DELETED>

<DELETED>    (a) Establishment.--The Secretary of State, in 
coordination with the Secretary of Energy, shall establish a regional-
based ministerial forum to be known as the Western Hemisphere Energy 
Cooperation Forum (referred to in this subsection as the ``Energy 
Forum'').</DELETED>
<DELETED>    (b) Purposes.--The Energy Forum should seek--</DELETED>
        <DELETED>    (1) to strengthen relationships between the United 
        States and other countries of the Western Hemisphere through 
        cooperation on energy issues;</DELETED>
        <DELETED>    (2) 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;</DELETED>
        <DELETED>    (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);</DELETED>
        <DELETED>    (4) to ensure that energy contributes to the 
        economic, social, and environmental enhancement of the 
        countries of the Western Hemisphere;</DELETED>
        <DELETED>    (5) to provide an opportunity for open dialogue 
        and joint commitments among Energy Forum countries and with 
        private industry; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Activities.--The United States Government, in 
cooperation with Energy Forum countries, shall seek to implement--
</DELETED>
        <DELETED>    (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 10(b);</DELETED>
        <DELETED>    (2) an energy sustainability initiative to 
        facilitate long-term supply security by fostering reliable 
        supply sources of fuels, including--</DELETED>
                <DELETED>    (A) developing, deploying, and 
                commercializing technologies for sustainable renewable 
                fuels within the region;</DELETED>
                <DELETED>    (B) promoting production and trade in 
                sustainable energy, including energy from 
                biomass;</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (D) promoting regional infrastructure and 
                market integration;</DELETED>
                <DELETED>    (E) developing effective and stable 
                regulatory frameworks;</DELETED>
                <DELETED>    (F) developing renewable fuels standards 
                and renewable portfolio standards;</DELETED>
                <DELETED>    (G) establishing educational training and 
                exchange programs between Energy Forum countries; 
                and</DELETED>
                <DELETED>    (H) identifying and removing barriers to 
                trade in technology, services, and commodities; 
                and</DELETED>
        <DELETED>    (3) an energy for development initiative to 
        promote energy access for underdeveloped areas through energy 
        policy and infrastructure development, including--</DELETED>
                <DELETED>    (A) increasing access to energy services 
                for the poor;</DELETED>
                <DELETED>    (B) improving energy sector market 
                conditions;</DELETED>
                <DELETED>    (C) promoting rural development though 
                biomass energy production and use;</DELETED>
                <DELETED>    (D) increasing transparency of, and 
                participation in, energy infrastructure 
                projects;</DELETED>
                <DELETED>    (E) promoting development and deployment 
                of technology for clean and sustainable energy 
                development, including biofuel and clean coal 
                technologies; and</DELETED>
                <DELETED>    (F) facilitating the use of carbon 
                sequestration methods in agriculture and forestry and 
                linking greenhouse gas emissions reduction programs to 
                international carbon markets.</DELETED>
<DELETED>    (d) Implementation.--It is the sense of Congress that the 
Energy Forum--</DELETED>
        <DELETED>    (1) should meet at least once every 2 
        years;</DELETED>
        <DELETED>    (2) may meet on a subregional basis; and</DELETED>
        <DELETED>    (3) shall be co-chaired by an official of the 
        Department of State and an official of the Department of 
        Energy.</DELETED>
<DELETED>    (e) Western Hemisphere Energy Industry Group.--</DELETED>
        <DELETED>    (1) Authority.--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''). The Energy Group should be 
        coordinated by the United States Government and should include 
        representatives from industries and governments in the Western 
        Hemisphere.</DELETED>
        <DELETED>    (2) Purpose.--The purpose of the Energy Group 
        should be to--</DELETED>
                <DELETED>    (A) increase public-private 
                partnerships;</DELETED>
                <DELETED>    (B) foster private investment; 
                and</DELETED>
                <DELETED>    (C) enable countries in the Western 
                Hemisphere to devise energy agendas compatible with 
                industry capacity and cognizant of industry 
                goals.</DELETED>
        <DELETED>    (3) Discussion topics.--The Energy Group should 
        discuss--</DELETED>
                <DELETED>    (A) promoting a secure investment 
                climate;</DELETED>
                <DELETED>    (B) developing and deploying biofuels and 
                other alternative fuels and clean electrical production 
                facilities, including clean coal and carbon 
                sequestration;</DELETED>
                <DELETED>    (C) developing and deploying energy 
                efficient technologies and practices in the industrial, 
                residential, and transportation sectors;</DELETED>
                <DELETED>    (D) investing in oil and natural gas 
                production and distribution;</DELETED>
                <DELETED>    (E) maintaining transparency of energy 
                production and reserves data;</DELETED>
                <DELETED>    (F) promoting biofuels research; 
                and</DELETED>
                <DELETED>    (G) training and education exchange 
                programs.</DELETED>
<DELETED>    (f) Oil and Gas Working Group.--</DELETED>
        <DELETED>    (1) Establishment.--The Secretary of Energy, in 
        cooperation with the Secretary of State, shall facilitate the 
        establishment of the Oil and Gas Working Group.</DELETED>
        <DELETED>    (2) Purposes.--The Oil and Gas 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.</DELETED>
<DELETED>    (g) Appropriation.--There are authorized to be 
appropriated $3,000,000 to carry out this section.</DELETED>

