1.Short
title; table of contents
(a)This Act may be cited
as the Western Hemisphere Energy
Compact
.
(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. International agricultural extension
programs.
Sec. 7. Biofuels feasibility studies.
Sec. 8. Regional development banks.
Sec. 9. Carbon credit trading mechanisms.
Sec. 10. Energy crisis response preparedness.
Sec. 11. Energy foreign assistance.
Sec. 12. Energy public diplomacy.
Sec. 13. Report.
2.Congress makes the following
findings:
(1)The engagement of
the United States Government on energy issues with governments of willing
countries in the Western Hemisphere is a strategic priority because such
engagement can help to—
(A)reduce the
potential for conflict over energy resources;
(B)maintain and
expand reliable energy supplies;
(C)expand the use of
renewable energy; and
(D)reduce the
detrimental effects of energy import dependence.
(2)Several nations
in the Western Hemisphere, including Brazil, Canada, Mexico, the United States,
and Venezuela, are important for global energy security and climate change
mitigation.
(3)Current energy
dialogues and agreements should be expanded and refocused, as needed, to meet
the challenges described in paragraph (1).
(4)Countries in the
Western Hemisphere can most effectively meet their common needs for energy
security and sustainability through partnership and cooperation. Cooperation
between governments on energy issues will enhance bilateral and regional
relationships among countries in the Western Hemisphere. The Western Hemisphere
is rich in natural resources, including biomass, oil, natural gas, and coal,
and there are significant opportunities for the production of renewable energy,
including hydroelectric, solar, geothermal, and wind power. Countries in the
Western Hemisphere can provide convenient and reliable markets for their own
energy needs and for foreign trade in energy goods and services.
(5)Development of
sustainable energy alternatives in countries in the Western Hemisphere can
improve energy security, balance of trade, and environmental quality, and can
provide markets for energy technology and agricultural products.
(6)Brazil and the
United States have led the world in the production of ethanol. Deeper
cooperation on biofuels with other countries in the hemisphere would extend
economic, security, and political benefits. The Government of the United States
has actively worked with the Government of Brazil to develop a strong biofuels
partnership and to increase the production and use of biofuels. On March 9,
2007, the Memorandum of Understanding Between the United States and Brazil to
Advance Cooperation on Biofuels was signed in Sao Paulo, Brazil.
(7)Private sector
partnership and investment in all sources of energy is critical to providing
energy security in the Western Hemisphere. Several countries in the Western
Hemisphere have endangered their investment climate. Other countries in the
Western Hemisphere have been unable to make reforms necessary to create
investment climates necessary to increase the domestic production of
energy.
(8)It is the policy
of the United States to promote free trade in energy among countries in the
Western Hemisphere, which would—
(A)help support a
growing energy industry;
(B)create jobs that
benefit development and alleviate poverty;
(C)increase energy
security through supply diversification; and
(D)strengthen
integration among countries in the Western Hemisphere through closer
cooperation.
3.In this Act:
(1)The
term biofuel means any liquid fuel that is derived from
biomass.
(2)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)The term partner country means a country
that has agreed to conduct a biofuels feasibility study under section 7.
(4)Regional
development bankThe term regional development bank
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)The
Secretary of State, in coordination with the Secretary of Energy, shall seek to
establish a ministerial forum with countries in the Western Hemisphere to be
known as the Western Hemisphere Energy Cooperation Forum (in this subsection
referred to as the Energy Forum
).
(b)The
purposes of the Energy Forum shall be to—
(1)strengthen
relationships between countries of the Western Hemisphere through cooperation
on energy issues;
(2)enhance
cooperation, including information and technology cooperation, between major
energy producers and major energy consumers in the Western Hemisphere;
(3)explore
possibilities for countries in the Western Hemisphere to work together to
promote renewable energy production (particularly in biofuels) and to lessen
dependence on oil imports without reducing food security;
(4)ensure the energy
supply is sufficient to facilitate continued economic, social, and
environmental progress in the countries of the Western Hemisphere;
(5)provide an
opportunity for open dialogue and joint commitments among partner countries and
with private industry;
(6)provide partner
countries the flexibility necessary to cooperatively address broad challenges
posed to the energy supply of the Western Hemisphere and to find solutions that
are politically acceptable and practical in policy terms; and
(7)improve
transparency in the energy sector.
