[Congressional Record Volume 155, Number 44 (Thursday, March 12, 2009)]
[Senate]
[Pages S3079-S3082]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 587. A bill to establish a Western Hemisphere Energy Cooperation 
Forum to establish partnerships with interested countries in the 
hemisphere to promote energy security through the accelerated 
development of sustainable biofuels production and energy alternatives, 
research, and infrastructure, and for other purposes; to the Committee 
on Foreign Relations.
  Mr. LUGAR. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                 S. 587

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

     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. 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.

     SEC. 2. FINDINGS.

       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

[[Page S3080]]

     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.

     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 has agreed to conduct a biofuels feasibility 
     study under section 7.
       (4) Regional development bank.--The 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.

     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 
     ministerial forum with countries in the Western Hemisphere to 
     be known as the Western Hemisphere Energy Cooperation Forum 
     (in this subsection referred to as the ``Energy Forum'').
       (b) Purposes.--The purposes of the Energy Forum shall be 
     to--
       (1) strengthen relationships between countries of the 
     Western Hemisphere through cooperation on energy issues;
       (2) enhance cooperation, including information and 
     technology cooperation, between major energy producers and 
     major energy consumers in the Western Hemisphere;
       (3) explore possibilities for countries in the Western 
     Hemisphere to work together to promote renewable energy 
     production (particularly in biofuels) and to lessen 
     dependence on oil imports without reducing food security;
       (4) ensure the energy supply is sufficient to facilitate 
     continued economic, social, and environmental progress in the 
     countries of the Western Hemisphere;
       (5) provide an opportunity for open dialogue and joint 
     commitments among partner countries and with private 
     industry;
       (6) provide partner countries the flexibility necessary to 
     cooperatively address broad challenges posed to the energy 
     supply of the Western Hemisphere and to find solutions that 
     are politically acceptable and practical in policy terms; and
       (7) improve transparency in the energy sector.
       (c) Activities.--The Secretary of State, together with the 
     Secretary of Energy, shall seek to implement, in cooperation 
     with partner countries--
       (1) an energy crisis initiative that will promote national 
     and regional measures to respond to temporary energy supply 
     disruptions, including participation in a Western Hemisphere 
     energy crisis response mechanism in accordance with section 
     9(b);
       (2) an energy sustainability initiative to facilitate the 
     long-term security of the energy supply by fostering reliable 
     sources of energy and improved energy efficiency, including--
       (A) developing, deploying, and commercializing technologies 
     for producing sustainable renewable energy within the Western 
     Hemisphere;
       (B) promoting production and trade in sustainable energy, 
     including energy from biomass;
       (C) facilitating investment, trade, and technology 
     cooperation in energy infrastructure, petroleum products, 
     natural gas (including liquefied natural gas), and energy 
     efficiency (including automotive efficiency), cleaner fossil 
     energy, renewable energy, and carbon sequestration 
     technologies;
       (D) promoting regional infrastructure and market 
     integration;
       (E) developing effective and stable regulatory frameworks;
       (F) developing policy instruments to encourage the use of 
     renewable energy and improved energy efficiency;
       (G) establishing educational training and exchange programs 
     between partner countries;
       (H) identifying and removing barriers to trade in 
     technology, services, and commodities;
       (I) promoting dialogue and common measures of environmental 
     sustainability for energy practices; and
       (J) mapping potential energy resources from hydrocarbons, 
     hydrokinetic, solar, wind, biomass, and geothermal;
       (3) an energy for development initiative to promote energy 
     access for underdeveloped areas through energy policy and 
     infrastructure development, including--
       (A) increasing access to energy services for the poor;
       (B) improving energy sector market conditions;
       (C) promoting rural development though biomass and other 
     renewable energy production and use;
       (D) increasing transparency of, and participation in, 
     energy infrastructure projects;
       (E) promoting development and deployment of technology for 
     clean and sustainable energy development, including biofuel 
     and clean coal technologies;
       (F) facilitating the use of carbon sequestration methods in 
     agriculture and forestry, including facilitating 
     participation in international carbon markets; and
       (G) developing microenergy opportunities;
       (4) a climate change mitigation and adaptation initiative, 
     including activities such as--
       (A) coordinating regional public and private partnerships 
     for greenhouse gas reduction;
       (B) identifying opportunities and facilitating mechanisms 
     for forest preservation and reclamation;
       (C) sharing best practices in energy policy formulation and 
     execution;
       (D) identifying areas at severe risk for climate change, 
     such as drought, flooding, and other environmental phenomena 
     that could lead to crisis;
       (E) identifying areas in need of agricultural innovation to 
     prepare for climate change, including using biotechnology 
     where appropriate; and
       (F) cataloging greenhouse gas emissions in the Western 
     Hemisphere, including private sector reporting; and
       (5) the increase use of biofuels based on the studies 
     provided by each partner country under section 7.
       (d) Implementation.--It is the sense of Congress that--
       (1) all partner countries should meet at least once every 
     year;
       (2) partner countries should meet on a subregional basis, 
     as needed; and
       (3) civil society, indigenous populations, and private 
     industry representatives should be integral to the activities 
     of the Energy Forum.
       (e) Western Hemisphere Energy Industry Group.--
       (1) Authority.--The Secretary of State, in coordination 
     with the Secretary of Commerce and the Secretary of Energy, 
     shall seek to establish a Western Hemisphere Energy Industry 
     Group (in this subsection referred to as the ``Energy 
     Group'') within the Energy Forum. The Energy Group should 
     include representatives from industry and governments in the 
     Western Hemisphere.
       (2) Purposes.--The purposes of the Energy Group are to--
       (A) increase public-private partnerships;
       (B) foster private investment;
       (C) enable countries in the Western Hemisphere to devise 
     energy agendas that are compatible with industry capacity and 
     cognizant of industry goals; and
       (D) promote transparency in financial flows in the 
     extractive industries in accordance with the principles of 
     the Extractive Industries Transparency Initiative.
       (3) Discussion topics.--It is the sense of Congress that 
     the Energy Group should--
       (A) promote a secure investment climate;
       (B) research and deploy biofuels and other alternative 
     fuels and clean electrical production facilities, including 
     clean coal and carbon capture and storage;
       (C) develop and deploy energy efficient technologies and 
     practices in the industrial, residential, and transportation 
     sectors;
       (D) invest in oil and natural gas production and 
     distribution;
       (E) maintain transparency of data relating to energy 
     production, trade, consumption, and reserves;
       (F) promote biofuels research; and
       (G) establish training and education exchange programs.
       (f) Oil and Natural Gas Working Group.--
       (1) Establishment.--The Secretary of State and the 
     Secretary of Energy shall seek to establish an Oil and Gas 
     Working Group within the Energy Forum or the Energy Group.
       (2) Purpose.--The purpose of the Oil and Gas Working Group 
     shall be to strengthen dialogue between international oil 
     companies, national oil companies, and civil society groups 
     on issues relating to international standards on 
     transparency, social responsibility, and best practices in 
     leasing and management of oil and natural gas projects.
       (g) Appropriation.--There are authorized to be appropriated 
     to the Secretary of State $6,000,000 for fiscal year 2010 to 
     carry out this section.