<DELETED>SEC. 5. UNITED STATES-BRAZIL BIOFUELS PARTNERSHIP.</DELETED>

<DELETED>    (a) In General.--The Secretary of State, in coordination 
with the Secretary of Energy, shall work with the Government of Brazil 
to--</DELETED>
        <DELETED>    (1) coordinate efforts to promote the production 
        and use of biofuels among all interested countries, giving 
        preference to the countries in the Western Hemisphere that are 
        among the poorest and most dependent on foreign sources of fuel 
        (particularly oil), including--</DELETED>
                <DELETED>    (A) coordinating the biofuels feasibility 
                studies described in section 6;</DELETED>
                <DELETED>    (B) collaborating on policy and regulatory 
                measures to--</DELETED>
                        <DELETED>    (i) promote domestic biofuels 
                        production and use, including related 
                        agricultural and environmental 
                        measures;</DELETED>
                        <DELETED>    (ii) reform automotive sectors to 
                        incorporate biofuels use including increased 
                        efficiency, reduced emissions, and integration 
                        with high-efficiency advanced technologies; 
                        and</DELETED>
                        <DELETED>    (iii) reform fueling 
                        infrastructure to allow for use of biofuels and 
                        other alternative fuels;</DELETED>
        <DELETED>    (2) develop a global strategy to work with the 
        European Union, China, India, South Africa, Japan, and other 
        interested countries to create global biofuels markets and 
        promote biofuels production and use in developing 
        countries;</DELETED>
        <DELETED>    (3) assess the feasibility of working with the 
        World Bank and relevant regional development banks regarding--
        </DELETED>
                <DELETED>    (A) biofuels production capabilities; 
                and</DELETED>
                <DELETED>    (B) infrastructure, research, and training 
                related to such capabilities; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) International Agricultural Extension Programs.--The 
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.</DELETED>
<DELETED>    (c) Educational Grants.--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.</DELETED>
<DELETED>    (d) Funding Sources.--</DELETED>
        <DELETED>    (1) Authorization of appropriations.--There are 
        authorized to be appropriated for fiscal year 2008--</DELETED>
                <DELETED>    (A) $3,000,000 to carry out subsection 
                (a);</DELETED>
                <DELETED>    (B) $5,000,000 to carry out subsection 
                (b); and</DELETED>
                <DELETED>    (C) $7,000,000 to carry out subsection 
                (c).</DELETED>
        <DELETED>    (2) Supplemental funding sources.--The 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 
        biofuels feasibility studies described in section 6.</DELETED>

