Legislative Update

Lugar Introduces U.S.-Brazil Energy Pact
On March 28, Senator Lugar introduced a bill that would establish cooperation between the United States and Brazil for energy security in the Western Hemisphere, biofuels production, cellulosic ethanol research, and infrastructure improvements.

"Our efforts to promote alternative fuels and reduce dependence on oil will have maximum benefit through vigorous partnership abroad.  All possibilities for growth in biofuels production must be explored to decrease our 'oil addiction.'  President Bush took an important first step in this direction by signing a strategic partnership with Brazilian President Luiz Inacio Lula da Silva in Sao Paulo earlier this month.  I strongly encourage the two leaders to consider my broader approach when they meet for a second time this month at Camp David on Saturday,” Senator Lugar said.

“Giving the United States easy access to foreign ethanol supplies, even as we increase domestic production, is an essential component to meet President Bush’s target of 35 billion gallons of renewable fuels use by 2017, which cannot be met by U.S. corn ethanol alone.  U.S. corn ethanol production will peak around 14 billion gallons in 2010, experts estimate.  Reducing dependence on oil imported from unstable and often hostile regions is a foreign policy imperative,” Senator Lugar said.

“This legislation could, in short order, create a thriving Western Hemisphere biofuels marketplace that would alleviate poverty, create jobs and increase income, improve energy security, strengthen nations' independence, and protect the environment.  If implemented vigorously and expansively, this partnership would signal a transformational change in U.S. policy on Latin America, a true collaboration between North and South on an economic and security strategy that would benefit all," said Senator Lugar.

The United States-Brazil Energy Cooperation Pact of 2007 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;
• 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;
• Seek ways to help optimize Mexican oil output, which is lagging to the detriment of the region, and encourage South America to exploit fully its natural gas supplies with new pipelines and liquefied natural gas facilities;
• Call for a study of political and economic impacts of the tariff on ethanol and the impacts of repealing or modifying it; and
• Authorize to be appropriated $59 million for 2008 to implement this legislation.

Lugar, Harkin: Could we distribute ethanol via pipelines?

Senator Lugar and Sen. Tom Harkin continued their efforts to reduce America’s dependence on foreign oil by introducing legislation that would direct the U.S. Department of Energy to study the feasibility of transporting ethanol by pipeline from the Midwest to the East and West coasts. 
   
“We must explore every option for reducing our dependence on foreign oil.  Overcoming problems in moving ethanol through pipelines, as Brazil has done, is important in developing the full promise of America’s renewable fuels.  This legislation will help determine U.S. infrastructure planning and development,” Senator Lugar said.

NATO Expansion bill heads to President’s Desk

On March 26, the House of Representatives passed S.494, Senator Lugar’s bill that endorses further enlargement of the North Atlantic Treaty Organization (NATO).  The “NATO Freedom Consolidation Act of 2007” would facilitate admission of Albania, Croatia, Georgia, Macedonia, and Ukraine to NATO. 

The Senate passed Senator Lugar’s bill on March 16.  It now heads to the President for signature. 
“The goal of this bill is to reaffirm United States support for continued enlargement of NATO to democracies that are able and willing to meet the responsibilities of membership. In particular, the legislation calls for the timely admission of Albania, Croatia, Georgia, Macedonia, and Ukraine to NATO and authorizes security assistance for these countries in Fiscal Year 2008. Each of these countries has clearly stated its desire to join NATO and is working hard to meet the specified requirements for membership,” Senator Lugar said.

“I believe that eventual NATO membership for these five countries would be a success for Europe, NATO and the United States by continuing to extend the zone of peace and security. Albania, Croatia and Macedonia have been making progress on reforms through their participation in the NATO Membership Action Plan since 2002. Unfortunately, Georgia and Ukraine have not yet been granted a Membership Action Plan but nevertheless have made remarkable progress. This legislation will provide important incentives and assistance to the countries to continue the implementation of democratic, defense, and economic reforms.

“Since the end of the Cold War, NATO has been evolving to meet the new security needs of the 21st century. In this era, the threats to NATO members are transnational and far from its geographic borders. There is strong support among members for NATO's operation in Afghanistan and for its training mission in Iraq. NATO's viability as an effective defense and security alliance depends on flexible, creative leadership, as well as the willingness of members to improve capabilities and address common threats,” Senator Lugar said.