     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

[[Page S3081]]

     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 Appropriations.--There are authorized 
     to be appropriated to the Secretary of State $6,000,000 for 
     fiscal year 2010 to carry out this section.

     SEC. 6. INTERNATIONAL AGRICULTURAL EXTENSION PROGRAMS.

       (a) In General.--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) Educational Grants.--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) Funding Sources.--
       (1) Authorization of appropriations.--There 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 sources.--The 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.

     SEC. 7. 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 each 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 impact of any existing biofuels 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 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) 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 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 Systems.--Based 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) Environmental Assessment.--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) Food Security Assessment.--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) In general.--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) Coordination.--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) Principal issues.--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 Appropriations.--There is authorized 
     to be appropriated to the Secretary of State $20,000,000 for 
     fiscal year 2010 to carry out this section.

     SEC. 8. REGIONAL DEVELOPMENT BANKS.

       The 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.

     SEC. 9. CARBON CREDIT TRADING MECHANISMS.

       (a) In General.--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 Appropriations.--There is authorized 
     to be appropriated to the Secretary of State $10,000,000 for 
     fiscal year 2010 to carry out this section.

     SEC. 10. ENERGY CRISIS RESPONSE PREPAREDNESS.

       (a) Findings.--Congress makes the following findings:
       (1) Cooperation between the United States Government and 
     the governments of other countries during an energy crisis 
     promotes

[[Page S3082]]

     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) Authority.--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) Scope.--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) Membership.--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) Study.--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 Appropriations.--There is authorized 
     to be appropriated to the Secretary of Energy $10,000,000 for 
     fiscal year 2010 to carry out this section.

     SEC. 11. ENERGY FOREIGN ASSISTANCE.

       (a) In General.--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 Review.--The 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) 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. 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 appropriations.--There is authorized 
     to be appropriated to the United States Agency for 
     International Development $10,000,000 to provide grants under 
     this subsection.

     SEC. 12. ENERGY PUBLIC DIPLOMACY.

       (a) Authorization of Appropriations.--There 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) 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. 13. 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.
                                 ______