<DELETED>SEC. 6. BIOFUELS FEASIBILITY STUDIES.</DELETED>

<DELETED>    (a) In General.--Each partner country shall participate in 
a study to determine the feasibility of increasing the production and 
use of biofuels in such country.</DELETED>
<DELETED>    (b) Analysis of the Energy Policy Framework.--The study 
conducted under subsection (a) shall analyze--</DELETED>
        <DELETED>    (1) the energy policy of the partner country, 
        particularly the impact of such policy on the promotion of 
        biofuels; and</DELETED>
        <DELETED>    (2) the status and impacts of any existing biofuel 
        programs of the country.</DELETED>
<DELETED>    (c) Assessment of Demand.--The study conducted under 
subsection (a) shall assess, with respect to the partner country--
</DELETED>
        <DELETED>    (1) the quantitative and qualitative demand for 
        energy by families, villages, industries, public transportation 
        infrastructure, and other energy consumers;</DELETED>
        <DELETED>    (2) the current and projected future energy 
        consumption by the heat, electricity, and transportation 
        sectors;</DELETED>
        <DELETED>    (3) the demand for high-quality transportation 
        fuel;</DELETED>
        <DELETED>    (4) the local market prices for various energy 
        sources; and</DELETED>
        <DELETED>    (5) the employment, income generation, and rural 
        development opportunities from biofuel industry.</DELETED>
<DELETED>    (d) Assessment of Resources.--The study under subsection 
(a) shall--</DELETED>
        <DELETED>    (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);</DELETED>
        <DELETED>    (2) include a plan for increasing the availability 
        of existing biomass resources in the country; and</DELETED>
        <DELETED>    (3) include a plan for developing new, sustainable 
        biomass resources in the country, including wood, manure, 
        agricultural residues, sewage, and organic waste.</DELETED>
<DELETED>    (e) Analysis of Available Technologies and Systems.--
Building upon the results of the assessments described in subsections 
(c) and (d), the study shall--</DELETED>
        <DELETED>    (1) analyze available technologies and systems for 
        utilizing biofuels in the country, including--</DELETED>
                <DELETED>    (A) technologies for the conversion of 
                biomass crops and agroforestry residues in pellets and 
                briquettes;</DELETED>
                <DELETED>    (B) low-pollution stoves;</DELETED>
                <DELETED>    (C) biogas production;</DELETED>
                <DELETED>    (D) charcoal and activated coal 
                production;</DELETED>
                <DELETED>    (E) biofuel production;</DELETED>
                <DELETED>    (F) combustion and co-combustion 
                technologies;</DELETED>
                <DELETED>    (G) the availability of biofuels 
                technologies in various geographic regions; 
                and</DELETED>
                <DELETED>    (H) the economic viability of biomass 
                technologies; and</DELETED>
        <DELETED>    (2) compare such technologies and systems to 
        conventional energy supplies with respect to cost-
        effectiveness, maintenance, social acceptability, and the 
        impact on development.</DELETED>
<DELETED>    (f) Environmental Assessment.--The study under subsection 
(a) shall assess--</DELETED>
        <DELETED>    (1) the likely impacts of increased biomass 
        harvesting and production, and biofuels production and use on 
        environmental sustainability, including effects on carbon 
        emissions; and</DELETED>
        <DELETED>    (2) the availability of financing from global 
        carbon credit trading mechanisms.</DELETED>
<DELETED>    (g) Food Security Assessment.--The study under subsection 
(a) shall assess the likely impacts on food stocks and prices in 
partner countries.</DELETED>
<DELETED>    (h) Development of Policy Options To Promote Biofuel 
Production and Use.--</DELETED>
        <DELETED>    (1) In general.--The study under subsection (a) 
        shall identify and evaluate policy options to promote biofuel 
        production and use, after taking into account--</DELETED>
                <DELETED>    (A) the existing energy policy of the 
                country; and</DELETED>
                <DELETED>    (B) the technologies available to convert 
                local biomass resources into biofuels.</DELETED>
        <DELETED>    (2) Coordination.--In conducting the evaluation 
        under paragraph (1), the participating country shall involve 
        local, national, and international public and private 
        institutions with responsibility or expertise in biofuel 
        production and use.</DELETED>
        <DELETED>    (3) Principal issues.--The study shall address--
        </DELETED>
                <DELETED>    (A) potential biomass in the country and 
                barriers for the production of biofuels from such 
                biomass products;</DELETED>
                <DELETED>    (B) strategies for creating a market for 
                biomass products in the country;</DELETED>
                <DELETED>    (C) the potential contribution of biofuels 
                in the country;</DELETED>
                <DELETED>    (D) environmental sustainability issues 
                and the mitigating effect of increased biofuel 
                production and use on carbon emissions;</DELETED>
                <DELETED>    (E) the potential contribution of biofuels 
                to economic development, poverty reduction, and 
                sustainability of energy resources;</DELETED>
                <DELETED>    (F) programs for the use of biofuels in 
                the transportation sector;</DELETED>
                <DELETED>    (G) economic cooperation across 
                international borders to increase biofuel production 
                and use;</DELETED>
                <DELETED>    (H) technology collaboration and joint 
                ventures and technological, cultural, and legal 
                barriers that may impede such technological 
                cooperation; and</DELETED>
                <DELETED>    (I) the economic aspects of the promotion 
                of biofuels, including job creation, financing and loan 
                mechanisms, credit mobilization, investment capital, 
                and market penetration.</DELETED>
<DELETED>    (i) Authorization of Appropriations.--There are authorized 
to be appropriated $20,000,000 for fiscal year 2008 to carry out this 
section.</DELETED>

