Press Release of Senator Lugar Lugar re-introduces Western Hemisphere Energy Compact in advance of meeting between U.S. and Brazil Presidents Thursday, March 12, 2009 U.S. Sen. Dick Lugar today introduced a bill that would expand energy security cooperation between the United States, Brazil and other nations in the Western Hemisphere.    “A fundamental challenge for U.S. policy in the Western Hemisphere is building partnerships that bridge nations and address fundamental issues for all countries in the region.The Western Hemisphere Energy Compact will build stronger ties and mutual benefits as pressing energy security challenges continue to mount,” Lugar said. “Our own domestic efforts to reduce dependence on oil are aided by vigorous partnership with our neighbors,” Lugar said. “During these harsh economic times, and while oil prices are low, we should put into place policies that will make our economies less vulnerable to future energy price or supply shocks.” “I commend President Obama for making it a priority to meet with Brazil’s President early in his Administration.  Brazil is a critical partner beyond our efforts in energy security. Addressing climate change, ensuring food security and bolstering the global economy are obvious shared tasks.  It is also timely given President Obama’s pledge to form an ‘Energy Partnership of the Americas’ to advance sustainable growth and clean energy, and with the Summit of the Americas in Trinidad and Tobago on April 14 fast approaching.” Lugar’s legislation would codify and expand existing U.S.-Brazil collaboration on biofuels begun under the Bush Administration in March 2007.  “A strong U.S. – Brazil energy partnership would present the opportunity for us to build a new framework of political and economic discourse devoid of unilateral dictates of the past,” Lugar said. Lugar proposed prioritizing regional engagement in a speech (http://lugar.senate.gov/energy/press/speech/brookings.cfm) at The Brookings Institution in March 2006. Lugar introduced this bill in the last Congress. The Western Hemisphere Energy Compact includes provisions that would: Establish a regional energy forum as a standing but flexible mechanism to advance energy issues and an emergency cooperation mechanism to deter political manipulation of oil trade; Undertake feasibility studies to assess each Latin American country's biofuel needs and biomass production potential, with particular emphasis on helping the poorest countries in the region that are also dependent on foreign fuel, and attention to food security and the environment; Combat energy poverty through an energy for development initiative; Expand partnership in oil and gas production; Establish a grant program for advanced biofuels research collaboration; Increase international extension services for energy crops and conservation; Promote a carbon trading system to encourage preservation of tropical rain forests in the face of growing demand for energy crops; Authorize for the appropriation of $106 million for 2009 to implement this legislation. Lugar discussed the strategic need for energy cooperation in the Western Hemisphere in a keynote speech to the 4th Annual Western Hemisphere Energy Security and Cooperation Forum at the International Development Bank on September 9, 2008 (http://lugar.senate.gov/energy/press/speech/IDB.cfm). In that speech he noted, “Three of the top four largest oil suppliers to the United States are in the Western Hemisphere—Canada, Mexico and Venezuela.  Yet even these major oil suppliers face challenges.  In Canada, tar sands oil production is yet to be reconciled with technologies to limit environmental degradation.  Mexican oil production, and hence that country’s major source of revenue, is rapidly decreasing due to political debate over international investment.  And each of us knows the perverse consequences of nationalization for oil production in Venezuela.” For more information: http://lugar.senate.gov/energy. # # #