(c)The
Secretary of State, together with the Secretary of Energy, shall seek to
implement, in cooperation with partner countries—
(1)an energy crisis
initiative that will promote national and regional measures to respond to
temporary energy supply disruptions, including participation in a Western
Hemisphere energy crisis response mechanism in accordance with section
9(b);
(2)an energy
sustainability initiative to facilitate the long-term security of the energy
supply by fostering reliable sources of energy and improved energy efficiency,
including—
(A)developing,
deploying, and commercializing technologies for producing sustainable renewable
energy within the Western Hemisphere;
(B)promoting
production and trade in sustainable energy, including energy from
biomass;
(C)facilitating
investment, trade, and technology cooperation in energy infrastructure,
petroleum products, natural gas (including liquefied natural gas), and energy
efficiency (including automotive efficiency), cleaner fossil energy, renewable
energy, and carbon sequestration technologies;
(D)promoting
regional infrastructure and market integration;
(E)developing
effective and stable regulatory frameworks;
(F)developing policy
instruments to encourage the use of renewable energy and improved energy
efficiency;
(G)establishing
educational training and exchange programs between partner countries;
(H)identifying and
removing barriers to trade in technology, services, and commodities;
(I)promoting
dialogue and common measures of environmental sustainability for energy
practices; and
(J)mapping potential
energy resources from hydrocarbons, hydrokinetic, solar, wind, biomass, and
geothermal;
(3)an energy for
development initiative to promote energy access for underdeveloped areas
through energy policy and infrastructure development, including—
(A)increasing access
to energy services for the poor;
(B)improving energy
sector market conditions;
(C)promoting rural
development though biomass and other renewable energy production and
use;
(D)increasing
transparency of, and participation in, energy infrastructure projects;
(E)promoting
development and deployment of technology for clean and sustainable energy
development, including biofuel and clean coal technologies;
(F)facilitating the
use of carbon sequestration methods in agriculture and forestry, including
facilitating participation in international carbon markets; and
(G)developing
microenergy opportunities;
(4)a climate change
mitigation and adaptation initiative, including activities such as—
(A)coordinating
regional public and private partnerships for greenhouse gas reduction;
(B)identifying
opportunities and facilitating mechanisms for forest preservation and
reclamation;
(C)sharing best
practices in energy policy formulation and execution;
(D)identifying areas
at severe risk for climate change, such as drought, flooding, and other
environmental phenomena that could lead to crisis;
(E)identifying areas
in need of agricultural innovation to prepare for climate change, including
using biotechnology where appropriate; and
(F)cataloging
greenhouse gas emissions in the Western Hemisphere, including private sector
reporting; and
(5)the increase use
of biofuels based on the studies provided by each partner country under section
7.
(d)It
is the sense of Congress that—
(1)all partner
countries should meet at least once every year;
(2)partner countries
should meet on a subregional basis, as needed; and
(3)civil society,
indigenous populations, and private industry representatives should be integral
to the activities of the Energy Forum.
(e)Western
hemisphere energy industry group
(1)The
Secretary of State, in coordination with the Secretary of Commerce and the
Secretary of Energy, shall seek to establish a Western Hemisphere Energy
Industry Group (in this subsection referred to as the Energy
Group
) within the Energy Forum. The Energy Group should include
representatives from industry and governments in the Western Hemisphere.
(2)The
purposes of the Energy Group are to—
(A)increase
public-private partnerships;
(B)foster private
investment;
(C)enable countries
in the Western Hemisphere to devise energy agendas that are compatible with
industry capacity and cognizant of industry goals; and
(D)promote
transparency in financial flows in the extractive industries in accordance with
the principles of the Extractive Industries Transparency Initiative.
(3)It is the sense of Congress that the Energy Group
should—
(A)promote a secure
investment climate;
(B)research and
deploy biofuels and other alternative fuels and clean electrical production
facilities, including clean coal and carbon capture and storage;
(C)develop and
deploy energy efficient technologies and practices in the industrial,
residential, and transportation sectors;
(D)invest in oil and
natural gas production and distribution;
(E)maintain
transparency of data relating to energy production, trade, consumption, and
reserves;
(F)promote biofuels
research; and
(G)establish
training and education exchange programs.