<DELETED>SEC. 7. UNITED STATES-BRAZIL BILATERAL TAX TREATY.</DELETED>

<DELETED>    The Secretary of State, in coordination with the Secretary 
of the Treasury, shall renew negotiations on a bilateral tax treaty 
with Brazil.</DELETED>

<DELETED>SEC. 8. MULTILATERAL DEVELOPMENT BANKS.</DELETED>

<DELETED>    The Secretary of the Treasury shall inform the managements 
of the international financial institutions and the public that it is 
the policy of the United States that assistance by such institutions 
should encourage development of renewable energy sources, including 
energy derived from biomass.</DELETED>

<DELETED>SEC. 9. CARBON CREDIT TRADING MECHANISMS.</DELETED>

<DELETED>    (a) In General.--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--</DELETED>
        <DELETED>    (1) establish special carbon credits for the 
        preservation of tropical rain forests;</DELETED>
        <DELETED>    (2) use greenhouse gas-reducing farming 
        practices;</DELETED>
        <DELETED>    (3) jointly fund greenhouse gas sequestration 
        studies and experiments in various geological formations; 
        and</DELETED>
        <DELETED>    (4) jointly fund climate mitigation studies in 
        vulnerable areas in the Western Hemisphere.</DELETED>
<DELETED>    (b) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 2008 to carry out this 
section.</DELETED>

<DELETED>SEC. 10. ENERGY CRISIS RESPONSE MECHANISM.</DELETED>

<DELETED>    (a) Findings.--Congress makes the following 
findings:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Credible contingency plans to respond to 
        energy shortages may serve as deterrents to the manipulation of 
        energy supplies by export and transit countries.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Establishment of an Energy Crisis Response Mechanism 
for the Western Hemisphere.--</DELETED>
        <DELETED>    (1) Authority.--The Secretary of State, in 
        coordination with the Secretary of Energy and the Secretary of 
        Defense, shall immediately seek to establish a Western 
        Hemisphere energy crisis response mechanism.</DELETED>
        <DELETED>    (2) Scope.--The mechanism established under 
        paragraph (1) should include--</DELETED>
                <DELETED>    (A) a real-time information sharing and 
                coordinating mechanism to respond to energy supply 
                emergencies;</DELETED>
                <DELETED>    (B) technical assistance in the 
                development and management of national and regional 
                strategic reserves within the Western 
                Hemisphere;</DELETED>
                <DELETED>    (C) technical assistance in developing 
                national programs to meet the requirements of 
                membership in the international energy application 
                procedure described in subsection (c);</DELETED>
                <DELETED>    (D) emergency demand restraint 
                measures;</DELETED>
                <DELETED>    (E) energy switching preparedness and 
                alternative energy production capacity;</DELETED>
                <DELETED>    (F) ongoing demand intensity reduction 
                programs; and</DELETED>
                <DELETED>    (G) measures to strengthen sea lane and 
                infrastructure security.</DELETED>
        <DELETED>    (3) Membership.--The Secretary shall 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 Western Hemisphere Energy Cooperation Forum established 
        pursuant to section 4(a).</DELETED>
        <DELETED>    (4) Studies.--</DELETED>
                <DELETED>    (A) Supply vulnerability study.--The 
                Secretary of Energy shall--</DELETED>
                        <DELETED>    (i) conduct a study of supply 
                        vulnerabilities for natural gas in the Western 
                        Hemisphere; and</DELETED>
                        <DELETED>    (ii) submit a report to Congress 
                        that includes recommendations for 
                        infrastructure and regulatory needs for 
                        reducing supply disruption vulnerability and 
                        international coordination.</DELETED>
                <DELETED>    (B) Coordination mechanism assessment.--
                The Secretary of Energy shall assess the feasibility of 
                developing coordination mechanisms to ensure a 
                consistent supply of biofuels, especially in the event 
                of an interruption of the oil supply.</DELETED>
<DELETED>    (c) International Energy Program Application Procedure.--
</DELETED>
        <DELETED>    (1) Authority.--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.</DELETED>
        <DELETED>    (2) Purpose.--The purpose of the procedure 
        described in paragraph (1) 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.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 2008 to carry out this 
section.</DELETED>

