Coleman Urges U.S. to Follow Brazil's Road Map to Energy Independence at Senate Hearing

COLEMAN URGES U.S. TO FOLLOW BRAZIL'S ROAD MAP TO ENERGY INDEPENDENCE AT SENATE HEARING
Senator says Brazilian witness testimony at hearing demonstrates potential for sugar -to-ethanol programs in U.S

Citing America's pressing need to achieve energy independence, Minnesota Senator Norm Coleman said today at a Senate Foreign Relations Committee hearing on Energy Security that Brazil's successful transition to energy self sufficiency offers a road map for the United States. Part of that roadmap has been an aggressive sugar ethanol program. As Chairman of the Senate Foreign Relations Subcommittee on Western Hemisphere, Peace Corps and Narcotics Affairs, Coleman has personally reviewed the Brazilian model on three trips to the South American nation.

"Brazil's thirty-year path to energy independence, which I've had the opportunity to witness firsthand, is a wonderful model for our own efforts to increase the vitality of our renewable fuels industry," said Coleman. "One of the most important points brought up today was the fact that Brazil's success required a serious government commitment to renewable fuels and sugar ethanol in particular."

The hearing witnesses included the President of the Brazilian Association of Sugar Cane and Ethanol Producers, Eduardo Carvalho, who testified that Brazil had made a strategic decision based on necessity to build a renewable fuels industry at home. He emphasized there must be political leadership in order for ethanol production to prosper. Brazil's government invested in ethanol production through the use of significant ethanol mandates, favorable tax treatment for ethanol at the pump, incentives to cover the building of ethanol plants, construction of an ethanol pipeline, and promotion of E85 infrastructure so that ethanol and gasoline can be sold side-by-side. Coleman noted that Minnesotan farmers have led America's progress toward energy self reliance with 16 ethanol and 3 biodiesel plants and almost half of the E85 pumps in America.

"Contrary to claims that sugar ethanol won't work, Brazil's example shows that this important renewable energy source is viable and should be supported. It is also clear from this testimony that Congressional leadership will continue to be necessary in order for this industry to take root and grow. Minnesotans are leading the country in renewable fuels production and standards back home, and part of my job as Senator has been to bring proven Minnesota solutions to bear on national problems. I will continue to pursue federal investment in sugar to ethanol that will complement the existing sugar program, not change it," Coleman added.

The hearing also addressed the effect of Venezuelan regional influence on the oil market, the decision by President Morales of Bolivia to nationalize his country's gas fields, and Chinese investment in the Latin American energy sector. Coleman stressed that the U.S. should work to ensure that the distribution of Latin American energy resources remains free and competitive.

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