(f)Oil and natural
gas working group
(1)The
Secretary of State and the Secretary of Energy shall seek to establish an Oil
and Gas Working Group within the Energy Forum or the Energy Group.
(2)The
purpose of the Oil and Gas Working Group shall be to strengthen dialogue
between international oil companies, national oil companies, and civil society
groups on issues relating to international standards on transparency, social
responsibility, and best practices in leasing and management of oil and natural
gas projects.
(g)There
are authorized to be appropriated to the Secretary of State $6,000,000 for
fiscal year 2010 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 in the
Western Hemisphere, giving preference to those countries that are among the
poorest and most dependent on petroleum imports, including—
(A)coordinating the
biofuels feasibility studies described in section 7;
(B)collaborating on
policy and regulatory measures to—
(i)promote domestic
biofuels production and use, including related agricultural and environmental
measures;
(ii)reform the
transportation sector to increase the use of biofuels, increase efficiency,
reduce emissions, and integrate the use of advanced technologies; and
(iii)reform fueling
infrastructure to allow for the 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 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)Authorization
of appropriationsThere are authorized to be appropriated to the
Secretary of State $6,000,000 for fiscal year 2010 to carry out this
section.
6.International
agricultural extension programs
(a)The Secretary of
Agriculture shall work with the Government of Brazil, the Government of Canada,
and other governments of partner countries, to facilitate joint agricultural
extension activities related to biofuels crop production, biofuels production,
and the measurement and reduction of greenhouse gas emissions.
(b)The Secretary of Energy, in coordination with the
Secretary of State and the Secretary of Agriculture, 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.
(c)
(1)Authorization
of appropriationsThere are authorized to be appropriated for
fiscal year 2010—
(A)to the Secretary
of Agriculture, $10,000,000 to carry out subsection (a); and
(B)to the Secretary
of Energy, $14,000,000 to carry out subsection (b).
(2)Supplemental
funding sourcesThe Secretary of State shall work with the
Government of Brazil, the government of each partner country, 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 7.
7.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
each 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
impact of any existing biofuels 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 demand
for heat, electricity, and transportation;
(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 the biofuels
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 partner 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 systemsBased on the assessments described
in subsections (c) and (d), the study for each partner country shall—
(1)analyze available
technologies and systems for using biofuels in the country, including—
(A)converting
biomass crops and agroforestry residues into pellets and briquettes;
(B)using
low-pollution stoves;
(C)engaging in
biogas production;
(D)engaging in
charcoal and activated coal production;
(E)engaging in
biofuels production;
(F)using combustion
and co-combustion technologies; and
(G)using biofuels
technologies in various geographic regions;
(2)analyze the
economic viability of biomass technologies in the country; and
(3)compare the
technologies and systems in the country relating to biofuels with the
technologies and systems for conventional energy supplies to determine if
biofuels technology is cost-effective, low-maintenance, and socially
acceptable, and the impact of biofuels on economic development.
(f)The study conducted by each partner country under
subsection (a) shall assess—
(1)the probable
environmental impact of increased biomass harvesting and production, and
biofuels production and use; and
(2)the availability
of financing for biofuels from global carbon credit trading mechanisms.
(g)The study conducted by each partner country under
subsection (a) shall assess the potential impact on food stocks and prices in
the partner country.
(h)Development of
policy options To promote biofuels production and use
(1)The study conducted by each partner country under
subsection (a) shall identify and evaluate policy options to promote biofuels
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 in the
country.
(2)In
conducting the evaluation under paragraph (1), the partner country shall
provide for participation of local, national, and international public, civil
society, and private institutions that have responsibility or expertise in
biofuels production and use.
(3)The study shall address with respect to the partner
country—
(A)the potential of
biomass in the country and the barriers to the production of biofuels from such
biomass products;
(B)the strategies
for creating a market for biomass products;
(C)the potential
contribution biofuels have in reducing fossil fuel consumption;
(D)environmental
sustainability issues and policy options and the mitigating effect on carbon
emissions of increased biofuels production;
(E)the potential
contribution biofuels have on 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 biofuels production and
use;
(H)the potential for
technological collaboration and joint ventures for biofuels and the
technological, cultural, and legal barriers that may impede such collaboration
and joint ventures; 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 appropriationsThere is authorized to be appropriated to the
Secretary of State $20,000,000 for fiscal year 2010 to carry out this
section.