<DELETED>SEC. 11. ENERGY FOREIGN ASSISTANCE.</DELETED>

<DELETED>    (a) In General.--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.</DELETED>
<DELETED>    (b) Development Strategy Review.--The Administrator shall 
review country assistance strategies to increase assistance for 
renewable energy activities. Results of this review shall be reported 
to Congress no later than 180 days following passage of this 
act.</DELETED>
<DELETED>    (c) Expedited Sustainable Energy Grants.--</DELETED>
        <DELETED>    (1) Authorization.--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.</DELETED>
        <DELETED>    (2) Authorization of appropriations.--There are 
        authorized to be appropriated $5,000,000 to the United States 
        Agency for International Development for grants under this 
        subsection.</DELETED>

<DELETED>SEC. 12. ENERGY PUBLIC DIPLOMACY.</DELETED>

<DELETED>    (a) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 to the Department of State for public 
education activities on renewable energy in the Western 
Hemisphere.</DELETED>
<DELETED>    (b) Limitation.--Not less than 50 percent of any amount 
appropriated pursuant to paragraph (1) shall be used for education 
activities implemented through civil society organizations.</DELETED>

<DELETED>SEC. 13. ENERGY TRADE.</DELETED>

<DELETED>    (a) Findings.--Congress makes the following 
findings:</DELETED>
        <DELETED>    (1) It is the policy of the United States to 
        promote free trade in energy among countries in the Western 
        Hemisphere, which would--</DELETED>
                <DELETED>    (A) help support a growing energy 
                industry;</DELETED>
                <DELETED>    (B) create jobs that benefit development 
                and alleviate poverty;</DELETED>
                <DELETED>    (C) increase energy security through 
                supply diversification; and</DELETED>
                <DELETED>    (D) strengthen relations among countries 
                in the Western Hemisphere through closer cooperation 
                and understanding.</DELETED>
        <DELETED>    (2) Several countries in the Western Hemisphere, 
        including the United States, have protective tariffs and duties 
        that limit the benefits that would accrue from free trade in 
        energy. The United States Government should work with foreign 
        governments to remove trade barriers in energy.</DELETED>
        <DELETED>    (3) The United States should implement a plan to 
        open its markets to trade in biofuels. This plan should--
        </DELETED>
                <DELETED>    (A) encourage expanded investment and 
                innovation in the biofuels industry in the United 
                States; and</DELETED>
                <DELETED>    (B) revise Federal incentives for the 
                domestic production of biofuels so they do not finance 
                biofuels investment abroad.</DELETED>
<DELETED>    (b) Ethanol Tariff Study.--The Secretary of Commerce, in 
cooperation with the Secretary of State, shall conduct a study that 
evaluates--</DELETED>
        <DELETED>    (1) tariffs, duties, and other restrictions on 
        trade in biofuels in the Western Hemisphere, including the 
        United States;</DELETED>
        <DELETED>    (2) the economic impacts resulting from the 
        restrictions referred to in paragraph (1);</DELETED>
        <DELETED>    (3) the impacts on United States foreign policy 
        resulting from the restrictions referred to in paragraph 
        (1);</DELETED>
        <DELETED>    (4) the effect of restrictions referred to in 
        paragraph (1) on United States obligations to the World Trade 
        Organization;</DELETED>
        <DELETED>    (5) the probable impacts on the economy and 
        biofuels industry of the United States of--</DELETED>
                <DELETED>    (A) removing all duties and tariffs on 
                biofuels imports, beginning on January 1, 
                2009;</DELETED>
                <DELETED>    (B) removing all duties and tariffs on 
                biofuels imports and making various revisions to the 
                tax credits for ethanol production in the United 
                States, including shifting the blend credit to be a 
                producers credit and replacement of the current credit 
                with a variable credit scheme;</DELETED>
                <DELETED>    (C) removing all duties and tariffs and 
                increasing the renewable fuels standard mandate to 
                30,000,000,000 gallons by 2020 and 60,000,000,000 
                gallons by 2030, including extending the renewable 
                fuels standard, with revisions favoring the use of next 
                generation biofuels and domestic production; 
                and</DELETED>
                <DELETED>    (D) gradually removing the duties and 
                tariffs over a 5- and 10-year period; and</DELETED>
        <DELETED>    (6) the probable impacts of removing United States 
        tariffs and duties under the conditions described in paragraph 
        (5) on biofuels production, economic development, and poverty 
        alleviation in countries in the Western Hemisphere.</DELETED>
<DELETED>    (c) Ethanol Quotas.--The Secretary of Commerce shall 
conduct a study examining the likely impacts and feasibility of--
</DELETED>
        <DELETED>    (1) introducing a new, duty-free quota for 
        biofuels that is imported from countries receiving normal trade 
        relations treatment from the United States that is equal to 15 
        percent of the biofuels consumed annually in the United 
        States;</DELETED>
        <DELETED>    (2) increasing the quota in ethanol imports to the 
        United States from 7 percent to 15 percent over the next 
        several years and expanding the scope of the quota beyond 
        countries participating in the Caribbean Basin Initiative to 
        other least developed countries and to all countries who have 
        received a Millennium Challenge grant; and</DELETED>
        <DELETED>    (3) creating a separate quota for any other 
        country receiving normal trade relations treatment from the 
        United States.</DELETED>

