U.S. Senate to consider Brazil energy cooperation pact

September 8, 2008

BY Erin Krueger

Web exclusive posted Sept. 29, 2008 at 4:21 p.m. CST

A bill designed to strengthen energy cooperation in the Western Hemisphere was approved by the U.S. Senate Foreign Relations Committee Sept. 23. It was placed on the legislative calendar. According to the Brazilian Sugarcane Industry Association, the bill is a positive step towards expanding ongoing efforts by Brazil and the United States to promote the production and use of sustainable biofuels, such as sugarcane-based ethanol, throughout Latin America.

U.S. Senate Bill 1007, sponsored by Sen. Richard Lugar, R-Ind., expands on an existing Memorandum of Understanding signed in March 2007 by President George W. Bush and Brazilian President Luiz Inacio Lula de Silva.

The legislation directs the U.S. Secretary of the State to work with the Brazilian government, and other foreign governments, in developing partnerships that would 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.

"We have put this on the agenda because this is a time of transition in our government and we need to send the signal to the region that we remain committed to a closer and deeper relationship with the hemisphere, especially with Brazil," Lugar said. He added that renewable energy offers the greatest hope to wed energy security needs with economic growth and environmental stewardship.

The bill would establish a Western Hemisphere Energy Cooperation Forum in an effort to strengthen relations between the United States and other countries within the western hemisphere. It would also direct the U.S. government to implement an energy crisis initiative that would promote the creation of measures to respond to temporary energy supply disruptions, and would direct the U.S. Secretary of State to establish a Western Hemisphere Energy Industry Group to increase public-private partnerships and foster private investment.

If passed by Congress, the legislation also includes a directive that the U.S. Secretary of Agriculture would work with Brazil in joint agricultural biofuel extension activities and the U.S. Secretary of Energy would establish a grant program to finance advanced biofuels research and collaboration between academic and research institutions in the United States and Brazil. Tax treaty negotiations with Brazil would also be renewed.

According to a statement issued by UNICA, $58 million has been earmarked for the renewed pact.

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