U.S. Energy Policy and Agenda with Latin America
HCP Policy Paper
A policy status memo focusing on US Congressional activity
By Talar Kharadjian
October, 2008
Introduction
Energy independence has become a growing and central theme in the United States, with both leading candidates for the 2008 presidential elections citing it as a major concern. Both the candidates and the Congress of the United States have identified renewable energy production as a pressing area of need for the economy as well as sustainability.
Cooperation on energy policy has also fostered U.S. relations with Latin America. When the Memorandum of Understanding (2007) was signed by Secretary of State Condoleezza Rice and Brazil Foreign Minister Celso Amorim, for example, President George Bush embarked on a seven-day tour of Latin America, making stops in Brazil, Uruguay, Guatemala, Colombia, and Mexico. In his welcoming speech for President Bush, President Lula of Brazil stated that: “We want to see biomass generating sustainable development, above all in South America, Central America, in the Caribbean and in Africa”.
Summary
Bills recently presented to the House and Senate have focused on the promotion of off shore drilling in the Continental Shelf, lifting of restrictions on renewable exploration and research, ultimately harvesting the relationship between the United States and Latin America. Some of these bills include:
- Memorandum of Understanding
- United States-Brazil Energy Cooperation Pact of 2007
- Western Hemisphere Energy Compact Act of 2008
- Domestic Offshore Energy Security Act of 2008
Legislation Details
On March 9, 2007, the Memorandum of Understanding was signed in São Paulo between Brazil and the United States, recognizing their shared interest in the development of clean, affordable, and sustainable energy sources. The memorandum establishes a partnership between the two governments in relation to biofuel technology.
The Memorandum has since then strengthened relations between the Brazilian and U.S. governments. The very first meeting between Brazilian Mines and Energy Minister Edison Lobão and United States Acting Deputy Secretary of Energy Jeffrey Kupfer took place in August 2008. In November 2008, the Brazilian government will be hosting the upcoming International Biofuels Conference.
In March 2007, Sen. Richard G. Lugar (IN) introduced the United States-Brazil Energy Cooperation Pact of 2007, which was referred to the Committee on Foreign Relations. This bill directs the establishment of the Western Hemisphere Energy Cooperation Forum, whose objective would be two-fold: (1) to strengthen U.S. relations with the Western Hemisphere through cooperation on energy issues (2) to strengthen cooperation between energy producers and consumers in the Western Hemisphere, particularly Brazil, Canada, Mexico, Venezuela, and the United States. The bill also seeks to collaborate with Brazil to expand the production and use of biofuels in the Western Hemisphere. On September 23, 2008, this bill was placed on the Senate Legislative Calendar under General Orders.
On September 27, Rep. Eliot Engel (NY) introduced the Western Hemisphere Energy Compact Act of 2008, the content of which closely resembles that of the United States-Brazil Energy Cooperation Pact of 2007. The bill’s objective is to establish the Western Hemisphere Energy Forum and to ensure the use and supply of reliable, renewable energy. Major differences between this bill and the United States-Brazil Energy Cooperation Act of 2007 include the shift to extend partnership to all South American countries.
The Domestic Offshore Energy Security Act of 2008, also known as the DOES Act, was introduced by Sen. Larry Craig (ID) in May 2008 and referred to the Committee of Energy and Natural Resources. The bill urges the authorization of travel-related transactions for travel to, from, or within Cuba in relation to the exploration or research of hydrocarbons. The act would provide American companies with the opportunity to explore Cuban waters alongside Canada, India, China, Norway, Spain, and Brazil, who are already purchasing off-shore leases for water exploration.
Conclusion
During the past few years, U.S. legislation has made it clear that the U.S. government is interested in shifting to and leading the world in the exploration and development of safe, reliable, and sustainable sources of energy. Currently, the United States and Brazil are the world’s first and second largest producers of ethanol, respectively. As such, most of past legislations have centered heavily on the partnership with Brazil. However, with the approval of the Western Hemisphere Energy Compact Act of 2008 by the U.S. Senate Foreign Relations Committee, it is now clear that the United States’ interests extend to Latin America, which possesses suitable soil and climate for growing sugarcane and other energy crops.
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