<DELETED>SEC. 14. WESTERN HEMISPHERE HYDROCARBON PRODUCTION.</DELETED>

<DELETED>    (a) Study Partnership With Mexico.--The Secretary of 
Energy shall seek to work with the Government of Mexico to conduct a 
technical analysis of the status of Mexican oil and gas production, 
future technological and investment needs, and recommendations for 
maintaining and increasing hydrocarbon production consistent with the 
priorities of the Government of Mexico.</DELETED>
<DELETED>    (b) Natural Gas Study.--</DELETED>
        <DELETED>    (1) Study.--The Secretary of Commerce, in 
        consultation with the Secretary of Energy, shall conduct a 
        study of--</DELETED>
                <DELETED>    (A) the current state of natural gas 
                production in the Western Hemisphere; and</DELETED>
                <DELETED>    (B) future natural gas demand and supply 
                projections.</DELETED>
        <DELETED>    (2) Report.--The Secretary of Commerce shall 
        submit a report to Congress that contains recommendations for 
        the integration of the natural gas sector, including developing 
        a liquefied natural gas infrastructure.</DELETED>
<DELETED>    (c) Authorization of Appropriations.--There are authorized 
to be appropriated $1,000,000 for fiscal year 2008 to carry out this 
section.</DELETED>

<DELETED>SEC. 15. REPORT.</DELETED>

<DELETED>    The Secretary of State, in consultation with the Secretary 
of Energy, shall submit an annual report to Congress on the activities 
carried out to implement this Act.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (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. 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.

SEC. 2. FINDINGS.

    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, including biomass, oil, natural gas, and coal, and 
        there are significant opportunities for the production of 
        renewable energy, including hydro, 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 Sao Paulo, Brazil.
            (6) Brazil and the United States have led the world in the 
        production of ethanol. Deeper cooperation on biofuels with 
        other countries of the 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; and
                    (D) strengthen relations among countries in the 
                Western Hemisphere through closer cooperation and 
                understanding.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Biofuel.--The term ``biofuel'' means any liquid fuel 
        that is derived from biomass.
            (2) Biomass.--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.
            (3) Partner country.--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.
            (4) Regional development banks.--The 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.

SEC. 4. WESTERN HEMISPHERE ENERGY COOPERATION FORUM.