8.Regional
development banksThe
Secretary of the Treasury shall instruct the United States Executive Director
to each regional development bank and inform the public that it is the policy
of the United States that assistance provided by such bank should encourage
development of renewable energy sources, including energy derived from biomass.
In coordination with the Secretary of State and the Secretary of Energy, the
Secretary of the Treasury shall provide information regarding progress in the
development of renewable energy sources, including energy derived from biomass.
The information shall be included in the annual report to Congress required by
section 13 on the implementation of this Act.
9.Carbon credit
trading mechanisms
(a)The Secretary of State shall work with interested
governments in the Western Hemisphere and other countries to facilitate
regional and hemispheric carbon trading mechanisms consistent with the United
Nations Framework Convention on Climate Change and existing trade and financial
agreements to—
(1)establish credits
for the preservation of tropical forests;
(2)use greenhouse
gas-reducing agricultural 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 is authorized to be appropriated to the
Secretary of State $10,000,000 for fiscal year 2010 to carry out this
section.
10.Energy crisis
response preparedness
(a)Congress
makes the following findings:
(1)Cooperation
between the United States Government and the governments of other countries
during an energy crisis promotes the national security of the United States and
of the other countries.
(2)Credible
contingency plans to respond to energy shortages may serve as a deterrent 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)Regional and
international agreements for the management of energy emergencies in the
Western Hemisphere 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 (in this subsection referred to as the
mechanism
).
(2)The
mechanism established under paragraph (1) shall include—
(A)real-time
information sharing and a coordination mechanism to respond to energy supply
emergencies in the Western Hemisphere;
(B)technical
assistance in the development and management of national and regional strategic
energy reserves in the Western Hemisphere;
(C)the promotion of
increased energy infrastructure integration between countries in the Western
Hemisphere;
(D)emergency demand
restraint measures in the Western Hemisphere;
(E)the development
of the ability of countries in the Western Hemisphere to switch energy sources
and to switch to alternative energy production capacity;
(F)energy demand
intensity reduction programs as measured by energy consumption per unit of
economic activity; and
(G)measures to
strengthen sea lanes and infrastructure security in the Western
Hemisphere.
(3)The
Secretary shall seek to include in the mechanism each major energy producer and
major energy consumer in the Western Hemisphere and other members of the Energy
Forum established pursuant to section 4(a).
(4)The
Secretary of Energy shall—
(A)conduct a study
of supply vulnerability relating to natural gas in the Western Hemisphere;
and
(B)submit a report
to the Committee on Foreign Relations and the Committee on Energy and Natural
Resources of the Senate and the Committee on Foreign Affairs and the Committee
on Energy and Commerce of the House of Representatives 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 to the
Secretary of Energy $10,000,000 for fiscal year 2010 to carry out this
section.
11.Energy foreign
assistance
(a)The Administrator of the United States Agency for
International Development (in this section referred to as the
Administrator
) shall seek to increase United States foreign
assistance for renewable energy, including assistance for activities to reduce
dependence on imported energy by switching to biofuels.
(b)Development
strategy reviewThe Administrator shall—
(1)review country
assistance strategies and make recommendations to increase assistance for
renewable energy activities; and
(2)submit the
results of the review conducted under paragraph (1) to the Committee on Foreign
Relations and the Committee on Energy and Natural Resources of the Senate and
the Committee on Foreign Affairs and the Committee on Energy and Commerce of
the House of Representatives 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. Applications for grants shall be submitted in such form and in such
manner as the Administrator determines and grants shall be awarded on an
expedited basis upon approval of the application.
(2)Authorization
of appropriationsThere is authorized to be appropriated to the
United States Agency for International Development $10,000,000 to provide
grants under this subsection.
12.
(a)Authorization
of appropriationsThere is authorized to be appropriated to the
Secretary of State $5,000,000 for public diplomacy activities relating to
renewable energy in the Western Hemisphere.
(b)Not
less than 50 percent of any amount appropriated pursuant to paragraph (1) shall
be used for education activities implemented through civil society
organizations.
13.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.