    (a) Establishment.--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 subsection 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.
    (b) Purposes.--The Energy Forum should seek--
            (1) to strengthen relationships between the United States 
        and other countries of 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, the United States, 
        and Venezuela;
            (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 of 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) Activities.--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 
        fuels 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;
                    (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, including biofuel and clean coal 
                technologies; 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) Implementation.--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) Authority.--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) Purpose.--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) Discussion topics.--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 fuels and clean electrical production 
                facilities, including clean coal and carbon capture and 
                storage;
                    (C) developing and deploying energy efficient 
                technologies and practices in the industrial, 
                residential, and transportation sectors;
                    (D) investing in oil and natural gas production and 
                distribution;
                    (E) maintaining transparency of energy production, 
                trade, consumption, and reserves data;
                    (F) promoting biofuels research; and
                    (G) training and education exchange programs.
    (f) Oil and Natural Gas Working Group.--
            (1) Establishment.--The United States Government shall 
        explore the establishment of the Oil and Gas Working Group 
        within the Western Hemisphere Energy Cooperation Forum or the 
        Energy Industry Group.
            (2) Purposes.--The Oil and Gas 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) Appropriation.--There are authorized to be appropriated 
$3,000,000 to carry out this section.

SEC. 5. UNITED STATES-BRAZIL BIOFUELS PARTNERSHIP.

    (a) In General.--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 
                        fuels;
            (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 Programs.--The 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) Educational Grants.--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) Funding Sources.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for fiscal year 2009--
                    (A) $3,000,000 to carry out subsection (a);
                    (B) $5,000,000 to carry out subsection (b); and
                    (C) $7,000,000 to carry out subsection (c).
            (2) Supplemental funding sources.--The 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 biofuels feasibility 
        studies described in section 6.

SEC. 6. BIOFUELS FEASIBILITY STUDIES.

    (a) In General.--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 Framework.--The 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) Assessment of Demand.--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) Assessment of Resources.--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 Systems.--Building 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) Environmental Assessment.--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) Food Security Assessment.--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) In general.--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) Coordination.--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) Principal issues.--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.--There are authorized to be 
appropriated $20,000,000 for fiscal year 2009 to carry out this 
section.

SEC. 7. MULTILATERAL DEVELOPMENT BANKS.

    The Secretary of the Treasury shall inform the managements of the 
international financial institutions and the public that it is the 
policy of the United States that assistance by such institutions should 
encourage development of renewable energy sources, including energy 
derived from biomass.

SEC. 8. CARBON CREDIT TRADING MECHANISMS.

    (a) In General.--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 Appropriations.--There is authorized to be 
appropriated $5,000,000 for fiscal year 2009 to carry out this section.

SEC. 9. ENERGY CRISIS RESPONSE MECHANISM.

    (a) Findings.--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) Authority.--The Secretary of State, in coordination 
        with the Secretary of Energy, shall immediately seek to 
        establish a Western Hemisphere energy crisis response 
        mechanism.
            (2) Scope.--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) ongoing demand intensity reduction programs; 
                and
                    (G) measures to strengthen sea lane and 
                infrastructure security.
            (3) Membership.--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) Study.--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 Appropriations.--There is authorized to be 
appropriated $5,000,000 for fiscal year 2009 to carry out this section.

SEC. 10. ENERGY FOREIGN ASSISTANCE.

    (a) In General.--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 Review.--The 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) Authorization.--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 appropriations.--There is authorized 
        to be appropriated $5,000,000 to the United States Agency for 
        International Development for grants under this subsection.

SEC. 11. ENERGY PUBLIC DIPLOMACY.

    (a) Authorization of Appropriations.--There 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) Limitation.--Not less than 50 percent of any amount 
appropriated pursuant to paragraph (1) shall be used for education 
activities implemented through civil society organizations.

SEC. 12. REPORT.

    The Secretary of State, in consultation with the Secretary of 
Energy, shall submit an annual report to Congress on the activities 
carried out to implement this Act.
                                                      Calendar No. 1044

110th CONGRESS

  2d Session

                                S. 1007

_______________________________________________________________________

                                 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.

_______________________________________________________________________

           September 23 (legislative day, September 17), 2008

                       Reported with an amendment